Emissions Trading – Page 19

MIL-OSI: ChampionX Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

THE WOODLANDS, Texas, April 29, 2025 (GLOBE NEWSWIRE) — ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced first quarter of 2025 results. Revenue was $864.5 million, net income attributable to ChampionX was $85.8 million, and adjusted EBITDA was $190.9 million. Income before income taxes margin was 12.1% and adjusted EBITDA margin was 22.1%. Cash from operating activities was $66.8 million and free cash flow was $38.6 million.

CEO Commentary

“The first quarter demonstrated the resilience of our ChampionX portfolio as we delivered strong adjusted EBITDA and adjusted EBITDA margin, and generated positive free cash flow. These results reflect the commitment of our ChampionX employees around the world who express daily an unwavering focus on delivering value-added solutions for our customers’ most important challenges. I am thankful and humbled to lead such a talented and dedicated team,” ChampionX’s President and Chief Executive Officer Sivasankaran “Soma” Somasundaram said.

“During the first quarter of 2025, we generated revenue of $864 million, which decreased 5% sequentially, in line with our expectations, driven primarily by a typical seasonal decline in international operations. We generated net income attributable to ChampionX of $86 million, income before income taxes margin of 12.1%, and we delivered adjusted EBITDA of $191 million, representing a 22.1% adjusted EBITDA margin, our second-highest level as ChampionX, which speaks to the continued productivity and profitability focus of our team.

“Cash flow from operating activities was $67 million during the first quarter, which represented 78% of net income attributable to ChampionX, and we generated free cash flow of $39 million, our 12th consecutive quarter of positive free cash flow. Our balance sheet and financial position remain strong, ending the first quarter with approximately $1.2 billion of liquidity, including $527 million of cash and $674 million of available capacity on our revolving credit facility.

“As a leading global provider of production optimization solutions for the energy industry, ChampionX is uniquely well-positioned to help operators meet the objective of maximizing the value of their producing assets, particularly against the backdrop of the ongoing structural shift toward capital discipline and moderating capital spending in the upstream and midstream industries. As global oil production grows, our differentiated and resilient production-oriented portfolio drives our expectation of positive performance relative to general oil and gas market activity in 2025.

“Amid recent changes in international trade policies, ChampionX is continuing to put its continuous improvement culture to work every day to successfully deliver products and technologies designed to improve our cost structure and drive efficiencies. We are leveraging our global and flexible supply chain footprint, long-standing supplier partnerships, pricing adjustments, and productivity initiatives to address tariff impacts, and we will continue to be there to serve our customers and deliver differentiated margin and free cash flow performance.”

Agreement to be Acquired by SLB

On April 2, 2024, SLB (NYSE: SLB) and ChampionX jointly announced a definitive Agreement and Plan of Merger (the “Merger Agreement”) for SLB to purchase ChampionX in an all-stock transaction. The transaction was unanimously approved by the ChampionX board of directors and the transaction received the approval of the ChampionX stockholders at a special meeting held on June 18, 2024. The transaction is subject to regulatory approvals and other customary closing conditions.

ChampionX may continue to pay its regular quarterly cash dividends with customary record and payment dates, subject to certain limitations under the Merger Agreement. Given the pending acquisition of ChampionX by SLB, ChampionX has discontinued providing quarterly guidance and will not host a conference call or webcast to discuss its first quarter 2025 results.

Production Chemical Technologies

Production Chemical Technologies revenue in the first quarter of 2025 was $523.4 million, a decrease of $46.3 million, or 8%, sequentially, due primarily to seasonally lower international sales volumes.

Segment operating profit was $82.2 million and adjusted segment EBITDA was $109.1 million. Segment operating profit margin was 15.7%, a sequential decrease of 248 basis points, and adjusted segment EBITDA margin was 20.8%, a sequential decrease of 259 basis points. The sequential decrease in segment operating profit margin and adjusted segment EBITDA margin was driven by lower sales volumes.

Production & Automation Technologies

Production & Automation Technologies revenue in the first quarter of 2025 was $264.4 million, a decrease of $5.2 million, or 2%, sequentially, due primarily to seasonally lower international sales volumes. Revenue from digital products was $57.8 million in the first quarter of 2025, a sequential decrease of 7%, driven by seasonally lower customer activity in North America.

Segment operating profit was $37.6 million and adjusted segment EBITDA was $70.3 million. Segment operating profit margin was 14.2%, a sequential decrease of 27 basis points, and adjusted segment EBITDA margin was 26.6%, a sequential increase of 34 basis points. The decrease in segment operating profit margin and the increase in adjusted segment EBITDA margin was driven by lower sales volumes, offset somewhat by productivity improvements.

Drilling Technologies

Drilling Technologies revenue in the first quarter of 2025 was $50.5 million, a decrease of $1.4 million, or 3%, sequentially, driven primarily by lower North America sales volumes.

Segment operating profit was $8.2 million and adjusted segment EBITDA was $10.2 million. Segment operating profit margin was 16.2%, compared to 20.6% in the prior quarter, and adjusted segment EBITDA margin was 20.3%, a decrease of 346 basis points, sequentially, due primarily to lower volumes.

Reservoir Chemical Technologies

Reservoir Chemical Technologies revenue in the first quarter of 2025 was $26.9 million, an increase of $5.0 million, or 23%, sequentially, driven by higher sales volumes in the U.S. and internationally.

Segment operating profit was $5.5 million and adjusted segment EBITDA was $6.3 million. Segment operating profit margin was 20.5%, an increase of 1008 basis points, sequentially, and adjusted segment EBITDA margin was 23.6%, an increase of 647 basis points, sequentially. The increase in segment operating profit margin and adjusted segment EBITDA margin was driven by higher sales volumes together with a more favorable product mix.

Other Business Highlights: Production Chemical Technologies and Reservoir Chemical Technologies

Awarded several first fill contracts for new conventional and unconventional fields in the Middle East region.
The North America Offshore production chemicals team was awarded the contract for an upcoming major capital project in the Gulf of America. The win was the culmination of years’ worth of work developing technical solutions to address the project’s most impactful challenges.
Commenced the initial deliveries of a significant volume of hydrate inhibitor for a major new FPSO, supporting an independent Australian operator.
Awarded program of competitive process water treatment applications in Canada after performing comprehensive technical assessments and value-added recommendations.
Completed our second RENEWIQ^® (production and reservoir chemistry delivered through one trailer) joint offering for frac treating.
Reservoir group was awarded RENEWIQ work for the application of our production enhancement PROE completion chemistry to improve production over the life of wells. This program, combined with our one-site PCT service expertise, continues to bring differentiated solutions to operators in the Permian Basin.
Started the Unconventional Water team to support North America Land Water applications.
Recently won four different contracts after re-entering the US Land market with our H2S scavenger program.
Providing chemistries supporting a Canadian customer that is scheduled to commission and start up a new thermal asset in August 2025.

Other Business Highlights: Production & Automation Technologies

Awarded a multi-year contract for production optimization software by a customer in Indonesia. 4000+ wells were successfully migrated in Q1 to our XSPOC^® production optimization software, delivering data-driven insights to help the customer make informed production decisions across their field for all artificial lift systems.
Continue to see strong market adoption of new digital technologies as operators look for cost-effective, scalable monitoring solutions. More than 450 SmartSpin^® wireless rod rotator sensors have been installed in the field and 120+ of the recently launched SMARTEN™^® Lite rod pump controller have been deployed.
ChampionX’s RMSpumptools, in partnership with our UNBRIDLED^® ESP Systems team, continues to grow sales of Automatic Diverter Valves (ADV) in the Permian for a major oil company. This key technology offers customers better sand and solids management in ESP systems and acts as a safety device for ESPs featuring a PMM motor.
Following two 6-month trial installations, RMSpumptools has received an order for its Y-chek systems by a Middle East national oil company. This success sets the direction for expansion of this Y-chek solution.
Completed the first 30+ well trial with a major producer in the Permian basin of the newly offered chemical injection assurance (CIA) software module on the modern, secure, and scalable Connexia^® platform. The CIA software provides fully integrated chemical measurement and delivery data as well as control and optimization capabilities.
The SMARTEN XE ESP control system is a leader in the ESP control market. In Q1, ChampionX secured a new customer based on the advanced capabilities of the SMARTEN XE controller. The system’s ability to deliver enhanced performance across multi-pad projects was central to the customer’s decision. Since launch, ChampionX has installed hundreds of ESPs with SMARTEN XE controls, improving the operation of customers’ ESP systems.
Launched newly designed LOOKOUT^® optimization services to provide real-time data with full ESP system control, advanced data visualization, integrated communications, and direct access to a team of multi-disciplined artificial lift experts. Powered by a modern digital backbone, LOOKOUT optimization services enable streamlined integration of diverse data sources and control solutions. LOOKOUT also leverages the full capabilities of the SMARTEN XE ESP control system, delivering advanced automation for ESP operations.
ChampionX’s Integrated Production Optimization (IPO) business continues to expand. A Permian operator, following a series of acquisitions, has expanded implementation of the IPO solution across newly acquired acreage – placing all new wells and ESP replacements under the IPO program. IPO has consistently delivered measurable production uplift, enhanced equipment reliability, stabilized reservoir pressure drawdown, and optimized chemical spend for the operator.
ChampionX’s Norris Sucker Rods has been awarded a large contract for the supply of approximately 35,000 sucker rods for a major customer in India. ChampionX won the contract based on superior reliability and in-country technical support, according to the customer.
Norris Rods received a large bulk order for sucker rods from a U.S. independent producer to assure supply for future operations and to mitigate the impact of tariffs. Norris Rods are manufactured from U.S. steel at the Company’s factory in Tulsa, Oklahoma.

About Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release presents non-GAAP financial measures. Management believes that adjusted EBITDA, adjusted EBITDA margin, adjusted net income attributable to ChampionX and adjusted diluted earnings per share attributable to ChampionX, provide useful information to investors regarding the Company’s financial condition and results of operations because they reflect the core operating results of our businesses and help facilitate comparisons of operating performance across periods. In addition, free cash flow, free cash flow to adjusted EBITDA ratio, and free cash flow to revenue ratio are used by management to measure our ability to generate positive cash flow for debt reduction and to support our strategic objectives. Although management believes the aforementioned non-GAAP financial measures are good tools for internal use and the investment community in evaluating ChampionX’s overall financial performance, the foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included in the accompanying financial tables.

About ChampionX

ChampionX is a global leader in chemistry solutions, artificial lift systems, and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely, efficiently, and sustainably around the world. ChampionX’s expertise, innovative products, and digital technologies provide enhanced oil and gas production, transportation, and real-time emissions monitoring throughout the lifecycle of a well. To learn more about ChampionX, visit our website at www.ChampionX.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, 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. Such forward-looking statements include statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction, and information regarding the businesses of SLB and ChampionX, including expectations regarding outlook and all underlying assumptions, SLB’s and ChampionX’s objectives, plans and strategies, information relating to operating trends in markets where SLB and ChampionX operate, statements that contain projections of results of operations or of financial condition and all other statements other than statements of historical fact that address activities, events or developments that SLB or ChampionX intends, expects, projects, believes or anticipates will or may occur in the future. Such statements are based on management’s beliefs and assumptions made based on information currently available to management. All statements in this communication, other than statements of historical fact, are forward-looking statements that may be identified by the use of the words “outlook,” “guidance,” “expects,” “believes,” “anticipates,” “should,” “estimates,” “intends,” “plans,” “seeks,” “targets,” “may,” “can,” “believe,” “predict,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “ambition,” “goal,” “scheduled,” “think,” “could,” “would,” “will,” “see,” “likely,” and other similar expressions or variations, but not all forward-looking statements include such words. These forward-looking statements involve known and unknown risks and uncertainties, and which may cause SLB’s or ChampionX’s actual results and performance to be materially different from those expressed or implied in the forward-looking statements. Factors and risks that may impact future results and performance include, but are not limited to those factors and risks described in Part I, “Item 1. Business”, “Item 1A. Risk Factors”, and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in SLB’s Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission (the “SEC”) on January 22, 2025 and Part 1, Item 1A, “Risk Factors” in ChampionX’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 5, 2025, and each of their respective, subsequent Current Reports on Form 8-K. These include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX, including the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction (including the adoption of the merger agreement in respect of the proposed transaction by ChampionX stockholders); other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; changes in demand for SLB’s or ChampionX’s products and services; global market, political and economic conditions, including in the countries in which SLB and ChampionX operate; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; the extent of growth of the oilfield services market generally, including for chemical solutions in production and midstream operations; the global macro-economic environment, including headwinds caused by inflation, rising interest rates, unfavorable currency exchange rates, and potential recessionary or depressionary conditions; the impact of shifts in prices or margins of the products that SLB or ChampionX sells or services that SLB or ChampionX provides, including due to a shift towards lower margin products or services; cyber-attacks, information security and data privacy; the impact of public health crises, such as pandemics (including COVID-19) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; trends in crude oil and natural gas prices, including trends in chemical solutions across the oil and natural gas industries, that may affect the drilling and production activity, profitability and financial stability of SLB’s and ChampionX’s customers and therefore the demand for, and profitability of, their products and services; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction; failure to effectively and timely address energy transitions that could adversely affect the businesses of SLB or ChampionX, results of operations, and cash flows of SLB or ChampionX; and disruptions of SLB’s or ChampionX’s information technology systems.

These risks, as well as other risks related to the proposed transaction, are included in the Form S-4 and proxy statement/prospectus that was filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to SLB’s and ChampionX’s respective periodic reports and other filings with the SEC, including the risk factors identified in SLB’s and ChampionX’s Annual Reports on Form 10-K, respectively, and SLB’s and ChampionX’s Quarterly Reports on Form 10-Q. The forward-looking statements included in this communication are made only as of the date hereof. Neither SLB nor ChampionX undertakes any obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Investor Contact: Byron Pope
byron.pope@championx.com
281-602-0094

Media Contact: John Breed
john.breed@championx.com
281-403-5751

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands, except per share amounts)		2025			2024			2024
Revenue	$	864,464		$	912,037		$	922,141
Cost of goods and services		572,938			600,154			622,937
Gross profit		291,526			311,883			299,204
Costs and expenses:
Selling, general and administrative expense		177,045			184,722			172,414
(Gain) loss on sale-leaseback transaction		—			—			(29,883	)
Interest expense, net		13,196			12,375			13,935
Foreign currency transaction losses (gains), net		1,504			1,697			55
Other expense (income), net		(4,631	)		(5,026	)		2,927
Income before income taxes		104,412			118,115			139,756
Provision for income taxes		15,384			33,204			26,596
Net income		89,028			84,911			113,160
Net income attributable to noncontrolling interest		3,231			2,145			237
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923

Earnings per share attributable to ChampionX:
Basic	$	0.45		$	0.43		$	0.59
Diluted	$	0.44		$	0.43		$	0.58

Weighted-average shares outstanding:
Basic		191,143			190,586			190,803
Diluted		193,709			193,487			193,964

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(in thousands)	March 31, 2025			December 31, 2024
*ASSETS*
Current Assets:
Cash and cash equivalents	$	526,559		$	507,681
Receivables, net		417,639			466,782
Inventories, net		497,183			496,831
Assets held for sale		241,791			14,001
Prepaid expenses and other current assets		85,617			78,602
Total current assets		1,768,789			1,563,897

Property, plant and equipment, net		729,931			755,422
Goodwill		619,505			718,944
Intangible assets, net		247,907			258,614
Other non-current assets		134,258			173,375
Total assets	$	3,500,390		$	3,470,252

*LIABILITIES AND EQUITY*
Current Liabilities:
Current portion of long-term debt	$	6,203		$	6,203
Accounts payable		498,335			455,531
Liabilities held for sale		61,415			—
Other current liabilities		218,943			324,138
Total current liabilities		784,896			785,872

Long-term debt		590,746			591,453
Other long-term liabilities		220,054			261,749
Stockholders’ equity:
ChampionX stockholders’ equity		1,916,726			1,846,437
Noncontrolling interest		(12,032	)		(15,259	)
Total liabilities and equity	$	3,500,390		$	3,470,252

CHAMPIONX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

	Three Months Ended March 31,
(in thousands)		2025			2024
Cash flows from operating activities:
Net income	$	89,028		$	113,160
Depreciation and amortization		60,056			59,580
(Gain) loss on sale-leaseback transaction		—			(29,883	)
Loss on Argentina Blue Chip Swap transaction		—			4,092
Deferred income taxes		(10,941	)		(12,903	)
Loss (gain) on disposal of fixed assets		1,616			1,107
Receivables		13,937			62,915
Inventories		(25,569	)		(39,873	)
Accounts payable		40,675			68,248
Other assets		(19,955	)		(602	)
Leased assets		(6,665	)		(4,254	)
Other operating items, net		(75,380	)		(48,079	)
Net cash flows provided by operating activities		66,802			173,508

Cash flows from investing activities:
Capital expenditures		(31,250	)		(31,912	)
Proceeds from sale of fixed assets		3,004			2,390
Proceeds from sale-leaseback transaction		—			44,292
Purchase of investments		—			(17,162	)
Sale of investments		—			13,070
Acquisitions, net of cash acquired		—			(21,472	)
Net cash used for investing activities		(28,246	)		(10,794	)

Cash flows from financing activities:
Repayment of long-term debt		(1,551	)		(1,551	)
Repurchases of common stock		—			(49,399	)
Dividends paid		(18,110	)		(16,247	)
Other		(488	)		3,104
Net cash used for financing activities		(20,149	)		(64,093	)

Effect of exchange rate changes on cash and cash equivalents		471			(1,161	)

Net increase in cash and cash equivalents		18,878			97,460
Cash and cash equivalents at beginning of period		507,681			288,557
Cash and cash equivalents at end of period	$	526,559		$	386,017

CHAMPIONX CORPORATION
BUSINESS SEGMENT DATA
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Segment revenue:
Production Chemical Technologies	$	523,390		$	569,662		$	590,108
Production & Automation Technologies		264,377			269,568			252,614
Drilling Technologies		50,530			51,942			55,206
Reservoir Chemical Technologies		26,926			21,937			24,705
Corporate and other		(759	)		(1,072	)		(492	)
Total revenue	$	864,464		$	912,037		$	922,141

Income before income taxes:
Segment operating profit (loss):
Production Chemical Technologies	$	82,172		$	103,567		$	87,832
Production & Automation Technologies		37,554			39,027			28,470
Drilling Technologies		8,174			10,703			44,402
Reservoir Chemical Technologies		5,529			2,294			3,746
Total segment operating profit		133,429			155,591			164,450
Corporate and other		15,821			25,101			10,759
Interest expense, net		13,196			12,375			13,935
Income before income taxes	$	104,412		$	118,115		$	139,756

Operating profit margin / income before income taxes margin:
Production Chemical Technologies		15.7	%		18.2	%		14.9	%
Production & Automation Technologies		14.2	%		14.5	%		11.3	%
Drilling Technologies		16.2	%		20.6	%		80.4	%
Reservoir Chemical Technologies		20.5	%		10.5	%		15.2	%
ChampionX Consolidated		12.1	%		13.0	%		15.2	%

Adjusted EBITDA
Production Chemical Technologies	$	109,065		$	133,475		$	118,031
Production & Automation Technologies		70,269			70,739			60,340
Drilling Technologies		10,237			12,321			16,074
Reservoir Chemical Technologies		6,347			3,751			5,346
Corporate and other		(5,049	)		(8,021	)		(8,079	)
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Adjusted EBITDA margin
Production Chemical Technologies		20.8	%		23.4	%		20.0	%
Production & Automation Technologies		26.6	%		26.2	%		23.9	%
Drilling Technologies		20.3	%		23.7	%		29.1	%
Reservoir Chemical Technologies		23.6	%		17.1	%		21.6	%
ChampionX Consolidated		22.1	%		23.3	%		20.8	%

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Net income attributable to ChampionX	$	85,797		$	82,766		$	112,923
Pre-tax adjustments:
(Gain) loss on sale leaseback transaction⁽¹⁾		—			—			(29,883	)
Russia sanctions compliance and impacts⁽²⁾		28			73			152
Restructuring and other related charges		1,059			2,704			1,709
Merger transaction costs⁽³⁾		10,232			14,434			—
Acquisition costs and related adjustments⁽⁴⁾		—			75			1,232
Intellectual property defense		382			158			779
Merger-related indemnification responsibility⁽⁵⁾		—			100			—
Tulsa, Oklahoma storm damage		—			—			305
Foreign currency transaction losses (gains), net		1,504			1,697			55
Loss on Argentina Blue Chip Swap transaction		—			—			4,092
Tax impact of adjustments		(2,971	)		(5,565	)		5,066
Adjusted net income attributable to ChampionX		96,031			96,442			96,430
Tax impact of adjustments		2,971			5,565			(5,066	)
Net income attributable to noncontrolling interest		3,231			2,145			237
Depreciation and amortization		60,056			62,534			59,580
Provision for income taxes		15,384			33,204			26,596
Interest expense, net		13,196			12,375			13,935
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

_______________________

_{(1) Amount represents the gain on the sale and leaseback of certain buildings and land.}
_{(2) Includes charges incurred related to legal and professional fees to comply with, as well as additional foreign currency exchange losses associated with, the sanctions imposed in Russia.}
_{(3) Includes costs incurred in relation to the Merger Agreement with Schlumberger Limited, including third party legal and professional fees.}
_{(4) Includes costs incurred for the acquisition of businesses.}
_{(5) Expense related to the June 3, 2020 merger transaction with Ecolab in which we acquired the Chemical Technologies business.}

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Diluted earnings per share attributable to ChampionX	$	0.44		$	0.43		$	0.58
Per share adjustments:
(Gain) loss on sale leaseback transaction and disposal group		—			—			(0.15	)
Russia sanctions compliance and impacts		—			—			—
Restructuring and other related charges		0.01			0.01			0.01
Merger transaction costs		0.05			0.07			—
Acquisition costs and related adjustments		—			—			0.01
Intellectual property defense		—			—			—
Merger-related indemnification responsibility		—			—			—
Tulsa, Oklahoma storm damage		—			—			—
Foreign currency transaction losses (gains), net		0.01			0.01			—
Loss on Argentina Blue Chip Swap transaction		—			—			0.02
Tax impact of adjustments		(0.01	)		(0.02	)		0.03
Adjusted diluted earnings per share attributable to ChampionX	$	0.50		$	0.50		$	0.50

CHAMPIONX CORPORATION
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES BY SEGMENT
(UNAUDITED)

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Production Chemical Technologies
Segment operating profit	$	82,172		$	103,567		$	87,832
Non-GAAP adjustments		1,658			2,251			3,933
Depreciation and amortization		25,235			27,657			26,266
Segment adjusted EBITDA	$	109,065		$	133,475		$	118,031

Production & Automation Technologies
Segment operating profit	$	37,554		$	39,027		$	28,470
Non-GAAP adjustments		764			75			2,076
Depreciation and amortization		31,951			31,637			29,794
Segment adjusted EBITDA	$	70,269		$	70,739		$	60,340

Drilling Technologies
Segment operating profit	$	8,174		$	10,703		$	44,402
Non-GAAP adjustments		766			306			(29,883	)
Depreciation and amortization		1,297			1,312			1,555
Segment adjusted EBITDA	$	10,237		$	12,321		$	16,074

Reservoir Chemical Technologies
Segment operating profit	$	5,529		$	2,294		$	3,746
Non-GAAP adjustments		(278	)		39			16
Depreciation and amortization		1,096			1,418			1,584
Segment adjusted EBITDA	$	6,347		$	3,751		$	5,346

Corporate and other
Segment operating profit	$	(29,017	)	$	(37,476	)	$	(24,694	)
Non-GAAP adjustments		10,295			16,570			2,299
Depreciation and amortization		477			510			381
Interest expense, net		13,196			12,375			13,935
Segment adjusted EBITDA	$	(5,049	)	$	(8,021	)	$	(8,079	)

Free Cash Flow

	Three Months Ended
	March 31,			December 31,			March 31,
(in thousands)		2025			2024			2024
Free Cash Flow
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Less: Capital expenditures, net of proceeds from sale of fixed assets		(28,246	)		(37,117	)		(29,522	)
Free cash flow	$	38,556		$	170,133		$	143,986

Cash From Operating Activities to Revenue Ratio
Cash flows from operating activities	$	66,802		$	207,250		$	173,508
Revenue	$	864,464		$	912,037		$	922,141

Cash from operating activities to revenue ratio		8	%		23	%		19	%

Free Cash Flow to Revenue Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Revenue	$	864,464		$	912,037		$	922,141

Free cash flow to revenue ratio		4	%		19	%		16	%

Free Cash Flow to Adjusted EBITDA Ratio
Free cash flow	$	38,556		$	170,133		$	143,986
Adjusted EBITDA	$	190,869		$	212,265		$	191,712

Free cash flow to adjusted EBITDA ratio		20	%		80	%		75	%

The MIL Network –

April 30, 2025

MIL-OSI: Northeast Bank Reports Third Quarter Results and Declares Dividend

Source: GlobeNewswire (MIL-OSI)

PORTLAND, Maine, April 29, 2025 (GLOBE NEWSWIRE) — Northeast Bank (the “Bank”) (NASDAQ: NBN), a Maine-based bank, today reported net income of $18.7 million, or $2.23 per diluted common share, for the quarter ended March 31, 2025, compared to net income of $13.9 million, or $1.83 per diluted common share, for the quarter ended March 31, 2024. Net income for the nine months ended March 31, 2025 was $58.2 million, or $7.07 per diluted common share, compared to $43.1 million, or $5.67 per diluted common share, for the nine months ended March 31, 2024.

The Board of Directors declared a cash dividend of $0.01 per share, payable on May 27, 2025, to shareholders of record as of May 13, 2025.

“We recorded strong loan volume during the third fiscal quarter,” said Rick Wayne, Chief Executive Officer. “Our National Lending Division generated $292.5 million in originated and purchased volume, and our small balance SBA 7(a) program with Newity LLC as our loan service provider has continued to grow, with quarterly originations of $121.3 million, compared to $100.3 million for the quarter ended December 31, 2024 and $29.0 million for the quarter ended March 31, 2024. At March 31, 2025, the loan portfolio, including loans held for sale, totaled $3.80 billion, representing an increase of $1.04 billion, or 37.7%, over June 30, 2024. During the quarter ended March 31, 2025, we sold $73.6 million of the guaranteed portion of our SBA loans, generating a gain on sale of $6.0 million, compared with sales of $64.5 million for a gain on sale of $5.6 million in the quarter ended December 31, 2024. For the quarter, we are reporting earnings of $2.23 per diluted common share, a return on average equity of 16.5%, and a return on average assets of 1.9%.”

As of March 31, 2025, total assets were $4.23 billion, an increase of $1.10 billion, or 35.0%, from total assets of $3.13 billion as of June 30, 2024.

1. The following table highlights the changes in the loan portfolio, including loans held for sale, for the nine months ended March 31, 2025:


	Loan Portfolio Changes
	March 31, 2025 Balance		June 30, 2024 Balance		Change ($)			Change (%)
	(Dollars in thousands)
National Lending Purchased	$	2,443,822	$	1,708,551	$	735,271			43.03	%
National Lending Originated		1,185,153		981,497		203,656			20.75	%
SBA National		152,319		48,405		103,914			214.68	%
Community Banking		19,495		22,704		(3,209	)		(14.13	%)
Total	$	3,800,789	$	2,761,157	$	1,039,632			37.65	%

Loans generated by the Bank’s National Lending Division for the quarter ended March 31, 2025 totaled $292.5 million, which consisted of $74.5 million of purchased loans at an average price of 94.2% of unpaid principal balance, and $218.0 million of originated loans. Loans generated by the Bank’s SBA Division for the quarter ended March 31, 2025 totaled $121.3 million.

An overview of the Bank’s National Lending Division portfolio follows:

	National Lending Portfolio
	Three Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	79,144	$	217,983	$	297,127	$	–	$	153,349	$	153,349
Initial net investment basis (1)		74,553		217,983		292,536		–		153,349		153,349

Loan returns during the period:
Yield		8.33%		8.73%		8.46%		8.67%		10.09%		9.19%
Total Return on Purchased Loans (2)		8.43%		N/A		8.43%		8.70%		N/A		8.70%

	Nine Months Ended March 31,
	2025						2024
	Purchased		Originated		Total		Purchased		Originated		Total
	(Dollars in thousands)
Loans purchased or originated during the period:
Unpaid principal balance	$	901,693	$	591,292	$	1,492,985	$	271,741	$	284,876	$	556,617
Initial net investment basis (1)		821,485		591,292		1,412,777		238,477		284,876		523,353

Loan returns during the period:
Yield		8.65%		9.02%		8.77%		8.95%		9.97%		9.34%
Total Return on Purchased Loans (2)		8.70%		N/A		8.70%		8.98%		N/A		8.98%

Total loans as of period end:
Unpaid principal balance	$	2,638,438	$	1,185,153	$	3,823,591	$	1,794,669	$	975,876	$	2,770,545
Net investment basis		2,443,822		1,185,153		3,628,975		1,620,409		975,876		2,596,285

(1) Initial net investment basis on purchased loans is the initial amortized cost basis net of initial allowance for credit losses (credit mark).
(2) The total return on purchased loans represents scheduled accretion, accelerated accretion, gains (losses) on real estate owned, release of allowance for credit losses on purchased loans, and other noninterest income recorded during the period divided by the average invested balance on an annualized basis. The total return on purchased loans does not include the effect of purchased loan charge-offs or recoveries during the period. Total return on purchased loans is considered a non-GAAP financial measure. See reconciliation in below table entitled “Total Return on Purchased Loans.”

2. Deposits increased by $956.3 million, or 40.9%, from June 30, 2024. The increase was primarily attributable to increases in time deposits of $943.5 million, or 72.2%. The significant drivers in the change in time deposits were the increase in brokered time deposits, which increased by $818.8 million, and Community Banking Division time deposits, which increased by $105.3 million compared to June 30, 2024.

3. Federal Home Loan Bank (“FHLB”) advances increased by $33.4 million, or 9.7%, from June 30, 2024. The increase was attributable to one new short-term borrowing, partially offset by net paydowns on amortizing advances.

4. Shareholders’ equity increased by $90.9 million, or 24.1%, from June 30, 2024, primarily due to net income of $58.2 million and $31.3 million of net proceeds on shares issued in connection with the Bank’s at-the-market (“ATM”) program.

Net income increased by $4.8 million to $18.7 million for the quarter ended March 31, 2025, compared to net income of $13.9 million for the quarter ended March 31, 2024.

1. Net interest and dividend income before provision for credit losses increased by $9.5 million to $46.0 million for the quarter ended March 31, 2025, compared to $36.5 million for the quarter ended March 31, 2024. The increase was primarily due to the following:

An increase in interest income earned on loans of $15.8 million, primarily due to higher average balances in the National Lending Division purchased and Small Business Administration (“SBA”) portfolios, partially offset by lower rates earned across the portfolio; and
An increase in interest income earned on short-term investments of $965 thousand, due to higher average balances, partially offset by lower rates earned; partially offset by,
An increase in deposit interest expense of $7.3 million, primarily due to higher average balances, partially offset by lower rates on interest-bearing deposits.

The following table summarizes interest income and related yields recognized on the loan portfolios:


	Interest Income and Yield on Loans
	Three Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	20,074	$	349	7.05	%	$	24,640	$	387	6.32	%
SBA National		121,521		2,975	9.93	%		35,848		1,159	13.00	%
National Lending:
Originated		1,120,756		24,120	8.73	%		953,401		23,909	10.09	%
Purchased		2,387,715		49,034	8.33	%		1,635,494		35,260	8.67	%
Total National Lending		3,508,471		73,154	8.46	%		2,588,895		59,169	9.19	%
Total	$	3,650,066	$	76,478	8.50	%	$	2,649,383	$	60,715	9.22	%

	Nine Months Ended March 31,
	2025						2024
	Average		Interest				Average		Interest
	Balance (1)		Income		Yield		Balance (1)		Income		Yield
	(Dollars in thousands)
Community Banking	$	21,330	$	1,088	6.79	%	$	25,786	$	1,242	6.41	%
SBA National		91,481		8,145	11.86	%		30,125		2,833	12.52	%
National Lending:
Originated		1,052,656		71,297	9.02	%		951,129		71,284	9.97	%
Purchased		2,183,068		141,831	8.65	%		1,558,362		104,780	8.95	%
Total National Lending		3,235,724		213,128	8.77	%		2,509,491		176,064	9.34	%
Total	$	3,348,535	$	222,361	8.85	%	$	2,565,402	$	180,139	9.35	%

(1) Includes loans held for sale.

The components of total income on purchased loans are set forth in the table below entitled “Total Return on Purchased Loans.” When compared to the quarter ended March 31, 2024, transactional income increased by $113 thousand for the quarter ended March 31, 2025, and regularly scheduled interest and accretion increased by $14.1 million primarily due to the increase in average balances. The total return on purchased loans for the quarter ended March 31, 2025 was 8.4%, a decrease from 8.7% for the quarter ended March 31, 2024. The following table details the total return on purchased loans:


	Total Return on Purchased Loans
	Three Months Ended March 31,
	2025				2024
	Income		Return (1)		Income		Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	48,149	8.18	%	$	34,045	8.37		%
Transactional income:
Release of allowance for credit losses on purchased loans		573	0.10	%		130	0.03		%
Accelerated accretion and loan fees		885	0.15	%		1,215	0.30		%
Total transactional income		1,458	0.25	%		1,345	0.33		%
Total	$	49,607	8.43	%	$	35,390	8.70		%

	Nine Months Ended March 31,
	2025				2024
	Income		Return (1)		Income			Return (1)
	(Dollars in thousands)
Regularly scheduled interest and accretion	$	136,055	8.30	%	$	98,505		8.41	%
Transactional income:
Release of allowance for credit losses on purchased loans		734	0.05	%		356		0.03	%
Accelerated accretion and loan fees		5,775	0.35	%		6,275		0.54	%
Total transactional income		6,509	0.40	%		6,631		0.57	%
Total	$	142,564	8.70	%	$	105,136		8.98	%

(1) The total return on purchased loans represents scheduled accretion, accelerated accretion, and gains (losses) on real estate owned, and release of allowance for credit losses on purchased loans recorded during the period divided by the average invested balance on an annualized basis. The total return does not include the effect of purchased loan charge-offs or recoveries in the quarter. Total return is considered a non-GAAP financial measure.

2. Provision for credit losses increased by $2.3 million to $2.9 million for the quarter ended March 31, 2025, compared to $596 thousand in the quarter ended March 31, 2024. The increase was primarily related to loan growth and increased reserves on the unguaranteed portion of the SBA portfolio.

3. Noninterest income increased by $5.1 million for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in gain on sale of SBA loans of $5.0 million, due to the sale of $73.6 million in SBA loans during the quarter ended March 31, 2025 as compared to the sale of $18.9 million during the quarter ended March 31, 2024.

4. Noninterest expense increased by $3.7 million for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024, primarily due to the following:

An increase in salaries and employee benefits expense of $1.7 million, primarily due to increases in regular, stock compensation expense and incentive compensation expense;
An increase in loan expense of $1.5 million primarily related to increased expenses in connection with the origination of SBA 7(a) loans; and
An increase in Federal Deposit Insurance Corporation (the “FDIC”) insurance expense of $195 thousand, due to the growth of the Bank’s asset size and an increased assessment rate.

5. Income tax expense increased by $3.7 million to $10.8 million, or an effective tax rate of 36.7%, for the quarter ended March 31, 2025, compared to $7.2 million, or an effective tax rate of 34.1%, for the quarter ended March 31, 2024. The increase in effective tax rate is primarily due to projected changes in income apportionment for state taxes and increased projections of the required write-down of the Bank’s deferred tax asset as a result of a change in Massachusetts income tax law.

As of March 31, 2025, nonperforming assets totaled $33.4 million, or 0.79% of total assets, compared to $28.3 million, or 0.90% of total assets, as of June 30, 2024.

As of March 31, 2025, past due loans totaled $34.0 million, or 0.91% of total loans, compared to past due loans totaling $26.3 million, or 0.95% of total loans, as of June 30, 2024.

As of March 31, 2025, the Bank’s Tier 1 leverage capital ratio was 11.5%, compared to 12.3% at June 30, 2024, and the Total risk-based capital ratio was 14.0% at March 31, 2025, compared to 14.8% at June 30, 2024. Capital ratios decreased primarily due to the increase in risk-weighted assets and average assets from significant loan growth during the nine months ended March 31, 2025, partially offset by increased retained earnings and additional capital raised under the Bank’s ATM program.

Investor Call Information
Rick Wayne, Chief Executive Officer, Richard Cohen, Chief Financial Officer, and Pat Dignan, Chief Operating Officer and Chief Credit Officer of Northeast Bank, will host a conference call to discuss third quarter earnings and business outlook at 10:00 a.m. Eastern Time on Wednesday, April 30^th. To access the conference call by phone, please go to this link (Phone Registration), and you will be provided with dial in details. The call will be available via live webcast, which can be viewed by accessing the Bank’s website at www.northeastbank.com and clicking on the About Us – Investor Relations section. To listen to the webcast, attendees are encouraged to visit the website at least fifteen minutes early to register, download and install any necessary audio software. Please note there will also be a slide presentation that will accompany the webcast. For those who cannot listen to the live broadcast, a replay will be available online for one year at www.northeastbank.com.

About Northeast Bank
Northeast Bank (NASDAQ: NBN) is a bank headquartered in Portland, Maine. We offer personal and business banking services to the Maine market via seven branches. Our National Lending Division purchases and originates commercial loans on a nationwide basis. ableBanking, a division of Northeast Bank, offers online savings products to consumers nationwide. Information regarding Northeast Bank can be found at www.northeastbank.com.

Non-GAAP Financial Measures
In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures, including tangible common shareholders’ equity, tangible book value per share, total return on purchased loans, and efficiency ratio. The Bank’s management believes that the supplemental non-GAAP 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 determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. 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.

Forward-Looking Statements
Statements in this press release that are not historical facts 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, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the FDIC, in our annual reports to our shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward-looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters. Although the Bank believes that these forward-looking statements are based on reasonable estimates and assumptions, they are not guarantees of future performance and are subject to known and unknown risks, uncertainties, contingencies, and other factors. You should not place undue reliance on our forward-looking statements. You should exercise caution in interpreting and relying on forward-looking statements because they are subject to significant risks, uncertainties and other factors which are, in some cases, beyond the Bank’s control. The Bank’s actual results could differ materially from those expressed or implied by such the forward-looking statements as a result of, among other factors, changes in interest rates and real estate values; changes in employment levels, general business and economic conditions on a national basis and in the local markets in which the Bank operates; changes in customer behavior due to changing business and economic conditions (including the impact of recently imposed tariffs by the U.S. Administration and foreign governments, inflation and concerns about liquidity) or legislative or regulatory initiatives; the possibility that future credits losses are higher than currently expected due to changes in economic assumptions, customer behavior or adverse economic developments; turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in loan defaults and charge-off rates; changes in the value of securities and other assets, adequacy of credit loss reserves, or deposit levels necessitating increased borrowing to fund loans and investments; changes in legislation and regulation under the new U.S. presidential administration; operational risks including, but not limited to, cybersecurity, fraud, natural disasters, climate change and future pandemics; the risk that the Bank may not be successful in the implementation of its business strategy; the risk that intangibles recorded in the Bank’s financial statements will become impaired; changes in assumptions used in making such forward-looking statements; and the other risks and uncertainties detailed in the Bank’s Annual Report on Form 10-K, as amended by Amendment No. 1 to the Annual Report on Form 10-K/A for the year ended June 30, 2024 as updated in the Bank’s Quarterly Reports on Form 10-Q and other filings submitted to the FDIC. These statements speak only as of the date of this release and the Bank does not undertake any obligation to update or revise any of these forward-looking statements to reflect events or circumstances occurring after the date of this communication or to reflect the occurrence of unanticipated events.

NBN-F


NORTHEAST BANK
BALANCE SHEETS
(Unaudited)
(Dollars in thousands, except share and per share data)
	March 31, 2025		June 30, 2024
Assets
Cash and due from banks	$	2,443	$	2,711
Short-term investments		341,633		239,447
Total cash and cash equivalents		344,076		242,158


Available-for-sale debt securities, at fair value		21,473		48,978
Equity securities, at fair value		7,314		7,013
Total investment securities		28,787		55,991

SBA loans held for sale		60,339		14,506

Loans:
Commercial real estate		2,764,809		2,028,280
Commercial and industrial		852,985		618,846
Residential real estate		122,466		99,234
Consumer		190		291
Total loans		3,740,450		2,746,651
Less: Allowance for credit losses		46,024		26,709
Loans, net		3,694,426		2,719,942


Premises and equipment, net		25,338		27,144
Real estate owned and other possessed collateral, net		1,200		–
Federal Home Loan Bank stock, at cost		16,106		15,751
Loan servicing rights, net		810		984
Bank-owned life insurance		19,203		18,830
Accrued interest receivable		17,445		15,163
Other assets		20,772		21,734
Total assets	$	4,228,502	$	3,132,203

Liabilities and Shareholders’ Equity
Deposits:
Demand	$	154,540	$	146,727
Savings and interest checking		796,762		732,029
Money market		94,837		154,504
Time		2,249,654		1,306,203
Total deposits		3,295,793		2,339,463

Federal Home Loan Bank and other advances		378,543		345,190
Lease liability		19,465		20,252
Other liabilities		67,185		50,664
Total liabilities		3,760,986		2,755,569

Commitments and contingencies		–		–


Shareholders’ equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares
issued and outstanding at March 31, 2025 and June 30, 2024		–		–
Voting common stock, $1.00 par value, 25,000,000 shares authorized;
8,525,362 and 8,127,690 shares issued and outstanding at
March 31, 2025 and June 30, 2024, respectively		8,525		8,128
Non-voting common stock, $1.00 par value, 3,000,000 shares authorized;
No shares issued and outstanding at March 31, 2025 and June 30, 2024		–		–
Additional paid-in capital		97,078		64,762
Retained earnings		361,901		303,927
Accumulated other comprehensive income (loss)		12		(183	)
Total shareholders’ equity		467,516		376,634
Total liabilities and shareholders’ equity	$	4,228,502	$	3,132,203


NORTHEAST BANK
STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended March 31,						Nine Months Ended March 31,
	2025			2024			2025		2024
Interest and dividend income:
Interest and fees on loans		$	76,478	$	60,715		$	222,361	$	180,139
Interest on available-for-sale securities			352		596			1,383		1,639
Other interest and dividend income			3,996		3,179			12,104		9,541
Total interest and dividend income			80,826		64,490			235,848		191,319

Interest expense:
Deposits			30,593		23,340			89,959		63,772
Federal Home Loan Bank advances			4,057		4,401			11,754		16,247
Obligation under capital lease agreements			225		237			691		664
Total interest expense			34,875		27,978			102,404		80,683
Net interest and dividend income before provision for credit losses			45,951		36,512			133,444		110,636
Provision for credit losses			2,908		596			5,275		1,221
Net interest and dividend income after provision for credit losses			43,043		35,916			128,169		109,415

Noninterest income:
Fees for other services to customers			362		320			1,197		1,218
Gain on sales of SBA loans			6,014		1,015			14,915		1,837
Net unrealized gain (loss) on equity securities			79		(55	)		106		17
Loss on real estate owned, other repossessed collateral and premises and equipment, net			–		–			–		(9	)
Bank-owned life insurance income			124		116			372		348
Correspondent fee income			16		40			69		183
Other noninterest income			24		106			28		194
Total noninterest income			6,619		1,542			16,687		3,788

Noninterest expense:
Salaries and employee benefits			12,477		10,784			34,947		30,409
Occupancy and equipment expense			1,275		1,072			3,456		3,277
Professional fees			669		503			1,985		1,784
Data processing fees			1,496		1,376			4,605		3,823
Marketing expense			89		256			318		738
Loan acquisition and collection expense			2,270		813			5,626		2,402
FDIC insurance expense			468		273			1,756		917
Other noninterest expense			1,399		1,352			4,203		4,138
Total noninterest expense			20,143		16,429			56,896		47,488
Income before income tax expense			29,519		21,029			87,960		65,715
Income tax expense			10,838		7,164			29,734		22,624
Net income		$	18,681	$	13,865		$	58,226	$	43,091


Weighted-average shares outstanding:
Basic			8,216,746		7,509,320			8,047,775		7,510,065
Diluted			8,394,964		7,595,124			8,232,435		7,602,844

Earnings per common share:
Basic		$	2.27	$	1.85		$	7.24	$	5.74
Diluted			2.23		1.83			7.07		5.67

Cash dividends declared per common share		$	0.01	$	0.01		$	0.03	$	0.03


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Three Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	32,963	$	352	4.33	%	$	60,211	$	596	3.98	%
Loans (1) (2) (3)		3,650,066		76,478	8.50	%		2,649,383		60,715	9.22	%
Federal Home Loan Bank stock		16,657		301	7.33	%		17,636		449	10.24	%
Short-term investments (4)		336,877		3,695	4.45	%		204,869		2,730	5.36	%
Total interest-earning assets		4,036,563		80,826	8.12	%		2,932,099		64,490	8.85	%
Cash and due from banks		2,332						2,446
Other non-interest earning assets		39,847						50,227
Total assets	$	4,078,742					$	2,984,772

Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
NOW accounts	$	566,932	$	5,190	3.71	%	$	524,301	$	5,767	4.42	%
Money market accounts		116,647		754	2.62	%		190,379		1,619	3.42	%
Savings accounts		198,094		1,365	2.79	%		140,737		1,126	3.22	%
Time deposits		2,129,320		23,284	4.43	%		1,185,558		14,828	5.03	%
Total interest-bearing deposits		3,010,993		30,593	4.12	%		2,040,975		23,340	4.60	%
Federal Home Loan Bank advances		372,029		4,057	4.42	%		396,130		4,401	4.47	%
Lease liability		19,340		225	4.72	%		20,981		237	4.54	%
Total interest-bearing liabilities		3,402,362		34,875	4.16	%		2,458,086		27,978	4.58	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		183,348						163,042
Other liabilities		33,025						24,571
Total liabilities		3,618,735						2,645,699
Shareholders’ equity		460,007						339,073
Total liabilities and shareholders’ equity	$	4,078,742					$	2,984,772

Net interest income			$	45,951					$	36,512

Interest rate spread					3.96	%					4.27	%
Net interest margin (5)					4.62	%					5.01	%

Cost of funds (6)					3.94	%					4.29	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(Unaudited)
(Dollars in thousands)
	Nine Months Ended March 31,
	2025						2024
			Interest		Average				Interest		Average
	Average		Income/		Yield/		Average		Income/		Yield/
	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Interest-earning assets:
Investment securities	$	42,865	$	1,383	4.30	%	$	60,060	$	1,639	3.63	%
Loans (1) (2) (3)		3,348,535		222,361	8.85	%		2,565,402		180,139	9.35	%
Federal Home Loan Bank stock		16,190		977	8.04	%		20,415		1,331	8.68	%
Short-term investments (4)		302,262		11,127	4.90	%		204,252		8,210	5.35	%
Total interest-earning assets		3,709,852		235,848	8.47	%		2,850,129		191,319	8.93	%
Cash and due from banks		2,219						2,482
Other non-interest earning assets		55,078						58,609
Total assets	$	3,767,149					$	2,911,220

Liabilities & Shareholders’ Equity:
Interest-bearing liabilities:
NOW accounts	$	570,906	$	17,014	3.97	%	$	507,594	$	16,548	4.34	%
Money market accounts		131,481		2,972	3.01	%		226,072		5,760	3.39	%
Savings accounts		188,053		4,575	3.24	%		118,044		2,603	2.93	%
Time deposits		1,864,771		65,398	4.67	%		1,061,399		38,861	4.87	%
Total interest-bearing deposits		2,755,211		89,959	4.35	%		1,913,109		63,772	4.44	%
Federal Home Loan Bank advances		357,020		11,754	4.39	%		463,065		16,247	4.67	%
Lease liability		19,655		691	4.68	%		21,373		664	4.13	%
Total interest-bearing liabilities		3,131,886		102,404	4.36	%		2,397,547		80,683	4.48	%

Non-interest bearing liabilities:
Demand deposits and escrow accounts		182,877						166,955
Other liabilities		29,877						24,388
Total liabilities		3,344,640						2,588,890
Shareholders’ equity		422,509						322,330
Total liabilities and shareholders’ equity	$	3,767,149					$	2,911,220

Net interest income			$	133,444					$	110,636

Interest rate spread					4.11	%					4.45	%
Net interest margin (5)					4.79	%					5.17	%

Cost of funds (6)					4.12	%					4.19	%

(1) Interest income and yield are stated on a fully tax-equivalent basis using the statutory tax rate.
(2) Includes loans held for sale.
(3) Nonaccrual loans are included in the computation of average, but unpaid interest has not been included for purposes of determining interest income.
(4) Short-term investments include FHLB overnight deposits and other interest-bearing deposits.
(5) Net interest margin is calculated as net interest income divided by total interest-earning assets.
(6) Cost of funds is calculated as total interest expense divided by total interest-bearing liabilities plus demand deposits and escrow accounts.


NORTHEAST BANK
SELECTED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Net interest income	$	45,951	$	48,490	$	39,000	$	37,935	$	36,512
Provision for credit losses		2,908		1,944		422		547		596
Noninterest income		6,619		5,949		4,119		2,092		1,542
Noninterest expense		20,143		19,066		17,685		17,079		16,429
Net income		18,681		22,440		17,106		15,140		13,865

Weighted-average common shares outstanding:
Basic		8,216,746		8,044,345		7,886,148		7,765,868		7,509,320
Diluted		8,394,964		8,197,568		8,108,688		7,910,692		7,595,124
Earnings per common share:
Basic	$	2.27	$	2.79	$	2.17	$	1.95	$	1.85
Diluted		2.23		2.74		2.11		1.91		1.83

Dividends declared per common share	$	0.01	$	0.01	$	0.01	$	0.01	$	0.01

Return on average assets		1.86%		2.24%		2.09%		1.99%		1.87%
Return on average equity		16.47%		21.14%		17.53%		16.56%		16.45%
Net interest rate spread (1)		3.96%		4.21%		4.18%		4.41%		4.27%
Net interest margin (2)		4.62%		4.88%		4.90%		5.13%		5.01%
Efficiency ratio (non-GAAP) (3)		38.32%		35.02%		41.01%		42.67%		43.17%
Noninterest expense to average total assets		2.00%		1.90%		2.16%		2.24%		2.21%
Average interest-earning assets to average interest-bearing liabilities		118.64%		118.24%		118.48%		118.78%		119.28%

	As of:
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Nonperforming loans:
Originated portfolio:
Residential real estate	$	2,407	$	2,446	$	3,976	$	2,502	$	2,573
Commercial real estate		3,197		3,662		4,682		1,407		2,075
Commercial and industrial		6,945		6,696		6,684		6,520		6,928
Consumer		3		5		–		–		–
Total originated portfolio		12,552		12,809		15,342		10,429		11,576
Total purchased portfolio		19,680		17,257		21,830		17,832		16,370
Total nonperforming loans		32,232		30,066		37,172		28,261		27,946
Real estate owned and other repossessed collateral, net		1,200		1,200		–		–		–
Total nonperforming assets	$	33,432	$	31,266	$	37,172	$	28,261	$	27,946

Past due loans to total loans		0.91%		0.85%		0.89%		0.95%		1.13%
Nonperforming loans to total loans		0.86%		0.84%		1.06%		1.02%		1.05%
Nonperforming assets to total assets		0.79%		0.77%		0.94%		0.90%		0.93%
Allowance for credit losses to total loans		1.23%		1.25%		1.25%		0.97%		0.98%
Allowance for credit losses to nonperforming loans		142.79%		148.92%		117.40%		94.51%		92.83%
Net charge-offs (recoveries)	$	2,082	$	869	$	1,604	$	1,347	$	2,225
Commercial real estate loans to total capital (4)		521.47%		542.12%		604.38%		482.13%		509.08%
Net loans to deposits		112.10%		112.52%		110.70%		116.88%		118.15%
Purchased loans to total loans		65.33%		66.63%		69.11%		61.88%		60.99%
Equity to total assets		11.06%		10.88%		9.96%		12.02%		11.73%
Common equity tier 1 capital ratio		12.72%		12.66%		11.45%		13.84%		13.24%
Total risk-based capital ratio		13.97%		13.91%		12.70%		14.82%		14.22%
Tier 1 leverage capital ratio		11.45%		11.16%		12.06%		12.30%		11.79%

Total shareholders’ equity	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913
Less: Preferred stock		–		–		–		–		–
Common shareholders’ equity		467,516		444,101		392,557		376,634		351,913
Less: Intangible assets (5)		–		–		–		–		–
Tangible common shareholders’ equity (non-GAAP)	$	467,516	$	444,101	$	392,557	$	376,634	$	351,913

Common shares outstanding		8,525,362		8,492,856		8,212,026		8,127,690		7,977,690
Book value per common share	$	54.84	$	52.29	$	47.80	$	46.34	$	44.11
Tangible book value per share (non-GAAP) (6)		54.84		52.29		47.80		46.34		44.11

(1) The net interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the period.
(2) The net interest margin represents net interest income as a percent of average interest-earning assets for the period.
(3) The efficiency ratio represents noninterest expense divided by the sum of net interest income (before the credit loss provision) plus noninterest income.
(4) For purposes of calculating this ratio, commercial real estate includes all non-owner occupied commercial real estate loans defined as such by regulatory guidance, including all land development and construction loans.
(5) Includes the loan servicing rights asset.
(6) Tangible book value per share represents total shareholders’ equity less the sum of preferred stock and intangible assets divided by common shares outstanding.

For More Information:
Richard Cohen, Chief Financial Officer
Northeast Bank, 27 Pearl Street, Portland, Maine 04101
207.786.3245 ext. 3249
www.northeastbank.com

The MIL Network –

April 30, 2025

MIL-OSI: Qorvo® Announces Fiscal 2025 Fourth Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

GREENSBORO, N.C., April 29, 2025 (GLOBE NEWSWIRE) — Qorvo^® (Nasdaq:QRVO), a leading global provider of connectivity and power solutions, today announced financial results for the Company’s fiscal 2025 fourth quarter ended March 29, 2025.

On a GAAP basis, revenue for Qorvo’s fiscal 2025 fourth quarter was $869.5 million, gross margin was 42.2%, operating income was $28.2 million, and diluted earnings per share was $0.33. On a non-GAAP basis, gross margin was 45.9%, operating income was $151.8 million, and diluted earnings per share was $1.42.

Bob Bruggeworth, president and chief executive officer of Qorvo, said, “During the March quarter, Qorvo achieved stronger than seasonal sequential revenue while surpassing the midpoint of EPS guidance by 42 cents and expanding gross margin year-over-year. Looking across our business segments, our growth and margin targets are anchored in a multi-year strategy focused on winning content with our largest customer and building on our core RF and power expertise to drive diversification through CSG and HPA. We are on a path to continue to improve our business mix and our manufacturing footprint.”

Financial Commentary and Outlook

Grant Brown, chief financial officer of Qorvo, said, “Qorvo’s fiscal fourth quarter results exceeded the midpoint of our guidance on revenue, gross margin and EPS. Furthermore, we generated $171 million of free cash flow in the fourth quarter and $485 million during fiscal 2025. While we continue to monitor ongoing macroeconomic factors, including tariff and trade policy uncertainty, we remain focused on our operational objectives — including portfolio optimization, factory consolidation, and continued cost discipline — that position us to expand margins, enhance operational efficiency, and drive shareholder value.”

Qorvo’s current outlook for the June 2025 quarter is:

Quarterly revenue of approximately $775 million, plus or minus $25 million
Non-GAAP gross margin between 42% and 44%
Non-GAAP diluted earnings per share between $0.50 and $0.75

See “Forward-looking non-GAAP financial measures” below. Qorvo’s actual quarterly results may differ from these expectations and projections, and such differences may be material.

Selected Financial Information

The following tables set forth selected GAAP and non-GAAP financial information for Qorvo for the periods indicated. See the more detailed financial information for Qorvo, including reconciliations of GAAP and non-GAAP financial information, attached.

SELECTED GAAP RESULTS
(In millions, except for percentages and EPS)
(Unaudited)

	Q4 Fiscal 2025			Q3 Fiscal 2025			Q4 Fiscal 2024			Sequential Change				Year-over-Year Change
Revenue	$	869.5		$	916.3		$	941.0		$	(46.8	)		$	(71.5	)
Gross profit	$	366.6		$	391.4		$	381.9		$	(24.8	)		$	(15.3	)
Gross margin		42.2	%		42.7	%		40.6	%		(0.5	)	ppt		1.6		ppt
Operating expenses	$	338.3		$	338.4		$	351.9		$	(0.1	)		$	(13.6	)
Operating income	$	28.2		$	53.0		$	30.0		$	(24.8	)		$	(1.8	)
Net income	$	31.4		$	41.3		$	2.7		$	(9.9	)		$	28.7
Weighted-average diluted shares		94.1			95.0			97.3			(0.9	)			(3.2	)
Diluted EPS	$	0.33		$	0.43		$	0.03		$	(0.10	)		$	0.30


SELECTED NON-GAAP RESULTS ⁽¹⁾
(In millions, except for percentages and EPS)
(Unaudited)

	Q4 Fiscal 2025			Q3 Fiscal 2025			Q4 Fiscal 2024			Sequential Change				Year-over-Year Change
Revenue	$	869.5		$	916.3		$	941.0		$	(46.8	)		$	(71.5	)
Gross profit	$	398.7		$	426.3		$	400.4		$	(27.6	)		$	(1.7	)
Gross margin		45.9	%		46.5	%		42.5	%		(0.6	)	ppt		3.4		ppt
Operating expenses	$	246.8		$	248.4		$	253.2		$	(1.6	)		$	(6.4	)
Operating income	$	151.8		$	177.9		$	147.2		$	(26.1	)		$	4.6
Net income	$	133.3		$	152.8		$	135.5		$	(19.5	)		$	(2.2	)
Weighted-average diluted shares		94.1			95.0			97.3			(0.9	)			(3.2	)
Diluted EPS	$	1.42		$	1.61		$	1.39		$	(0.19	)		$	0.03

(1) Adjusted for stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, gain or loss on investments, and an adjustment of income taxes.


SELECTED GAAP RESULTS BY OPERATING SEGMENT
(In millions, except percentages)
(Unaudited)

	Q4 Fiscal 2025				Q3 Fiscal 2025				Q4 Fiscal 2024				Sequential Change			Year-over-Year Change
Revenue
HPA	$	187.9			$	171.7			$	164.6			9.4		%	14.2		%
CSG		101.3				109.5				122.8			(7.5	)	%	(17.5	)	%
ACG		580.3				635.1				653.6			(8.6	)	%	(11.2	)	%
Total revenue	$	869.5			$	916.3			$	941.0			(5.1	)	%	(7.6	)	%
Operating income (loss)
HPA	$	58.4			$	32.6			$	31.5			79.1		%	85.4		%
CSG		(15.6	)			(11.7	)			(15.2	)		(33.3	)	%	(2.6	)	%
ACG		109.7				161.2				134.3			(31.9	)	%	(18.3	)	%
Unallocated amounts ⁽¹⁾		(124.3	)			(129.1	)			(120.6	)		3.7		%	(3.1	)	%
Total operating income	$	28.2			$	53.0			$	30.0			(46.8	)	%	(6.0	)	%
Operating income (loss) as a % of revenue
HPA		31.1		%		19.0		%		19.1		%	12.1		ppt	12.0		ppt
CSG		(15.4	)			(10.7	)			(12.4	)		(4.7	)	ppt	(3.0	)	ppt
ACG		18.9				25.4				20.5			(6.5	)	ppt	(1.6	)	ppt
Total operating income as a % of revenue		3.3		%		5.8		%		3.2		%	(2.5	)	ppt	—		ppt

(1) Includes stock-based compensation expense, amortization of intangible assets, restructuring-related charges, acquisition and integration-related costs, goodwill and other asset impairments, net adjustments related to a terminated capacity reservation agreement, gain or loss on assets, other expense or income, costs associated with upgrading certain of the Company’s core business systems and other miscellaneous corporate overhead expenses.

Non-GAAP Financial Measures

In addition to disclosing financial results calculated in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains some or all of the following non-GAAP financial measures: (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating expenses, operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP net income per diluted share, (v) free cash flow, (vi) EBITDA, (vii) non-GAAP return on invested capital (ROIC), and (viii) net debt or positive net cash. Each of these non-GAAP financial measures is either adjusted from GAAP results to exclude certain expenses or derived from multiple GAAP measures, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables, attached, and the “Additional Selected Non-GAAP Financial Measures and Reconciliations” tables, attached.

In managing Qorvo’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures. In developing and monitoring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing gross margin and operating margin. In addition, management relies upon these non-GAAP financial measures to assess whether research and development efforts are at an appropriate level, and when making decisions about product spending, administrative budgets, and other operating expenses. Also, we believe that non-GAAP financial measures provide useful supplemental information to investors and enable investors to analyze the results of operations in the same way as management. We have chosen to provide this supplemental information to enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to operations, and stock-based compensation expense, which may obscure trends in Qorvo’s underlying performance.

We believe that these non-GAAP financial measures offer an additional view of Qorvo’s operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of Qorvo’s results of operations and the factors and trends affecting Qorvo’s business. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Our rationale for using these non-GAAP financial measures, as well as their impact on the presentation of Qorvo’s operations, are outlined below:

Non-GAAP gross profit and gross margin. Non-GAAP gross profit and gross margin exclude amortization of intangible assets, stock-based compensation expense, restructuring-related charges, acquisition and integration-related costs, and certain other expense (income). We believe that exclusion of these costs in presenting non-GAAP gross profit and gross margin facilitates a useful evaluation of our historical performance and projected costs and the potential for realizing cost efficiencies.

We view amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, and customer relationships, as items arising from pre-acquisition activities, determined at the time of an acquisition, rather than ongoing costs of operating Qorvo’s business. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangible assets is a static expense, which is not typically affected by operations during any particular period. Although we exclude the amortization of purchased intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting and contribute to revenue generation.

We believe that presentation of non-GAAP gross profit and gross margin and other non-GAAP financial measures that exclude the impact of stock-based compensation expense assists management and investors in evaluating the period-over-period performance of Qorvo’s ongoing operations because (i) the expenses are non-cash in nature, and (ii) although the size of the grants is within our control, the amount of expense varies depending on factors such as short-term fluctuations in stock price volatility and prevailing interest rates, which can be unrelated to the operational performance of Qorvo during the period in which the expense is incurred and generally are outside the control of management. Moreover, we believe that the exclusion of stock-based compensation expense in presenting non-GAAP gross profit and gross margin and other non-GAAP financial measures is useful to investors to understand the impact of the expensing of stock-based compensation to Qorvo’s gross profit and gross margins and other financial measures in comparison to prior periods. We also believe that the adjustments to profit and margin related to restructuring-related charges, and acquisition and integration-related costs do not constitute part of Qorvo’s ongoing operations and therefore the exclusion of these items provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP gross profit and gross margin has economic substance because the excluded expenses do not represent continuing cash expenditures and, as described above, we have little control over the timing and amount of the expenses in question.

Non-GAAP gross profit and gross margin also exclude net adjustments related to a terminated capacity reservation agreement. In October 2023, a long-term capacity reservation agreement with a foundry supplier was amended. Pursuant to the amendment, Qorvo is no longer obligated to order silicon wafers from the foundry supplier and the agreement was terminated effective December 31, 2023. We believe these net adjustments are not reflective of the performance of our ongoing business.

Non-GAAP operating expenses, operating income and operating margin. Non-GAAP operating expenses, operating income and operating margin exclude stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income). We believe that presentation of a measure of operating expenses, operating income and operating margin that excludes amortization of intangible assets and stock-based compensation expense is useful to both management and investors for the same reasons as described above with respect to our use of non-GAAP gross profit and gross margin. We believe that acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets and certain other expense (income) do not constitute part of Qorvo’s ongoing operations and therefore, the exclusion of these costs provides management and investors with better visibility into the actual costs required to generate revenues over time and facilitates a useful evaluation of our historical and projected performance. We believe disclosure of non-GAAP operating expenses, operating income and operating margin has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Non-GAAP net income and non-GAAP net income per diluted share. Non-GAAP net income and non-GAAP net income per diluted share exclude the effects of stock-based compensation expense, amortization of intangible assets, acquisition and integration-related costs, goodwill and other asset impairments, restructuring-related charges, net adjustments related to a terminated capacity reservation agreement, (gain) loss on assets, certain other expense (income), gain or loss on investments, and also reflect an adjustment of income taxes. The income tax adjustment primarily represents the use of research and development tax credit carryforwards, deferred tax expense (benefit) items not affecting taxes payable, adjustments related to the deemed and actual repatriation of historical foreign earnings, non-cash expense (benefit) related to uncertain tax positions and other items unrelated to the current fiscal year or that are not indicative of our ongoing business operations. We believe that presentation of measures of net income and net income per diluted share that exclude these items is useful to both management and investors for the reasons described above with respect to non-GAAP gross profit and gross margin and non-GAAP operating expenses, operating income and operating margin. We believe disclosure of non-GAAP net income and non-GAAP net income per diluted share has economic substance because the excluded expenses are either unrelated to ongoing operations or do not represent current cash expenditures.

Free cash flow. Qorvo defines free cash flow as net cash provided by operating activities during the period minus property and equipment expenditures made during the period, and free cash flow margin is calculated as free cash flow as a percentage of revenue. We use free cash flow as a supplemental financial measure in our evaluation of liquidity and financial strength. Management believes that this measure is useful as an indicator of our ability to service our debt, meet other payment obligations and make strategic investments. Free cash flow should be considered in addition to, rather than as a substitute for, net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally, our definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our entire statement of cash flows.

EBITDA. Qorvo adjusts GAAP net income for interest expense, interest income, income tax expense (benefit), depreciation and intangible amortization expense, stock-based compensation and other charges that are not representative of Qorvo’s ongoing operations (including goodwill and other asset impairments, investment activity, acquisition-related costs and restructuring-related costs and certain net adjustments related to a terminated capacity reservation agreement) when presenting EBITDA. Management believes that this measure is useful to evaluate our ongoing operations and as a general indicator of our operating cash flow (in conjunction with a cash flow statement which also includes among other items, changes in working capital and the effect of non-cash charges).

Non-GAAP ROIC. ROIC is a non-GAAP financial measure that management believes provides useful supplemental information for management and the investor by measuring the effectiveness of our operations’ use of invested capital to generate profits. We use ROIC to track how much value we are creating for our shareholders. Non-GAAP ROIC is calculated by dividing annualized non-GAAP operating income, net of an adjustment for income taxes (as described above), by average invested capital. Average invested capital is calculated by subtracting the average of the beginning balance and the ending balance of equity plus net debt, less certain goodwill.

Net debt or positive net cash. Net debt or positive net cash is defined as unrestricted cash, cash equivalents and short-term investments minus any borrowings under our credit facility and the principal balance of our senior unsecured notes. Management believes that net debt or positive net cash provides useful information regarding the level of Qorvo’s indebtedness by reflecting cash and investments that could be used to repay debt.

Inventory days on hand. Inventory days on hand is defined as (a) average net inventory for the period, divided by (b) the result of non-GAAP cost of goods sold for the period divided by the number of days in the period.

Forward-looking non-GAAP financial measures. Our earnings release contains forward-looking free cash flow, gross margin, income tax rate and diluted earnings per share. We provide these non-GAAP measures to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of the forward-looking non-GAAP financial measures to the most directly comparable forward-looking GAAP financial measures without unreasonable effort due to variability and difficulty in making accurate projections for items that would be required to be included in the GAAP measures, such as stock-based compensation, acquisition and integration-related costs, restructuring-related charges, gain or loss on assets, goodwill and other asset impairments, gain or loss on investments and the provision for income taxes, which could have a potentially significant impact on our future GAAP results.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP financial measures as an analytical tool compared to the most directly comparable GAAP financial measures are these non-GAAP financial measures (i) may not be comparable to similarly titled measures used by other companies in our industry, and (ii) exclude financial information that some may consider important in evaluating our performance, thus limiting their usefulness as a comparative tool. We compensate for these limitations by providing full disclosure of the differences between these non-GAAP financial measures and the corresponding GAAP financial measures, including a reconciliation of the non-GAAP financial measures to the corresponding GAAP financial measures, to enable investors to perform their own analysis of our gross profit and gross margin, operating expenses, operating income, net income, net income per diluted share and net cash provided by operating activities. We further compensate for the limitations of our use of non-GAAP financial measures by presenting the corresponding GAAP measures more prominently.

Qorvo will conduct a conference call at 4:30 p.m. ET today to discuss today’s press release. The conference call will be broadcast live over the Internet and can be accessed by any interested party at the following URL: https://ir.qorvo.com (under “Events & Presentations”). A telephone playback of the conference call will be available approximately two hours after the call’s completion and can be accessed by dialing 1-412-317-0088 and using the passcode 2889510. The playback will be available through the close of business May 6, 2025.

About Qorvo

Qorvo (Nasdaq:QRVO) supplies innovative semiconductor solutions that make a better world possible. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers’ most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including automotive, consumer, defense & aerospace, industrial & enterprise, infrastructure and mobile. Visit www.qorvo.com to learn how our diverse and innovative team is helping connect, protect and power our planet.

Qorvo is a registered trademark of Qorvo, Inc. in the U.S. and in other countries. All other trademarks are the property of their respective owners.

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations and contentions, and are not historical facts and typically are identified by terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “forecast,” “predict,” “potential,” “continue” and similar words, although some forward-looking statements are expressed differently. You should be aware that the forward-looking statements included herein represent management’s current judgment and expectations as of the date the statement is first made, but our actual results, events and performance could differ materially from those expressed or implied by forward-looking statements. We caution you not to place undue reliance upon any such forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as is required under U.S. federal securities laws. Our business is subject to numerous risks and uncertainties, including those relating to fluctuations in our operating results on a quarterly and annual basis; our substantial dependence on developing new products and achieving design wins; our dependence on several large customers for a substantial portion of our revenue; a loss of revenue if defense and aerospace contracts are canceled or delayed; our dependence on third parties; risks related to sales through distributors; risks associated with the operation of our manufacturing facilities; business disruptions; poor manufacturing yields; increased inventory risks and costs, due to timing of customers’ forecasts; our inability to effectively manage or maintain relationships with chipset suppliers; our ability to continue to innovate in a very competitive industry; underutilization of manufacturing facilities; unfavorable changes in interest rates, pricing of certain precious metals, utility rates and foreign currency exchange rates; our acquisitions, divestitures and other strategic investments failing to achieve financial or strategic objectives; our ability to attract, retain and motivate key employees; warranty claims, product recalls and product liability; changes in our effective tax rate; enactment of international or domestic tax legislation, or changes in regulatory guidance; changes in the favorable tax status of certain of our subsidiaries; risks associated with social, environmental, health and safety regulations, and climate change; risks from international sales and operations; economic regulation in China; changes in government trade policies, including imposition of tariffs and export restrictions; we may not be able to generate sufficient cash to service all of our debt; restrictions imposed by the agreements governing our debt; our reliance on our intellectual property portfolio; claims of infringement of third-party intellectual property rights; security breaches, failed system upgrades or regular maintenance and other similar disruptions to our IT systems; theft, loss or misuse of personal data by or about our employees, customers or third parties; provisions in our governing documents and Delaware law may discourage takeovers and business combinations that our stockholders might consider to be in their best interests; and volatility in the price of our common stock. These and other risks and uncertainties, which are described in more detail under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended March 30, 2024, and Qorvo’s subsequent reports and statements that we file with the SEC, could cause actual results and developments to be materially different from those expressed or implied by any of these forward-looking statements.

