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Category: Europe

  • MIL-Evening Report: UK bans Gaza protest group – could the same thing happen in Australia?

    Source: The Conversation (Au and NZ) – By Shannon Bosch, Associate Professor (Law), Edith Cowan University

    More than 100 people were arrested in the United Kingdom on the weekend for supporting Palestine Action, a protest group that opposes Britain’s support of Israel.

    Palestine Action was recently proscribed as a terrorist organisation, placing it in the same category as Hamas, al-Qaeda and Islamic State.

    Many of those arrested were simply holding signs that read: “I oppose genocide, I support Palestine Action”. They were predominantly aged over 60.

    In recent weeks, an 83-year-old vicar, a former government lawyer and various pensioners have been taken into custody and could be jailed for up to 14 years if found guilty of belonging to the protest group.

    Simply holding a sign or wearing a T-shirt with the words “Palestine Action” could be punishable with a six-month jail term.

    The protesters say they refuse to be silenced:

    If we cannot speak freely about the genocide that is occurring […], if we cannot condemn those who are complicit in it […] then the right to freedom of expression has no meaning, and democracy and human rights in this country are dead.

    Police arresting protestors calling for the terrorism ban to be overturned.

    So what is Palestine Acton and why is “middle England” up in arms over its designation as a terrorist group?

    Activist network

    Palestine Action is a UK-based activist network founded in 2020 with the stated aim of “ending global participation in Israel’s genocidal and apartheid regime”.

    The group views the British government as complicit in Israeli war crimes in Gaza. It also aspires to halt UK arms exports through disruptive protests and vandalism.

    Members have generally targeted Israeli-linked businesses, such as defence company Elbit Systems, by damaging equipment or blocking entrances.

    Supporters include grassroots activists, civil liberties advocates, health professionals, clergy and prominent figures such as Pink Floyd musician Roger Waters.

    Serious concerns

    Palestine Action was officially proscribed in the UK on July 5, after campaigners sprayed paint into the engines of two Voyager aircraft at an air force base.

    The final vote was overwhelming: 385 MPs supported the ban, while just 26 opposed it.

    Under the Terrorism Act 2000, membership, support, or public endorsement of a proscribed group is a criminal offence punishable by sentences up to 14 years.

    The UK government argues the group’s actions exceeded legal protest and raised serious security concerns.

    Since then, scores of people have been searched and arrested at rallies in support of Palestine Acton.

    Blurring the lines

    Critics, including Amnesty International, civil liberties groups and The Guardian editorial board warn the ban blurs the line between non-violent civil disobedience and terrorism. They argue it also threatens democratic dissent through a statutory abuse of power.

    Counter-terrorism laws permit extraordinary interference in due process and other fundamental human rights protections. Consequently, they must always be used with the highest degree of restraint.

    The UK already had legislation in place to deal with criminal damage and violent disorder.

    United Nations legal and human rights experts have spoken out against treating the actions of protesters who damage property without the intent to injure people as terrorism:

    According to international standards, acts of protest that damage property, but are not intended to kill or injure people, should not be treated as terrorism.

    Abuse of power

    Designating Palestine Action as a terrorist organisation appears to be aimed at curtailing free expression, the assembly and association of those who support the protest action against Israel’s war on Gaza.

    Placing it in the same legal category as Hamas seems designed to reduce public sympathy for the group.

    Palestine Action is challenging its proscription in the UK High Court. Lawyers for the group argue the Joint Terrorism Analysis Centre has assessed the vast majority of its activities to be lawful:

    On nature and scale, the home secretary [Yvette Cooper] accepts that only three of Palestine Action’s at least 385 actions would meet the statutory definition of terrorism […] itself a dubious assessment.

    The lawyers further argue proscription was “repugnant” and an “authoritarian abuse of power”.

    Australian version?

    There are no indications from the intelligence community that any direct affiliate of Palestine Action (UK) operates in Australia.

    However, there are pro-Palestinian activist organisations, including a Palestine Action Group Sydney, which is part of the Australian Palestine Advocacy Network (APAN).

    Broader solidarity movements such as Students for Palestine, are active in protests on university campuses and against arms shipments to Israel.

    Domestic terrorism powers

    Traditional boundaries between “activism”, “extremism”, “hate-crime” and “terrorism” are rapidly blurring in Australia.

    The attorney general may list (“proscription” is a UK term) any organisation as a “terrorist organisation” if they are satisfied it is “advocating terrorism”. This would mean criminalising the expression of support, instruction, or praise of terrorist acts or offences.

    The latest addition to the 31-member list is Terrorgram, an online terrorism advocacy chatroom.

    Australia’s extensive definition of “terrorist act”, currently under review, expressly excludes

    advocacy, protest, dissent or industrial action and which is not intended to cause serious or life-endangering harm or death or to create a serious risk to the safety or health of the public.

    This suggests an Australian version of a Palestine Action undertaking similar conduct to its UK cousin would not meet the legal threshold for listing.

    However, the recent Terrorgram listing makes reference to advocacy for “attacks on minority groups, critical infrastructure and specific individuals”.

    This suggests the UK and Australian governments are becoming more aligned in interpreting “violent” protest to include violence against property, rather than just against people.