# # #

Financial Tables to Follow


QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended						Twelve Months Ended
	March 29, 2025			March 30, 2024			March 29, 2025			March 30, 2024
Revenue	$	869,474		$	940,988		$	3,718,971		$	3,769,506

Costs and expenses:
Cost of goods sold		502,911			559,131			2,183,382			2,281,011
Research and development		179,931			179,883			747,709			682,249
Selling, general and administrative		90,581			93,107			403,624			389,140
Other operating expense		67,830			78,889			288,729			325,405
Total costs and expenses		841,253			911,010			3,623,444			3,677,805

Operating income		28,221			29,978			95,527			91,701
Interest expense		(19,985	)		(17,282	)		(78,328	)		(69,245	)
Other income, net		6,987			16,818			48,700			51,104

Income before income taxes		15,223			29,514			65,899			73,560
Income tax benefit (expense)		16,142			(26,779	)		(10,284	)		(143,882	)
Net income (loss)	$	31,365		$	2,735		$	55,615		$	(70,322	)

Net income (loss) per share:
Basic	$	0.34		$	0.03		$	0.59		$	(0.72	)
Diluted	$	0.33		$	0.03		$	0.58		$	(0.72	)

Weighted-average shares of common stock outstanding:
Basic		93,249			96,277			94,586			97,557
Diluted		94,105			97,335			95,450			97,557


QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (In thousands, except per share data) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024

GAAP operating income	$	28,221		$	53,025		$	29,978
Stock-based compensation expense		27,415			28,384			21,581
Amortization of intangible assets		24,040			26,085			31,187
Restructuring-related (adjustments) charges		(17,252	)		68,072			55,535
Goodwill and intangible asset impairment		79,503			—			—
Acquisition and integration-related costs		4,395			1,382			6,596
Net adjustments related to a terminated capacity reservation agreement		(720	)		(1,253	)		(13,445	)
Other expense		6,247			2,216			15,792
Non-GAAP operating income	$	151,849		$	177,911		$	147,224

GAAP net income	$	31,365		$	41,271		$	2,735
Stock-based compensation expense		27,415			28,384			21,581
Amortization of intangible assets		24,040			26,085			31,187
Restructuring-related (adjustments) charges		(17,252	)		68,072			55,535
Goodwill and intangible asset impairment		79,503			—			—
Acquisition and integration-related costs		4,395			1,382			6,596
Net adjustments related to a terminated capacity reservation agreement		(720	)		(1,253	)		(13,445	)
Other expense		8,889			600			10,662
Loss (gain) on investment		802			(1,721	)		1,805
Adjustment of income taxes		(25,095	)		(10,067	)		18,874
Non-GAAP net income	$	133,342		$	152,753		$	135,530

GAAP weighted-average outstanding diluted shares		94,105			95,031			97,335
Dilutive stock-based awards		—			—			—
Non-GAAP weighted-average outstanding diluted shares		94,105			95,031			97,335

Non-GAAP net income per share, diluted	$	1.42		$	1.61		$	1.39


QORVO, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)

	Three Months Ended
(in thousands, except percentages)	March 29, 2025						December 28, 2024						March 30, 2024
GAAP gross profit/margin	$	366,563		42.2		%	$	391,416		42.7		%	$	381,857		40.6		%
Stock-based compensation expense		5,645		0.7				5,742		0.6				3,444		0.3
Amortization of intangible assets		21,684		2.5				23,462		2.6				26,031		2.8
Restructuring-related charges		5,492		0.6				6,931		0.7				1,212		0.1
Acquisition and integration-related costs		1		—				1		—				1,281		0.1
Net adjustments related to a terminated capacity reservation agreement		(720	)	(0.1	)			(1,253	)	(0.1	)			(13,445	)	(1.4	)
Non-GAAP gross profit/margin	$	398,665		45.9		%	$	426,299		46.5		%	$	400,380		42.5		%

	Three Months Ended
Non-GAAP Operating Income	March 29, 2025
(as a percentage of revenue)

GAAP operating income	3.3		%
Stock-based compensation expense	3.2
Amortization of intangible assets	2.8
Restructuring-related adjustments	(2.0	)
Goodwill and intangible asset impairment	9.1
Acquisition and integration-related costs	0.5
Net adjustments related to a terminated capacity reservation agreement	(0.1	)
Other expense	0.7
Non-GAAP operating income	17.5		%

	Three Months Ended
Free Cash Flow ⁽¹⁾	March 29, 2025
(in millions)

Net cash provided by operating activities	$	199.2
Purchases of property and equipment		(28.5	)
Free cash flow	$	170.7

(1) Free Cash Flow is calculated as net cash provided by operating activities minus property and equipment expenditures.


QORVO, INC. AND SUBSIDIARIES
ADDITIONAL SELECTED NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(In thousands)
(Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP research and development expense	$	179,931		$	179,126	$	179,883
Less:
Stock-based compensation expense		14,364			13,650		11,812
Acquisition and integration-related costs		1			1		1
Non-GAAP research and development expense	$	165,566		$	165,475	$	168,070

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP selling, general and administrative expense	$	90,581		$	90,360	$	93,107
Less:
Stock-based compensation expense		7,576			8,985		6,291
Amortization of intangible assets		2,356			2,623		5,156
Non-GAAP selling, general and administrative expense	$	80,649		$	78,752	$	81,660

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP other operating expense	$	67,830		$	68,905	$	78,889
Less:
Stock-based compensation (adjustment) expense		(170	)		7		34
Restructuring-related (adjustments) charges		(22,744	)		61,141		54,323
Goodwill and intangible asset impairment		79,503			—		—
Acquisition and integration-related costs		4,393			1,380		5,314
Other expense		6,247			2,216		15,792
Non-GAAP other operating expense	$	601		$	4,161	$	3,426

	Three Months Ended
	March 29, 2025			December 28, 2024		March 30, 2024
GAAP total operating expense	$	338,342		$	338,391	$	351,879
Less:
Stock-based compensation expense		21,770			22,642		18,137
Amortization of intangible assets		2,356			2,623		5,156
Restructuring-related (adjustments) charges		(22,744	)		61,141		54,323
Goodwill and intangible asset impairment		79,503			—		—
Acquisition and integration-related costs		4,394			1,381		5,315
Other expense		6,247			2,216		15,792
Non-GAAP total operating expense	$	246,816		$	248,388	$	253,156


QORVO, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	March 29, 2025		March 30, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	1,021,176	$	1,029,258
Accounts receivable, net		386,719		412,960
Inventories		640,992		710,555
Other current assets		118,388		133,983
Assets of disposal group held for sale		—		159,278
Total current assets		2,167,275		2,446,034

Property and equipment, net		801,895		870,982
Goodwill		2,389,741		2,534,601
Intangible assets, net		273,478		509,383
Long-term investments		23,433		23,252
Other non-current assets		277,309		170,383
Total assets	$	5,933,131	$	6,554,635

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities	$	548,644	$	589,760
Current portion of long-term debt		—		438,740
Other current liabilities		234,538		113,215
Liabilities of disposal group held for sale		—		88,372
Total current liabilities		783,182		1,230,087

Long-term debt		1,549,215		1,549,272
Other long-term liabilities		208,422		218,904
Total liabilities		2,540,819		2,998,263

Stockholders’ equity		3,392,312		3,556,372
Total liabilities and stockholders’ equity	$	5,933,131	$	6,554,635

At Qorvo^®
Doug DeLieto
VP, Investor Relations
1.336.678.7968

The MIL Network –

April 30, 2025

MIL-OSI: EXL Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

2025 First Quarter Revenue of $501.0 Million, up 14.8% year-over-year
Q1 Diluted EPS (GAAP) ⁽¹⁾of $0.40, up 38.3% from $0.29 in Q1 of 2024
Q1 Adjusted Diluted EPS (Non-GAAP) ⁽¹⁾of $0.48, up 26.9% from $0.38 in Q1 of 2024

NEW YORK, April 29, 2025 (GLOBE NEWSWIRE) — ExlService Holdings, Inc. (NASDAQ: EXLS), a global data and AI company, today announced its financial results for the quarter ended March 31, 2025.

Chairman and Chief Executive Officer Rohit Kapoor said, “We are pleased with our first quarter results and strong start to the year, as we delivered revenue and adjusted diluted EPS growth of 15% and 27% respectively. Our strong business momentum underscores the successful execution of our differentiated data and AI-led strategy and demonstrates the enduring resilience and adaptability of EXL’s business model.”

Chief Financial Officer Maurizio Nicolelli said, “While we remain prudent in our outlook given the increasing level of macro-economic uncertainty, we are increasing our revenue guidance for the year, based on our business momentum and more favorable currency exchange rates. We now expect revenue to be in the range of $2.035 billion to $2.065 billion, up from our prior guidance of $2.025 billion to $2.060 billion. This represents 11% to 12% year-over-year growth on a reported basis, or 11% to 13% on a constant currency basis. We continue to expect our adjusted diluted earnings per share for 2025 to be in the range of $1.83 to $1.89, representing an 11% to 14% increase over 2024, as we continue to accelerate our data and AI investments to generate future growth.”

^{______________________________________________________________}

Reconciliations of adjusted (non-GAAP) financial measures to the most directly comparable GAAP measures, where applicable, are included at the end of this release under “Reconciliation of Adjusted Financial Measures to GAAP Measures.” These non-GAAP measures, including adjusted diluted EPS and constant currency measures, are not measures of financial performance prepared in accordance with GAAP.

Financial Highlights: First Quarter 2025

Revenue for the quarter ended March 31, 2025, increased to $501.0 million compared to $436.5 million for the first quarter of 2024, an increase of 14.8% on a reported basis and 15.1% on a constant currency basis. Revenue increased by 4.1% sequentially on a reported basis and 4.3% on a constant currency basis, from the fourth quarter of 2024.

	Revenue				Gross Margin
	Three months ended				Three months ended
Reportable Segments ⁽¹⁾	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
	(dollars in millions)
Insurance	$	172.0	$	158.3	36.6	%	33.8	%
Healthcare and Life Sciences		125.6		100.7	43.9	%	45.3	%
Banking, Capital Markets and Diversified Industries		117.7		103.2	37.3	%	36.1	%
International Growth Markets		85.7		74.3	36.6	%	35.9	%
Total Revenue, net	$	501.0	$	436.5	38.6	%	37.4	%

⁽¹⁾ In the first quarter of 2025, the Company implemented operational and structural changes to accelerate the execution of its data and AI-led strategy. Under the new structure, the Company reports its financial performance based on new segments presented in the table above, and as described in more detail in its Quarterly Report on Form 10-Q for the three months ended March 31, 2025, that is being filed with the SEC. In conjunction with the new reporting structure, the Company has recast prior period amounts, wherever applicable, to conform to the way the Company internally manages and monitors segment performance.

Operating income margin for the quarter ended March 31, 2025 was 15.7%, compared to 14.1% for the first quarter of 2024 and 14.8% for the fourth quarter of 2024. Adjusted operating income margin for the quarter ended March 31, 2025 was 20.1%, compared to 18.9% for the first quarter of 2024 and 18.8% for the fourth quarter of 2024.
Diluted earnings per share for the quarter ended March 31, 2025 was $0.40, compared to $0.29 for the first quarter of 2024 and $0.31 for the fourth quarter of 2024. Adjusted diluted earnings per share for the quarter ended March 31, 2025 was $0.48, compared to $0.38 for the first quarter of 2024 and $0.44 for the fourth quarter of 2024.

Business Highlights: First Quarter 2025

Won 10 new clients in the first quarter of 2025.
- Named a Leader in four categories in the ISG Provider Lens™ Insurance Services 2024 report. Earning top honors in the North American Life & Retirement, Property & Casualty, Life & Retirement TPA Insurance Services, and Insurance IT Services.
- Named a Leader and a Star Performer in Everest Group’s Life and Annuities Insurance Business Process Services and Third-Party Administrator (TPA) PEAK Matrix® Assessment 2025.
- Recognized as part of Newsweek’s America’s Most Responsible Companies 2025, Forbes’ Most Trusted Companies in America 2025, USA Today’s America’s Climate Leaders 2025, and The Financial Times’ Best Employers Asia-Pacific 2025.

2025 Guidance
Based on current visibility, and a U.S. dollar to Indian rupee exchange rate of 85.5, U.K. pound sterling to U.S. dollar exchange rate of 1.30, U.S. dollar to the Philippine peso exchange rate of 57.0 and all other currencies at current exchange rates, we are providing the following guidance for the full year 2025:

Revenue of $2.035 billion to $2.065 billion, representing an increase of 11% to 12% on a reported basis, and 11% to 13% on a constant currency basis from 2024; and
Adjusted diluted earnings per share of $1.83 to $1.89, representing an increase of 11% to 14% from 2024.

Conference Call

ExlService Holdings, Inc. will host a conference call on Wednesday, April 30, 2025 at 10:00 A.M. ET to discuss the Company’s quarterly operating and financial results. The conference call will be available live via the internet by accessing the investor relations section of EXL’s website at ir.exlservice.com, where an accompanying investor-friendly spreadsheet of historical operating and financial data can also be accessed. Please access the website at least fifteen minutes prior to the call to register, download and install any necessary audio software.

Please note that there is a new system to access the live call-in order to ask questions. To join the live call, please register here. A dial-in and unique PIN will be provided to join the call. For those who cannot access the live broadcast, a replay will be available on the EXL website ir.exlservice.com for a period of twelve months.

About ExlService Holdings, Inc.
EXL (NASDAQ: EXLS) is a global data and artificial intelligence (“AI”) company that offers services and solutions to reinvent client business models, drive better outcomes and unlock growth with speed. EXL harnesses the power of data, AI, and deep industry knowledge to transform businesses, including the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media and retail, among others. EXL was founded in 1999 with the core values of innovation, collaboration, excellence, integrity and respect. We are headquartered in New York and have more than 60,000 employees spanning six continents. For more information, visit www.exlservice.com.

Cautionary Statement Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. You should not place undue reliance on those statements because they are subject to numerous uncertainties and factors relating to EXL’s operations and business environment, all of which are difficult to predict and many of which are beyond EXL’s control. Forward-looking statements include information concerning EXL’s possible or assumed future results of operations, including descriptions of its business strategy. These statements may include words such as “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. These statements are based on assumptions that we have made in light of management’s experience in the industry as well as its perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. You should understand that these statements are not guarantees of performance or results. They involve known and unknown risks, uncertainties and assumptions. Although EXL believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect EXL’s actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements. These factors, which include our ability to maintain and grow client demand, our ability to hire and retain sufficiently trained employees, and our ability to accurately estimate and/or manage costs, rising interest rates, rising inflation and recessionary economic trends, are discussed in more detail in EXL’s filings with the Securities and Exchange Commission, including EXL’s Annual Report on Form 10-K. You should keep in mind that any forward-looking statement made herein, or elsewhere, speaks only as of the date on which it is made. New risks and uncertainties come up from time to time, and it is impossible to predict these events or how they may affect EXL. EXL has no obligation to update any forward-looking statements after the date hereof, except as required by applicable law.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amount and share count)

	Three months ended March 31,
		2025			2024
Revenues, net	$	501,019		$	436,507
Cost of revenues ⁽¹⁾		307,705			273,424
Gross profit ⁽¹⁾		193,314			163,083
Operating expenses:
General and administrative expenses		59,417			53,243
Selling and marketing expenses		41,925			35,970
Depreciation and amortization expense		13,557			12,346
Total operating expenses		114,899			101,559
Income from operations		78,415			61,524
Foreign exchange gain, net		1,192			359
Interest expense		(4,144	)		(3,291	)
Other income, net		4,703			3,952
Income before income tax expense and earnings from equity affiliates		80,166			62,544
Income tax expense		13,496			13,753
Income before earnings from equity affiliates		66,670			48,791
Loss from equity-method investment		(109	)		(28	)
Net income	$	66,561		$	48,763
Earnings per share:
Basic	$	0.41		$	0.30
Diluted	$	0.40		$	0.29
Weighted-average number of shares used in computing earnings per share:
Basic		162,490,179			165,082,387
Diluted		164,557,333			166,726,853

⁽¹⁾ Exclusive of depreciation and amortization expense.

EXLSERVICE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(In thousands, except per share amount and share count)

	As of
	March 31, 2025			December 31, 2024

Assets
Current assets:
Cash and cash equivalents	$	140,442		$	153,355
Short-term investments		190,978			187,223
Restricted cash		9,826			9,972
Accounts receivable, net		339,856			304,322
Other current assets		150,203			140,317
Total current assets		831,305			795,189
Property and equipment, net		107,148			101,837
Operating lease right-of-use assets		71,150			68,784
Restricted cash		8,210			8,071
Deferred tax assets, net		109,953			104,747
Goodwill		420,494			420,387
Other intangible assets, net		46,092			49,331
Long-term investments		20,134			13,972
Other assets		61,925			56,085
Total assets	$	1,676,411		$	1,618,403
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,648		$	5,884
Current portion of long-term borrowings		4,886			4,886
Deferred revenue		20,138			19,264
Accrued employee costs		63,575			129,994
Accrued expenses and other current liabilities		131,980			113,597
Current portion of operating lease liabilities		17,426			16,491
Total current liabilities		243,653			290,116
Long-term borrowings, less current portion		302,377			283,598
Operating lease liabilities, less current portion		61,408			59,851
Deferred tax liabilities, net		1,625			1,403
Other non-current liabilities		55,471			53,573
Total liabilities		664,534			688,541
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued		—			—
Common stock, $0.001 par value; 400,000,000 shares authorized, 207,758,497 shares issued and 162,683,343 shares outstanding as of March 31, 2025 and 206,510,587 shares issued and 161,801,212 shares outstanding as of December 31, 2024		207			206
Additional paid-in capital		609,592			588,583
Retained earnings		1,348,521			1,281,960
Accumulated other comprehensive loss		(142,787	)		(154,722	)
Total including shares held in treasury		1,815,533			1,716,027
Less: 45,075,154 shares as of March 31, 2025 and 44,709,375 shares as of December 31, 2024, held in treasury, at cost		(803,656	)		(786,165	)
Total Stockholders’ equity		1,011,877			929,862
Total liabilities and stockholders’ equity	$	1,676,411		$	1,618,403

EXLSERVICE HOLDINGS, INC.

Reconciliation of Adjusted Financial Measures to GAAP Measures

In addition to its reported operating results in accordance with U.S. generally accepted accounting principles (GAAP), EXL has included in this release certain financial measures that are considered non-GAAP financial measures, including the following:

(i) Adjusted operating income and adjusted operating income margin;
(ii) Adjusted EBITDA and adjusted EBITDA margin;
(iii) Adjusted net income and adjusted diluted earnings per share; and
(iv) Revenue growth on constant currency basis.

These non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles, should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. Accordingly, the financial results calculated in accordance with GAAP and reconciliations from those financial statements should be carefully evaluated. EXL believes that providing these non-GAAP financial measures may help investors better understand EXL’s underlying financial performance. Management also believes that these non-GAAP financial measures, when read in conjunction with EXL’s reported results, can provide useful supplemental information for investors analyzing period-to-period comparisons of the Company’s results and comparisons of the Company’s results with the results of other companies. Additionally, management considers some of these non-GAAP financial measures to determine variable compensation of its employees. The Company believes that it is unreasonably difficult to provide its earnings per share financial guidance in accordance with GAAP, or a qualitative reconciliation thereof, for a number of reasons, including, without limitation, the Company’s inability to predict its future stock-based compensation expense under ASC Topic 718, the amortization of intangibles associated with future acquisitions and the currency fluctuations and associated tax effects. As such, the Company presents guidance with respect to adjusted diluted earnings per share. The Company also incurs significant non-cash charges for depreciation that may not be indicative of the Company’s ability to generate cash flow.

EXL non-GAAP financial measures exclude, where applicable, stock-based compensation expense, amortization of acquisition-related intangible assets, provision for litigation matters, effects of termination of leases, certain defined social security contributions, allowance for certain material expected credit losses, other acquisition-related expenses or benefits and effect of any non-recurring tax adjustments. Acquisition-related expenses or benefits include, changes in the fair value of contingent consideration, external deal costs, integration expenses, direct and incremental travel costs and non-recurring benefits or losses. Our adjusted net income and adjusted diluted EPS also excludes the effects of income tax on the above pre-tax items, as applicable. The effects of income tax of each item is calculated by applying the statutory rate of the local tax regulations in the jurisdiction in which the item was incurred.

A limitation of using non-GAAP financial measures versus financial measures calculated in accordance with GAAP is that non-GAAP financial measures do not reflect all of the amounts associated with our operating results as determined in accordance with GAAP and exclude costs that are recurring, namely stock-based compensation and amortization of acquisition-related intangible assets. EXL compensates for these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP financial measures to allow investors to evaluate such non-GAAP financial measures.

EXL’s primary exchange rate exposure is with the Indian rupee, the Philippine peso, the U.K. pound sterling and the South African rand. The average exchange rate of the U.S. dollar against the Indian rupee increased from 83.12 during the quarter ended March 31, 2024 to 86.52 during the quarter ended March 31, 2025, representing a depreciation of 4.1% against the U.S. dollar. The average exchange rate of the U.S. dollar against the Philippine peso increased from 56.24 during the quarter ended March 31, 2024 to 57.86 during the quarter ended March 31, 2025, representing a depreciation of 2.9% against the U.S. dollar. The average exchange rate of the U.K. pound sterling against the U.S. dollar decreased from 1.27 during the quarter ended March 31, 2024 to 1.26 during the quarter ended March 31, 2025, representing a depreciation of 0.1% against the U.S. dollar. The average exchange rate of the U.S. dollar against the South African rand decreased from 18.96 during the quarter ended March 31, 2024 to 18.49 during the quarter ended March 31, 2025, representing an appreciation of 2.5% against the U.S. dollar.

The following table shows the reconciliation of these non-GAAP financial measures for the three months ended March 31, 2025 and March 31, 2024, and the three months ended December 31, 2024:

Reconciliation of Adjusted Operating Income and Adjusted EBITDA
(Amounts in thousands)

	Three months ended
	March 31,						December 31,
		2025			2024			2024
Net Income (GAAP)	$	66,561		$	48,763		$	50,672
add: Income tax expense		13,496			13,753			19,850
add/(subtract): Foreign exchange gain, net, interest expense, gain/(loss) from equity-method investment and other income/(loss), net		(1,642	)		(992	)		720
Income from operations (GAAP)	$	78,415		$	61,524		$	71,242
add: Stock-based compensation expense		19,187			17,852			15,479
add: Amortization of acquisition-related intangibles		3,246			3,080			4,024
Adjusted operating income (Non-GAAP)	$	100,848		$	82,456		$	90,745
Adjusted operating income margin as a % of Revenue (Non-GAAP)		20.1	%		18.9	%		18.8	%
add: Depreciation on long-lived assets		10,311			9,266			12,140
Adjusted EBITDA (Non-GAAP)	$	111,159		$	91,722		$	102,885
Adjusted EBITDA margin as a % of revenue (Non-GAAP)		22.2	%		21.0	%		21.4	%

Reconciliation of Adjusted Net Income and Adjusted Diluted Earnings Per Share
(Amounts in thousands, except per share data)

	Three months ended
	March 31,						December 31,
		2025			2024			2024
Net income (GAAP)	$	66,561		$	48,763		$	50,672
add: Stock-based compensation expense		19,187			17,852			15,479
add: Amortization of acquisition-related intangibles		3,246			3,080			4,024
add/(subtract): Changes in fair value of contingent consideration		—			(589	)		—
add/(subtract): Other tax expense/(benefits) (a)		—			151			3,860
subtract: Tax impact on stock-based compensation expense (b)		(9,105	)		(5,358	)		(1,769	)
subtract: Tax impact on amortization of acquisition-related intangibles		(799	)		(766	)		(921	)
Adjusted net income (Non-GAAP)	$	79,090		$	63,133		$	71,345
Adjusted diluted earnings per share (Non-GAAP)	$	0.48		$	0.38		$	0.44

(a) To exclude other tax expenses/(benefits), primarily related to certain deferred tax assets and liabilities.

(b) Tax impact includes $14,526 and $7,523 during the three months ended March 31, 2025 and 2024 respectively, and $500 during the three months ended December 31, 2024, related to discrete benefit recognized in income tax expense in accordance with ASU No. 2016-09, Compensation – Stock Compensation.

Contacts:
Investor Relations
John Kristoff
Vice President, Investor Relations
+1 212 209 4613
ir@exlservice.com

Media – US
Keith Little
Assistant Vice President, Media Relations
+1 703 598 0980
media.relations@exlservice.com

This press release was published by a CLEAR® Verified individual.

The MIL Network –

April 30, 2025

MIL-OSI: Expand Energy Corporation Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

OKLAHOMA CITY, April 29, 2025 (GLOBE NEWSWIRE) — Expand Energy Corporation (NASDAQ: EXE) (“Expand Energy” or the “Company”) today reported first quarter 2025 financial and operating results.

Net cash provided by operating activities of $1,096 million
Net loss of $249 million, or $1.06 per fully diluted share; adjusted net income⁽¹⁾of $487 million, or $2.02 per share
Adjusted EBITDAX⁽¹⁾of $1,395 million
Produced approximately 6.79 Bcfe/d net (92% natural gas)
Added to the S&P 500, effective March 24, 2025
Upgraded to Investment Grade credit rating by Moody’s (Baa3); achieved uniform Investment Grade rating from all rating agencies
Quarterly base dividend of $0.575 per common share to be paid in June 2025, 17th straight quarter of paying a dividend
On track to capture approximately $400 million in 2025 synergies, with the total target of $500 million in annual synergies expected to be achieved by year end 2026

(1) Definitions of non-GAAP financial measures and reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure are included at the end of this news release.

“Overcoming market volatility requires a resilient financial foundation, a deep market-connected portfolio, and low cost, efficient operations, all hallmarks of our strategy,” said Nick Dell’Osso, Expand Energy’s President and Chief Executive Officer. “We continue to execute our business, utilizing our productive capacity to navigate today’s dynamic macro environment and be prepared to efficiently respond as market conditions change.”

Operations Update

Expand Energy operated an average of 11 rigs during the first quarter, drilling 46 wells and turning 89 wells in line, resulting in net production of approximately 6.79 Bcfe per day (92% natural gas). A detailed breakdown of first quarter production, capital expenditures and activity can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

2025 Annual Synergy, Capital and Operating Outlook

In 2025, Expand Energy expects to run approximately 12 rigs and invest approximately $2.7 billion yielding an estimated daily production of approximately 7.1 Bcfe/d. The Company intends to build incremental productive capacity for an additional $300 million by exiting 2025 with approximately 15 rigs. This incremental capital investment positions the Company to efficiently grow production from a year-end 2025 exit rate of approximately 7.2 Bcfe/d to average approximately 7.5 Bcfe/d in 2026 should market conditions warrant.

Expand Energy is on track to capture its 2025 expected annual synergy target of approximately $400 million. The Company expects to achieve the full $500 million in annual synergies by year end 2026.

A detailed breakdown of 2025 annual synergy, capital, and operating outlook can be found in supplemental slides which have been posted at https://investors.expandenergy.com/events-presentations.

Shareholder Returns Update

Expand Energy enhanced its capital return framework in 2024 to more efficiently return cash to shareholders and reduce Net Debt. The Company plans to pay its quarterly base dividend of $0.575 per share on June 4, 2025 to shareholders of record at the close of business on May 15, 2025. The Company expects to allocate $500 million to Net Debt reduction in 2025, and at current market conditions, to have additional free cash flow available to allocate to the combination of variable dividends, share repurchases, and the balance sheet.

Conference Call Information

A conference call to discuss Expand Energy’s first quarter 2025 financial and operating results and 2025 outlook has been scheduled for 9 a.m. EDT on April 30, 2025. Participants can access the live webcast at https://edge.media-server.com/mmc/p/kn8j2wew/. Participants who would like to ask a question, can register at https://register-conf.media-server.com/register/BIb82422792483441f93f8794cbf385f7c, and will receive the dial-in info and a unique PIN to join the call. Links to the conference call will be provided at https://investors.expandenergy.com/. A replay will be available on the website following the call.

Financial Statements, Non-GAAP Financial Measures and 2025 Guidance and Outlook Projections

This news release contains the non-GAAP financial measures described below in the section titled “Non-GAAP Financial Measures.” Reconciliations of each non-GAAP financial measure used in this news release to the most directly comparable GAAP financial measure are provided below. Additional detail on the Company’s 2025 first quarter financial and operational results, along with non-GAAP measures that adjust for items typically excluded by securities analysts, are available on the Company’s website. Non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. Management’s guidance for 2025 can be found on the Company’s website at https://www.expandenergy.com/.

Expand Energy Corporation (NASDAQ: EXE) is the largest natural gas producer in the United States, powered by dedicated and innovative employees focused on disrupting the industry’s traditional cost and market delivery model to responsibly develop assets in the nation’s most prolific natural gas basins. Expand Energy’s returns-driven strategy strives to create sustainable value for its stakeholders by leveraging its scale, financial strength and operational execution. Expand Energy is committed to expanding America’s energy reach to fuel a more affordable, reliable, lower carbon future.

Forward-Looking Statements

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include our current expectations or forecasts of future events, including matters relating to armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, and the impact of each on our business, financial condition, results of operations and cash flows, actions by, or disputes among or between, members of OPEC+ and other foreign oil-exporting countries, market factors, market prices, our ability to meet debt service requirements, our ability to continue to pay cash dividends, our ability to capture synergies, the amount and timing of any cash dividends and our environmental, social, and governance (“ESG”) initiatives. Forward-looking and other statements in this news release regarding our environmental, social and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the Securities and Exchange commission (“SEC”). In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “aim”, “predict”, “should”, “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy.” The absence of such words or expressions does not necessarily mean the statements are not forward-looking.

Although we believe the expectations and forecasts reflected in our forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond our control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include:

Reduced demand for natural gas, oil, and natural gas liquids (“NGLs”);
negative public perceptions of our industry;
competition in the natural gas and oil exploration and production industry;
the volatility of natural gas, oil and NGL prices, which are affected by general economic and business conditions, as well as increased demand for (and availability of) alternative fuels and electric vehicles;
risks from regional epidemics or pandemics and related economic turmoil, including supply chain constraints;
write-downs of our natural gas and oil asset carrying values due to low commodity prices;
significant capital expenditures are required to replace our reserves and conduct our business;
our ability to replace reserves and sustain production;
uncertainties inherent in estimating quantities of natural gas, oil and NGL reserves and projecting future rates of production and the amount and timing of development expenditures;
drilling and operating risks and resulting liabilities;
our ability to generate profits or achieve targeted results in drilling and well operations;
leasehold terms expiring before production can be established;
risks from our commodity price risk management activities;
uncertainties, risks and costs associated with natural gas and oil operations;
our need to secure adequate supplies of water for our drilling operations and to dispose of or recycle the water used;
pipeline and gathering system capacity constraints and transportation interruptions;
risks related to our plans to participate in the global LNG value chain;
terrorist activities and/or cyber-attacks adversely impacting our operations;
risks from failure to protect personal information and data and compliance with data privacy and security laws and regulations;
disruption of our business by natural or human causes beyond our control;
a deterioration in general economic, business or industry conditions;
the impact of inflation and commodity price volatility, including as a result of decisions made by OPEC+ and armed conflict and instability in Europe and the Middle East, along with the effects of the current global economic environment, on our business, financial condition, employees, contractors, vendors and the global demand for natural gas and oil and on U.S. and global financial markets;
our inability to access the capital markets on favorable terms;
the limitations on our financial flexibility due to our level of indebtedness and restrictive covenants from our indebtedness;
challenges with employee retention and increasingly competitive labor market
risks related to acquisitions or dispositions, or potential acquisitions or dispositions;
security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business;
our ability to achieve and maintain ESG certifications, goals and commitments;
legislative, regulatory, and ESG initiatives, including those addressing the impact of climate change or further regulating hydraulic fracturing, methane emissions, flaring or water disposal;
federal and state tax proposals affecting our industry;
risks related to an annual limitation on the utilization of our tax attributes, which was triggered upon the completion of our merger with Southwestern Energy Company (the “Southwestern Merger”), as well as trading in our common stock, additional issuance of common stock, and certain other stock transactions, which could lead to an additional, potentially more restrictive, annual limitation; and
other factors that are described under Risk Factors in Item 1A of Part I of our Annual Report on Form 10-K filed with the SEC.

We caution you not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of the filing date, and we undertake no obligation and have no intention to update any forward-looking statement, except as required by law. We urge you to carefully review and consider the disclosures in this news release and our filings with the SEC that attempt to advise interested parties of the risks and factors that may affect our business.

All forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary statement.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

($ in millions, except per share data)	March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	349		$	317
Restricted cash		78			78
Accounts receivable, net		1,361			1,226
Derivative assets		—			84
Other current assets		325			292
Total current assets		2,113			1,997
Property and equipment:
Natural gas and oil properties, successful efforts method
Proved natural gas and oil properties		23,874			23,093
Unproved properties		5,774			5,897
Other property and equipment		678			654
Total property and equipment		30,326			29,644
Less: accumulated depreciation, depletion and amortization		(6,066	)		(5,362	)
Total property and equipment, net		24,260			24,282
Long-term derivative assets		2			1
Deferred income tax assets		626			589
Other long-term assets		933			1,025
Total assets	$	27,934		$	27,894

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	654		$	777
Current maturities of long-term debt, net		—			389
Accrued interest		68			100
Derivative liabilities		896			71
Other current liabilities		1,971			1,786
Total current liabilities		3,589			3,123
Long-term debt, net		5,243			5,291
Long-term derivative liabilities		129			68
Asset retirement obligations, net of current portion		506			499
Long-term contract liabilities		1,159			1,227
Other long-term liabilities		117			121
Total liabilities		10,743			10,329
Contingencies and commitments
Stockholders’ equity:
Common stock, $0.01 par value, 450,000,000 shares authorized: 237,476,127 and 231,769,886 shares issued		2			2
Additional paid-in capital		13,700			13,687
Retained earnings		3,489			3,876
Total stockholders’ equity		17,191			17,565
Total liabilities and stockholders’ equity	$	27,934		$	27,894

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions, except per share data)
Revenues and other:
Natural gas, oil and NGL	$	2,300		$	589
Marketing		910			312
Natural gas, oil and NGL derivatives		(1,014	)		172
Gains on sales of assets		—			8
Total revenues and other		2,196			1,081
Operating expenses:
Production		147			59
Gathering, processing and transportation		563			173
Severance and ad valorem taxes		48			29
Exploration		7			2
Marketing		919			323
General and administrative		47			47
Depreciation, depletion and amortization		711			399
Other operating expense, net		22			17
Total operating expenses		2,464			1,049
Income (loss) from operations		(268	)		32
Other income (expense):
Interest expense		(59	)		(19	)
Other income, net		8			20
Total other income (expense)		(51	)		1
Income (loss) before income taxes		(319	)		33
Income tax expense (benefit)		(70	)		7
Net income (loss)	$	(249	)	$	26
Earnings (loss) per common share:
Basic	$	(1.06	)	$	0.20
Diluted	$	(1.06	)	$	0.18
Weighted average common shares outstanding (in thousands):
Basic		234,434			130,893
Diluted		234,434			141,752

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Three Months Ended March 31,
($ in millions)		2025			2024
Cash flows from operating activities:
Net income (loss)	$	(249	)	$	26
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization		711			399
Deferred income tax expense (benefit)		(37	)		7
Derivative (gains) losses, net		1,014			(172	)
Cash receipts (payments) on derivative settlements, net		(45	)		228
Share-based compensation		9			9
Gains on sales of assets		—			(8	)
Contract amortization		(52	)		—
Other		(4	)		(13	)
Changes in assets and liabilities		(251	)		76
Net cash provided by operating activities		1,096			552
Cash flows from investing activities:
Capital expenditures		(563	)		(421	)
Receipts of deferred consideration		60			60
Contributions to investments		(4	)		(19	)
Proceeds from divestitures of property and equipment		—			6
Net cash used in investing activities		(507	)		(374	)
Cash flows from financing activities:
Proceeds from Credit Facility		725			—
Payments on Credit Facility		(725	)		—
Proceeds from warrant exercise		21			—
Cash paid to purchase debt		(436	)		—
Cash paid for common stock dividends		(142	)		(77	)
Net cash used in financing activities		(557	)		(77	)
Net increase in cash, cash equivalents and restricted cash		32			101
Cash, cash equivalents and restricted cash, beginning of period		395			1,153
Cash, cash equivalents and restricted cash, end of period	$	427		$	1,254

Cash and cash equivalents	$	349		$	1,179
Restricted cash		78			75
Total cash, cash equivalents and restricted cash	$	427		$	1,254

NATURAL GAS, OIL AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)

	Three Months Ended March 31, 2025
	Natural Gas		Oil		NGL		Total
	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBbl per day	$/Bbl	MMcfe per day	$/Mcfe
Haynesville	2,617	3.48	—	—	—	—	2,617	3.48
Northeast Appalachia	2,668	3.75	—	—	—	—	2,668	3.75
Southwest Appalachia	969	3.38	14	63.40	75	30.54	1,503	4.28
Total	6,254	3.58	14	63.40	75	30.54	6,788	3.76

Average NYMEX Price		3.65		71.42
Average Realized Price (including realized derivatives)		3.51		63.76		29.35		3.69

	Three Months Ended March 31, 2024
	Natural Gas		Oil		NGL		Total
	MMcf per day	$/Mcf	MBbl per day	$/Bbl	MBbl per day	$/Bbl	MMcfe per day	$/Mcfe
Haynesville	1,478	2.03	—	—	—	—	1,478	2.03
Northeast Appalachia	1,720	2.03	—	—	—	—	1,720	2.03
Total	3,198	2.03	—	—	—	—	3,198	2.03

Average NYMEX Price		2.24		—
Average Realized Price (including realized derivatives)		2.85		—		—		2.85

CAPITAL EXPENDITURES ACCRUED (unaudited)

	Three Months Ended March 31,
		2025		2024
($ in millions)
Drilling and completion capital expenditures:
Haynesville	$	286	$	195
Northeast Appalachia		103		105
Southwest Appalachia		165		—
Total drilling and completion capital expenditures		554		300
Non-drilling and completion – field		56		35
Non-drilling and completion – corporate		52		19
Total capital expenditures	$	662	$	354

NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Expand Energy’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income, Adjusted Diluted Earnings Per Common Share, Adjusted EBITDAX, Free Cash Flow, Adjusted Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the Company’s trends and performance, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provided by the Company generally excludes information regarding these types of items.

Expand Energy’s definitions of each non-GAAP measure presented herein are provided below. Because not all companies or securities analysts use identical calculations, Expand Energy’s non-GAAP measures may not be comparable to similarly titled measures of other companies or securities analysts.

Adjusted Net Income: Adjusted Net Income is defined as net income (loss) adjusted to exclude unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Net Income facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Net Income should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Adjusted Diluted Earnings Per Common Share: Adjusted Diluted Earnings Per Common Share is defined as diluted earnings (loss) per common share adjusted to exclude the per diluted share amounts attributed to unrealized (gains) losses on natural gas and oil derivatives, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results, less a tax effect using applicable rates. Expand Energy believes that Adjusted Diluted Earnings Per Common Share facilitates comparisons of the Company’s period-over-period performance, by excluding the impact of items that, in the opinion of management, do not reflect Expand Energy’s core operating performance. Adjusted Diluted Earnings Per Common Share should not be considered an alternative to, or more meaningful than, earnings (loss) per common share as presented in accordance with GAAP.

Adjusted EBITDAX: Adjusted EBITDAX is defined as net income (loss) before interest expense, income tax expense (benefit), depreciation, depletion and amortization expense, exploration expense, unrealized (gains) losses on natural gas and oil derivatives, separation and other termination costs, (gains) losses on sales of assets, and certain items management believes affect the comparability of operating results. Adjusted EBITDAX is presented as it provides investors an indication of the Company’s ability to internally fund exploration and development activities and service or incur debt. Adjusted EBITDAX should not be considered an alternative to, or more meaningful than, net income (loss) as presented in accordance with GAAP.

Free Cash Flow: Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures. Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders. Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Adjusted Free Cash Flow: Adjusted Free Cash Flow is defined as net cash provided by operating activities less cash capital expenditures and cash contributions to investments, adjusted to exclude certain items management believes affect the comparability of operating results. Adjusted Free Cash Flow is a liquidity measure that provides investors additional information regarding the Company’s ability to service or incur debt and return cash to shareholders and is used to determine Expand Energy’s payout of enhanced returns framework. Adjusted Free Cash Flow should not be considered an alternative to, or more meaningful than, net cash provided by (used in) operating activities, or any other measure of liquidity presented in accordance with GAAP.

Net Debt: Net Debt is defined as GAAP total debt excluding premiums, discounts, and deferred issuance costs less cash and cash equivalents. Net Debt is useful to investors as a widely understood measure of liquidity and leverage, but this measure should not be considered as an alternative to, or more meaningful than, total debt presented in accordance with GAAP.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (unaudited)

	Three Months Ended March 31,
($ in millions)		2025			2024
Net income (loss) (GAAP)	$	(249	)	$	26

Adjustments:
Unrealized losses on natural gas and oil derivatives		969			67
Gains on sales of assets		—			(8	)
Other operating expense, net		26			19
Contract amortization		(52	)		—
Other		(4	)		(8	)
Tax effect of adjustments^(a)		(203	)		(16	)
Adjusted net income (Non-GAAP)	$	487		$	80

(a)	The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of 22% and 23%, respectively.

RECONCILIATION OF EARNINGS (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED EARNINGS PER COMMON SHARE (unaudited)

	Three Months Ended March 31,
($/share)		2025			2024
Earnings (loss) per common share (GAAP)	$	(1.06	)	$	0.20
Effect of dilutive securities		—			(0.02	)
Diluted earnings (loss) per common share (GAAP)	$	(1.06	)	$	0.18

Adjustments:
Unrealized losses on natural gas and oil derivatives		4.14			0.47
Gains on sales of assets		—			(0.06	)
Other operating expense, net		0.11			0.14
Contract amortization		(0.22	)		—
Other		(0.02	)		(0.06	)
Tax effect of adjustments^(a)		(0.87	)		(0.11	)
Effect of dilutive securities		(0.06	)		—
Adjusted diluted earnings per common share (Non-GAAP)	$	2.02		$	0.56

(a)	The three month periods ended March 31, 2025 and March 31, 2024 include a tax effect attributed to reconciling adjustments using a statutory rate of 22% and 23%, respectively.

RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions)
Net income (loss) (GAAP)	$	(249	)	$	26

Adjustments:
Interest expense		59			19
Income tax expense (benefit)		(70	)		7
Depreciation, depletion and amortization		711			399
Exploration		7			2
Unrealized losses on natural gas and oil derivatives		969			67
Gains on sales of assets		—			(8	)
Other operating expense, net		26			19
Contract amortization		(52	)		—
Other		(6	)		(23	)
Adjusted EBITDAX (Non-GAAP)	$	1,395		$	508

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW (unaudited)

	Three Months Ended March 31,
		2025			2024
($ in millions)
Net cash provided by operating activities (GAAP)	$	1,096		$	552
Cash capital expenditures		(563	)		(421	)
Free cash flow (Non-GAAP)		533			131
Cash paid for merger expenses		48			—
Cash contributions to investments		(4	)		(19	)
Adjusted free cash flow (Non-GAAP)	$	577		$	112

RECONCILIATION OF TOTAL DEBT TO NET DEBT (unaudited)

($ in millions)	March 31, 2025
Total debt (GAAP)	$	5,243
Premiums, discounts and issuance costs on debt		7
Principal amount of debt		5,250
Cash and cash equivalents		(349	)
Net debt (Non-GAAP)	$	4,901

The MIL Network –

April 30, 2025

MIL-OSI: Tenable Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Revenue of $239.1 million, up 11% year-over-year.
Calculated current billings of $215.4 million, up 9% year-over-year.
GAAP operating margin of (7)%; Non-GAAP operating margin of 20%.
Net cash provided by operating activities of $87.4 million; Unlevered free cash flow of $86.8 million.

COLUMBIA, Md., April 29, 2025 (GLOBE NEWSWIRE) — Tenable Holdings, Inc. (“Tenable”) (Nasdaq: TENB), the exposure management company, today announced financial results for the quarter ended March 31, 2025.

“We had a strong start to the year with better-than-expected results on both the top and bottom line,” said Steve Vintz, Co-CEO of Tenable. “With our ongoing investments in areas like AI and integrations with third-party tools and data sources we are helping our customers reduce risk with greater efficiency.”

“We had some incredible six- and seven-figure deals this quarter driving upside to our expectations and representing significant ongoing opportunities,” said Mark Thurmond, Co-CEO of Tenable. “Our outperformance was driven by continued momentum with Tenable One as we build strategic partnerships resulting in larger deal sizes, broader platform adoption, and greater asset coverage.”

First Quarter 2025 Financial Highlights

Revenue was $239.1 million, an 11% increase year-over-year.
Calculated current billings was $215.4 million, a 9% increase year-over-year.
GAAP loss from operations was $17.7 million, compared to $8.9 million in the first quarter of 2024.
Non-GAAP income from operations was $48.7 million, compared to $37.0 million in the first quarter of 2024.
GAAP net loss was $22.9 million, compared to $14.4 million in the first quarter of 2024.
GAAP net loss per share was $0.19, compared to $0.12 in the first quarter of 2024.
Non-GAAP net income was $44.3 million, compared to $30.4 million in the first quarter of 2024.
Non-GAAP diluted earnings per share was $0.36, compared to $0.25 in the first quarter of 2024.
Cash and cash equivalents and short-term investments were $460.3 million at March 31, 2025, compared to $577.2 million at December 31, 2024.
Net cash provided by operating activities was $87.4 million, compared to $50.3 million in the first quarter of 2024.
Unlevered free cash flow was $86.8 million, compared to $54.7 million in the first quarter of 2024.
Repurchased 1.6 million shares of our common stock for $60.0 million

Recent Business Highlights

Added 361 new enterprise platform customers and 54 net new six-figure customers.
Completed the acquisition of Vulcan Cyber Ltd., which is expected to enhance our industry-leading exposure management platform, delivering comprehensive visibility, prioritization and remediation across the entire attack surface.
Released Identity 360 and Exposure Center, two capabilities designed to help organizations pinpoint identity risks and take swift, targeted action to prevent identity-based attacks.
Achieved FedRAMP moderate authorization of Tenable One and Tenable Cloud Security, underscoring our commitment to strengthening government infrastructure and reducing cybersecurity risk to support national security.
Published the 2025 Cloud AI Risk Report, examining the current state of security risks in cloud AI development tools and frameworks and in AI services offered by the three major cloud providers.

Financial Outlook

For the second quarter of 2025, we currently expect:

Revenue in the range of $241.0 million to $243.0 million.
Non-GAAP income from operations in the range of $43.0 million to $45.0 million.
Non-GAAP net income in the range of $36.0 million to $38.0 million, assuming interest expense of $7.1 million, interest income of $4.0 million and a provision for income taxes of $3.2 million.
Non-GAAP diluted earnings per share in the range of $0.29 to $0.31.
123.0 million diluted weighted average shares outstanding.

For the year ending December 31, 2025, we currently expect:

Calculated current billings in the range of $1.025 billion to $1.045 billion.
Revenue in the range of $970.0 million to $980.0 million.
Non-GAAP income from operations in the range of $205.0 million to $215.0 million.
Non-GAAP net income in the range of $178.0 million to $188.0 million, assuming interest expense of $28.4 million, interest income of $16.8 million and a provision for income taxes of $13.1 million.
Non-GAAP diluted earnings per share in the range of $1.44 to $1.52.
123.5 million diluted weighted average shares outstanding.
Unlevered free cash flow in the range of $265.0 million to $275.0 million.

Conference Call Information

Tenable will host a conference call on April 29, 2025 at 4:30 p.m. Eastern Time to discuss its financial results. The conference call can be accessed at 877-407-9716 (U.S.) and 201-493-6779 (international). A live webcast of the event will be available on the Tenable Investor Relations website at https://investors.tenable.com. An archived replay of the live broadcast will be available on the Investor Relations page of the website following the call.

About Tenable

Tenable^® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for approximately 44,000 customers around the globe. Learn more at tenable.com.

Contact Information

Investor Relations
investors@tenable.com

Media Relations
tenablepr@tenable.com

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our platform’s ability to help protect enterprises from security exposure and streamline vulnerability analysis and response, business strategy and plans and objectives for future operations, are forward-looking statements and represent our views as of the date of this press release. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of assumptions and risks and uncertainties, many of which involve factors or circumstances that are beyond our control that could affect our financial results. These risks and uncertainties are detailed in the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings that we make from time to time with the SEC, which are available on the SEC’s website at sec.gov. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in any forward-looking statements. Except as required by law, we are under no obligation to update these forward-looking statements subsequent to the date of this press release, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance the overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We believe that these non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. We include these non-GAAP financial measures to present our financial performance using a management view and because we believe that these measures provide an additional comparison of our core financial performance over multiple periods with other companies in our industry.

Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables accompanying this press release.

Calculated Current Billings: We define calculated current billings, a non-GAAP financial measure, as total revenue recognized in a period plus the change in current deferred revenue in the corresponding period. We believe that calculated current billings is a key metric to measure our periodic performance. Given that most of our customers pay in advance (including multi-year contracts), but we generally recognize the related revenue ratably over time, we use calculated current billings to measure and monitor our ability to provide our business with the working capital generated by upfront payments from our customers. We believe that calculated current billings, which excludes deferred revenue for periods beyond twelve months in a customer’s contractual term, more closely correlates with annual contract value and that the variability in total billings, depending on the timing of large multi-year contracts and the preference for annual billing versus multi-year upfront billing, may distort growth in one period over another.

Free Cash Flow and Unlevered Free Cash Flow: We define free cash flow, a non-GAAP financial measure, as net cash provided by operating activities less purchases of property and equipment and capitalized software development costs. We believe free cash flow is an important liquidity measure of the cash that is available (if any), after purchases of property and equipment and capitalized software development costs, for investment in our business and to make acquisitions. We believe that free cash flow is useful as a liquidity measure because it measures our ability to generate cash. We define unlevered free cash flow as free cash flow plus cash paid for interest and other financing costs. We believe unlevered free cash flow is useful as a liquidity measure as it measures the cash that is available to invest in our business and meet our current debt obligations and future financing needs. However, given our debt obligations, non-cancelable commitments and other contractual obligations, unlevered free cash flow does not represent residual cash flow available for discretionary expenses.

Non-GAAP Income from Operations and Non-GAAP Operating Margin: We define these non-GAAP financial measures as their respective GAAP measures, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses, costs related to the intra-entity asset transfers resulting from the internal restructuring of legal entities, and amortization of acquired intangible assets. Acquisition-related expenses include transaction and integration expenses, as well as costs related to the intercompany transfer of acquired intellectual property. Restructuring expenses include non-ordinary course severance, employee related benefits, and other charges to reorganize business operations. We believe that the exclusion of these expenses provides for a useful comparison of our operating results to prior periods and to our peer companies, which commonly exclude restructuring expenses.

Non-GAAP Net Income and Non-GAAP Earnings Per Share: We define non-GAAP net income as GAAP net loss, excluding the effect of stock-based compensation, acquisition-related expenses, restructuring expenses and amortization of acquired intangible assets, including the applicable tax impacts. In addition, we exclude the tax impact and related costs of intra-entity asset transfers resulting from the internal restructuring of legal entities as well as deferred income tax benefits recognized in connection with acquisitions. We use non-GAAP net income to calculate non-GAAP earnings per share.

Non-GAAP Gross Profit and Non-GAAP Gross Margin: We define non-GAAP gross profit as GAAP gross profit, excluding the effect of stock-based compensation and amortization of acquired intangible assets. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP Sales and Marketing Expense, Non-GAAP Research and Development Expense and Non-GAAP General and Administrative Expense: We define these non-GAAP measures as their respective GAAP measures, excluding stock-based compensation, acquisition-related expenses and costs related to intra-entity asset transfers resulting from the internal restructuring of legal entities.

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
	Three Months Ended March 31,
(in thousands, except per share data)	2025			2024
Revenue	$	239,137		$	215,961
Cost of revenue⁽¹⁾		52,460			48,932
Gross profit		186,677			167,029
Operating expenses:
Sales and marketing⁽¹⁾		103,182			99,825
Research and development⁽¹⁾		53,223			43,727
General and administrative⁽¹⁾		47,983			31,018
Restructuring		—			1,389
Total operating expenses		204,388			175,959
Loss from operations		(17,711	)		(8,930	)
Interest income		4,927			5,624
Interest expense		(7,011	)		(8,112	)
Other income (expense), net		474			(1,310	)
Loss before income taxes		(19,321	)		(12,728	)
Provision for income taxes		3,614			1,658
Net loss	$	(22,935	)	$	(14,386	)

Net loss per share, basic and diluted	$	(0.19	)	$	(0.12	)
Weighted-average shares used to compute net loss per share, basic and diluted		120,083			117,542

_______________

⁽¹⁾ Includes stock-based compensation as follows:

	Three Months Ended March 31,
	2025		2024
Cost of revenue	$	3,315	$	2,982
Sales and marketing		16,630		15,300
Research and development		12,967		11,161
General and administrative⁽²⁾		22,991		10,276
Total stock-based compensation	$	55,903	$	39,719

_______________

⁽²⁾ Stock-based compensation in the three months ended March 31, 2025 includes $14.6 million of expense related to the accelerated vesting of equity awards for our late CEO.

TENABLE HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS
	March 31, 2025			December 31, 2024
(in thousands, except per share data)	(unaudited)
Assets
Current assets:
Cash and cash equivalents	$	233,441		$	328,647
Short-term investments		226,836			248,547
Accounts receivable (net of allowance for doubtful accounts of $748 and $525 at March 31, 2025 and December 31, 2024, respectively)		167,793			258,734
Deferred commissions		51,247			51,791
Prepaid expenses and other current assets		67,106			53,026
Total current assets		746,423			940,745
Property and equipment, net		41,343			39,265
Deferred commissions (net of current portion)		65,582			67,914
Operating lease right-of-use assets		40,951			45,139
Acquired intangible assets, net		128,597			94,461
Goodwill		656,481			541,292
Other assets		14,200			13,303
Total assets	$	1,693,577		$	1,742,119

Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued expenses	$	17,684		$	19,981
Accrued compensation		51,432			55,784
Deferred revenue		633,224			650,372
Operating lease liabilities		6,305			6,801
Other current liabilities		6,346			5,154
Total current liabilities		714,991			738,092
Deferred revenue (net of current portion)		175,151			182,815
Term loan, net of issuance costs (net of current portion)		356,068			356,705
Operating lease liabilities (net of current portion)		54,621			56,224
Other liabilities		9,585			8,329
Total liabilities		1,310,416			1,342,165

Stockholders’ equity:
Common stock (par value: $0.01; 500,000 shares authorized; 124,484 and 122,371 shares issued at March 31, 2025 and December 31, 2024, respectively)		1,245			1,224
Additional paid-in capital		1,440,770			1,374,659
Treasury stock (at cost: 4,282 and 2,673 shares at March 31, 2025 and December 31, 2024, respectively)		(174,911	)		(114,911	)
Accumulated other comprehensive income		328			318
Accumulated deficit		(884,271	)		(861,336	)
Total stockholders’ equity		383,161			399,954
Total liabilities and stockholders’ equity	$	1,693,577		$	1,742,119

TENABLE HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
	Three Months Ended March 31,
(in thousands)	2025			2024
Cash flows from operating activities:
Net loss	$	(22,935	)	$	(14,386	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		9,854			8,232
Stock-based compensation		55,903			39,719
Net accretion of discounts and amortization of premiums on short-term investments		(1,180	)		(2,284	)
Amortization of debt issuance costs		349			329
Other		979			1,611
Changes in operating assets and liabilities:
Accounts receivable		92,968			63,437
Prepaid expenses and other assets		(9,875	)		5,216
Accounts payable, accrued expenses and accrued compensation		(8,491	)		(22,017	)
Deferred revenue		(32,507	)		(27,789	)
Other current and noncurrent liabilities		2,342			(1,742	)
Net cash provided by operating activities		87,407			50,326

Cash flows from investing activities:
Purchases of property and equipment		(6,553	)		(665	)
Capitalized software development costs		(624	)		(2,532	)
Purchases of short-term investments		(38,445	)		(77,465	)
Sales and maturities of short-term investments		61,345			65,570
Proceeds from other investments		664			3,512
Business combinations, net of cash acquired		(148,510	)		—
Net cash used in investing activities		(132,123	)		(11,580	)

Cash flows from financing activities:
Payments on term loan		(938	)		(938	)
Proceeds from stock issued in connection with the employee stock purchase plan		9,701			9,884
Proceeds from the exercise of stock options		347			1,874
Purchase of treasury stock		(60,000	)		(24,991	)
Net cash used in financing activities		(50,890	)		(14,171	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		400			(1,730	)
Net (decrease) increase in cash and cash equivalents and restricted cash		(95,206	)		22,845
Cash and cash equivalents and restricted cash at beginning of period		328,647			237,132
Cash and cash equivalents and restricted cash at end of period	$	233,441		$	259,977

TENABLE HOLDINGS, INC. REVENUE COMPONENTS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (unaudited)
Revenue	Three Months Ended March 31,
(in thousands)	2025		2024
Subscription revenue	$	220,443	$	197,635
Perpetual license and maintenance revenue		11,552		12,156
Professional services and other revenue		7,142		6,170
Revenue⁽¹⁾	$	239,137	$	215,961

_______________

⁽¹⁾ Recurring revenue, which includes revenue from subscription arrangements for software (both recognized ratably over the subscription term and upon delivery) and cloud-based solutions and maintenance associated with perpetual licenses, represented 96% of revenue in the three months ended March 31, 2025 and 2024.

Calculated Current Billings	Three Months Ended March 31,
(in thousands)	2025			2024
Revenue	$	239,137		$	215,961
Deferred revenue (current), end of period		633,224			562,575
Deferred revenue (current), beginning of period⁽¹⁾		(657,001	)		(580,779	)
Calculated current billings	$	215,360		$	197,757

^{________________}
⁽¹⁾ Deferred revenue (current), beginning of period for the three months ended March 31, 2025 includes $6.6 million related to acquired deferred revenue.

Remaining Performance Obligations	March 31,
(in thousands)	2025		2024
Remaining performance obligations, short-term	$	647,647	$	572,851
Remaining performance obligations, long-term		234,598		169,560
Remaining performance obligations	$	882,245	$	742,411

Free Cash Flow and Unlevered Free Cash Flow	Three Months Ended March 31,
(in thousands)	2025			2024
Net cash provided by operating activities	$	87,407		$	50,326
Purchases of property and equipment		(6,553	)		(665	)
Capitalized software development costs		(624	)		(2,532	)
Free cash flow		80,230			47,129
Cash paid for interest and other financing costs		6,574			7,611
Unlevered free cash flow	$	86,804		$	54,740

Free cash flow and unlevered free cash flow for the periods presented were impacted by:

	Three Months Ended March 31,
(in thousands)	2025			2024
Employee stock purchase plan activity	$	(5,413	)	$	(6,332	)
Acquisition-related expenses		(3,189	)		(466	)
Restructuring		—			(3,822	)

Non-GAAP Income from Operations and Non-GAAP Operating Margin	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Loss from operations	$	(17,711	)	$	(8,930	)
Stock-based compensation		55,903			39,719
Acquisition-related expenses		4,621			161
Restructuring		—			1,389
Amortization of acquired intangible assets		5,864			4,669
Non-GAAP income from operations	$	48,677		$	37,008
Operating margin	(7		)%	(4		)%
Non-GAAP operating margin		20	%		17	%

Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ended March 31,
(in thousands, except per share data)	2025			2024
Net loss	$	(22,935	)	$	(14,386	)
Stock-based compensation		55,903			39,719
Tax impact of stock-based compensation⁽¹⁾		855			(1,077	)
Acquisition-related expenses⁽²⁾		4,621			161
Restructuring⁽²⁾		—			1,389
Amortization of acquired intangible assets⁽²⁾		5,864			4,669
Tax impact of acquisitions		(58	)		(35	)
Non-GAAP net income	$	44,250		$	30,440

Net loss per share, diluted	$	(0.19	)	$	(0.12	)
Stock-based compensation		0.46			0.34
Tax impact of stock-based compensation⁽¹⁾		0.01			(0.01	)
Acquisition-related expenses⁽²⁾		0.04			—
Restructuring⁽²⁾		—			0.01
Amortization of acquired intangible assets⁽²⁾		0.05			0.04
Tax impact of acquisitions		—			—
Adjustment to diluted earnings per share⁽³⁾		(0.01	)		(0.01	)
Non-GAAP earnings per share, diluted	$	0.36		$	0.25

Weighted-average shares used to compute GAAP net loss per share, diluted		120,083			117,542

Weighted-average shares used to compute non-GAAP earnings per share, diluted		124,152			123,266

________________

(1) The tax impact of stock-based compensation is based on the tax treatment for the applicable tax jurisdictions.
(2) The tax impact of acquisition-related expenses, restructuring and the amortization of acquired intangible assets are not material.
(3) An adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Non-GAAP Gross Profit and Non-GAAP Gross Margin	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Gross profit	$	186,677		$	167,029
Stock-based compensation		3,315			2,982
Amortization of acquired intangible assets		5,864			4,669
Non-GAAP gross profit	$	195,856		$	174,680
Gross margin		78	%		77	%
Non-GAAP gross margin		82	%		81	%

Non-GAAP Sales and Marketing Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Sales and marketing expense	$	103,182		$	99,825
Less: Stock-based compensation		16,630			15,300
Less: Acquisition-related expenses		1,054			—
Non-GAAP sales and marketing expense	$	85,498		$	84,525
Non-GAAP sales and marketing expense % of revenue		36	%		39	%

Non-GAAP Research and Development Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
Research and development expense	$	53,223		$	43,727
Less: Stock-based compensation		12,967			11,161
Less: Acquisition-related expenses		1,239			(20	)
Non-GAAP research and development expense	$	39,017		$	32,586
Non-GAAP research and development expense % of revenue		16	%		15	%

Non-GAAP General and Administrative Expense	Three Months Ended March 31,
(dollars in thousands)	2025			2024
General and administrative expense	$	47,983		$	31,018
Less: Stock-based compensation		22,991			10,276
Less: Acquisition-related expenses		2,328			181
Non-GAAP general and administrative expense	$	22,664		$	20,561
Non-GAAP general and administrative expense % of revenue		9	%		10	%

The following adjustments to reconcile forecasted non-GAAP income from operations, non-GAAP net income, non-GAAP earnings per share, free cash flow and unlevered free cash flow are subject to a number of uncertainties and assumptions, each of which are inherently difficult to forecast. As a result, actual adjustments and GAAP results may differ materially.

Forecasted Non-GAAP Income from Operations	Three Months Ending June 30, 2025						Year Ending December 31, 2025
(in millions)	Low			High			Low			High
Forecasted loss from operations	$	(12.0	)	$	(10.0	)	$	(22.0	)	$	(12.0	)
Forecasted stock-based compensation		47.0			47.0			196.0			196.0
Forecasted acquisition-related expenses		1.5			1.5			6.0			6.0
Forecasted amortization of acquired intangible assets		6.5			6.5			25.0			25.0
Forecasted non-GAAP income from operations	$	43.0		$	45.0		$	205.0		$	215.0

Forecasted Non-GAAP Net Income and Non-GAAP Earnings Per Share	Three Months Ending June 30, 2025						Year Ending December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Forecasted net loss⁽¹⁾	$	(20.0	)	$	(18.0	)	$	(53.0	)	$	(43.0	)
Forecasted stock-based compensation		47.0			47.0			196.0			196.0
Forecasted tax impact of stock-based compensation		1.0			1.0			4.0			4.0
Forecasted acquisition-related expenses		1.5			1.5			6.0			6.0
Forecasted amortization of acquired intangible assets		6.5			6.5			25.0			25.0
Forecasted non-GAAP net income	$	36.0		$	38.0		$	178.0		$	188.0

Forecasted net loss per share, diluted⁽¹⁾	$	(0.16	)	$	(0.15	)	$	(0.44	)	$	(0.36	)
Forecasted stock-based compensation		0.39			0.39			1.62			1.62
Forecasted tax impact of stock-based compensation		0.01			0.01			0.03			0.03
Forecasted acquisition-related expenses		0.01			0.01			0.05			0.05
Forecasted amortization of acquired intangible assets		0.05			0.05			0.21			0.21
Adjustment to diluted earnings per share⁽²⁾		(0.01	)		—			(0.03	)		(0.03	)
Forecasted non-GAAP earnings per share, diluted	$	0.29		$	0.31		$	1.44		$	1.52

Forecasted weighted-average shares used to compute GAAP net loss per share, diluted		121.5			121.5			121.0			121.0
Forecasted weighted-average shares used to compute non-GAAP earnings per share, diluted		123.0			123.0			123.5			123.5

________________
(1) The forecasted GAAP net loss assumes income tax expense of $4.1 million and $16.8 million in the three months ending June 30, 2025 and year ending December 31, 2025, respectively.
(2) Adjustment to reconcile GAAP net loss per share, which excludes potentially dilutive shares, to non-GAAP earnings per share, which includes potentially dilutive shares.

Forecasted Free Cash Flow and Unlevered Free Cash Flow	Year Ending December 31, 2025
(in millions)	Low			High
Forecasted net cash provided by operating activities	$	256.0		$	266.0
Forecasted purchases of property and equipment		(15.0	)		(15.0	)
Forecasted capitalized software development costs		(3.0	)		(3.0	)
Forecasted free cash flow		238.0			248.0
Forecasted cash paid for interest and other financing costs		27.0			27.0
Forecasted unlevered free cash flow	$	265.0		$	275.0

The MIL Network –

April 30, 2025

MIL-OSI: 2025 first-quarter results

Source: GlobeNewswire (MIL-OSI)

Paris (France), April 29, 2025

A SOLID START TO THE YEAR, WITH SUCCESSFUL REFINANCING
AND VESSEL CAPACITY AGREEMENT TERMINATED

		Q1¹
*Revenue*²		*$301M (+10%)*
*Adjusted EBITDA*²		*$143M (+35%)*
*Net Cash Flow*		*$(20)M (vs $30M)* Including a $42M interest payment in March 2025 (historically paid in Q2)

Sophie Zurquiyah, Chief Executive Officer of Viridien:

“The first quarter of 2025 was marked by two significant milestones for the Group: the termination of the vessel capacity agreement, completing our transition toward an asset-light model, and the successful refinancing of our bonds. The end of the vessel capacity agreement opens a new chapter of enhanced flexibility in our cost base and stronger cash generation, while our bond refinancing reflects the financial market’s confidence in the execution of our strategy and our long-term potential.

In parallel, our financial results for the first quarter of 2025 confirm the robust performance of our business, with commercial wins, solid profitability, and cash generation fully aligned with our long-term ambitions.

Assuming moderate fluctuations in the oil market, we expect to achieve our target of approximately $100M in Net Cash Flow generation for the year and to continue our deleveraging journey.”

Q1 2025 Highlights²

Group
- IFRS Revenue, EBITDA and Net Income of respectively $258 million, $99 million, $(28) million
- Group revenue increased thanks to sustained momentum in Geoscience and successful Earth Data sales. Sensing & Monitoring comparison base returned to a more normalized level

Group Adjusted EBITDA of $143 million, up 35%, benefited from (i) revenue growth at Geoscience, (ii) revenue growth and the end of vessel commitment penalty fees at Earth Data, and (iii) cost reductions at Sensing & Monitoring
Cash flow of $22 million before the $42 million bond interest payment in Q1 (historically paid in Q2). Net Cash Flow of $(20) million after interest payment and negative working capital impact
Final milestones of our financial roadmap achieved: successful refinancing of our April 2027 $447 million and €578 million notes, replaced with $450 million 10% and €475 million 8.5% senior secured notes due October 2030
Net debt at $974 million and liquidity at $257 million

Digital, Data and Energy Transition (DDE)
- Revenue at $214 million, up 16% with growth both at Geoscience (+25%) and Earth Data (+7%)
- Adjusted EBITDA at $137 million, up 32%
  - Geoscience:
    - Revenue at $110 million (+25%)
    - Solid performance driven by continued adoption of our most advanced Elastic FWI technologies worldwide
    - North America outperforming and sustained interest of MENA clients for high-quality imaging
    - Low Carbon: minerals study in Saudi Arabia and new win for carbon sequestration in the North Sea
    - HPC & Digital: new HPC customers in Materials Science and Image Rendering operating on our platform
  - Earth Data:
    - Revenue at $104 million (+7%)
    - Cash EBITDA at $39 million (+12%)
    - Early results show game-changing imaging at Laconia and environmental permit received for a program in Brazil. Active on multiple reprocessing projects worldwide
    - Low Carbon: CCUS screening package projects funded by industrial emitters in Europe
Sensing and Monitoring (SMO)
- Revenue at $87 million, nearly stable (-2%), with a return to a more normalized comparison base
- Adjusted EBITDA at $14 million (+37%), driven by cost reduction impact on profitability
  - Sustained activities in Land with strong momentum on nodal systems
  - New Businesses: new infrastructure monitoring contracts signed in North America; pursuing several geotechnical monitoring opportunities in rail and mining sectors worldwide; awarded a new project for our Marlin Ports & Logistics solution in Asia
Full-Year 2025 financial outlook
- In 2025, assuming a stable E&P Capex environment, performance is expected to be driven by:
  - Geoscience: growth supported by industry-leading technology and strong backlog

Earth Data: stronger Cash EBITDA KPI following the end of vessel commitment penalty fees
- Sensing & Monitoring: further savings expected from the restructuring plan
- New Businesses: growth and first- year positive contribution to Group profitability

Financial objective:
- Net Cash Flow of approximately $100 million, assuming moderate oil market fluctuations

Following the successful refinancing completed in Q1, Viridien will continue focusing on cash flow generation and deleveraging

Q1 2025 Conference call
- The press release and presentation will be available on our website www.viridiengroup.com at 5:45 p.m. (CET)
- An English-language analysts’ conference call is scheduled today at 6:00 p.m. (CET)
- Participants should register for the call here to receive a dial-in number and access code, or participate via the live webcast here
- A replay of the conference call will be available the following day for a period of 12 months in audio format on the Company’s website

The Board of Directors met on April 29, 2025, and closed the consolidated financial statements as of
March 31, 2025. Please note that the figures and information published in this press release have not been audited nor have they been subject to any limited review by Viridien’s statutory auditors.

About Viridien:

Viridien (www.viridiengroup.com) is an advanced technology, digital and Earth data company that pushes the boundaries of science for a more prosperous and sustainable future. With our ingenuity, drive and deep curiosity we discover new insights, innovations, and solutions that efficiently and responsibly resolve complex natural resources, digital, energy transition and infrastructure challenges. Viridien employs around 3,400 people worldwide and is listed as VIRI on the Euronext Paris SA (ISIN: FR001400PVN6).

Investors contact:

VP Investor Relations and Corporate Finance
Alexandre Leroy
alexandre.leroy@viridiengroup.com
+33 6 85 18 44 31

Q1 2025 – Financial Results

Key Segment P&L figures ⁽¹⁾ (in millions of $)	2024	2025	*Var.* %
Key Segment P&L figures ⁽¹⁾ (in millions of $)	Q1	Q1	*Var.* %
Exchange rate euro/dollar	1.09	1.04	(5%)
Segment revenue	273	301	*10%*
DDE	185	214	16%
Geoscience	88	110	25%
Earth Data	97	104	7%
SMO	89	87	(2%)
Land	45	51	14%
Marine	34	25	(26%)
Beyond the core	11	11	4%
Segment EBITDAs	105	142	*36%*
Adjusted ⁽²⁾Segment EBITDAS	106	143	*35%*
DDE	104	137	32%
SMO	10	14	37%
Corporate and other	(8)	(8)	-1%
Segment operating income	28	65	*136%*
Adjusted ⁽²⁾Segment operating income	29	66	*130%*
DDE	35	66	87%
SMO	2	8	303%
Corporate and other	(9)	(9)	-1%
1) Unaudited figures 2) Adjusted for non-recurring charges and gains

Other KPI ⁽¹⁾ (in millions of $)	2024	2025	*Var.* %
Other KPI ⁽¹⁾ (in millions of $)	Q1	Q1	*Var.* %
Geoscience Backlog	227	329	*45%*
Total Capex	58	61	5%
EDA Library net book value ⁽²⁾	471	489	4%
Liquidity	440	257	*-42%*
o.w. undrawn RCF	90	110 ⁽³⁾	22%
Gross debt ⁽²⁾	1 316	1 120	*-15%*
o.w. accrued interests	43	2	-96%
o.w. lease liabilities	108	124	15%
Net debt ⁽²⁾	966	974	1%
1) Unaudited figures 2) Post IFRS15 and 16 3) $125M RCF fully undrawn, o/w. $15M ancillary guarantee facility

Consolidated IFRS Income Statements ⁽¹⁾ (in millions of $)	2024	2025	*Var.* %
	Q1	Q1	*Var.* %
Exchange rate euro/dollar	1.09	1.04	(5%)
Revenue	249	258	4%
EBITDA	80	99	*24%*
Operating Income	20	56	*185%*
Equity from Investment	(0)	(0)	2%
Net cost of financial debt	(24)	(26)	6%
Other financial income (loss)	0	(46)	–
Income taxes	2	(13)	–
Net Income / Loss from continuing operations	(3)	(29)	–
Net Income / Loss from discontinued operations	0	1	–
Net Income / (Loss)	(3)	(28)	–
Shareholder’s net income / (loss)	(3)	(28)	–
Basic Earnings per share in $	(0.42)	(3.88)	–
Basic Earnings per share in €	(0.38)	(3.74)	–

1) Unaudited figures

Cash Flow items ⁽¹⁾ (in millions of $)	2024	2025	*Var.* %
Cash Flow items ⁽¹⁾ (in millions of $)	Q1	Q1	*Var.* %
Segment EBITDA	105	142	*36%*
Income Tax Paid	(3)	(4)	(26%)
Change in Working Capital & Provisions	(0)	(47)	–
Other Cash Items	(1)	(1)	13%
Cash provided by Operating Activity	102	91	*(9%)*
Total Capex	(58)	(61)	(5%)
Acquisitions and Proceeds of Assets	0	(1)	–
Cash from Investing Activity	(58)	(62)	*(7%)*
Paid Cost of Debt	2	(39)	–
Lease Repayment	(12)	(10)	17%
Cash from Financing Activity	(10)	(49)	–
Discontinued Operations Acquisitions	(3)	(0)	89%
Net Cash Flow	30	(20)	–
Financing cash flow	(3)	(129)	–
Forex and other	(4)	(6)	–
Net increase/(decrease) in cash	23	(155)	–

1) Unaudited figures

CONSOLIDATED FINANCIAL STATEMENTS – March 31, 2025

Unaudited Interim Consolidated statement of operations

		Three months ended March 31,
(In millions of US$, except per share data)	Notes	2025	2024
Operating revenues		257.5	248.6
Other income from ordinary activities		0.1	0.1
Total income from ordinary activities		257.6	248.7
Cost of operations		(171.0)	(192.8)
Gross profit		86.6	55.9
Research and development expenses – net		(4.0)	(4.9)
Marketing and selling expenses		(7.7)	(8.8)
General and administrative expenses		(18.1)	(21.3)
Other revenues (expenses) – net	5	(0.3)	(1.1)
Operating income (loss)		56.4	19.8
Cost of financial debt – gross		(27.4)	(27.4)
Income provided by cash and cash equivalents		1.6	3.1
Cost of financial debt, net		(25.8)	(24.3)
Other financial income (loss)	6	(46.2)	(0.0)
Income (loss) before incomes taxes and share of income (loss) from companies accounted for under the equity method		(15.5)	(4.5)
Income taxes		(12.9)	2.1
Net income (loss) before share of income (loss) from companies accounted for under the equity method		(28.4)	(2.4)
Net income (loss) from companies accounted for under the equity method		(0.2)	(0.2)
Net income (loss) from continuing operations		(28.6)	(2.6)
Net income (loss) from discontinued operations		0.7	0.0
Consolidated net income (loss)		(28.0)	(2.6)
Attributable to:
Owners of Viridien S.A.	$	(27.8)	(3.0)
Non-controlling interests	$	(0.2)	0.4
Net income (loss) per share
Basic (a)	$	(3.88)	(0.42)
Diluted (a)	$	(3.88)	(0.42)
Net income (loss) from continuing operations per share
Basic (a)	$	(3.97)	(0.42)
Diluted (a)	$	(3.97)	(0.42)
Net income (loss) from discontinued operations per share ^(a)
Basic (a)	$	0.09	(0.00)
Diluted (a)	$	0.09	(0.00)

(a) As a result of the July 31, 2024 reverse share split, the calculation of basic and diluted earnings per share for 2023 has been adjusted retrospectively. The number of ordinary shares outstanding has been adjusted to reflect the proportionate change in the number of shares

See the notes to the Unaudited Interim Consolidated Financial Statements

Unaudited Interim Consolidated statement of comprehensive income (loss)

		Three months ended March 31,
(In millions of US$)	Notes	2025 ^(a)	2024 ^(a)
Net income (loss) from statements of operations		(28.0)	(2.6)
Net gain (loss) on cash flow hedges		(0.3)	0.3
Variation in translation adjustments		9.9	(5.8)
Net other comprehensive income (loss) to be reclassified in profit (loss) in subsequent period (1)		9.6	(5.5)
Net gain (loss) on actuarial changes on pension plan		(0.5)	0.0
Net other comprehensive income (loss) not to be reclassified in profit (loss) in subsequent period (2)		(0.5)	0.0
Total other comprehensive income (loss) for the period, net of taxes (1) + (2)		9.1	(5.5)
Total comprehensive income (loss) for the period		(18.9)	(8.1)
Attributable to:
Owners of Viridien S.A.		(18.8)	(8.4)
Non-controlling interests		(0.1)	0.3

(a) Including other comprehensive income related to discontinued operations which is not material

Unaudited Interim Consolidated statement of financial position

(In millions of US$)	Notes	March 31, 2025	December 31, 2024
ASSETS
Cash and cash equivalents		146.6	301,7
Trade accounts and notes receivable, net		343.7	339,9
Inventories and work-in-progress, net		162.4	163,3
Income tax assets		13.5	22,9
Other current assets, net		78.1	74,0
Assets held for sale, net		26.4	24,5
Total current assets		770.7	926,2
Deferred tax assets		39.5	43,6
Other non-current assets, net		8.6	8,9
Investments and other financial assets, net		24.2	25,7
Investments in companies under the equity method		5.9	1,1
Property, plant and equipment, net		212.1	220,6
Intangible assets, net		569.3	535,4
Goodwill, net		1,086.4	1,082,8
Total non-current assets		1,946.0	1,918,1
TOTAL ASSETS		2,716.7	2,844,3
LIABILITIES AND EQUITY
Financial debt – current portion	3	43.8	56,9
Trade accounts and notes payables		101.3	120,9
Accrued payroll costs		92.4	84,5
Income taxes payable		17.8	20,4
Advance billings to customers		18.1	19,2
Provisions — current portion		18.8	19,7
Other current financial liabilities		0.0	0,5
Other current liabilities		207.7	182,5
Liabilities associated with non-current assets held for sale		2.2	2,4
Total current liabilities		502.1	507,0
Deferred tax liabilities		18.4	18,4
Provisions — non-current portion		30.9	28,8
Financial debt – non-current portion	3	1,076.4	1,165,6
Other non-current financial liabilities		0.0	0,0
Other non-current liabilities		1.8	1,7
Total non-current liabilities		1,127.5	1,214,5
Common stock: 11,214,681 shares authorized and 7,161,465 shares with a €1.00 nominal value outstanding at March 31, 2025		8.7	8,7
Additional paid-in capital		118.7	118,7
Retained earnings		1,009.0	1,036,5
Other Reserves		37.5	55,2
Treasury shares		(20.1)	(20,1)
Cumulative income and expense recognized directly in equity		(1.4)	(1,1)
Cumulative translation adjustment		(103.3)	(113,3)
Equity attributable to owners of Viridien S.A.		1,049.2	1,084,7
Non-controlling interests		38.0	38,1
Total equity		1,087.2	1,122,8
TOTAL LIABILITIES AND EQUITY		2,716.7	2,844,3

See the notes to the Unaudited Interim Consolidated Financial Statements

Unaudited Interim Consolidated statement of cash flows

		Three months ended March 31,
(In millions of US$)	Notes	2025	2024
OPERATING ACTIVITIES
Consolidated net income (loss)		(28.0)	(2.6)
Less: Net income (loss) from discontinued operations		(0.7)	(0.0)
Net income (loss) from continuing operations		(28.6)	(2.6)
Depreciation, amortization and impairment		21.2	24.2
Impairment and amortization of Earth Data Surveys		24.3	39.0
Depreciation and amortization of Earth Data surveys, capitalized		(4.2)	(3.8)
Variance on provisions		(0.7)	0.3
Share-based compensation expenses		1.1	0.9
Net (gain) loss on disposal of fixed and financial assets		0.1	–
Share of (income) loss in companies recognized under equity method		0.2	0.2
Other non-cash items		30.9	1.2
Net cash-flow including net cost of financial debt and income tax		44.3	59.4
Less: Cost of financial debt		25.8	24.3
Less: Income tax expense (gain)		12.9	(2.1)
Net cash-flow excluding net cost of financial debt and income tax		83.0	81.6
Income tax paid		(4.1)	(3.2)
Net cash-flow before changes in working capital		78.9	78.4
Changes in working capital		11.6	22.3
– change in trade accounts and notes receivable		24.9	33.6
– change in inventories and work-in-progress		6.3	0.2
– change in other current assets		(0.2)	(2.1)
– change in trade accounts and notes payable		(19.8)	15.4
– change in other current liabilities		0.0	(24.8)
Net cash-flow from operating activities		90.5	100.7

INVESTING ACTIVITIES
Total capital expenditures (tangible and intangible assets) net of variation of fixed assets suppliers		(61.2)	(58.2)
Proceeds from disposals of tangible and intangible assets		0.0	0.5
Dividends received from investments in companies under the equity method		–	0.2
Total net proceeds from financial assets		–	–
Variation in other non-current financial assets		2.3	(3.3)
Net cash-flow from investing activities		(58.9)	(60.8)

		Three months ended March 31,
(In millions of US$)	Notes	2025	2024
FINANCING ACTIVITIES
Repayment of long-term debt		(1,074.2)	(0.2)
Total issuance of long-term debt		964.2	–
Call premium		(21.9)	–
Refinancing transaction costs paid		(11.7)	–
Lease repayments		(9.8)	(11.8)
Financial expenses paid		(38.8)	2.0
Dividends paid and share capital reimbursements:
— to owners of Viridien		–	–
— to non-controlling interests of integrated companies		–	–
Net cash-flow from financing activities		(192.2)	(10.0)

Effects of exchange rates on cash		6.0	(4.1)
Net cash flows incurred by discontinued operations		(0.3)	(2.9)
Net increase (decrease) in cash and cash equivalents		(155.0)	22.9
Cash and cash equivalents at beginning of year		301.7	327.0
Cash and cash equivalents at end of period		146.6	349.9

See the notes to the Interim Consolidated Financial Statements

Unaudited Interim Consolidated statements of changes in equity

Amounts in millions of US$, except share data	Number of Shares issued	Share capital	Additional paid-in capital	Retained earnings	Other reserves	Treasury shares	Income and expense recognized directly in equity	Cumulative translation adjustment	Equity attributable to owners of Viridien S.A.	Non-controlling interests	Total equity
Balance at January 1, 2024	7,136,763	8.7	118.7	980.4	27.3	(20.1)	(1.4)	(90.8)	1,022.8	41.5	1,064.3
Net gain (loss) on actuarial changes on pension plan (1)				0.0					0.0		0.0
Net gain (loss) on cash flow hedges (2)							0.3		0.3		0.3
Net gain (loss) on translation adjustments (3)								(5.7)	(5.7)	(0.1)	(5.8)
Other comprehensive income (1)+(2)+(3)	–	–	–	0.0	–	–	0.3	(5.7)	(5.4)	(0.1)	(5.5)
Net income (4)				(3.0)					(3.0)	0.4	(2.6)
Comprehensive income (1)+(2)+(3)+(4)	–	–	–	(3.0)	–	–	0.3	(5.7)	(8.4)	0.3	(8.1)
Exercise of warrants
Dividends									–		–
Cost of share-based payment				0.8					0.8		0.8
Variation in translation adjustments generated by the parent company					9.7				9.7		9.8
Balance at March 31, 2024	7,136,763⁽^a)	8.7	118.7	978.2	37.0	(20.1)	(1.1)	(96.5)	1,024.9	41.8	1,066.7

Amounts in millions of US$, except share data	Number of Shares issued	Share capital	Additional paid-in capital	Retained earnings	Other reserves	Treasury shares	Income and expense recognized directly in equity	Cumulative translation adjustment	Equity attributable to owners of Viridien S.A.	Non-controlling interests	Total equity
Balance at January 1, 2025	7,161,465⁽^b)	8.7	118.7	1,036.5	55.2	(20.1)	(1.1)	(113.3)	1,084.7	38.1	1,122.8
Net gain (loss) on actuarial changes on pension plan (1)				(0.5)					(0.5)		(0.5)
Net gain (loss) on cash flow hedges (2)							(0.3)		(0.3)		(0.3)
Net gain (loss) on translation adjustments (3)								9.9	9.9	0.0	9.9
Other comprehensive income (1)+(2)+(3)				(0.5)	–	–	(0.3)	9.9	9.0	0.0	9.1
Net income (loss) (4)				(27.8)					(27.8)	(0.2)	(28.0)
Comprehensive income (1)+(2)+(3)+(4)				(28.4)			(0.3)	9.9	(18.8)	(0.1)	(18.9)
Dividends									–	–	–
Cost of share-based payment				0.7					0.7		0.7
Variation in translation adjustments generated by the parent company					(17.7)				(17.7)		(17.7)
Changes in consolidation scope and other				0.2					0.2		0.2
Balance at March 31, 2025	7,161,465	8.7	118.7	1,009.0	37.5	(20.1)	(1.4)	(103.3)	1,049.2	38.0	1,087.2

(a) Pro forma following Reverse Share Split
(b) Reverse Share Split: Pursuant to a delegation from the Combined General Meeting of shareholders of May 15, 2024, and a sub-delegation from the Board of Directors held on the same day, the Company’s Chief Executive Officer has decided to implement a reverse share split on the basis of 1 new share of €1.00 nominal value for 100 old shares of €0.01 nominal value

¹All variations refer to the same period last year
²Unless otherwise stated, all figures and comments are referring to “Segment” (i.e. pre-IFRS 15), as defined in the 2024 Universal Registration Document’s glossary, under section 8.7

Attachment

Viridien – Q1 2025 results

The MIL Network –

April 30, 2025

MIL-OSI USA: Ciscomani, VA Secretary Collins Reiterate Support for Veterans during Tucson Visit

Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

“Our goal is to make sure veterans in Arizona and across the country get the best possible care we can provide”

TUCSON, AZ – U.S. Congressman Juan Ciscomani and Department of Veterans Affairs Secretary Doug Collins reiterated their shared commitment to care for the men and women who’ve served our country in uniform.

During a tour of Southern Arizona VA Health Care System in Tucson, both the Congressman and the Secretary strongly pushed back on false claims that mission-critical positions within the VA will be cut, causing possible disruptions in the delivery of care and benefits.

“Don’t believe the lies,” Ciscomani said. “No one is talking about cutting positions for anyone that provides direct care or benefits to veterans. No one is talking about eliminating services. Our goal is to make sure veterans in Arizona and across the country get the best possible care we can provide.”

The Secretary spent the morning with Ciscomani in Tucson, meeting with the Congressman’s Veterans Advisory Council, touring the Tucson VA and discussing services to veterans with hospital leadership.

“One of the things that I spend 50 percent of my time on is basically fighting back against inuendo and rumor about what’s going on at the VA by those who think they know what’s going on at the VA,” Secretary Collins said.

Ciscomani, a member of the House Veterans Affairs Committee, represents a district with nearly 80,000 veterans, one of the largest veteran populations of any Congressional district in the country. His Veterans Advisory Council includes community leaders like Sierra Vista Mayor Clea McCaa and Sahuarita Mayor Tom Murphy.

“It is my duty, and honor, to advocate on behalf of veterans to ensure their needs are prioritized by the federal government,” said Ciscomani. “I am incredibly grateful to Secretary Collins for his leadership, our shared commitment to veterans, and for taking the time to talk with those who served, tour VA facilities in Tucson, and counter false narratives about cuts to mission-critical employees, healthcare, and benefits. Secretary Collins is a fantastic partner. I look forward to continuing working together to modernize and improve the VA to deliver on our promise to our veterans.”

“Under President Trump’s leadership, VA is challenging the status quo to find new and better ways of serving America’s heroes,” said Secretary Collins. “As part of that effort, we’re visiting VA facilities in Tucson and across the nation to see what’s working and what needs improvement. We will reform the department to make it work better for America’s Veterans, families, caregivers and survivors, and we thank Rep. Ciscomani for his support.”

Veteran Advisory Council 

Ciscomani hosted a meeting of his Veteran Advisory Council with Secretary Collins where they reiterated that there are no plans to reduce access to healthcare or cut benefits at the VA. 

Tucson VA Medical Center Leadership

Ciscomani and Secretary Collins met with leadership at the Tucson VA Medical Center to discuss recruitment and retention initiatives and countered false claims that the VA was planning cuts to mission-critical positions within the agency.

Tour of the Tucson VA Medical Center

Ciscomani, Secretary Collins tour facilities in the Tucson VA Medical Center.

Background:

Last week, Ciscomani honored 31 veterans from across Arizona 6th Congressional District in his second annual Veterans Service Leadership Award Ceremony.
Through casework, Ciscomani’s team has returned $3.65 million to veteran-constituents, including $1.25 million since January 2025. 
So far in the 119th, Ciscomani has introduced three pieces of veterans-focused legislation, with one of these bills passing the House of Representatives unanimously.
- The Prioritizing Veterans’ Survivor Act (H.R. 1228)  would move the Office of Survivors Assistance (OSA) back within the Office of the VA Secretary to ensure that families of fallen veterans are able to receive the benefits and support they deserve. 
  - This bill passed the House of Representatives unanimously on April 9, 2025.  
- The Coordinating Care for Senior Veterans and Wounded Warriors Act (H.R. 668) would improve healthcare coordination and management for veterans over the age of 65 who qualify for benefits from both the VA and Medicare. 
- The Veterans Education and Technical Skills (VETS) Opportunity Act (H.R. 1458) would expand veterans’ access to educational opportunities for high-demand skilled trade and vocational programs, whether they are in-person or partially online.

###

MIL OSI USA News –

April 30, 2025

MIL-OSI: Coastal Financial Corporation Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

EVERETT, Wash., April 29, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank segment (“community bank”) with an industry leading banking as a service (“BaaS”) segment (“CCBX”), today reported unaudited financial results for the quarter ended March 31, 2025, including net income of $9.7 million, or $0.63 per diluted common share, compared to $13.4 million, or $0.94 per diluted common share, for the three months ended December 31, 2024 and $6.8 million, or $0.50 per diluted common share, for the three months ended March 31, 2024.

Management Discussion of the First Quarter Results

“First quarter of 2025 was impacted by elevated expenses related to the onboarding and implementation costs of several new partnerships and products within CCBX and investments in technology, however, we anticipate that the revenue and earnings from these investments will be highly valuable over the long-term,” stated CEO Eric Sprink. “We saw high quality deposit growth of $205.9 million during the first quarter, and our CCBX program fee income continued to increase, up 55.2% compared to the same period in 2024.”

Key Points for First Quarter and Our Go-Forward Strategy

Positive Growth Trends within CCBX Continue. As of March 31, 2025 we had two partners in testing, three in implementation/onboarding, one signed LOI and have an active pipeline of new partners and new products with existing partners for the balance of 2025 and into 2026. Total BaaS program fee income was $6.3 million for the three months ended March 31, 2025, an increase of $724,000, or 13.0%, from the three months ended December 31, 2024. We remain fully indemnified against fraud and 98.8% indemnified against credit risk with our CCBX partners as of March 31, 2025.

Investments for Growth Continues. Total noninterest expense of $72.0 million was up $4.6 million, or 6.8%, as compared to $67.4 million in the quarter ended December 31, 2024, mainly driven by higher salaries and employee benefits, legal and professional expenses and BaaS loan expense partially offset by lower BaaS fraud expense. As we increase the number of new CCBX partners and products with existing partners launching in 2025, we expect that expenses will tend to be front-loaded with a focus on compliance and operational risk before any new programs or products generate significant revenues. We remain focused on building our future revenue sources.

Strong Deposit Growth, Off Balance Sheet Activity Update. Total deposits of $3.79 billion, an increase of $205.9 million, or 5.7%, over the quarter ended December 31, 2024, driven primarily by growth in CCBX partner programs. On April 1, 2025 we launched the T-Mobile deposit program and those deposits will be reflected in the second quarter deposit totals. During the first quarter of 2025, we sold $744.6 million of loans, the majority of which were credit card receivables. We retain a portion of the fee income on sold credit card loans. As of March 31, 2025 there were 237,024 credit cards with fee earning potential, an increase of 54,575 compared to the quarter ended December 31, 2024 and an increase of 210,723 from March 31, 2024.

First Quarter 2025 Financial Highlights

The tables below outline some of our key operating metrics.

	Three Months Ended
(Dollars in thousands, except share and per share data; unaudited)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Income Statement Data:
Interest and dividend income	$	104,907		$	102,448		$	105,165		$	97,422		$	91,742
Interest expense		28,845			30,071			32,892			31,250			29,536
Net interest income		76,062			72,377			72,273			66,172			62,206
Provision for credit losses		55,781			61,867			70,257			62,325			83,158
Net interest (expense)/ income after provision for credit losses		20,281			10,510			2,016			3,847			(20,952	)
Noninterest income		63,477			74,100			78,790			69,138			86,176
Noninterest expense		71,989			67,411			64,424			57,964			56,509
Provision for income tax		2,039			3,832			2,926			3,425			1,915
Net income		9,730			13,367			13,456			11,596			6,800

	As of and for the Three Month Period
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Balance Sheet Data:
Cash and cash equivalents	$	624,302		$	452,513		$	484,026		$	487,245		$	515,128
Investment securities		46,991			47,321			48,620			49,213			50,090
Loans held for sale		42,132			20,600			7,565			—			797
Loans receivable		3,517,359			3,486,565			3,413,894			3,321,813			3,195,101
Allowance for credit losses		(183,178	)		(176,994	)		(171,674	)		(148,878	)		(139,941	)
Total assets		4,339,282			4,121,208			4,064,472			3,959,549			3,863,062
Interest bearing deposits		3,251,599			3,057,808			3,047,861			2,949,643			2,888,867
Noninterest bearing deposits		539,630			527,524			579,427			593,789			574,112
Core deposits ⁽¹⁾		3,321,772			3,123,434			3,190,869			3,528,339			3,447,864
Total deposits		3,791,229			3,585,332			3,627,288			3,543,432			3,462,979
Total borrowings		47,923			47,884			47,847			47,810			47,771
Total shareholders’ equity		449,917			438,704			331,930			316,693			303,709

Share and Per Share Data ⁽²⁾:
Earnings per share – basic	$	0.65		$	0.97		$	1.00		$	0.86		$	0.51
Earnings per share – diluted	$	0.63		$	0.94		$	0.97		$	0.84		$	0.50
Dividends per share		—			—			—			—			—
Book value per share ⁽³⁾	$	29.98		$	29.37		$	24.51		$	23.54		$	22.65
Tangible book value per share ⁽⁴⁾	$	29.98		$	29.37		$	24.51		$	23.54		$	22.65
Weighted avg outstanding shares – basic		14,962,507			13,828,605			13,447,066			13,412,667			13,340,997
Weighted avg outstanding shares – diluted		15,462,041			14,268,229			13,822,270			13,736,508			13,676,917
Shares outstanding at end of period		15,009,225			14,935,298			13,543,282			13,453,805			13,407,320
Stock options outstanding at end of period		163,932			186,354			198,370			286,119			309,069

See footnotes that follow the tables below

	As of and for the Three Month Period
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Credit Quality Data:
Nonperforming assets ⁽⁵⁾ to total assets		1.30	%		1.52	%		1.63	%		1.34	%		1.42	%
Nonperforming assets ⁽⁵⁾ to loans receivable and OREO		1.60	%		1.80	%		1.94	%		1.60	%		1.72	%
Nonperforming loans ⁽⁵⁾ to total loans receivable		1.60	%		1.80	%		1.94	%		1.60	%		1.72	%
Allowance for credit losses to nonperforming loans		325.0	%		282.5	%		257.2	%		278.6	%		254.3	%
Allowance for credit losses to total loans receivable		5.21	%		5.08	%		5.03	%		4.45	%		4.35	%
Gross charge-offs	$	53,686		$	61,585		$	53,305		$	55,207		$	58,994
Gross recoveries	$	5,486		$	5,223		$	4,516		$	2,254		$	2,036
Net charge-offs to average loans ⁽⁶⁾		5.57	%		6.56	%		5.60	%		6.54	%		7.30	%

Capital Ratios:
Company
Tier 1 leverage capital		10.67	%		10.78	%		8.40	%		8.31	%		8.24	%
Common equity Tier 1 risk-based capital		12.13	%		12.04	%		9.24	%		9.03	%		8.98	%
Tier 1 risk-based capital		12.22	%		12.14	%		9.34	%		9.13	%		9.08	%
Total risk-based capital		14.73	%		14.67	%		11.89	%		11.70	%		11.70	%
Bank
Tier 1 leverage capital		10.57	%		10.64	%		9.29	%		9.24	%		9.19	%
Common equity Tier 1 risk-based capital		12.12	%		11.99	%		10.34	%		10.15	%		10.14	%
Tier 1 risk-based capital		12.12	%		11.99	%		10.34	%		10.15	%		10.14	%
Total risk-based capital		13.42	%		13.28	%		11.63	%		11.44	%		11.43	%

⁽¹⁾	Core deposits are defined as all deposits excluding brokered and time deposits.
⁽²⁾	Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
⁽³⁾	We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
⁽⁴⁾	Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
⁽⁵⁾	Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
⁽⁶⁾	Annualized calculations.

Key Performance Ratios

Return on average assets (“ROA”) was 0.93% for the quarter ended March 31, 2025 compared to 1.30% and 0.73% for the quarters ended December 31, 2024 and March 31, 2024, respectively. ROA for the quarter ended March 31, 2025, decreased 0.37% and increased 0.19% compared to December 31, 2024 and March 31, 2024, respectively. Noninterest expenses were higher for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 largely due to higher salaries and employee benefits, due to annual pay increases and for new hires that contribute to our continued investments in growth, technology and risk management, legal and professional expenses and increased BaaS loan expense, which is directly related to interest earned on CCBX loans. These increases were partially offset by a decrease in BaaS fraud expense. Noninterest expenses were higher than the quarter ended March 31, 2024 due primarily to an increase in salaries and employee benefits, data processing and software licenses and legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management.

Legal and professional fees in first quarter were elevated in multiple areas including compliance, BSA, audit, legal and projects as we prepare for new partners, and we may experience a similar level of expenses again in second quarter before returning to a more historical level in third quarter 2025.

Yield on earning assets and yield on loans receivable increased 0.07% and 0.23%, respectively, for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. Average loans receivable as of March 31, 2025 increased $92.2 million compared to December 31, 2024 as net CCBX loans continue to grow, despite selling $744.6 million in CCBX loans during the quarter ended March 31, 2025.

The following table shows the Company’s key performance ratios for the periods indicated.

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

Return on average assets ⁽¹⁾		0.93	%		1.30	%		1.34	%		1.21	%		0.73	%
Return on average equity ⁽¹⁾		8.91	%		14.90	%		16.67	%		15.22	%		9.21	%
Yield on earnings assets ⁽¹⁾		10.32	%		10.24	%		10.79	%		10.49	%		10.21	%
Yield on loans receivable ⁽¹⁾		11.33	%		11.12	%		11.44	%		11.22	%		11.01	%
Cost of funds ⁽¹⁾		3.11	%		3.24	%		3.62	%		3.60	%		3.52	%
Cost of deposits ⁽¹⁾		3.08	%		3.21	%		3.59	%		3.58	%		3.49	%
Net interest margin ⁽¹⁾		7.48	%		7.23	%		7.42	%		7.12	%		6.92	%
Noninterest expense to average assets ⁽¹⁾		6.87	%		6.54	%		6.42	%		6.05	%		6.10	%
Noninterest income to average assets ⁽¹⁾		6.06	%		7.19	%		7.85	%		7.22	%		9.30	%
Efficiency ratio		51.59	%		46.02	%		42.65	%		42.84	%		38.08	%
Loans receivable to deposits ⁽²⁾		93.89	%		97.82	%		94.33	%		93.75	%		92.29	%

⁽¹⁾	Annualized calculations shown for quarterly periods presented.
⁽²⁾	Includes loans held for sale.

Management Outlook; CEO Eric Sprink

“Looking ahead to the balance of 2025, elevated onboarding activity is expected to continue into the second quarter as our CCBX pipeline remains very robust with high quality and potentially impactful opportunities. We plan to continue to invest in and enhance our technology and risk management infrastructure to support our next phase of CCBX growth. Our risk reduction efforts, namely our fraud and credit indemnifications via our partners, continued to function as expected despite the volatile macroeconomics conditions towards the end of first quarter. These efforts, plus additional growth in noninterest income should help mitigate the uncertainties associated with fluctuating interest rates and provide a stable, recurring income source.” said CEO Eric Sprink.

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank, which consists of three segments: CCBX, the community bank and treasury & administration. The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 25 relationships, at varying stages, including two partners in testing, three in implementation/onboarding, one signed LOI as of March 31, 2025. We continue to refine the criteria for CCBX partnerships, exploring relationships with larger more established partners, with experienced management teams, existing customer bases and strong financial positions. We also will consider promising medium and smaller sized partners that align with our approach and terms including financial wherewithal and will continue to exit relationships where it makes sense for us to do so.

While we explore relationships with new partners we continue to expand our product offerings with existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners allows us to expand and grow our customer base with a modest increase in regulatory risk given our operational history with them. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect this trend to continue as current products grow and new products are introduced . We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card balances, and will continue this strategy to provide an on-going and passive revenue source with no on balance sheet risk or capital requirement.

On April 1, 2025, we went live with the T-Mobile deposit program and our second quarter deposits will include those balances. As we build our deposit base, we will be able to sweep deposits off and on the balance sheet as needed. This deposit sweep capability allows us to better manage liquidity and deposit programs. At March 31, 2025 we swept off $406.3 million in deposits for FDIC insurance and liquidity purposes. We are also launching a new suite of deposit products with RobinHood, which are expected to launch in the back half of 2025. The introduction of theses products are expected to increase deposits.

The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

	As of
(unaudited)	March 31, 2025	December 31, 2024	March 31, 2024
Active	19	19	19
Friends and family / testing	2	1	1
Implementation / onboarding	3	1	1
Signed letters of intent	1	3	0
Total CCBX relationships	25	24	21

CCBX loans increased $47.2 million, or 2.9%, to $1.65 billion despite selling $744.6 million in loans during the three months ended March 31, 2025. In accordance with the program agreement for one partner, effective April 1, 2024, the portion of the CCBX portfolio that we are responsible for losses on decreased from 10% to 5%. At March 31, 2025 the portion of this portfolio for which we are responsible represented $19.9 million in loans.

The following table details the CCBX loan portfolio:

CCBX	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Commercial and industrial loans:
Capital call lines	$	133,466			8.1	%	$	109,017			6.8	%	$	135,671			10.3	%
All other commercial & industrial loans		29,702			1.8			33,961			2.1			47,160			3.6
Real estate loans:
Residential real estate loans		285,355			17.3			267,707			16.7			265,148			20.2
Consumer and other loans:
Credit cards		532,775			32.2			528,554			33.0			505,706			38.6
Other consumer and other loans		670,026			40.6			664,780			41.4			358,528			27.3
Gross CCBX loans receivable		1,651,324			100.0	%		1,604,019			100.0	%		1,312,213			100.0	%
Net deferred origination (fees) costs		(498	)					(442	)					(394	)
Loans receivable	$	1,650,826					$	1,603,577					$	1,311,819
Loan Yield – CCBX ⁽¹⁾⁽²⁾		16.88	%					16.81	%					17.74	%

⁽¹⁾	CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾	Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

The increase in CCBX loans in the quarter ended March 31, 2025, includes an increase of $24.4 million, or 22.4%, in capital call lines as a result of normal balance fluctuations and business activities, an increase of $17.6 million, or 6.6%, in residential real estate loans and an increase of $9.5 million or 0.8%, in other consumer and other loans. We continue to monitor and manage the CCBX loan portfolio, and sold $744.6 million in CCBX loans during the quarter ended March 31, 2025 compared to sales of $845.5 million in the quarter ended December 31, 2024. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio earnings and generate off balance sheet fee income. CCBX loan yield increased 0.07% for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024.

The following chart shows the growth in credit card accounts that generate fee income. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, and that generate fee income.

The following table details the CCBX deposit portfolio:

CCBX	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Demand, noninterest bearing	$	58,416			2.6	%	$	55,686			2.7	%	$	58,669			2.9	%
Interest bearing demand and money market		2,145,608			94.6			1,958,459			94.9			1,964,942			96.8
Savings		16,625			0.7			5,710			0.3			5,338			0.3
Total core deposits		2,220,649			97.9			2,019,855			97.9			2,028,949			100.0
Other deposits		46,359			2.1			44,233			2.1			—			—
Total CCBX deposits	$	2,267,008			100.0	%	$	2,064,088			100.0	%	$	2,028,949			100.0	%
Cost of deposits ⁽¹⁾		4.01	%					4.19	%					4.93	%

⁽¹⁾	Cost of deposits is annualized for the three months ended for each period presented.

CCBX deposits increased $202.9 million, or 9.8%, in the three months ended March 31, 2025 to $2.27 billion as a result of growth and normal balance fluctuations. This excludes the $406.3 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $273.2 million for the quarter ended December 31, 2024. Amounts in excess of FDIC insurance coverage are transferred, using a third-party facilitator/vendor sweep product, to participating financial institutions.

Community Bank Performance Update

In the quarter ended March 31, 2025, the community bank saw net loans decrease $16.5 million, or 0.9%, to $1.87 billion, as a result of normal balance fluctuations.

The following table details the Community Bank loan portfolio:

Community Bank	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Commercial and industrial loans	$	149,104			8.0	%	$	150,395			8.0	%	$	154,395			8.2	%
Real estate loans:
Construction, land and land development loans		166,551			8.9			148,198			7.8			160,862			8.5
Residential real estate loans		202,920			10.8			202,064			10.7			231,157			12.2
Commercial real estate loans		1,340,647			71.6			1,374,801			72.8			1,342,489			71.0
Consumer and other loans:
Other consumer and other loans		13,326			0.7			13,542			0.7			1,447			0.1
Gross Community Bank loans receivable		1,872,548			100.0	%		1,889,000			100.0	%		1,890,350			100.0	%
Net deferred origination fees		(6,015	)					(6,012	)					(7,068	)
Loans receivable	$	1,866,533					$	1,882,988					$	1,883,282
Loan Yield⁽¹⁾		6.53	%					6.53	%					6.46	%

⁽¹⁾	Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

Community bank loans decreased $34.2 million in commercial real estate loans, $1.3 million in commercial and industrial loans and $216,000 in consumer and other loans, partially offset by an increase of $18.4 million in construction, land and land development loans, during the quarter ended March 31, 2025.

The following table details the community bank deposit portfolio:

Community Bank	As of
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands; unaudited)	Balance			% to Total			Balance			% to Total			Balance			% to Total
Demand, noninterest bearing	$	481,214			31.5	%	$	471,838			31.0	%	$	515,443			35.9	%
Interest bearing demand and money market		560,416			36.8			570,625			37.5			834,725			58.2
Savings		59,493			3.9			61,116			4.0			68,747			4.8
Total core deposits		1,101,123			72.2			1,103,579			72.5			1,418,915			99.0
Other deposits		407,391			26.7			400,118			26.3			1			0.0
Time deposits less than $100,000		5,585			0.4			5,920			0.4			7,199			0.5
Time deposits $100,000 and over		10,122			0.7			11,627			0.8			7,915			0.6
Total Community Bank deposits	$	1,524,221			100.0	%	$	1,521,244			100.0	%	$	1,434,030			100.0	%
Cost of deposits⁽¹⁾		1.76	%					1.86	%					1.66	%

⁽¹⁾	Cost of deposits is annualized for the three months ended for each period presented.

Community bank deposits increased $3.0 million, or 0.2%, during the three months ended March 31, 2025 to $1.52 billion as result of normal balance fluctuations. The community bank segment includes noninterest bearing deposits of $481.2 million, or 31.5%, of total community bank deposits, resulting in a cost of deposits of 1.76%, which compared to 1.86% for the quarter ended December 31, 2024, largely due to the decreases in the Fed funds rate late in the third quarter and during the fourth quarter of 2024.

Net Interest Income and Margin Discussion

Net interest income was $76.1 million for the quarter ended March 31, 2025, an increase of $3.7 million, or 5.1%, from $72.4 million for the quarter ended December 31, 2024, and an increase of $13.9 million, or 22.3%, from $62.2 million for the quarter ended March 31, 2024. Net interest income compared to December 31, 2024, was higher due to an increase in average loans receivable, an increase in loan yield and a decrease in cost of funds. The increase in net interest income compared to March 31, 2024 was largely related to growth in higher yielding loans, partially offset by an increase in cost of funds relating to higher interest rates and growth in interest bearing deposits.

Net interest margin was 7.48% for the three months ended March 31, 2025, compared to 7.23% for the three months ended December 31, 2024, largely due to higher loan yield and lower cost of deposits. Net interest margin, net of BaaS loan expense, (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) was 4.28% for the three months ended March 31, 2025, compared to 4.16% for the three months ended December 31, 2024. Net interest margin was 6.92% for the three months ended March 31, 2024. The increase in net interest margin for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 was largely due to an increase in loan yield, partially offset by higher interest rates on interest bearing deposits. Interest and fees on loans receivable increased $2.6 million, or 2.7%, to $98.1 million for the three months ended March 31, 2025, compared to $95.6 million for the three months ended December 31, 2024, as a result of loan growth. Interest and fees on loans receivable increased $12.3 million, or 14.3%, compared to $85.9 million for the three months ended March 31, 2024, due to an increase in outstanding balances and higher interest rates. Net interest margin, net of BaaS loan expense (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) increased 0.12% for the three months ended March 31, 2025, compared to the three months ended December 31, 2024 and increased 0.26% compared the three months ended March 31, 2024.

The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.48	%		7.23	%		6.92	%
Earning assets		4,124,065			3,980,078			3,613,769
Net interest income (GAAP)		76,062			72,377			62,206
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense⁽²⁾	$	43,555		$	41,657		$	36,099
Net interest margin, net of BaaS loan expense ⁽¹⁾⁽²⁾		4.28	%		4.16	%		4.02	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.33	%		11.12	%		11.01	%
Total average loans receivable	$	3,511,724		$	3,419,476		$	3,137,271
Interest and earned fee income on loans (GAAP)		98,147			95,575			85,891
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net loan income⁽²⁾	$	65,640		$	64,855		$	59,784
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾⁽²⁾		7.58	%		7.55	%		7.66	%

⁽¹⁾	Annualized calculations shown for periods presented.
⁽²⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Average investment securities decreased $974,000 to $47.2 million compared to the three months ended December 31, 2024 and decreased $68.2 million compared to the three months ended March 31, 2024 as a result of principal paydowns and maturing securities.

Cost of funds was 3.11% for the quarter ended March 31, 2025, a decrease of 13 basis points from the quarter ended December 31, 2024 and a decrease of 42 basis points from the quarter ended March 31, 2024. Cost of deposits for the quarter ended March 31, 2025 was 3.08%, compared to 3.21% for the quarter ended December 31, 2024, and 3.49% for the quarter ended March 31, 2024. The decreased cost of funds and deposits compared to December 31, 2024 and March 31, 2024 were largely due to the recent reductions in the Fed funds rate.

The following table summarizes the average yield on loans receivable and cost of deposits:

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
	Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾			Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾			Yield on Loans ⁽²⁾			Cost of Deposits ⁽²⁾
Community Bank		6.53	%		1.76	%		6.53	%		1.86	%		6.46	%		1.66	%
CCBX ⁽¹⁾		16.88	%		4.01	%		16.81	%		4.19	%		17.74	%		4.93	%
Consolidated		11.33	%		3.08	%		11.12	%		3.21	%		11.01	%		3.49	%

⁽¹⁾	CCBX yield on loans does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾	Annualized calculations for periods presented.

The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

	For the Three Months Ended
	March 31, 2025					December 31, 2024					March 31, 2024
(dollars in thousands, unaudited)	Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾			Income / Expense		Income / expense divided by average CCBX loans⁽²⁾			Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾
BaaS loan interest income	$	67,855		16.88	%	$	64,532		16.81	%	$	55,839		17.74	%
Less: BaaS loan expense		32,507		8.09	%		30,720		8.00	%		26,107		8.29	%
Net BaaS loan income ⁽¹⁾	$	35,348		8.79	%	$	33,812		8.81	%	$	29,732		9.45	%
Average BaaS Loans⁽³⁾	$	1,630,088				$	1,527,178				$	1,265,857

⁽¹⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
⁽²⁾	Annualized calculations shown for the periods presented.
⁽³⁾	Includes loans held for sale.

Noninterest Income Discussion

Noninterest income was $63.5 million for the three months ended March 31, 2025, a decrease of $10.6 million from $74.1 million for the three months ended December 31, 2024, and a decrease of $22.7 million from $86.2 million for the three months ended March 31, 2024. The decrease in noninterest income for the quarter ended March 31, 2025 as compared to the quarter ended December 31, 2024 was primarily due to a decrease of $10.8 million in total BaaS income. The $10.8 million decrease in total BaaS income included an $8.4 million decrease in BaaS credit enhancements related to the provision for credit losses and a $3.1 million decrease in BaaS fraud enhancements partially offset by an increase of $724,000 in BaaS program income. The $724,000 increase in BaaS program income is largely due to higher reimbursement of CCBX partner expenses and an increase in transaction and interchange fees and servicing and other BaaS fees, (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

The $22.7 million decrease in noninterest income over the quarter ended March 31, 2024 was primarily due to a $25.1 million decrease in BaaS credit and fraud enhancements and an increase of $2.2 million in BaaS program income.

Noninterest Expense Discussion

Total noninterest expense increased $4.6 million to $72.0 million for the three months ended March 31, 2025, compared to $67.4 million for the three months ended December 31, 2024, and increased $15.5 million from $56.5 million for the three months ended March 31, 2024. The $4.6 million increase in noninterest expense for the quarter ended March 31, 2025, as compared to the quarter ended December 31, 2024, was primarily due to a $3.5 million increase in salaries and benefits, $1.9 million increase in legal and professional fees, and $1.8 million increase in BaaS loan expense, partially offset by a $3.1 million decrease in BaaS fraud expense. The salaries and benefits and legal and professional fees increases were part of our continued investments in growth, technology and risk management. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners.

The increase in noninterest expenses for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024 was largely due to a $6.4 million increase in BaaS loan expense, a $1.1 million increase in BaaS fraud expense, a $2.8 million increase in legal and professional expenses, a $3.5 million increase in salary and employee benefits, and a $1.3 million increase in data processing and software licenses due to enhancements in technology all of which are related to the growth of Company and investments in technology and risk management.

Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partners:

	Three Months Ended
	March 31,		December 31,		March 31,
(dollars in thousands; unaudited)		2025		2024		2024
Total noninterest expense (GAAP)	$	71,989	$	67,411	$	56,509
Less: BaaS loan expense		32,507		30,720		26,107
Less: BaaS fraud expense		1,993		5,043		923
Less: Reimbursement of expenses (BaaS)		1,026		812		254
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) ⁽¹⁾	$	36,463	$	30,836	$	29,225

⁽¹⁾	A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Provision for Income Taxes

The provision for income taxes was $2.0 million for the three months ended March 31, 2025, $3.8 million for the three months ended December 31, 2024 and $1.9 million for the first quarter of 2024. The income tax provision was lower for the three months ended March 31, 2025 compared to the quarter ended December 31, 2024 as a result of the deductibility of certain equity awards which reduced tax expense during the quarter ended March 31, 2025, and was higher compared to the quarter ended March 31, 2024, primarily due to higher net income compared to that quarter, partially offset by the deductibility of certain equity awards.

The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 2.55% for calculating the provision for state income taxes.

Financial Condition Overview

Total assets increased $218.1 million, or 5.3%, to $4.34 billion at March 31, 2025 compared to $4.12 billion at December 31, 2024. The increase is primarily comprised of a $171.8 million increase in cash and a $30.8 million increase in loans receivable. Total loans receivable increased to $3.52 billion at March 31, 2025, from $3.49 billion at December 31, 2024.

As of March 31, 2025, in addition to the $624.3 million in cash on hand the Company had the capacity to borrow up to a total of $662.4 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, plus an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of March 31, 2025.

The Company, on a stand alone basis, had a cash balance of $45.5 million as of March 31, 2025, which is retained for general operating purposes, including debt repayment, for funding $468,000 in commitments to bank technology investment funds and $40.0 million is available to be contributed to the Bank as capital.

Uninsured deposits were $558.8 million as of March 31, 2025, compared to $543.0 million as of December 31, 2024.

Total shareholders’ equity as of March 31, 2025 increased $11.2 million since December 31, 2024. The increase in shareholders’ equity was primarily comprised of an increase of $1.5 million in common stock outstanding as a result of equity awards exercised during the three months ended March 31, 2025 combined with $9.7 million in net earnings.

The Company and the Bank remained well capitalized at March 31, 2025, as summarized in the following table.

(unaudited)	Coastal Community Bank			Coastal Financial Corporation			Minimum Well Capitalized Ratios under Prompt Corrective Action ⁽¹⁾
Tier 1 Leverage Capital (to average assets)		10.57	%		10.67	%		5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)		12.12	%		12.13	%		6.50	%
Tier 1 Capital (to risk-weighted assets)		12.12	%		12.22	%		8.00	%
Total Capital (to risk-weighted assets)		13.42	%		14.73	%		10.00	%

⁽¹⁾

Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

Asset Quality

The total allowance for credit losses was $183.2 million and 5.21% of loans receivable at March 31, 2025 compared to $177.0 million and 5.08% at December 31, 2024 and $139.9 million and 4.38% at March 31, 2024. The allowance for credit loss allocated to the CCBX portfolio was $164.2 million and 9.95% of CCBX loans receivable at March 31, 2025, with $19.0 million of allowance for credit loss allocated to the community bank or 1.02% of total community bank loans receivable.

The following table details the allocation of the allowance for credit loss as of the period indicated:

	As of March 31, 2025									As of December 31, 2024									As of March 31, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Loans receivable	$	1,866,533		$	1,650,826		$	3,517,359		$	1,882,988		$	1,603,577		$	3,486,565		$	1,883,282		$	1,311,819		$	3,195,101
Allowance for credit losses		(18,992	)		(164,186	)		(183,178	)		(18,924	)		(158,070	)		(176,994	)		(21,384	)		(118,557	)		(139,941	)
Allowance for credit losses to total loans receivable		1.02	%		9.95	%		5.21	%		1.00	%		9.86	%		5.08	%		1.14	%		9.04	%		4.38	%

Net charge-offs totaled $48.2 million for the quarter ended March 31, 2025, compared to $56.4 million for the quarter ended December 31, 2024 and $57.0 million for the quarter ended March 31, 2024. Net charge-offs as a percent of average loans decreased to 5.57% for the quarter ended March 31, 2025 compared to 6.56% for the quarter ended December 31, 2024. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $299.8 million loan portfolio. At March 31, 2025, our portion of this portfolio represented $19.9 million in loans. Net charge-offs for this $19.9 million in loans were $1.1 million for the three months ended March 31, 2025 and December 31, 2024 and $2.1 million for the three months ended March 31, 2024.

The following table details net charge-offs for the community bank and CCBX for the period indicated:

	Three Months Ended
	March 31, 2025									December 31, 2024									March 31, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Gross charge-offs	$	4		$	53,682		$	53,686		$	139		$	61,446		$	61,585		$	15		$	58,979		$	58,994
Gross recoveries		(7	)		(5,479	)		(5,486	)		(3	)		(5,220	)		(5,223	)		(4	)		(2,032	)		(2,036	)
Net charge-offs	$	(3	)	$	48,203		$	48,200		$	136		$	56,226		$	56,362		$	11		$	56,947		$	56,958
Net charge-offs to average loans ⁽¹⁾		0.00	%		11.99	%		5.57	%		0.03	%		14.65	%		6.56	%		0.00	%		18.09	%		7.30	%

⁽¹⁾	Annualized calculations shown for periods presented.

During the quarter ended March 31, 2025, a $54.3 million provision for credit losses was recorded for CCBX partner loans, compared to the $63.7 million provision for credit losses was recorded for CCBX partner loans for the quarter ended December 31, 2024. The provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $164.2 million at March 31, 2025 compared to $158.1 million at December 31, 2024. The increase in the allowance is due to the addition of new loans, partially offset by loan sales. CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk.

The factors used in management’s analysis for community bank credit losses indicated that a provision of $65,000 was needed for the quarter ended March 31, 2025 compared to a provision recapture of $1.1 million and $199,000 for the quarters ended December 31, 2024 and March 31, 2024, respectively. The provision in the current period was due to a change in the mix of the community bank loan portfolio and growth in construction loans.

The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024			March 31, 2024
Community bank	$	65	$	(1,071	)	$	(199	)
CCBX		54,319		63,741			79,717
Total provision expense	$	54,384	$	62,670		$	79,518

A provision for unfunded commitments of $613,000 was recorded for the quarter ended March 31, 2025 as a result of a change in the loan mix of available balance. A provision for accrued interest receivable of $784,000 was recorded for the quarter ended March 31, 2025 on CCBX loans.

At March 31, 2025, our nonperforming assets were $56.4 million, or 1.30%, of total assets, compared to $62.7 million, or 1.52%, of total assets, at December 31, 2024, and $54.9 million, or 1.42%, of total assets, at March 31, 2024. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of March 31, 2025, $54.1 million of the $56.2 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above.

Nonperforming assets decreased $6.3 million during the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024. This change is due to a decrease in CCBX loans 90 days or more past due and still on accrual. Community bank nonperforming loans increased $89,000 from December 31, 2024 to $189,000 as of March 31, 2025, and CCBX nonperforming loans decreased $6.4 million to $56.2 million from December 31, 2024. The decrease in CCBX nonperforming loans is due to a $7.1 million decrease in CCBX loans that are past due 90 days or more and still accruing interest partially offset by an increase of $707,000 in nonaccrual loans from December 31, 2024 to $20.2 million. Some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $16.1 million of these loans are less than 90 days past due as of March 31, 2025. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at March 31, 2025. Our nonperforming loans to loans receivable ratio was 1.60% at March 31, 2025, compared to 1.80% at December 31, 2024, and 1.72% at March 31, 2024. The lower nonperforming loans to loans receivable ratio is a reflection of our on-going risk reduction efforts.

For the quarter ended March 31, 2025, there were $3,000 community bank net recoveries and $48.2 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

The following table details the Company’s nonperforming assets for the periods indicated.

Consolidated	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans	$	381		$	334		$	—
Real estate loans:
Residential real estate		—			—			212
Commercial real estate		—			—			7,731
Consumer and other loans:
Credit cards		13,602			10,262			—
Other consumer and other loans		6,376			8,967			—
Total nonaccrual loans		20,359			19,563			7,943
Accruing loans past due 90 days or more:
Commercial & industrial loans		782			1,006			1,793
Real estate loans:
Residential real estate loans		2,407			2,608			1,796
Consumer and other loans:
Credit cards		27,187			34,490			37,603
Other consumer and other loans		5,632			4,989			5,731
Total accruing loans past due 90 days or more		36,008			43,093			46,923
Total nonperforming loans		56,367			62,656			54,866
Real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	56,367		$	62,656		$	54,866
Total nonaccrual loans to loans receivable		0.58	%		0.56	%		0.25	%
Total nonperforming loans to loans receivable		1.60	%		1.80	%		1.72	%
Total nonperforming assets to total assets		1.30	%		1.52	%		1.42	%

The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

CCBX	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans:
All other commercial & industrial loans	$	192		$	234		$	—
Consumer and other loans:
Credit cards		13,602			10,262			—
Other consumer and other loans		6,376			8,967			—
Total nonaccrual loans		20,170			19,463			—
Accruing loans past due 90 days or more:
Commercial & industrial loans		782			1,006			1,793
Real estate loans:
Residential real estate loans		2,407			2,608			1,796
Consumer and other loans:
Credit cards		27,187			34,490			37,603
Other consumer and other loans		5,632			4,989			5,731
Total accruing loans past due 90 days or more		36,008			43,093			46,923
Total nonperforming loans		56,178			62,556			46,923
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	56,178		$	62,556		$	46,923
Total CCBX nonperforming assets to total consolidated assets		1.29	%		1.52	%		1.21	%

Community Bank	As of
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Nonaccrual loans:
Commercial and industrial loans	$	189		$	100		$	—
Real estate:
Residential real estate		—			—			212
Commercial real estate		—			—			7,731
Total nonaccrual loans		189			100			7,943
Accruing loans past due 90 days or more:
Total accruing loans past due 90 days or more		—			—			—
Total nonperforming loans		189			100			7,943
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	189		$	100		$	7,943
Total community bank nonperforming assets to total consolidated assets		0.01	%		—	%		0.21	%

About Coastal Financial

Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The $4.34 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application. The Bank provides banking as a service to digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment. To learn more about the Company visit www.coastalbank.com.

CCB-ER

Contact

Eric Sprink, Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risk that changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations and those other risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands; unaudited)

ASSETS
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Cash and due from banks	$	43,467		$	36,533		$	45,327		$	59,995		$	32,790
Interest earning deposits with other banks		580,835			415,980			438,699			427,250			482,338
Investment securities, available for sale, at fair value		34			35			38			39			41
Investment securities, held to maturity, at amortized cost		46,957			47,286			48,582			49,174			50,049
Other investments		12,589			10,800			10,757			10,664			10,583
Loans held for sale		42,132			20,600			7,565			—			797
Loans receivable		3,517,359			3,486,565			3,413,894			3,321,813			3,195,101
Allowance for credit losses		(183,178	)		(176,994	)		(171,674	)		(148,878	)		(139,941	)
Total loans receivable, net		3,334,181			3,309,571			3,242,220			3,172,935			3,055,160
CCBX credit enhancement asset		183,377			181,890			173,600			149,096			142,412
CCBX receivable		12,685			14,138			16,060			11,520			10,369
Premises and equipment, net		28,639			27,431			25,833			24,526			22,995
Lease right-of-use assets		5,117			5,219			5,427			5,635			5,756
Accrued interest receivable		21,109			21,104			22,315			21,620			22,485
Bank-owned life insurance, net		13,501			13,375			13,255			13,132			12,991
Deferred tax asset, net		3,912			3,600			3,083			2,221			2,221
Other assets		10,747			13,646			11,711			11,742			12,075
Total assets	$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549		$	3,863,062

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits	$	3,791,229		$	3,585,332		$	3,627,288		$	3,543,432		$	3,462,979
Subordinated debt, net		44,331			44,293			44,256			44,219			44,181
Junior subordinated debentures, net		3,592			3,591			3,591			3,591			3,590
Deferred compensation		310			332			369			405			442
Accrued interest payable		1,107			962			1,070			999			1,061
Lease liabilities		5,293			5,398			5,609			5,821			5,946
CCBX payable		29,391			29,171			37,839			32,539			30,899
Other liabilities		14,112			13,425			12,520			11,850			10,255
Total liabilities		3,889,365			3,682,504			3,732,542			3,642,856			3,559,353
SHAREHOLDERS’ EQUITY
Common Stock		229,659			228,177			134,769			132,989			131,601
Retained earnings		220,259			210,529			197,162			183,706			172,110
Accumulated other comprehensive loss, net of tax		(1	)		(2	)		(1	)		(2	)		(2	)
Total shareholders’ equity		449,917			438,704			331,930			316,693			303,709
Total liabilities and shareholders’ equity	$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549		$	3,863,062

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts; unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024			March 31, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	98,147	$	95,575	$	99,676	$	90,879		$	85,891
Interest on interest earning deposits with other banks		6,070		6,021		4,781		5,683			4,780
Interest on investment securities		650		661		675		686			1,034
Dividends on other investments		40		191		33		174			37
Total interest income		104,907		102,448		105,165		97,422			91,742
INTEREST EXPENSE
Interest on deposits		28,185		29,404		32,083		30,578			28,867
Interest on borrowed funds		660		667		809		672			669
Total interest expense		28,845		30,071		32,892		31,250			29,536
Net interest income		76,062		72,377		72,273		66,172			62,206
PROVISION FOR CREDIT LOSSES		55,781		61,867		70,257		62,325			83,158
Net interest income/(expense) after provision for credit losses		20,281		10,510		2,016		3,847			(20,952	)
NONINTEREST INCOME
Service charges and fees		860		932		952		946			908
Loan referral fees		—		—		—		—			168
Unrealized gain (loss) on equity securities, net		16		1		2		9			15
Other income		682		473		486		257			308
Noninterest income, excluding BaaS program income and BaaS indemnification income		1,558		1,406		1,440		1,212			1,399
Servicing and other BaaS fees		1,419		1,043		1,044		1,525			1,131
Transaction and interchange fees		3,833		3,699		3,549		2,934			2,661
Reimbursement of expenses		1,026		812		565		857			254
BaaS program income		6,278		5,554		5,158		5,316			4,046
BaaS credit enhancements		53,648		62,097		70,108		60,826			79,808
BaaS fraud enhancements		1,993		5,043		2,084		1,784			923
BaaS indemnification income		55,641		67,140		72,192		62,610			80,731
Total noninterest income		63,477		74,100		78,790		69,138			86,176
NONINTEREST EXPENSE
Salaries and employee benefits		21,532		17,994		17,101		17,005			17,984
Occupancy		1,034		958		964		985			1,518
Data processing and software licenses		4,232		4,010		4,297		3,625			2,892
Legal and professional expenses		6,488		4,606		3,597		3,631			3,672
Point of sale expense		107		89		73		72			90
Excise taxes		722		778		762		(706	)		320
Federal Deposit Insurance Corporation (“FDIC”) assessments		755		750		740		690			683
Director and staff expenses		631		683		559		470			400
Marketing		50		28		67		14			53
Other expense		1,938		1,752		1,482		1,383			1,867
Noninterest expense, excluding BaaS loan and BaaS fraud expense		37,489		31,648		29,642		27,169			29,479
BaaS loan expense		32,507		30,720		32,698		29,011			26,107
BaaS fraud expense		1,993		5,043		2,084		1,784			923
BaaS loan and fraud expense		34,500		35,763		34,782		30,795			27,030
Total noninterest expense		71,989		67,411		64,424		57,964			56,509
Income before provision for income taxes		11,769		17,199		16,382		15,021			8,715
PROVISION FOR INCOME TAXES		2,039		3,832		2,926		3,425			1,915
NET INCOME	$	9,730	$	13,367	$	13,456	$	11,596		$	6,800
Basic earnings per common share	$	0.65	$	0.97	$	1.00	$	0.86		$	0.51
Diluted earnings per common share	$	0.63	$	0.94	$	0.97	$	0.84		$	0.50
Weighted average number of common shares outstanding:
Basic		14,962,507		13,828,605		13,447,066		13,412,667			13,340,997
Diluted		15,462,041		14,268,229		13,822,270		13,736,508			13,676,917

COASTAL FINANCIAL CORPORATION
AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	March 31, 2025								December 31, 2024								March 31, 2024
	Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾			Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾			Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾
Assets
Interest earning assets:
Interest earning deposits with other banks	$	553,393		$	6,070		4.45	%	$	501,654		$	6,021		4.77	%	$	350,868		$	4,780		5.48	%
Investment securities, available for sale ⁽²⁾		37			1		10.96			39			—		—			64,878			349		2.16
Investment securities, held to maturity ⁽²⁾		47,154			649		5.58			48,126			661		5.46			50,490			685		5.46
Other investments		11,757			40		1.38			10,783			191		7.05			10,262			37		1.45
Loans receivable ⁽³⁾		3,511,724			98,147		11.33			3,419,476			95,575		11.12			3,137,271			85,891		11.01
Total interest earning assets		4,124,065			104,907		10.32			3,980,078			102,448		10.24			3,613,769			91,742		10.21
Noninterest earning assets:
Allowance for credit losses		(170,542	)							(156,687	)							(114,985	)
Other noninterest earning assets		296,993								277,922								229,437
Total assets	$	4,250,516							$	4,101,313							$	3,728,221

Liabilities and Shareholders’ Equity
Interest bearing liabilities:
Interest bearing deposits	$	3,166,384		$	28,185		3.61	%	$	3,068,357		$	29,404		3.81	%	$	2,728,884		$	28,867		4.25	%
FHLB advances and other borrowings		—			1		—			—			1		—			5			—		—
Subordinated debt		44,309			598		5.47			44,272			599		5.38			44,159			598		5.45
Junior subordinated debentures		3,592			61		6.89			3,591			67		7.42			3,590			71		7.95
Total interest bearing liabilities		3,214,285			28,845		3.64			3,116,220			30,071		3.84			2,776,638			29,536		4.28
Noninterest bearing deposits		543,784								577,453								595,693
Other liabilities		49,624								50,824								58,829
Total shareholders’ equity		442,823								356,816								297,061
Total liabilities and shareholders’ equity	$	4,250,516							$	4,101,313							$	3,728,221
Net interest income				$	76,062							$	72,377							$	62,206
Interest rate spread							6.68	%							6.40	%							5.93	%
Net interest margin ⁽⁴⁾							7.48	%							7.23	%							6.92	%

⁽¹⁾	Yields and costs are annualized.
⁽²⁾	For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾	Includes loans held for sale and nonaccrual loans.
⁽⁴⁾	Net interest margin represents net interest income divided by the average total interest earning assets.

COASTAL FINANCIAL CORPORATION
SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Community Bank
Assets
Interest earning assets:
Loans receivable ⁽²⁾	$	1,881,636	$	30,292	6.53	%	$	1,892,298	$	31,043	6.53	%	$	1,871,414	$	30,052	6.46	%
Total interest earning assets		1,881,636		30,292	6.53			1,892,298		31,043	6.53			1,871,414		30,052	6.46
Liabilities
Interest bearing liabilities:
Interest bearing deposits		1,045,971		6,604	2.56	%		1,029,346		7,161	2.77	%		922,340		6,013	2.62	%
Intrabank liability		356,337		3,909	4.45			357,442		4,290	4.77			410,993		5,599	5.48
Total interest bearing liabilities		1,402,308		10,513	3.04			1,386,788		11,451	3.28			1,333,333		11,612	3.50
Noninterest bearing deposits		479,329						505,510						538,081
Net interest income			$	19,779					$	19,592					$	18,440
Net interest margin⁽³⁾					4.26	%					4.12	%					3.96	%

CCBX
Assets
Interest earning assets:
Loans receivable ⁽²⁾⁽⁴⁾	$	1,630,088	$	67,855	16.88	%	$	1,527,178	$	64,532	16.81	%	$	1,265,857	$	55,839	17.74	%
Intrabank asset		554,781		6,085	4.45			583,776		7,007	4.78			598,299		8,151	5.48
Total interest earning assets		2,184,869		73,940	13.72			2,110,954		71,539	13.48			1,864,156		63,990	13.81
Liabilities
Interest bearing liabilities:
Interest bearing deposits		2,120,413		21,581	4.13	%		2,039,011		22,243	4.34	%		1,806,544		22,854	5.09	%
Total interest bearing liabilities		2,120,413		21,581	4.13			2,039,011		22,243	4.34			1,806,544		22,854	5.09
Noninterest bearing deposits		64,455						71,943						57,612
Net interest income			$	52,359					$	49,296					$	41,136
Net interest margin⁽³⁾					9.72	%					9.29	%					8.88	%
Net interest margin, net of BaaS loan expense⁽⁵⁾					3.68	%					3.50	%					3.24	%

	For the Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Treasury & Administration
Assets
Interest earning assets:
Interest earning deposits with other banks	$	553,393	$	6,070	4.45	%	$	501,654	$	6,021	4.77	%	$	350,868	$	4,780	5.48	%
Investment securities, available for sale ⁽⁶⁾		37		1	10.96			39		—	—			64,878		349	2.16
Investment securities, held to maturity ⁽⁶⁾		47,154		649	5.58			48,126		661	5.46			50,490		685	5.46
Other investments		11,757		40	1.38			10,783		191	7.05			10,262		37	1.45
Total interest earning assets		612,341		6,760	4.48	%		560,602		6,873	4.88	%		476,498		5,851	4.94	%
Liabilities
Interest bearing liabilities:
FHLB advances and borrowings	$	—		1	—	%	$	—		1	—	%	$	5		—	—	%
Subordinated debt		44,309		598	5.47	%		44,272		599	5.38	%		44,159		598	5.45	%
Junior subordinated debentures		3,592		61	6.89			3,591		67	7.42			3,590		71	7.95
Intrabank liability, net ⁽⁷⁾		198,444		2,176	4.45			226,334		2,717	4.78			187,306		2,552	5.48
Total interest bearing liabilities		246,345		2,836	4.67			274,197		3,384	4.91			235,060		3,221	5.51
Net interest income			$	3,924					$	3,489					$	2,630
Net interest margin⁽³⁾					2.60	%					2.48	%					2.22	%

⁽¹⁾	Yields and costs are annualized.
⁽²⁾	Includes loans held for sale and nonaccrual loans.
⁽³⁾	Net interest margin represents net interest income divided by the average total interest earning assets.
⁽⁴⁾	CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽⁵⁾	Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
⁽⁶⁾	For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽⁷⁾	Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

Reconciliations of the GAAP and non-GAAP measures are presented below.

CCBX	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP)⁽¹⁾		16.88	%		16.81	%		17.74	%
Total average CCBX loans receivable	$	1,630,088		$	1,527,178		$	1,265,857
Interest and earned fee income on CCBX loans (GAAP)		67,855			64,532			55,839
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net BaaS loan income	$	35,348		$	33,812		$	29,732
Net BaaS loan income divided by average CCBX loans ⁽¹⁾		8.79	%		8.81	%		9.45	%
CCBX net interest margin, net of BaaS loan expense:
CCBX net interest margin ⁽¹⁾		9.72	%		9.29	%		8.88	%
CCBX earning assets		2,184,869			2,110,954			1,864,156
Net interest income (GAAP)		52,359			49,296			41,136
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense	$	19,852		$	18,576		$	15,029
CCBX net interest margin, net of BaaS loan expense ⁽¹⁾		3.68	%		3.50	%		3.24	%

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	March 31 2025			December 31 2024			March 31 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.48	%		7.23	%		6.92	%
Earning assets		4,124,065			3,980,078			3,613,769
Net interest income (GAAP)		76,062			72,377			62,206
Less: BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net interest income, net of BaaS loan expense	$	43,555		$	41,657		$	36,099
Net interest margin, net of BaaS loan expense ⁽¹⁾		4.28	%		4.16	%		4.02	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.33	%		11.12	%		11.01	%
Total average loans receivable	$	3,511,724		$	3,419,476		$	3,137,271
Interest and earned fee income on loans (GAAP)		98,147			95,575			85,891
BaaS loan expense		(32,507	)		(30,720	)		(26,107	)
Net loan income	$	65,640		$	64,855		$	59,784
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾		7.58	%		7.55	%		7.66	%

⁽¹⁾	Annualized calculations for periods presented.

The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. This non-GAAP measure shows the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partner. The most comparable GAAP measure is noninterest expense.

	As of and for the Three Months Ended
(dollars in thousands, unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Noninterest expense, net of reimbursement of expenses (BaaS)
Noninterest expense (GAAP)	$	71,989	$	67,411	$	56,509
Less: BaaS loan expense		32,507		30,720		26,107
Less: BaaS fraud expense		1,993		5,043		923
Less: Reimbursement of expenses		1,026		812		254
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses	$	36,463	$	30,836	$	29,225

APPENDIX A –
As of March 31, 2025

Industry Concentration

We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.52 billion in outstanding loan balances. When combined with $2.14 billion in unused commitments the total of these categories is $5.67 billion.

Commercial real estate loans represent the largest segment of our loans, comprising 38.0% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $29.4 million, and the combined total in commercial real estate loans represents $1.37 billion, or 24.2% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Apartments	$	392,740	$	4,488	$	397,228	7.0	%	$	3,927	100
Hotel/Motel		149,859		61		149,920	2.6			6,516	23
Convenience Store		138,838		561		139,399	2.5			2,314	60
Office		121,346		7,183		128,529	2.3			1,379	88
Retail		101,118		744		101,862	1.8			972	104
Warehouse		103,813		—		103,813	1.8			1,790	58
Mixed use		91,025		5,220		96,245	1.7			1,167	78
Mini Storage		73,172		8,022		81,194	1.4			3,659	20
Strip Mall		43,678		—		43,678	0.8			6,240	7
Manufacturing		36,887		370		37,257	0.7			1,272	29
Groups < 0.70% of total		88,171		2,752		90,923	1.6			1,145	77
Total	$	1,340,647	$	29,401	$	1,370,048	24.2	%	$	2,082	644

Consumer loans comprise 34.5% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $910.8 million, and the combined total in consumer and other loans represents $2.13 billion, or 37.5% of our total outstanding loans and loan commitments. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $1,000. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX consumer loans
Credit cards	$	532,775	$	868,969	$	1,401,744	24.7	%	$	1.7	314,203
Installment loans		654,844		29,027		683,871	12.1			0.8	776,669
Lines of credit		627		2		629	0.0			1.3	477
Other loans		14,555		—		14,555	0.3			0.1	185,894
Community bank consumer loans
Installment loans		1,846		3		1,849	0.0			65.9	28
Lines of credit		173		357		530	0.0			5.2	33
Other loans		11,307		12,400		23,707	0.4			34.6	327
Total	$	1,216,127	$	910,758	$	2,126,885	37.5	%	$	1.0	1,277,631

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Residential real estate loans comprise 13.9% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $529.3 million, and the combined total in residential real estate loans represents $1.02 billion, or 18.0% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX residential real estate loans
Home equity line of credit	$	285,355	$	481,778	$	767,133	13.5	%	$	28	10,291
Community bank residential real estate loans
Closed end, secured by first liens		164,284		1,649		165,933	3.0			533	308
Home equity line of credit		27,931		45,016		72,947	1.3			115	242
Closed end, second liens		10,705		892		11,597	0.2			357	30
Total	$	488,275	$	529,335	$	1,017,610	18.0	%	$	45	10,871

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits. CCBX home equity lines of credit are limited to a $375.0 million portfolio maximum.

Commercial and industrial loans comprise 8.9% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $601.0 million, and the combined total in commercial and industrial loans represents $913.2 million, or 16.1% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $133.5 million in outstanding capital call lines, with an additional $514.9 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX C&I Loans
Capital Call Lines	$	133,466	$	514,864	$	648,330	11.4	%	$	1,019	131
Retail and other loans		29,702		21,736		51,438	0.9			10	3,002
Community bank C&I Loans
Construction/Contractor Services		30,768		31,642		62,410	1.1			152	202
Financial Institutions		48,648		—		48,648	0.9			4,054	12
Medical / Dental / Other Care		6,721		2,739		9,460	0.2			517	13
Manufacturing		5,611		4,022		9,633	0.2			156	36
Groups < 0.20% of total		57,356		25,969		83,325	1.4			222	258
Total	$	312,272	$	600,972	$	913,244	16.1	%	$	85	3,654

⁽¹⁾ Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Construction, land and land development loans comprise 4.7% of our total balance of outstanding loans as of March 31, 2025. Unused commitments to extend credit represents an additional $72.5 million, and the combined total in construction, land and land development loans represents $239.0 million, or 4.2% of our total outstanding loans and loan commitments.

The following table details our loan commitment for our construction, land and land development portfolio as of March 31, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Commercial construction	$	96,716	$	41,654	$	138,370	2.4	%	$	6,908	14
Residential construction		39,375		22,253		61,628	1.1			2,316	17
Developed land loans		7,788		2		7,790	0.1			556	14
Undeveloped land loans		16,684		4,185		20,869	0.4			1,112	15
Land development		5,988		4,382		10,370	0.2			665	9
Total	$	166,551	$	72,476	$	239,027	4.2	%	$	2,414	69

Exposure and risk in our construction, land and land development portfolio increased compared to recent periods as indicated in the following table:

	Outstanding Balance as of
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Commercial construction	$	96,716	$	83,216	$	97,792	$	110,372	$	102,099
Residential construction		39,375		40,940		35,822		34,652		28,751
Undeveloped land loans		16,684		8,665		8,606		8,372		8,190
Developed land loans		7,788		8,305		14,863		13,954		14,307
Land development		5,988		7,072		5,968		5,714		7,515
Total	$	166,551	$	148,198	$	163,051	$	173,064	$	160,862

Commitments to extend credit total $2.14 billion at March 31, 2025, however we do not anticipate our customers using the $2.14 billion that is showing as available due to CCBX partner and portfolio limits.

The following table presents outstanding commitments to extend credit as of March 31, 2025:

Consolidated
(dollars in thousands; unaudited)	As of March 31, 2025
Commitments to extend credit:
Commercial and industrial loans	$	86,108
Commercial and industrial loans – capital call lines		514,864
Construction – commercial real estate loans		50,221
Construction – residential real estate loans		22,255
Residential real estate loans		529,335
Commercial real estate loans		29,401
Credit cards		868,969
Consumer and other loans		41,789
Total commitments to extend credit	$	2,142,942

We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of March 31, 2025, capital call lines outstanding balance totaled $133.5 million and, while commitments totaled $514.9 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund or not fund the loan.

See the table below for CCBX portfolio maximums and related available commitments:

CCBX
(dollars in thousands; unaudited)	Balance			Percent of CCBX loans receivable		Available Commitments ⁽¹⁾		Maximum Portfolio Size		Cash Reserve/Pledge Account Amount ⁽²⁾
Commercial and industrial loans:
Capital call lines	$	133,466		8.1	%	$	514,864	$	350,000	$	—
All other commercial & industrial loans		29,702		1.8			21,736		475,720		541
Real estate loans:
Home equity lines of credit ⁽³⁾		285,355		17.3			481,778		375,000		33,436
Consumer and other loans:
Credit cards – cash secured		339					—				—
Credit cards – unsecured		532,436					868,969				27,589
Credit cards – total		532,775		32.2			868,969		850,000		27,589
Installment loans – cash secured		127,426					29,027				—
Installment loans – unsecured		527,418					—				1,175
Installment loans – total		654,844		39.7			29,027		1,814,541		1,175
Other consumer and other loans		15,182		0.9			2		4,739		419
Gross CCBX loans receivable		1,651,324		100.0	%		1,916,376		3,870,000	$	63,160
Net deferred origination fees		(498	)
Loans receivable	$	1,650,826

(1)	Remaining commitment available, net of outstanding balance.
(2)	Balances are as of April 9, 2025.
(3)	These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

APPENDIX B –
As of March 31, 2025

CCBX – BaaS Reporting Information

During the quarter ended March 31, 2025, $53.6 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments and negative deposit accounts. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes non-credit fraud losses on loans and deposits originated through partners, generally fraud losses related to loans are comprised primarily of first payment defaults. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating and servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (a reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release) which can be compared to interest income on the Company’s community bank loans.

The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

Loan income and related loan expense	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
Yield on loans ⁽¹⁾		16.88	%		16.81	%		17.74	%
BaaS loan interest income	$	67,855		$	64,532		$	55,839
Less: BaaS loan expense		32,507			30,720			26,107
Net BaaS loan income ⁽²⁾	$	35,348		$	33,812		$	29,732
Net BaaS loan income divided by average BaaS loans ⁽¹⁾⁽²⁾		8.79	%		8.81	%		9.45	%

(1) Annualized calculation for quarterly periods shown.
(2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

An increase in average CCBX loans receivable resulted in increased interest income on CCBX loans during the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. The increase in average CCBX loans receivable was primarily due to our strategy to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans with enhanced credit standards. These higher quality loans also have lower stated rates and expected losses than some of our CCBX loans historically. Our yield on loans and our net interest margin net of BaaS loan expense slightly increased, as our CCBX portfolio is leveling out. Current loan sales and new loan growth are at more similar interest rates compared to prior periods when we were selling loans with higher risk and higher interest rates and replacing them with higher quality lower interest rate loans. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and also generate off balance sheet fee income. Growth in CCBX loans and deposits has resulted in increases in interest income and expense for the quarter ended March 31, 2025 compared to the quarter ended March 31, 2024.