    Short of listing, a significant suite of investigative, coercive and preventative executive exists that could be deployed if a similar organisation appears in Australia.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. UK bans Gaza protest group – could the same thing happen in Australia? – https://theconversation.com/uk-bans-gaza-protest-group-could-the-same-thing-happen-in-australia-261562

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Europe: Ministers Burke and Dillon Initiate Public Consultation on Review of Employment Permit Occupations lists

    Source: Government of Ireland – Department of Jobs Enterprise and Innovation

    23rd July 2025

    Peter Burke, Minister for Enterprise, Tourism and Employment, and Alan Dillon, Minister of State for Small Business, Retail and Employment, have today announced the opening of the consultation period inviting submissions from stakeholders on the status of occupations on the employment permits Occupations Lists. The Lists are used to administer Ireland’s employment permits policy. They consist of the Ineligible Occupations List – occupations for which there is an adequate supply of labour and skills with Ireland and the EEA, and for which an employment permit will not be issued, and the Critical Skills Occupations List – occupations in short supply in Ireland and across the EEA.

    The last review of the occupations lists took place in 2023, and resulted in 11 additional roles being placed on the Critical Skills Occupations List, and 32 roles being made eligible for a General Employment Permit. 

    Minister Burke said:

    “I am delighted to launch this next review of the eligible occupations for employment permits. At a time of full employment, with over 2.81 million people at work, and with 90,000 new jobs created in the last year, it is vital that we continue to have a strong and flexible employment permits system to allow non-EEA nationals to fill the skill and labour gaps we cannot access in Ireland or Europe and to ensure our economy remains competitive. 

    “As demonstrated by the changes made to the employment permit system over the last year, the system is responsive to the needs of the sectors and industries it serves. This full review will allow us to ensure the system remains up-to-date in a way that serves both workers and employers.”

    Minister Dillon added:

    “Our economic migration policy accommodates the arrival of non-EEA nationals to fill skills and labour gaps in the domestic economy in the short to medium term. These workers are a vital part of the Irish economy. My Department’s reviews of the system promote an integrated approach to address these labour market deficiencies in the longer term and ensure we can continue to meet our labour needs.

    “Where employers or stakeholders are facing challenges in recruiting a specific occupation and believe it should be eligible for an employment permit, or believe a certain occupation should move onto the critical skills list, now is their opportunity to share this feedback.

    “With the consultation running over the summer period, there is plenty of time for interested employers and sectors who use the employment permits system to provide their feedback. Employer’s observations are vital in helping inform the department on how the list system is operating and where it can be improved.”

    The submission process is an opportunity for stakeholders to provide additional information and potentially different perspectives on the nature and extent of skill shortages.  

    Submissions will be accepted through the online consultation form made available on the Department’s website and will be open from 23 July to 19 September.

    Notes for Editor

    Background

    The Employment Permits System

    The Irish State’s general policy is to promote the sourcing of labour and skills needs from within the workforce of Ireland, the European Union and other EEA states. Policy in relation to applications for employment permits remains focused on facilitating the recruitment from outside the EEA of highly skilled personnel, where the requisite skills cannot be met by normal recruitment or by training.  Employment permit policy is part of the response to addressing skills deficits which exist and are likely to continue into the medium term, but it is not intended over the longer term to act as a substitute for meeting the challenge of up-skilling the State’s resident workforce, with an emphasis on the process of lifelong learning, and on maximising the potential of EEA nationals to fill our skills deficits.

    The Occupations Lists

    The Employment Permits system is designed to attract highly skilled workers from outside the EEA to Ireland, to meet skills demand in the economy where those skills can’t be accessed through the resident labour force.  For the purposes of the employment permits system, occupations fall into three categories:

    • Occupations listed on the Critical Skills Occupations List are highly skilled professional roles that are in high demand and are not always available in the resident labour force.  Occupations on this list are eligible for a Critical Skills Employment Permit (CSEP) and include roles such as medicine, ICT, sciences, finance and business.  Special “fast-track” conditions attach to this permit type including the eligibility to apply to the Department of Justice for family members to accompany the permit holder immediately; and after two years may apply to the Department of Justice for permission to work without the requirement for an employment permit. 
    • Ineligible occupations are those with evidence suggesting there are sufficient Irish/EEA workers to fill such vacancies. Employment permits are not granted for these occupations.
    • Every other job in the labour market, where an employer cannot find a worker, is eligible for an employment permit.  For General Employment Permits, Seasonal Employment Permits and Contract for Services Employment Permits the employer is required to undertake a Labour Market Needs Test. If no-one suitable applies for the job, the employer is free to apply for an employment permit. Occupations such as these may be skills of a more general nature and are typically eligible for a General Employment Permit (GEP).  This permit type is renewable and after five years the applicant may apply to the Department of Justice for long term residency permission.  

    The Critical Skills and Ineligible Occupations Lists Review

    It is vital that the employment permits scheme is responsive to changes in economic circumstances and labour market conditions. Therefore, it is necessary to review the Critical Skills and Ineligible Occupations Lists periodically, in accordance with the changing needs of the labour market. 

    The review process utilises research undertaken by the Expert Group on Future Skills Needs (EGFSN) and other experts in the labour market, including the Skills and Labour Market Research Unit (SLMRU) at SOLAS. The Department also invites submissions from industry representatives, other Government Departments and any other stakeholders who might have a case to make, via a periodic open consultation on the Department’s website. The Department also seeks the observations of the Inter-Departmental Group which oversees the review process.

    An occupation may be considered for inclusion on the critical skills occupation list or removal from the ineligible lists provided that:

    • shortage exists across the occupation, despite attempts by industry to train and there are no suitable Irish/EEA nationals available to undertake the work;
    • development opportunities for Irish/EEA nationals are not undermined;
    • genuine skills shortage exists and that it is not a recruitment or retention problem; and
    • the Government education, training, employment and economic development policies are supported.

    Submission process

    As part of this review process, submissions are sought from employers, representative bodies, Government Departments, Agencies, and other interested parties relating to occupations currently included on or absent from the lists.

    The submission process is an opportunity for stakeholders to provide additional information and potentially different perspectives on the nature and extent of skill shortages.  Stakeholder submissions are a vital source of information, helping inform the Department’s final assessment of the status of occupations. 

    ENDS

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    MIL OSI Europe News –

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

    US Senate News:

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

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Cutting-edge personalised treatments, made while you wait, will deliver specialised care to patients more quickly

    Source: United Kingdom – Government Statements

    Press release

    Cutting-edge personalised treatments, made while you wait, will deliver specialised care to patients more quickly

    New regulations effective today will make it faster and easier for cutting-edge cancer treatments and personalised gene therapies to be made right where patients are treated.

    Patients will receive faster access to life-saving, personalised treatments made at their hospital, clinic or near their homes instead of waiting weeks for therapies manufactured hundreds of miles away, under new UK legislation that comes into force today (23 July).

    This world first regulations, introduced by the Medicines and Healthcare products Regulatory Agency (MHRA), allows breakthrough personalised medicines to be prepared in small or individual batches – bringing care closer to the patient.

    A cancer patient could now have their immune cells collected, modified to fight their specific cancer, and returned within days rather than months. A child with a rare genetic disorder could receive a freshly prepared therapy with only minutes of shelf life, made and given on the spot.

    The change will cut waiting times where every hour counts, help free up NHS beds, and improve access to innovative therapies that were previously out of reach.

    Health and Social Care Secretary Wes Streeting said:

    “This world-first legislation is a game-changer for patients. Cancer treatments tailored in days, not months. Life-saving therapies made at your bedside, not hundreds of miles away.

    “Our Plan for Change promised to build an NHS fit for the future. Today we’re delivering on that pledge by bringing cutting-edge care directly to patients when they need it most.

    “We are turning around our NHS with waiting lists at their lowest for two years – this type of therapy means patients can be treated and return home more quickly.”

    Science Minister Lord Vallance said:

    “This world-first framework gives the NHS and innovators a clear, safe way to bring advanced treatments from the lab to the patient’s bedside. It’s a powerful example of how smart regulation can help more patients benefit from the best of British science.

    “We’re determined to clear the path for more health innovation of this sort. Our recently-published Life Sciences Sector Plan sets out our clear vision to do just that – with a view to unlocking growth, investment, and delivering a stronger, prevention-focused healthcare system.”

    MHRA Chief Executive Lawrence Tallon said:

    “Patients will now receive highly personalised treatments more quickly and nearer to their bedside, with the same rigorous standards as all medicines.

    “This is especially important where every hour matters, or where a treatment is so specific it simply can’t be made in advance.

    “It’s a landmark moment that opens the door to a future where highly personalised treatment – made for one person, in one place, at one time – becomes part of routine care.

    “The UK is leading the world in this next generation of medical innovation, and as the UK regulator for medicines and medical devices, we’re determined to play our role in providing the supportive regulatory framework to help our health partners and medicines innovators bring can bring these new treatments to patients.”

    From months to days

    Until now, personalised treatments such as CAR-T cancer therapy had to be sent to specialised manufacturing facilities often far away, causing long delays. In some cases, patients became too unwell to receive the therapy in time, or the medicine’s short shelf life meant it couldn’t be delivered at all.

    Hospitals were only able to offer these treatments through complicated, one-off arrangements, creating uncertainty for patients and doctors about whether treatment could go ahead.

    From today, hospitals, ambulances and local care settings in the UK have a pathway to carry out the final manufacturing steps for these personalised or time-sensitive treatments on-site, using clear, regulated protocols. This mirrors how chemotherapy or antibiotics are prepared locally, but with the same strict safeguards for more advanced therapies. A central control site will provide detailed instructions and oversight, while hospitals complete the process closer to the patient.

    Supporting care closer to home

    The legislation also supports the use of mobile manufacturing units – offering a safer alternative for patients too unwell to travel, or whose weakened immune systems mean hospital visits carry extra risk.

    This change enables care to be delivered where it’s most appropriate, including community settings or even at home, supporting the NHS ambition, as set out in the 10 Year Health Plan for England, to expand ‘hospital at home’ models such as virtual wards.