The following tables are a summary of the interest components, direct fees and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

Interest income	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Loan interest income	$	67,855	$	64,532	$	55,839
Total BaaS interest income	$	67,855	$	64,532	$	55,839

Interest expense	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS interest expense	$	21,581	$	22,243	$	22,854
Total BaaS interest expense	$	21,581	$	22,243	$	22,854

BaaS income	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS program income:
Servicing and other BaaS fees	$	1,419	$	1,043	$	1,131
Transaction and interchange fees		3,833		3,699		2,661
Reimbursement of expenses		1,026		812		254
Total BaaS program income		6,278		5,554		4,046
BaaS indemnification income:
BaaS credit enhancements		53,648		62,097		79,808
BaaS fraud enhancements		1,993		5,043		923
BaaS indemnification income		55,641		67,140		80,731
Total noninterest BaaS income	$	61,919	$	72,694	$	84,777

Servicing and other BaaS fees increased $376,000 and transaction and interchange fees increased $134,000 in the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024. We expect servicing and other BaaS fees to be higher when we are bringing new partners on and then to decrease when transaction and interchange fees increase as partner activity grows and contracted minimum fees are replaced with these recurring fees when they exceed the minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners.

BaaS loan and fraud expense:	Three Months Ended
(dollars in thousands; unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
BaaS loan expense	$	32,507	$	30,720	$	26,107
BaaS fraud expense		1,993		5,043		923
Total BaaS loan and fraud expense	$	34,500	$	35,763	$	27,030

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/26a7ee4c-99dc-493e-8703-90dc906581e2

The MIL Network –

April 30, 2025

MIL-OSI: Summit State Bank Earns $2.5 Million, or $0.37 Per Diluted Share, in First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

SANTA ROSA, Calif., April 29, 2025 (GLOBE NEWSWIRE) — Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income of $2,494,000, or $0.37 per diluted share for the first quarter ended March 31, 2025, compared to net income of $1,395,000, or $0.21 per diluted share for the first quarter ended March 31, 2024.

“Our operating performance for the first quarter of 2025 was a significant improvement over the prior quarter, fueled by strong net interest income generation and net interest margin expansion,” said Brian Reed, President and CEO. “We are feeling positive about our earnings trajectory, as we have made significant progress in resolving problem loans which negatively impacted the Bank’s performance in 2024. While market volatility continues throughout the financial sector, we will remain consistent with our balance sheet management and operating procedures. Continued repricing of our deposit and loan portfolio is expected to have a positive impact on our net interest margin and financial results going forward.”

“We continue to focus on maintaining strong capital levels by strategically managing the balance sheet and suspending cash dividends,” said Reed. “As such, the Board determined it will also suspend cash dividends in the second quarter of 2025 so that we can continue to build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”

“Another highlight of the first quarter was the substantial decrease in problem loans and non-performing assets,” said Reed. “We have been aggressively pursuing solutions to problem loans and have reduced our non-performing loans by $10,307,000 during the first quarter of 2025 compared to the preceding quarter, and by $24,101,000 compared to a year ago. Additionally, we anticipate non-performing loans will be further reduced by $8,016,000 in the second quarter of 2025 as a result of loan payoffs from the sale of collateral that is currently under contract. These loans represent 46% of our $17,400,000 in non-performing loans. We are encouraged with our progress in resolving problem loans and will continue to make this a primary focus of the Bank.”

First Quarter 2025 Financial Highlights (at or for the three months ended March 31, 2025)

Net income was $2,494,000, or $0.37 per diluted share, compared to $1,395,000, or $0.21 per diluted share, in the first quarter of 2024 and a net loss of $7,142,000, or $1.06 loss per diluted share for the quarter ended December 31, 2024.
Net interest margin was 3.19% in the first quarter of 2025 compared to 2.81% in the first quarter of 2024 and 2.88% in the fourth quarter of 2024.
Non-performing assets decreased to $21,884,000 at March 31, 2025 compared to $41,548,000 in non-performing assets at March 31, 2024 and $32,191,000 at December 31, 2024.
Collateral relating to three of the non-performing loans to one borrower is under contract to sell in the second quarter of 2025 and the expected proceeds represent 46% or $8,016,000 of the remaining $17,447,000 of non-performing loans.
The Bank’s Tier 1 Leverage ratio increased to 9.45% at March 31, 2025 compared to 9.21% at March 31, 2024. This ratio remains well above the minimum of 5% required to be considered “well-capitalized” for regulatory capital purposes.
The Bank’s annualized return on average assets and annualized return on average equity for the first quarter of 2025 was 0.95% and 10.80%, respectively. This compared to annualized return on average assets and annualized return on average equity for the first quarter of 2024 of 0.51% and 5.74%, respectively.
The allowance for credit losses to total loans was 1.53% at March 31, 2025 compared to 1.66% one year earlier and 1.49% in the preceding quarter.
The Bank maintained strong total liquidity of $448,039,000, or 42.1% of total assets as of March 31, 2025. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $141,145,000 or 13.3% of total assets, plus available borrowing capacity of $306,894,000 or 28.9% of total assets.
The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
- Net loans decreased 4% to $877,354,000 at March 31, 2025, compared to $917,685,000 one year earlier and decreased 3% compared to $905,075,000 in the fourth quarter of 2024.
- Total deposits increased 2% to $957,065,000 at March 31, 2025, compared to $939,202,000 at March 31, 2024, and decreased 1% when compared to the fourth quarter of 2024, at $962,562,000.
Book value was $14.07 per share, compared to $14.43 per share a year ago and $13.53 in the fourth quarter of 2024.

Operating Results

For the first quarter of 2025, the annualized return on average assets was 0.95% and the annualized return on average equity was 10.80%. This compared to an annualized return on average assets of 0.51% and an annualized return on average equity of 5.74%, respectively, for the first quarter of 2024.

“The 31 basis point improvement in our net interest margin during the first quarter of 2025, compared to the preceding quarter, was a result of lower cost of funds as well as higher loan yields as existing loans continue to reprice,” said Reed. “We anticipate additional improvement to our net interest margin over the next few quarters as time deposits and loans reprice.” The Bank’s net interest margin was 3.19% in the first quarter of 2025 compared to 2.81% in the first quarter of 2024 and 2.88% in fourth quarter of 2024.

Interest and dividend income increased 0.4% to $14,542,000 in the first quarter of 2025 compared to $14,477,000 in the first quarter of 2024. The increase in interest income is attributable to a $146,000 increase in interest and fees on loans, an increase of $115,000 in interest on deposits with banks offset by a $197,000 decrease in interest on investment securities.

Interest expense decreased 9% to $6,464,000 in the first quarter of 2025 compared to $7,070,000 in the first quarter of 2024. The decrease in interest expense is primarily attributable to a $498,000 decrease in interest expense on deposits resulting from lower cost of funds and a $150,000 decrease in interest expense on Federal Home Loan Bank advances due to decreased borrowing volume.

Noninterest income decreased in the first quarter of 2025 to $646,000 compared to $948,000 in the first quarter of 2024. The decrease is primarily attributed to the Bank recognizing $514,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2024 compared to $22,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2025.

“We have worked hard at implementing significant cost savings throughout the Bank to improve operating efficiencies,” said Reed. Operating expenses decreased in the first quarter of 2025 to $6,253,000 compared to $6,400,000 in the first quarter of 2024. The savings is primarily due to a decrease of $455,000 in salaries and employee benefits from an 8% reduction in force due to a cost savings initiative in the fourth quarter of 2024 offset by an increase in FDIC deposit insurance and stock appreciation rights expense in the first quarter of 2025.

Balance Sheet Review

During the first quarter of 2025, the Bank strategically managed its loan and deposit portfolios to reduce balance sheet risk and improve liquidity and capital ratios. As a result, net loans decreased 4% to $877,354,000 and total deposits increased 2% to $957,065,000 as of March 31, 2025 compared to March 31, 2024.

Net loans were $877,354,000 at March 31, 2025 compared to $917,685,000 at March 31, 2024, and decreased 3% compared to December 31, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio and loans “secured by farmland” totaling 8% of the portfolio. Of the commercial real estate total, approximately 33% or $222,334,000 is owner occupied and the remaining 67% or $443,684,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries and product type. The office space product type totals $154,512,000 or 17% of the total loan portfolio; of this total owner occupied is $59,563,00 or 39% and non-owner occupied is $94,949,000 or 61%.
Total deposits were $957,065,000 at March 31, 2025 compared to $939,202,000 at March 31, 2024, and decreased 1% compared to the prior quarter end. At March 31, 2025, noninterest bearing demand deposit accounts increased 11% compared to a year ago and represented 21% of total deposits; savings, NOW and money market accounts decreased 10% compared to a year ago and represented 46% of total deposits, and CDs increased 17% compared to a year ago and comprised 33% of total deposits.

Shareholders’ equity was $95,341,000 at March 31, 2025, compared to $97,878,000 one year earlier and $91,723,000 three months earlier. The decrease in shareholders’ equity compared to a year ago was due to a reduction in retained earnings. At March 31, 2025 book value was $14.07 per share, compared to $13.53 three months earlier, and $14.43 at March 31, 2024.

The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio for the first quarter of 2025 was 9.45%, an increase compared to 9.21% for the first quarter of 2024.

Credit Quality

Non-performing assets were $21,884,000, or 2.06% of total assets, at March 31, 2025. This compared to $32,191,000 in non-performing assets at December 31, 2024, and $41,548,000 in non-performing assets at March 31, 2024. Non-performing assets include $4,437,000 for one other real estate owned property at March 31, 2025 and December 31, 2024, compared to no other real estate owned property at March 31, 2024.

“While we are encouraged with the improvements in credit quality metrics, our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “As of March 31, 2025, six loans to two borrowers totaling $16,047,000 or 92% of our non-performing loans are “secured by farmland,” a sector that has been hit hard by the current economic environment. Outside of these loans, the Bank holds a small portion, $54,714,000 or 6%, of its total loans in this industry and actively monitors the performance of these loans. Collateral relating to three of these loans to one borrower is under contract to sell during the second quarter of 2025 and represents 46% or $8,016,000 of the total non-performing loan portfolio.”

There was $509,000 in net recoveries during the three months ended March 31, 2025, compared to $8,343,000 in net charge-offs during the three months ended December 31, 2024 and net recoveries of $281,000 during the three months ended March 31, 2024.

For the first quarter of 2025, consistent with factors within the allowance for credit losses model, the Bank recorded a $577,000 reversal of credit loss expense for loans due to a $509,000 recovery received on a paid off loan previously charged-off, a $38,000 reversal of credit losses for unfunded loan commitments and a $13,000 reversal of credit losses on investments. This compared to a $15,000 reversal of credit loss expense on loans, a $65,000 reversal of credit losses on unfunded loan commitments and a $5,000 reversal of credit losses on investments in the first quarter of 2024. The allowance for credit losses to total loans was 1.53% on March 31, 2025, and 1.66% on March 31, 2024.

About Summit State Bank

Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits and the community, with total assets of $1.1 billion and total equity of $95 million as of March 31, 2025. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.

Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements

The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-Q for the period ended March 31, 2025, and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.

Except for historical information, the statements contained in this release, are forward-looking statements within the meaning of the “safe harbor” provisions 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 are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due a decline in credit worthiness, business conditions or other reasons;; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.


SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
			Three Months Ended
			March 31, 2025			December 31, 2024			March 31, 2024
			(Unaudited)			(Unaudited)			(Unaudited)

Interest and dividend income:
	Interest and fees on loans		$	13,420		$	13,623		$	13,274
	Interest on deposits with banks			477			655			362
	Interest on investment securities			515			530			712
	Dividends on FHLB stock			130			127			129
		Total interest and dividend income		14,542			14,935			14,477
Interest expense:
	Deposits			6,288			7,099			6,786
	Federal Home Loan Bank advances			40			6			190
	Junior subordinated debt			136			128			94
		Total interest expense		6,464			7,233			7,070
		Net interest income before provision for (reversal of) credit losses		8,078			7,702			7,407
(Reversal of) provision for credit losses on loans				(577	)		6,570			(15	)
(Reversal of) provision for credit losses on unfunded loan commitments				(38	)		154			(65	)
(Reversal of) credit losses on investments				(13	)		(2	)		(5	)
		Net interest income after provision for (reversal of) credit
		losses on loans, unfunded loan commitments and investments		8,706			980			7,492
Non-interest income:
	Service charges on deposit accounts			225			225			233
	Rental income			57			61			60
	Net gain on loan sales			22			857			514
	Net gain on securities			–			6			–
	Loss on valuation of other real estate owned			–			(693	)		–
	Other income			342			224			141
		Total non-interest income		646			680			948
Non-interest expense:
	Salaries and employee benefits			3,727			3,429			4,182
	Occupancy and equipment			421			413			485
	Goodwill impairment			–			4,119			–
	Other expenses			2,105			2,239			1,733
		Total non-interest expense		6,253			10,200			6,400
		Income (loss) before provision for income taxes		3,099			(8,540	)		2,040
Provision for income tax expense (benefit)				605			(1,398	)		645
		Net income (loss)	$	2,494		$	(7,142	)	$	1,395

Basic earnings (loss) per common share			$	0.37		$	(1.06	)	$	0.21
Diluted earnings (loss) per common share			$	0.37		$	(1.06	)	$	0.21

Basic weighted average shares of common stock outstanding				6,719			6,719			6,698
Diluted weighted average shares of common stock outstanding				6,719			6,719			6,698


SUMMIT STATE BANK
BALANCE SHEETS
(In thousands except share data)
				March 31, 2025			December 31, 2024			March 31, 2024
				(Unaudited)			(Audited)			(Unaudited)
ASSETS
Cash and due from banks				$	72,408		$	51,403		$	37,712
			Total cash and cash equivalents		72,408			51,403			37,712

Investment securities:
	Available-for-sale, less allowance for credit losses of $23, $36 and $53
		(at fair value; amortized cost of $79,827, $80,887 and $96,973)			68,737			68,228			83,832

Loans, less allowance for credit losses of $13,625, $13,693 and $15,487					877,354			905,075			917,685
Bank premises and equipment, net					5,057			5,155			5,287
Investment in Federal Home Loan Bank stock (FHLB), at cost					5,889			5,889			5,541
Goodwill					–			–			4,119
Other Real Estate Owned					4,437			4,437			–
Affordable housing tax credit investments					7,202			7,413			8,165
Accrued interest receivable and other assets					22,279			19,494			17,850

			Total assets	$	1,063,363		$	1,067,094		$	1,080,191

LIABILITIES AND
SHAREHOLDERS’ EQUITY
Deposits:
	Demand – non interest-bearing			$	198,736		$	185,756		$	179,328
	Demand – interest-bearing				192,764			193,355			222,313
	Savings				39,000			47,235			48,214
	Money market				212,900			226,879			222,153
	Time deposits that meet or exceed the FDIC insurance limit				93,154			70,717			65,763
	Other time deposits				220,511			238,620			201,431
			Total deposits		957,065			962,562			939,202

Federal Home Loan Bank advances					–			–			28,600
Junior subordinated debt					5,938			5,935			5,924
Affordable housing commitment					511			511			4,094
Accrued interest payable and other liabilities					4,508			6,363			4,493

			Total liabilities		968,022			975,371			982,313

Shareholders’ equity
	Preferred stock, no par value; 20,000,000 shares authorized;
		no shares issued and outstanding			–			–			–
	Common stock, no par value; shares authorized – 30,000,000 shares;
		issued and outstanding 6,776,563, 6,776,563 and 6,784,099			37,803			37,740			37,552
	Retained earnings				65,364			62,869			69,539
	Accumulated other comprehensive loss, net				(7,826	)		(8,886	)		(9,213	)

			Total shareholders’ equity		95,341			91,723			97,878

			Total liabilities and shareholders’ equity	$	1,063,363		$	1,067,094		$	1,080,191

Financial Summary
(Dollars in thousands except per share data)
	As of and for the
	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(Unaudited)			(Unaudited)			(Unaudited)
Statement of Income Data:
Net interest income	$	8,078		$	7,702		$	7,407
(Reversal of) provision for credit losses on loans		(577	)		6,570			(15	)
(Reversal of) provision for credit losses on unfunded loan commitments		(38	)		154			(65	)
(Reversal of) credit losses on investments		(13	)		(2	)		(5	)
Non-interest income		646			680			948
Non-interest expense		6,253			10,199			6,400
Provision for income tax expense (benefit)		605			(1,398	)		645
Net income (loss)	$	2,494		$	(7,141	)	$	1,395

Selected per Common Share Data:
Basic earnings (loss) per common share	$	0.37		$	(1.06	)	$	0.21
Diluted earnings (loss) per common share	$	0.37		$	(1.06	)	$	0.21
Dividend per share	$	–		$	–		$	0.12
Book value per common share (1)	$	14.07		$	13.53		$	14.43

Selected Balance Sheet Data:
Assets	$	1,063,363		$	1,067,094		$	1,080,191
Loans, net		877,354			905,075			917,685
Deposits		957,065			962,562			939,202
Average assets		1,059,902			1,098,885			1,087,960
Average earning assets		1,028,563			1,064,872			1,057,338
Average shareholders’ equity		93,620			101,307			97,471
Nonperforming loans		17,447			27,754			41,548
Net loans recovered (charged-off)		509			(8,343	)		281
Other real estate owned		4,437			4,437			–
Total nonperforming assets		21,884			32,191			41,548

Selected Ratios:
Return (loss) on average assets (2)		0.95	%		-2.59	%		0.51	%
Return (loss) on average common shareholders’ equity (2)		10.80	%		-28.04	%		5.74	%
Efficiency ratio (3)		71.68	%		121.76	%		76.60	%
Net interest margin (2)		3.18	%		2.88	%		2.81	%
Common equity tier 1 capital ratio		10.47	%		10.14	%		10.37	%
Tier 1 capital ratio		10.47	%		10.14	%		10.37	%
Total capital ratio		12.22	%		11.89	%		12.24	%
Tier 1 leverage ratio		9.45	%		8.87	%		9.21	%
Common dividend payout ratio (4)		0.00	%		0.00	%		58.27	%
Average shareholders’ equity to average assets		8.83	%		9.22	%		8.96	%
Nonperforming loans to total loans		1.96	%		3.02	%		4.45	%
Nonperforming assets to total assets		2.06	%		3.02	%		3.85	%
Allowance for credit losses to total loans		1.53	%		1.49	%		1.66	%
Allowance for credit losses to nonperforming loans		78.09	%		49.34	%		37.27	%

(1) Total shareholders’ equity divided by total common shares outstanding.
(2) Annualized.
(3) Non-interest expenses to net interest and non-interest income, net of securities gains.
(4) Common dividends divided by net income available for common shareholders.

Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

The MIL Network –

April 30, 2025

MIL-OSI: Riverview Bancorp Reports Net Income of $1.1 Million in Fourth Fiscal Quarter 2025 and $4.9 Million for Fiscal 2025

Source: GlobeNewswire (MIL-OSI)

FISCAL Q4 2025 HIGHLIGHTS


$1.1 Million	$0.05	$6.33	0.01%
Net Income	Diluted Earnings per Common Share	Tangible Book Value per Share	NPAs to Total Assets

Fiscal Quarter Comparison Highlights
Net Interest Income and Net Interest Margin	$9.2 million net interest income for the quarter compared to $8.6 million in Fiscal Q4 2024 Net interest margin at 2.65% for the quarter compared to 2.32% in Fiscal Q4 2024	Credit Quality	Non-performing assets at 0.01% of total assets and 0.01% of total loans – similar to year ago quarter No provision booked for the quarter and net recoveries were minimal

Non-Interest Income and Non-Interest Expense	Non-interest income of $3.7 million for the quarter compared to $494 thousand in Fiscal Q4 2024 (due to strategic investment restructure) Non-interest expense of $11.4 million for the quarter compared to $13.1 million in Fiscal Q4 2024	Shareholder Returns and Stock Activity	On April 25, 2025, the Company paid a cash dividend of $0.02 per share $2.0 million stock repurchase plan completed during the quarter

VANCOUVER, Wash., April 29, 2025 (GLOBE NEWSWIRE) — Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $1.1 million, or $0.05 per diluted share, in the fourth fiscal quarter ended March 31, 2025, compared to $1.2 million, or $0.06 per diluted share, in the third fiscal quarter ended December 31, 2024. During the fourth fiscal quarter of 2024, Riverview strategically restructured a portion of its balance sheet resulting in an after-tax impact of $2.1 million and recorded $2.3 million in non-interest expense related to a litigation charge. Including the effects of the investment portfolio restructuring and litigation charge, Riverview reported a net loss of $3.0 million, or $0.14 per diluted share, in the fourth fiscal quarter ended March 31, 2024.

For fiscal 2025, net income was $4.9 million, or $0.23 per diluted share, compared to $3.8 million, or $0.18 per diluted share, for fiscal 2024.

“We closed out our fiscal fourth quarter and fiscal year end on solid footing despite the economic uncertainty and market volatility impacting all banks,” stated Nicole Sherman, President and Chief Executive Officer. “Riverview’s operating performance during the quarter once again reflected steady improvements, with net interest margin expansion as a result of stabilizing funding costs and higher loan yields compared to a year ago. Loan growth was strong during the quarter, and I am proud of our team’s relationship-focused approach to clients and prospects which resulted in loan production outperforming the previous four quarters. A top priority remains improving our operating performance while also being the bank of choice to our SW Washington and NW Oregon clients that we have served for over 100 years. With our strong capital levels, disciplined credit culture and stable balance sheet, we have a great foundation to build upon in fiscal 2026.

Riverview recently completed our three-year strategic plan focusing on profitable growth, digital leadership, and data empowerment, with our employees, clients, and communities being seen, heard, and valued in everything we do. We continue to expand revenue opportunities through our C&I, business banking, and treasury management initiatives. Strategic investments in people and technology will be important, while managing operating expenses. At Riverview we are unwavering in our dedication to exceed the needs of our employees, clients, shareholders and all stakeholders,” Sherman concluded.

Fourth Quarter Highlights (at or for the period ended March 31, 2025)

Net interest income was $9.2 million for the quarter, compared to $9.4 million in the preceding quarter and $8.6 million in the fourth fiscal quarter a year ago.
Net interest margin (“NIM”) was 2.65% for the quarter, a five basis point improvement compared to the preceding quarter and a 33 basis point improvement compared to the year ago quarter.
Riverview Trust Company assets under management were $877.9 million at March 31, 2025. Asset management fees continue to improve and increased to $1.5 million for the quarter ended March 31, 2025.
Asset quality remained strong, with non-performing assets at $155,000, or 0.01% of total assets at March 31, 2025.
Riverview recorded no provision for credit losses during the current quarter, the preceding quarter, or in the year ago quarter.
Tangible book value per share (non-GAAP) was $6.33 at March 31, 2025 compared to $6.20 at December 31, 2024.

Fiscal 2025 Highlights (at or for the period ended March 31, 2025)

Total loans increased to $1.06 billion at March 31, 2025 compared to $1.02 billion at March 31, 2024.
Total deposits were $1.23 billion at both March 31, 2025 and March 31, 2024.
Tangible book value per share (non-GAAP) was $6.33 at March 31, 2025 compared to $6.07 at March 31, 2024.
Net income increased to $4.9 million for the fiscal year ended March 31, 2025 compared to $3.8 million for the fiscal year ended March 31, 2024.
Return on average assets for the fiscal year ended March 31, 2025 increased to 0.32% compared to 0.24% for the fiscal year ended March 31, 2024.

Income Statement Review

Riverview’s net interest income was $9.2 million in the current quarter, compared to $9.4 million in the preceding quarter, and $8.6 million in the fourth fiscal quarter a year ago. The decrease compared to the preceding quarter was primarily due to the recognition of a loan prepayment fee and related loan fees totaling $318,000 during the preceding quarter. The increase compared to the year ago quarter was driven by higher interest earning asset yields due to higher origination rates on new loan growth as well as loan repricing. In fiscal 2025, net interest income was $36.3 million, compared to $38.1 million in fiscal 2024. The decrease is attributed to the increase in interest expense over the respective periods. Investment income decreased compared to the year ago period due to the strategic investment restructuring that was executed in the fourth quarter of fiscal 2024.

Riverview’s NIM was 2.65% for the fourth quarter of fiscal 2025, a five basis point increase compared to 2.60% in the preceding quarter and a 33 basis-point increase compared to 2.32% in the fourth quarter of fiscal 2024. “Our NIM improved during the quarter, compared to the preceding quarter, as the decrease in funding costs more than offset the modest decrease in asset yields. The preceding quarter’s loan yield included the favorable impact from the recognition of the previously mentioned loan prepayment fee and related loan fees,” said David Lam, EVP and Chief Financial Officer. “With the Federal Reserve rate reductions implemented near the end of 2024, we anticipate deposit costs to further stabilize in future quarters. Additionally, the rate cuts reduced the interest expense on borrowings, which also benefitted NIM during the fourth quarter.” In fiscal 2025, the net interest margin was 2.54% compared to 2.56% in fiscal 2024.

Investment securities decreased $14.7 million during the quarter to $322.5 million at March 31, 2025, compared to $337.2 million at December 31, 2024, and decreased $50.2 million compared to $372.7 million at March 31, 2024. The average securities balances for the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, were $346.0 million, $364.2 million, and $444.1 million, respectively. The weighted average yields on securities balances for those same periods were 1.84%, 1.82%, and 2.02%, respectively. The duration of the investment portfolio at March 31, 2025, was approximately 5.1 years. The anticipated investment cashflows over the next twelve months is approximately $37.4 million. There were no investment purchases during the fourth fiscal quarter of 2025.

Riverview’s yield on loans was 4.91% during the fourth fiscal quarter, compared to 4.97% in the preceding quarter, and 4.63% in the fourth fiscal quarter a year ago. “Loan yields declined during the current quarter compared to the prior quarter due to the impact on the loan yield in the prior quarter from the recognition of the loan prepayment and related loan fees. Compared to a year ago, loan yields have increased as a result of the current yield curve which has resulted in higher yields on loans when compared to the existing loan portfolio. We continue to explore opportunities to enhance our loan yield by expanding our commercial business portfolio offerings to include more variable rate loan structures,” said Mike Sventek, EVP and Chief Lending Officer. Deposit costs improved to 1.30% during the fourth fiscal quarter compared to 1.32% in the preceding quarter and increased compared to 1.00% in the fourth fiscal quarter a year ago. The increase from clients seeking higher deposit yields has moderated quarter over quarter compared to the increase from the fourth fiscal quarter a year ago given the relative change in the interest rate environment during those respective periods.

Non-interest income increased to $3.7 million during the fourth fiscal quarter of 2025 compared to $3.3 million in the preceding quarter and $494,000 in the fourth fiscal quarter of 2024. Non-interest income during the quarter included a $261,000 BOLI death benefit. The fourth fiscal quarter of 2024 included a $2.7 million loss on the sale of investment securities from the balance sheet restructure. In fiscal 2025, non-interest income increased to $14.3 million compared to $10.2 million in fiscal 2024.

Asset management fees were $1.5 million during the fourth fiscal quarter, compared to $1.4 million in both the third fiscal quarter and in the fourth fiscal quarter a year ago. Asset management fees from new client relationships more than offset a volatile market performance during the fourth fiscal quarter. Riverview Trust Company’s assets under management were $877.9 million at March 31, 2025, compared to $872.6 million at December 31, 2024, and $961.8 million at March 31, 2024.

Non-interest expense was $11.4 million during the fourth fiscal quarter, compared to $11.2 million in the preceding quarter and $13.1 million in the fourth fiscal quarter a year ago. Salary and employee benefits, the largest component of non-interest expense, increased during the current quarter compared to the preceding quarter due to open positions being filled. Professional fees increased during the current quarter compared to the preceding quarter due to higher consulting fees. The efficiency ratio was 88.7% for the fourth fiscal quarter, compared to 87.6% for the preceding quarter and 144.9% in the fourth fiscal quarter a year ago. In fiscal 2025, non-interest expense was $44.3 million compared to $43.7 million in fiscal 2024.

Riverview’s effective tax rate for the fourth fiscal quarter of 2025 was 21.5%, compared to 21.8% for the preceding quarter and (27.0)% for the year ago quarter.

Balance Sheet Review

Total loans increased $17.4 million during the quarter to $1.06 billion at March 31, 2025, compared to $1.05 billion three months earlier and increased $38.4 million compared to $1.02 billion a year earlier. Riverview’s loan pipeline was $41.1 million at March 31, 2025, compared to $49.1 million at the end of the preceding quarter and $18.4 million at March 31, 2024. New loan originations during the quarter increased to $49.4 million, compared to $31.1 million in the preceding quarter and $12.7 million in the fourth fiscal quarter a year ago.

Undisbursed construction loans totaled $18.2 million at March 31, 2025, compared to $19.5 million at December 31, 2024, with the majority of the undisbursed construction loans expected to be funded over the next several quarters. Undisbursed homeowner association loans for the purpose of common area maintenance and repairs totaled $18.3 million at March 31, 2025, compared to $14.5 million at December 31, 2024. Revolving commercial business loan commitments totaled $48.9 million at March 31, 2025, compared to $46.9 million at December 31, 2024. Utilization on these loans totaled 28.90% at March 31, 2025, compared to 17.60% at December 31, 2024. The weighted average rate on loan originations during the quarter was 7.16% compared to 7.04% in the preceding quarter. Loan repricing and maturities with respective weighted average rate for fiscal year 2026 totaled $76.6 million with a weighted average rate of 4.65%. Looking ahead, loan repricing and maturities for fiscal year 2027 total $77.1 million with a weighted average rate of 4.03%, for fiscal year 2028 total $96.2 million with a weighted average rate of 5.42% and in aggregate for fiscal years after 2028 total $108.3 million with a weighted average rate of 6.09%.

The office building loan portfolio totaled $110.9 million at March 31, 2025, compared to $113.4 million at December 31, 2024. The average loan balance of the office building loan portfolio was $1.5 million with an average loan-to-value ratio of 53.5% and an average debt service coverage ratio of 1.80x at March 31, 2025. Office building loans within the Portland core consist of two loans totaling $20.5 million which is approximately 18.5% of the total office building loan portfolio or 1.92% of total loans.

Non-interest checking and interest checking accounts, as a percentage of total deposits, totaled 48.7% at March 31, 2025, compared to 46.8% at December 31, 2024, and 51.9% at March 31, 2024. The increase during the quarter was in part due to Riverview Bank reciprocation of $20 million of balances back from Riverview Trust. Riverview Bank had moved customer deposits to Riverview Trust as a higher yielding deposit alternative and those assets were all retained within the Company during the period of increasing interest rates. CDs decreased during the quarter as Riverview allowed higher cost CDs to run off. Total deposits increased $13.3 million during the quarter to $1.23 billion at March 31, 2025, compared to $1.22 billion at December 31, 2024, and were unchanged compared to a year ago.

FHLB advances decreased $7.8 million during the quarter to $76.4 million at March 31, 2025, compared to $84.2 million at December 31, 2024. FHLB advances decreased during the quarter as a result of the increase in deposits.

Shareholders’ equity increased to $160.0 million at March 31, 2025, compared to $158.3 million three months earlier and $155.6 million one year earlier. Tangible book value per share (non-GAAP) increased to $6.33 at March 31, 2025, compared to $6.20 at December 31, 2024, and $6.07 at March 31, 2024. Riverview paid a quarterly cash dividend of $0.02 per share on April 25, 2025, to shareholders of record on April 14, 2025.

Credit Quality

“Asset quality remains a priority during uncertain economic conditions, and we continue to closely monitor our portfolio mix, loan growth, and local and national conditions to maintain an appropriate allowance,” said Robert Benke, EVP and Chief Credit Officer. Non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP) totaled $155,000 or 0.01% of total loans as of March 31, 2025, compared to $168,000, or 0.02% of total loans at December 31, 2024, and $173,000, or 0.02% of total loans at March 31, 2024. There were no non-performing government guaranteed loans at March 31, 2025, and one non-performing government guaranteed loan totaling $301,000 at December 31, 2024. At March 31, 2025, non-performing assets were $155,000, or 0.01% of total assets.

Riverview recorded $22,000 in net loan recoveries for the current quarter. This compared to $114,000 in net loan charge-offs for the preceding quarter. Riverview recorded no provision for credit losses for the current quarter, or for the preceding quarter.

Classified assets were $2.9 million at March 31, 2025, compared to $226,000 at December 31, 2024, and $723,000 at March 31, 2024. The classified assets to total capital ratio was 1.6% at March 31, 2025, compared to 0.1% at December 31, 2024, and 0.4% a year earlier. The increase in classified assets during the quarter was primarily due to one $2.0 million loan for which a plan is in place to either return to performing status or payoff. Additionally, there was a borrowing relationship with two loans totaling $725,000 that credit administration is working with the borrower to bring current or seek full payoff. Criticized assets were $48.5 million at March 31 2024, compared to $50.4 million at December 31, 2024, and $36.7 million at March 31, 2024. Criticized assets decreased during the current quarter compared to the prior quarter as a result of one loan payoff. The increase compared to a year ago was primarily due to one relationship that was moved to the criticized asset category as the loans go through probate. The Company does not anticipate any loss from this relationship.

The allowance for credit losses was $15.4 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The allowance for credit losses represented 1.45% of total loans at March 31, 2025, compared to 1.47% at December 31, 2024, and 1.50% a year earlier. The allowance for credit losses to loans, net of government guaranteed loans (non-GAAP), was 1.51% at March 31, 2025, compared to 1.54% at December 31, 2024, and 1.58% a year earlier.

Capital/Liquidity

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.27% and a Tier 1 leverage ratio of 11.10% at March 31, 2025. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.93% at March 31, 2025.

Riverview has approximately $471.3 million in available liquidity at March 31, 2025, including $174.0 million of borrowing capacity from the FHLB and $297.3 million from the Federal Reserve Bank of San Francisco (“FRB”). At March 31, 2025, the Bank had $76.4 million in outstanding FHLB borrowings.

The uninsured deposit ratio was 23.4% at March 31, 2025. Available liquidity under the FRB borrowing line would cover nearly 100% of the estimated uninsured deposits and available liquidity under both the FHLB and FRB borrowing lines would cover 163.7% of the estimated uninsured deposits.

On September 25, 2024, the Company’s Board of Directors adopted a stock repurchase program. Under this repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once the repurchase program is effective, the repurchase program will continue until the earlier of the completion of the repurchase or 12 months after the effective date, depending upon market conditions. During the fiscal fourth quarter, the Company repurchased 158,558 shares of common stock at an average price of $5.65. As of February 2, 2025, the Company had completed the full $2.0 million stock repurchase plan, repurchasing 358,631 shares at an average price of $5.53 per share.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

Tangible shareholders’ equity to tangible assets and tangible book value per share:

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

Shareholders’ equity (GAAP)	$	160,014		$	158,270		$	155,588
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(171	)		(196	)		(271	)
Tangible shareholders’ equity (non-GAAP)	$	132,767		$	130,998		$	128,241

Total assets (GAAP)	$	1,513,323		$	1,508,609		$	1,521,529
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(171	)		(196	)		(271	)
Tangible assets (non-GAAP)	$	1,486,076		$	1,481,337		$	1,494,182

Shareholders’ equity to total assets (GAAP)		10.57	%		10.49	%		10.23	%

Tangible common equity to tangible assets (non-GAAP)		8.93	%		8.84	%		8.58	%

Shares outstanding		20,976,200			21,134,758			21,111,043

Book value per share (GAAP)		7.63			7.49			7.37

Tangible book value per share (non-GAAP)		6.33			6.20			6.07


Pre-tax, pre-provision income
	Three Months Ended									Twelve Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024

Net income (loss) (GAAP)	$	1,148		$	1,232		$	(2,968	)	$	4,903	$	3,799
Include: Provision (credit) for income taxes		314			343			(1,095	)		1,335		802
Include: Provision for credit losses		–			–			–			100		–
Pre-tax, pre-provision income (loss) (non-GAAP)	$	1,462		$	1,575		$	(4,063	)	$	6,338	$	4,601


Net income (loss) and earnings (loss) per share excluding securities restructure and litigation expense

	Three Months Ended									Twelve Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024

Net income (loss) (GAAP)	$	1,148		$	1,232		$	(2,968	)	$	4,903	$	3,799
Exclude impact of securities loss restructure, net of tax		–			–			2,074			–		2,074
Exclude impact of litigation expense, net of tax		–			–			1,748			–		1,748
Net income excluding securities restructure and litigation expense (non-GAAP)	$	1,148		$	1,232		$	854		$	4,903	$	7,621

Basic earnings (loss) per share (GAAP)	$	0.05		$	0.06		$	(0.14	)	$	0.23	$	0.18
Exclude impact of securities loss restructure, net of tax		–			–			0.10			–		0.10
Exclude impact of litigation expense, net of tax		–			–			0.08			–		0.08
Basic earnings per share excluding securities restructure and litigation expense (GAAP)	$	0.05		$	0.06		$	0.04		$	0.23	$	0.36

Diluted earnings (loss) per share (GAAP)	$	0.05		$	0.06		$	(0.14	)	$	0.23	$	0.18
Exclude impact of securities loss restructure, net of tax		–			–			0.10			–		0.10
Exclude impact of litigation expense, net of tax		–			–			0.08			–		0.08
Diluted earnings per share excluding securities restructure and litigation expense (GAAP)	$	0.05		$	0.06		$	0.04		$	0.23	$	0.36


Allowance for credit losses reconciliation, excluding Government Guaranteed loans

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

Allowance for credit losses	$	15,374		$	15,352		$	15,364

Loans receivable (GAAP)	$	1,062,460		$	1,045,109		$	1,024,013
Exclude: Government Guaranteed loans		(47,373	)		(49,024	)		(51,013	)
Loans receivable excluding Government Guaranteed loans (non-GAAP)	$	1,015,087		$	996,085		$	973,000

Allowance for credit losses to loans receivable (GAAP)		1.45	%		1.47	%		1.50	%

Allowance for credit losses to loans receivable excluding Government Guaranteed loans (non-GAAP)		1.51	%		1.54	%		1.58	%


Non-performing loans reconciliation, excluding Government Guaranteed Loans

	Three Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Non-performing loans (GAAP)	$	155		$	469		$	178
Less: Non-performing Government Guaranteed loans		–			(301	)		(5	)
Adjusted non-performing loans excluding Government Guaranteed loans (non-GAAP)	$	155		$	168		$	173

Non-performing loans to total loans (GAAP)		0.01	%		0.04	%		0.02	%

Non-performing loans, excluding Government Guaranteed loans to total loans (non-GAAP)		0.01	%		0.02	%		0.02	%

Non-performing loans to total assets (GAAP)		0.01	%		0.03	%		0.01	%

Non-performing loans, excluding Government Guaranteed loans to total assets (non-GAAP)		0.01	%		0.01	%		0.01	%

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.51 billion at March 31, 2025, it is the parent company of Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial, business and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements which include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession, the failure of the U.S. Congress to increase the debt ceiling, or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as supply chain disruptions, recent bank failures and any governmental or societal responses thereto; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; the transition away from London Interbank Offered Rate toward new interest rate benchmarks; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; results of examinations of the Bank by the Federal Deposit Insurance Corporation and the Washington State Department of Financial Institutions, Division of Banks, and of the Company by the Board of Governors of the Federal Reserve System, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the Company to increase its allowance for credit losses, write-down assets, reclassify its assets, change the Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in banking, securities and tax law, and in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; the unexpected outflow of uninsured deposits that may require us to sell investment securities at a loss; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; disruptions, security breaches or other adverse events, failures or interruptions in or attacks on our information technology systems or on the third-party vendors who perform several of our critical processing functions; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to implement its business strategies; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames; future goodwill impairment due to changes in Riverview’s business, changes in market conditions, or other factors; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; the quality and composition of our securities portfolio and the impact of and adverse changes in the securities markets, including market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting standards; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services, and the other risks described from time to time in our reports filed with and furnished to the U.S. Securities and Exchange Commission.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information or to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s consolidated financial condition and consolidated results of operations as well as its stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets


(In thousands, except share data) (Unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS

Cash (including interest-earning accounts of $14,375, $12,573,	$	29,414		$	25,348		$	23,642
and $12,164)
Investment securities:
Available for sale, at estimated fair value		119,436			124,874			143,196
Held to maturity, at amortized cost		203,079			212,295			229,510
Loans receivable (net of allowance for credit losses of $15,374,
$15,352 and $15,364)		1,047,086			1,029,757			1,008,649
Prepaid expenses and other assets		12,523			12,945			14,469
Accrued interest receivable		4,525			4,639			4,415
Federal Home Loan Bank stock, at cost		4,342			4,742			4,927
Premises and equipment, net		22,304			22,731			21,718
Financing lease right-of-use assets		1,125			1,144			1,202
Deferred income taxes, net		8,625			9,471			9,778
Goodwill		27,076			27,076			27,076
Core deposit intangible, net		171			196			271
Bank owned life insurance		33,617			33,391			32,676

TOTAL ASSETS	$	1,513,323		$	1,508,609		$	1,521,529

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Deposits	$	1,232,328		$	1,219,002		$	1,231,679
Accrued expenses and other liabilities		14,777			17,634			16,205
Advance payments by borrowers for taxes and insurance		614			317			581
Junior subordinated debentures		27,091			27,069			27,004
Federal Home Loan Bank advances		76,400			84,200			88,304
Finance lease liability		2,099			2,117			2,168
Total liabilities		1,353,309			1,350,339			1,365,941

SHAREHOLDERS’ EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none		–			–			–
Common stock, $.01 par value; 50,000,000 authorized,
March 31, 2025 – 20,976,200 issued and outstanding;
December 31, 2024 – 21,134,758 issued and outstanding;		208			209			211
March 31, 2024 – 21,111,043 issued and outstanding;
Additional paid-in capital		53,392			54,227			55,005
Retained earnings		119,717			118,988			116,499
Accumulated other comprehensive loss		(13,303	)		(15,154	)		(16,127	)
Total shareholders’ equity		160,014			158,270			155,588

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,513,323		$	1,508,609		$	1,521,529

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended							Twelve Months Ended
(In thousands, except share data) (Unaudited)	March 31, 2025		Dec. 31, 2024		March 31, 2024			March 31, 2025		March 31, 2024
INTEREST INCOME:
Interest and fees on loans receivable	$	12,685	$	13,201	$	11,743		$	50,621	$	46,031
Interest on investment securities – taxable		1,484		1,589		2,145			6,918		8,971
Interest on investment securities – nontaxable		64		65		65			260		261
Other interest and dividends		261		272		338			1,163		1,292
Total interest and dividend income		14,494		15,127		14,291			58,962		56,555

INTEREST EXPENSE:
Interest on deposits		3,910		4,101		3,021			15,313		8,285
Interest on borrowings		1,391		1,638		2,718			7,305		10,184
Total interest expense		5,301		5,739		5,739			22,618		18,469
Net interest income		9,193		9,388		8,552			36,344		38,086
Provision for credit losses		–		–		–			100		–

Net interest income after provision for credit losses		9,193		9,388		8,552			36,244		38,086

NON-INTEREST INCOME:
Fees and service charges		1,446		1,492		1,398			6,002		6,269
Asset management fees		1,472		1,443		1,408			5,906		5,328
Bank owned life insurance (“BOLI”)		226		225		222			941		891
BOLI death benefit in excess of cash surrender value		261		–		–			261		–
Loss on sale of investment securities		–		–		(2,729	)		–		(2,729	)
Other, net		302		181		195			1,146		483
Total non-interest income, net		3,707		3,341		494			14,256		10,242

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,763		6,471		6,225			26,099		24,204
Occupancy and depreciation		1,873		1,871		1,942			7,560		6,872
Data processing		746		743		686			2,948		2,782
Amortization of core deposit intangible		25		25		27			100		108
Advertising and marketing		284		317		326			1,278		1,276
FDIC insurance premium		170		174		178			688		708
State and local taxes		265		327		196			1,042		1,010
Telecommunications		62		54		50			215		211
Professional fees		577		429		414			1,800		1,375
Other		673		743		3,065			2,532		5,181
Total non-interest expense		11,438		11,154		13,109			44,262		43,727

INCOME (LOSS) BEFORE INCOME TAXES		1,462		1,575		(4,063	)		6,238		4,601
PROVISION (CREDIT) FOR INCOME TAXES		314		343		(1,095	)		1,335		802
NET INCOME (LOSS)	$	1,148	$	1,232	$	(2,968	)	$	4,903	$	3,799

Earnings (loss) per common share:
Basic	$	0.05	$	0.06	$	(0.14	)	$	0.23	$	0.18
Diluted	$	0.05	$	0.06	$	(0.14	)	$	0.23	$	0.18
Weighted average number of common shares outstanding:
Basic		21,007,294		21,037,246		21,111,043			21,063,467		21,137,976
Diluted		21,007,294		21,037,246		21,111,043			21,063,467		21,139,322


(Dollars in thousands)	At or for the three months ended									At or for the twelve months ended
	March 31, 2025			Dec. 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024
AVERAGE BALANCES
Average interest–earning assets	$	1,412,406		$	1,436,130		$	1,484,628		$	1,433,071	$	1,492,002
Average interest-bearing liabilities		1,011,116			1,019,265			1,047,712			1,010,592		1,028,042
Net average earning assets		401,290			416,865			436,916			422,479		463,960
Average loans		1,047,718			1,053,342			1,020,457			1,044,370		1,011,420
Average deposits		1,219,130			1,232,450			1,210,818			1,220,120		1,229,011
Average equity		159,766			160,532			158,776			158,570		156,137
Average tangible equity (non-GAAP)		132,506			133,245			131,413			131,271		128,733


ASSET QUALITY	March 31, 2025			Dec. 31, 2024			March 31, 2024

Non-performing loans	$	155		$	469		$	178
Non-performing loans excluding SBA Government Guarantee (non-GAAP)		155			168			173
Non-performing loans to total loans		0.01	%		0.04	%		0.02	%
Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.02	%		0.02	%
Real estate/repossessed assets owned	$	–		$	–		$	–
Non-performing assets	$	155		$	469		$	178
Non-performing assets excluding SBA Government Guarantee (non-GAAP)		155			168			173
Non-performing assets to total assets		0.01	%		0.03	%		0.01	%
Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.01	%		0.01	%
Net loan charge-offs (recoveries) in the quarter	$	(22	)	$	114		$	(3	)
Net charge-offs (recoveries) in the quarter/average net loans		(0.01	)%		0.04	%		0.00	%

Allowance for credit losses	$	15,374		$	15,352		$	15,364
Average interest-earning assets to average
interest-bearing liabilities		139.69	%		140.90	%		141.70	%
Allowance for credit losses to
non-performing loans		9918.71	%		3273.35	%		8631.46	%
Allowance for credit losses to total loans		1.45	%		1.47	%		1.50	%
Shareholders’ equity to assets		10.57	%		10.49	%		10.23	%


CAPITAL RATIOS
Total capital (to risk weighted assets)		16.27	%		16.47	%		16.32	%
Tier 1 capital (to risk weighted assets)		15.01	%		15.21	%		15.06	%
Common equity tier 1 (to risk weighted assets)		15.01	%		15.21	%		15.06	%
Tier 1 capital (to average tangible assets)		11.10	%		10.86	%		10.29	%
Tangible common equity (to average tangible assets) (non-GAAP)		8.93	%		8.84	%		8.58	%


DEPOSIT MIX	March 31, 2025			Dec. 31, 2024			March 31, 2024

Interest checking	$	285,035		$	257,975		$	289,824
Regular savings		168,287			169,181			192,638
Money market deposit accounts		236,044			236,912			209,164
Non-interest checking		315,503			312,839			349,081
Certificates of deposit		227,459			242,095			190,972
Total deposits	$	1,232,328		$	1,219,002		$	1,231,679


COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS

			Other				Commercial
	Commercial		Real Estate		Real Estate		& Construction
	Business		Mortgage		Construction		Total
March 31, 2025	(Dollars in thousands)
Commercial business	$	232,935	$	–	$	–	$	232,935
Commercial construction		–		–		18,368		18,368
Office buildings		–		110,949		–		110,949
Warehouse/industrial		–		114,925		–		114,925
Retail/shopping centers/strip malls		–		88,815		–		88,815
Assisted living facilities		–		358		–		358
Single purpose facilities		–		277,137		–		277,137
Land		–		4,610		–		4,610
Multi-family		–		91,452		–		91,452
One-to-four family construction		–		–		10,814		10,814
Total	$	232,935	$	688,246	$	29,182	$	950,363

March 31, 2024	(Dollars in thousands)
Commercial business	$	229,404	$	–	$	–	$	229,404
Commercial construction		–		–		20,388		20,388
Office buildings		–		114,714		–		114,714
Warehouse/industrial		–		106,649		–		106,649
Retail/shopping centers/strip malls		–		89,448		–		89,448
Assisted living facilities		–		378		–		378
Single purpose facilities		–		272,313		–		272,313
Land		–		5,692		–		5,692
Multi-family		–		70,771		–		70,771
One-to-four family construction		–		–		16,150		16,150
Total	$	229,404	$	659,965	$	36,538	$	925,907




LOAN MIX	March 31, 2025		Dec. 31, 2024		March 31, 2024
Commercial and construction	(Dollars in thousands)
Commercial business	$	232,935	$	224,506	$	229,404
Other real estate mortgage		688,246		657,380		659,965
Real estate construction		29,182		49,956		36,538
Total commercial and construction		950,363		931,842		925,907
Consumer
Real estate one-to-four family		97,683		97,760		96,366
Other installment		14,414		15,507		1,740
Total consumer		112,097		113,267		98,106

Total loans		1,062,460		1,045,109		1,024,013

Less:
Allowance for credit losses		15,374		15,352		15,364
Loans receivable, net	$	1,047,086	$	1,029,757	$	1,008,649


DETAIL OF NON-PERFORMING ASSETS
	Southwest
	Washington		Total
March 31, 2025	(Dollars in thousands)
Commercial business	$	37	$	37
Commercial real estate		88		88
Consumer		30		30
Total non-performing assets	$	155	$	155


	At or for the three months ended									At or for the twelve months ended
SELECTED OPERATING DATA	March 31, 2025			Dec. 31, 2024			March 31, 2024			March 31, 2025			March 31, 2024

Efficiency ratio (4)		88.67	%		87.63	%		144.91	%		87.47	%		90.48	%
Coverage ratio (6)		80.37	%		84.17	%		65.24	%		82.11	%		87.10	%
Return on average assets (1)		0.31	%		0.32	%		(0.76	)%		0.32	%		0.24	%
Return on average equity (1)		2.91	%		3.04	%		(7.52	)%		3.09	%		2.43	%
Return on average tangible equity (1) (non-GAAP)		3.51	%		3.67	%		(9.08	)%		3.74	%		2.95	%

NET INTEREST SPREAD
Yield on loans		4.91	%		4.97	%		4.63	%		4.85	%		4.55	%
Yield on investment securities		1.84	%		1.82	%		2.02	%		1.96	%		2.02	%
Total yield on interest-earning assets		4.17	%		4.18	%		3.88	%		4.12	%		3.80	%

Cost of interest-bearing deposits		1.76	%		1.81	%		1.41	%		1.74	%		0.97	%
Cost of FHLB advances and other borrowings		5.21	%		5.43	%		5.87	%		5.70	%		5.80	%
Total cost of interest-bearing liabilities		2.13	%		2.23	%		2.20	%		2.24	%		1.80	%

Spread (7)		2.04	%		1.95	%		1.68	%		1.88	%		2.00	%
Net interest margin		2.65	%		2.60	%		2.32	%		2.54	%		2.56	%

PER SHARE DATA
Basic earnings (loss) per share (2)	$	0.05		$	0.06		$	(0.14	)	$	0.23		$	0.18
Diluted earnings (loss) per share (3)		0.05			0.06			(0.14	)		0.23			0.18
Book value per share (5)		7.63			7.49			7.37			7.63			7.37
Tangible book value per share (5) (non-GAAP)		6.33			6.20			6.07			6.33			6.07
Market price per share:
High for the period	$	5.75		$	5.88		$	6.40		$	5.88		$	6.48
Low for the period		5.08			4.59			4.53			3.64			4.17
Close for period end		5.65			5.74			4.72			5.65			4.72
Cash dividends declared per share		0.0200			0.0200			0.0600			0.0800			0.2400

Average number of shares outstanding:
Basic (2)		21,007,294			21,037,246			21,111,043			21,063,467			21,137,976
Diluted (3)		21,007,294			21,037,246			21,111,043			21,063,467			21,139,322

(1) Amounts for the periods shown are annualized.
(2) Amounts exclude ESOP shares not committed to be released.
(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest income.
(5) Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contacts:

Nicole Sherman
David Lam
Riverview Bancorp, Inc. 360-693-6650

The MIL Network –

April 30, 2025

MIL-OSI: Franklin Electric Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights

Consolidated net sales of $455.2 million, a decrease of 1% to the prior year
Energy Systems net sales increased 8% while Water Systems net sales were up less than 1% and Distribution net sales declined 3%
Operating income was $44.1 million with operating margin of 9.7%
GAAP fully diluted earnings per share (EPS) was $0.67

FORT WAYNE, Ind., April 29, 2025 (GLOBE NEWSWIRE) — Franklin Electric Co., Inc. today announced its first quarter financial results for fiscal year 2025.

First quarter 2025 net sales were $455.2 million, compared to first quarter 2024 net sales of $460.9 million. First quarter 2025 operating income was $44.1 million, compared to first quarter 2024 operating income of $47.9 million. First quarter 2025 EPS was $0.67, versus EPS in the first quarter 2024 of $0.70.

“Our underlying businesses performed largely as expected in the first quarter. Order trends remain positive, supporting a robust backlog as we enter the second quarter. Furthermore, strong performance in our Energy Systems segment helped offset unfavorable weather impacting our Distribution business, underscoring the value of our diversified global portfolio. One-time expenses associated with our executive transition and recent acquisitions presented earnings headwinds during the quarter, but our operating strength was clear,” commented Joe Ruzynski, Franklin Electric’s CEO.

“During the quarter, we continued to invest in growth by completing two acquisitions, in line with our value creation framework. We look forward to deploying our integration playbook and enhancing the margin profiles of these great businesses. Despite uncertainty in the macroeconomic environment and potential tariffs, we are confident in Franklin Electric’s competitive position with strong brands, leading service, and a healthy operating footprint as we continue to execute our strategic priorities,” concluded Mr. Ruzynski.

Segment Summaries

Water Systems net sales were $287.3 million in the first quarter, an increase of $0.7 million or less than 1 percent compared to the first quarter of 2024. Results were driven by the incremental sales impact of recent acquisitions and higher sales of groundwater products, water treatment products and large dewatering pumps. These sales increases were partially offset by the negative impact of foreign currency translation and lower sales of all other surface products. Water Systems operating income in the first quarter of 2025 was $43.4 million. First quarter 2024 Water Systems operating income was $47.1 million.

Distribution net sales were $141.9 million, a decrease of $5.1 million or 3 percent compared to the first quarter 2024. Sales decreases were driven by lower volumes and continued negative pricing. The Distribution segment operating income in the first quarter 2025 was $2.1 million. First quarter 2024 Distribution operating income was $1.8 million.

Energy Systems net sales were $66.8 million in the first quarter 2025, an increase of $4.7 million or 8 percent compared to the first quarter 2024. Sales increases were driven by higher volumes and price realization. Energy Systems operating income in the first quarter of 2025 was $21.9 million. First quarter 2024 Energy Systems operating income was $18.8 million.

Cash Flow

Net cash flows used in operating activities for the first quarter of 2025 were $19.5 million versus $1.4 million in the same period in 2024.

2025 Guidance

The Company is maintaining its guidance for full year 2025 sales to be in the range of $2.09 billion to $2.15 billion and reducing the low end of its earnings guidance and now expects full year 2025 EPS to be in the range of $3.95 to $4.25.

Earnings Conference Call

A conference call to review earnings and other developments in the business will commence at 9:00 am ET. The first quarter 2025 earnings call will be available via a live webcast. The webcast will be available in a listen only mode by going to:

https://edge.media-server.com/mmc/p/yzximy3p

For those interested in participating in the question-and-answer portion of the call, please register for the call at the link below.

https://register-conf.media-server.com/register/BI5cb1cdcef9da4de38184396c5211b443

All registrants will receive dial-in information and a PIN allowing them to access the live call. It is recommended that you join 10 minutes prior to the event start (although you may register and dial in at any time during the call).

A replay of the conference call will be available from Tuesday, April 29, 2025, through 9:00 am ET on Tuesday, May 6, 2025, by visiting the listen-only webcast link above.

Forward Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including those relating to market conditions or the Company’s financial results, costs, expenses or expense reductions, profit margins, inventory levels, foreign currency translation rates, liquidity expectations, business goals and sales growth, involve risks and uncertainties, including but not limited to, risks and uncertainties with respect to general economic and currency conditions, various conditions specific to the Company’s business and industry, weather conditions, new housing starts, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs, technology factors, integration of acquisitions, litigation, government and regulatory actions, changes in tariffs or the impact of any such changes on the Company’s financial results, the Company’s accounting policies, future trends, epidemics and pandemics, and other risks which are detailed in the Company’s Securities and Exchange Commission filings, included in Item 1A of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ending December 31, 2024, Exhibit 99.1 attached thereto and in Item 1A of Part II of the Company’s Quarterly Reports on Form 10-Q. These risks and uncertainties may cause actual results to differ materially from those indicated by the forward-looking statements. All forward-looking statements made herein are based on information currently available, and the Company assumes no obligation to update any forward-looking statements.

About Franklin Electric

Franklin Electric is a global leader in the production and marketing of systems and components for the movement of water and energy. Recognized as a technical leader in its products and services, Franklin Electric serves customers around the world in residential, commercial, agricultural, industrial, municipal, and fueling applications. Franklin Electric is proud to be named in Newsweek’s lists of America’s Most Responsible Companies and Most Trustworthy Companies for 2024 and America’s Climate Leaders 2024 by USA Today.

Franklin Electric Contact:

Russ Fleeger
Franklin Electric Co., Inc.
InvestorRelations@fele.com


FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(In thousands, except per share amounts)

	First Quarter Ended
	March 31, 2025			March 31, 2024

Net sales	$	455,247		$	460,900

Cost of sales		291,344			297,320

Gross profit		163,903			163,580

Selling, general, and administrative expenses		119,643			115,644

Restructuring expense		159			–

Operating income		44,101			47,936

Interest expense		(1,799	)		(1,448	)
Other income, net		843			706
Foreign exchange expense, net		(1,293	)		(4,880	)

Income before income taxes		41,852			42,314

Income tax expense		10,478			9,222

Net income	$	31,374		$	33,092

Less: Net income attributable to noncontrolling interests		(412	)		(133	)

Net income attributable to Franklin Electric Co., Inc.	$	30,962		$	32,959

Earnings per share:
Basic	$	0.67		$	0.71
Diluted	$	0.67		$	0.70

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)

(In thousands)

	March 31, 2025		December 31, 2024
ASSETS

Cash and cash equivalents	$	83,994	$	220,540
Receivables (net)		271,688		226,826
Inventories		560,338		483,875
Other current assets		40,627		32,950
Total current assets		956,647		964,191

Property, plant, and equipment, net		236,732		223,566
Lease right-of-use assets, net		60,294		62,637
Goodwill and other assets		675,199		570,212
Total assets	$	1,928,872	$	1,820,606


LIABILITIES AND EQUITY

Accounts payable	$	190,295	$	157,046
Accrued expenses and other current liabilities		125,316		139,989
Current lease liability		18,688		18,878
Current maturities of long-term debt and short-term borrowings		149,730		117,814
Total current liabilities		484,029		433,727

Long-term debt		14,858		11,622
Long-term lease liability		41,382		43,304
Deferred income taxes		32,718		10,193
Employee benefit plans		30,046		29,808
Other long-term liabilities		24,544		22,118

Redeemable noncontrolling interest		1,373		1,224

Total equity		1,299,922		1,268,610
Total liabilities and equity	$	1,928,872	$	1,820,606

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended
(In thousands)
	March 31, 2025			March 31, 2024
Cash flows from operating activities:
Net income	$	31,374		$	33,092
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		14,433			13,792
Non-cash lease expense		5,241			5,194
Share-based compensation		4,962			4,042
Other		1,080			4,036
Changes in assets and liabilities:
Receivables		(29,376	)		(43,365	)
Inventory		(43,669	)		(28,105	)
Accounts payable and accrued expenses		(3,744	)		8,576
Operating leases		(5,091	)		(5,305	)
Other		5,322			6,681

Net cash flows from operating activities		(19,468	)		(1,362	)

Cash flows from investing activities:
Additions to property, plant, and equipment		(6,836	)		(9,184	)
Proceeds from sale of property, plant, and equipment		397			102
Acquisitions and investments		(109,687	)		(1,151	)
Other investing activities		9			17

Net cash flows from investing activities		(116,117	)		(10,216	)

Cash flows from financing activities:
Net change in debt		20,366			11,397
Proceeds from issuance of common stock		1,438			4,050
Purchases of common stock		(6,902	)		(9,047	)
Dividends paid		(13,160	)		(12,395	)
Deferred payments for acquisitions		(4,300	)		(348	)

Net cash flows from financing activities		(2,558	)		(6,343	)

Effect of exchange rate changes on cash and cash equivalents		1,597			(1,728	)
Net change in cash and cash equivalents		(136,546	)		(19,649	)
Cash and cash equivalents at beginning of period		220,540			84,963
Cash and cash equivalents at end of period	$	83,994		$	65,314

Key Performance Indicators: Net Sales Summary

	Net Sales
	United States			Latin			Europe, Middle			Asia			Total
(in millions)	& Canada			America			East & Africa			Pacific			Water			Energy			Distribution			Other/Elims			Consolidated

Q1 2024	$172.7			$41.3			$52.3			$20.3			$286.6			$62.1			$147.0			($34.8		)	$460.9
Q1 2025	$175.7			$39.5			$51.5			$20.6			$287.3			$66.8			$141.9			($40.8		)	$455.2
Change	$3.0			($1.8		)	($0.8		)	$0.3			$0.7			$4.7			($5.1		)	($6.0		)	($5.7		)
% Change		2	%		-4	%		-2	%		1	%		0	%		8	%		-3	%					-1	%

Foreign currency translation, net *	($1.3		)	($3.6		)	($1.2		)	($1.0		)	($7.1		)	($0.2		)	$0.0						($7.3		)
% Change		-1	%		-9	%		-2	%		-5	%		-2	%		0	%		0	%					-2	%

Acquisitions	$1.2			$3.1			$0.0			$1.4			$5.7			$0.0			$0.0						$5.7
% Change		1	%		8	%		0	%		7	%		2	%		0	%		0	%					1	%

Volume/Price	$3.1			($1.3		)	$0.4			($0.1		)	$2.1			$4.9			($5.1		)	($6.0		)	($4.1		)
% Change		2	%		-3	%		1	%		0	%		1	%		8	%		-3	%		-17	%		-1	%

*The Company has presented local currency price increases used to offset currency devaluation in the Argentina and Turkey highly inflationary economies within the foreign currency translation, net row above.

Key Performance Indicators: Operating Income and Margin Summary

Operating Income and Margins
(in millions)	For the First Quarter 2025
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	43.4		$	21.9		$	2.1		$	(23.3	)	$	44.1
% Operating Income To Net Sales		15.1	%		32.8	%		1.5	%					9.7	%

Operating Income and Margins
(in millions)	For the First Quarter 2024
	Water			Energy			Distribution			Other/Elims			Consolidated
Operating Income / (Loss)	$	47.1		$	18.8		$	1.8		$	(19.8	)	$	47.9
% Operating Income To Net Sales		16.4	%		30.3	%		1.2	%					10.4	%

The MIL Network –

April 30, 2025

MIL-OSI: MoneyHero Group Reports Fourth Quarter and Full Year 2024 Results

Source: GlobeNewswire (MIL-OSI)

Q4 net loss narrowed sharply to US$(18.8) million
Q4 Adjusted EBITDA loss improved to US$(2.9) million

SINGAPORE, April 29, 2025 (GLOBE NEWSWIRE) — MoneyHero Limited (Nasdaq: MNY) (“MoneyHero” or the “Company”), a leading personal finance aggregation and comparison platform, as well as a digital insurance brokerage provider in Greater Southeast Asia, today announced its financial results for the fourth quarter and full year ended December 31, 2024.

Management Commentary:

Rohith Murthy, Chief Executive Officer, stated:

“We closed out 2024 with a robust quarter of financial and operational results, making clear progress on our path towards profitability as we continue to focus on diversifying our revenue mix toward high-margin products, lowering operating expenses, and improving operational efficiency. Net loss narrowed sharply to US$(18.8) million from US$(94.3) million during the same period last year, and Adjusted EBITDA loss during the quarter improved substantially to US$(2.9) million – our best quarterly performance since going public. With registered members and approved applications increasing 42% and 21% year-over-year in 2024, we are confident in our ability to build upon this momentum and regain topline growth momentum with US$100 million in revenue and generate positive adjusted EBITDA on a quarterly basis in the second half of 2025.

In Q2 2024, we outlined five strategic pillars—Consumer Pull, Conversion Expertise, Operating Leverage, Strong Provider Partnerships, and Insurance Brokerage—and we’ve made meaningful progress across all of these. We launched seamless, end-to-end purchasing journeys in Travel and Car Insurance, substantially streamlined our operating model to create a leaner, lower-cost base, deepened banking partnerships following a major provider’s exit from key markets and significantly accelerated our insurance growth through targeted strategic collaborations.

These results directly reflect the impact our ‘efficiency’ strategy is having on building a more focused, resilient, and profitable business. We remain the largest credit card digital acquisition partner for the majority of banks across our geographies and are leveraging this strong market position to strategically broaden our focus toward high-margin verticals to improve revenue quality. Insurance revenue grew 40% in 2024 and now accounts for 10% of total revenue while wealth products revenue grew 138%, driven by strong demand for stock and bank account products. These verticals strengthen our margin profile while generating consistent and recurring revenue streams, both of which are key pillars of long-term sustainability. We also laid the foundation for scalable growth by materially lowering operating expenses and improving unit economics with an optimized cost structure across all markets, streamlined operations, and reduced paid marketing and rewards spend.

Looking ahead to 2025, we will maintain our focus on scaling high-margin verticals, particularly insurance, while continuing to tighten cost controls and simplifying workflows. Our product and tech strategy continues to follow a ‘buy-over-build’ philosophy, enabling faster innovation through strategic partnerships, including new initiatives in AI and automation that are already underway.

Our commitment to becoming an AI-first organization is already translating into several impactful initiatives across the business. We are actively working on deploying AI-powered customer service tools designed to significantly reduce inquiry volumes and achieve higher first-contact resolution rates. Additionally, we are piloting generative AI solutions to accelerate and scale content production efficiently. Throughout the organization, we are exploring opportunities to automate workflows using advanced AI tools and agentic AI to boost productivity, reduce operational overhead, and enable our teams to focus more strategically.

With a debt-free balance sheet, US$42.5 million in cash and cash equivalents, and a more efficient and scalable business model, we are well-equipped to capture a greater share of a large and growing addressable market and deliver sustainable, long-term value to shareholders.”

Danny Leung, interim Chief Financial Officer, added:

“Our strong results in the fourth quarter demonstrate the effectiveness of our strategy as we continue to make significant strides in the diversification of our revenue mix, expand partnerships with other key providers, and broaden our product offerings. We believe these adjustments position us well for sustained growth, and as providers scale their operations in different regions, we see opportunities to further strengthen our revenue base and deepen our market presence with them.

This quarter, we remained focused on executing our growth strategy and commenced our comprehensive reorganization and restructuring exercise to streamline operations and reduce costs. Our investments this quarter were squarely focused on customer acquisition, technology re-platforming, and data infrastructure, to build a solid foundation for future growth and profitability. These strategic investments were balanced by initiatives to streamline other aspects of our operations designed to enhance efficiency and drive returns.

Looking ahead, we expect adjusted EBITDA to consistently improve, building on the significant progress we made during the fourth quarter. With margins steadily improving, we are well-positioned to drive growth momentum heading into 2025, strengthening our confidence to generate positive Adjusted EBITDA on a quarterly basis in the second half of 2025. Our comprehensive review of our organizational structure, completed alongside a successful reorganization this year, has strengthened our operational foundation and set the stage for continued sustainable growth.”

Fourth Quarter 2024 Financial Highlights

Revenue decreased by 40% year-over-year to US$15.7 million in the fourth quarter of 2024, driven primarily by a shift in focus toward diversifying revenue mix toward high-margin products such as insurance and wealth products, and the high base effect set during the same period last year with increased investment in marketing and customer acquisition to expand market share.
- Revenue from insurance products increased by 10% year-over-year to US$2.1 million in the fourth quarter of 2024, accounting for 14% of total revenue, compared to 7% during the same period last year.
- Revenue from wealth products increased by 195% year-over-year to US$2.4 million in the fourth quarter of 2024, accounting for 15% of total revenue, compared to 3% during the same period last year.
Cost of revenue decreased by 62% year-over-year to US$6.6 million, with advertising and marketing expenses decreasing by 23% year-over-year in the fourth quarter of 2024, as the Company focused on scaling higher margin verticals and optimizing rewards costs associated with the credit cards vertical and paid marketing spend across all markets.
Total operating costs and expenses, excluding net foreign exchange differences, decreased to US$25.2 million in the fourth quarter of 2024 from US$45.6 million during the same period last year. Operating costs and expenses in the fourth quarter of 2023 included significant transaction costs associated with the listing as well as certain write-offs of intangible assets which are further detailed in the adjusted EBITDA reconciliation below.
Foreign exchange loss of US$8.9 million in the fourth quarter of 2024 was driven by the weakening of local currencies against the US dollar from end September 2024 to end December 2024.
Net loss for the period narrowed sharply to US$(18.8) million during the fourth quarter of 2024, compared to US$(94.3) million in the same period last year, primarily due to non-operating expenses including share-based payments to effect the merger with Bridgetown Holdings and finance costs.
Adjusted EBITDA loss improved to US$(2.9) million in the fourth quarter of 2024 from US$(4.6) million in the prior year period.

Full Year 2024 Financial Highlights

Revenue decreased by 1% year-over-year to US$79.5 million for the full year 2024, driven primarily by a shift in focus toward profitability by diversifying revenue mix toward high-margin products starting in the second half of 2024.
- Revenue from insurance products increased by 40% year-over-year to US$8.2 million for the year 2024, accounting for 10% of total revenue, compared to 7% in the prior year.
- Revenue from wealth products increased by 138% year-over-year to US$8.5 million for the year 2024, fueled by growth of stock account and bank account verticals.
Total operating costs and expenses, excluding net foreign exchange differences, increased by 3% year-over-year to US$114.9 million for the year 2024, primarily due to higher advertising and marketing expenses.
Net loss for the full year 2024 narrowed sharply to US$(37.8) million from US$(172.6) million in the prior year. Net loss for the full year 2023 includes US$143.4 million in non-operating expenses associated with share-based payments to effect the merger with Bridgetown Holdings, finance costs and changes in fair value of financial instruments.
Adjusted EBITDA loss was US$(23.7) million for the full year 2024, compared to US$(6.8) million in the prior year, largely attributable to strategic investments in marketing and customer acquisition during the first half of the year as well as increased operating costs associated with being a public company.
As of December 31, 2024, the Company had a debt-free balance sheet with US$42.5 million in cash and cash equivalents.

Fourth Quarter and Full Year 2024 Operational Highlights

Monthly Unique Users for the three months ended December 31, 2024 of 6.2 million
MoneyHero Group Members, to whom the Company provides more tailored product information and recommendations, grew by 42% year-over-year to 7.5 million as of December 31, 2024
Approved Application volumes increased by 21% year-over-year in 2024 to 767,000, driven by strong growth in the Company’s insurance products

Capital Structure

The table below summarizes the capital structure of the Company as of December 31, 2024:

Share Class	Issued and Outstanding
Class A Ordinary	28,653,467¹
Class B Ordinary	13,254,838
Preference Shares	2,407,575
Total Issued Shares	44,315,880
Employee Equity Options	690,055²
Issued Class A Ordinary Shares Underlying Employee Equity Options	(690,055)³
Total Issued and Issuable Shares⁴	44,315,880

______________________________
¹ Includes 690,055 shares issued to Computershare Hong Kong Investor Services Limited (“Computershare”) which are held in trust pending exercise of share options and settlement by Computershare to the underlying exercising option holder.
² Includes granted but unexercised options as well as exercised options, pursuant to which the shares have not yet been issued as of December 31, 2024.
³ Issued in advance to Computershare and held in trust pending exercise of share options and settlement by Computershare to the underlying exercising option holder.
⁴ Public Warrants, Sponsor Warrants, Class A-1 Warrants, Class A-2 Warrants and Class A-3 Warrants are excluded since they are out of the money.

Summary of financial / KPI performance

	For the Three Months Ended December 31,				For the Full Year Ended December 31,
	2024		2023		2024		2023
	(US$ in thousands, unless otherwise noted)
Revenue	15,723		26,397		79,511		80,671
Adjusted EBITDA	(2,922	)	(4,613	)	(23,666	)	(6,763	)

Clicks (in thousands)⁵	2,222		N/A		N/A		N/A
Applications (in thousands)⁶	363		504		1,779		1,713
Approved Applications (in thousands)⁶	172		204		767		636

______________________________
⁵ As of July 1, 2024, we transitioned from Universal Analytics to Google Analytics 4. Consequently, we are unable to provide comparable click data for this period following the transition. Please refer to the section titled “Key Performance Metrics and Non-IFRS Financial Measures” for more information regarding the change in methodology.
⁶ Due to the nature of our business, there is often a delay in receiving confirmation of the number of Applications and Approved Applications by our commercial partners. As a result, the disclosed figures may utilize estimations if data is unavailable.

Revenue breakdown

	For the Three Months Ended December 31,						For the Year Ended December 31,
	2024		2023				2024		2023
	US$	%	US$		%		US$	%	US$	%
	(US$ in thousands, except for percentages)
By Geographical Market:
Singapore	5,060	32.2	12,111		45.9		30,890	38.9	32,070	39.8
Hong Kong	7,386	47.0	8,390		31.8		30,443	38.3	26,947	33.4
Taiwan	1,296	8.2	1,967		7.5		5,137	6.5	6,743	8.4
Philippines	1,977	12.6	3,887		14.7		12,844	16.2	14,169	17.6
Malaysia	5	0.0	43		0.2		197	0.2	738	0.9
Other Asia	0	0.0	(0	)	(0.0	)	0	0.0	4	0.0

Total Revenue	15,723	100.0	26,397		100.0		79,511	100.0	80,671	100.0

By Source:
Online financial comparison platforms	13,594	86.5	21,831		82.7		66,815	84.0	66,926	83.0
Creatory	2,129	13.5	4,566		17.3		12,696	16.0	13,746	17.0

Total Revenue	15,723	100.0	26,397		100.0		79,511	100.0	80,671	100.0

By Vertical:
Credit cards	7,559	48.1	19,976		75.7		48,958	61.6	60,258	74.7
Personal loans and mortgages	3,373	21.5	3,487		13.2		12,185	15.3	10,166	12.6
Wealth	2,397	15.2	813		3.1		8,504	10.7	3,580	4.4
Insurance	2,125	13.5	1,928		7.3		8,181	10.3	5,853	7.3
Other verticals	269	1.7	193		0.7		1,683	2.1	814	1.0

Total Revenue	15,723	100.0	26,397		100.0		79,511	100.0	80,671	100.0

Key Metrics

	For the Three Months Ended December 31, 2024
	(in millions, except for percentages)
Monthly Unique Users⁷^,⁸
Singapore	1.4	23.1	%
Hong Kong	1.1	17.2	%
Taiwan	1.7	28.2	%
Philippines	1.9	31.5	%
Total	6.2	100.0	%

Total Traffic^7,8
Singapore	3.1	16.6	%
Hong Kong	3.5	19.0	%
Taiwan	5.7	30.7	%
Philippines	6.3	33.7	%
Total	18.6	100.0	%











	As of December 31,










	2024			2023










	(in millions, except for percentages)










MoneyHero Group Members⁸










Singapore	1.3	17.7	%	1.2	22.1	%










Hong Kong	0.9	11.5	%	0.7	13.0	%










Taiwan	0.4	4.8	%	0.3	4.8	%










Philippines	5.0	66.1	%	2.9	55.3	%










Malaysia	0.0	0.0	%	0.3	4.8	%










Total	7.5	100.0	%	5.3	100.0	%

_____________________________
⁷ As of July 1, 2024, we transitioned from Universal Analytics to Google Analytics 4. Consequently, we are unable to provide comparable monthly unique users and total traffic for this period following the transition. Please refer to the section titled “Key Performance Metrics and Non-IFRS Financial Measures” for more information regarding the change in methodology.
⁸ Malaysia’s ‘CompareHero’ brand was acquired by Jirnexu Sdn. Bhd in July 2024.

Conference Call Details

The Company will host a conference call and webcast on Tuesday, April 29, 2025, at 8:00 a.m. Eastern Standard Time / 8:00 p.m. Singapore Standard Time to discuss the Company’s financial results. The MoneyHero Limited (NASDAQ: MNY) Q4 and FY 2024 Earnings call can be accessed by registering at:

Webcast: https://edge.media-server.com/mmc/p/g36exn6g/
Conference call: https://register-conf.media-server.com/register/BI63a8f286c9b74092aff58fc8eb219749

The webcast replay will be available on the Investor Relations website for 12 months following the event.

About MoneyHero Group
MoneyHero Limited (NASDAQ: MNY) is a leading personal finance aggregation and comparison platform, as well as a digital insurance brokerage provider in Greater Southeast Asia. The Company operates in Singapore, Hong Kong, Taiwan and the Philippines. Its brand portfolio includes B2C platforms MoneyHero, SingSaver, Money101, Moneymax and Seedly, as well as the B2B platform Creatory. The Company also retains an equity stake in Malaysian fintech company, Jirnexu Pte. Ltd., parent company of Jirnexu Sdn. Bhd., the operator of RinggitPlus, Malaysia’s largest operating B2C platform. MoneyHero had over 290 commercial partner relationships as at December 31, 2024, and had approximately 6.2 million Monthly Unique Users across its platform for the three months ended December 31, 2024. The Company’s backers include Peter Thiel—co-founder of PayPal, Palantir Technologies, and the Founders Fund—and Hong Kong businessman, Richard Li, the founder and chairman of Pacific Century Group. To learn more about MoneyHero and how the innovative fintech company is driving APAC’s digital economy, please visit www.MoneyHeroGroup.com.

Key Performance Metrics and Non-IFRS Financial Measures

Historically, we utilized data from Universal Analytics (“UA”), Google’s analytics platform, to measure three key business metrics: monthly unique users, traffic, and clicks. Effective July 1, 2024, Google Analytics 4 (“GA4”) replaced UA. The methodologies used in GA4 are different and not comparable to the methodologies used in UA. While Google has provided some guidance on these differences, Google has not made available sufficient information for us to assess the impact (whether positive or negative) of this transition on our key business metrics, nor can we quantify the extent of such impact. Furthermore, due to the adoption of GA4, we have adjusted our definitions of these key business metrics to enhance accuracy and align them more closely with previous definitions under UA. Therefore, we are unable to provide comparable data for monthly unique user, traffic, and clicks for any periods prior to July 1, 2024.

“Monthly Unique User” means as a unique user with at least one session in a given month as determined by a unique device identifier from GA4. A session begins when a user opens an app in the foreground or views a page or screen while no other session is currently active (e.g., the prior session has ended). A session concludes after 30 minutes of user inactivity. To measure Monthly Unique Users over a period longer than one month, we calculate the average of the Monthly Unique Users for each month within that period. If an individual accesses a website or app from different devices within a given month, each device is counted as a separate unique user. However, if an individual logs in and accesses a website or app using the same login across different devices, they will only be counted as one unique user.

“Traffic” means the total number of unique sessions in GA4. A unique session is a group of user interactions recorded when a user accesses a website or app within a 30-minute window. The current session concludes when there is 30 minutes of inactivity or users have a change in traffic source.

“MoneyHero Group Members” means (i) users who have login IDs with us in Singapore, Hong Kong and Taiwan, (ii) users who subscribe to our email distributions in Singapore, Hong Kong, Taiwan, the Philippines and Malaysia, and (iii) users who are registered in our rewards database in Singapore and Hong Kong. Any duplications across the three sources above are deduplicated.

“Clicks” means the sum of unique clicks by product item on a tagged “Apply Now” button on our website, including product result pages and blogs. We track Clicks to understand how our users engage with our platforms prior to application submission or purchase, which enables us to further optimize conversion rates.

“Applications” means the total number of product applications submitted by users and confirmed by our commercial partners.

“Approved Applications” means the number of applications that have been approved and confirmed by our commercial partners.

In addition to MoneyHero Group’s results determined in accordance with IFRS, MoneyHero Group believes that the key performance metrics above and the non-IFRS measures below are useful in evaluating its operating performance. MoneyHero Group uses these measures, collectively, to evaluate ongoing operations and for internal planning and forecasting purposes. MoneyHero Group believes that non-IFRS information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and may assist in comparisons with other companies to the extent that such other companies use similar non-IFRS measures to supplement their IFRS results. These non-IFRS measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with IFRS and may be different from similarly titled non-IFRS measures used by other companies. Accordingly, non-IFRS measures have limitations as analytical tools, and should not be considered in isolation or as substitutes for analysis of other IFRS financial measures, such as profit/(loss) for the year/period and profit/(loss) before income tax.

Adjusted EBITDA is a non-IFRS financial measure defined as loss for the year plus depreciation and amortization, interest income, finance costs, income tax expenses/(credit), impairments of non-financial assets, equity-settled share-based payment expenses, other long-term employee benefits expense/(credit), non-recurring costs related to strategic exercises, gain on disposal of Malaysian operations, transaction expenses, changes in the fair value of financial instruments, non-recurring legal fees, gain on derecognition of convertible loan and bridge loan and unrealized foreign exchange differences. Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of revenue.

A reconciliation is provided for each non-IFRS measure to the most directly comparable financial measure stated in accordance with IFRS. Investors are encouraged to review the related IFRS financial measures and the reconciliations of these non-IFRS measures to their most directly comparable IFRS financial measures. IFRS differs from U.S. GAAP in certain material respects and thus may not be comparable to financial information presented by U.S. companies. We currently, and will continue to, report financial results under IFRS, which differs in certain significant respects from U.S. GAAP.

	For the Three Months Ended December 31,					For the Year Ended December 31,
	2024			2023		2024		2023
	(US$ in thousands)
Loss for the period		(18,756	)	(94,296	)	(37,787	)	(172,601	)
Tax expenses		19		3		109		63
Depreciation and amortization		893		3,563		4,043		7,165
Interest income		(239	)	(679	)	(1,478	)	(873	)
Finance costs		8		13,657		25		19,028

EBITDA	(18,075		)	(77,752	)	(35,088	)	(147,217	)

Non-cash items:
Changes in fair value of financial instruments	526			(123	)	(447	)	57,333
Impairment of intangible assets	4,466			3,106		4,541		3,106
Equity settled share-based payment arising from employee share incentive scheme	1,631			5,653		3,179		6,629
Unrealized foreign exchange loss/(gain), net	8,523			(4,763	)	4,197		(895	)

Listing and other non-recurring strategic exercises related items:
Share-based payment arising from listing	–			67,027		–		67,027
Equity settled share-based payment arising from professional services in relation to listing	–			500		–		500
Transaction expenses	0			1,739		29		6,643
Gain on disposal of Malaysian operations	0			–		(600	)	–
Other non-recurring costs related to strategic exercises	–			(0	)	61		1

Other non-recurring items:
Other long-term employee benefits expense/(credit)	–			0		–		110
Non-recurring legal fees	7			–		462		0

Adjusted EBITDA	(2,922		)	(4,613	)	(23,666	)	(6,763	)

Revenue	15,723			26,397		79,511		80,671
Adjusted EBITDA	(2,922		)	(4,613	)	(23,666	)	(6,763	)
Adjusted EBITDA Margin	(18.6		)%	(17.5	)%	(29.8	)%	(8.4	)%

Forward Looking Statements

This document includes “forward-looking statements” within the meaning of the United States federal securities laws and also contains certain financial forecasts and projections. All statements other than statements of historical fact contained in this communication, including, but not limited to, statements as to the Group’s growth strategies, future results of operations and financial position, market size, industry trends and growth opportunities, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. All forward-looking statements are based upon estimates and forecasts and reflect the views, assumptions, expectations, and opinions of the Company, which are all subject to change due to various factors including, without limitation, changes in general economic conditions. Any such estimates, assumptions, expectations, forecasts, views or opinions, whether or not identified in this communication, should be regarded as indicative, preliminary and for illustrative purposes only and should not be relied upon as being necessarily indicative of future results. The forward-looking statements and financial forecasts and projections contained in this communication are subject to a number of factors, risks and uncertainties. Potential risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, changes in business, market, financial, political and legal conditions; the Company’s ability to attract new and retain existing customers in a cost effective manner; competitive pressures in and any disruption to the industries in which the Company and its subsidiaries (the “Group”) operates; the Group’s ability to achieve profitability despite a history of losses; and the Group’s ability to implement its growth strategies and manage its growth; the Group’s ability to meet consumer expectations; the success of the Group’s new product or service offerings; the Group’s ability to attract traffic to its websites; the Group’s internal controls; fluctuations in foreign currency exchange rates; the Group’s ability to raise capital; media coverage of the Group; the Group’s ability to obtain adequate insurance coverage; changes in the regulatory environments (such as anti-trust laws, foreign ownership restrictions and tax regimes) and general economic conditions in the countries in which the Group operates; the Group’s ability to attract and retain management and skilled employees; the impact of the COVID-19 pandemic or any other pandemic on the business of the Group; the success of the Group’s strategic investments and acquisitions, changes in the Group’s relationship with its current customers, suppliers and service providers; disruptions to the Group’s information technology systems and networks; the Group’s ability to grow and protect its brand and the Group’s reputation; the Group’s ability to protect its intellectual property; changes in regulation and other contingencies; the Group’s ability to achieve tax efficiencies of its corporate structure and intercompany arrangements; potential and future litigation that the Group may be involved in; and unanticipated losses, write-downs or write-offs, restructuring and impairment or other charges, taxes or other liabilities that may be incurred or required and technological advancements in the Group’s industry. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s annual report for the year ended December 31, 2023 on Form 20-F (File No.: 001-41838), registration statement on Form F-1 (File No.: 333-275205), and other documents to be filed by the Company from time to time with the U.S. Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. In addition, there may be additional risks that the Company currently does not know, or that the Company currently believes are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. Forward-looking statements reflect the Company’s expectations, plans, projections or forecasts of future events and view. If any of the risks materialize or the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Forward-looking statements speak only as of the date they are made. The Company anticipates that subsequent events and developments may cause their assessments to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so, except as required by law. The inclusion of any statement in this document does not constitute an admission by the Company or any other person that the events or circumstances described in such statement are material. These forward-looking statements should not be relied upon as representing the Company’s assessments as of any date subsequent to the date of this document. Accordingly, undue reliance should not be placed upon the forward-looking statements. In addition, the analyses of the Company contained herein are not, and do not purport to be, appraisals of the securities, assets, or business of the Company.

For inquiries, please contact:

Investor Relations:
MoneyHero IR Team
IR@MoneyHeroGroup.com

Media Relations:
MoneyHero PR Team
Press@MoneyHeroGroup.com

Consolidated Statements of Loss and Other Comprehensive Income

	For the Three Months Ended December 31,				For the Year Ended December 31,
	2024		2023		2024		2023
	(US$ in thousands except for loss per share)
Revenue	15,723		26,397		79,511		80,671

Cost and expenses:
Cost of revenue	(6,603	)	(17,601	)	(46,180	)	(43,930	)
Advertising and marketing expenses	(3,954	)	(5,111	)	(21,619	)	(16,245	)
Technology costs	(1,397	)	(4,451	)	(7,427	)	(9,522	)
Employee benefit expenses	(5,837	)	(10,585	)	(24,151	)	(24,931	)
General, administrative and other operating expenses	(7,454	)	(7,863	)	(15,543	)	(16,725	)
Foreign exchange differences, net	(8,921	)	4,802		(4,783	)	657

Operating loss	(18,444	)	(14,411	)	(40,192	)	(30,026	)

Other income/(expenses):
Other income	241		679		2,092		878
Share-based payment on listing	–		(67,027	)	–		(67,027	)
Finance costs	(8	)	(13,657	)	(25	)	(19,028	)
Changes in fair value of financial instruments	(526	)	123		447		(57,333	)

Loss before income tax	(18,737	)	(94,293	)	(37,678	)	(172,538	)
Tax expenses	(19	)	(3	)	(109	)	(63	)
Loss for the period	(18,756	)	(94,296	)	(37,787	)	(172,601	)
Other comprehensive income/(loss)
Other comprehensive income/(loss) that may be classified to profit or loss in subsequent periods (net of tax):
Exchange differences on translation of foreign operations	8,071		(4,098	)	3,738		(820	)
Other comprehensive income/(loss) that will not be reclassified to profit or loss in subsequent periods (net of tax):
Remeasurement of defined benefit plan	8		(9	)	12		(30	)
Other comprehensive income/(loss), net of tax	8,079		(4,107	)	3,750		(850	)

Total comprehensive loss, net of tax	(10,677	)	(98,403	)	(34,037	)	(173,451	)

Loss per share attributable to ordinary equity holders of the parent
Basic and diluted	(0.5	)	(2.8	)	(0.9	)	(17.9	)

Consolidated Statements of Financial Position

	As of December 31,
(US$ in thousands)	2024	2023

NON-CURRENT ASSETS
Non-current financial asset	600	–
Intangible assets	1,018	7,294
Property and equipment	215	190
Right-of-use assets	744	590
Deposits	25	26

Total non-current assets	2,601	8,100

CURRENT ASSETS
Accounts receivable	13,538	17,236
Contract assets	11,825	16,025
Prepayments and other assets	9,041	4,855
Tax recoverable	63	0
Pledged bank deposits	185	189
Cash and cash equivalents	42,522	68,641

Total current assets	77,174	106,947

CURRENT LIABILITIES
Income tax payable	32	–
Accounts and other payables	29,101	33,222
Warrant liabilities	1,393	1,840
Lease liabilities	442	575
Provisions	71	72

Total current liabilities	31,039	35,708

NET CURRENT ASSETS	46,135	71,239
TOTAL ASSETS LESS CURRENT LIABILITIES	48,736	79,339

NON-CURRENT LIABILITIES
Lease liabilities	294	31
Deferred tax liabilities	30	29
Provisions	185	194

Total non-current liabilities	509	255

Net assets	48,227	79,084

EQUITY
Issued capital	4	4
Reserves	48,223	79,080

Total equity	48,227	79,084

The MIL Network –

April 30, 2025

MIL-OSI: CECO Environmental Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Numerous Financial Records Reflect Strength of Well-Positioned Portfolio
Company Maintains Full Year Outlook

ADDISON, Texas, April 29, 2025 (GLOBE NEWSWIRE) — CECO Environmental Corp. (Nasdaq: CECO) (“CECO”), a leading environmentally focused, diversified industrial company whose solutions protect people, the environment, and industrial equipment, today reported its financial results for the first quarter of 2025.

First Quarter Summary⁽¹⁾

Orders of $227.9 million, up 57 percent
Backlog of $602.0 million, up 55 percent
Revenue of $176.7 million, up 40 percent
Gross profit margin of 35.2 percent; Gross margin of $68.0 million, up 28 percent
Net income of $36.0 million; non-GAAP net income of $3.5 million
GAAP EPS (diluted) of $0.98; non-GAAP EPS (diluted) of $0.10
Adjusted EBITDA of $14.0 million, up 6 percent
Free cash flow of $(15.1) million, down $13.2 million

_{⁽¹⁾ All comparisons are versus the comparable prior year period, unless otherwise stated.}
_{Reconciliations of GAAP (reported) to non-GAAP measures are in the attached financial tables.}

Todd Gleason, CECO’s Chief Executive Officer commented, “We started 2025 with outstanding first quarter record orders of $228 million, which helped drive new record levels of backlog and revenue for the company. This is a powerful statement on the strength of our well-positioned portfolio, which is closely aligned to key long-term growth themes of industrial manufacturing reshoring, electrification, power generation, natural gas infrastructure, and industrial water investments. This marks the second consecutive quarter with bookings greater than $200 million, which has enabled our backlog to exceed $600 million for the first time in Company history. With our order pursuit pipeline now over $5 billion, we remain highly confident in our continued growth outlook.”

First quarter operating income was $61.9 million, up $54.2 million when compared to $7.7 million in the first quarter 2024. On an adjusted basis, non-GAAP operating income was $8.6 million, down $1.6 million or 16 percent when compared to $10.2 million in the first quarter of 2024. Net income was $36.0 million in the quarter, up $34.5 million compared to $1.5 million in the first quarter 2024. Non-GAAP net income was $3.5 million, down $0.5 million when compared to $4.0 million in the first quarter 2024. Adjusted EBITDA of $14.0 million, reflecting an Adjusted EBITDA margin of 7.9 percent, was up 6 percent compared to $13.2 million in the first quarter 2024. Free cash flow in the quarter was $(15.1) million, down $13.2 million compared to $(1.9) million in the first quarter of 2024.

“In the first quarter, we introduced strategic price actions to address preliminary tariff impacts. Additionally, to proactively manage our record backlog and robust project pipeline, we selectively pulled-in some inventory purchases and added key operational and customer-centric personnel to maintain the highest level of project execution. These additions drove incremental engineering, project management and business development costs during the first quarter as well as utilizing additional cash. This had the effect of depressing Adjusted EBITDA in the quarter, but these proactive measures were important to better position CECO for executing on our record backlog. Starting in Q2 2025, we will take strategic cost actions associated with eliminating redundant general and administrative roles and expenses resulting from our programmatic M&A and will expand our ongoing productivity and efficiency initiatives. We expect the benefits from these actions, when combined with continued strong volume growth, will underpin operating margin expansion throughout the year,” added Gleason.

2025 Full Year Guidance

For the full year 2025 outlook, the Company maintains its expectation to deliver Revenue of $700 to $750 million, up approximately 30 percent at the midpoint year and maintains its expected range for Adjusted EBITDA of $90 to $100 million, up approximately 50 percent at the midpoint versus 2024. The Company maintains its 2025 adjusted free cash flow to be between 60 and 75 percent of Adjusted EBITDA.

“We are very pleased with the strong start to the year as our industrial air, industrial water and energy transition businesses continue to drive growth through our operating model leveraging their respective niche leadership positions, and flexible business models. Our record backlog and opportunity pipeline provide me with confidence in achieving our growth targets for the year. While we recognize we are in a very dynamic environment which makes it difficult to predict the impact tariffs and other related uncertainties might have on the economy and on our operations, we believe that our direct exposure to tariff-related imports is relatively modest. CECO is comparatively well-positioned as we execute and manufacture a majority of our business in the same regions in which we sell. At present, this aspect of our business design and operating model, coupled with the cost actions we have taken, allows us to maintain our full year outlook – but we are monitoring the economic situation and working with our supply chain to aggressively manage any additional cost expenses which might arise over the course of the year,” concluded Gleason.

EARNINGS CONFERENCE CALL

A conference call is scheduled for today at 8:30 a.m. ET to discuss the first quarter 2025 financial results. Please visit the Investor Relations portion of the website (https://investors.cecoenviro.com) to listen to the call via webcast. The conference call may also be accessed by visiting https://edge.media-server.com/mmc/p/tvr2idgu.

A replay of the conference call will be available on the Company’s website for a period of one year. The replay may also be accessed by visiting https://edge.media-server.com/mmc/p/tvr2idgu.

ABOUT CECO ENVIRONMENTAL

CECO Environmental is a leading environmentally focused, diversified industrial company, serving the broad landscape of industrial air, industrial water and energy transition markets globally providing innovative solutions and application expertise. CECO helps companies grow their business with safe, clean, and more efficient solutions that help protect people, the environment and industrial equipment. CECO solutions improve air and water quality, optimize emissions management, and increase energy efficiency for highly-engineered applications in power generation, midstream and downstream hydrocarbon processing and transport, electric vehicle production, polysilicon fabrication, semiconductor and electronics, battery production and recycling, specialty metals and steel production, beverage can, and water/wastewater treatment and a wide range of other industrial end markets. CECO is listed on Nasdaq under the ticker symbol “CECO.” Incorporated in 1966, CECO’s global headquarters is in Addison, Texas. For more information, please visit www.cecoenviro.com.

Company Contact:
Peter Johansson
Chief Financial and Strategy Officer
888-990-6670
investor.relations@onececo.com

Investor Relations Contact:
Steven Hooser and Jean Marie Young
Three Part Advisors, LLC
214-872-2710
investor.relations@onececo.com

CECO ENVIRONMENTAL CORP. CONSOLIDATED BALANCE SHEETS (unaudited)

(in thousands, except per share data)	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	146,471		$	37,832
Restricted cash		205			369
Accounts receivable, net allowances of $8,663 and $8,863		152,405			159,572
Costs and estimated earnings in excess of billings on uncompleted contracts		83,335			69,889
Inventories		52,919			42,624
Prepaid expenses and other current assets		36,910			16,859
Prepaid income taxes		3,856			3,826
Total current assets		476,101			330,971
Property, plant and equipment, net		46,063			33,810
Right-of-use assets from operating leases		24,419			25,102
Goodwill		274,769			269,747
Intangible assets – finite life, net		109,250			74,050
Intangible assets – indefinite life		9,559			9,466
Deferred income taxes		210			966
Deferred charges and other assets		16,724			15,587
Total assets	$	957,095		$	759,699
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of debt	$	1,673		$	1,650
Accounts payable		109,504			109,671
Accrued expenses		59,176			47,528
Billings in excess of costs and estimated earnings on uncompleted contracts		87,870			81,501
Notes payable		700			1,700
Income taxes payable		19,831			2,612
Total current liabilities		278,754			244,662
Other liabilities		4,314			14,362
Debt, less current portion		338,037			217,230
Deferred income tax liability, net		26,481			11,322
Operating lease liabilities		19,458			20,230
Total liabilities		667,044			507,806
Commitments and contingencies (See Note 14)
Shareholders’ equity:
Preferred stock, $.01 par value; 10,000 shares authorized, none issued		—			—
Common stock, $.01 par value; 100,000,000 shares authorized, 35,250,489 and 34,978,009 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively		352			349
Capital in excess of par value		255,807			255,211
Retained earnings		42,554			6,570
Accumulated other comprehensive loss		(12,922	)		(14,441	)
Total CECO shareholders’ equity		285,791			247,689
Noncontrolling interest		4,260			4,204
Total shareholders’ equity		290,051			251,893
Total liabilities and shareholders’ equity	$	957,095		$	759,699

CECO ENVIRONMENTAL CORP. CONSOLIDATED STATEMENTS OF INCOME (unaudited)

	Three months ended March 31,
(in thousands, except per share data)	2025			2024
Net sales	$	176,697		$	126,332
Cost of sales		114,535			81,200
Gross profit		62,162			45,132
Selling and administrative expenses		53,542			34,908
Amortization expenses		3,096			2,156
Acquisition and integration expenses		8,143			190
Gain on sale of Global Pump Solutions business		(64,502	)		—
Other expenses		13			192
Income from operations		61,870			7,686
Other expense, net		(594	)		(1,513	)
Interest expense		(6,217	)		(3,413	)
Income before income taxes		55,059			2,760
Income tax expense		18,617			667
Net income		36,442			2,093
Noncontrolling interest		(458	)		(585	)
Net income attributable to CECO Environmental Corp.	$	35,984		$	1,508
Earnings per share:
Basic	$	1.03		$	0.04
Diluted	$	0.98		$	0.04
Weighted average number of common shares outstanding:
Basic		35,028,301			34,846,163
Diluted		36,689,320			36,177,323

CECO ENVIRONMENTAL CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended March 31,
(in thousands)	2025			2024
Cash flows from operating activities:
Net income	$	36,442		$	2,093
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		5,115			3,512
Unrealized foreign currency gain (loss)		(1,142	)		149
Gain on sale of Global Pump Solutions business		(64,502	)		—
(Loss) gain on sale of property and equipment		(15	)		115
Debt discount amortization		206			120
Share-based compensation expense		3,356			1,670
Provision (recovery) for credit loss		819			(384	)
Inventory reserve expense		92			499
Deferred income tax benefit		166			—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		16,215			(5,355	)
Costs and estimated earnings in excess of billings on uncompleted contracts		(12,270	)		7,858
Inventories		(2,416	)		(4,447	)
Prepaid expense and other current assets		(17,652	)		1,211
Deferred charges and other assets		(1,137	)		(221	)
Accounts payable		(3,633	)		(2,442	)
Accrued expenses		8,865			1,220
Billings in excess of costs and estimated earnings on uncompleted contracts		5,933			1,262
Income taxes payable		17,220			(387	)
Other liabilities		(3,358	)		(5,249	)
Net cash (used in) provided by operating activities		(11,696	)		1,224
Cash flows from investing activities:
Acquisitions of property and equipment		(3,385	)		(3,116	)
Net cash proceeds for sale of Global Pump Solutions business		105,860			—
Net cash (paid) received for acquisitions, net of cash acquired		(97,646	)		422
Net cash provided by (used in) investing activities		4,829			(2,694	)
Cash flows from financing activities:
Borrowings on revolving credit lines		148,100			13,400
Repayments on revolving credit lines		(27,600	)		(12,600	)
Repayments of long-term debt		(420	)		(2,553	)
Payments on finance leases and financing liability		(234	)		(229	)
Deferred consideration paid for acquisitions		(1,000	)		(1,000	)
Equity awards surrendered by employees for tax liability, net of proceeds from employee stock purchase plan and exercise of stock options		(2,688	)		258
Noncontrolling interest distributions		(402	)		(804	)
Common stock repurchased		—			(3,000	)
Net cash provided by (used in) financing activities		115,756			(6,528	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(414	)		(422	)
Net increase (decrease) in cash, cash equivalents and restricted cash		108,475			(8,420	)
Cash, cash equivalents and restricted cash at beginning of period		38,201			55,448
Cash, cash equivalents and restricted cash at end of period	$	146,676		$	47,028
Cash paid during the period for:
Interest	$	3,987		$	3,269
Income taxes	$	2,405		$	975

CECO ENVIRONMENTAL CORP. RECONCILIATION OF GAAP TO NON-GAAP MEASURES

	Three months ended March 31,
(in millions, except ratios)	2025			2024
Operating income as reported in accordance with GAAP	$	61.9		$	7.7
Operating margin in accordance with GAAP		35.0	%		6.1	%
Amortization expenses		3.1			2.2
Acquisition and integration expenses		8.1			0.2
Gain on sale of Global Pump Solutions business		(64.5	)		—
Other expenses⁽¹⁾		—			0.1
Non-GAAP operating income	$	8.6		$	10.2
Non-GAAP operating margin		4.9	%		8.1	%

	Three months ended March 31,
(in millions, except share data)	2025			2024
Net income as reported in accordance with GAAP	$	36.0		$	1.5
Amortization and earnout expenses		3.1			2.2
Acquisition and integration expenses		8.1			0.2
Gain on sale of Global Pump Solutions business		(64.5	)		—
Restructuring expenses		—			0
Foreign currency remeasurement		0.6			0.9
Tax (benefit) expense of adjustments		20.2			(0.9	)
Non-GAAP net income	$	3.5		$	4.0
Depreciation		2.0			1.3
Non-cash stock compensation		3.4			1.7
Other expense, net		—			0.6
Interest expense		6.2			3.4
Income tax expense		(1.6	)		1.6
Noncontrolling interest		0.5			0.6
Adjusted EBITDA	$	14.0		$	13.2

Earnings per share:
Basic	$	1.03		$	0.04
Diluted	$	0.98		$	0.04

Non-GAAP net (loss) income per share:
Basic	$	0.10		$	0.11
Diluted	$	0.10		$	0.11

	Three months ended March 31,
(in millions)	2025			2024
Net cash provided by operating activities	$	(11.7	)	$	1.2
Acquisitions of property and equipment		(3.4	)		(3.1	)
Free cash flow	$	(15.1	)	$	(1.9	)

NOTE REGARDING NON-GAAP FINANCIAL MEASURES

CECO is providing certain non-GAAP historical financial measures as presented above as we believe that these figures are helpful in allowing individuals to better assess the ongoing nature of CECO’s core operations. A “non-GAAP financial measure” is a numerical measure of a company’s historical financial performance that excludes amounts that are included in the most directly comparable measure calculated and presented in accordance with GAAP.

Non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow, as we present them in the financial data included in this press release, have been adjusted to exclude the effects of amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses primarily relating to severance and legal expenses, acquisition and integration expenses which include retention, legal, accounting, banking, and other expenses, foreign currency remeasurement and other nonrecurring or infrequent items and the associated tax benefit of these items. Management believes that these items are not necessarily indicative of the Company’s ongoing operations and their exclusion provides individuals with additional information to better compare the Company’s results over multiple periods. Management utilizes this information to evaluate its ongoing financial performance. Our financial statements may continue to be affected by items similar to those excluded in the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP financial measures should not be construed as an inference that all such costs are unusual or infrequent.

Non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow are not calculated in accordance with GAAP, and should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect all of the costs associated with the operations of our business as determined in accordance with GAAP. As a result, you should not consider these measures in isolation or as a substitute for analysis of CECO’s results as reported under GAAP. Additionally, CECO cautions investors that non-GAAP financial measures used by the Company may not be comparable to similarly titled measures of other companies.

In accordance with the requirements of Regulation G issued by the Securities and Exchange Commission, non-GAAP operating income, non-GAAP net income, non-GAAP operating margin, non-GAAP earnings per basic and diluted share, adjusted EBITDA and free cash flow stated in the tables above are reconciled to the most directly comparable GAAP financial measures.

Non-GAAP measures presented on a forward-looking basis were not reconciled to the comparable GAAP financial measures because the reconciliation could not be performed without unreasonable efforts. The GAAP measures are not accessible on a forward-looking basis because we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures for these periods but would not impact the non-GAAP measures. Such items may include amortization expenses for acquisition-related intangible assets, contingent retention and earnout expenses, restructuring expenses primarily relating to severance and legal expenses, acquisition and integration expenses which include retention, legal, accounting, banking, and other expenses, foreign currency remeasurement and other nonrecurring or infrequent items and the associated tax benefit of these items. The unavailable information could have a significant impact on our GAAP financial results.

SAFE HARBOR

Any statements contained in this Press Release, other than statements of historical fact, including statements about management’s beliefs and expectations, 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, both as amended, and should be evaluated as such. These statements are made on the basis of management’s views and assumptions regarding future events and business performance. We use words such as “believe,” “expect,” “anticipate,” “intends,” “estimate,” “forecast,” “project,” “will,” “plan,” “should” and similar expressions to identify forward-looking statements. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Potential risks and uncertainties, among others, that could cause actual results to differ materially are discussed under “Part I – Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and may be included in subsequently filed Quarterly Reports on Form 10-Q, and include, but are not limited to: the effect of the divestiture of our Fluid Handling business on business relationships, operating results, and business generally, disruption of current plans and operations and potential difficulties in employee retention as a result of the transaction, diversion of management’s attention from ongoing business operations in connection with the integration of recent acquisitions, the amount of the costs, fees, expenses and other charges related to the transaction, the achievement of the anticipated benefits of transactions, our ability to successfully integrate acquired businesses and realize the synergies from acquisitions, as well as a number of factors related to our business, including the sensitivity of our business to economic and financial market conditions generally and economic conditions in CECO’s service areas; the potential for fluctuations in prices for manufactured components and raw materials, including as a result of tariffs and surcharges, and rising energy costs; inflationary pressures relating to rising raw material costs and the cost of labor; dependence on fixed price contracts and the risks associated therewith, including actual costs exceeding estimates and method of accounting for revenue; the effect of growth on our infrastructure, resources, and existing sales; the ability to expand operations in both new and existing markets; the potential for contract delay or cancellation as a result of on-going or worsening supply chain challenges or other customer considerations; liabilities arising from faulty services or products that could result in significant professional or product liability, warranty, or other claims; changes in or developments with respect to any litigation or investigation; failure to meet timely completion or performance standards that could result in higher cost and reduced profits or, in some cases, losses on projects; the substantial amount of debt incurred in connection with our strategic transactions and our ability to repay or refinance it or incur additional debt in the future; the impact of federal, state or local government regulations; our ability to repurchase shares of our common stock and the amounts and timing of repurchases; our ability to successfully realize the expected benefits of our restructuring program; economic and political conditions generally; our ability to optimize our business portfolio by identifying acquisition targets, executing upon any strategic acquisitions or divestitures, integrating acquired businesses and realizing the synergies from strategic transactions; and the unpredictability and severity of catastrophic events, including cyber security threats, acts of terrorism or outbreak of war or hostilities or public health crises, as well as management’s response to any of the aforementioned factors. Many of these risks are beyond management’s ability to control or predict. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. Investors are cautioned not to place undue reliance on such forward-looking statements as they speak only to our views as of the date the statement is made. Except as required under the federal securities laws or the rules and regulations of the Securities and Exchange Commission, we undertake no obligation to update or review any forward-looking statements, whether as a result of new information, future events or otherwise.

The MIL Network –

April 29, 2025

MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the First Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

First quarter net income of $21.5 million;
First quarter earnings per diluted common share of $0.71;
Annualized return on first quarter average assets of 1.03%;
Annualized return on first quarter average tangible common equity of 14.14%⁽¹⁾; and
Nonperforming assets remain low at 0.39% of total assets.

TYLER, Texas, April 29, 2025 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended March 31, 2025. Southside reported net income of $21.5 million and earnings per diluted common share of $0.71 for both of the three month periods ended March 31, 2025 and 2024. The annualized return on average shareholders’ equity for the three months ended March 31, 2025 was 10.57%, compared to 11.02% for the same period in 2024. The annualized return on average assets was 1.03% for both of the three month periods ended March 31, 2025 and 2024.

“We are pleased to report financial results for the first quarter ended March 31, 2025, which included earnings per share of $0.71, a return on average assets of 1.03%, and a return on average tangible common equity of 14.14%,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter, the net interest margin increased three basis points to 2.86%, net interest income increased $145,000 to $53.9 million, and deposits net of public fund and brokered deposits increased $91.9 million. The linked quarter decrease in total loans was primarily due to payoffs exceeding original projections. Our loan pipeline is solid and we continue to anticipate mid-single-digit loan growth for 2025; however, it will likely be heavily weighted in the last half of the year.”

Operating Results for the Three Months Ended March 31, 2025

Net income was $21.5 million and earnings per diluted common share were $0.71 for both of the three month periods ended March 31, 2025 and 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended March 31, 2025 were 1.03% and 10.57%, respectively, compared to 1.03% and 11.02%, respectively, for the three months ended March 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 57.04% and 55.04%, respectively, for the three months ended March 31, 2025, compared to 57.95% and 55.54%, respectively, for the three months ended March 31, 2024, and 56.08% and 54.00%, respectively, for the three months ended December 31, 2024.

Net interest income for the three months ended March 31, 2025 was $53.9 million, an increase of $0.5 million, or 0.9%, compared to the same period in 2024. Linked quarter, net interest income increased $0.1 million, or 0.3%, compared to $53.7 million for the three months ended December 31, 2024. The increase in net interest income for both periods was due to the decrease in the average rate paid on interest bearing liabilities and the increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of interest earning assets and the increase in the average balance of our interest bearing liabilities.

Our net interest margin increased to 2.74% for the three months ended March 31, 2025, compared to 2.72% for the same period in 2024, while tax-equivalent net interest margin⁽¹⁾ was 2.86% for both of the three month periods ended March 31, 2025 and 2024. Linked quarter, net interest margin and tax-equivalent net interest margin⁽¹⁾ increased from 2.70% and 2.83%, respectively, for the three months ended December 31, 2024.

Noninterest income was $10.2 million for the three months ended March 31, 2025, an increase of $0.5 million, or 5.1%, compared to $9.7 million for the same period in 2024. The increase was primarily due to increases in gain on sale of loans and trust fees, partially offset by an increase in net loss on sale of securities available for sale (“AFS”). On a linked quarter basis, noninterest income decreased $2.1 million, or 16.8%, compared to the three months ended December 31, 2024. The decrease was primarily due to a decrease in other noninterest income, an increase in net loss on sale of securities AFS and a decrease in deposit services income. The decrease in other noninterest income was due to a decrease in swap fee income for the three months ended March 31, 2025.

Noninterest expense increased $0.2 million, or 0.6%, to $37.1 million for the three months ended March 31, 2025, compared to $36.9 million for the same period in 2024, due to increases in other noninterest expense and professional fees, partially offset by decreases in salaries and employee benefits expense and amortization of intangibles. On a linked quarter basis, noninterest expense decreased by $1.1 million, or 2.8%, compared to the three months ended December 31, 2024, due to decreases in salaries and employee benefits, net occupancy, other noninterest expense and professional fees.

Income tax expense increased $0.1 million, or 2.1%, for the three months ended March 31, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense increased $0.1 million, or 1.3%. Our effective tax rate (“ETR”) increased to 18.0% for the three months ended March 31, 2025, compared to 17.7% for the three months ended March 31, 2024, and increased from 17.6% for the three months ended December 31, 2024. The higher ETR for the three months ended March 31, 2025 compared to the same period in 2024, was primarily due to an increase in state income tax expense.

Balance Sheet Data

At March 31, 2025, Southside had $8.34 billion in total assets, compared to $8.35 billion at March 31, 2024, and $8.52 billion at December 31, 2024.

Loans at March 31, 2025 were $4.57 billion, a decrease of $10.1 million, or 0.2%, compared to $4.58 billion at March 31, 2024. Linked quarter, loans decreased $94.4 million, or 2.0%, due to decreases of $79.7 million in construction loans, $19.7 million in municipal loans, $2.5 million in commercial real estate loans and $1.9 million in loans to individuals. These decreases were partially offset by increases of $8.5 million in commercial loans and $1.0 million in 1-4 family residential loans.

Securities at March 31, 2025 were $2.74 billion, an increase of $24.2 million, or 0.9%, compared to $2.71 billion at March 31, 2024. Linked quarter, securities decreased $76.9 million, or 2.7%, from $2.81 billion at December 31, 2024.

Deposits at March 31, 2025 were $6.59 billion, an increase of $45.1 million, or 0.7%, compared to $6.55 billion at March 31, 2024. Linked quarter, deposits decreased $63.4 million, or 1.0%, from $6.65 billion at December 31, 2024.

At March 31, 2025, we had 178,840 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 40.0% of total deposits as of March 31, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 20.8% as of March 31, 2025. Our noninterest bearing deposits represent approximately 20.9% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 2.92% in the prior quarter to 2.83%. Linked quarter, our cost of total deposits decreased five basis points from 2.31% in the prior quarter to 2.26%.

Our cost of interest bearing deposits decreased 14 basis points, from 2.97% for the three months ended March 31, 2024, to 2.83% for the three months ended March 31, 2025. Our cost of total deposits decreased 10 basis points, from 2.36% for the three months ended March 31, 2024, to 2.26% for the three months ended March 31, 2025.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the first quarter ended March 31, 2025, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. Subsequent to March 31, 2025, and through April 25, 2025, we purchased 196,419 shares of common stock at an average price of $26.82 pursuant to the Stock Repurchase Plan.

As of March 31, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.29 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at March 31, 2025 were $32.2 million, or 0.39% of total assets, an increase of $24.2 million, or 303.5%, compared to $8.0 million, or 0.10% of total assets, at March 31, 2024. Linked quarter, nonperforming assets increased $28.6 million, or 797.0%, from $3.6 million at December 31, 2024 due primarily to increases of $27.5 million in restructured loans and $1.1 million in nonaccrual loans. The increase in restructured loans was due to the extension of maturity on a $27.5 million commercial real estate loan to allow for an extended lease up period. Classified loans totaled $67.0 million on March 31, 2025, compared to $48.0 million on December 31, 2024, primarily due to the downgrade of a $17.9 million commercial real estate loan in the first quarter that paid off on April 4, 2025.

The allowance for loan losses totaled $44.6 million, or 0.98% of total loans, at March 31, 2025, compared to $44.9 million, or 0.96% of total loans, at December 31, 2024. The allowance for loan losses was $43.6 million, or 0.95% of total loans, at March 31, 2024. The increase in allowance as a percentage of total loans was primarily due to an increase in economic concerns forecasted in the CECL model, partially offset by a decrease in the loan portfolio due to payoffs.

For the three months ended March 31, 2025, we recorded a provision for credit losses for loans of $42,000, compared to a provision of $1.2 million and $1.6 million for the three months ended March 31, 2024 and December 31, 2024, respectively. Net charge-offs were $0.3 million for the three months ended March 31, 2025 and March 31, 2024, compared to net charge-offs of $1.0 million for the three months ended December 31, 2024.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.7 million for the three months ended March 31, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures $1.1 million and $0.2 million for the three months ended March 31, 2024 and December 31, 2024, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.8 million and $2.8 million at March 31, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a first quarter cash dividend of $0.36 per share on February 6, 2025, which was paid on March 6, 2025, to all shareholders of record as of February 20, 2025.

_______________

(1)	Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.

Conference Call

Southside’s management team will host a conference call to discuss its first quarter ended March 31, 2025 financial results on Tuesday, April 29, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register-conf.media-server.com/register/BI1a8ec95cd2734970adaf83fadfc7f01d to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.

Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.34 billion in assets as of March 31, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 73 ATMs/ITMs.

To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

Forward-Looking Statements

Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements. For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate changes, tax reform, inflation, tariffs, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations, including the impact of changes in interest rates on our financial projections, models and guidance, and general economic and recessionary concerns, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress on borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market.

Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.


Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)

	As of
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
ASSETS
Cash and due from banks	$	103,359		$	91,409		$	130,147		$	114,283		$	96,744
Interest earning deposits		293,364			281,945			333,825			272,469			307,257
Federal funds sold		34,248			52,807			22,325			65,244			65,372
Securities available for sale, at estimated fair value		1,457,939			1,533,894			1,408,437			1,405,944			1,405,221
Securities held to maturity, at net carrying value		1,278,330			1,279,234			1,288,403			1,305,975			1,306,898
Total securities		2,736,269			2,813,128			2,696,840			2,711,919			2,712,119
Federal Home Loan Bank stock, at cost		34,208			33,818			40,291			32,991			27,958
Loans held for sale		903			1,946			768			1,352			756
Loans		4,567,239			4,661,597			4,578,048			4,589,365			4,577,368
Less: Allowance for loan losses		(44,623	)		(44,884	)		(44,276	)		(42,407	)		(43,557	)
Net loans		4,522,616			4,616,713			4,533,772			4,546,958			4,533,811
Premises & equipment, net		142,245			141,648			138,811			138,489			139,491
Goodwill		201,116			201,116			201,116			201,116			201,116
Other intangible assets, net		1,531			1,754			2,003			2,281			2,588
Bank owned life insurance		137,962			138,313			137,489			136,903			136,604
Other assets		135,479			142,851			124,876			133,697			130,047
Total assets	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest bearing deposits	$	1,379,641		$	1,357,152		$	1,377,022		$	1,366,924		$	1,358,827
Interest bearing deposits		5,211,210			5,297,096			5,058,680			5,129,008			5,186,933
Total deposits		6,590,851			6,654,248			6,435,702			6,495,932			6,545,760
Other borrowings and Federal Home Loan Bank borrowings		691,417			808,352			865,856			763,700			770,151
Subordinated notes, net of unamortized debt issuance costs		92,078			92,042			92,006			91,970			93,913
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,276			60,274			60,273			60,272			60,271
Other liabilities		92,055			90,590			103,172			144,858			95,846
Total liabilities		7,526,677			7,705,506			7,557,009			7,556,732			7,565,941
Shareholders’ equity		816,623			811,942			805,254			800,970			787,922
Total liabilities and shareholders’ equity	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Income Statement:
Total interest and dividend income	$	100,288		$	101,689		$	105,703		$	104,186		$	102,758
Total interest expense		46,436			47,982			50,239			50,578			49,410
Net interest income		53,852			53,707			55,464			53,608			53,348
Provision for (reversal of) credit losses		758			1,384			2,389			(485	)		58
Net interest income after provision for (reversal of) credit losses		53,094			52,323			53,075			54,093			53,290
Noninterest income
Deposit services		5,829			6,084			6,199			6,157			5,985
Net gain (loss) on sale of securities available for sale		(554	)		—			(1,929	)		(563	)		(18	)
Gain (loss) on sale of loans		55			138			115			220			(436	)
Trust fees		1,765			1,773			1,628			1,456			1,336
Bank owned life insurance		799			848			857			1,767			784
Brokerage services		1,120			1,054			1,068			1,081			1,014
Other		1,209			2,384			233			1,439			1,059
Total noninterest income		10,223			12,281			8,171			11,557			9,724
Noninterest expense
Salaries and employee benefits		22,382			22,960			22,233			21,984			23,113
Net occupancy		3,404			3,629			3,613			3,750			3,362
Advertising, travel & entertainment		924			884			734			795			950
ATM expense		378			378			412			368			325
Professional fees		1,520			1,645			1,206			1,075			1,154
Software and data processing		2,839			2,931			2,951			2,860			2,856
Communications		383			320			423			410			449
FDIC insurance		947			931			939			977			943
Amortization of intangibles		223			249			278			307			337
Other		4,089			4,232			3,543			3,239			3,392
Total noninterest expense		37,089			38,159			36,332			35,765			36,881
Income before income tax expense		26,228			26,445			24,914			29,885			26,133
Income tax expense		4,721			4,659			4,390			5,212			4,622
Net income	$	21,507		$	21,786		$	20,524		$	24,673		$	21,511

Common Share Data:
Weighted-average basic shares outstanding		30,390			30,343			30,286			30,280			30,262
Weighted-average diluted shares outstanding		30,483			30,459			30,370			30,312			30,305
Common shares outstanding end of period		30,410			30,379			30,308			30,261			30,284
Earnings per common share
Basic	$	0.71		$	0.72		$	0.68		$	0.81		$	0.71
Diluted		0.71			0.71			0.68			0.81			0.71
Book value per common share		26.85			26.73			26.57			26.47			26.02
Tangible book value per common share		20.19			20.05			19.87			19.75			19.29
Cash dividends paid per common share		0.36			0.36			0.36			0.36			0.36

Selected Performance Ratios:
Return on average assets		1.03	%		1.03	%		0.98	%		1.19	%		1.03	%
Return on average shareholders’ equity		10.57			10.54			10.13			12.46			11.02
Return on average tangible common equity ⁽¹⁾		14.14			14.12			13.69			16.90			15.07
Average yield on earning assets (FTE) ⁽¹⁾		5.23			5.24			5.51			5.45			5.38
Average rate on interest bearing liabilities		3.03			3.12			3.28			3.32			3.22
Net interest margin (FTE) ⁽¹⁾		2.86			2.83			2.95			2.87			2.86
Net interest spread (FTE) ⁽¹⁾		2.20			2.12			2.23			2.13			2.16
Average earning assets to average interest bearing liabilities		128.10			129.55			128.51			128.62			127.71
Noninterest expense to average total assets		1.78			1.80			1.73			1.72			1.77
Efficiency ratio (FTE) ⁽¹⁾		55.04			54.00			51.90			52.71			55.54

(1)	Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Nonperforming Assets:	$	32,193		$	3,589		$	7,656		$	6,918		$	7,979
Nonaccrual loans		4,254			3,185			7,254			6,110			7,709
Accruing loans past due more than 90 days		—			—			—			—			—
Restructured loans		27,505			2			—			145			151
Other real estate owned		388			388			388			648			119
Repossessed assets		46			14			14			15			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.09	%		0.07	%		0.16	%		0.13	%		0.17	%
Ratio of nonperforming assets to:
Total assets		0.39			0.04			0.09			0.08			0.10
Total loans		0.70			0.08			0.17			0.15			0.17
Total loans and OREO		0.70			0.08			0.17			0.15			0.17
Ratio of allowance for loan losses to:
Nonaccruing loans		1,048.97			1,409.23			610.37			694.06			565.01
Nonperforming assets		138.61			1,250.60			578.32			613.00			545.90
Total loans		0.98			0.96			0.97			0.92			0.95
Net charge-offs (recoveries) to average loans outstanding		0.03			0.08			0.04			0.02			0.03

Capital Ratios:
Shareholders’ equity to total assets		9.79			9.53			9.63			9.58			9.43
Common equity tier 1 capital		13.44			13.04			13.07			12.72			12.43
Tier 1 risk-based capital		14.49			14.07			14.12			13.76			13.47
Total risk-based capital		17.01			16.49			16.59			16.16			15.92
Tier 1 leverage capital		9.73			9.67			9.61			9.40			9.22
Period end tangible equity to period end tangible assets ⁽¹⁾		7.54			7.33			7.38			7.33			7.17
Average shareholders’ equity to average total assets		9.75			9.76			9.67			9.52			9.35

(1)	Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2025			2024
Loan Portfolio Composition	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Real Estate Loans:
Construction	$	458,101		$	537,827		$	585,817		$	546,040		$	599,464
1-4 Family Residential		741,432			740,396			755,406			738,037			720,508
Commercial		2,577,229			2,579,735			2,422,612			2,472,771			2,413,345
Commercial Loans		371,643			363,167			358,854			359,807			358,053
Municipal Loans		371,271			390,968			402,041			416,986			427,225
Loans to Individuals		47,563			49,504			53,318			55,724			58,773
Total Loans	$	4,567,239		$	4,661,597		$	4,578,048		$	4,589,365		$	4,577,368

Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	—		$	—		$	—		$	—		$	—
Provision for (reversal of) securities held to maturity		64			—			—			—			—
Balance at end of period	$	64		$	—		$	—		$	—		$	—

Allowance for Loan Losses
Balance at beginning of period	$	44,884		$	44,276		$	42,407		$	43,557		$	42,674
Loans charged-off		(613	)		(1,232	)		(773	)		(721	)		(634	)
Recoveries of loans charged-off		310			277			365			444			347
Net loans (charged-off) recovered		(303	)		(955	)		(408	)		(277	)		(287	)
Provision for (reversal of) loan losses		42			1,563			2,277			(873	)		1,170
Balance at end of period	$	44,623		$	44,884		$	44,276		$	42,407		$	43,557

Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,141		$	3,320		$	3,208		$	2,820		$	3,932
Provision for (reversal of) off-balance-sheet credit exposures		652			(179	)		112			388			(1,112	)
Balance at end of period	$	3,793		$	3,141		$	3,320		$	3,208		$	2,820
Total Allowance for Credit Losses	$	48,480		$	48,025		$	47,596		$	45,615		$	46,377

The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	March 31, 2025							December 31, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾		Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,625,902		$	68,160	5.98	%	$	4,604,175		$	70,155	6.06	%
Loans held for sale		752			11	5.93	%		1,562			23	5.86	%
Securities:
Taxable investment securities ⁽²⁾		749,155			6,363	3.44	%		784,321			6,949	3.52	%
Tax-exempt investment securities ⁽²⁾		1,134,590			10,253	3.66	%		1,138,271			10,793	3.77	%
Mortgage-backed and related securities ⁽²⁾		1,041,038			13,523	5.27	%		1,031,187			12,043	4.65	%
Total securities		2,924,783			30,139	4.18	%		2,953,779			29,785	4.01	%
Federal Home Loan Bank stock, at cost, and equity investments		43,285			483	4.53	%		37,078			591	6.34	%
Interest earning deposits		319,889			3,370	4.27	%		273,656			3,160	4.59	%
Federal funds sold		43,813			478	4.42	%		43,121			508	4.69	%
Total earning assets		7,958,424			102,641	5.23	%		7,913,371			104,222	5.24	%
Cash and due from banks		89,703							102,914
Accrued interest and other assets		457,948							454,387
Less: Allowance for loan losses		(45,105	)						(44,418	)
Total assets	$	8,460,970						$	8,426,254
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	593,953			1,429	0.98	%	$	594,196			1,456	0.97	%
Certificates of deposit		1,336,815			14,406	4.37	%		1,187,800			13,537	4.53	%
Interest bearing demand accounts		3,406,342			21,412	2.55	%		3,459,122			23,468	2.70	%
Total interest bearing deposits		5,337,110			37,247	2.83	%		5,241,118			38,461	2.92	%
Federal Home Loan Bank borrowings		614,897			5,837	3.85	%		572,993			5,557	3.86	%
Subordinated notes, net of unamortized debt issuance costs		92,060			932	4.11	%		92,024			945	4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,275			1,014	6.82	%		60,274			1,095	7.23	%
Repurchase agreements		75,291			666	3.59	%		80,891			782	3.85	%
Other borrowings		33,061			740	9.08	%		61,196			1,142	7.42	%
Total interest bearing liabilities		6,212,694			46,436	3.03	%		6,108,496			47,982	3.12	%
Noninterest bearing deposits		1,334,933							1,383,204
Accrued expenses and other liabilities		88,450							112,320
Total liabilities		7,636,077							7,604,020
Shareholders’ equity		824,893							822,234
Total liabilities and shareholders’ equity	$	8,460,970						$	8,426,254
Net interest income (FTE)				$	56,205						$	56,240
Net interest margin (FTE)						2.86	%						2.83	%
Net interest spread (FTE)						2.20	%						2.12	%

(1)	Interest on loans includes net fees on loans that are not material in amount.
(2)	For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.

Note: As of March 31, 2025 and December 31, 2024, loans totaling $4.3 million and $3.2 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	September 30, 2024							June 30, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾		Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,613,028		$	72,493	6.25	%	$	4,595,980		$	70,293	6.15	%
Loans held for sale		871			11	5.02	%		1,489			24	6.48	%
Securities:
Taxable investment securities ⁽²⁾		791,914			7,150	3.59	%		783,856			7,009	3.60	%
Tax-exempt investment securities ⁽²⁾		1,174,445			11,825	4.01	%		1,254,097			12,761	4.09	%
Mortgage-backed and related securities ⁽²⁾		886,325			11,976	5.38	%		830,504			11,084	5.37	%
Total securities		2,852,684			30,951	4.32	%		2,868,457			30,854	4.33	%
Federal Home Loan Bank stock, at cost, and equity investments		41,159			582	5.63	%		40,467			573	5.69	%
Interest earning deposits		281,313			3,798	5.37	%		300,047			4,105	5.50	%
Federal funds sold		33,971			488	5.71	%		75,479			1,021	5.44	%
Total earning assets		7,823,026			108,323	5.51	%		7,881,919			106,870	5.45	%
Cash and due from banks		100,578							110,102
Accrued interest and other assets		455,091							424,323
Less: Allowance for loan losses		(42,581	)						(43,738	)
Total assets	$	8,336,114						$	8,372,606
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	598,116			1,490	0.99	%	$	604,753			1,454	0.97	%
Certificates of deposit		1,087,613			12,647	4.63	%		1,020,099			11,630	4.59	%
Interest bearing demand accounts		3,409,911			24,395	2.85	%		3,513,068			25,382	2.91	%
Total interest bearing deposits		5,095,640			38,532	3.01	%		5,137,920			38,466	3.01	%
Federal Home Loan Bank borrowings		618,708			6,488	4.17	%		606,851			6,455	4.28	%
Subordinated notes, net of unamortized debt issuance costs		91,988			937	4.05	%		92,017			936	4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273			1,180	7.79	%		60,271			1,171	7.81	%
Repurchase agreements		83,297			899	4.29	%		88,007			955	4.36	%
Other borrowings		137,482			2,203	6.37	%		143,169			2,595	7.29	%
Total interest bearing liabilities		6,087,388			50,239	3.28	%		6,128,235			50,578	3.32	%
Noninterest bearing deposits		1,344,165							1,346,274
Accrued expenses and other liabilities		98,331							101,399
Total liabilities		7,529,884							7,575,908
Shareholders’ equity		806,230							796,698
Total liabilities and shareholders’ equity	$	8,336,114						$	8,372,606
Net interest income (FTE)				$	58,084						$	56,292
Net interest margin (FTE)						2.95	%						2.87	%
Net interest spread (FTE)						2.23	%						2.13	%

(1)	Interest on loans includes net fees on loans that are not material in amount.
(2)	For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.

Note: As of September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	March 31, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,559,602		$	68,849	6.07	%
Loans held for sale		8,834			18	0.82	%
Securities:
Taxable investment securities ⁽²⁾		780,423			6,967	3.59	%
Tax-exempt investment securities ⁽²⁾		1,285,922			13,168	4.12	%
Mortgage-backed and related securities ⁽²⁾		764,713			10,119	5.32	%
Total securities		2,831,058			30,254	4.30	%
Federal Home Loan Bank stock, at cost, and equity investments		40,063			333	3.34	%
Interest earning deposits		380,181			5,202	5.50	%
Federal funds sold		62,599			838	5.38	%
Total earning assets		7,882,337			105,494	5.38	%
Cash and due from banks		114,379
Accrued interest and other assets		441,783
Less: Allowance for loan losses		(42,973	)
Total assets	$	8,395,526
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,529			1,424	0.95	%
Certificates of deposit		941,947			10,341	4.42	%
Interest bearing demand accounts		3,634,936			26,433	2.92	%
Total interest bearing deposits		5,181,412			38,198	2.97	%
Federal Home Loan Bank borrowings		607,033			5,950	3.94	%
Subordinated notes, net of unamortized debt issuance costs		93,895			956	4.10	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,270			1,175	7.84	%
Repurchase agreements		92,177			967	4.22	%
Other borrowings		137,287			2,164	6.34	%
Total interest bearing liabilities		6,172,074			49,410	3.22	%
Noninterest bearing deposits		1,338,384
Accrued expenses and other liabilities		100,014
Total liabilities		7,610,472
Shareholders’ equity		785,054
Total liabilities and shareholders’ equity	$	8,395,526
Net interest income (FTE)				$	56,084
Net interest margin (FTE)						2.86	%
Net interest spread (FTE)						2.16	%

(1)	Interest on loans includes net fees on loans that are not material in amount.
(2)	For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
(3)	Yield/rate includes the impact of applicable derivatives.

Note: As of March 31, 2024, loans totaling $7.7 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.


Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income	$	21,507		$	21,786		$	20,524		$	24,673		$	21,511
After-tax amortization expense		176			196			220			243			266
Adjusted net income available to common shareholders	$	21,683		$	21,982		$	20,744		$	24,916		$	21,777

Average shareholders’ equity	$	824,893		$	822,234		$	806,230		$	796,698		$	785,054
Less: Average intangibles for the period		(202,784	)		(203,020	)		(203,288	)		(203,581	)		(203,910	)
Average tangible shareholders’ equity	$	622,109		$	619,214		$	602,942		$	593,117		$	581,144

Return on average tangible common equity		14.14	%		14.12	%		13.69	%		16.90	%		15.07	%

Reconciliation of book value per share to tangible book value per share:
Common equity at end of period	$	816,623		$	811,942		$	805,254		$	800,970		$	787,922
Less: Intangible assets at end of period		(202,647	)		(202,870	)		(203,119	)		(203,397	)		(203,704	)
Tangible common shareholders’ equity at end of period	$	613,976		$	609,072		$	602,135		$	597,573		$	584,218

Total assets at end of period	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863
Less: Intangible assets at end of period		(202,647	)		(202,870	)		(203,119	)		(203,397	)		(203,704	)
Tangible assets at end of period	$	8,140,653		$	8,314,578		$	8,159,144		$	8,154,305		$	8,150,159

Period end tangible equity to period end tangible assets		7.54	%		7.33	%		7.38	%		7.33	%		7.17	%

Common shares outstanding end of period		30,410			30,379			30,308			30,261			30,284
Tangible book value per common share	$	20.19		$	20.05		$	19.87		$	19.75		$	19.29

Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):
Net interest income (GAAP)	$	53,852		$	53,707		$	55,464		$	53,608		$	53,348
Tax-equivalent adjustments:
Loans		581			598			608			633			656
Tax-exempt investment securities		1,772			1,935			2,012			2,051			2,080
Net interest income (FTE) ⁽¹⁾		56,205			56,240			58,084			56,292			56,084
Noninterest income		10,223			12,281			8,171			11,557			9,724
Nonrecurring income ⁽²⁾		554			(25	)		2,797			(576	)		18
Total revenue	$	66,982		$	68,496		$	69,052		$	67,273		$	65,826

Noninterest expense	$	37,089		$	38,159		$	36,332		$	35,765		$	36,881
Pre-tax amortization expense		(223	)		(249	)		(278	)		(307	)		(337	)
Nonrecurring expense ⁽³⁾		(1	)		(919	)		(219	)		2			17
Adjusted noninterest expense	$	36,865		$	36,991		$	35,835		$	35,460		$	36,561

Efficiency ratio		57.04	%		56.08	%		53.94	%		54.90	%		57.95	%
Efficiency ratio (FTE) ⁽¹⁾		55.04	%		54.00	%		51.90	%		52.71	%		55.54	%

Average earning assets	$	7,958,424		$	7,913,371		$	7,823,026		$	7,881,919		$	7,882,337

Net interest margin		2.74	%		2.70	%		2.82	%		2.74	%		2.72	%
Net interest margin (FTE) ⁽¹⁾		2.86	%		2.83	%		2.95	%		2.87	%		2.86	%

Net interest spread		2.08	%		1.99	%		2.10	%		2.00	%		2.02	%
Net interest spread (FTE) ⁽¹⁾		2.20	%		2.12	%		2.23	%		2.13	%		2.16	%

(1)	These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2)	These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3)	These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.

The MIL Network –

April 29, 2025

MIL-OSI Australia: Helping Queenslanders co-exist with flying-foxes

Source: Tasmania Police

Issued: 29 Apr 2025

Queensland communities will continue to receive critical support to reduce the nuisance impacts of flying-fox roosts, while supporting the conservation of these protected species.

Round 8 of the highly successful Flying-Fox Roost Management – Local Government Grant Program opens on 30 April.

Originally a four-year $2 million initiative scheduled to end in 2024, the program has been extended for a further three years, with an additional $1.5 million funding boost.

Department of the Environment, Tourism, Science and Innovation Acting Deputy Director-General Andrew Buckley said the program ensured councils could continue to take meaningful action to reduce the impacts flying-fox roosts on communities, while enabling these protected species to continue to play their important ecological role.

“Flying-foxes play a crucial role in ecosystems by pollinating native plants and dispersing seeds over vast distances, helping forests regenerate and maintain biodiversity and supporting the health of entire habitats, including those that many other species rely on,” Mr Buckley said.

“But we know that for communities living near flying-fox roosts, they can have profound impacts due to the noise, odour and mess on the ground they generate

“This grant program recognises this and helps local governments manage flying-fox roosts with a focus on long-term planning, roost modification, habitat rehabilitation, and innovative community engagement.

“Since its launch, 29 councils have delivered 76 successful projects, ranging from tree trimming and roost maintenance to covered walkways, education programs and community grants.

“Flying-foxes are a vital part of Queensland’s ecosystems, and this program empowers councils to balance biodiversity conservation with community wellbeing,” Mr Buckley said.

Stream 1: Immediate/High-Priority Actions – for urgent on-ground works near roosts.

Stream 2: Development of Roost Management Plans – to support long-term planning, and

Stream 3: Implementation of Roost Management Plans – to bring management strategies to life.

Applications for funding under Round 8 of the program close on 28 May 2025, with further details available here.

Media contact: DETSI Media Unit on (07) 3339 5831 or media@des.qld.gov.au

MIL OSI News –

April 29, 2025

MIL-OSI: Amundi: Results for the First quarter of 2025 – Record inflows at +€31bn

Source: GlobeNewswire (MIL-OSI)

Amundi: Results for the First quarter of 2025

Record inflows at +€31bn

Record inflows		Assets under management¹at an all-time high of €2.25tn at end of March 2025, +6% year-on-year Highest quarterly net inflows since 2021, at +€31bn in Q1 +€37bn in medium- to long-term assets excluding JVs, new quarterly record Positive inflows in active management (+€6bn) Strong ETF net inflows and gain of a big ESG equity index mandate with The People’s Pension (UK): +€21bn

Strong growth in profit before tax		Profit before tax²of €458m, up +11% Q1/Q1, driven by: revenue growth (+11%) positive jaws effect improved cost-income ratio to 52.4%² Adjusted net income²^,³ close to €350m excluding impact of exceptional tax surcharge⁴ in France (-€46m)

Confirmed strategic pillars success		Strong inflows in growth areas: Third-party distribution +€8bn Asia +€8bn ETF +€10bn Amundi Technology: strong organic growth, integration of aixigo and revenues up +46% Q1/Q1

Paris, 29 April 2025

Amundi’s Board of Directors met on 28 April 2025 chaired by Philippe Brassac, and approved the financial statements for the first quarter of 2025.

Valérie Baudson, Chief Executive Officer, said: “After a record year in 2024, Amundi continued this momentum in the first quarter of 2025. Quarterly net inflows are at their highest since 2021: our clients, whether they are individuals or institutions, have entrusted us with +€31bn more to manage. In particular, we won a major mandate from one of the UK’s largest pension funds in the fast-growing market for Defined Contribution pension plans.

The business continues to reflect the relevance of our main growth pillars: net inflows were dynamic with Third-Party Distributors, in Asia and on ETFs, and Amundi Technology continues its sustained growth.

The three transactions signed in 2024 reinforce this solid organic growth: Alpha Associates and aixigo have already contributed positively to the quarter’s results, the partnership with Victory Capital, closed on 1 April, now allows us to offer more US strategies while creating value for our shareholders.

Amundi’s diversified model and agility allow us to effectively support our clients in all market environments and provide them with long-term growth opportunities. We continue to invest, redeploy our resources and optimise our cost base to adapt our platform, meet the changing needs of clients and develop new services for them. »

* * * * *

Highlights

Continued organic growth thanks to confirmed successes in the strategic pillars

2025 is the last year of implementation of the 2025 Ambitions plan, which sets a number of strategic pillars to accelerate the diversification of the Group’s growth drivers and exploit development opportunities. After a year 2024 during which several objectives were achieved a year ahead of schedule, the first quarter confirmed the momentum:

Third-Party Distribution recorded assets under management up over +15% year-on-year and net inflows over 12 months of +€33bn, of which +€8bn⁵ in the first quarter of 2025, mainly in MLT assets⁶, (+€7.6bn); net inflows this quarter were driven by ETFs and active management, diversified by geographical areas and positive in almost all countries in terms of MLT assets⁶, particularly in Asia (+€1.7bn); it is also diversified by types of client, with a confirmed commercial momentum with digital platforms, which account for c.25% of net inflows; it should be noted that a Workshop presenting the Third-Party Distribution business line will be held on Thursday 19 June in London, with the entire division’s management team;

Asia: assets under management were up +9% year-on-year despite the fall in the US dollar and the Indian rupee, to reach €462bn; net inflows for the quarter reached +€8bn, mainly from direct distribution (+€5bn compared to +€3bn for JVs), and is balanced between major client segments in direct distribution and JVs; it is also diversified by countries: Korea (+€3bn) thanks to the JV, China with the two JVs and institutional clients, Hong Kong (+€1.6bn) and Singapore (+€1.4bn) thanks to institutional and third-party distributors;
ETFs raised +€10bn this quarter, thanks to the success of US equity underlying strategies at the beginning of the quarter, and then in March with the success of the Stoxx Europe 600 ETF, which collected +€1.3bn in one month and exceeded €10bn in assets under management; innovative products were launched, with the ETF invested in short-duration eurozone sovereign green bonds, capitalising on the success of its long-duration big brother, which reached €3bn in assets under management;
Amundi Technology continues to grow: its revenues increased by +46% Q1/Q1, driven in equal parts by the integration of aixigo and strong organic growth; the business line has signed a partnership with Murex to offer in ALTO the functionalities of this company’s integrated OTC derivatives management and valuation platform, MX.3, which has more than 60,000 users in 65 countries; the partnership includes cross-selling and joint business development agreements.

After the end of the first quarter

On 1 April, the partnership with Victory Capital, was closed and Amundi received 17.6 million shares, i.e. 21.2%⁷ of Victory Capital’s capital. In accordance with the Contribution Agreement and the completion of the remaining adjustments, we expect Amundi’s stake in Victory Capital to reach 26.1%⁷ in the next few months. This investment will be consolidated using the equity method and will start contributing to the Group’s results from the second quarter.
It should be noted that as of 8 April, after the drop in the equities and bond markets and at the trough of European equity markets since the end of the first quarter (Stoxx 600 -9%), the Group’s assets under management excluding JVs⁸ were down by just below -3% compared to 31 March 2025; as of 25 March, they had recovered to less than -2% vs. end March.
After the success of Ambitions 2025, a new three-year strategic plan will be presented in the fourth quarter.

Focus on operations in the UK

The winning of a large mandate with a pension fund illustrates the strong development of Amundi’s operations in the United Kingdom. Amundi has management and marketing/sales teams there and is experiencing strong growth in its business:

London is one of Amundi’s 6 global investment hubs, with €49bn under management for the entire Group, in charge of all emerging markets strategies as well as global and GBP fixed income strategies;
The distribution platform for local clients represents €66bn under management, balanced between institutional and third-party distribution; the commercial platform is complemented by Amundi Technology sales teams to serve British clients.

The €21bn equity index mandate for The People’s Pension, one of the leading Master Trusts (multi-employer pension funds) in the Defined Contribution pension plan market, was won thanks to the depth and consistency of Amundi’s responsible investment methodology, applied in this case to an index management solution. It amplifies the strong commercial momentum in this Master Trust market segment, as Amundi is now a close partner of the two largest players.

Activity

Capital markets still up Q1/Q1, decline in the dollar and Indian rupee

In the first quarter of 2025, both equities⁹and bond¹⁰markets continued to rise. Year-on-year, they gained +13% and +3% respectively in average. The market effect is therefore positive on the Group’s assets under management and revenues compared to the first quarter of 2024.

The Indian rupee and the US dollar were both down -4% quarter-on-quarter, and -3% year-on-year for the Indian rupee while the US dollar is stable over the same period. The foreign exchange effect, which was neutral year-on-year, was therefore negative by around -1% on Amundi’s end-of-period assets under management in the first quarter.

European fund management market in slow recovery

Investor risk aversion persists in the European fund management market. In the first quarter of 2025, net inflows in open-ended funds¹¹ continued their slow recovery compared to the beginning of 2024, at +€221bn in the first quarter, down slightly compared to the fourth quarter of 2024 (+€232bn) due to lower net inflows from money market funds (+€60bn). Active management continued its recovery, with +€70bn net inflows, and its rebalancing compared to passive management (+€91bn, of which +€82bn in ETFs). As in previous quarters, net flows were positive thanks to fixed income, and grew only as a result of lower outflows in equities and multi-assets.