    Backed by law – and leading the world

    The legislation, known as The Human Medicines (Amendment) (Modular Manufacture and Point of Care) Regulations 2025, makes the UK the first country in the world to introduce a dedicated legal framework for medicines made at the point of care.

    Following strong support during the public consultation, the framework covers a broad range of innovative products, including cell and gene therapies, tissue-engineered treatments, 3D printed products, blood products, and medicinal gases.

    To support implementation, the MHRA published detailed guidance earlier this year and has worked closely with other UK regulators, the NHS, industry, academics and healthcare professionals to ensure clarity around how the legislation applies in practice. Today, the MHRA has added information on how to apply for a decentralised manufacture designation. Companies can also access MHRA scientific advice at any stage of development.

    The move strengthens the UK’s leadership in safe, decentralised manufacturing and is expected to boost research, trials and patient access to cutting-edge treatments. The MHRA is also working internationally to support similar changes in other countries, recently being centrally involved in the first global workshop on point-of-care manufacturing, through the International Coalition of Medicines Regulatory Authorities (ICMRA).

    Cell and Gene Therapy Catapult Chief Executive Matthew Durdy said:

    “This change demonstrates how the MHRA is leading in the UK’s commitment to being at the forefront of modern healthcare, innovation and regulation. The MHRA has recognised that some practices are better with more flexibility, and that in a technology enabled world which allows better training, information and communication, flexibility can be enabled without compromising safety.

    “This is not just a step forward for innovative medicines such as cell and gene therapies, it is a step towards enabling truly personalised medicine. We applaud this change introduced by the MHRA and look forward to a future where more patients can receive therapeutics tailored to their needs, quickly, cost-effectively and sustainably.”

    NHS England National Director for Specialised Commissioning John Stewart said:

    “The NHS in England was the first health system in Europe to adopt personalised cancer medicines and has since built a strong track record as an early leader in the use of potentially curative gene therapies.

    “The advanced treatments of today, will become the everyday healthcare of tomorrow, and forward-thinking regulatory changes like this will help enable the NHS to evolve patient care to deliver complex treatments to more people, in more places.”  

    Notes to editors 

    1. The regulations will take effect across the UK from 23 July 2025. For more information, visit The Human Medicines (Amendment) (Modular Manufacture and Point of Care) Regulations 2025
    2. Supporting guidance and updates can be accessed at Decentralised manufacture hub – GOV.UK
    3. Products manufactured at the point of care are eligible for support through the MHRA ILAP pathway, which is in place to accelerate time to market and facilitate patient access.
    4. Government response to consultation on proposals to support the regulation of medicines manufactured at the Point of Care – GOV.UK
    5. The Medicines and Healthcare products Regulatory Agency (MHRA) is responsible for regulating all medicines and medical devices in the UK by ensuring they work and are acceptably safe. All our work is underpinned by robust and fact-based judgements to ensure that the benefits justify any risks. 
    6. The MHRA is an executive agency of the Department of Health and Social Care. 
    7. For media enquiries, please contact the newscentre@mhra.gov.uk, or call on 020 3080 7651.

    Updates to this page

    Published 23 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: expert reaction to observational study of GLP-1 receptor agonists and metformin in people with type 2 diabetes and risk of dementia

    Source: United Kingdom – Executive Government & Departments

    An observational study published in BMJ Open Diabetes Research & Care looks at GLP-1 drugs vs metformin and the risk of dementia in people with type 2 diabetes. 

    Dr Richard Oakley, Associate Director of Research and Innovation, Alzheimer’s Society, said: 

    “Dementia is the UK’s biggest killer and one in three people born today will go onto to develop the condition. So, it’s exciting to see more research which shows how drugs currently being used for diabetes and weight loss – which are relatively cheap and easy to use – may also reduce the risk of dementia. 

    “This study found that GLP1RAs may significantly reduce some people’s risk of developing Alzheimer’s disease, and more so than those taking a second diabetes drug called metformin. 

    “However, they’re not a silver bullet in the fight against dementia and this study had several limitations that mean we mustn’t rush to conclusions about the effectiveness of these drugs – clinical trials will tell us more. 

    “These treatments didn’t reduce people’s risk of developing other types of dementia, such as vascular dementia, and there was a significant difference in risk reduction depending on patients’ ethnicity, with White patients much more likely to have a reduced risk than other racial groups. 

    “The study was retrospective, meaning we don’t know participants’ long-term outcomes and how many went on to develop dementia beyond the lifespan of the study. We need more dedicated research to understand whether these drugs could be used to tackle dementia while also finding therapies that benefit people from all backgrounds. 

    “We’re not at the finish line by any means, but we’re heading in the right direction.” 

    Dr Sheona Scales, Director of Research, Alzheimer’s Research UK, said:

    “Research shows that nearly half (45 %) of dementia cases are linked to 14 risk factors, including type 2 diabetes. Recent studies suggest that some commonly prescribed diabetes medicines could help reduce the risk of dementia, but it’s still unclear which treatments are most effective. This new study adds to a growing body of evidence that GLP-1 medicines may play a role in lowering dementia risk.