Highest quarterly net inflows for MLT assets⁶in Q1

Assets under management¹as at 31 March 2025 increased by +6.2% year-on-year, to reach the new record of €2,247bn. Over 12 months, in addition to market appreciation, they benefited from a high level of net inflows, at +€70bn, higher than the market & forex effect of +€53bn. The increase in assets under management also benefited from the integration of Alpha Associates since the beginning of April 2024 (+€7.9bn).

In the first quarter of 2025, the forex effect was negative by -€26bn due to the fall of the US dollar and the Indian rupee against the euro. It was very slightly offset by a small positive market effect (+€2bn). The strong net inflows in the quarter were much higher than this negative forex effect.

The first quarter net inflows totalled +€31bn, the highest level for a quarter since 2021, of which +€37bn in MLT assets⁶ excluding JVs, an all-time record.

These net inflows benefited from the gain of the mandate of The People’s Pension (+€21bn). The rest of the MLT net inflows⁶ (+€16bn) comes from passive management, in particular ETFs (+€10bn) and active management (+€6bn). As in previous quarters, the latter was driven by fixed income strategies (+€11bn), in all client segments.
The three main client segments contributed to net inflows of +€31bn:

the Retail segment, at +€6bn, thanks to Third-Party Distributors (+€8bn); net inflows were slightly positive at Amundi BOC WM while risk aversion continued to affect net inflows from Partner Networks: slightly positive in France (+€0.2bn) and negative in International business (-€3bn), due in particular to multi-asset strategies: -€2bn;
The Institutional segment, at +€22bn, of which +€33bn in MLT assets⁶, benefited from The People’s Pension mandate and a good level of net inflows, particularly bonds, in all sub-segments except the seasonal effect for Corporates and Employee Savings;
Finally JVs (+€3bn) benefited from dynamic net inflows in NH-Amundi (South Korea, +€3bn), while SBI FM (India, -€1bn) recorded outflows linked to end-of-fiscal-year operations and client caution after the correction in local equities markets since October 2024, even though net flows remained positive in the retail segment; ABC-CA (China) net inflows confirmed the stabilisation of the local market, and were positive by +€1bn excluding discontinued Channel Business operations, mainly driven by treasury products.

Treasury products posted outflows of -€8.7bn, mainly due to particularly strong seasonal outflows from Corporates in the first quarter of this year (-€11.6bn) and to a lesser extent from arbitrages by CA & SG insurers (-€1.6bn) in favour of products with longer durations. All other client segments posted slightly positive net inflows in treasury products, reflecting the wait-and-see attitude in the face of volatility in risky assets markets.

First quarter 2025 results

Sharp increase in profit before tax²+11% Q1/Q1 thanks to top line growth

Adjusted data²

Profit before tax²reached €458m, up +10.7% compared to the first quarter of 2024.

It includes contributions from Alpha Associates as well as aixigo, acquisitions of which were finalised in early April and early November 2024 respectively, and were therefore not included in the first quarter 2024. Their cumulative contribution to the profit before tax² in the first quarter reached +€4m, i.e. +1pp of Q1/Q1 growth.

The growth in profit before tax² was mainly due to the increase in revenues.

Adjusted net revenue² amounted to €912m, up +10.7% compared to the first quarter of 2024, +9% at constant scope, driven by all sources of revenues:

net management fees increased by +7.7% compared to the first quarter of 2024, to €824m, which reflects the good level of activity, the increase in average assets under management excluding JVs (+8.8% over the same period), but also the negative product mix effect on revenue margins;
performance fees (€23m), which are traditionally more moderate in the first quarter due to the lower number of fund anniversaries during this period, nevertheless rose by +30.7% compared to the first quarter of 2024; they reflect the good performance of Amundi’s investment management, with c.70% of assets under management ranked in the first or second quartiles according to Morningstar¹² over 1, 3 or 5 years, and 244 Amundi funds rated 4 or 5 stars by Morningstar¹² as at 31 March;
Amundi Technology’s revenues, at €26m, continued to grow steadily (+46.2% compared to the first quarter of 2024), amplified this quarter by the consolidation of aixigo (+€4m); excluding aixigo, these revenues were up +21.2% organically;
finally, the Financial and other revenues² amounted to €39m, up sharply compared to the first quarter of 2024 thanks to capital gains on the private equity portfolio in seed money and a positive mark-to-market from equity holdings, despite the impact of the fall in short-term rates in the euro zone.

The increase in adjusted²operating expenses, €478m, is +8.8% compared to the first quarter of 2024, +6% at constant scope. It remains lower than that of revenues, thus generating a positive jaws effect of nearly 3 percentage points excluding the scope effect related to the acquisition of Alpha Associates and aixigo, reflecting the Group’s operational efficiency.

In addition to the scope effect, this increase is mainly due to:

investments in the development initiatives of the 2025 Ambitions plan, including technology, third-party distribution and Asia;
provisioning for individual variable remuneration, in line with the growth in results.

The cost-income ratio at 52.4% on an adjusted data basis², improved compared to the same quarter last year and is in line with the Ambitions 2025 target (<53%).

The adjusted²gross operating income (GOI) amounted to €434m, up +12.9% compared to the first quarter of 2024, +11.8% at constant scope, reflecting revenue growth.

Share of net income of equity-accounted companies¹³, at €28m, down slightly compared to the first quarter of 2024, reflects the decline in net financial income of the main contributing entity, the Indian JV SBI FM. The decline in the Indian equities markets resulted in negative mark-to-market in the JV’s financial income, which nevertheless continues to benefit from strong growth in its activity with management fees up of over +20% Q1/Q1.

The adjusted²corporate tax expense for the first quarter of 2025 reached -€155m, a very strong increase – +60.8% – compared to the first quarter of 2024.

In France, in accordance with the Finance law for 2025, an exceptional tax contribution must be booked in fiscal year 2025. It is calculated on the average of the profits made in France in 2024 and 2025. This exceptional contribution is estimated¹⁴ to -€72m for the year as a whole, but it will not be accounted for on a straight-line basis over the quarters. It amounted to -€46m in the first quarter of 2025, with the rest spread over the next three quarters. Excluding this exceptional contribution, the adjusted² tax expense would have been -€109m and the adjusted² effective tax rate would be equivalent to that of the first quarter of 2024.

Adjusted²net income amounts to €303m. Excluding the exceptional tax contribution, it would have been close to €350m, up +10% compared to the first quarter of 2024.

The adjusted²net earnings per share in the first quarter of 2025 was €1.48, including -€0.22 related to the exceptional tax contribution in France. Excluding this exceptional tax contribution, adjusted² earnings per share would therefore have been €1.70, up +9.6% compared to the first quarter of 2024.

Accounting data in the first quarter of 2025

Accounting net income, Group share amounted to €283m. It includes the exceptional tax contribution in France of -€46m.

As in other quarters, accounting net income includes non-cash charges related to the acquisitions of Alpha Associates and aixigo and the amortisation of intangible assets related to distribution agreements and client contracts (including the corresponding new charges related to Alpha Associates), for a total of -€14m after tax. Integration costs related to the partnership with Victory Capital, closed on 1 April 2025, were also recorded in the first quarter, for a total of -€5m after tax. Furthermore, amortisation of intangible fixed assets adjustments after the integration of aixigo was also recognised in operating expenses -€1m after tax (See the details of all these elements in p. 11).

Accounting net earnings per share in the first quarter of 2025 was €1.38, including the exceptional tax contribution in France.

A solid financial structure, €1.2bn in surplus capital

Tangible net assets¹⁵ amounted to €4.8bn as at 31 March 2025, up +€0.3bn or +7% compared to the end of 2024, in line with the quarter’s net income.

The CET1 solvency ratio stood at 15.5%¹⁶ as at 31 March 2025.

As indicated at the time of signing in July 2024, the partnership with Victory Capital will have no material effect on the ratio.

The capital surplus at the end of the first quarter amounted to €1.2bn, taking into account the dividend to be paid for 2024, the net income for the first quarter and the related dividend provision.

Future investments and operational efficiency

This quarter, Amundi demonstrated its ability to:

Be agile and accompany its clients in different market contexts, thanks to its wide range of high-performing investment management expertise and product innovation;
Develop services to offer technological or investment management solutions to players in the entire savings value chain;
Offer a full range of Responsible Investment solutions, in order to adapt to all client demands;
Develop in Europe including in the United Kingdom;
Invest and accelerate on the growth pillars of its strategic plan: Asia, third-party distribution, ETFs, technology, services.

To finance future investments and accelerate the reallocation of our resources towards our growth drivers, we set ourselves a cost optimisation target of €30 to €40m, to be achieved as from 2026.

* * * * *

APPENDICES

Adjusted income statement²of the first quarter of 2025

(M€)	Q1 2025	Q1 2024	% var. Q1/Q1

Net revenue – Adjusted	912	824	+10.7%
Net management fees	824	766	+7.7%
Performance fees	23	18	+30.7%
Technology	26	18	+46.2%
Financial income and other income – Adjusted	39	23	+68.5%
Operating expenses – Adjusted	(478)	(439)	+8.8%
Cost/income ratio – Adjusted (%)	52.4%	53,3%	-0.9pp
Gross operating income – Adjusted	434	385	+12.9%
Cost of risk & others	(4)	(0)	NS
Share of net income of equity-accounted companies	28	29	-3.7%
Income before tax – Adjusted	458	413	+10.7%
Corporate tax – Adjusted	(155)	(97)	+60.8%
Of which exceptional tax contribution in France	(46)	–	NS
Non-controlling interests	1	1	+14.3%
Net income Group share – Adjusted	303	318	-4.5%
Amortisation of intangible assets, after tax	(14)	(15)	-7.4%
Amortisation of aixigo PPA, after tax	(1)	–	–
Integration costs, after tax	(5)	–	–
Net income Group share	283	303	-6.6%
Earnings per share (€)	1.38	1.48	-7.0%
Earnings per share – Adjusted (€)	1.48	1.55	-4.9%

Change in assets under management from the end of 2021 to the end of March 2025¹⁷

(€bn)	*Assets under management*	*Net* *inflows*	*Market and forex effect*	*Scope* *Effect*			*Change in AuM* *vs. prior quarter*
As of 31/12/2021	2,064					+14%¹⁸
Q1 2022		+3.2	-46.4		–
As of 31/03/2022	2,021					-2.1%
Q2 2022		+1.8	-97.7		–
As of 30/06/2022	1,925					-4.8%
Q3 2022		-12.9	-16.3		–
As of 30/09/2022	1,895					-1.6%
Q4 2022		+15.0	-6.2		–
As of 31/12/2022	1,904					+0.5%
Q1 2023		-11.1	+40.9		–
As of 31/03/2023	1,934					+1.6%
Q2 2023		+3.7	+23.8		–
As of 31/06/2023	1,961					+1.4%
Q3 2023		+13.7	-1.7		–
As of 30/09/2023	1,973					+0.6%
Q4 2023		+19.5	+63.8		-20
As of 31/12/2023	2,037					+3.2%
Q1 2024		+16.6	+62.9		–
As of 31/03/2024	2,116					+3.9%
Q2 2024		+15.5	+16.6		+8
30/06/2024	2,156					+1.9%
Q3 2024		+2.9	+32.5		–
30/09/2024	2,192					+1.6%
Q4 2024		+20.5	+28.2		–
31/12/2024	2,240					+2.2%
Q1 2025		+31.1	-24.0		–
31/03/2025	2,247					+0.3%

Total year-on-year between 31 March 2024 and 31 March 2025: +6.2%

Net inflows +€70.0bn
Market effect +€63.8bn
Forex effect -€10.5bn
Scope effects +€7.9bn
(Alpha Associates’ first consolidation in Q2 2024, the acquisition of aixigo has no effect on assets under management)

Details of assets under management and net inflows by client segments¹⁹

(€bn)	AuM 31.03.2025	AuM 31.03.2024	% change /31.03.2024	Inflows Q1 2025	Inflows Q1 2024
French Networks	139	137	+1.3%	+0.2	+1.5
International networks	162	165	-1.6%	-2.7	-2.0
Of which Amundi BOC WM	2	3	-21.2%	+0.3	-0.2
Third-Party Distributors	398	345	+15.6%	+8.3	+7.0
Retail	700	647	+8.2%	+5.8	+6.5
Institutional & Sovereigns (*)	550	511	+7.5%	+30.1	+9.7
Corporates	111	108	+2.1%	-10.3	-4.2
Employee savings plans	95	90	+6.0%	-0.9	-0.9
CA & SG Insurers	430	427	+0.7%	+3.6	+1.0
Institutional	1,186	1,137	+4.3%	+22.4	+5.6
JVs	362	332	+8.9%	+2.9	+4.5
Total	2,247	2,116	+6.2%	+31.1	+16.6

(*) Including funds of funds

Details of assets under management and net inflows by asset classes¹⁹

(€bn)	AuM 31.03.2025	AuM 31.03.2024	% change /31.03.2024	Inflows Q1 2025	Inflows Q1 2024
Equities	564	505	+11.7%	+26.4	-2.6
Multi-assets	271	280	-3.1%	-1.0	-7.6
Bonds	759	700	+8.4%	+14.3	+13.9
Real, alternative, and structured products	111	107	+4.2%	-2.8	-0.3
MLT ASSETS excl. JVs	1,705	1,591	+7.2%	+36.9	+3.4
Treasury products excl. JVs	180	193	-6.5%	-8.7	+8.7
TOTAL excluding JVs	1,885	1,784	+5.7%	+28.2	+12.1
JVs	362	332	+8.9%	+2.9	+4.5
TOTAL	2,247	2,116	+6.2%	+31.1	+16.6
*Of which MLT assets*	*2,034*	*1,892*	*+7.5%*	*+39.7*	*+7.7*
*Of which Treasury products*	*213*	*224*	*-5.1%*	*-8.6*	*+8.9*

Details of assets under management and net inflows by type of management and asset classes¹⁹

(€bn)	AuM 31.03.2025		AuM 31.03.2024	% change /31.03.2024	Inflows Q1 2025	Inflows Q1 2024
Active management		1,149	1,117	+2.9%	+6.3	+1.3
Equities		204	209	-2.1%	-3.9	-2.8
Multi-assets		260	270	-3.6%	-1.0	-8.0
Bonds		685	639	+7.3%	+11.2	+12.0
Structured products		42	41	+3.7%	-2.0	+0.6
Passive management		445	368	+21.0%	+33.4	+2.5
ETFs & ETC		272	227	+19.8%	+10.4	+5.0
Index & Smart beta		173	140	+23.0%	+23.0	-2.5
Real and Alternative Assets		69	66	+4.5%	-0.7	-0.9
Real assets		65	61	+5.8%	-0.6	-0.2
Alternative		4	4	-12.8%	-0.1	-0.7
TOTAL MLT assets excluding JVs		1,705	1,591	+7.2%	+36.9	+3.4
Treasury products excl. JVs		180	193	-6.5%	-8.7	+8.7
TOTAL excluding JVs		1,885	1,784	+5.7%	+28.2	+12.1
JVs		362	332	+8.9%	+2.9	+4.5
TOTAL		2,247	2,116	+6.2%	+31.1	+16.6

Details of assets under management and net inflows by geographic area¹⁹

(€bn)	AuM 31.03.2025	AuM 31.03.2024	% change /31.03.2024	Inflows Q1 2025	Inflows Q1 2024
France	1,001	978	+2.3%	+0.5	+10.0
Italy	198	208	-4.6%	-1.9	-1.1
Europe excluding France & Italy	456	391	+16.6%	+23.7	+4.0
Asia	462	423	+9.3%	+7.8	+6.8
Rest of the world	130	116	+11.7%	+1.0	-3.0
TOTAL	2,247	2,116	+6.2%	+31.1	+16.6
*TOTAL outside France*	1,246	1,138	+9.5%	+30.6	+6.6

Methodological appendix – APM

Accounting and adjusted data

Accounting data – They include

amortisation of intangible assets, recorded as other revenues, and from Q2 2024, other non-cash charges spread according to the schedule of payments of the price adjustment until the end of 2029; these expenses are recognised as deductions from net revenues, in financial expenses.
integration costs related to the transaction with Victory Capital and PPA amortisation related to the acquisition of aixigo recorded in the fourth quarter as operating expenses. No such costs were recorded in the first nine months of 2024.

The aggregate amounts of these items are as follows for the different periods under review:

Q1 2024: -€20m before tax and -€15m after tax
Q4 2024: -€38m before tax and -€28m after tax
Q1 2025: -€29m pre-tax and -€20m after tax

Adjusted data – In order to present an income statement that is closer to economic reality, the following adjustments have been made: restatement of the amortisation of distribution agreements with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; these amortisations and non-cash expenses are recognised as a deduction from net revenues; restatement of the amortisation of a technology asset related to the acquisition of aixigo recognised in operating expenses. The integration costs for the transaction with Victory Capital are also restated.

Acquisition of Alpha Associates

In accordance with IFRS 3, recognition on Amundi’s balance sheet as at 01/04/2024 of:

a goodwill of €288m;
an intangible asset of €50m, representing client contracts, amortised on a straight-line basis until the end of 2030;
a liability representing the conditional price adjustment not yet paid, for €160m before tax, including an actuarial discount of -€30m, which will be amortized over 6 years.

In the Group’s income statement, the following is recorded:

amortisation of intangible assets for a full-year charge of -€7.6m (-€6.1m after tax);
other non-cash expenses spread according to the schedule of payments of the price adjustment until the end of 2029; these expenses are recognised as deductions from net revenues, in financial expenses.

In Q1 2025, amortisation of intangible assets was -€1.9m before tax and non-cash expenses were -€1.5m before tax (i.e. -€2.5m after tax).

Acquisition of aixigo

In accordance with IFRS 3, recognition on Amundi’s balance sheet at the date of acquisition of:

goodwill of €121m;
a technological asset of €36m representative of the goodwill attributed to aixigo’s software solutions, amortised on a straight-line basis over 5 years;

The full-year amortisation expense of the technology asset was -€7.2m (-€4.8m after tax); in Q1 2025 the amortisation expense was -€1.8m (-€1.2m after tax); it is recognised in operating expenses.

Alternative Performance Measures²⁰

In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that are calculated in accordance with the methodological appendix presented above.

The adjusted data can be reconciled with the accounting data as follows:

= accounting data

= adjusted data

(M€)	Q1 2025	Q1 2024	Q4 2024


Net revenue (a)	892	804	901
– Amortisation of intangible assets before tax	(18)	(20)	(22)
– Other non-cash expenses related to Alpha Associates	(1)	0	(1)
Net revenue – Adjusted (b)	912	824	924

Operating expenses (c)	(486)	(439)	(496)
– Integration costs before tax	(7)	0	(13)
– Amortisation of aixigo-related PPA before tax	(2)	0	(1)
Operating expenses – Adjusted (d)	(478)	(439)	(482)

Gross Operating Income (e)=(a)+(c)	406	364	405
Gross operating income – Adjusted (f)=(b)+(d)	434	385	443
Cost/income ratio (%) -(c)/(a)	54.5%	54.6%	55.1%
Cost/income ratio – Adjusted (%) -(d)/(b)	52.4%	53.3%	52.1%
Cost of risk & other (g)	(4)	(0)	(3)
Share of net income of equity-accounted companies (h)	28	29	29
Profit before tax (i)=(e)+(g)+(h)	429	393	431
Profit before tax – Adjusted (j)=(f)+(g)+(h)	458	413	469
Corporate tax (k)	(147)	(91)	(83)
Corporate tax – Adjusted (l)	(155)	(97)	(93)
Non-controlling interests (m)	1	1	1
Net income Group share (n)=(i)+(k)+(m)	283	303	349
Net income Group share – Adjusted (o)=(j)+(l)+(m)	303	318	377

Earnings per share (€)	1.38	1.48	1.70
Earnings per share – Adjusted (€)	1.48	1.55	1.84

Shareholding

	31 March 2025		31 December 2024		31 March 2024
*(units)*	Number of shares	% of capital	Number of shares	% of capital	Number of shares	% of capital
Crédit Agricole Group	141,057,399	68.67%	141,057,399	68.67%	141,057,399	68.93%
Employees	4,128,079	2.01%	4,272,132	2.08%	2,869,026	1.40%
Treasury shares	1,961,141	0.95%	1,992,485	0.97%	1,259,079	0.62%
Free float	58,272,643	28.37%	58,097,246	28.28%	59,462,130	29.06%

Number of shares at the end of the period	205,419,262	100.0%	205,419,262	100.0%	204,647,634	100.0%
Average number of shares since the beginning of the year	205,419,262	–	204,776,239	–	204,647,634	–
Average number of shares quarter-to-date	205,419,262	–	205,159,257	–	204,647,634	–

Average number of shares pro rata temporis.

The average number of shares increased by +0.1% between Q4 2024 and Q1 2025, and by +0.4% between Q1 2024 and Q1 2025.
A capital increase reserved for employees was recorded on 31 October 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction).
Amundi announced on 7 October 2024 a buyback programme of up to 1 million shares (i.e. ~0.5% of the share capital before the transaction) to cover performance shares plans. It was finalised on November 27, 2024.

Financial communication calendar

Workshop to presenting the Third-Party Distribution business line – Thursday 19 June in London
General Shareholders’ Meeting – Tuesday 27 May 2025
Q2 and H1 2025 earnings release – Tuesday 29 July 2025
Q3 and 9-month 2025 earnings release – Tuesday 28 October 2025
New strategic three-year plan – in the fourth quarter 2025

2024 dividend schedule: €4.25 per share

Ex dividend date: Monday 10 June 2025
Payment: from Wednesday 12 June 2025

About Amundi

Amundi, the leading European asset manager, ranking among the top 10 global players²¹, offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2.2 trillion of assets²².

With its six international investment hubs²³, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

Amundi clients benefit from the expertise and advice of 5,700 employees in 35 countries.

Amundi, a trusted partner, working every day in the interest of its clients and society.

www.amundi.com

Press contacts:
Natacha Andermahr
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com

Corentin Henry
Tel. +33 1 76 32 26 96
corentin.henry@amundi.com

Investor contacts:
Cyril Meilland, CFA
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com

Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com

Annabelle Wiriath

Tel. + 33 1 76 32 43 92

annabelle.wiriath@amundi.com

DISCLAIMER

This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements.

Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

The figures presented were prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date. The financial information set out herein do not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

¹        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV.
²        Adjusted data: see p. 11
³        Net income Group share
⁴        Total tax expense in Q1 2025 of -€155m, of which the exceptional tax contribution (surcharge) in France booked in Q1 for -€46m; the total amount of the exceptional contribution estimated to be paid in fiscal year 2025 is estimated at -€72m; Q1 2025 adjusted net income including this surcharge was €303m.
⁵        The inflows presented in this section are not cumulative, as they may overlap in part, for example an ETF sold to a third-party distributor in Asia.
⁶        Medium to Long-Term Assets, excluding JVs
⁷        4.9% voting rights
⁸        Adjusted for the deconsolidation of Amundi US assets distributed to US clients
⁹        Composite Index for equities: 50% MSCI World + 50% Eurostoxx 600
¹⁰        Bloomberg Euro Aggregate for Fixed Income Markets
¹¹        Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data as of end–March 2024.
¹²        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, March 2025; as a percentage of the assets under management of the funds in question; the number of Amundi’s open-ended funds rated by Morningstar was 1071 at the end of March 2025. © 2025 Morningstar, all rights reserved
¹³        Reflecting Amundi’s share of the net income of minority JVs in India (SBI FM), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion),
¹⁴        Under the assumption that FY 2025 taxable profit in France will be equivalent to that of 2024, before adjusting the average for actual FY 2025 results
¹⁵        Shareholder’s equity excluding goodwill and other intangible assets
¹⁶        According to the new definition of the ratio resulting from the CRR3 regulation (Capital Requirements Regulation 3) of the European Union; ratio calculated excluding Q1 accounting net income
¹⁷        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV.
¹⁸        Lyxor, integrated as of 31/12/2021; sale of Lyxor Inc. in Q4-23
¹⁹        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV; as of 01/01/2024, reclassification of short-term bond strategies (€30bn of assets under management) as Bonds ; previously classified as Treasury products until that date; assets under management up to this date have not been reclassified in this table
²⁰        See also the section 4.3 of the 2024 Universal Registration Document filed with the AMF on 16 April 2025 under number D25-0272
²¹Source: IPE “Top 500 Asset Managers” published in June 2024 based on assets under management as of 31/12/2023
²²Amundi data as at 31/03/2025
²³Paris, London, Dublin, Milan, Tokyo and San Antonio (via our strategic partnership with Victory Capital)

Attachment

Amundi_PR_Q1 2025_EN_vdef

The MIL Network –

April 29, 2025

MIL-Evening Report: The government plans to regulate carbon capture technologies – but who will be the regulating agency?

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

The Icelandic company Carbfix has developed a technology to store carbon dioxide. Shutterstock/Oksana Bali

Newly released documents add more detail to the government’s plans for a regulatory framework to enable carbon capture and storage.

But they show indecision on two key matters – the legal framework and the agency that would be in charge.

The plan relates primarily to conventional carbon capture and storage technologies, which remove carbon dioxide from an industrial gas flow and dispose of it deep underground.

It also covers some methods of carbon dioxide removal, an emerging but as yet commercially untested suite of technologies such as enhanced rock weathering, bio-energy capture and direct air capture.

The latter technologies are not predicated on fossil fuel consumption and could operate in many different situations.

Neither kind of carbon removal is a simple answer to the climate challenge and the priority remains on cutting emissions. But we need to have regulatory frameworks in place for both reduction and removal technologies of all kinds, and soon.

Earning credits from emissions trading

Both types of technologies will benefit from the government’s decision to allow companies to get credits in the New Zealand Emissions Trading Scheme (ETS) for the disposal of carbon dioxide from any source. Credits will not be tied to any one technology, according to the released policy discussion documents.

It’s also a positive development that an operator can get credits as a separate removal activity, not merely as a reduction of an existing emissions liability (although official advice was initially against separate credits). This allows for diversity in the players and the systems for removals.

The government has decided it will assume liability for any carbon dioxide leaks from geological storage, but only after verification that fluids in the subsurface are behaving as expected after closure, and no sooner than 15 years after closure.

Leaks this long after injection are unlikely, but we nevertheless need strong regulation, financial assurance to guarantee remedial action and clear liability rules.

Companies will be able to earn credits for the permanent disposal of carbon dioxide.
Shutterstock/VectorMine

The government also states ETS credits will only be available for removals that can be recognised internationally against New Zealand’s commitments to cut emissions. This would apply only to geological storage but not deep-ocean deposition or rock weathering.

But that’s not quite right. The general international rules already allow the inclusion in a national greenhouse gas inventory of removals from any process. Detailed methodologies for carbon dioxide removal are likely to become available within the next few years.

With change underway, New Zealand’s new regime should allow a wide range of removal methods to receive credits.

A new regulatory regime

The documents acknowledge that New Zealand needs a broader regulatory regime, beyond the ETS, to cover the entire process of carbon dioxide removal. The suitability of a disposal site must be verified, a detailed geological characterisation is required and the project design and operation need to be approved.

Approval is also required for closure and post-closure plans, and systematic monitoring. Monitoring is everything; it must be accurate and verifiable but also cost effective. The operator will have to pay for monitoring for decades after site closure.

In agreeing on these features, the government is following the examples of many countries overseas, including Australia, Canada, the UK and the EU.

However, it is intriguing that the government hasn’t decided where this new regime should sit in the statute book, and who should manage it. Much of the apparently relevant text in the documents has been redacted.

Given that carbon dioxide would be stored underground, the Crown Minerals Act is one possibility. But this legislation is all about extraction, not disposal. Although the New Zealand petroleum and minerals unit at the Ministry for Business, Innovation and Employment has expertise in regulating subsurface operations, it focuses largely on oil and gas, not on innovative climate projects.

The Resource Management Act certainly provides a regulatory approval regime, but it is awaiting reform and would need much more than the currently proposed changes to deal with carbon capture and storage or removal properly. So would legislation covering activities within New Zealand’s exclusive economic zone.

Indeed each act would require a whole new part to be added, with its own principles and procedures. There is a lot to be said for a standalone new act, in a form that would fit with the emerging Natural Environment Act that will replace the Resource Management Act.

The new legislation and regulation regime could be administered by the Environmental Protection Authority, which is already involved in Resource Management Act call-ins and fast-track approvals, the legislation covering the exclusive economic zone and the ETS.

One can only guess there might be tensions between contending factions in government. What we should ask for is a legislative and institutional arrangement that allows carbon capture and storage or removal technologies to evolve and grow without being a mere offshoot of the oil and gas industry or any other existing sector.

As part of our efforts to reduce emissions, we must make sure all kinds of removal technologies are available that truly suit New Zealand.

Barry Barton is part of the project “Derisking Carbon Dioxide Removal at Megatonne Scale in Aotearoa” which is funded by the MBIE’s Endeavour Fund. In the past, he has received funding from MBIE and the gas industry for research on CCS legal issues.
He is a director of the Environmental Defence Society.

– ref. The government plans to regulate carbon capture technologies – but who will be the regulating agency? – https://theconversation.com/the-government-plans-to-regulate-carbon-capture-technologies-but-who-will-be-the-regulating-agency-254696

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

MIL-OSI New Zealand: Mark Cameron drafts bill to stop banking wokery and protect rural borrowers

Source: ACT Party

ACT Rural Communities spokesperson Mark Cameron has drafted a bill to scrap the red tape forcing banks and financial institutions to make climate-related disclosures, by repealing Part 7A of the Financial Markets Conduct Act 2013.

“Rural and regional New Zealanders are being hammered by banking wokery that judges businesses on political fashion rather than commercial sense,” says Mr Cameron.

“Farmers are already seeing discrimination creeping into interest rates based on perceived emissions. They fear they’ll be the next to be ‘debanked’, not because of financial risk, but because they don’t fit the agenda of the suit-and-tie bigwigs. We’ve already seen it happening to essential industries like mining and service stations.

“These rules are the ultimate virtue signal that only ACT opposed back in 2021. They reduce banking competition and force significant costs on lenders – and therefore borrowers – for absolutely no environmental gain.

“This week I wrote to the Minister for Commerce and Consumer Affairs, raising concerns about the harmful impact these regulations have on borrowers, banking competition, and economic growth, and encouraging him to adopt my proposal as a Government Bill.

“The Bill I’ve drafted sends two clear messages to the banks. First, they will no longer win political favour by making ideological lending decisions, and they can be confident that they won’t be punished for sticking to their core role of serving customers. Second, for those banks that have fallen under ideological capture, it’s a signal to get back to basics – or risk losing customers to competitors who understand what banking is really about.

“For government and the regulators of banks, it’s about getting back to basics too. The role of financial regulation is to ensure the sound functioning of financial markets in a way that promotes trust, efficiency, and stability. The climate-disclosure requirements are a departure from this limited function into social engineering.

“It’s also unnecessary. We already have an Emissions Trading Scheme that makes these woke rules completely redundant – emissions are capped and the cost of carbon is already factored into investment and production decisions.

“So while the disclosure requirements haven’t reduced a single gram of global emissions, they do put pressure on the banks by waving a stick at the banks, tacitly saying ‘if we don’t like who you’re lending to we’ll hit you’. That is part of what’s driving this madness and why ACT believes markets, not ministers should decide where investment is directed.

“The answer to woke lending practices is not more red tape, it’s getting rid of the existing stuff that’s causing it in the first place.

“We’ll win the war on banking wokery by letting better ideas and businesses compete against out-of-touch lenders. Piling on additional heavy-handed regulations risks scaring off new entrants to the market, further entrenching the power of the big players. If we want to force their hand, the market is best placed to do it.”

Mark Cameron’s letter to the Minister can be read here.

A copy of the Financial Markets Conduct (Repeal of Climate-related Disclosure Requirements) Amendment Bill can be read here.

The climate-related disclosure requirements were introduced by Labour in 2021 through the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI New Zealand: Statement by Minister Todd McClay following the March 2025 Pastoral Sector Group meeting

Source: New Zealand Government

The Pastoral Sector Group (PSG) has held its first meeting, discussing farm emissions.
The group consists of Agriculture, Trade and Investment Minister Todd McClay, Climate Change Minister Simon Watts, and Chairs and CEOs from: Beef + Lamb New Zealand, Dairy Companies Association of New Zealand, Dairy NZ, Deer Industry New Zealand, Federated Farmers, and the Meat Industry Association.
Pasture Sector
Sector representatives contributed perspectives on the current state of the industry and a desire to work constructively toward a positive outcome for the rural sector.
They underlined the significant eﬀort made by farmers to date.
They stressed the need for any consideration of emissions reduction to be based upon science and to be solutions driven.
They stressed the need to revise the domestic methane target based on the principle of no additional warming.
They stressed the need for any solutions to be aﬀordable for farmers; and for the need to avoid imposing costs upon industry and government.
They voiced concerns about the eﬀects afforestation was having on the pastoral sector and welcomed the Government’s recent announcement to restrict farm to forest conversions.
They raised concerns about the negative impact that a price on agricultural emissions would have on production.
They stressed the need for certainty and time for the primary sector.
Government
Ministers reiterated that this group was to allow the sector to provide their views to government directly and to engage in a respectful dialogue.
Ministers thanked the primary sector for their significant contribution to New Zealand, and in particular, the importance of a strong primary sector to the New Zealand economy.
They stressed that the PSG was an opportunity to talk openly and that it was not a decision-making body.
The members of the group agreed that New Zealand farmers are among the world’s most carbon-eﬃcient food producers and were willing to do their part for New Zealand’s overall commitment to reduce emissions.
Ministers confirmed the following:

That the Government has removed agriculture from the Emissions Trading Scheme.
That the Government has disbanded He Waka Eka Noa.
That the Government is committed to a split gas approach.
That the Government commissioned an independent scientific review on the role of biogenic methane against additional warming.
That the Government will pass legislation this year to implement its decision of 4 December 2024 to restrict full farm to forest conversions.
That the Government is committed to meeting New Zealand’s climate obligations without closing down farms or sending jobs and production overseas.
That all decisions in respect to farm emissions will be informed by accepted science.
That the Government is mindful of the impact of costs related to emissions reduction on farmers; and the implications that cost could have for production.
That a revised 2050 biogenic methane target will be set this year.
That the Government is committed to the use of science and innovation to reduce emissions, not reducing on farm production.
That it is for New Zealand to decide how to reduce emissions.
That New Zealand has climate change obligations under some trade agreements and that the Government will be guided by domestic considerations and interests including those of New Zealand producers and the economy.
The Government currently has a plan that shows New Zealand can meet its obligations while growing the economy and without closing down farms or sending production or jobs overseas.
That the Government will continue to build confidence in the primary sector.

The PSG will meet again next month.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2025 First-Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, April 28, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 first quarter ended March 31, 2025.

2025 First Quarter Financial and Operating Highlights
(at March 31, 2025 and on a year-over-year basis unless noted)

88 consecutive quarters of profitability
Total interest income increased 6.1% to $41.0 million, driven by a 19-basis point improvement in the yield on earning assets and a higher average loan balance
Total loans increased by $40.5 million, or 1.6% to $2.58 billion
Total assets increased by $101.2 million, or 3.1% to $3.39 billion
Total deposits increased by $78.9 million, or 3.0% to $2.70 billion
Efficiency ratio improved to 66.79%, compared to 74.08%
Pre-tax, pre-provision income increased 49.6% to $9.3 million, from $6.2 million
Net income increased 29.7% to $7.0 million, or $0.51 per basic and diluted share
Asset quality remains at historically strong levels with nonperforming loans of only $4.5 million and net charge-offs to average loans of 0.01%
Tier 1 leverage ratio was 8.44%

Lars B. Eller, President and Chief Executive Officer, stated, “2025 is off to a solid start, reflecting the positive impacts our strategic priorities are having on our financial performance. Throughout the first quarter we made progress enhancing profitability, controlling growth, driving innovation, and achieving greater operational efficiency. Most importantly, our strong first-quarter results underscore the excellent execution by our team and F&M’s ongoing commitment to delivering local, personalized financial services to our communities in Ohio, Indiana, and Michigan.”

Mr. Eller continued, “For the first quarter of 2025 our net interest margin grew 43-basis points year-over year to 3.03% and increased 19-basis points from the fourth quarter of 2024. This growth demonstrates the benefits of continued loan repricing, as well as our disciplined approach to new loan originations and strategic efforts underway to improve our cost of funds. Total revenue – defined by net interest income plus noninterest income – increased 16.7% year-over-year, while noninterest expense rose 5.2%. This favorable spread strengthened our efficiency ratio and drove a 49.6% increase in pre-tax, pre-provision income. As we continue to successfully execute against our 2025 strategic priorities, we expect continued year-over-year growth in net income.”

Income Statement
Net income for the 2025 first quarter ended March 31, 2025, was $7.0 million, compared to $5.4 million for the same period last year. Net income per basic and diluted share for the 2025 first quarter was $0.51, compared to $0.39 for the same period last year.

Deposits
At March 31, 2025, total deposits were $2.70 billion, an increase of 3.0% from March 31, 2024. The Company’s cost of interest-bearing liabilities was 2.76% for the quarter ended March 31, 2025, compared to 3.06% for the quarter ended March 31, 2024.

Mr. Eller commented, “We continue to pursue opportunities that optimize our deposit base and grow low-cost checking deposits. As a result, more expensive time-account balances have declined year-over-year by $19.5 million, while total deposits have increased by $78.9 million reflecting growth in lower cost core deposits. These trends have reduced our cost of funds, while improving our loan-to-deposit ratio.”

Loan Portfolio and Asset Quality
“Offices opened in 2023 continue to add new loans and new deposits at a faster pace than our legacy locations, which we believe demonstrates the need for the local community banking services F&M provides. Overall, we are experiencing stable demand across all of our markets, as a result of the addition of proven bankers to our team, our regional structure, new financial products, and growing commercial relationships. Positive demand trends allow us to control growth, expand our yield on loans, and maintain excellent asset quality. Our credit quality remains strong with nonperforming loans to total loans of just 0.17% at March 31, 2025 – the fourth quarter in a row this metric has remained below 0.20%,” continued Mr. Eller.

Total loans, net at March 31, 2025, increased 1.6%, or by $40.5 million to $2.58 billion, compared to $2.54 billion at March 31, 2024. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and commercial real estate loans, partially offset primarily by lower consumer, agricultural real estate, and consumer real estate loans. Compared to the quarter ended December 31, 2024, total loans, net at March 31, 2025, increased by 0.8% or $20.0 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $4.5 million, or 0.17% of total loans at March 31, 2025, compared to $19.4 million, or 0.76% of total loans at March 31, 2024, and $3.1 million, or 0.12% at December 31, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at March 31, 2025. In addition, F&M’s commercial real estate office credit exposure represented 5.4% of the Company’s total loan portfolio at March 31, 2025, with a weighted average loan-to-value of approximately 63% and an average loan of approximately $965,366.

F&M’s CRE portfolio included the following categories at March 31, 2025:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)	Percent of Total Loan Portfolio⁽^*)

Industrial	$	281,484	21.2%	10.9%
Multi-family		217,903	16.4%	8.4%
Retail		213,281	16.1%	8.3%
Hotels		157,139	11.8%	6.1%
Office		139,069	10.5%	5.4%
Gas Stations		70,983	5.3%	2.7%
Food Service		52,827	4.0%	2.0%
Senior Living		31,400	2.4%	1.2%
Development		29,907	2.3%	1.2%
Auto Dealers		27,294	2.1%	1.1%
Other		104,411	7.9%	4.0%
Total CRE	$	1,325,698	100.0%	51.3%

* Numbers have been rounded

At March 31, 2025, the Company’s allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% at March 31, 2024. The allowance to total loans was 1.07% at March 31, 2025, compared to 1.05% at March 31, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at March 31, 2025, compared to 1.11% at March 31, 2024.

Mr. Eller concluded, “While the near-term economic environment has become more fluid, we believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to transform our business in 2025. As a result, we continue to believe 2025 will be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 8.5% to $344.6 million, or $25.12 per share at March 31, 2025, from $317.7 million, or $23.22 per share at March 31, 2024. The Company had a Tier 1 leverage ratio of 8.44%, compared to 8.40% at March 31, 2024.

Tangible stockholders’ equity increased to $263.0 million at March 31, 2025, compared to $256.5 million at March 31, 2024. On a per share basis, tangible stockholders’ equity at March 31, 2025, was $19.17 per share, compared to $18.75 per share at March 31, 2024.

For the three months ended March 31, 2025, the Company declared cash dividends of $0.22125 per share, representing a 0.6% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the three months ended March 31, 2025, the dividend payout ratio was 43.10% compared to 55.52% for the same period last year.

About Farmers & Merchants State Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Interest Income
Loans, including fees	$	37,072		$	36,663		$	36,873		$	36,593		$	35,200
Debt securities:
U.S. Treasury and government agencies		2,097			1,882			1,467			1,148			1,045
Municipalities		382			384			387			389			394
Dividends		338			367			334			327			333
Federal funds sold		–			24			7			7			7
Other		1,113			2,531			2,833			2,702			1,675
Total interest income		41,002			41,851			41,901			41,166			38,654
Interest Expense
Deposits		13,988			15,749			16,947			16,488			15,279
Federal funds purchased and securities sold under agreements to repurchase		271			274			277			276			284
Borrowed funds		2,550			2,713			2,804			2,742			2,689
Subordinated notes		284			285			284			285			284
Total interest expense		17,093			19,021			20,312			19,791			18,536
Net Interest Income – Before Provision for Credit Losses		23,909			22,830			21,589			21,375			20,118
Provision for (Recovery of) Credit Losses – Loans		811			346			282			605			(289	)
Recovery of Credit Losses – Off Balance Sheet Exposures		(260	)		(120	)		(267	)		(18	)		(266	)
Net Interest Income After Provision for Credit Losses		23,358			22,604			21,574			20,788			20,673
Noninterest Income
Customer service fees		381			237			300			189			598
Other service charges and fees		1,124			1,176			1,155			1,085			1,057
Interchange income		1,421			1,322			1,315			1,330			1,429
Loan servicing income		762			771			710			513			539
Net gain on sale of loans		284			223			215			314			107
Increase in cash surrender value of bank owned life insurance		244			248			265			236			216
Net gain (loss) on sale of other assets owned		(54	)		22			–			49			–
Total noninterest income		4,162			3,999			3,960			3,716			3,946
Noninterest Expense
Salaries and wages		7,878			7,020			7,713			7,589			7,846
Employee benefits		2,404			2,148			2,112			2,112			2,171
Net occupancy expense		1,199			1,072			1,054			999			1,027
Furniture and equipment		1,278			1,032			1,472			1,407			1,353
Data processing		557			160			339			448			500
Franchise taxes		397			312			410			265			555
ATM expense		491			328			472			397			473
Advertising		503			498			597			519			530
FDIC assessment		465			505			516			507			580
Servicing rights amortization – net		127			244			219			187			168
Loan expense		228			236			244			251			229
Consulting fees		745			242			251			198			186
Professional fees		559			368			453			527			445
Intangible asset amortization		445			446			445			444			445
Other general and administrative		1,484			1,465			1,128			1,495			1,333
Total noninterest expense		18,760			16,076			17,425			17,345			17,841
Income Before Income Taxes		8,760			10,527			8,109			7,159			6,778
Income Taxes		1,808			2,146			1,593			1,477			1,419
Net Income		6,952			8,381			6,516			5,682			5,359
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		6,464			(7,403	)		11,664			2,531			(1,995	)
Reclassification adjustment for realized loss on sale of available-for-sale securities		–			–			–			–			–
Net unrealized gain (loss) on available-for-sale securities		6,464			(7,403	)		11,664			2,531			(1,995	)
Tax expense (benefit)		1,358			(1,554	)		2,449			531			(418	)
Other comprehensive income (loss)		5,106			(5,849	)		9,215			2,000			(1,577	)
Comprehensive Income	$	12,058		$	2,532		$	15,731		$	7,682		$	3,782
Basic Earnings Per Share	$	0.51		$	0.61		$	0.48		$	0.42		$	0.39
Diluted Earnings Per Share	$	0.51		$	0.61		$	0.48		$	0.42		$	0.39
Dividends Declared	$	0.22125		$	0.22125		$	0.22125		$	0.22		$	0.22

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	172,612		$	174,855		$	244,572		$	191,785		$	186,541
Federal funds sold		425			1,496			932			1,283			1,241
Total cash and cash equivalents		173,037			176,351			245,504			193,068			187,782

Interest-bearing time deposits		1,992			2,482			2,727			3,221			2,735
Securities – available-for-sale		438,568			426,556			404,881			365,209			347,516
Other securities, at cost		14,062			14,400			15,028			14,721			14,744
Loans held for sale		2,331			2,996			1,706			1,628			2,410
Loans, net of allowance for credit losses		2,555,552			2,536,043			2,512,852			2,534,468			2,516,687
Premises and equipment		33,163			33,828			33,779			34,507			35,007
Construction in progress		–			–			35			38			9
Goodwill		86,358			86,358			86,358			86,358			86,358
Loan servicing rights		5,805			5,656			5,644			5,504			5,555
Bank owned life insurance		35,116			34,872			34,624			34,359			34,123
Other assets		42,802			45,181			46,047			49,552			54,628

Total Assets	$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	502,318		$	516,904		$	481,444		$	479,069		$	510,731
Interest-bearing
NOW accounts		874,881			850,462			865,617			821,145			829,236
Savings		696,635			671,818			661,565			673,284			635,430
Time		626,450			647,581			676,187			667,592			645,985
Total deposits		2,700,284			2,686,765			2,684,813			2,641,090			2,621,382

Federal funds purchased and securities
sold under agreements to repurchase		27,258			27,218			27,292			27,218			28,218
Federal Home Loan Bank (FHLB) advances		245,474			246,056			263,081			266,102			256,628
Subordinated notes, net of unamortized issuance costs		34,846			34,818			34,789			34,759			34,731
Dividend payable		2,997			2,996			2,998			2,975			2,975
Accrued expenses and other liabilities		33,326			31,659			40,832			27,825			25,930
Total liabilities		3,044,185			3,029,512			3,053,805			2,999,969			2,969,864

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 3/31/25 and 12/31/24; outstanding 13,718,336 shares 3/31/25 and 13,699,536 shares 12/31/24		135,407			135,565			135,193			135,829			135,482
Treasury stock – 846,089 shares 3/31/25 and 864,889 shares 12/31/24		(10,768	)		(10,985	)		(10,904	)		(11,006	)		(10,851	)
Retained earnings		240,079			235,854			230,465			226,430			223,648
Accumulated other comprehensive loss		(20,117	)		(25,223	)		(19,374	)		(28,589	)		(30,589	)
Total stockholders’ equity		344,601			335,211			335,380			322,664			317,690

Total Liabilities and Stockholders’ Equity	$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA

	For the Three Months Ended
Selected financial data	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Return on average assets		0.85	%		0.99	%		0.78	%		0.69	%		0.66	%
Return on average equity		8.31	%		10.00	%		7.93	%		7.13	%		6.76	%
Yield on earning assets		5.19	%		5.20	%		5.27	%		5.22	%		5.00	%
Cost of interest bearing liabilities		2.76	%		3.01	%		3.21	%		3.18	%		3.06	%
Net interest spread		2.43	%		2.19	%		2.06	%		2.04	%		1.94	%
Net interest margin		3.03	%		2.84	%		2.71	%		2.71	%		2.60	%
Efficiency ratio		66.79	%		59.82	%		67.98	%		69.03	%		74.08	%
Dividend payout ratio		43.10	%		35.75	%		45.99	%		52.35	%		55.52	%
Tangible book value per share	$	17.71		$	17.74		$	17.72		$	16.79		$	16.51
Tier 1 leverage ratio		8.44	%		8.12	%		8.04	%		8.02	%		8.40	%
Average shares outstanding		13,706,003			13,699,869			13,687,119			13,681,501			13,671,166

Loans	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
(Dollar amounts in thousands)
Commercial real estate	$	1,325,698		$	1,310,811		$	1,301,160		$	1,303,598		$	1,304,400
Agricultural real estate		215,898			216,401			220,328			222,558			227,455
Consumer real estate		523,383			520,114			524,055			525,902			525,178
Commercial and industrial		278,254			275,152			260,732			268,426			256,051
Agricultural		153,607			152,080			137,252			142,909			127,670
Consumer		60,115			63,009			67,394			70,918			74,819
Other		24,985			24,978			25,916			26,449			26,776
Less: Net deferred loan fees, costs and other ⁽¹⁾		(36	)		(676	)		1,499			(1,022	)		(982	)
Total loans, net	$	2,581,904		$	2,561,869		$	2,538,336		$	2,559,738		$	2,541,367


Asset quality data	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
(Dollar amounts in thousands)
Nonaccrual loans	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391


Allowance for credit losses – loans	$	26,352		$	25,826		$	25,484		$	25,270		$	24,680
Allowance for credit losses – off balance sheet credit exposures		1,281			1,541			1,661			1,928			1,946
Total allowance for credit losses	$	27,633		$	27,367		$	27,145		$	27,198		$	26,626
Total allowance for credit losses/total loans		1.07	%		1.07	%		1.07	%		1.06	%		1.05	%
Adjusted credit losses with accretable yield/total loans		1.08	%		1.08	%		1.10	%		1.10	%		1.11	%
Net charge-offs:
Quarter-to-date	$	285		$	4		$	68		$	15		$	55
Year-to-date	$	285		$	142		$	138		$	70		$	55
Net charge-offs to average loans
Quarter-to-date		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%
Nonperforming loans/total loans		0.17	%		0.12	%		0.11	%		0.10	%		0.76	%
Allowance for credit losses/nonperforming loans		586.38	%		826.70	%		879.37	%		1016.08	%		127.28	%
NPA coverage ratio		586.38	%		826.70	%		879.37	%		1016.08	%		127.28	%

⁽¹⁾Includes carrying value adjustments of $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, and $969 thousand as of March 31, 2024 related to interest rate swaps associated with fixed rate loans

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)


	For the Three Months Ended					For the Three Months Ended
	March 31, 2025					March 31, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate	Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,578,531	$	37,072	5.75%	$	2,577,114	$	35,200	5.46%
Taxable investment securities		458,519		2,739	2.39%		384,928		1,686	1.75%
Tax-exempt investment securities		18,310		78	2.16%		21,109		86	2.06%
Fed funds sold & other		105,770		1,113	4.21%		110,388		1,682	6.09%
Total Interest Earning Assets		3,161,130	$	41,002	5.19%		3,093,539	$	38,654	5.00%

Nonearning Assets		166,630					159,240

Total Assets	$	3,327,760				$	3,252,779

Interest Bearing Liabilities:
Savings deposits	$	1,543,665	$	8,564	2.22%	$	1,443,530	$	9,407	2.61%
Other time deposits		627,498		5,424	3.46%		650,580		5,872	3.61%
Other borrowed money		245,734		2,550	4.15%		263,280		2,689	4.09%
Fed funds purchased & securities
sold under agreement to repurchase		27,480		271	3.94%		28,458		284	3.99%
Subordinated notes		34,828		284	3.26%		34,712		284	3.27%
Total Interest Bearing Liabilities	$	2,479,205	$	17,093	2.76%	$	2,420,560	$	18,536	3.06%

Noninterest Bearing Liabilities		509,190					514,986

Stockholders’ Equity	$	339,365				$	317,233

Net Interest Income and Interest Rate Spread			$	23,909	2.43%			$	20,118	1.94%

Net Interest Margin					3.03%					2.60%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)

	For the Three Months Ended March 31, 2025												For the Three Months Ended March 31, 2024
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	37,072	5.75	%	$	36,468	5.66	%	$	604	0.09	%	$	35,200	5.46	%	$	34,525	5.36	%	$	675		0.10	%
Taxable investment securities		2,739	2.39	%		2,739	2.39	%		–	0.00	%		1,686	1.75	%		1,686	1.75	%		–		0.00	%
Tax-exempt investment securities		78	2.16	%		78	2.16	%		–	0.00	%		86	2.06	%		86	2.06	%		–		0.00	%
Fed funds sold & other		1,113	4.21	%		1,113	4.21	%		–	0.00	%		1,682	6.09	%		1,682	6.09	%		–		0.00	%
Total Interest Earning Assets		41,002	5.19	%		40,398	5.11	%		604	0.08	%		38,654	5.00	%		37,979	4.92	%		675		0.08	%

Interest Bearing Liabilities:
Savings deposits	$	8,564	2.22	%	$	8,564	2.22	%	$	–	0.00	%	$	9,407	2.61	%	$	9,407	2.61	%	$	–		0.00	%
Other time deposits		5,424	3.46	%		5,424	3.46	%		–	0.00	%		5,872	3.61	%		5,872	3.61	%		–		0.00	%
Other borrowed money		2,550	4.15	%		2,547	4.15	%		3	0.00	%		2,689	4.09	%		2,707	4.11	%		(18	)	-0.02	%
Federal funds purchased and
securities sold under agreement to
repurchase		271	3.94	%		271	3.94	%		–	0.00	%		284	3.99	%		284	3.99	%		–		0.00	%
Subordinated notes		284	3.26	%		284	3.26	%		–	0.00	%		284	3.27	%		284	3.27	%		–		0.00	%
Total Interest Bearing Liabilities		17,093	2.76	%		17,090	2.76	%		3	-0.00	%		18,536	3.06	%		18,554	3.07	%		(18	)	-0.01	%

Interest/Dividend income/yield		41,002	5.19	%		40,398	5.11	%		604	0.08	%		38,654	5.00	%		37,979	4.92	%		675		0.08	%
Interest Expense / yield		17,093	2.76	%		17,090	2.76	%		3	-0.00	%		18,536	3.06	%		18,554	3.07	%		(18	)	-0.01	%
Net Interest Spread		23,909	2.43	%		23,308	2.35	%		601	0.08	%		20,118	1.94	%		19,425	1.85	%		693		0.09	%
Net Interest Margin			3.03	%			2.95	%			0.08	%			2.60	%			2.52	%				0.08	%

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

April 29, 2025

MIL-OSI: Brown & Brown, Inc. announces first quarter 2025 results, including total revenues of $1.4 billion, an increase of 11.6%; Organic Revenue growth of 6.5%; diluted net income per share of $1.15; Diluted Net Income Per Share – Adjusted of $1.29; and a quarterly dividend of $0.15 per share

Source: GlobeNewswire (MIL-OSI)

DAYTONA BEACH, Fla., April 28, 2025 (GLOBE NEWSWIRE) — Brown & Brown, Inc. (NYSE:BRO) (the “Company”) announced its unaudited financial results for the first quarter 2025.

Revenues for the first quarter of 2025 under U.S. generally accepted accounting principles (“GAAP”) were $1.4 billion, increasing $146 million, or 11.6%, compared to the first quarter of the prior year, with commissions and fees increasing by 12.0% and Organic Revenue increasing by 6.5%. Income before income taxes was $427 million, increasing 17.3% from the first quarter of the prior year with Income Before Income Taxes Margin increasing to 30.4% from 28.9%. EBITDAC – Adjusted was $535 million, increasing 14.8% from the first quarter of the prior year with EBITDAC Margin – Adjusted increasing to 38.1% from 37.0%. Net income attributable to the Company was $331 million, increasing $38 million, or 13.0%, and diluted net income per share increased to $1.15, or 12.7%, with Diluted Net Income Per Share – Adjusted increasing to $1.29, or 13.2%, each as compared to the first quarter of the prior year.

J. Powell Brown, president and chief executive officer of the Company, noted, “We continue to execute our plan and are pleased with our performance for the quarter.”

In addition, the Company today announced that the Board of Directors has declared a regular quarterly cash dividend of $0.15 per share. The dividend is payable on May 21, 2025, to shareholders of record on May 12, 2025.

Reconciliation of Commissions and Fees
to Organic Revenue
(in millions, unaudited)

	Three Months Ended March 31,
	2025			2024
Commissions and fees	$	1,385		$	1,237
Profit-sharing contingent commissions		(43	)		(46	)
Core commissions and fees	$	1,342		$	1,191
Acquisitions		(79	)
Dispositions					(3	)
Foreign Currency Translation					(2	)
Organic Revenue	$	1,263		$	1,186
Organic Revenue growth	$	77
Organic Revenue growth %		6.5	%

See information regarding non-GAAP measures presented later in this press release.

Reconciliation of Diluted Net Income Per Share to
Diluted Net Income Per Share – Adjusted
(unaudited)

	Three Months Ended March 31,						Change
	2025			2024			$			%
Diluted net income per share	$	1.15		$	1.02		$	0.13			12.7	%
Change in estimated acquisition earn-out payables		(0.01	)		(0.01	)		—
(Gain)/loss on disposal		—			0.01			(0.01	)
Amortization		0.15			0.12			0.03
Diluted Net Income Per Share – Adjusted	$	1.29		$	1.14		$	0.15			13.2	%

See information regarding non-GAAP measures presented later in this press release.

Reconciliation of Income Before Income Taxes to EBITDAC and
EBITDAC – Adjusted and Income Before Income Taxes Margin⁽¹⁾to
EBITDAC Margin and EBITDAC Margin – Adjusted
(in millions, unaudited)

	Three Months Ended March 31,
	2025			2024
Total revenues	$	1,404		$	1,258
Income before income taxes	$	427		$	364
Income Before Income Taxes Margin⁽¹⁾		30.4	%		28.9	%
Amortization		53			43
Depreciation		11			11
Interest		46			48
Change in estimated acquisition earn-out payables		(4	)		(2	)
EBITDAC	$	533		$	464
EBITDAC Margin		38.0	%		36.9	%
(Gain)/loss on disposal		2			2
EBITDAC – Adjusted	$	535		$	466
EBITDAC Margin – Adjusted		38.1	%		37.0	%

(1) “Income Before Income Taxes Margin” is defined as income before income taxes divided by total revenues.

See information regarding non-GAAP measures presented later in this press release.

Brown & Brown, Inc.
Consolidated Statements of Income
(in millions, except per share data; unaudited)

	Three Months Ended March 31,
	2025			2024
REVENUES
Commissions and fees	$	1,385		$	1,237
Investment and other income		19			21
Total revenues		1,404			1,258
EXPENSES
Employee compensation and benefits		683			631
Other operating expenses		186			161
Loss on disposal		2			2
Amortization		53			43
Depreciation		11			11
Interest		46			48
Change in estimated acquisition earn-out payables		(4	)		(2	)
Total expenses		977			894
Income before income taxes		427			364
Income taxes		93			71
Net income before non-controlling interests		334			293
Less: Net income attributable to non-controlling interests		3			—
Net income attributable to the Company	$	331		$	293
Net income per share:
Basic	$	1.16		$	1.03
Diluted	$	1.15		$	1.02
Weighted average number of shares outstanding:
Basic		283			281
Diluted		285			283

Brown & Brown, Inc.
Consolidated Balance Sheets
(in millions, except per share data, unaudited)

	March 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	669		$	675
Fiduciary cash		1,771			1,827
Commission, fees, and other receivables		1,083			895
Fiduciary receivables		1,136			1,116
Reinsurance recoverable		447			1,527
Prepaid reinsurance premiums		480			520
Other current assets		331			364
Total current assets		5,917			6,924
Fixed assets, net		327			319
Operating lease assets		197			200
Goodwill		8,111			7,970
Amortizable intangible assets, net		1,821			1,814
Other assets		387			385
Total assets	$	16,760		$	17,612
LIABILITIES AND EQUITY
Current liabilities:
Fiduciary liabilities	$	2,907		$	2,943
Losses and loss adjustment reserve		462			1,543
Unearned premiums		542			577
Accounts payable		481			373
Accrued expenses and other liabilities		463			653
Current portion of long-term debt		75			225
Total current liabilities		4,930			6,314
Long-term debt less unamortized discount and debt issuance costs		3,731			3,599
Operating lease liabilities		186			189
Deferred income taxes, net		701			711
Other liabilities		371			362
Equity:
Common stock, par value $0.10 per share; authorized 560 shares; issued 306 shares and outstanding 287 shares at 2025, issued 306 shares and outstanding 286 shares at 2024, respectively		31			31
Additional paid-in capital		1,107			1,118
Treasury stock, at cost 20 shares at 2025 and 2024		(748	)		(748	)
Accumulated other comprehensive loss		15			(109	)
Non-controlling interests		20			17
Retained earnings		6,416			6,128
Total equity		6,841			6,437
Total liabilities and equity	$	16,760		$	17,612

Brown & Brown, Inc.
Consolidated Statements of Cash Flows
(in millions, unaudited)

	Three Months Ended March 31,
	2025			2024
Cash flows from operating activities:
Net income before non-controlling interests	$	334		$	293
Adjustments to reconcile net income before non-controlling interests to net cash provided by operating activities:
Amortization		53			43
Depreciation		11			11
Non-cash stock-based compensation		29			29
Change in estimated acquisition earn-out payables		(4	)		(2	)
Deferred income taxes		(10	)		(1	)
Net loss on sales/disposals of investments, businesses, fixed assets and customer accounts		2			2
Payments on acquisition earn-outs in excess of original estimated payables		—			(13	)
Other		2			—
Changes in operating assets and liabilities, net of effect from acquisitions and divestitures:
Commissions, fees and other receivables (increase)/decrease		(180	)		(142	)
Reinsurance recoverable (increase)/decrease		1,080			60
Prepaid reinsurance premiums (increase)/decrease		40			33
Other assets (increase)/decrease		35			—
Losses and loss adjustment reserve increase/(decrease)		(1,081	)		(59	)
Unearned premiums increase/(decrease)		(35	)		25
Accounts payable increase/(decrease)		126			(86	)
Accrued expenses and other liabilities increase/(decrease)		(195	)		(186	)
Other liabilities increase/(decrease)		6			6
Net cash provided by operating activities		213			13
Cash flows from investing activities:
Additions to fixed assets		(17	)		(13	)
Payments for businesses acquired, net of cash acquired		(67	)		(76	)
Proceeds from sales of businesses, fixed assets and customer accounts		9			—
Other investing activities		(4	)		1
Net cash used in investing activities		(79	)		(88	)
Cash flows from financing activities:
Fiduciary receivables and liabilities, net		(90	)		(26	)
Payments on acquisition earn-outs		(26	)		(39	)
Payments on long-term debt		(169	)		(13	)
Borrowings on revolving credit facility		150			150
Payments on revolving credit facility		—			(50	)
Repurchase shares to fund tax withholdings for non-cash stock-based compensation		(40	)		(54	)
Cash dividends paid		(43	)		(38	)
Other financing activities		—			3
Net cash used in financing activities		(218	)		(67	)
Effect of foreign exchange rate changes in cash and cash equivalents inclusive of fiduciary cash		22			(11	)
Net decrease in cash and cash equivalents inclusive of fiduciary cash		(62	)		(153	)
Cash and cash equivalents inclusive of fiduciary cash at beginning of period		2,502			2,303
Cash and cash equivalents inclusive of fiduciary cash at end of period	$	2,440		$	2,150

Conference call, webcast and slide presentation

A conference call to discuss the results of the first quarter of 2025 will be held on Tuesday, April 29, 2025, at 8:00 AM (EDT). The Company may refer to a slide presentation during its conference call. You can access the webcast and the slides from the “Investor Relations” section of the Company’s website at bbrown.com.

About Brown & Brown

Brown & Brown, Inc. (NYSE: BRO) is a leading insurance brokerage firm providing enhanced customer-centric risk management solutions since 1939. With a global presence spanning 500+ locations and a team of more than 17,000 professionals, we are dedicated to delivering scalable, innovative strategies for our customers at every step of their growth journey. Learn more at bbrown.com.

Forward-looking statements

This press release may contain certain statements relating to future results which 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, which are intended to be covered by the safe harbors created by those laws. You can identify these statements by forward-looking words such as “may,” “will,” “should,” “expect,” “anticipate,” “believe,” “intend,” “estimate,” “plan” and “continue” or similar words. We have based these statements on our current expectations about potential future events. Although we believe the expectations expressed in the forward-looking statements included in this press release are based upon reasonable assumptions within the bounds of our knowledge of our business, a number of factors could cause actual results to differ materially from those expressed in any forward-looking statements, whether oral or written, made by us or on our behalf. Many of these factors have previously been identified in filings or statements made by us or on our behalf. Important factors which could cause our actual results to differ, possibly materially from the forward-looking statements in this press release include but are not limited to the following items: the Company’s determination as it finalizes its financial results for the first quarter of 2025 that its financial results differ from the current preliminary unaudited numbers set forth herein; the inability to hire, retain and develop qualified employees, as well as the loss of any of our executive officers or other key employees; a cybersecurity attack or any other interruption in information technology and/or data security that may impact our operations or the operations of third parties that support us; acquisition-related risks that could negatively affect the success of our growth strategy, including the possibility that we may not be able to successfully identify suitable acquisition candidates, complete acquisitions, successfully integrate acquired businesses into our operations and expand into new markets; risks related to our international operations, which may result in additional risks or require more management time and expense than our domestic operations to achieve or maintain profitability; the requirement for additional resources and time to adequately respond to dynamics resulting from rapid technological change; the loss of or significant change to any of our insurance company or intermediary relationships, which could result in loss of capacity to write business, additional expense, loss of market share or material decrease in our commissions; the effect of natural disasters on our profit-sharing contingent commissions, insurer capacity or claims expenses within our captive insurance facilities; adverse economic conditions, political conditions, outbreaks of war, disasters, or regulatory changes in states or countries where we have a concentration of our business; the inability to maintain our culture or a significant change in management, management philosophy or our business strategy; fluctuations in our commission revenue as a result of factors outside of our control; the effects of significant or sustained inflation or higher interest rates; claims expense resulting from the limited underwriting risk associated with our participation in capitalized captive insurance facilities; risks associated with our automobile and recreational vehicle dealer services (“F&I”) businesses; changes in, or the termination of, certain programs administered by the U.S. federal government from which we derive revenues; the limitations of our system of disclosure and internal controls and procedures in preventing errors or fraud, or in informing management of all material information in a timely manner; our reliance on vendors and other third parties to perform key functions of our business operations and provide services to our customers; the significant control certain shareholders have; changes in data privacy and protection laws and regulations or any failure to comply with such laws and regulations; improper disclosure of confidential information; our ability to comply with non-U.S. laws, regulations and policies; the potential adverse effect of certain actual or potential claims, regulatory actions or proceedings on our businesses, results of operations, financial condition or liquidity; uncertainty in our business practices and compensation arrangements with insurance carriers due to potential changes in regulations; regulatory changes that could reduce our profitability or growth by increasing compliance costs, technology compliance, restricting the products or services we may sell, the markets we may enter, the methods by which we may sell our products and services, or the prices we may charge for our services and the form of compensation we may accept from our customers, carriers and third-parties; increasing scrutiny and changing laws and expectations from regulators, investors and customers with respect to our environmental, social and governance practices and disclosure; a decrease in demand for liability insurance as a result of tort reform legislation; our failure to comply with any covenants contained in our debt agreements; the possibility that covenants in our debt agreements could prevent us from engaging in certain potentially beneficial activities; fluctuations in foreign currency exchange rates; a downgrade to our corporate credit rating, the credit ratings of our outstanding debt or other market speculation; changes in the U.S.-based credit markets that might adversely affect our business, results of operations and financial condition; changes in current U.S. or global economic conditions, including an extended slowdown in the markets in which we operate; disintermediation within the insurance industry, including increased competition from insurance companies, technology companies and the financial services industry, as well as the shift away from traditional insurance markets; conditions that result in reduced insurer capacity; quarterly and annual variations in our commissions that result from the timing of policy renewals and the net effect of new and lost business production; intangible asset risk, including the possibility that our goodwill may become impaired in the future; changes in our accounting estimates and assumptions; future pandemics, epidemics or outbreaks of infectious diseases, and the resulting governmental and societal responses; other risks and uncertainties as may be detailed from time to time in our public announcements and Securities and Exchange Commission (“SEC”) filings; and other factors that the Company may not have currently identified or quantified. Assumptions as to any of the foregoing, and all statements, are not based upon historical fact, but rather reflect our current expectations concerning future results and events. Forward-looking statements that we make or that are made by others on our behalf are based upon a knowledge of our business and the environment in which we operate, but because of the factors listed above, among others, actual results may differ from those in the forward-looking statements. Consequently, these cautionary statements qualify all of the forward-looking statements we make herein. We cannot assure you that the results or developments anticipated by us will be realized, or even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business or our operations in the way we expect. We caution readers not to place undue reliance on these forward-looking statements. All forward-looking statements made herein are made only as of the date of this press release, and the Company does not undertake any obligation to publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or of which the Company hereafter becomes aware.

Non-GAAP supplemental financial information
This press release contains references to “non-GAAP financial measures” as defined in SEC Regulation G, consisting of Organic Revenue, EBITDAC, EBITDAC Margin, EBITDAC – Adjusted, EBITDAC Margin – Adjusted and Diluted Net Income Per Share – Adjusted. We present these measures because we believe such information is of interest to the investment community and because we believe it provides additional meaningful methods to evaluate the Company’s operating performance from period to period on a basis that may not be otherwise apparent on a GAAP basis due to the impact of certain items that have a high degree of variability, that we believe are not indicative of ongoing performance and that are not easily comparable from period to period. This non-GAAP financial information should be considered in addition to, not in lieu of, the Company’s consolidated income statements and balance sheets as of the relevant date. Consistent with Regulation G, a description of such information is provided below and a reconciliation of such items to GAAP information can be found within this press release as well as in our periodic filings with the SEC.

We view Organic Revenue and Organic Revenue growth as important indicators when assessing and evaluating our performance on a consolidated basis and for each of our three segments, because it allows us to determine a comparable, but non-GAAP, measurement of revenue growth that is associated with the revenue sources that were a part of our business in both the current and prior year and that are expected to continue in the future. In addition, we believe Diluted Net Income Per Share – Adjusted provides a meaningful representation of our operating performance and improves the comparability of our results between periods by excluding the impact of the change in estimated acquisition earn-out payables, the impact of amortization of intangible assets and certain other non-recurring or infrequently occurring items. We also view EBITDAC, EBITDAC – Adjusted, EBITDAC Margin and EBITDAC Margin – Adjusted as important indicators when assessing and evaluating our performance, as they present more comparable measurements of our operating margins in a meaningful and consistent manner. As disclosed in our most recent proxy statement, we use Organic Revenue growth, Diluted Net Income Per Share – Adjusted and EBITDAC Margin – Adjusted as key performance metrics for our short-term and long-term incentive compensation plans for executive officers and other key employees.

Non-GAAP Revenue Measures

Organic Revenue is our core commissions and fees less: (i) the core commissions and fees earned for the first 12 months by newly acquired operations; (ii) divested business (core commissions and fees generated from offices, books of business or niches sold or terminated during the comparable period); and (iii) Foreign Currency Translation (as defined below). The term “core commissions and fees” excludes profit-sharing contingent commissions and therefore represents the revenues earned directly from specific insurance policies sold and specific fee-based services rendered. Organic Revenue can be expressed as a dollar amount or a percentage rate when describing Organic Revenue growth.

Non-GAAP Earnings Measures

EBITDAC is defined as income before interest, income taxes, depreciation, amortization and the change in estimated acquisition earn-out payables.
EBITDAC Margin is defined as EBITDAC divided by total revenues.
EBITDAC – Adjusted is defined as EBITDAC, excluding (gain)/loss on disposal (as defined below).
EBITDAC Margin – Adjusted is defined as EBITDAC – Adjusted divided by total revenues.
Diluted Net Income Per Share – Adjusted is defined as diluted net income per share, excluding the after-tax impact of (i) the change in estimated acquisition earn-out payables, (ii) (gain)/loss on disposal, (as defined below) and (iii) amortization.

Definitions Related to Certain Components of Non-GAAP Measures

“Foreign Currency Translation” means the period-over-period impact of foreign currency translation, which is calculated by applying current-year foreign exchange rates to the various functional currencies in our business to our reporting currency of US dollars for the same period in the prior year.
“(Gain)/loss on disposal,” a caption on our consolidated statements of income which reflects net proceeds received as compared to net book value related to sales of books of business and other divestiture transactions, such as the disposal of a business through sale or closure.

Our industry peers may provide similar supplemental non-GAAP information with respect to one or more of these measures, although they may not use the same or comparable terminology and may not make identical adjustments and, therefore comparability may be limited. This supplemental non-GAAP financial information should be considered in addition to, and not in lieu of, the Company’s condensed consolidated financial statements.

For more information:

R. Andrew Watts
Chief Financial Officer
(386) 239-5770

The MIL Network –

April 29, 2025

MIL-OSI: NXP Semiconductors Reports First Quarter 2025 Results, Announces Management Transition

Source: GlobeNewswire (MIL-OSI)

EINDHOVEN, The Netherlands, April 28, 2025 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the first quarter, which ended March 30, 2025. “NXP delivered quarterly revenue of $2.84 billion, in-line with the midpoint of guidance. NXP’s first-quarter results and guidance for the second quarter underpin a cautious optimism that NXP continues to effectively navigate through a challenging set of market conditions. We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects. Considering these external factors, we are redoubling our efforts to manage what is in our direct control, enabling NXP to drive solid profitability and earnings,” said Kurt Sievers, NXP President and Chief Executive Officer.