    “This is the first major study to compare the effect of two common diabetes treatments — GLP-1 medicines and metformin — on dementia risk, using health records from more than 174,000 people. The findings suggest that people with type 2 diabetes taking GLP-1 medicines had a lower risk of developing dementia than those taking metformin.

    “Using real health records helps us understand how these medicines might work in everyday life — not just in clinical trials. And the findings suggest a lower dementia risk in those taking GLP-1 medicines, but the study cannot tell us how these medicines affect the underlying biology that causes dementia. People with type 2 diabetes often have other health conditions, like high blood pressure or high cholesterol, which are also linked to dementia — so it’s hard to untangle what role these factors might have had on dementia risk in this study.

    “The two-year follow-up period may also be too short to tell what longer-term benefits these medicines may have on the brain. To build on the findings, we will need longer studies and clinical trials to look in detail at how different medicines may affect the brain and risk of developing dementia, in people with and without diabetes.

    “Anyone who has concerns or questions about their diabetes medications, brain health or dementia risk should speak to their GP.”

    Prof Patrick Kehoe, Gestetner Professor of Translational Dementia Research and Director of the Elizabeth Blackwell Institute for Health Research, University of Bristol, said:

    “This retrospective observational study gives more credence to the growing narrative about Alzheimer’s disease, as opposed to Vascular dementias, having a strong insulin resistance component, which happens in ageing but is thought to be more pronounced in Alzheimer’s disease.

    “But, as the authors acknowledge, it would need a formal trial to prove. There are some other considerations to note from this study. Most of the GLP-1 drugs studied in this group, of which there are several, remain largely under patent protection. This means they are more expensive and therefore not as widely available in some countries, such as those with public health care systems – compared to insurance-funded healthcare provision. So there is a possibility the favourable findings for this group of drugs may relate to the people who take them having some additional socioeconomic advantages, including diet, greater or more frequent access to exercise, and maybe higher or longer levels of education, that have also offered some other forms of protection.

    “A properly designed blinded randomised clinical trial could help address and counter these potential sources of bias, allowing a better head-to-head comparison. Such a trial would also enable the monitoring of drug side effects, which is also important. However, such robust research would be prohibitively costly and time-consuming, particularly when some of the GLP-1 drugs are already off patent or soon to be, making them less attractive to investigate in the commercial sector, and so it would fall to ever-tightening publicly-funded schemes, such as UKRI or Research Charities in the UK to fund them.

    “It may be the case that over time, as more GLP-1 drugs fall off patent and become available in cheaper forms, doctors will prescribe more of them because they have more choice and additional evidence might have become available. They are fortunate to have several choices to treat the diabetes which would be the more immediate concern. Further evidence of benefit may emerge in a way similar to what seems to have happened when there was a huge and successful effort to improve the detection and treatment of high blood pressure, in other words hypertension, and so with the increased levels of prescribing those drugs it possibly provided some protection as well as some slowing. Accordingly, reduced rates of dementia were observed, as reported in a similar observational study reported in 2016.

    “In the absence of clear findings in relation to these drugs, people still have some choices. Continued efforts to maintain a healthy diet and lifestyle, as well as body weight, will help not only to lessen the effects of diabetes but also improve cardiovascular health, all of which can do no harm to quality of life – and may offer additional protection against dementia.”

    Dr Martin Whyte, Associate Professor in Metabolic Medicine, University of Surrey, said: 

    “Type 2 diabetes (T2D) is known to increase the risk of cognitive impairment and dementia. Two of the most commonly prescribed medications for T2D are metformin and GLP-1 receptor agonists (GLP-1 drugs), which are primarily used to control blood sugar. However, GLP-1 drugs are known to have additional effects beyond glucose lowering, including actions on inflammation and the central nervous system.

    “There has been growing interest in whether GLP-1 drugs might help reduce the risk of dementia. The REWIND trial, which tested dulaglutide (a GLP-1 drug) versus placebo in people with T2D, reported a 14% reduction in the risk of significant cognitive decline, although it was not specifically designed to assess dementia risk.

    “In a new observational study by Sun and colleagues, based on routinely collected healthcare data, GLP-1 use was associated with a 10% lower risk of developing dementia (of all types) compared to metformin use. Since GLP-1 receptors are present throughout the brain, it is possible that the effect is direct; or it may be indirect—for example, via reductions in systemic inflammation or metabolic risk factors.

    “However, this was an observational study, which means it is subject to bias and confounding. Notably, the authors did not provide detailed information about the characteristics of patients in each group, either before or after statistical matching, and treatment duration for either GLP-1 drugs or metformin was not reported. These limitations make it difficult to draw firm conclusions, but the findings add to the growing interest in the potential cognitive benefits of GLP-1 drugs. A number of prospective randomised controlled trials are ongoing, to examine whether GLP-1 drugs can reduce the risk of dementia.”

    Dr Craig Beall, Senior Lecturer, University of Exeter, said:

    “It is important to note that people with diabetes have a 60% increased risk of dementia. Earlier separate studies using health records have shown that both metformin and GLP-1RAs are associated with reduced dementia risk. This study puts the two drugs head-to-head and shows that GLP-1RAs seem to be associated with a superior risk reduction for dementia.”

    “However, whether these drugs only reduce the diabetes related dementia risk is not yet clear. Whether people without diabetes could benefit is still unknown. What we need to determine this are randomised control trials and there are three large randomised control trials currently running. In these trials people without diabetes but with mild cognitive impairment, are given metformin or GLP-1RAs, and metformin in Alzheimer’s disease trial and EVOKE and EVOKE+ trials. Results are not expected until 2026. These studies will give the best evidence of whether these two drugs can slow progression or prevent full blown dementia from becoming established.”

     

    Prof Tara Spires-Jones, Director of the Centre for Discovery Brain Sciences at the University of Edinburgh, Group Leader in the UK Dementia Research Institute, and Past President of the British Neuroscience Association said:

    “This study adds to a series of recent papers indicating GLP-1 receptor agonists likely protect people with diabetes from developing dementia.  Lin and colleagues looked at medical records from over 170,000 people with diabetes, half of whom were treated with GLP-1 receptor agonists and half treated with metformin, and the GLP-1 receptor agonist treatment was associated with 10% lower risk of dementia than metformin over a four year follow up time.  As the authors point out, this type of study cannot prove that the GLP-1 receptor agonist treatment directly lowered dementia risk.  The study also has limitations of relatively short follow up time of 4 years and the types of dementia diagnosed rely on physician diagnosis and were not confirmed with brain scans or other biomarkers, meaning the data on which types of dementia were prevented are not very robust.  Overall, this study and many others coming out recently indicate GLP-1 receptor agonists likely lower dementia risk in people with diabetes.  Further work is needed including randomised clinical trials to confirm these drugs are protective in people with type 2 diabetes and whether these drugs will be protective in people who do not have type 2 diabetes.”

    ‘Evaluating GLP-1 receptor agonists versus metformin as first-line therapy for reducing dementia risk in type 2 diabetes’ by Mingyang Sun et al. was published in BMJ Open Diabetes Research & Care at 23:30 UK time on Tuesday 22nd July. 

    DOI: doi:10.1136/ bmjdrc-2025-004902

    Declared interests

    Prof Patrick Kehoe: No interests to declare.

    Dr Martin Whyte: “I am a site PI at King’s College Hospital for the FOCUS study which is examining the effect of semaglutide on retinopathy. I am not a grant holder for this.” 

    Dr Craig Beall: CB has previously collaborated with Rigel Pharmacuticals Inc. (CA, USA) on a JDRF/Breakthrough T1D-funded research project.

    CB is currently studying the effects of both drug types brain cells, in the context of diabetes.

    Prof Tara Spires-Jones: I have no conflicts with this study but have received payments for consulting, scientific talks, or collaborative research over the past 10 years from AbbVie, Sanofi, Merck, Scottish Brain Sciences, Jay Therapeutics, Cognition Therapeutics, Ono, and Eisai. I am also Charity trustee for the British Neuroscience Association and the Guarantors of Brain and serve as scientific advisor to several charities and non-profit institutions.

    Dr Richard Oakley: None

    Dr Sheona Scales: None

    MIL OSI United Kingdom –

  • MIL-OSI United Nations: Noting Almost 3 Billion People Lack Safe Place to Live, Deputy Secretary-General Urges Investment in Adequate Housing as Both Development, Peace Infrastructure

    Source: United Nations General Assembly and Security Council

    Following are UN Deputy Secretary-General Amina Mohammed’s remarks, as prepared for delivery, at the joint Economic and Social Council and the United Nations Human Settlements Programme (UN-Habitat) high-level dialogue on adequate housing, today:

    It is a privilege to join you today for this important dialogue.  I thank the President of the Economic and Social Council and UN-Habitat for convening us at such a critical moment.

    Let me begin with a simple question:  What did it take for us to be here today?  We woke up somewhere safe.  We had an address where documents could reach us, where our families knew to find us.  We had a place to eat a meal, charge our phones and prepare for this day.  For almost 3 billion people on our planet, none of that is guaranteed.

    This is why today’s dialogue — at this critical moment during the High-Level Political Forum — matters so urgently.  Housing is not simply about a roof over one’s head.  It is a fundamental human right and the foundation upon which peace itself rests.  Sustainable development and sustainable peace are inseparable.

    Today, in an increasingly urbanized world, almost 3 billion people still live in inadequate conditions, in informal settlements, overcrowded housing or with no shelter at all.  Among them are more than 120 million refugees and internally displaced persons — families torn from their homes by conflict, persecution and violence.

    When homes are destroyed, when families are forced to flee, when communities are uprooted, we witness how housing becomes both a casualty and weapon of war.  In Gaza, in Ukraine, in Sudan, in Yemen, in Myanmar and beyond, we have seen this time and again.

    There is no safe housing in rubble, and without shelter, we lose the very basis of social cohesion and stability that makes peace possible.  This crisis touches every Sustainable Development Goal we’ve committed to achieving by 2030.

    We often say that home is where the heart is.  Our work on housing sits at the very heart of the Sustainable Development Goals, and when we secure adequate housing for all, we nurture the conditions where every other goal can flourish.