The company announced that Mr. Sievers has informed the Board of Directors of his intention to retire from NXP at the end of 2025. “Kurt has been a dynamic, visionary, and highly effective CEO of NXP since May 2020,” said Julie Southern, NXP’s Chair of the Board of Directors. “He has been instrumental in leading the definition and implementation of NXP’s strategy to be the leader in intelligent systems at the edge within the Automotive and Industrial & IoT end markets. After a successful 30-year career with NXP, we are saddened to see Kurt retire. We and the entire NXP community thank him for his leadership and wish him the absolute best in his retirement.”

Following a comprehensive and thorough succession planning process, NXP’s Board of Directors announced that it has unanimously approved Mr. Rafael Sotomayor to succeed Mr. Sievers as President, effective April 28, 2025. Messrs. Sievers and Sotomayor will work closely to orchestrate a smooth leadership transition until October 28, 2025, when Mr. Sotomayor will assume the role of President and Chief Executive Officer. “Rafael has been an integral part of creating and shaping NXP’s strategy and enabling the company’s success. We are confident he is ideally suited to assume the role of President and CEO at NXP, and to execute the company’s vision for leadership in the intelligent systems at the edge within the Automotive and Industrial & IoT end markets,” said Ms. Southern.

Mr. Sievers’ departure is a purely personal decision and is not related to any disagreement with the Board of Directors, or any issues relating to the strategic or financial performance of the company.

Key Highlights for the First Quarter 2025:

Revenue was $2.84 billion, down 9 percent year-on-year;
GAAP gross margin was 55.0 percent, GAAP operating margin was 25.5 percent and GAAP diluted Net Income per Share was $1.92;
Non-GAAP gross margin was 56.1 percent, non-GAAP operating margin was 31.9 percent, and non-GAAP diluted Net Income per Share was $2.64;
Cash flow from operations was $565 million, with net capex investments of $138 million, resulting in non-GAAP free cash flow of $427 million;
Capital return during the quarter was $561 million, representing 131 percent of first quarter non-GAAP free cash flow. Share buybacks were $303 million and dividends paid during the quarter were $258 million. After the end of the first quarter, between March 31, 2025, and April 25, 2025, NXP executed via a 10b5-1 program additional share repurchases totaling $90 million;
On January 7, 2025, NXP announced the MCX L14x and MCX L25x, the first families in the ultra-low-power L Series of the MCX microcontroller portfolio. The MCX L series features a dual-core architecture with an independent ultra-low-power sense domain to enable challenging battery-limited applications, such as sensors for industrial monitoring, building management, and flow metering;
On January 8, 2025, Honeywell and NXP announced an expansion of its partnership that will accelerate aviation product development and chart the path for autonomous flight. The Honeywell Anthem cockpit is powered by NXP’s i.MX 8 applications processors to help improve operational efficiency, safety and unlock value for pilots and operators. This builds on the companies’ existing relationship, which is focused on helping optimize how building management systems sense and securely control energy consumption;
On January 15, 2025, NXP announced it has secured a €1 billion loan from the European Investment Bank (EIB) to advance the company’s RDI investments across its broad portfolio of semiconductor solutions. The €1 billion loan facility carries a weighted average interest rate of 4.54 percent when drawn in dollar denominated tranches, under the current market conditions and has a duration of six years;
On February 10, 2025, NXP announced the agreement to acquire Kinara Inc., an industry leader in high performance, energy-efficient and programmable discrete neural processing units (NPUs) to enable intelligence at the edge solutions. The all-cash transaction was valued at $307 million and is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory clearances;
On March 11, 2025, NXP announced the new S32K5 family of automotive microcontrollers (MCU), the automotive industry’s first 16nm FinFET MCU with embedded magnetic RAM (MRAM). The S32K5 MCU family will extend the NXP CoreRide platform with pre-integrated zonal and electrification system solutions for scalable software-defined vehicle (SDV) architectures.

Summary of Reported First Quarter 2025 ($ millions, unaudited) ⁽¹⁾

	Q1 2025			Q4 2024			Q1 2024			Q – Q		Y – Y
Total Revenue	$	2,835		$	3,111		$	3,126		-9	%	-9	%
GAAP Gross Profit	$	1,560		$	1,678		$	1,783		-7	%	-13	%
Gross Profit Adjustments ⁽ⁱ⁾	$	(31	)	$	(111	)	$	(35	)
Non-GAAP Gross Profit	$	1,591		$	1,789		$	1,818		-11	%	-12	%
GAAP Gross Margin		55.0	%		53.9	%		57.0	%
Non-GAAP Gross Margin		56.1	%		57.5	%		58.2	%
GAAP Operating Income (Loss)	$	723		$	675		$	856		7	%	-16	%
Operating Income Adjustments ⁽ⁱ⁾	$	(181	)	$	(390	)	$	(224	)
Non-GAAP Operating Income	$	904		$	1,065		$	1,080		-15	%	-16	%
GAAP Operating Margin		25.5	%		21.7	%		27.4	%
Non-GAAP Operating Margin		31.9	%		34.2	%		34.5	%
GAAP Net Income (Loss) attributable to Stockholders	$	490		$	495		$	639		-1	%	-23	%
Net Income Adjustments ⁽ⁱ⁾	$	(183	)	$	(322	)	$	(201	)
Non-GAAP Net Income (Loss) Attributable to Stockholders	$	673		$	817		$	840		-18	%	-20	%
GAAP diluted Net Income (Loss) per Share ⁽ⁱⁱ⁾	$	1.92		$	1.93		$	2.47		—	%	-22	%
Non-GAAP diluted Net Income (Loss) per Share ⁽ⁱⁱ⁾	$	2.64		$	3.18		$	3.24		-17	%	-19	%

Additional information
	Q1 2025		Q4 2024		Q1 2024		Q – Q		Y – Y
Automotive	$	1,674	$	1,790	$	1,804	-6	%	-7	%
Industrial & IoT	$	508	$	516	$	574	-2	%	-11	%
Mobile	$	338	$	396	$	349	-15	%	-3	%
Comm. Infra. & Other	$	315	$	409	$	399	-23	%	-21	%
DIO		169		151		144
DPO		62		65		65
DSO		34		30		26
Cash Conversion Cycle		141		116		105
Channel Inventory (weeks)		9		8		7
Gross Financial Leverage ⁽ⁱⁱⁱ⁾	2.4x		2.1x		1.9x
Net Financial Leverage ^(iv)	1.6x		1.5x		1.3x

Additional Information for the First Quarter 2025:

For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.

Guidance for the Second Quarter 2025: ($ millions, except Per Share data) ⁽¹⁾


	GAAP			Reconciliation	non-GAAP
	Low	Mid	High		Low	Mid	High
Total Revenue	$2,800	$2,900	$3,000		$2,800	$2,900	$3,000
Q-Q	-1%	2%	6%		-1%	2%	6%
Y-Y	-10%	-7%	-4%		-10%	-7%	-4%
Gross Profit	$1,533	$1,604	$1,675	$(29)	$1,562	$1,633	$1,704
Gross Margin	54.8%	55.3%	55.8%		55.8%	56.3%	56.8%
Operating Income (loss)	$680	$741	$802	$(182)	$862	$923	$984
Operating Margin	24.3%	25.6%	26.7%		30.8%	31.8%	32.8%
Financial Income (expense)	$(100)	$(100)	$(100)	$(12)	$(88)	$(88)	$(88)
Tax rate	18.5%-19.5%				17.0%-18.0%
Equity-accounted investees	$(8)	$(8)	$(8)	$(6)	$(2)	$(2)	$(2)
Non-controlling interests	$(9)	$(9)	$(9)		$(9)	$(9)	$(9)
Shares – diluted	255.0	255.0	255.0		255.0	255.0	255.0
Earnings Per Share – diluted	$1.78	$1.97	$2.16		$2.46	$2.66	$2.86

Note (1) Additional Information:

GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(7) million; Share-based Compensation, $(15) million; Other Incidentals, $(7) million;
GAAP Operating Income (loss) is expected to include PPA effects, $(33) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(34) million;
GAAP Financial Income (expense) is expected to include Other financial expense $(12) million;
GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(6) million;
GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.

NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP’s control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding “Non-GAAP Financial Measures” below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding “Forward-looking Statements.” We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

Non-GAAP Financial Measures

In managing NXP’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.

These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP’s operations.

In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share – Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.

The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).

Conference Call and Webcast Information

The company will host a conference call with the financial community on Tuesday, April 29, 2025 at 8:00 a.m. U.S. Eastern Daylight Time (EDT) to review the first quarter 2025 results in detail.

Interested parties may preregister to obtain a user-specific access code for the call here.

The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.

About NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP’s “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $2.84 billion in 2024. Find out more at www.nxp.com.

Forward-looking Statements

This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP’s established supply chains; the impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; increasing and evolving cybersecurity threats and privacy risks, including theft of sensitive or confidential data; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP’s debt service and research and development and capital investment requirements; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP’s relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; the ability to maintain good relationships with NXP’s suppliers; and a change in tax laws could have an effect on our estimated effective tax rate. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

For further information, please contact:

Investors: Jeff Palmer jeff.palmer@nxp.com +1 408 205 0687	Media: Paige Iven paige.iven@nxp.com +1 817 975 0602

NXP-CORP

NXP Semiconductors
Table 1: Condensed consolidated statement of operations (unaudited)

($ in millions except share data)	Three months ended
	March 30, 2025			December 31, 2024			March 31, 2024

Revenue	$	2,835		$	3,111		$	3,126
Cost of revenue		(1,275	)		(1,433	)		(1,343	)
Gross profit		1,560			1,678			1,783
Research and development		(547	)		(612	)		(564	)
Selling, general and administrative		(281	)		(323	)		(306	)
Amortization of acquisition-related intangible assets		(27	)		(28	)		(51	)
Total operating expenses		(855	)		(963	)		(921	)
Other income (expense)		18			(40	)		(6	)
Operating income (loss)		723			675			856
Financial income (expense):
Other financial income (expense)		(92	)		(91	)		(70	)
Income (loss) before income taxes		631			584			786
Benefit (provision) for income taxes		(130	)		(77	)		(141	)
Results relating to equity-accounted investees		(4	)		(2	)		(1	)
Net income (loss)		497			505			644
Less: Net income (loss) attributable to non-controlling interests		7			10			5
Net income (loss) attributable to stockholders		490			495			639

Earnings per share data:
Net income (loss) per common share attributable to stockholders in $
Basic	$	1.93		$	1.95		$	2.49
Diluted	$	1.92		$	1.93		$	2.47

Weighted average number of shares of common stock outstanding during the period (in thousands):
Basic		253,709			254,349			256,567
Diluted		255,018			256,628			258,954

NXP Semiconductors
Table 2: Condensed consolidated balance sheet (unaudited)

	($ in millions)	As of
		March 30, 2025		December 31, 2024		March 31, 2024
ASSETS
Current assets:
	Cash and cash equivalents	$	3,988	$	3,292	$	2,908
	Short-term deposits		—		—		400
	Accounts receivable, net		1,060		1,032		881
	Inventories, net		2,350		2,356		2,102
	Other current assets		627		625		603
Total current assets			8,025		7,305		6,894

Non-current assets:
	Deferred tax assets		1,284		1,251		1,048
	Other non-current assets		1,942		1,796		1,290
	Property, plant and equipment, net		3,210		3,267		3,304
	Identified intangible assets, net		777		836		839
	Goodwill		9,942		9,930		9,945
Total non-current assets			17,155		17,080		16,426

Total assets			25,180		24,385		23,320

LIABILITIES AND EQUITY
Current liabilities:
	Accounts payable		863		1,017		954
	Restructuring liabilities-current		75		147		68
	Other current liabilities		1,412		1,434		1,906
	Short-term debt		1,499		500		—
Total current liabilities			3,849		3,098		2,928

Non-current liabilities:
	Long-term debt		10,226		10,354		10,178
	Restructuring liabilities		4		10		9
	Other non-current liabilities		1,424		1,392		1,055
Total non-current liabilities			11,654		11,756		11,242

	Non-controlling interests		355		348		321
	Stockholders’ equity		9,322		9,183		8,829
Total equity			9,677		9,531		9,150

Total liabilities and equity			25,180		24,385		23,320

NXP Semiconductors
Table 3: Condensed consolidated statement of cash flows (unaudited)

($ in millions)	Three months ended
	March 30, 2025			December 31, 2024			March 31, 2024
Cash flows from operating activities:
Net income (loss)	$	497		$	505		$	644
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization		209			259			235
Share-based compensation		127			117			115
Amortization of discount (premium) on debt, net		1			1			1
Amortization of debt issuance costs		1			2			2
Net (gain) loss on sale of assets		(22	)		(1	)		(2	)
Results relating to equity-accounted investees		4			2			1
(Gain) loss on equity securities, net		6			6			2
Deferred tax expense (benefit)		(27	)		(145	)		(64	)
Changes in operating assets and liabilities:
(Increase) decrease in receivables and other current assets		(29	)		(25	)		(25	)
(Increase) decrease in inventories		6			(122	)		32
Increase (decrease) in accounts payable and other liabilities		(110	)		16			(102	)
(Increase) decrease in other non-current assets		(106	)		(218	)		6
Exchange differences		4			(1	)		3
Other items		4			(5	)		3
Net cash provided by (used for) operating activities		565			391			851

Cash flows from investing activities:
Purchase of identified intangible assets		(25	)		(36	)		(32	)
Capital expenditures on property, plant and equipment		(139	)		(130	)		(226	)
Insurance recoveries received for equipment damage		—			—			2
Proceeds from the disposals of property, plant and equipment		1			1			2
Advance payment from sale of property, plant and equipment		—			30			—
Proceeds of short-term deposits		—			400			9
Purchase of investments		(53	)		(67	)		(34	)
Proceeds from the sale of investments		—			—			5
Net cash provided by (used for) investing activities		(216	)		198			(274	)

Cash flows from financing activities:
Repurchase of long-term debt		—			—			(1,000	)
Proceeds from the issuance of long-term debt		370			670			—
Cash paid for debt issuance costs		—			(1	)		—
Proceeds from the issuance of commercial paper notes		646			—			—
Repayment of commercial paper notes		(146	)		—			—
Dividends paid to common stockholders		(258	)		(258	)		(261	)
Proceeds from issuance of common stock through stock plans		37			3			37
Purchase of treasury shares and restricted stock unit withholdings		(303	)		(455	)		(303	)
Other, net		(1	)		—			(1	)
Net cash provided by (used for) financing activities		345			(41	)		(1,528	)

Effect of changes in exchange rates on cash positions		2			(4	)		(3	)
Increase (decrease) in cash and cash equivalents		696			544			(954	)
Cash and cash equivalents at beginning of period		3,292			2,748			3,862
Cash and cash equivalents at end of period		3,988			3,292			2,908

Net cash paid during the period for:
Interest		41			92			38
Income taxes, net of refunds		96			280			198
Net gain (loss) on sale of assets:
Cash proceeds from the sale of assets		31			1			2
Book value of these assets		(9	)		—			—
Non-cash investing activities:
Non-cash capital expenditures		108			161			223

NXP Semiconductors
Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)

($ in millions except share data)	Three months ended
	March 30, 2025			December 31, 2024			March 31, 2024
GAAP Gross Profit	$	1,560		$	1,678		$	1,783
PPA Effects		(8	)		(11	)		(12	)
Restructuring		(4	)		(21	)		(3	)
Share-based compensation		(16	)		(15	)		(15	)
Other incidentals		(3	)		(64	)		(5	)
Non-GAAP Gross Profit	$	1,591		$	1,789		$	1,818
GAAP Gross margin		55.0	%		53.9	%		57.0	%
Non-GAAP Gross margin		56.1	%		57.5	%		58.2	%
GAAP Research and development	$	(547	)	$	(612	)	$	(564	)
Restructuring		(7	)		(50	)		(3	)
Share-based compensation		(64	)		(60	)		(58	)
Other incidentals		(1	)		(5	)		(1	)
Non-GAAP Research and development	$	(475	)	$	(497	)	$	(502	)
GAAP Selling, general and administrative	$	(281	)	$	(323	)	$	(306	)
Restructuring		(3	)		(41	)		(1	)
Share-based compensation		(47	)		(42	)		(42	)
Other incidentals		(20	)		(12	)		(29	)
Non-GAAP Selling, general and administrative	$	(211	)	$	(228	)	$	(234	)
GAAP Operating income (loss)	$	723		$	675		$	856
PPA effects		(40	)		(39	)		(63	)
Restructuring		(14	)		(112	)		(7	)
Share-based compensation		(127	)		(117	)		(115	)
Other incidentals		—			(122	)		(39	)
Non-GAAP Operating income (loss)	$	904		$	1,065		$	1,080
GAAP Operating margin		25.5	%		21.7	%		27.4	%
Non-GAAP Operating margin		31.9	%		34.2	%		34.5	%
GAAP Income tax benefit (provision)	$	(130	)	$	(77	)	$	(141	)
Income tax effect		13			87			30
Non-GAAP Income tax benefit (provision)	$	(143	)	$	(164	)	$	(171	)
GAAP Net income (loss) attributable to stockholders	$	490		$	495		$	639
PPA Effects		(40	)		(39	)		(63	)
Restructuring		(14	)		(112	)		(7	)
Share-based compensation		(127	)		(117	)		(115	)
Other incidentals		—			(122	)		(39	)
Other adjustments:
Adjustments to financial income (expense)		(12	)		(17	)		(6	)
Income tax effect		13			87			30
Results relating to equity-accounted investees, excluding Foundry investees¹		(3	)		(2	)		(1	)
Non-GAAP Net income (loss) attributable to stockholders	$	673		$	817		$	840


Additional Information:
1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.

GAAP net income (loss) per common share attributable to stockholders – diluted	$	1.92		$	1.93		$	2.47
PPA Effects		(0.16	)		(0.15	)		(0.24	)
Restructuring		(0.05	)		(0.44	)		(0.03	)
Share-based compensation		(0.50	)		(0.46	)		(0.44	)
Other incidentals		—			(0.47	)		(0.15	)
Other adjustments:
Adjustments to financial income (expense)		(0.05	)		(0.07	)		(0.02	)
Income tax effect		0.05			0.34			0.11
Results relating to equity-accounted investees, excluding Foundry investees¹		(0.01	)		—			—
Non-GAAP net income (loss) per common share attributable to stockholders – diluted	$	2.64		$	3.18		$	3.24


Additional Information:
1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.

NXP Semiconductors
Table 5: Financial Reconciliation of GAAP to non-GAAP Financial income (expense) (unaudited)

	($ in millions)	Three months ended
		March 30, 2025			December 31, 2024			March 31, 2024
GAAP Financial income (expense)		$	(92	)	$	(91	)	$	(70	)
	Foreign exchange loss		(3	)		3			(1	)
	Other financial expense		(9	)		(20	)		(5	)
Non-GAAP Financial income (expense)		$	(80	)	$	(74	)	$	(64	)

NXP Semiconductors
Table 6: Financial Reconciliation of GAAP to non-GAAP Other income (expense) (unaudited)

	($ in millions)	Three months ended
		March 30, 2025			December 31, 2024			March 31, 2024
GAAP Other income (expense)		$	18		$	(40	)	$	(6	)
	PPA effects		(5	)		—			—
	Other incidentals		24			(41	)		(4	)
Non-GAAP Other income (expense)		$	(1	)	$	1		$	(2	)

NXP Semiconductors
Table 7: Financial Reconciliation of GAAP to non-GAAP Results relating to equity-accounted investees (unaudited)

	($ in millions)	Three months ended
		March 30, 2025			December 31, 2024			March 31, 2024
GAAP Results relating to equity-accounted investees		$	(4	)	$	(2	)	$	(1	)
	Results of equity-accounted investees, excluding Foundry investees¹		(3	)		(2	)		(1	)
Non-GAAP Results relating to equity-accounted investees		$	(1	)	$	—		$	—

Additional Information:
We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees.

NXP Semiconductors
Table 8: Adjusted EBITDA and Free Cash Flow (unaudited)

($ in millions)	Three months ended
	March 30, 2025			December 31, 2024			March 31, 2024
GAAP Net income (loss)	$	497		$	505		$	644
Reconciling items to EBITDA (Non-GAAP)
Financial (income) expense		92			91			70
(Benefit) provision for income taxes		130			77			141
Depreciation and impairment		143			190			145
Amortization		66			69			90
EBITDA (Non-GAAP)	$	928		$	932		$	1,090
Reconciling items to adjusted EBITDA (Non-GAAP)
Results of equity-accounted investees, excluding Foundry investees¹		3			2			1
Purchase accounting effect on asset sale		5			—			—
Restructuring		14			112			7
Share-based compensation		127			117			115
Other incidental items²		(4	)		77			39
Adjusted EBITDA (Non-GAAP)	$	1,073		$	1,240		$	1,252
Trailing twelve month adjusted EBITDA (Non-GAAP)	$	4,885		$	5,064		$	5,395

Additional Information:
1. Refer to Table 7 above for further information regarding the results relating to equity-accounted investees.
2. Excluding from total other incidental items, charges included in depreciation, amortization or impairment reconciling items:
– other incidental items		4			45			—



($ in millions)	Three months ended
	March 30, 2025			December 31, 2024			March 31, 2024
Net cash provided by (used for) operating activities	$	565		$	391		$	851
Net capital expenditures on property, plant and equipment		(138	)		(99	)		(224	)
Non-GAAP free cash flow	$	427		$	292		$	627
Trailing twelve month non-GAAP free cash flow	$	1,889		$	2,089		$	2,933
Trailing twelve month non-GAAP free cash flow as percent of Revenue		15	%		17	%		22	%

The MIL Network –

April 29, 2025

MIL-OSI: Powell Max Limited Announces 2024 Audited Financial Results

Source: GlobeNewswire (MIL-OSI)

HONG KONG, April 28, 2025 (GLOBE NEWSWIRE) — Powell Max Limited (Nasdaq: PMAX) (the “Company” or “Powell Max”), a financial communications services provider headquartered in Hong Kong, today announced the audited financial results of the Company and its subsidiary for the financial year ended December 31, 2024.

Overview:

Revenue was HK$36.5 million (US$4.7 million) for the year ended December 31, 2024, representing a decrease of 25.7% for the year ended December 31, 2023.
Net loss was HK$18.1 million (US$2.3 million) for the year ended December 31, 2024, as compared with the profit for the year of HK$7.1 million for the year ended December 31, 2023.

Financial Results for the year ended December 31, 2024

Revenue. Revenue decreased by 25.7% from HK$49.1 million for the year ended December 31, 2023 to HK$36.5 million (US$4.7 million) for the year ended December 31, 2024, which was mainly due to the decrease in both the revenue from corporate financial communications services and IPO financial printing services.

General and administrative expenses. General and administrative expenses increased by 1.28 times from HK$10.9 million for the year ended December 31, 2023 to HK$24.9 million (US$3.2 million) for the year ended December 31, 2024, which was mainly due to the incurrence of issuance expenses (which consisted of professional fee and related expenses relating to the equity line of credit under standby equity purchase agreement entered into with YA II PN, Ltd. on November 21, 2024), an increase in professional services fees and an increase in employee benefits expense.

Selling and distribution expenses. Selling and distribution expenses increased by 55.6% from HK$4.5 million for the year ended December 31, 2023 to HK$7.0 million (US$0.9 million) for the year ended December 31, 2024, which was mainly due to an increase in the number of staff in our sales team and an increase in other expenses on business development and marketing. In light of the reduction of capital market activities in Hong Kong, we have allocated extra resources on sales and marketing with the view to maintain our market presence.

Net loss. Net loss for the year ended December 31, 2024 was HK$18.1 million (US$2.3 million), as compared with the profit for the year of HK$7.1 million for the year ended December 31, 2023.

Basic and diluted loss per share. Basic and diluted loss per share was HK$1.37 (US$0.18) per ordinary share for the year ended December 31, 2024, as compared to a basic and diluted earning per share of HK$0.56 per ordinary share for the year ended December 31, 2023.

About Powell Max Limited

Powell Max Limited is a financial communications services provider headquartered in Hong Kong. The Company engages in the provision of financial communications services that support capital market compliance and transaction needs for corporate clients and their advisors in Hong Kong. Its financial communications services cover a full range of financial printing, corporate reporting, communications and language support services from inception to completion, including typesetting, proofreading, translation, design, printing, electronic reporting, newspaper placement and distribution. The Company’s clients consist of domestic and international companies listed in Hong Kong, together with companies who are seeking to list in Hong Kong, as well as their advisors.

Exchange Rate Information

The Company is a holding company with operations conducted in Hong Kong through JAN Financial Press Limited and Miracle Media Production Limited (which was acquired after the reporting period), its direct wholly-owned operating subsidiaries. The operating subsidiaries’ reporting currency is Hong Kong dollars. Unless otherwise noted, all translations from Hong Kong dollars to United States Dollars in this press release were calculated the noon middle rate of US$1 — HK$7.7677, as published in the H.10 statistical release of the Board of Governors of the Federal Reserve System on December 31, 2024, respectively. No representation is made that the HK$ amount represents or could have been, or could be, converted, realized or settled into US$ at that rate, or at any other rate.

Forward-Looking Statements

This press release contains certain forward-looking statements. Words such as “will,” future,” “expects,” “believes,” and “intends,” or similar expressions, are intended to identify forward-looking statements. Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Rounding Amounts and Percentages

Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.

For investor and media inquiries, please contact:

Company Info:

Powell Max Limited
Investor Relations
ir@janfp.com
(852) 2158 2888

POWELL MAX LIMITED AND ITS SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

	As of December 31
	2023			2024
	HK$			HK$			US$
ASSETS
Non-current assets
Property, plant and equipment		5,819,230			4,253,686			547,612
Total non-current assets		5,819,230			4,253,686			547,612

Current assets
Trade and other receivables		13,510,032			16,096,160			2,072,191
Cash and bank balances		3,660,213			42,222,014			5,435,588
Total current assets		17,170,245			58,318,174			7,507,779

Total assets		22,989,475			62,571,860			8,055,391

LIABILITIES AND EQUITY
Current liabilities
Trade and other payables		27,376,032			12,990,458			1,672,368
Contract liabilities		1,524,761			1,310,435			168,703
Bank borrowings		4,767,829			3,845,863			495,110
Lease liabilities		3,361,230			1,376,122			177,159
Derivative		—			6,756,516			869,822
Convertible promissory notes		—			13,860,647			1,784,395
Total current liabilities		37,029,852			40,140,041			5,167,557

Non-current liabilities
Trade and other payables		150,000			150,000			19,311
Lease liabilities		1,122,591			1,014,182			130,564
Total non-current liabilities		1,272,591			1,164,182			149,875

Total liabilities		38,302,443			41,304,223			5,317,432

Equity attributable to owners of the Company
Share capital		9,750			11,457			1,475
Accumulated losses		(15,680,728	)		(33,754,822	)		(4,345,537	)
Reserves		358,010			55,011,002			7,082,021
Total equity		(15,312,968	)		21,267,637			2,737,959

Total liabilities and equity		22,989,475			62,571,860			8,055,391

POWELL MAX LIMITED AND ITS SUBSIDIARY CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

	Year ended December 31,
	2022			2023			2024
	HK$			HK$			HK$			US$
Revenue		37,772,821			49,121,839			36,461,260			4,693,958
Cost of sales		(22,217,680	)		(25,238,821	)		(22,081,030	)		(2,842,673	)
Gross profit		15,555,141			23,883,018			14,380,230			1,851,285

Other income and gain		1,851,815			54,116			1,952,986			251,425
General and administrative expenses		(10,723,611	)		(10,862,255	)		(24,854,036	)		(3,199,665	)
Selling and distribution expenses		(5,250,421	)		(4,530,134	)		(7,049,538	)		(907,545	)
Allowance of expected credit loss – trade receivables		(841,051	)		(914,788	)		(488,640	)		(62,908	)

Profit/(Loss) from operations		591,873			7,629,957			(16,058,998	)		(2,067,408	)
Finance costs		(690,476	)		(550,714	)		(2,015,096	)		(259,418	)

(Loss)/Profit before income tax		(98,603	)		7,079,243			(18,074,094	)		(2,326,826	)
Income tax expense		—			—			—			—
(Loss)/Profit for the year		(98,603	)		7,079,243			(18,074,094	)		(2,326,826	)

Other comprehensive (loss)/income:
Exchange differences on foreign currency translations		25,138			(47,378	)		48,424			6,234
Total comprehensive (loss)/income for the year		(73,465	)		7,031,865			(18,025,670	)		(2,320,592	)

(Loss)/Earnings per share attributable to owners of the Company
Basic and diluted		(0.01	)		0.56			(1.37	)		(0.18	)

Weighted average number of ordinary shares
Basic and diluted		12,500,000			12,500,000			13,178,314			13,178,314

The MIL Network –

April 29, 2025

MIL-OSI: Transocean Ltd. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

	Three months ended									Three months ended
	March 31,			December 31,			sequential			March 31,			year-over-year
	2025			2024			change			2024			change
(In millions, except per share amounts, percentages and backlog)
Contract drilling revenues	$	906		$	952		$	(46	)	$	763		$	143
Revenue efficiency ⁽¹⁾		95.5	%		93.5	%					92.9	%
Operating and maintenance expense	$	618		$	579		$	(39	)	$	523		$	(95	)
Net income (loss) attributable to controlling interest	$	(79	)	$	7		$	(86	)	$	98		$	(177	)
Basic earnings (loss) per share	$	(0.09	)	$	0.01		$	(0.10	)	$	0.12		$	(0.21	)
Diluted earnings (loss) per share	$	(0.11	)	$	(0.11	)	$	—		$	0.11		$	(0.22	)

Adjusted EBITDA	$	244		$	323		$	(79	)	$	199		$	45
Adjusted EBITDA margin		26.9	%		33.9	%					26.0	%
Adjusted net income (loss)	$	(65	)	$	27		$	(92	)	$	(22	)	$	(43	)
Adjusted diluted loss per share	$	(0.10	)	$	(0.09	)	$	(0.01	)	$	(0.03	)	$	(0.07	)


Backlog as of the April 2025 Fleet Status Report	$	7.9	billion

STEINHAUSEN, Switzerland, April 28, 2025 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $79 million, or loss of $0.11 per diluted share, for the three months ended March 31, 2025.

First quarter results included $14 million, $0.01 per diluted share, for unfavorable discrete tax items, net. After consideration of these discrete items, first quarter 2025 adjusted net loss was $65 million, or loss of $0.10 per diluted share.

Contract drilling revenues for the three months ended March 31, 2025, decreased sequentially by $46 million to $906 million, primarily due to lower revenues generated by one rig that was undergoing contract preparation and mobilization activities during the quarter, lower revenues generated by one rig that was idle in between contracts and two fewer days in the quarter, partially offset by higher revenue efficiency and average daily revenues across the fleet.

Operating and maintenance expense was $618 million, compared with $579 million in the prior quarter. The sequential increase was the result of an unfavorable legal outcome in the first quarter, a favorable legal settlement in the fourth quarter and increased costs related to a rig in shipyard, partially offset by lower in-service maintenance costs across our fleet.

General and administrative expense was $50 million, down from $56 million in the fourth quarter due primarily to decreased legal and professional fees.

Interest expense was $152 million in the first and fourth quarter, excluding the favorable adjustment of $36 million and $61 million, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $8 million, compared to $10 million in the prior quarter.

The Effective Tax Rate⁽²⁾ was (95.8)%, down from 89.0% in the prior quarter. The decrease was primarily due to lower operating income in the current quarter compared to the prior quarter. The Effective Tax Rate excluding discrete items was (62.3)% compared to 56.7% in the previous quarter. In the first quarter, cash paid for taxes was $13 million.

Cash provided by operating activities was $26 million during the first quarter of 2025, representing a decrease of $180 million compared to the prior quarter. The sequential decrease was in large part due to reduced collections from customers and increased payroll-related payments that regularly occur in the first quarter of each year.

First quarter 2025 capital expenditures of $60 million, compared to $29 million in the prior quarter, were related to capital upgrades for certain rigs in our fleet.

“The Transocean team delivered a solid quarter, with an adjusted EBITDA of $244 million on revenues of $906 million,” said Chief Executive Officer, Jeremy Thigpen. “We also improved our balance sheet with the repayment of $210 million in outstanding debt.”

Thigpen concluded, “While uncertain macroeconomic conditions have resulted in near-term market volatility, including commodity prices, Transocean is very well-positioned to navigate this evolving landscape. In addition to continuing to deliver strong operating performance across our highly contracted fleet, we remain engaged in constructive conversations with our customers on opportunities several years in the future.”

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 10 a.m. EDT, 4 p.m. CEST, on Tuesday, April 29, 2025, to discuss the results. To participate, dial +1 785-424-1619 and refer to conference code 119877 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

A replay of the conference call will be available after 1 p.m. EDT, 7 p.m. CEST, on Tuesday, April 29, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7202, passcode 119877. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2024, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

(1)		Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”

(2)		Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited)

	Three months ended
	March 31,
	2025			2024

Contract drilling revenues	$	906		$	763

Costs and expenses
Operating and maintenance		618			523
Depreciation and amortization		176			185
General and administrative		50			52
		844			760

Gain (loss) on disposal of assets, net		2			(6	)
Operating income (loss)		64			(3	)

Other income (expense), net
Interest income		8			15
Interest expense, net of amounts capitalized		(116	)		(117	)
Other, net		4			12
		(104	)		(90	)
Loss before income tax expense (benefit)		(40	)		(93	)
Income tax expense (benefit)		39			(191	)

Net income (loss)		(79	)		98
Net income attributable to noncontrolling interest		—			—
Net income (loss) attributable to controlling interest	$	(79	)	$	98

Earnings (loss) per share
Basic	$	(0.09	)	$	0.12
Diluted	$	(0.11	)	$	0.11

Weighted-average shares outstanding
Basic		883			819
Diluted		958			955


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
Assets
Cash and cash equivalents	$	263		$	560
Accounts receivable, net of allowance of $2 at March 31, 2025 and December 31, 2024		551			564
Materials and supplies, net of allowance of $184 and $178 at March 31, 2025 and December 31, 2024, respectively		453			439
Assets held for sale		344			343
Restricted cash and cash equivalents		428			381
Other current assets		165			165
Total current assets		2,204			2,452

Property and equipment		22,460			22,417
Less accumulated depreciation		(6,746	)		(6,586	)
Property and equipment, net		15,714			15,831

Deferred tax assets, net		50			45
Other assets		1,051			1,043
Total assets	$	19,019		$	19,371

Liabilities and equity
Accounts payable	$	273		$	255
Accrued income taxes		24			31
Debt due within one year		712			686
Other current liabilities		647			691
Total current liabilities		1,656			1,663

Long-term debt		5,936			6,195
Deferred tax liabilities, net		519			499
Other long-term liabilities		697			729
Total long-term liabilities		7,152			7,423

Commitments and contingencies

Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued
and 883,261,456 outstanding at March 31, 2025, and $0.10 par value, 1,057,879,029 authorized,
141,262,093 conditionally authorized, 940,828,901 issued and 875,830,772 outstanding at December 31, 2024		88			87
Additional paid-in capital		14,887			14,880
Accumulated deficit		(4,624	)		(4,545	)
Accumulated other comprehensive loss		(141	)		(138	)
Total controlling interest shareholders’ equity		10,210			10,284
Noncontrolling interest		1			1
Total equity		10,211			10,285
Total liabilities and equity	$	19,019		$	19,371


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Three months ended
	March 31,
	2025			2024
Cash flows from operating activities
Net income (loss)	$	(79	)	$	98
Adjustments to reconcile to net cash provided by (used in) operating activities:
Amortization of contract intangible asset		—			4
Depreciation and amortization		176			185
Share-based compensation expense		8			11
(Gain) loss on disposal of assets, net		(2	)		6
Amortization of debt-related balances, net		13			13
Gain on adjustment to bifurcated compound exchange feature		(36	)		(10	)
Loss on impairment of investment in unconsolidated affiliates		—			1
Deferred income tax expense (benefit)		15			(164	)
Other, net		4			—
Changes in deferred revenues, net		(38	)		77
Changes in deferred costs, net		(12	)		(38	)
Changes in other operating assets and liabilities, net		(23	)		(269	)
Net cash provided by (used in) operating activities		26			(86	)

Cash flows from investing activities
Capital expenditures		(60	)		(83	)
Investment in loan to unconsolidated affiliate		—			(2	)
Proceeds from disposal of assets, net of costs to sell		2			44
Net cash used in investing activities		(58	)		(41	)

Cash flows from financing activities
Repayments of debt		(210	)		(151	)
Other, net		(8	)		(1	)
Net cash used in financing activities		(218	)		(152	)

Net decrease in unrestricted and restricted cash and cash equivalents		(250	)		(279	)
Unrestricted and restricted cash and cash equivalents, beginning of period		941			995
Unrestricted and restricted cash and cash equivalents, end of period	$	691		$	716


TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS


	Three months ended
	March 31,		December 31,		March 31,
Contract Drilling Revenues (in millions)	2025		2024		2024
Ultra-deepwater floaters	$	658	$	675	$	569
Harsh environment floaters		248		277		194
Total contract drilling revenues	$	906	$	952	$	763

	Three months ended
	March 31,		December 31,		March 31,
Average Daily Revenue ⁽¹⁾	2025		2024		2024
Ultra-deepwater floaters	$	443,600	$	428,200	$	422,900
Harsh environment floaters		443,600		452,600		367,900
Total fleet average daily revenue	$	443,600	$	434,700	$	408,200

	Three months ended
	March 31,		December 31,		March 31,
Revenue Efficiency ⁽²⁾	2025		2024		2024
Ultra-deepwater floaters	94.3	%	92.0	%	92.7	%
Harsh environment floaters	99.3	%	97.6	%	93.3	%
Total fleet average revenue efficiency	95.5	%	93.5	%	92.9	%

	Three months ended
	March 31,		December 31,		March 31,
Utilization ⁽³⁾	2025		2024		2024
Ultra-deepwater floaters	61.5	%	64.3	%	51.2	%
Harsh environment floaters	69.5	%	75.0	%	62.0	%
Total fleet average rig utilization	63.4	%	66.8	%	53.7	%


⁽¹⁾ Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence.

⁽²⁾ Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.

⁽³⁾ Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE
(in millions, except per share data)


	YTD
	03/31/25
Adjusted Net Loss
Net loss attributable to controlling interest, as reported	$	(79	)
Discrete tax items		14
Net loss, as adjusted	$	(65	)

Adjusted Diluted Loss Per Share:
Diluted loss per share, as reported	$	(0.11	)
Discrete tax items		0.01
Diluted loss per share, as adjusted	$	(0.10	)

	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24
Adjusted Net Income (Loss)
Net income (loss) attributable to controlling interest, as reported	$	(512	)	$	7		$	(519	)	$	(494	)	$	(25	)	$	(123	)	$	98
Loss on impairment of assets, net of tax		755			—			755			617			138			138			—
Loss on impairment of investment in unconsolidated affiliates		5			—			5			—			5			4			1
Gain on retirement of debt		(161	)		—			(161	)		(21	)		(140	)		(140	)		—
Discrete tax items		(141	)		20			(161	)		(38	)		(123	)		(2	)		(121	)
Net income (loss), as adjusted	$	(54	)	$	27		$	(81	)	$	64		$	(145	)	$	(123	)	$	(22	)

Adjusted Diluted Earnings (Loss) Per Share:
Diluted earnings (loss) per share, as reported	$	(0.76	)	$	(0.11	)	$	(0.65	)	$	(0.58	)	$	(0.03	)	$	(0.15	)	$	0.11
Loss on impairment of assets, net of tax		0.82			—			0.82			0.64			0.17			0.17			—
Loss on impairment of investment in unconsolidated affiliates		0.01			—			0.01			—			—			—			—
Gain on retirement of debt		(0.18	)		—			(0.18	)		(0.02	)		(0.17	)		(0.17	)		—
Discrete tax items		(0.15	)		0.02			(0.18	)		(0.04	)		(0.15	)		—			(0.14	)
Diluted earnings (loss) per share, as adjusted	$	(0.26	)	$	(0.09	)	$	(0.18	)	$	—		$	(0.18	)	$	(0.15	)	$	(0.03	)


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED CONTRACT DRILLING REVENUES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS
(in millions, except percentages)


	YTD
	03/31/25

Contract drilling revenues	$	906

Net loss	$	(79	)
Interest expense, net of interest income		108
Income tax expense		39
Depreciation and amortization		176
EBITDA		244

Adjusted EBITDA	$	244


Loss margin		(8.7	)%
EBITDA margin		26.9	%
Adjusted EBITDA margin		26.9	%


	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24

Contract drilling revenues	$	3,524		$	952		$	2,572		$	948		$	1,624		$	861		$	763
Contract intangible asset amortization		4			—			4			—			4			—			4
Adjusted Contract Drilling Revenues	$	3,528		$	952		$	2,576		$	948		$	1,628		$	861		$	767

Net income (loss)	$	(512	)	$	7		$	(519	)	$	(494	)	$	(25	)	$	(123	)	$	98
Interest expense, net of interest income		312			81			231			69			162			60			102
Income tax expense (benefit)		(11	)		55			(66	)		(31	)		(35	)		156			(191	)
Depreciation and amortization		739			180			559			190			369			184			185
Contract intangible asset amortization		4			—			4			—			4			—			4
EBITDA		532			323			209			(266	)		475			277			198

Loss on impairment of assets		772			—			772			629			143			143			—
Loss on impairment of investment in unconsolidated affiliates		5			—			5			—			5			4			1
Gain on retirement of debt		(161	)		—			(161	)		(21	)		(140	)		(140	)		—
Adjusted EBITDA	$	1,148		$	323		$	825		$	342		$	483		$	284		$	199


Profit (loss) margin		(14.5	)%		0.7	%		(20.2	)%		(52.0	)%		(1.5	)%		(14.3	)%		12.9	%
EBITDA margin		15.1	%		33.9	%		8.1	%		(28.1	)%		29.2	%		32.2	%		25.8	%
Adjusted EBITDA margin		32.5	%		33.9	%		32.0	%		36.0	%		29.7	%		33.0	%		26.0	%



TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(in millions, except tax rates)


	Three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024

Income (loss) before income taxes	$	(40	)	$	62		$	(93	)
Loss on impairment of investment in unconsolidated affiliates		—			—			1
Adjusted income (loss) before income taxes	$	(40	)	$	62		$	(92	)


Income tax expense (benefit)	$	39		$	55		$	(191	)
Loss on impairment of investment in unconsolidated affiliates		—			—			—
Changes in estimates (1)		(14	)		(20	)		121
Adjusted income tax expense (benefit)	$	25		$	35		$	(70	)

Effective Tax Rate (2)		(95.8	)%		89.0	%		206.0	%

Effective Tax Rate, excluding discrete items (3)		(62.3	)%		56.7	%		76.9	%


(1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.

(2) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.

(3) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
FREE CASH FLOW AND LEVERED FREE CASH FLOW
(in millions)


																			YTD
																			03/31/25

Cash provided by operating activities																			$	26
Capital expenditures																				(60	)
Free Cash Flow																				(34	)
Debt repayments																				(210	)
Debt repayments, paid from debt proceeds																				–
Levered Free Cash Flow																			$	(244	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24

Cash provided by (used in) operating activities	$	447		$	206		$	241		$	194		$	47		$	133		$	(86	)
Capital expenditures		(254	)		(29	)		(225	)		(58	)		(167	)		(84	)		(83	)
Free Cash Flow		193			177			16			136			(120	)		49			(169	)
Debt repayments		(2,103	)		(30	)		(2,073	)		(258	)		(1,815	)		(1,664	)		(151	)
Debt repayments, paid from debt proceeds		1,748			–			1,748			99			1,649			1,649			–
Levered Free Cash Flow	$	(162	)	$	147		$	(309	)	$	(23	)	$	(286	)	$	34		$	(320	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/23			12/31/23			09/30/23			09/30/23			06/30/23			06/30/23			03/31/23

Cash provided by (used in) operating activities	$	164		$	98		$	66		$	(44	)	$	110		$	157		$	(47	)
Capital expenditures		(427	)		(220	)		(207	)		(50	)		(157	)		(76	)		(81	)
Free Cash Flow		(263	)		(122	)		(141	)		(94	)		(47	)		81			(128	)
Debt repayments		(1,717	)		(10	)		(1,707	)		(139	)		(1,568	)		(4	)		(1,564	)
Debt repayments, paid from debt proceeds		1,156			–			1,156			–			1,156			–			1,156
Levered Free Cash Flow	$	(824	)	$	(132	)	$	(692	)	$	(233	)	$	(459	)	$	77		$	(536	)

The MIL Network –

April 29, 2025

MIL-OSI: RBB Bancorp Reports First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, April 28, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

Net income totaled $2.3 million, or $0.13 diluted earnings per share
Return on average assets of 0.24%, compared to 0.44% for the quarter ended December 31, 2024
Net interest margin expanded to 2.88%, up from 2.76% for the quarter ended December 31, 2024
Net loans held for investment growth of $89.8 million, or 12% annualized
Nonperforming assets decreased $16.5 million, or 20.3%, to $64.6 million at March 31, 2025, down from $81.0 million at December 31, 2024
Book value and tangible book value per share⁽¹⁾ increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024

The Company reported net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025, compared to net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024. First quarter of 2025 net income included $6.7 million in pre-tax provision for credit losses mostly related to reducing exposure to nonperforming loans, including higher specific reserves.

“First quarter net income declined to $2.3 million, or 13 cents per share, as we took decisive action to address our nonperforming loans,” said David Morris, Chief Executive Officer of RBB Bancorp. “We reduced our net exposure to nonperforming loans to $51 million, including specific reserves, or 32% since year end. We remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital and we think our actions in the first quarter reflect this.”

“Our loan production was relatively strong during the first quarter driven by continued execution of our initiatives, which resulted in 12% annualized net loan growth. Our loan prospect pipeline continues to be healthy, and we anticipate loan growth to continue in the second quarter, albeit likely at a more moderate pace,” said Johnny Lee, President of RBB Bancorp and President and Chief Executive Officer of the Bank. “While the market environment is volatile, we have not observed significant signs of financial impact to our clients at this time.”

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)

Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Net Interest Income and Net Interest Margin

Net interest income was $26.2 million for the first quarter of 2025, compared to $26.0 million for the fourth quarter of 2024. The $186,000 increase was due to a $2.4 million decrease in interest expense, offset by a $2.2 million decrease in interest income. The decrease in interest income was mostly due to the impact of fewer days in the quarter of $1.2 million and lower average excess liquidity (cash and cash equivalents and investment securities) of $1.5 million. The decrease in interest expense was mostly due to the impact of lower average funding rates of $1.5 million, fewer days in the quarter of $621,000 and lower average interest-bearing liabilities of $336,000. The $1.5 million attributed to lower average funding rates included $1.8 million due to a 29 basis point decrease in the average cost of interest-bearing deposits.

The net interest margin (“NIM”) was 2.88% for the first quarter of 2025, an increase of 12 basis points from 2.76% for the fourth quarter of 2024. The NIM expansion was due to a 17 basis point decrease in the overall cost of funds, partially offset by a 3 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.76% for the first quarter of 2025 from 5.79% for the fourth quarter of 2024 due mainly to a decrease in the yield on average cash and cash equivalents of 32 basis points and average loans of 2 basis points, partially offset by the benefit of a change in the mix in average-earning assets. Average loans represented 84% of average interest-earning assets in the first quarter of 2025, as compared to 82% in the fourth quarter of 2024.

The average cost of funds decreased to 3.15% for the first quarter of 2025 from 3.32% for the fourth quarter of 2024, driven by a 29 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 38 basis point increase in the average cost of borrowings. The average cost of interest-bearing deposits decreased to 3.77% for the first quarter of 2025 from 4.06% for the fourth quarter of 2024. During the first quarter of 2025, $150.0 million in Federal Home Loan Bank (“FHLB”) advances with an average cost of 1.18% matured and were largely replaced with $110.0 million in FHLB advances with various terms at an average rate of 3.88%. The overall funding mix for the first quarter of 2025 remained relatively unchanged from the fourth quarter of 2024 with total deposits representing 90% of the funding mix and average noninterest-bearing deposits representing 17% of average total deposits. The all-in average spot rate for total deposits was 3.06% at March 31, 2025.

Provision for Credit Losses

The provision for credit losses was $6.7 million for the first quarter of 2025 compared to $6.0 million for the fourth quarter of 2024. The first quarter of 2025 provision for credit losses was due to an increase in specific reserves of $2.8 million, net charge-offs of $2.6 million and an increase in general reserves of $1.3 million due mainly to net loan growth. The first quarter increase in specific reserves related mostly to two lending relationships. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming single-family residential (“SFR”) mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to other real estate owned (“OREO”) and subsequently sold. Net charge-offs on an annualized basis represented 0.35% of average loans for the first quarter of 2025 compared to 0.26% for the fourth quarter of 2024. The first quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in nonperforming loans, special mention and substandard loans during the period.

Noninterest Income

Noninterest income for the first quarter of 2025 was $2.3 million, a decrease of $434,000 from $2.7 million for the fourth quarter of 2024. This decrease was mostly due to the fourth quarter of 2024 including $258,000 of income from a Bank Enterprise Award grant (included in other income) and lower net gain on sale of loans as compared to the fourth quarter of 2024.

Noninterest Expense

Noninterest expense for the first quarter of 2025 was $18.5 million, an increase of $873,000 from $17.6 million for the fourth quarter of 2024. This increase was mostly due to higher salaries and employee benefits expense of $716,000 attributed to higher payroll taxes and annual pay increases, which are typically reflected in the first quarter of the year. The annualized noninterest expenses to average assets ratio was 1.90% for the first quarter of 2025, up from 1.76% for the fourth quarter of 2024. The efficiency ratio was 65.1% for the first quarter of 2025, up from 61.5% for the fourth quarter of 2024 due mostly to higher noninterest expense.

Income Taxes

The effective tax rate was 28.2% for the first quarter of 2025 and 13.3% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter was due in part to lower tax credits combined with higher estimated pre-tax net income for the full year of 2025 as compared to the prior quarter.2

Balance Sheet

At March 31, 2025, total assets were $4.0 billion, a $16.9 million increase compared to December 31, 2024, and a $131.4 million increase compared to March 31, 2024.

Loan and Securities Portfolio

Loans held for investment (“HFI”) totaled $3.1 billion as of March 31, 2025, an increase of $89.8 million, or 12% annualized, compared to December 31, 2024 and an increase of $115.7 million, or 3.8%, compared to March 31, 2024. The first quarter of 2025 net loan growth included $201 million in new production with an average yield of 6.77%. When loan sales, charge-offs, and foreclosures totaling $28.6 million are considered, the annualized first quarter net loan growth rate was 16%. The increase from December 31, 2024 was primarily due to a $51.8 million increase in SFR mortgage loans, a $44.0 million increase in commercial real estate (“CRE”) loans, a $6.0 million increase in commercial and industrial (“C&I”) loans and a $3.4 million increase in Small Business Administration (“SBA”) loans, partially offset by a $14.4 million decrease in construction and land development (“C&D”) loans. The loan to deposit ratio was 98.4% at March 31, 2025, compared to 97.5% at December 31, 2024 and 98.6% at March 31, 2024.

As of March 31, 2025, available for sale securities totaled $378.2 million, a decrease of $42.0 million from December 31, 2024, primarily related to the net decrease in short-term commercial paper of $41.4 million due to maturity and purchase activity during the first quarter of 2025. As of March 31, 2025, net unrealized losses totaled $25.0 million, a $4.2 million decrease, when compared to net unrealized losses of $29.2 million as of December 31, 2024.

Deposits

Total deposits were $3.1 billion as of March 31, 2025, an increase of $58.8 million, or 7.7% annualized, compared to December 31, 2024 and an increase of $114.3 million, or 3.8%, compared to March 31, 2024. The increase during the first quarter of 2025 was due to a $93.6 million increase in interest-bearing deposits, while noninterest-bearing deposits decreased $34.8 million. The increase in interest-bearing deposits included increases in non-maturity deposits of $58.2 million and time deposits of $35.5 million. Wholesale deposits totaled $158.5 million at March 31, 2025, and $147.5 million at December 31, 2024. Noninterest-bearing deposits totaled $528.2 million and represented 16.8% of total deposits at March 31, 2025 compared to $563.0 million and 18.3% at December 31, 2024.

Credit Quality

Nonperforming assets totaled $64.6 million, or 1.61% of total assets, at March 31, 2025, down from $81.0 million, or 2.03% of total assets, at December 31, 2024. The $16.5 million decrease in nonperforming assets was due to sales totaling $20.0 million and payoffs or paydowns of $1.8 million, partially offset by the addition of one $5.3 million CRE loan placed on nonaccrual status in the first quarter of 2025. Nonperforming assets included one $4.2 million OREO (included in “Accrued interest and other assets”) at March 31, 2025, which was a nonaccrual loan at December 31, 2024.

Special mention loans totaled $64.3 million, or 2.05% of total loans, at March 31, 2025, down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $1.1 million decrease was primarily due to the upgrade of one $1.7 million CRE loan to a pass-rated loan, offset by the addition of one $578,000 C&I loan. All special mention loans are paying current.

Substandard loans totaled $76.4 million at March 31, 2025, down from $100.3 million at December 31, 2024. This $24.0 million decrease was primarily due to loan sales totaling $11.7 million, transfers to OREO totaling $12.8 million, of which $8.8 million was subsequently sold during the first quarter of 2025, and payoffs and paydowns totaling $5.4 million, partially offset by the downgrade of two loans totaling $6.2 million. Of the total substandard loans at March 31, 2025, there were $16.0 million on accrual status.

30-89 day delinquent loans, excluding nonperforming loans, totaled $5.9 million, or 0.19% of total loans, at March 31, 2025, down from $22.1 million, or 0.72% of total loans, at December 31, 2024. The $16.2 million decrease was mostly due to $16.3 million in loans returning to current status, $2.9 million in SFR mortgage loans included in the bulk sale of several underperforming SFR mortgage loans and $398,000 in paydowns and payoffs, offset by $3.5 million in new delinquent loans.3

As of March 31, 2025, the allowance for credit losses totaled $52.6 million and was comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $48.5 million, comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 at December 31, 2024. The $4.1 million increase in the allowance for credit losses for the first quarter of 2025 was due to a $6.7 million provision for credit losses offset by net charge-offs of $2.6 million. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming SFR mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to OREO and subsequently sold. The allowance for loan losses as a percentage of loans HFI increased to 1.65% at March 31, 2025, compared to 1.56% at December 31, 2024, due to an increase in specific reserves. The allowance for loan losses as a percentage of nonperforming loans HFI was 86% at March 31, 2025, an increase from 68% at December 31, 2024.

	For the Three Months Ended March 31, 2025
*(dollars in thousands)*	Allowance for loan losses			Reserve for unfunded loan commitments			Allowance for credit losses
Beginning balance	$	47,729		$	729		$	48,458
Provision for (reversal of) credit losses		6,846			(100	)		6,746
Less loans charged-off		(2,727	)		—			(2,727	)
Recoveries on loans charged-off		84			—			84
Ending balance	$	51,932		$	629		$	52,561

Shareholders’ Equity

At March 31, 2025, total shareholders’ equity was $510.3 million, a $2.4 million increase compared to December 31, 2024, and a $3.7 million decrease compared to March 31, 2024. The increase in shareholders’ equity for the first quarter of 2025 was due to lower net unrealized losses on available for sale securities of $3.0 million, net income of $2.3 million and equity compensation activity of $43,000, offset by common stock cash dividends paid of $2.9 million. The decrease in shareholders’ equity for the last twelve months was due to common stock repurchases of $19.2 million and dividends paid of $11.6 million on common stock, offset by net income of $20.9 million, lower net unrealized losses on available for sale securities of $3.7 million, and equity compensation activity of $2.5 million. Book value per share and tangible book value per share⁽¹⁾ increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 and up from $27.67 and $23.68 at March 31, 2024.

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)

Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2025, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, April 29, 2025, to discuss the Company’s first quarter 2025 financial results.

To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 534591, conference ID RBBQ125. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52277, approximately one hour after the conclusion of the call and will remain available through May 13, 2025.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Assets
Cash and due from banks	$	25,315		$	27,747		$	26,388		$	23,313		$	21,887
Interest-earning deposits with financial institutions		213,508			229,998			323,002			229,456			247,356
Cash and cash equivalents		238,823			257,745			349,390			252,769			269,243
Interest-earning time deposits with financial institutions		600			600			600			600			600
Investment securities available for sale		378,188			420,190			305,666			325,582			335,194
Investment securities held to maturity		5,188			5,191			5,195			5,200			5,204
Loans held for sale		655			11,250			812			3,146			3,903
Loans held for investment		3,143,063			3,053,230			3,091,896			3,047,712			3,027,361
Allowance for loan losses		(51,932	)		(47,729	)		(43,685	)		(41,741	)		(41,688	)
Net loans held for investment		3,091,131			3,005,501			3,048,211			3,005,971			2,985,673
Premises and equipment, net		24,308			24,601			24,839			25,049			25,363
Federal Home Loan Bank (FHLB) stock		15,000			15,000			15,000			15,000			15,000
Cash surrender value of bank owned life insurance		60,699			60,296			59,889			59,486			59,101
Goodwill		71,498			71,498			71,498			71,498			71,498
Servicing assets		6,766			6,985			7,256			7,545			7,794
Core deposit intangibles		1,839			2,011			2,194			2,394			2,594
Right-of-use assets		26,779			28,048			29,283			30,530			31,231
Accrued interest and other assets		87,926			83,561			70,644			63,416			65,608
Total assets	$	4,009,400		$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006
Liabilities and shareholders’ equity
Deposits:
Noninterest-bearing demand	$	528,205		$	563,012		$	543,623		$	542,971		$	539,517
Savings, NOW and money market accounts		721,216			663,034			666,089			647,770			642,840
Time deposits, $250,000 and under		1,000,106			1,007,452			1,052,462			1,014,189			1,083,898
Time deposits, greater than $250,000		893,101			850,291			830,010			818,675			762,074
Total deposits		3,142,628			3,083,789			3,092,184			3,023,605			3,028,329
FHLB advances		160,000			200,000			200,000			150,000			150,000
Long-term debt, net of issuance costs		119,624			119,529			119,433			119,338			119,243
Subordinated debentures		15,211			15,156			15,102			15,047			14,993
Lease liabilities – operating leases		28,483			29,705			30,880			32,087			32,690
Accrued interest and other liabilities		33,148			36,421			23,150			16,818			18,765
Total liabilities		3,499,094			3,484,600			3,480,749			3,356,895			3,364,020
Shareholders’ equity:
Common stock		260,284			259,957			259,280			266,160			271,645
Additional paid-in capital		3,360			3,645			3,520			3,456			3,348
Retained earnings		263,885			264,460			262,946			262,518			259,903
Non-controlling interest		72			72			72			72			72
Accumulated other comprehensive loss, net		(17,295	)		(20,257	)		(16,090	)		(20,915	)		(20,982	)
Total shareholders’ equity		510,306			507,877			509,728			511,291			513,986
Total liabilities and shareholders’ equity	$	4,009,400		$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
*(In thousands, except share and per share data)*

	For the Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
Interest and dividend income:
Interest and fees on loans	$	45,621	$	46,374	$	45,547
Interest on interest-earning deposits		2,014		3,641		5,040
Interest on investment securities		4,136		3,962		3,611
Dividend income on FHLB stock		330		330		331
Interest on federal funds sold and other		235		248		266
Total interest and dividend income		52,336		54,555		54,795
Interest expense:
Interest on savings deposits, NOW and money market accounts		4,468		4,671		4,478
Interest on time deposits		19,084		21,361		23,322
Interest on long-term debt and subordinated debentures		1,632		1,660		1,679
Interest on FHLB advances		989		886		439
Total interest expense		26,173		28,578		29,918
Net interest income before provision for credit losses		26,163		25,977		24,877
Provision for credit losses		6,746		6,000		—
Net interest income after provision for credit losses		19,417		19,977		24,877
Noninterest income:
Service charges and fees		1,017		988		992
Gain on sale of loans		81		376		312
Loan servicing fees, net of amortization		588		492		589
Increase in cash surrender value of life insurance		403		407		382
Gain on OREO		—		—		724
Other income		206		466		373
Total noninterest income		2,295		2,729		3,372
Noninterest expense:
Salaries and employee benefits		10,643		9,927		9,927
Occupancy and equipment expenses		2,407		2,403		2,443
Data processing		1,602		1,499		1,420
Legal and professional		1,515		1,355		880
Office expenses		408		399		356
Marketing and business promotion		197		251		172
Insurance and regulatory assessments		730		677		982
Core deposit premium		172		182		201
Other expenses		848		956		588
Total noninterest expense		18,522		17,649		16,969
Income before income taxes		3,190		5,057		11,280
Income tax expense		900		672		3,244
Net income	$	2,290	$	4,385	$	8,036

Net income per share
Basic	$	0.13	$	0.25	$	0.43
Diluted	$	0.13	$	0.25	$	0.43
Cash dividends declared per common share	$	0.16	$	0.16	$	0.16
Weighted-average common shares outstanding
Basic		17,727,712		17,704,992		18,601,277
Diluted		17,770,588		17,796,840		18,666,683

RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)

	For the Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(tax-equivalent basis,	Average		Interest		Yield /			Average		Interest		Yield /			Average		Interest		Yield /
*dollars in thousands)*	Balance		& Fees		Rate			Balance		& Fees		Rate			Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	194,236	$	2,249		4.70	%	$	308,455	$	3,890		5.02	%	$	364,979	$	5,306		5.85	%
FHLB Stock		15,000		330		8.92	%		15,000		330		8.75	%		15,000		331		8.88	%
Securities
Available for sale ⁽²⁾		390,178		4,113		4.28	%		361,253		3,939		4.34	%		320,015		3,589		4.51	%
Held to maturity ⁽²⁾		5,189		49		3.83	%		5,194		48		3.68	%		5,207		46		3.55	%
Total loans ⁽³⁾		3,079,224		45,621		6.01	%		3,059,786		46,374		6.03	%		3,018,423		45,547		6.07	%
Total interest-earning assets		3,683,827	$	52,362		5.76	%		3,749,688	$	54,581		5.79	%		3,723,624	$	54,819		5.92	%
Total noninterest-earning assets		260,508							244,609							246,341
Total average assets	$	3,944,335						$	3,994,297						$	3,969,965

Interest-bearing liabilities
NOW		61,222		321		2.13	%	$	53,879	$	254		1.88	%	$	58,946	$	298		2.03	%
Money market		463,443		3,625		3.17	%		463,850		3,735		3.20	%		411,751		3,526		3.44	%
Saving deposits		155,116		522		1.36	%		162,351		682		1.67	%		157,227		654		1.67	%
Time deposits, $250,000 and under		989,622		10,046		4.12	%		1,034,946		11,583		4.45	%		1,175,804		13,805		4.72	%
Time deposits, greater than $250,000		864,804		9,038		4.24	%		835,583		9,778		4.66	%		785,172		9,517		4.88	%
Total interest-bearing deposits		2,534,207		23,552		3.77	%		2,550,609		26,032		4.06	%		2,588,900		27,800		4.32	%
FHLB advances		176,833		989		2.27	%		200,000		886		1.76	%		150,000		439		1.18	%
Long-term debt		119,562		1,295		4.39	%		119,466		1,295		4.31	%		119,180		1,295		4.37	%
Subordinated debentures		15,175		337		9.01	%		15,121		365		9.60	%		14,957		384		10.33	%
Total interest-bearing liabilities		2,845,777		26,173		3.73	%		2,885,196		28,578		3.94	%		2,873,037		29,918		4.19	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		520,145							539,900							528,346
Other noninterest-bearing liabilities		66,151							56,993							55,795
Total noninterest-bearing liabilities		586,296							596,893							584,141
Shareholders’ equity		512,262							512,208							512,787
Total liabilities and shareholders’ equity	$	3,944,335						$	3,994,297						$	3,969,965
Net interest income / interest rate spreads			$	26,189		2.03	%			$	26,003		1.85	%			$	24,901		1.73	%
Net interest margin						2.88	%						2.76	%						2.69	%

Total cost of deposits	$	3,054,352	$	23,552		3.13	%	$	3,090,509	$	26,032		3.35	%	$	3,117,246	$	27,800		3.59	%
Total cost of funds	$	3,365,922	$	26,173		3.15	%	$	3,425,096	$	28,578		3.32	%	$	3,401,383	$	29,918		3.54	%

(1	)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2	)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3	)	Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

	At or for the Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Per share data (common stock)
Book value	$	28.77		$	28.66		$	27.67
Tangible book value ⁽¹⁾	$	24.63		$	24.51		$	23.68
Performance ratios
Return on average assets, annualized		0.24	%		0.44	%		0.81	%
Return on average shareholders’ equity, annualized		1.81	%		3.41	%		6.30	%
Return on average tangible common equity, annualized ⁽¹⁾		2.12	%		3.98	%		7.37	%
Noninterest income to average assets, annualized		0.24	%		0.27	%		0.34	%
Noninterest expense to average assets, annualized		1.90	%		1.76	%		1.72	%
Yield on average earning assets		5.76	%		5.79	%		5.92	%
Yield on average loans		6.01	%		6.03	%		6.07	%
Cost of average total deposits ⁽²⁾		3.13	%		3.35	%		3.59	%
Cost of average interest-bearing deposits		3.77	%		4.06	%		4.32	%
Cost of average interest-bearing liabilities		3.73	%		3.94	%		4.19	%
Net interest spread		2.03	%		1.85	%		1.73	%
Net interest margin		2.88	%		2.76	%		2.69	%
Efficiency ratio ⁽³⁾		65.09	%		61.48	%		60.07	%
Common stock dividend payout ratio		123.08	%		64.00	%		37.21	%

(1	)	Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
(2	)	Total deposits include non-interest bearing deposits and interest-bearing deposits.
(3	)	Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
*(Dollars in thousands)*

	At or for the quarter ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Credit Quality Data:
Special mention loans	$	64,279		$	65,329		$	20,580
Special mention loans to total loans		2.05	%		2.14	%		0.68	%
Substandard loans HFI	$	76,372		$	89,141		$	57,170
Substandard loans HFS	$	—		$	11,195		$	—
Substandard loans HFI to total loans HFI		2.43	%		2.92	%		1.89	%
Loans 30-89 days past due, excluding nonperforming loans	$	5,927		$	22,086		$	20,950
Loans 30-89 days past due, excluding nonperforming loans, to total loans		0.19	%		0.72	%		0.69	%
Nonperforming loans HFI	$	60,380		$	69,843		$	35,935
Nonperforming loans HFS	$	—		$	11,195		$	—
OREO	$	4,170		$	—		$	1,071
Nonperforming assets	$	64,550		$	81,038		$	37,006
Nonperforming loans HFI to total loans HFI		1.92	%		2.29	%		1.19	%
Nonperforming assets to total assets		1.61	%		2.03	%		0.95	%

Allowance for loan losses	$	51,932		$	47,729		$	41,688
Allowance for loan losses to total loans HFI		1.65	%		1.56	%		1.38	%
Allowance for loan losses to nonperforming loans HFI		86.01	%		68.34	%		116.01	%
Net charge-offs	$	2,643		$	2,006		$	184
Net charge-offs to average loans		0.35	%		0.26	%		0.02	%

Capital ratios ⁽¹⁾
Tangible common equity to tangible assets ⁽²⁾		11.10	%		11.08	%		11.56	%
Tier 1 leverage ratio		12.07	%		11.92	%		12.16	%
Tier 1 common capital to risk-weighted assets		17.87	%		17.94	%		19.10	%
Tier 1 capital to risk-weighted assets		18.45	%		18.52	%		19.72	%
Total capital to risk-weighted assets		24.41	%		24.49	%		25.91	%

(1	)	March 31, 2025 capital ratios are preliminary.
(2	)	Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Loan Portfolio Detail	As of March 31, 2025					As of December 31, 2024						As of March 31, 2024
*(dollars in thousands)*	$			%		$			%			$			%
Loans:
Commercial and industrial	$	135,538		4.3	%	$	129,585			4.2	%	$	121,441			4.0	%
SBA		50,651		1.6	%		47,263			1.5	%		54,677			1.8	%
Construction and land development		158,883		5.1	%		173,290			5.7	%		198,070			6.5	%
Commercial real estate ⁽¹⁾		1,245,402		39.6	%		1,201,420			39.3	%		1,178,498			38.9	%
Single-family residential mortgages		1,545,822		49.2	%		1,494,022			48.9	%		1,463,497			48.4	%
Other loans		6,767		0.2	%		7,650			0.4	%		11,178			0.4	%
Total loans ⁽²⁾	$	3,143,063		100.0	%	$	3,053,230			100.0	%	$	3,027,361			100.0	%
Allowance for loan losses		(51,932	)				(47,729	)					(41,688	)
Total loans, net	$	3,091,131				$	3,005,501					$	2,985,673

(1	)	Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
(2	)	Net of discounts and deferred fees and costs of $808, $488, and $474 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Deposits	As of March 31, 2025				As of December 31, 2024					As of March 31, 2024
*(dollars in thousands)*	$		%		$		%			$		%
Deposits:
Noninterest-bearing demand	$	528,205	16.8	%	$	563,012		18.3	%	$	539,517		17.8	%
Savings, NOW and money market accounts		721,216	22.9	%		663,034		21.5	%		642,840		21.2	%
Time deposits, $250,000 and under		863,962	27.5	%		882,438		28.6	%		901,738		29.8	%
Time deposits, greater than $250,000		870,708	27.8	%		827,854		26.8	%		746,611		24.7	%
Wholesale deposits ⁽¹⁾		158,537	5.0	%		147,451		4.8	%		197,623		6.5	%
Total deposits	$	3,142,628	100.0	%	$	3,083,789		100.0	%	$	3,028,329		100.0	%

(1

)

Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024, and March 31, 2024.


*(dollars in thousands, except share and per share data)*	March 31, 2025			December 31, 2024			March 31, 2024
Tangible common equity:
Total shareholders’ equity	$	510,306		$	507,877		$	513,986
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,839	)		(2,011	)		(2,594	)
Tangible common equity	$	436,969		$	434,368		$	439,894
Tangible assets:
Total assets-GAAP	$	4,009,400		$	3,992,477		$	3,878,006
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,839	)		(2,011	)		(2,594	)
Tangible assets	$	3,936,063		$	3,918,968		$	3,803,914
Common shares outstanding		17,738,628			17,720,416			18,578,132
Common equity to assets ratio		12.73	%		12.72	%		13.25	%
Tangible common equity to tangible assets ratio		11.10	%		11.08	%		11.56	%
Book value per share	$	28.77		$	28.66		$	27.67
Tangible book value per share	$	24.63		$	24.51		$	23.68

Return on Average Tangible Common Equity

Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

	Three Months Ended
*(dollars in thousands)*	March 31, 2025			December 31, 2024			March 31, 2024
Net income available to common shareholders	$	2,290		$	4,385		$	8,036
Average shareholders’ equity		512,262			512,208			512,787
Adjustments:
Average goodwill		(71,498	)		(71,498	)		(71,498	)
Average core deposit intangible		(1,951	)		(2,129	)		(2,726	)
Adjusted average tangible common equity	$	438,813		$	438,581		$	438,563
Return on average common equity, annualized		1.81	%		3.41	%		6.30	%
Return on average tangible common equity, annualized		2.12	%		3.98	%		7.37	%

The MIL Network –

April 29, 2025

MIL-OSI: EZCORP Reports Second Quarter Fiscal 2025 Results

Source: GlobeNewswire (MIL-OSI)

AUSTIN, Texas, April 28, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, today announced results for its second quarter ended March 31, 2025.

Unless otherwise noted, all amounts in this release are in conformity with U.S. generally accepted accounting principles (“GAAP”) and comparisons shown are to the same period in the prior year.

SECOND QUARTER HIGHLIGHTS

Pawn loans outstanding (PLO) up 11% to $261.8 million.

Net income increased 18% to $25.4 million. On an adjusted basis¹, net income increased 25% to $26.1 million.

Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.

Adjusted EBITDA increased 23% to $45.1 million.

Total revenues increased 7% to $306.3 million, while gross profit increased 6% to $178.5 million.

Completed a $300.0 million private offering of senior notes due 2032.

CEO COMMENTARY AND OUTLOOK
Lachie Given, Chief Executive Officer, stated, “Our team delivered another impressive quarter of operational and financial performance, highlighted by record Q2 PLO, which drove strong growth in revenue and pawn service charges. Persistent inflation and economic pressure continue to impact value-conscious consumers who are increasingly turning to us for short-term cash and secondhand goods. Our strengthened operating model and best-in-class customer service also fueled the bottom line, driving a material increase in adjusted EBITDA to $45.1 million, up 23%.

“Our consistent performance across geographies reflects our company-wide commitment to our core values of People, Pawn and Passion. In the U.S., PLO and adjusted EBITDA increased 15%, reflecting strong loan demand, increased average loan size and disciplined cost management. In Latin America, PLO increased 17% on a constant currency basis, and adjusted EBITDA grew 36%, propelled by robust demand for loans and secondhand goods and our strong operational execution.

“Our disciplined capital allocation strategy prioritizes substantial liquidity to drive strong organic growth, pursue value-enhancing acquisitions and investments and meet near-term debt maturities. In March, we completed a $300.0 million private offering of senior notes, the Company’s largest financing transaction to date, expanding our financial flexibility for continued growth and meaningfully enhancing our capital structure, as we retire our 2025 convertible notes maturing on May 1.

“It was another outstanding quarter for EZCORP, and I thank the team for their unwavering commitment to operational excellence as we continue to drive significantly enhanced value for our shareholders.”