    We know that when people have access to safe, adequate, and affordable housing, children perform better in school.  Workers are more productive.  Health outcomes improve dramatically.  Decent work becomes accessible.  Communities become more resilient to the forces that fuel conflict and division.  And while adequate housing cannot eliminate gender-based violence within the home, it reduces women and girls’ exposure to violence in public spaces.

    So, the reality is that the ambition of the 2030 Agenda to leave no one behind begins with something as fundamental as a safe place to call home. By 2030, 60 per cent of the world’s population will live in cities, rising to nearly 70 per cent by 2050.

    We have the tools and the commitment to grow cities, not slums, guided by the New Urban Agenda’s call for planned, inclusive urbanization that ensures housing, services and dignity for all.  Success or failure to deliver on our commitments will depend on our ability to act urgently and work together.

    At the Financing for Development Forum, Member States rightly called for bold reforms and investments to strengthen the social contract.  That must include housing, not as a stand-alone project, but as a driver of inclusive development.

    The Pact for the Future reaffirmed the 2030 Agenda and gave us a mandate to make multilateralism deliver in the lives of people, in the neighbourhoods where they live.  It also gave us a mandate to prevent conflict and sustain peace — and housing sits at the intersection of both.

    Later this year, the Second World Social Summit offers us an opportunity to reaffirm that housing is critical for social protection, decent work, access to services, and essential to building a just and cohesive society.  It is also an opportunity to recognize housing as a pillar of conflict prevention and peacebuilding.

    As Chair of the UN Sustainable Development Group, I see how country teams are working every day with governments, civil society and local and regional governments to advance these goals.

    But we need to do more.  Concretely, that means aligning political commitment and financing with the urgency and scale of the challenge.  It means investing in adequate housing, not just as development infrastructure, but peace infrastructure.

    We also need to bring to the centre those who are too often pushed to the margins:  women, young people, older persons, persons with disabilities, Indigenous Peoples, displaced populations and people living in homelessness.

    Their voices and experiences must inform the policies and solutions because they know what works, what’s missing, and they can inform the solutions we need to scale.  They also know intimately the connections between displacement, insecurity and conflict. Their involvement is the best measure of our commitment to equity, dignity and human rights.

    The first place where opportunity begins or where it is denied is not an office building or a school – it’s a home.  Together, let’s deliver not only shelter, but lasting solutions that offer security and a path to prosperity.  Not only four walls and a roof, but the opportunity to live in dignity.

    MIL OSI United Nations News –

  • MIL-OSI USA: Tuberville Speaks with Pentagon Nominees During SASC Hearing

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)

    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) spoke with Vice Admiral Frank Bradley, President Trump’s nominee to be Admiral and Commander of U.S. Special Operations Command (SOCOM) and Lt. Gen. Dagvin Anderson, President Trump’s nominee to be General and Commander of U.S. Africa Command (AFRICOM) during their Senate Armed Services Committee (SASC) nomination hearing. They discussed SOCOM’s military operations in Panama and Latin America to combat narco-terrorism and secure our southern border, along with the strategic need for having a military presence in Africa.

    Read Sen. Tuberville’s remarks below or on YouTube or Rumble.

    TUBERVILLE: “Thank you, Mr. Chairman. Good morning.

    Thanks [to] both of you. Thanks for what you’ve done for our country over your careers—you and your family. What a sacrifice it’s been, but you’ve done an outstanding job.

    ON SOCOM EFFORTS TO COMBAT NARCO-TERRORISTS:

    “Admiral, I think [for] far too long, we’ve had our eyes on other things and not on our hemisphere—whether it’s illegal migrants, drugs, or both. So, what is [the] Special Operations community doing to assist the militaries and governments in our hemisphere like Panama to combat narco-terrorists?”

    BRADLEY: “Senator, in my current capacity, I’m not privy to all of the activities that SOCOM is engaged in, in the Southern Hemisphere. But in listening and watching General Fenton and his leadership over these last three years, I know that the partnerships that our teams have been engaging in and developing remain critical to being able to help them build capacity, to be able to defend themselves, but also to provide security locally, which, of course, helps to prevent and secure our Southern border as well.”

    TUBERVILLE: “Yeah, I’m sure you’re up on the point of the Darién Gap and the problems that’s caused over the years, and relationship with our Special Ops, down in that area—training people—that will probably be in your forte going forward. What’s your thoughts about cooperation activities with Latin America as [you’re] going into this job?”

    BRADLEY: “Yes, sir. I think as the counterterrorism fight informs us, it is far better to find the root of the problem well away from our borders than it is to have to defend them internal to the United States. And so, if confirmed, making it a priority to provide assistance to all of our combatant commanders as far forward as possible, and with those partnered forces to help them to be able to secure their own territory.”

    ON AMERICAN MILITARY PRESENCE IN AFRICA:

    TUBERVILLE: “Yeah, and we and we have problems all over the world. But if we don’t watch our back door, then we’re gonna [really have] problems within our country, which we already have. General, I think we need to be reinforcing our military presence in Africa. Unfortunately, under the previous administration, we seemed like we were doing just the opposite. Niger—you and I talked about this in a meeting in my office—the vacuum that was caused there. China, Russia, Iran, were all too happy to feel the things that we were doing there. What’s your assessment of our withdrawal from Airbase 201? And have we learned from these lessons? And your thoughts about maybe the future there?”