CONSOLIDATED RESULTS

Three Months Ended March 31	As Reported				Adjusted¹
in millions, except per share amounts	2025		2024		2025		2024

Total revenues	$	306.3	$	285.6	$	318.9	$	285.6
Gross profit	$	178.5	$	167.6	$	185.0	$	167.6
Income before tax	$	34.4	$	28.7	$	35.4	$	28.0
Net income	$	25.4	$	21.5	$	26.1	$	21.0
Diluted earnings per share	$	0.33	$	0.29	$	0.34	$	0.28
EBITDA (non-GAAP measure)	$	43.8	$	37.4	$	45.1	$	36.7

PLO increased 11% to $261.8 million, up $26.1 million. On a same-store² basis, PLO increased 11% due to increase in average loan size, continued strong pawn demand and improved operational performance.

Total revenues increased 7% and gross profit increased 6%, reflecting improved pawn service charge (PSC) revenues due to higher average PLO.

PSC increased 8% as a result of higher average PLO.

Merchandise sales gross margin at 34%, down from 35%. Aged general merchandise was 2.4% of total general merchandise inventory, up 14 basis points.

Net inventory increased 27%, as a result of the increase in PLO and decrease in inventory turnover to 2.5x, from 2.9x.

Store expenses increased 2% and were flat on a same-store basis.

General and administrative expenses increased 8%, primarily due to labor and a gain on a corporate lease termination in the prior year.

Income before taxes was $34.4 million, up 20% from $28.7 million, and adjusted EBITDA increased 23% to $45.1 million.

Diluted earnings per share increased 14% to $0.33. On an adjusted basis, diluted earnings per share increased 21% to $0.34.

Cash and cash equivalents at the end of the quarter was $505.2 million, up from $170.5 million as of September 30, 2024. The increase was primarily due to $300.0 million (less issuance costs) from the issuance of the Senior Notes due 2032 and cash from operating activities.

SEGMENT RESULTS
U.S. Pawn

PLO ended the quarter at $199.4 million, up 15% on a total and same-store basis due to increase in average loan size, increased loan demand and improved operational performance.

Total revenues increased 7% and gross profit increased 8%, reflecting higher PSC.

PSC increased 9% as a result of higher average PLO, partially offset by lower PLO yield.

Merchandise sales increased 2%, and gross margin decreased to 36% from 37%. Aged general merchandise decreased by 14 basis points to 2.8%, or $1.3 million of total general merchandise inventory. Excluding our three Max Pawn luxury stores in Las Vegas, aged general merchandise was 1.5%.

Net inventory increased 29%, due to increase in PLO, increase in customer layaways and a decrease in inventory turnover to 2.3x, from 2.6x.

Store expenses increased 3% (2% on a same-store basis) primarily due to labor, the majority of which was offset by a decrease in expenses related to our loyalty program.

Segment contribution increased 16% to $47.1 million.

Segment store count remained at 542.

Latin America Pawn

PLO improved to $62.4 million, up 1% (17% on constant currency basis). On a same-store basis, PLO decreased 2% (14% increase on a constant currency basis). The constant currency increase was due to improved operational performance and increased loan demand.

Total revenues were up 9% (25% on constant currency basis), and gross profit increased 3% (18% on a constant currency basis), mainly due to increased PSC.

PSC increased to $28.3 million, up 4% (19% on a constant currency basis) as a result of higher average PLO.

Merchandise sales increased 5% (21% on constant currency basis) and merchandise sales gross margin decreased to 30% from 33%. Aged general merchandise increased to 1.9% from 1.4% of total general merchandise inventory.

Net inventory increased 23% (44% on a constant currency basis) due to increase in PLO and decrease in inventory turnover to 3.2x, from 3.6x.

Store expenses decreased 2% (13% increase on a constant currency basis) and decreased 4% on a same-store basis (11% increase on a constant currency basis). The constant currency increase was primarily due to increased labor, in line with store activity and minimum wage increases, offset by a decrease in expenses related to our loyalty program.

Segment contribution increased 30% to $10.6 million (43% on a constant currency basis). On an adjusted basis, segment contribution was up 42% to $11.6 million.

Segment store count increased by one to 742 due to the addition of nine de novo stores, the acquisition of one store, and the consolidation of nine stores.

FORM 10-Q
EZCORP’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 has been filed with the Securities and Exchange Commission. The report is available in the Investor Relations section of the Company’s website at http://investors.ezcorp.com. EZCORP shareholders may obtain a paper copy of the report, free of charge, by sending a request to the investor relations contact below.

CONFERENCE CALL
EZCORP will host a conference call on Tuesday, April 29, 2025, at 8:00 am Central Time to discuss Second Quarter Fiscal 2025 results. Analysts and institutional investors may participate on the conference call by registering online at https://registrations.events/direct/NTM1088399. Once registered you will receive the dial-in details with a unique PIN to join the call. The conference call will be webcast simultaneously to the public through this link: https://edge.media-server.com/mmc/p/hqptihjy. A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the end of the call.

ABOUT EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.

Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

FORWARD LOOKING STATEMENTS
This announcement contains certain forward-looking statements regarding the Company’s strategy, initiatives and expected performance. These statements are based on the Company’s current expectations as to the outcome and timing of future events. All statements, other than statements of historical facts, including all statements regarding the Company’s strategy, initiatives and future performance, that address activities or results that the Company plans, expects, believes, projects, estimates or anticipates, will, should or may occur in the future, including future financial or operating results, are forward-looking statements. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of uncertainties and other factors, including operating risks, liquidity risks, legislative or regulatory developments, market factors, current or future litigation and risks associated with the COVID-19 pandemic. For a discussion of these and other factors affecting the Company’s business and prospects, see the Company’s annual, quarterly and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

Contact:
Email: Investor_Relations@ezcorp.com
Phone: (512) 314-2220


EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended March 31,						Six Months Ended March 31,
(in thousands, except per share amounts)	2025			2024			2025			2024
Revenues:
Merchandise sales	$	169,467		$	164,687		$	355,810		$	344,090
Jewelry scrapping sales		20,938			13,714			37,670			27,796
Pawn service charges		115,871			107,163			232,923			213,612
Other revenues		40			75			83			132
Total revenues		306,316			285,639			626,486			585,630
Merchandise cost of goods sold		111,555			106,259			233,379			221,469
Jewelry scrapping cost of goods sold		16,309			11,788			29,251			23,996
Gross profit		178,452			167,592			363,856			340,165
Operating expenses:
Store expenses		116,527			114,582			232,978			225,137
General and administrative		19,640			18,266			38,309			34,809
Depreciation and amortization		8,020			8,219			16,355			16,784
Loss (gain) on sale or disposal of assets and other		17			3			25			(169	)
Other income		—			(765	)		—			(765	)
Total operating expenses		144,204			140,305			287,667			275,796
Operating income		34,248			27,287			76,189			64,369
Interest expense		3,281			3,402			6,428			6,842
Interest income		(1,875	)		(2,882	)		(3,968	)		(5,521	)
Equity in net income of unconsolidated affiliates		(1,505	)		(1,719	)		(2,980	)		(2,872	)
Other (income) expense		(65	)		(165	)		913			(436	)
Income before income taxes		34,412			28,651			75,796			66,356
Income tax expense		9,022			7,172			19,390			16,407
Net income	$	25,390		$	21,479		$	56,406		$	49,949

Basic earnings per share	$	0.46		$	0.39		$	1.03		$	0.91
Diluted earnings per share	$	0.33		$	0.29		$	0.74		$	0.65

Weighted-average basic shares outstanding		54,965			55,093			54,895			55,084
Weighted-average diluted shares outstanding		83,140			83,045			83,247			84,948

EZCORP, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except share and per share amounts)	March 31, 2025			March 31, 2024			September 30, 2024

Assets:
Current assets:
Cash and cash equivalents	$	505,239		$	229,111		$	170,513
Restricted cash		9,499			8,581			9,294
Pawn loans		261,830			235,773			274,084
Pawn service charges receivable, net		42,323			38,268			44,013
Inventory, net		207,783			163,429			191,923
Prepaid expenses and other current assets		40,283			47,142			39,171
Total current assets		1,066,957			722,304			728,998
Investments in unconsolidated affiliates		13,967			13,162			13,329
Other investments		51,903			51,220			51,900
Property and equipment, net		64,150			63,306			65,973
Right-of-use assets, net		229,878			243,752			226,602
Goodwill		305,239			310,658			306,478
Intangible assets, net		57,079			61,714			58,451
Deferred tax asset, net		25,090			26,247			25,362
Other assets, net		15,365			15,779			16,144
Total assets	$	1,829,628		$	1,508,142		$	1,493,237

Liabilities and equity:
Current liabilities:
Current maturities of long-term debt, net	$	103,325		$	34,347		$	103,072
Accounts payable, accrued expenses and other current liabilities		70,843			62,838			85,737
Customer layaway deposits		31,016			20,352			21,570
Operating lease liabilities, current		58,855			55,658			58,998
Total current liabilities		264,039			173,195			269,377
Long-term debt, net		517,188			326,573			224,256
Deferred tax liability, net		1,818			465			2,080
Operating lease liabilities		182,873			197,285			180,616
Other long-term liabilities		12,135			10,228			12,337
Total liabilities		978,053			707,746			688,666
Commitments and contingencies
Stockholders’ equity:
Class A Non-voting Common Stock, par value $0.01 per share; shares authorized: 100 million; issued and outstanding: 52,043,599 as of March 31, 2025; 52,057,309 as of March 31, 2024; and 51,582,698 as of September 30, 2024		520			521			516
Class B Voting Common Stock, convertible, par value $0.01 per share; shares authorized: 3 million; issued and outstanding: 2,970,171		30			30			30
Additional paid-in capital		347,796			345,174			348,366
Retained earnings		561,211			477,683			507,206
Accumulated other comprehensive loss		(57,982	)		(23,012	)		(51,547	)
Total equity		851,575			800,396			804,571
Total liabilities and equity	$	1,829,628		$	1,508,142		$	1,493,237

EZCORP, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Six Months Ended March 31,
(in thousands)	2025			2024

Operating activities:
Net income	$	56,406		$	49,949
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,355			16,784
Amortization of deferred financing costs		725			807
Non-cash lease expense		28,943			29,514
Deferred income taxes		10			515
Other adjustments		(1,241	)		(1,429	)
Provision for inventory reserve		39			183
Stock compensation expense		5,001			4,844
Equity in net income from investment in unconsolidated affiliates		(2,980	)		(2,872	)
Changes in operating assets and liabilities, net of business acquisitions:
Pawn service charges receivable		1,547			1,071
Inventory		(5,390	)		1,617
Prepaid expenses, other current assets and other assets		444			(8,699	)
Accounts payable, accrued expenses and other liabilities		(45,490	)		(57,531	)
Customer layaway deposits		9,640			886
Income taxes		(1,081	)		909
Net cash provided by operating activities		62,928			36,548
Investing activities:
Loans made		(484,611	)		(433,194	)
Loans repaid		284,095			262,970
Recovery of pawn loan principal through sale of forfeited collateral		198,387			188,351
Capital expenditures, net		(13,966	)		(13,654	)
Acquisitions, net of cash acquired		(79	)		(8,610	)
Investment in unconsolidated affiliate		(509	)		(850	)
Investment in other investments		—			(15,000	)
Dividends from unconsolidated affiliates		1,902			1,745
Net cash used in investing activities		(14,781	)		(18,242	)
Financing activities:
Taxes paid related to net share settlement of equity awards		(3,971	)		(3,253	)
Proceeds from borrowings		300,000			—
Debt issuance cost		(5,310	)		—
Purchase and retirement of treasury stock		(3,997	)		(6,010	)
Payments of finance leases		(266	)		(276	)
Net cash provided by (used in) financing activities		286,456			(9,539	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		328			(43	)
Net increase in cash, cash equivalents and restricted cash		334,931			8,724
Cash and cash equivalents and restricted cash at beginning of period		179,807			228,968
Cash and cash equivalents and restricted cash at end of period	$	514,738		$	237,692

EZCORP, Inc. OPERATING SEGMENT RESULTS

	Three Months Ended March 31, 2025 (Unaudited)
(in thousands)	U.S. Pawn		Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	116,915	$	52,552		$	—		$	169,467		$	—		$	169,467
Jewelry scrapping sales		16,898		4,040			—			20,938			—			20,938
Pawn service charges		87,548		28,323			—			115,871			—			115,871
Other revenues		24		16			—			40			—			40
Total revenues		221,385		84,931			—			306,316			—			306,316
Merchandise cost of goods sold		74,772		36,783			—			111,555			—			111,555
Jewelry scrapping cost of goods sold		13,235		3,074			—			16,309			—			16,309
Gross profit		133,378		45,074			—			178,452			—			178,452
Segment and corporate expenses (income):
Store expenses		83,532		32,995			—			116,527			—			116,527
General and administrative		—		—			—			—			19,640			19,640
Depreciation and amortization		2,682		1,989			—			4,671			3,349			8,020
Loss on sale or disposal of assets and other		17		—			—			17			—			17
Interest expense		—		—			—			—			3,281			3,281
Interest income		—		(337	)		(605	)		(942	)		(933	)		(1,875	)
Equity in net (income) loss of unconsolidated affiliates		—		—			(1,866	)		(1,866	)		361			(1,505	)
Other expense (income)		4		(137	)		—			(133	)		68			(65	)
Segment contribution	$	47,143	$	10,564		$	2,471		$	60,178
Income (loss) before income taxes									$	60,178		$	(25,766	)	$	34,412

	Three Months Ended March 31, 2024 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	114,849		$	49,838		$	—		$	164,687		$	—		$	164,687
Jewelry scrapping sales		12,686			1,028			—			13,714			—			13,714
Pawn service charges		80,010			27,153			—			107,163			—			107,163
Other revenues		29			15			31			75			—			75
Total revenues		207,574			78,034			31			285,639			—			285,639
Merchandise cost of goods sold		72,798			33,461			—			106,259			—			106,259
Jewelry scrapping cost of goods sold		10,794			994			—			11,788			—			11,788
Gross profit		123,982			43,579			31			167,592			—			167,592
Segment and corporate expenses (income):
Store expenses		80,840			33,742			—			114,582			—			114,582
General and administrative		—			—			—			—			18,266			18,266
Depreciation and amortization		2,516			2,392			—			4,908			3,311			8,219
(Gain) loss on sale or disposal of assets and other		(30	)		(66	)		—			(96	)		99			3
Other income		—			—			—			—			(765	)		(765	)
Interest expense		—			—			—			—			3,402			3,402
Interest income		—			(608	)		(633	)		(1,241	)		(1,641	)		(2,882	)
Equity in net income of unconsolidated affiliates		—			—			(1,719	)		(1,719	)		—			(1,719	)
Other expense (income)		—			1			14			15			(180	)		(165	)
Segment contribution	$	40,656		$	8,118		$	2,369		$	51,143
Income (loss) before income taxes										$	51,143		$	(22,492	)	$	28,651

	Six Months Ended March 31, 2025 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	245,715		$	110,095		$	—		$	355,810		$	—		$	355,810
Jewelry scrapping sales		32,396			5,274			—			37,670			—			37,670
Pawn service charges		175,424			57,499			—			232,923			—			232,923
Other revenues		51			32			—			83			—			83
Total revenues		453,586			172,900			—			626,486			—			626,486
Merchandise cost of goods sold		156,328			77,051			—			233,379			—			233,379
Jewelry scrapping cost of goods sold		25,203			4,048			—			29,251			—			29,251
Gross profit		272,055			91,801			—			363,856			—			363,856
Segment and corporate expenses (income):
Store expenses		166,621			66,357			—			232,978			—			232,978
General and administrative		—			—			—			—			38,309			38,309
Depreciation and amortization		5,399			4,035			—			9,434			6,921			16,355
Loss on sale or disposal of assets and other		17			8			—			25			—			25
Interest expense		—			—			—			—			6,428			6,428
Interest income		—			(539	)		(1,199	)		(1,738	)		(2,230	)		(3,968	)
Equity in net (income) loss of unconsolidated affiliates		—			—			(3,489	)		(3,489	)		509			(2,980	)
Other (income) loss		(7	)		(208	)		—			(215	)		1,128			913
Segment contribution		100,025			22,148		$	4,688		$	126,861
Income (loss) before income taxes										$	126,861		$	(51,065	)	$	75,796

	Six Months Ended March 31, 2024 (Unaudited)
(in thousands)	U.S. Pawn			Latin America Pawn			Other Investments			Total Segments			Corporate Items			Consolidated

Revenues:
Merchandise sales	$	240,362		$	103,728		$	—		$	344,090		$	—		$	344,090
Jewelry scrapping sales		25,501			2,295			—			27,796			—			27,796
Pawn service charges		159,083			54,529			—			213,612			—			213,612
Other revenues		66			31			35			132			—			132
Total revenues		425,012			160,583			35			585,630			—			585,630
Merchandise cost of goods sold		151,507			69,962			—			221,469			—			221,469
Jewelry scrapping cost of goods sold		22,078			1,918			—			23,996			—			23,996
Gross profit		251,427			88,703			35			340,165			—			340,165
Segment and corporate expenses (income):
Store expenses		158,095			67,042			—			225,137			—			225,137
General and administrative		—			—			—			—			34,809			34,809
Depreciation and amortization		5,140			4,731			—			9,871			6,913			16,784
(Gain) loss on sale or disposal of assets and other		(4	)		(262	)		—			(266	)		97			(169	)
Other income		—			—			—			—			(765	)		(765	)
Interest expense		—			—			—			—			6,842			6,842
Interest income		—			(1,028	)		(1,206	)		(2,234	)		(3,287	)		(5,521	)
Equity in net income of unconsolidated affiliates		—			—			(2,872	)		(2,872	)		—			(2,872	)
Other (income) expense		—			(47	)		15			(32	)		(404	)		(436	)
Segment contribution	$	88,196		$	18,267		$	4,098		$	110,561
Income (loss) before income taxes										$	110,561		$	(44,205	)	$	66,356

EZCORP, Inc. STORE COUNT ACTIVITY (Unaudited)

	Three Months Ended March 31, 2025
	U.S. Pawn		Latin America Pawn			Consolidated

As of December 31, 2024		542		741			1,283
New locations opened		—		9			9
Locations acquired		—		1			1
Locations combined or closed		—		(9	)		(9	)
As of March 31, 2025		542		742			1,284

	Three Months Ended March 31, 2024
	U.S. Pawn			Latin America Pawn			Consolidated

As of December 31, 2023		530			707			1,237
New locations opened		—			9			9
Locations acquired		6			—			6
Locations combined or closed		(1	)		(5	)		(6	)
As of March 31, 2024		535			711			1,246

	Six Months Ended March 31, 2025
	U.S. Pawn		Latin America Pawn			Consolidated

As of September 30, 2024		542		737			1,279
New locations opened		—		13			13
Locations acquired		—		1			1
Locations combined or closed		—		(9	)		(9	)
As of March 31, 2025		542		742			1,284

	Six Months Ended March 31, 2024
	U.S. Pawn			Latin America Pawn			Consolidated

As of September 30, 2023		529			702			1,231
New locations opened		—			14			14
Locations acquired		7			—			7
Locations combined or closed		(1	)		(5	)		(6	)
As of March 31, 2024		535			711			1,246

Non-GAAP Financial Information (Unaudited)
In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles (“GAAP”), we provide certain other non-GAAP financial information on a constant currency (“constant currency”) and adjusted basis. We use constant currency results to evaluate our Latin America Pawn operations, which are denominated primarily in Mexican pesos, Guatemalan quetzales and other Latin American currencies. We believe that presentation of constant currency and adjusted results is meaningful and useful in understanding the activities and business metrics of our operations and reflects an additional way of viewing aspects of our business that, when viewed with GAAP results, provides a more complete understanding of factors and trends affecting our business. We provide non-GAAP financial information for informational purposes and to enhance understanding of our GAAP consolidated financial statements. We use this non-GAAP financial information primarily to evaluate and compare operating results across accounting periods.

Readers should consider the information in addition to, but not instead of or superior to, our financial statements prepared in accordance with GAAP. This non-GAAP financial information may be determined or calculated differently by other companies, limiting the usefulness of those measures for comparative purposes.

Constant currency results reported herein are calculated by translating consolidated balance sheet and consolidated statement of operations items denominated in local currency to U.S. dollars using the exchange rate from the prior-year comparable period, as opposed to the current period, in order to exclude the effects of foreign currency rate fluctuations. In addition, we have an equity method investment that is denominated in Australian dollars and is translated into U.S. dollars. We used the end-of-period rate for balance sheet items and the average closing daily exchange rate on a monthly basis during the appropriate period for statement of operations items. The end-of-period and approximate average exchange rates for each applicable currency as compared to U.S. dollars as of and for the three and six months ended March 31, 2025 and 2024 were as follows:

	March 31,				Three Months Ended March 31,				Six Months Ended March 31,
	2025		2024		2025		2024		2025		2024

Mexican peso		20.4		16.6		20.4		17.0		20.3		17.3
Guatemalan quetzal		7.6		7.6		7.6		7.6		7.5		7.6
Honduran lempira		25.2		24.4		25.2		24.4		25.0		24.4
Australian dollar		1.6		1.5		1.6		1.5		1.6		1.5

Our statement of operations constant currency results reflect the monthly exchange rate fluctuations and so are not directly calculable from the above rates. Constant currency results, where presented, also exclude the foreign currency gain or loss.

Miscellaneous Non-GAAP Financial Measures

	Three Months Ended March 31,
(in millions)	2025			2024

Net income	$	25.4		$	21.5
Interest expense		3.3			3.4
Interest income		(1.9	)		(2.9	)
Income tax expense		9.0			7.2
Depreciation and amortization		8.0			8.2
EBITDA	$	43.8		$	37.4

	Total Revenues		Gross Profit		Income Before Tax		Tax Effect		Net Income		Diluted EPS		EBITDA

2025 Q2 Reported	$	306.3	$	178.5	$	34.4	$	9.0	$	25.4	$	0.33	$	43.8
FX Impact		—		—		0.1		—		0.1		—		0.1
Constant Currency		12.6		6.5		0.9		0.3		0.6		0.01		1.2
2025 Q2 Adjusted	$	318.9	$	185.0	$	35.4	$	9.3	$	26.1	$	0.34	$	45.1

	Total Revenues		Gross Profit		Income Before Tax			Tax Effect			Net Income			Diluted EPS			EBITDA

2024 Q2 Reported	$	285.6	$	167.6	$	28.7		$	7.2		$	21.5		$	0.29		$	37.4
Corporate Lease Termination		—		—		(0.8	)		(0.2	)		(0.6	)		(0.01	)		(0.8	)
FX Impact		—		—		0.1			—			0.1			—			0.1
2024 Q2 Adjusted	$	285.6	$	167.6	$	28.0		$	7.0		$	21.0		$	0.28		$	36.7

	Three Months Ended March 31, 2025					Six Months Ended March 31, 2025
(in millions)	U.S. Dollar Amount		Percentage Change YOY			U.S. Dollar Amount		Percentage Change YOY

Consolidated revenues	$	306.3		7	%	$	626.5		7	%
Currency exchange rate fluctuations		12.6					22.0
Constant currency consolidated revenues	$	318.9		12	%	$	648.5		11	%

Consolidated gross profit	$	178.5		6	%	$	363.9		7	%
Currency exchange rate fluctuations		6.5					11.3
Constant currency consolidated gross profit	$	185.0		10	%	$	375.2		10	%

Consolidated net inventory	$	207.8		27	%	$	207.8		27	%
Currency exchange rate fluctuations		8.7					8.7
Constant currency consolidated net inventory	$	216.5		32	%	$	216.5		32	%

Latin America Pawn gross profit	$	45.1		3	%	$	91.8		3	%
Currency exchange rate fluctuations		6.5					11.3
Constant currency Latin America Pawn gross profit	$	51.6		18	%	$	103.1		16	%

Latin America Pawn PLO	$	62.4		1	%	$	62.4		1	%
Currency exchange rate fluctuations		10.0					10.0
Constant currency Latin America Pawn PLO	$	72.4		17	%	$	72.4		17	%

Latin America Pawn PSC revenues	$	28.3		4	%	$	57.5		5	%
Currency exchange rate fluctuations		3.9					6.7
Constant currency Latin America Pawn PSC revenues	$	32.2		19	%	$	64.2		18	%

Latin America Pawn merchandise sales	$	52.6		5	%	$	110.1		6	%
Currency exchange rate fluctuations		7.9					14.5
Constant currency Latin America Pawn merchandise sales	$	60.5		21	%	$	124.6		20	%

Latin America Pawn segment profit before tax	$	10.6		30	%	$	22.2		21	%
Currency exchange rate fluctuations		1.0					2.0
Constant currency Latin America Pawn segment profit before tax	$	11.6		43	%	$	24.2		32	%

The MIL Network –

April 29, 2025

MIL-OSI Europe: Written question – Exclusion of the ceramics sector from cost offsets under the Emissions Trading System (ETS) and the single market distortions caused by the allocation of free allowances – E-001557/2025

Source: European Parliament

Question for written answer E-001557/2025
to the Commission
Rule 144
Roberto Vannacci (PfE)

The Italian[1] and European ceramics sectors are very energy-intensive and do not currently have technologically and economically feasible alternatives to natural gas.

Exports alone account for 82 % of the total turnover of the Italian ceramics industry, exposing this sector to competition from non-EU countries that have less restrictive environment- and climate-related regulations.

The current Emissions Trading System does not reflect the ceramic tile production process as a whole, as it allocates free allowances to this sector on the basis of just one product benchmark (‘spray-dried powders’). This state of affairs penalises plants which manufacture these powders themselves as it compels them to buy additional emission allowances, thereby driving up their costs and putting them at a disadvantage vis-a-vis third country exporters. Furthermore, the ETS does not account for energy that is generated by means of combined heat and power (CHP) systems, which are more efficient and produce fewer emissions.

While the Commission has determined that sectors like steel, paper and aluminium[2] can benefit from carbon emission (‘carbon leakage’) cost offsets, the ceramics industry has been excluded from this arrangement even though it has a high trade intensity (in excess of 40 %) and a carbon leakage indicator above the 0.2 threshold set by Directive 2003/87/EC.

In the light of the above:

1.Will the Commission revise the free allowance allocation system by taking the entire ceramics production cycle into account along with energy-efficient technologies like CHP systems?
2.Given the evolution of energy prices, will the Commission limit itself to applying the criteria laid down by Directive 2003/87/EC, thus allowing the ceramics sector to benefit from carbon emission cost offsets?

Submitted: 16.4.2025

[1] https://confindustriaceramica.it/w/riformare-il-sistema-ets.
[2] https://eur-lex.europa.eu/legal-content/IT/TXT/?uri=CELEX%3A52020XC0925%2801%29.

Last updated: 28 April 2025

MIL OSI Europe News –

April 29, 2025

MIL-OSI: Aktsiaselts Infortar 2024 audited Annual Report

Source: GlobeNewswire (MIL-OSI)

The Supervisory Board of Aktsiaselts Infortar approved the audited annual report for 2024 and will submit it to the Annual General Meeting for approval.

Major events

Maritime transport

In the summer, Infortar invested €110 million in acquiring Tallink Grupp (Tallink) shares, increasing its shareholding in Tallink to 68.5%.

The total number of passengers in 2024 reached 5.6 million. As of the end of the financial year, Tallink operated 14 vessels. Three vessels were chartered out during the year. The number of transported cargo units exceeded 303,000, and passenger vehicles transported totalled 777,000.

Energy

Infortar’s subsidiary, Elenger Grupp (Elenger), signed a €120 million agreement with the German energy conglomerate EWE AG to acquire EWE Group’s business operations in Poland. The transaction included natural gas assets, a distribution network in Western Poland, and all energy sales segments.

In 2024, Elenger sold a total of 18.4 TWh of energy (15.9 TWh in 2023). Sales in Estonia accounted for 16% of the total energy sales in 2024. The company’s market share in gas sales across the Finland-Baltic gas market for the year was 24.3%.

Real estate

Infortar’s real estate portfolio has expanded from 100,000 to 141,000 square meters over the past year. At the end of last year, the Rimi logistics centre in Saue received its occupancy permit. This summer, a new bridge in Pärnu will be completed, followed by the opening of Lasnamäe’s second DEPO store in Estonia next year. In early 2028, the Kangru-Saku section of the Rail Baltica main route will also be completed.

Key figures of financial year

Key figures	12 months 2024	12 months 2023
Sales revenue. m€	1 371.775	1 084.626
Gross profit. m€	128.628	149.473
EBITDA. m€	145.275	143.283
EBITDA margin (%)	10.6%	13.2%
Operating profit. EBIT. m€	77.024	123.628
Total profit(-loss). m€^1,2	193.670	293.830
EPS (euros)²	9.36	14.62
Total equity m€	1 166.221	820.210
Total liabilities m€³	1 223.287	441.160
Net debt m€⁴	1 055.708	354.045
Investment loans to EBITDA (ratio)⁵	3.0x	1.7x

^1.The 2024 financial year total profit includes a one-off revaluation of €94 million, mainly arising from the acquisition of Tallink. The 2023 financial year profit includes a one-off revaluation of €159 million, mainly arising from the acquisition of Gaso.

^2. In the Q4 and 12-month annual results reported on 25 February 2025, the consolidated total profit for the financial year was €173.351 million, and earnings per share (EPS) amounted to €8.46. Adjustments have been made in the audited figures, mainly related to the purchase price allocation of Tallink Grupp, resulting in an increase of €20.319 million in the total profit for the annual year and an increase of earnings per share (EPS) by 0.9 euros.

^3–4. The significant increase in liabilities and net debt is due to the consolidation of Tallink’s loans into Infortar’s financial statements in 2024.

^5. Infortar Group’s investment loans / EBITDA ratio. For 2024 Tallink’s 12-month EBITDA (€265.447 million) has been used for comparability purposes

Revenue

2024. financial year, the group´s consolidated sales revenue increased by €287.149 million reaching €1 371.775 million (compared to €1 084.626 million in 2023). A significant impact was made by the consolidation of Tallink Grupp’s results into Infortar’s consolidated financial statements starting from August 1, 2024.

EBITDA and Segment Reporting

Maritime transport Segment: The EBITDA for the maritime transport segment in 2024 financial year was €175.181 million (compared to €214.528 million in the 2023 financial year). In segment reporting 100% Tallink results are presented.

Tallink´s financial results were affected by difficult economic environment across all our home markets, and the lowest consumer confidence levels in a decade.

Energy Segment: The EBITDA for the energy segment of the 2024 financial year was €77.235 million (compared to €135.999 million in 2023). Warmer winter led to a decrease in sales volumes, which in turn impacted profitability in the fourth quarter.

Real Estate Segment: The profitability assessment considers the EBITDA of individual real estate companies. The EBITDA for the real estate segment of the 2024 financial year was €13.567 million (compared to €12.39 million in 2023). Three new buildings at Liivalaia 9, Tähesaju 9, and Tähesaju 11 were included in the accounting for the 2023 financial year.

Total Profit

The consolidated total profit for the 2024 financial year was €193.67 million (compared to €293.83 million in the 2023 financial year). One-off significant impacts included the effects related to the acquisition of Tallink in 2024 and Latvian gas distribution company Gaso in 2023. The consolidated operating profit for the 2024 financial year was €77.024 million (compared to €123.628 million in 2023).

Investments

Infortar entered the agricultural sector by acquiring one of Estonia’s largest dairy farms in Halinga and began constructing a biomethane plant next to the farm for local biomethane production. Infortar invested €110 million in purchasing Tallink shares, increasing its shareholding in Tallink to 68,5%.

Infortar subsidiary Elenger signed a €120 million agreement with the German energy group EWE AG to acquire EWE Group’s entire Polish business. The transaction includes the natural gas distribution network in Western Poland as well as all energy sales operations.

Financing

Loan and lease liabilities amounted to €1 223.287 million in 2024 financial year (compared to €441.16 million in 2023 financial year). Significant increase in the 2024 financial year is primarily due to the line-by-line consolidation of Tallink Grupp, which resulted in the full inclusion of Tallink’s liabilities among the group’s obligations.

Proportionally to the growth in assets, Infortar’s net debt increased by €701.663 million, reaching €1 055.708 million (compared to €354,045 million in 2023 financial year). The net debt to EBITDA ratio was 3.4.

Dividends

According to the dividend policy, the objective is to pay dividends of at least 1 euro per share per financial year. Dividend payments are made semi-annually. Infortar Group’s management proposes to pay a dividend of 3 euros per share for the 2024 financial year results.

Consolidated statement of profit or loss and other comprehensive income

(in thousands of EUR)	12 months 2024	12 months 2023
Revenue	1 371 775	1 084 626
Cost of goods (goods and services) sold	-1 243 034	-934 811
Write-down of receivables	-113	-342
Gross profit	128 628	149 473
Marketing expenses	-21 086	-1 620
General administrative expenses	-50 438	-22 085
Profit (loss) from biological assets	-139	0
Profit (loss) from the change in the fair value of the investment property	-949	-4 074
Profit (loss) from changes in the fair value of fixed assets	-8 691
Unsettled gain/loss on derivative financial instruments	26 672	1 969
Other operating revenue	4 682	2 523
Other operating expenses	-1 655	-2 558
Operating profit	77 024	123 628
Profit (loss) from investments accounted for by equity method	22 974	39 639
Financial income and expenses	13 392	0
Other financial investments	-50	-4
Interest expense	-38 274	-22 573
Interest income	4 979	2 765
Profit (loss) from changes in exchange rates	100	-173
Gain from bargain purchase	93 659	159 158
Total financial income and expenses	73 806	139 173
Profit before tax	173 804	302 440
Corporate income tax	19 866	-8 610
Profit for the financial year	193 670	293 830
including:
Profit attributable to the owners of the parent company	191 253	293 778
Profit attributable to non-controlling interest	2 417	52
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of post-employment benefit obligations	-141	-44
Items that may be subsequently reclassified to the income statement:
Revaluation of risk hedging instruments	-45 792	-58 189
Exchange rate differences attributable to foreign subsidiaries	53	-42
Total of other comprehensive income	-45 880	-58 275
Total income	147 790	235 555
including:
Comprehensive profit attributable to the owners of the parent company	145 514	235 503
Comprehensive profit attributable to non-controlling interest	2 417	52
Ordinary earnings per share (in euros per share)	9,36	14,62
Diluted earnings per share (in euros per share)	9,12	14,15

Consolidated statement of financial position

(in thousands of EUR)	31.12.24	31.12.23
Current assets
Cash and cash equivalents	167 579	87 115
Short-term derivatives	8 333	28 728
Settled derivative receivables	676	5 958
Other prepayments and receivables	155 351	162 575
Prepaid taxes	3 831	925
Trade and other receivables	38 517	20 185
Prepayments for inventories	2 498	3 493
Inventories	215 914	146 884
Biological assets	941	0
Total current assets	593 640	455 863
Non-current assets
Investments to associates	16 603	346 014
Long-term derivative instruments	3 214	1 125
Long-term loans and other receivables	35 163	9 072
Investment property	67 931	176 024
Property, plant and equipment	1 909 458	446 748
Intangible assets	38 874	14 366
Right-of-use assets	47 598	11 300
Biological assets	2 753	0
Total non-current assets	2 121 594	1 004 649
TOTAL ASSETS	2 715 234	1 460 512

(in thousands of EUR)	31.12.24	31.12.23
Current liabilities
Loan liabilities	497 162	184 259
Rental liabilities	9 020	1 766
Payables to suppliers	87 941	74 751
Tax obligations	49 354	32 822
Buyers’ advances	31 126	3 099
Settled derivatives	8 728	1 463
Other current liabilities	63 431	10 851
Short term derivatives	27 704	3 659
Total current liabilities	774 466	312 670
Non-current liabilities
Long-term provisions	9 946	8 399
Deferred taxes	2 816	33 233
Other long-term liabilities	43 209	30 679
Long-term derivatives	1 471	186
Loan-liabilities	676 670	246 410
Rental liabilities	40 435	8 725
Total non-current liabilities	774 547	327 632
TOTAL LIABILITIES	1 549 013	640 302

(in thousands of EUR)	31.12.24	31.12.23
Equity
Share capital	2 117	2 105
Own shares	-72	-95
Share premium	32 484	29 344
Reserve capital	212	205
Option reserve	6 223	3 864
Hedging reserve*	-21 674	24 118
Unrealised exchange rate differences	45	-39
Post-employment benefit obligation reserve	-185	-44
Retained earnings from previous periods	890 167	759 918
Total equity attributable to equity holders of the Parent	909 317	819 376
Minority interests	256 904	834
Total equity	1 166 221	820 210

TOTAL LIABILITIES AND EQUITY	2 715 234	1 460 512

Consolidated statement of cash flows

Cash flows from operating activities
(in thousands of EUR)	12 months 2024	12 months 2023
Profit for the financial year	193 670	293 830
Adjustments:
Depreciation, amortisation, and impairment of non-current assets	68 251	19 655
Change in the fair value of the investment property	-22 974	-39 639
Change in the value of derivatives	-1 483	54 122
Other financial income/expenses	-112 030	-161 965
Calculated interest expenses	38 274	22 573
Profit/loss from non-current assets sold	-955	-91
Income from grants recognised as revenue	-643	784
Corporate income tax expense	-19 866	8 610
Income tax paid	-10 551	-267
Change in receivables and prepayments related to operating activities	52 023	54 540
Change in inventories	-12 831	-61 914
Change in payables and prepayments relating to operating activities	-81 275	-406
Change in biological assets	-322	0
Total cash flows from operating activities	89 288	189 832

Cash flows from investing activities
Purchases of associates	0	-10 314
Purchases of subsidiaries	-111 684	-103 414
Received dividends	20 862	0
Given loans	1 918	6 652
Interest gain	4 953	2 691
Purchases Investment property	-10 352	-18 304
Purchases of property, plant and equipment	-27 835	-18 143
Proceeds from sale of property	1 561	-252
Total cash flows used in investing activities	-120 577	-141 084

Cash flows used in financing activities	12 months 2024	12 months 2023
Proceeds from targeted financing	225	0
Changes in overdraft	12 863	14 348
Proceeds from borrowings	358 731	287 606
Repayments of borrowings	-151 790	-312 846
Repayment of finance lease liabilities	-11 300	-2 233
Interest paid	-39 153	-22 224
Dividends paid	-60 997	-15 750
Gain from share emission	3 174	29 464
Total cash flows used in financing activities	111 753	-21 635

TOTAL NET CASH FLOW	80 464	27 113
Cash at the beginning of the year	87 115	60 002
Cash at the end of the period	167 579	87 115
Net (decrease)/increase in cash	80 464	27 113

The 2024 Annual Report of Aktsiaselts Infortar is attached to this notice and will be made available on the website Reports | Infortar.

Infortar operates in seven countries, the company’s main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47% stake in Tallink Grupp, a 100% stake in Elenger Grupp and a versatile and modern real estate portfolio of approx. 141,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, and other areas. A total of 110 companies belong to the Infortar group: 101 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,228 people.

Additional information:

Kadri Laanvee
Investor Relations Manager
Phone: +372 5156662
e-mail: kadri.laanvee@infortar.ee
www.infortar.ee/en/investor

Attachments

The MIL Network –

April 29, 2025

MIL-OSI: Citizens Community Bancorp, Inc. Reports First Quarter 2025 Earnings of $0.32 Per Share; Book Value Per Share Up 8% and Tangible Book Value Per Share Up 10% Since March 31, 2024, After Annual Dividend Payment of $0.36 Per Share

Source: GlobeNewswire (MIL-OSI)

EAU CLAIRE, Wis., April 28, 2025 (GLOBE NEWSWIRE) — Citizens Community Bancorp, Inc. (the “Company”) (Nasdaq: CZWI), the parent company of Citizens Community Federal N.A. (the “Bank” or “CCFBank”), today reported earnings of $3.2 million and earnings per diluted share of $0.32 for the first quarter ended March 31, 2025, compared to $2.7 million and earnings per diluted share of $0.27 for the fourth quarter ended December 31, 2024, and $4.1 million and $0.39 earnings per diluted share for the quarter ended March 31, 2024, respectively.

The Company’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) decrease in net interest income of $0.1 million as two fewer days in the quarter were largely offset by an increase in the net interest margin of 6 basis points; (2) a smaller negative provision for credit losses of $0.3 million compared to $0.5 million in the fourth quarter; (3) higher non-interest income of $0.6 million primarily due to $0.5 million higher gain on sale of loans and $0.3 million higher net gains on sale of equity securities in the first quarter of 2025; and (4) lower non-interest expense primarily due to lower compensation and related benefits of $0.2 million and lower losses on repossessed assets of $0.2 million.

Book value per share improved to $18.02 at March 31, 2025, compared to $17.94 at December 31, 2024, and $16.61 at March 31, 2024. Tangible book value per share (non-GAAP)¹ was $14.79 at March 31, 2025, compared to $14.69 at December 31, 2024, and a 10.1% increase from $13.43 at March 31, 2024. For the first quarter of 2025, tangible book value was positively impacted by (1) net income, (2) the impact of lower long-term interest rates which decreased the net unrealized loss on the available for sale securities portfolio, and (3) amortization of intangibles which were largely offset by the payment of the annual $0.36 per share dividend. Stockholders’ equity as a percentage of total assets was 10.12% at March 31, 2025, compared to 10.24% at December 31, 2024. Tangible common equity (“TCE”) as a percent of tangible assets (non-GAAP)¹ decreased modestly to 8.45% at March 31, 2025, compared to 8.54% at December 31, 2024, largely due to the payment of the dividend.

“I am pleased with results in a quarter that is seasonally the slowest for us because of winter. The balance sheet is well positioned for the remainder of 2025 with strong capital and liquidity positions, strong ACL reserves and credit metrics in our historical range. Our TCE at 8.5% provides a cushion for uncertainty like we have seen thus far in 2025 and for share repurchases. Our liquidity position, including the loan to deposit ratio below 90% is expected to support quality, well priced loan growth in the low to mid-single digit percentages with strategic, relationship borrowers. Our markets remain stable with unemployment below national averages and tariff exposure appears to be indirect should this risk persist. We believe loan repricing and originations will benefit our net-interest margin expansion, especially in the second half of 2025, and throughout 2026, as well as will the impact of deposit repricing,” stated Stephen Bianchi, Chairman, President, and Chief Executive Officer.

March 31, 2025, Highlights:

Quarterly earnings were $3.2 million, or $0.32 per diluted share for the quarter ended March 31, 2025, an increase compared to earnings of $2.7 million, or $0.27 per diluted share for the quarter ended December 31, 2024, and a decrease from $4.1 million, or $0.39 per diluted share for the quarter ended March 31, 2024.
Net interest income decreased $0.1 million to $11.6 million for the current quarter ended March 31, 2025, from $11.7 million for the quarter ended December 31, 2024, and from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income from the fourth quarter of 2024 was primarily due to two fewer days in the quarter which was mostly offset by an increase in net interest margin of six basis points.
The net interest margin increased to 2.85%, primarily due to lower deposit costs. The net interest margin increase in the first quarter of 2025 was negatively impacted by three basis points from lower deferred fee accretion compared to the fourth quarter of 2024 due to lower payoffs in the first quarter of 2025.
Negative provision for credit losses of $0.25 million, $0.45 million, and $0.80 million were recorded during the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The first quarter’s negative provision was due to decreases in on-balance sheet allowance for credit losses (“ACL”) of $0.35 million partially offset by a $0.10 million increase in off-balance sheet ACL due to an increase in unfunded loan commitments.
Non-interest income increased by $0.6 million in the first quarter of 2025 to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans, $0.3 million of higher net gains on equity securities partially offset by lower loan fees and service charges of $0.2 million due to lower customer activity. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.
Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the fourth quarter of 2024 and the first quarter of 2024. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets, partially offset by higher other expense. The $0.3 million decrease from the first quarter of 2024 was due to a $0.4 million decrease in other expenses resulting from lower SBA recourse reserve expense.
Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower activity.
Total deposits increased $35.5 million during the quarter ended March 31, 2025, to $1.524 billion. Total deposit growth reflected the seasonal growth in municipal deposits of $20.8 million, which typically decreases in the middle two quarters before increasing in the fourth quarter. Growth in retail and commercial areas was partially offset by the reduction of $6.3 million in wholesale deposits due to reduction in brokered deposits.
The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.
The effective tax rate was 19.6% for the quarter ended March 31, 2025, compared to 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.
Nonperforming assets increased $0.3 million during the quarter to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.
Special mention loans increased $6.5 million to $15.0 million at March 31, 2025, from $8.5 million in the previous quarter. The increase was largely due to one C&I relationship that showed weaker cash flow than expected.
The efficiency ratio was 73% for the quarter ended March 31, 2025, compared to 76% for the quarter ended December 31, 2024.

Balance Sheet and Asset Quality

Total assets increased by $31.4 million during the quarter to $1.780 billion at March 31, 2025.

Cash increased $50.0 million due to the growth in deposits and loan shrinkage growing our balances at the Federal Reserve.

Securities available for sale (“AFS”) decreased $3.2 million during the quarter ended March 31, 2025, to $139.6 million from $142.9 million at December 31, 2024. The decrease was due to principal repayments of $2.6 million, and a corporate debt security maturity of $2.5 million, partially offset by lower pre-tax unrealized losses of $1.9 million.

Securities held to maturity (“HTM”) decreased $1.2 million to $84.3 million during the quarter ended March 31, 2025, from $85.5 million at December 31, 2024, due to principal repayments.

The on-balance sheet liquidity ratio, which is defined as the fair market value of AFS and HTM securities that are not pledged and cash on deposit with other financial institutions, was 14.38% of total assets at March 31, 2025, compared to 11.75% at December 31, 2024. On-balance sheet liquidity collateralized new borrowing capacity and uncommitted federal funds borrowing availability was $852 million, or 314%, of uninsured and uncollateralized deposits at March 31, 2025, and $725 million, or 273%, at December 31, 2024.

Loans receivable decreased $16.3 million during the first quarter ended March 31, 2025, to $1.353 billion compared to the prior quarter end, largely due to the seasonal impact of lower origination and funding activity.

The office loan portfolio consisting of seventy-two loans totaled $28 million at March 31, 2025, compared to seventy-one loans totaling $28 million at December 31, 2024. Criticized loans in the office loan portfolio for the quarter ended March 31, 2025, totaled $0.5 million, the same amount at December 31, 2024, and there have been no charge-offs in the trailing twelve months.

The allowance for credit losses on loans decreased by $0.34 million to $20.2 million at March 31, 2025, representing 1.49% of total loans receivable compared to 1.50% of total loans receivable at December 31, 2024. For the quarter ended March 31, 2025, the Bank recorded a negative provision of $0.25 million which included a negative provision on ACL for loans of $0.35 million, partially offset by a provision of $0.10 million on ACL for unfunded commitments due to an increase in unfunded commitments. 30-89 day loan delinquencies decreased to 0.15% of total loans at March 31, 2025, compared to a 0.33% delinquency ratio at December 31, 2024. The Bank had $0.007 million of net recoveries in the first quarter.

Allowance for Credit Losses (“ACL”) – Loans Percentage

(in thousands, except ratios)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Loans, end of period	$	1,352,728		$	1,368,981		$	1,424,828		$	1,428,588
Allowance for credit losses – Loans	$	20,205		$	20,549		$	21,000		$	21,178
ACL – Loans as a percentage of loans, end of period		1.49	%		1.50	%		1.47	%		1.48	%

In addition to the ACL – Loans, the Company has established an ACL – Unfunded Commitments of $0.435 million at March 31, 2025, $0.334 million at December 31, 2024, and $0.975 million at March 31, 2024, classified in other liabilities on the consolidated balance sheets.

Allowance for Credit Losses – Unfunded Commitments:
(in thousands)

	March 31, 2025 and Three Months Ended		December 31, 2024 and Three Months Ended			March 31, 2024 and Three Months Ended
ACL – Unfunded commitments – beginning of period	$	334	$	460		$	1,250
(Reductions) additions to ACL – Unfunded commitments via provision for credit losses charged to operations		101		(126	)		(275	)
ACL – Unfunded commitments – end of period	$	435	$	334		$	975

Special mention loans increased by $6.5 million to $15.0 million at March 31, 2025, compared to $8.5 million at December 31, 2024. The increase was largely due to one C&I relationship as noted earlier.

Substandard loans increased by $0.7 million to $19.6 million at March 31, 2025, compared to $18.9 million at December 31, 2024.

Nonperforming assets increased modestly by $0.3 million to $14.5 million at March 31, 2025, compared to $14.2 million at December 31, 2024.

	(in thousands)
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Special mention loan balances	$	14,990	$	8,480	$	11,047	$	8,848	$	13,737
Substandard loan balances		19,591		18,891		21,202		14,420		14,733
Criticized loans, end of period	$	34,581	$	27,371	$	32,249	$	23,268	$	28,470

Deposit Portfolio Composition
(in thousands)

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Consumer deposits	$	861,746	$	852,083	$	844,808	$	822,665	$	827,290
Commercial deposits		423,654		412,355		406,095		395,148		400,910
Public deposits		211,261		190,460		176,844		187,698		202,175
Wholesale deposits		26,993		33,250		92,920		114,033		97,114
Total deposits	$	1,523,654	$	1,488,148	$	1,520,667	$	1,519,544	$	1,527,489

At March 31, 2025, the deposit portfolio composition was 56% consumer, 28% commercial, 14% public, and 2% wholesale deposits compared to 57% consumer, 28% commercial, 13% public, and 2% wholesale deposits at December 31, 2024.

Deposit Composition By Type
(in thousands)

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Non-interest-bearing demand deposits	$	253,343	$	252,656	$	256,840	$	255,703	$	248,537
Interest-bearing demand deposits		386,302		355,750		346,971		353,477		361,278
Savings accounts		167,614		159,821		169,096		170,946		177,595
Money market accounts		370,741		369,534		366,067		370,164		387,879
Certificate accounts		345,654		350,387		381,693		369,254		352,200
Total deposits	$	1,523,654	$	1,488,148	$	1,520,667	$	1,519,544		1,527,489

Uninsured and uncollateralized deposits were $271.7 million, or 18% of total deposits, at March 31, 2025, and $265.4 million, or 18% of total deposits, at December 31, 2024. Uninsured deposits alone at March 31, 2025, were $444.4 million, or 29% of total deposits, and $428.0 million, or 29% of total deposits at December 31, 2024.

The last remaining Federal Home Loan Bank advance was repaid in the quarter, resulting in no advances at March 31, 2025, down from $5.0 million at December 31, 2024, and $39.5 million one year earlier.

No common stock was repurchased in the first quarter of 2025. There are 238 thousand shares remaining available to repurchase under the July 2024 Board of Director repurchase authorization.

Review of Operations

Net interest income decreased $0.1 million for the quarter ended March 31, 2025, to $11.6 million from $11.7 million for the quarter ended December 31, 2024, and decreased $0.3 million from $11.9 million for the quarter ended March 31, 2024. The decrease in net interest income compared to the fourth quarter of 2024 was primarily due to two fewer days of interest income or approximately $0.2 million, the impact of smaller average assets of $0.2 million, offset by an increase in net interest margin of six basis points or $0.3 million. The net interest margin increase was negatively impacted by 3 basis points due to lower deferred fee accretion compared to the fourth quarter resulting from lower loan payoffs.

Net interest income and net interest margin analysis:
(in thousands, except yields and rates)

	Three months ended
	March 31, 2025					December 31, 2024					September 30, 2024					June 30, 2024					March 31, 2024
	Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin		Net Interest Income			Net Interest Margin
As reported	$	11,594		2.85	%	$	11,708		2.79	%	$	11,285		2.63	%	$	11,576		2.72	%	$	11,905		2.77	%
Less accretion for PCD loans		(36	)	(0.01)%			(42	)	(0.01)%			(45	)	(0.01)%			(62	)	(0.01)%			(75	)	(0.02)%
Less scheduled accretion interest		(33	)	(0.01)%			(33	)	(0.01)%			(33	)	(0.01)%			(32	)	(0.01)%			(33	)	(0.01)%
Without loan purchase accretion	$	11,525		2.83	%	$	11,633		2.77	%	$	11,207		2.61	%	$	11,482		2.70	%	$	11,797		2.74	%

The table below shows the impact of certificate, loan and securities contractual fixed rate maturing and repricing.

Portfolio Contractual Repricing:
(in millions, except yields)

	Q2 2025			Q3 2025			Q4 2025			Q1 2026			Q2 2026			Q3 2026			Q4 2026			FY 2027
Maturing Certificate Accounts:
Contractual Balance	$	174		$	101		$	28		$	23		$	8		$	—		$	—		$	8
Contractual Interest Rate		4.59	%		3.98	%		3.72	%		3.66	%		3.47	%		—	%		—	%		4.01	%
Maturing or Repricing Loans:
Contractual Balance	$	52		$	18		$	55		$	45		$	51		$	120		$	98		$	243
Contractual Interest Rate		6.62	%		6.14	%		4.64	%		4.53	%		4.18	%		3.61	%		3.72	%		4.66	%
Maturing or Repricing Securities:
Contractual Balance	$	5		$	3		$	4		$	2		$	7		$	7		$	3		$	6
Contractual Interest Rate		5.64	%		4.07	%		4.31	%		3.72	%		3.57	%		3.44	%		3.27	%		4.47	%

Non-interest income increased by $0.6 million in the first quarter of 2025, to $2.6 million from $2.0 million the prior quarter due to $0.5 million of higher gain on sale of loans and $0.3 million of higher net gains on equity securities. Total non-interest income for the quarter ended March 31, 2025, was $0.7 million lower than first quarter 2024 primarily due to lower gain on sale of loans and net realized gains on debt securities.

Non-interest expense decreased $0.3 million to $10.5 million from $10.8 million for both the previous quarter and the quarter one year earlier. The $0.3 million decrease in non-interest expense compared to the linked quarter was largely due to lower compensation due to lower incentive costs and lower losses on repossessed assets. The $0.3 million decrease from the first quarter of 2024 was largely due to a $0.4 million decrease in other expense due to lower SBA recourse reserve expense.

Provision for income taxes increased to $0.8 million in the first quarter of 2025, from $0.7 million in the fourth quarter of 2024, largely due to higher pre-tax income. The effective tax rate was 19.6% for the quarter ended March 31, 2025, 19.5% for the quarter ended December 31, 2024, and 21.3% for the quarter ended March 31, 2024.

These financial results are preliminary until the Form 10-Q is filed in May 2025.

About the Company

Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of the Bank, a national bank based in Altoona, Wisconsin, currently serving customers primarily in Wisconsin and Minnesota through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato markets in Minnesota, and various rural communities around these areas. The Bank offers traditional community banking services to businesses, ag operators and consumers, including residential mortgage loans.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified using forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “estimates,” “intend,” “may,” “on pace,” “preliminary,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of the Company and the Bank. These uncertainties include: conditions in the financial markets and economic conditions generally; the impact of inflation on our business and our customers; geopolitical tensions, including current or anticipated impact of military conflicts; higher lending risks associated with our commercial and agricultural banking activities; future pandemics (including new variants of COVID-19); cybersecurity risks; adverse impacts on the regional banking industry and the business environment in which it operates; interest rate risk; lending risk; changes in the fair value or ratings downgrades of our securities; the sufficiency of allowance for credit losses; competitive pressures among depository and other financial institutions; disintermediation risk; our ability to maintain our reputation; our ability to maintain or increase our market share; our ability to realize the benefits of net deferred tax assets; our ability to obtain needed liquidity; our ability to raise capital needed to fund growth or meet regulatory requirements; our ability to attract and retain key personnel; our ability to keep pace with technological change; prevalence of fraud and other financial crimes; the possibility that our internal controls and procedures could fail or be circumvented; our ability to successfully execute our acquisition growth strategy; risks posed by acquisitions and other expansion opportunities, including difficulties and delays in integrating the acquired business operations or fully realizing the cost savings and other benefits; restrictions on our ability to pay dividends; the potential volatility of our stock price; accounting standards for credit losses; legislative or regulatory changes or actions, or significant litigation, adversely affecting the Company or Bank; public company reporting obligations; changes in federal or state tax laws; and changes in accounting principles, policies or guidelines and their impact on financial performance. Stockholders, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on March 13, 2025 and the Company’s subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.

¹Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, such as net income as adjusted, net income as adjusted per share, tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on average tangible common equity, which management believes may be helpful in understanding the Company’s results of operations or financial position and comparing results over different periods.

Net income as adjusted and net income as adjusted per share are non-GAAP measures that eliminate the impact of certain expenses such as branch closure costs and related severance pay, accelerated depreciation expense and lease termination fees, and the gain on sale of branch deposits and fixed assets. Tangible book value, tangible book value per share, tangible common equity as a percentage of tangible assets and return on average tangible common equity are non-GAAP measures that eliminate the impact of goodwill and intangible assets on our financial position. Management believes these measures are useful in assessing the strength of our financial position.

Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.

Contact: Steve Bianchi, CEO
(715)-836-9994

(CZWI-ER)

CITIZENS COMMUNITY BANCORP, INC. Consolidated Balance Sheets (in thousands, except share data)

	March 31, 2025 (unaudited)			December 31, 2024 (audited)			September 30, 2024 (unaudited)			March 31, 2024 (unaudited)
Assets
Cash and cash equivalents	$	100,199		$	50,172		$	36,632		$	28,638
Securities available for sale “AFS”		139,642			142,851			149,432			151,672
Securities held to maturity “HTM”		84,301			85,504			87,033			89,942
Equity investments		5,462			4,702			5,096			3,281
Other investments		12,496			12,500			12,311			13,022
Loans receivable		1,352,728			1,368,981			1,424,828			1,450,159
Allowance for credit losses		(20,205	)		(20,549	)		(21,000	)		(22,436	)
Loans receivable, net		1,332,523			1,348,432			1,403,828			1,427,723
Loans held for sale		3,296			1,329			697			—
Mortgage servicing rights, net		3,583			3,663			3,696			3,774
Office properties and equipment, net		16,649			17,075			17,365			18,026
Accrued interest receivable		5,926			5,653			6,235			6,324
Intangible assets		800			979			1,158			1,515
Goodwill		31,498			31,498			31,498			31,498
Foreclosed and repossessed assets, net		876			915			1,572			1,845
Bank owned life insurance (“BOLI”)		26,296			26,102			25,901			25,836
Other assets		16,416			17,144			16,683			16,219
TOTAL ASSETS	$	1,779,963		$	1,748,519		$	1,799,137		$	1,819,315
Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	1,523,654		$	1,488,148		$	1,520,667		$	1,527,489
Federal Home Loan Bank (“FHLB”) advances		—			5,000			21,000			39,500
Other borrowings		61,664			61,606			61,548			67,523
Other liabilities		14,594			14,681			15,773			11,982
Total liabilities		1,599,912			1,569,435			1,618,988			1,646,494
Stockholders’ Equity:
Common stock— $0.01 par value, authorized 30,000,000; 9,989,536, 9,981,996, 10,074,136, and 10,406,880 shares issued and outstanding, respectively		100			100			101			104
Additional paid-in capital		114,477			114,564			115,455			118,916
Retained earnings		80,439			80,840			78,438			71,831
Accumulated other comprehensive loss		(14,965	)		(16,420	)		(13,845	)		(18,030	)
Total stockholders’ equity		180,051			179,084			180,149			172,821
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,779,963		$	1,748,519		$	1,799,137		$	1,819,315

Note: Certain items previously reported were reclassified for consistency with the current presentation.

CITIZENS COMMUNITY BANCORP, INC. Consolidated Statements of Operations (in thousands, except per share data)

	Three Months Ended
	March 31, 2025 (unaudited)			December 31, 2024 (unaudited)			March 31, 2024 (unaudited)
Interest and dividend income:
Interest and fees on loans	$	18,602		$	19,534		$	20,168
Interest on investments		2,501			2,427			2,511
Total interest and dividend income		21,103			21,961			22,679
Interest expense:
Interest on deposits		8,597			9,273			9,209
Interest on FHLB borrowed funds		11			65			512
Interest on other borrowed funds		901			915			1,053
Total interest expense		9,509			10,253			10,774
Net interest income before provision for credit losses		11,594			11,708			11,905
(Negative) provision for credit losses		(250	)		(450	)		(800	)
Net interest income after provision for credit losses		11,844			12,158			12,705
Non-interest income:
Service charges on deposit accounts		423			450			471
Interchange income		518			550			541
Loan servicing income		559			520			582
Gain on sale of loans		720			218			1,020
Loan fees and service charges		120			292			230
Net realized gains on debt securities		—			—			—
Net gains (losses) on equity securities		10			(287	)		167
Other		243			266			253
Total non-interest income		2,593			2,009			3,264
Non-interest expense:
Compensation and related benefits		5,597			5,840			5,483
Occupancy		1,287			1,217			1,367
Data processing		1,719			1,743			1,597
Amortization of intangible assets		179			179			179
Mortgage servicing rights expense, net		140			107			148
Advertising, marketing and public relations		167			218			164
FDIC premium assessment		198			192			205
Professional services		508			514			566
Losses on repossessed assets, net		4			247			—
Other		664			552			1,068
Total non-interest expense		10,463			10,809			10,777
Income before provision for income taxes		3,974			3,358			5,192
Provision for income taxes		777			656			1,104
Net income attributable to common stockholders	$	3,197		$	2,702		$	4,088
Per share information:
Basic earnings	$	0.32		$	0.27		$	0.39
Diluted earnings	$	0.32		$	0.27		$	0.39
Cash dividends paid	$	0.36		$	—		$	0.32
Book value per share at end of period	$	18.02		$	17.94		$	16.61
Tangible book value per share at end of period (non-GAAP)	$	14.79		$	14.69		$	13.43

Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

(in thousands, except per share data)

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024

GAAP pretax income	$	3,974	$	3,358	$	5,192
Branch closure costs (1)		—		—		—
Pretax income as adjusted (2)	$	3,974	$	3,358	$	5,192
Provision for income tax on net income as adjusted (3)		777		656		1,104
Net income as adjusted (non-GAAP) (2)	$	3,197	$	2,702	$	4,088
GAAP diluted earnings per share, net of tax	$	0.32	$	0.27	$	0.39
Branch closure costs, net of tax		—		—		—
Diluted earnings per share, as adjusted, net of tax (non-GAAP)	$	0.32	$	0.27	$	0.39

Average diluted shares outstanding		10,000,818		10,033,957		10,443,267

(1) Branch closure costs include severance pay recorded in compensation and benefits and depreciation and right of use lease asset accelerated expense included in other non-interest expense in the consolidated statement of operations.
(2) Pretax income as adjusted and net income as adjusted are non-GAAP measures that management believes enhances the market’s ability to assess the underlying business performance and trends related to core business activities.
(3) Provision for income tax on net income as adjusted is calculated at our effective tax rate for each respective period presented.

Loan Composition

(in thousands)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total Loans:
Commercial/Agricultural real estate:
Commercial real estate	$	709,975		$	709,018		$	730,459		$	729,236
Agricultural real estate		71,071			73,130			76,043			78,248
Multi-family real estate		237,872			220,805			239,191			234,758
Construction and land development		58,461			78,489			87,875			87,898
C&I/Agricultural operating:
Commercial and industrial		109,620			115,657			119,619			127,386
Agricultural operating		29,310			31,000			27,550			27,409
Residential mortgage:
Residential mortgage		129,070			132,341			134,944			133,503
Purchased HELOC loans		2,560			2,956			2,932			2,915
Consumer installment:
Originated indirect paper		3,434			3,970			4,405			5,110
Other consumer		4,679			5,012			5,438			5,860
Gross loans	$	1,356,052		$	1,372,378		$	1,428,456		$	1,432,323
Unearned net deferred fees and costs and loans in process		(2,542	)		(2,547	)		(2,703	)		(2,733	)
Unamortized discount on acquired loans		(782	)		(850	)		(925	)		(1,002	)
Total loans receivable	$	1,352,728		$	1,368,981		$	1,424,828		$	1,428,588

Nonperforming Assets
Loan Balances at Amortized Cost

(in thousands, except ratios)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Nonperforming assets:
Nonaccrual loans
Commercial real estate	$	4,948		$	4,594		$	4,778		$	5,350
Agricultural real estate		5,934			6,222			6,193			382
Construction and land development		—			103			106			—
Commercial and industrial (“C&I”)		701			597			1,956			422
Agricultural operating		725			793			901			1,017
Residential mortgage		782			858			1,088			1,145
Consumer installment		1			1			20			36
Total nonaccrual loans	$	13,091		$	13,168		$	15,042		$	8,352
Accruing loans past due 90 days or more		568			186			530			256
Total nonperforming loans (“NPLs”) at amortized cost		13,659			13,354			15,572			8,608
Foreclosed and repossessed assets, net		876			915			1,572			1,662
Total nonperforming assets (“NPAs”)	$	14,535		$	14,269		$	17,144		$	10,270
Loans, end of period	$	1,352,728		$	1,368,981		$	1,424,828		$	1,428,588
Total assets, end of period	$	1,779,963		$	1,748,519		$	1,799,137		$	1,802,307
Ratios:
NPLs to total loans		1.01	%		0.98	%		1.09	%		0.60	%
NPAs to total assets		0.82	%		0.82	%		0.95	%		0.57	%

Average Balances, Interest Yields and Rates

(in thousands, except yields and rates)

	Three Months Ended March 31, 2025						Three Months Ended December 31, 2024						Three Months Ended March 31, 2024
	Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate		Average Balance		Interest Income/ Expense		Average Yield/ Rate
Average interest earning assets:
Cash and cash equivalents	$	47,835	$	524	4.44	%	$	26,197	$	327	4.97	%	$	13,071	$	191	5.88	%
Loans receivable		1,363,352		18,602	5.53	%		1,396,854		19,534	5.56	%		1,456,586		20,168	5.57	%
Investment securities		228,514		1,808	3.21	%		235,268		1,940	3.28	%		243,991		2,060	3.40	%
Other investments		12,498		169	5.48	%		12,318		160	5.17	%		13,350		260	7.83	%
Total interest earning assets	$	1,652,199	$	21,103	5.18	%	$	1,670,637	$	21,961	5.23	%	$	1,726,998	$	22,679	5.28	%
Average interest-bearing liabilities:
Savings accounts	$	167,001	$	407	0.99	%	$	162,501	$	383	0.94	%	$	176,838	$	421	0.96	%
Demand deposits		382,355		2,033	2.16	%		346,411		1,891	2.17	%		353,995		2,017	2.29	%
Money market accounts		365,528		2,535	2.81	%		351,566		2,720	3.08	%		377,475		2,920	3.11	%
CD’s		343,751		3,622	4.27	%		374,087		4,279	4.55	%		360,177		3,851	4.30	%
Total deposits	$	1,258,635	$	8,597	2.77	%	$	1,234,565	$	9,273	2.99	%	$	1,268,485	$	9,209	2.92	%
FHLB advances and other borrowings		64,635		912	5.72	%		72,431		980	5.38	%		124,701		1,565	5.05	%
Total interest-bearing liabilities	$	1,323,270	$	9,509	2.91	%	$	1,306,996	$	10,253	3.12	%	$	1,393,186	$	10,774	3.11	%
Net interest income			$	11,594					$	11,708					$	11,905
Interest rate spread					2.27	%					2.11	%					2.17	%
Net interest margin					2.85	%					2.79	%					2.77	%
Average interest earning assets to average interest-bearing liabilities					1.25						1.28						1.24

Wholesale Deposits
(in thousands)

	Quarter Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Brokered certificate accounts	$	5,489	$	14,123	$	48,578	$	54,123	$	43,507
Brokered money market accounts		5,053		5,002		18,076		42,673		40,429
Third party originated reciprocal deposits		16,451		14,125		26,266		17,237		13,178
Total	$	26,993	$	33,250	$	92,920	$	114,033	$	97,114

Key Financial Metric Ratios:

	Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
Ratios based on net income:
Return on average assets (annualized)	0.74	%	0.61	%	0.90	%
Return on average equity (annualized)	7.26	%	6.00	%	9.57	%
Return on average tangible common equity⁴(annualized)	9.28	%	7.72	%	12.26	%
Efficiency ratio	73	%	76	%	71	%
Net interest margin with loan purchase accretion	2.85	%	2.79	%	2.77	%
Net interest margin without loan purchase accretion	2.83	%	2.77	%	2.74	%
Ratios based on net income as adjusted (non-GAAP)
Return on average assets as adjusted²(annualized)	0.74	%	0.61	%	0.90	%
Return on average equity as adjusted³(annualized)	7.26	%	6.00	%	9.57	%

Reconciliation of Return on Average Assets

(in thousands, except ratios)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024

GAAP earnings after income taxes	$	3,197		$	2,702		$	4,088
Net income as adjusted after income taxes (non-GAAP) (1)	$	3,197		$	2,702		$	4,088
Average assets	$	1,763,191		$	1,771,351		$	1,834,152
Return on average assets (annualized)		0.74	%		0.61	%		0.90	%
Return on average assets as adjusted (non-GAAP) (annualized)		0.74	%		0.61	%		0.90	%

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

Reconciliation of Return on Average Equity

(in thousands, except ratios)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
GAAP earnings after income taxes	$	3,197		$	2,702		$	4,088
Net income as adjusted after income taxes (non-GAAP) (1)	$	3,197		$	2,702		$	4,088
Average equity	$	178,470		$	179,242		$	171,794
Return on average equity (annualized)		7.26	%		6.00	%		9.57	%
Return on average equity as adjusted (non-GAAP) (annualized)		7.26	%		6.00	%		9.57	%

(1) See Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)

Reconciliation of Return on Average Tangible Common Equity (non-GAAP)

(in thousands, except ratios)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Total stockholders’ equity	$	180,051		$	179,084		$	172,821
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)
Less: Intangible assets		(800	)		(979	)		(1,515	)
Tangible common equity (non-GAAP)	$	147,753		$	146,607		$	139,808
Average tangible common equity (non-GAAP)	$	146,083		$	146,676		$	138,692
GAAP earnings after income taxes		3,197			2,702			4,088
Amortization of intangible assets, net of tax		144			144			141
Tangible net income	$	3,341		$	2,846		$	4,229
Return on average tangible common equity (annualized)		9.28	%		7.72	%		12.26	%

Reconciliation of Efficiency Ratio

(in thousands, except ratios)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Non-interest expense (GAAP)	$	10,463		$	10,809		$	10,777
Less amortization of intangibles		(179	)		(179	)		(179	)
Efficiency ratio numerator (GAAP)	$	10,284		$	10,630		$	10,598

Non-interest income	$	2,593		$	2,009		$	3,264
Add back net losses on debt and equity securities		—			(287	)		—
Subtract net gains on debt and equity securities		10			—			167
Net interest income		11,594			11,708			11,905
Efficiency ratio denominator (GAAP)	$	14,177		$	14,004		$	15,002
Efficiency ratio (GAAP)		73	%		76	%		71	%

Reconciliation of tangible book value per share (non-GAAP)

(in thousands, except per share data)

Tangible book value per share at end of period	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total stockholders’ equity	$	180,051		$	179,084		$	180,149		$	176,045		$	172,821
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)		(31,498	)		(31,498	)
Less: Intangible assets		(800	)		(979	)		(1,158	)		(1,336	)		(1,515	)
Tangible common equity (non-GAAP)	$	147,753		$	146,607		$	147,493		$	143,211		$	139,808
Ending common shares outstanding		9,989,536			9,981,996			10,074,136			10,297,341			10,406,880
Book value per share	$	18.02		$	17.94		$	17.88		$	17.10		$	16.61
Tangible book value per share (non-GAAP)	$	14.79		$	14.69		$	14.64		$	13.91		$	13.43

Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)

(in thousands, except ratios)

Tangible common equity as a percent of tangible assets at end of period	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total stockholders’ equity	$	180,051		$	179,084		$	180,149		$	176,045		$	172,821
Less: Goodwill		(31,498	)	$	(31,498	)	$	(31,498	)	$	(31,498	)		(31,498	)
Less: Intangible assets		(800	)	$	(979	)	$	(1,158	)	$	(1,336	)		(1,515	)
Tangible common equity (non-GAAP)	$	147,753		$	146,607		$	147,493		$	143,211		$	139,808
Total Assets	$	1,779,963		$	1,748,519		$	1,799,137		$	1,802,307		$	1,819,315
Less: Goodwill		(31,498	)		(31,498	)		(31,498	)		(31,498	)		(31,498	)
Less: Intangible assets		(800	)		(979	)		(1,158	)		(1,336	)		(1,515	)
Tangible Assets (non-GAAP)	$	1,747,665		$	1,716,042		$	1,766,481		$	1,769,473		$	1,786,302
Total stockholders’ equity to total assets ratio		10.12	%		10.24	%		10.01	%		9.77	%		9.50	%
Tangible common equity as a percent of tangible assets (non-GAAP)		8.45	%		8.54	%		8.35	%		8.09	%		7.83	%

¹Net income as adjusted and net income as adjusted per share are non-GAAP financial measures that management believes enhances investors’ ability to understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of GAAP Net Income and Net Income as Adjusted (non-GAAP)”.

²Return on average assets as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average assets. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Assets as Adjusted (non-GAAP)”.

³Return on average equity as adjusted is a non-GAAP measure that management believes enhances investors’ ability to understand the underlying business performance and trends relative to average equity. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of Return on Average Equity as Adjusted (non-GAAP)”.

⁴Tangible book value, tangible book value per share, tangible common equity as a percent of tangible assets and return on tangible common equity are non-GAAP measures that management believes enhances investors’ ability to understand the Company’s financial position. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table “Reconciliation of tangible book value per share (non-GAAP)”, “Reconciliation of tangible common equity as a percent of tangible assets (non-GAAP)”, and “Reconciliation of return on average tangible common equity)”.

The MIL Network –

April 29, 2025

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