    ANDERSON: “Senator, I appreciate that question and there was a significant investment that went into that airbase. It was in a key area for us to be able to monitor the threat. So, the loss of that is one that we have to find creative ways to continue to get the indicators and warnings of what the terrorists are doing in that area. I think we also have to understand that there is some volatility across the continent. So how do we make smart investments with the partners that we can continue to sustain. I will say that the relationships that we built in Niger with the military over several decades are still there. There is—when the time is right—I believe there will be an opportunity, but that time will have to be determined. And if confirmed, I’ll look at what that is.”

    TUBERVILLE: “Yeah. After your confirmation, I guess, by telling committee and people even watching at home—why do we need to have [a] presence in Africa? What [are] your thoughts?”

    ANDERSON: “So, Africa is key to any strategy. It’s just on strategic terrain. It’s just the waterways that it forms between the Strait of Gibraltar all the way down to the Suez Canal and the Red Sea. It [has] critical minerals and resources that are on the continent that we need for the future economy. Both China and Russia see their strategies going through the continent, and they are going to engage there and so we can cede that ground or we can compete in that ground. And I think we have a very powerful tool to compete with. As Admiral Bradley mentioned, nobody brings more credibility to the counterterrorism fight than the U.S. As a matter of fact, when we rescued that hostage in Niger, the next morning [there was an] influential blogger that posted, ‘The Americans came like the lion in the night. They killed their enemies and rescued their own.’ No other nation on Earth could do that.And that is a powerful symbol across the continent and around the world of what our military and what the United States is capable of. And I do think that some level of engagement in Africa does matter. I’d agree it’s an economy of force, but a small investment goes a long way so that we don’t have a strategic surprise that then distracts the United States from focusing on the rising threats in the Pacific and other areas.”

    TUBERVILLE: “Thank you. Thanks Mr. Chairman.”

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI United Nations: ‘Perfect storm’ of global crises drove years of food price surges: FAO

    Source: United Nations 2

    The report, to be released later this month, reveals how between 2020 and 2024, the world experienced a dramatic increase in food prices driven by a combination of COVID-19 inflation, the war in Ukraine restricting movements on food and commodities, and increasing climate shocks.  

    “The episodes described in this publication bring up what we call a perfect storm,” said Mr. Torero Cullen.

    Máximo Torero Cullen speaks to journalists at the UN HQs via video link.

    First, he explained that during the COVID-19 pandemic, governments launched fiscal stimulus and relief packages, which increased demand and, thus, global inflation.

    Russia’s full-scale invasion of Ukraine compounded this crisis. Before the war began in 2022, Ukraine was a key exporter of wheat, sunflower oil and fertilisers. The war not only restricted these exports but disrupted trade routes and pushed up fuel and input costs, which amplified inflation across the world.

    Additionally, increasingly frequent and intense climate shocks in major producing regions – such as droughts, floods and heat waves – further aggravated food inflation.

    Worldwide impacts

    Only in 2024 did prices return to pre-COVID levels, meaning that households struggled for multiple years to afford food, with major consequences.

    As real wages fell while food prices increased, household purchasing power was eroded. Households responded by buying cheaper and less nutritious food, reducing meal frequency, and often prioritising meals for certain family members and reducing intake for women and children.

    Mr. Torero Cullen also explained that an increase in food prices directly correlates to an increase in moderate and severe food insecurity. The impacts of this were particularly harsh in Africa and Western Asia, where food imports, dependence and currency depreciation made food even more expensive.

    Moreover, as food prices increased, nutrition outcomes among children under five worsened. The SOFI report illustrated that a 10 per cent food price increase led to a 2.7 to 6.1 per cent increase in moderate to severe wasting, which has long-lasting effects on child development and public health systems.  

    Notably, these grave impacts were uneven, mostly affecting low-income and African countries – many of which are still seeing worsening figures. During the peak of the crisis in January 2023, some low-income countries experienced food price inflation of up to 30 per cent, compared to 13.6 per cent globally.

    Policy recommendations  

    Mr. Torero Cullen finished his briefing by outlining the policy prescriptions detailed in the SOFI report.  

    He first underscored targeted fiscal support. “Social protection measures are the most effective response to food price spikes,” he explained. “This will protect vulnerable populations without creating long-term fiscal risk or market distortions.”  

    He also highlighted avoiding trade disruptions, coordinating monetary and fiscal policies, improving market transparency, and institutional preparedness as essential components for avoiding future crises.

    “This SOFI underscores that inflation can undermine progress. It underlines our vulnerabilities, and it also brings the importance of strengthening resilience, inclusiveness and transparency to be able to avoid and minimize the risk of these problems,” he concluded.  

    MIL OSI United Nations News –

  • MIL-OSI Security: Felon Indicted for Illegal Possession of a Firearm Following Arrest in Northwest D.C.

    Source: Office of United States Attorneys

    Defendant Charged as Part of Make D.C. Safe and Beautiful Initiative

               WASHINGTON – David Oday Smith, 39, of the District of Columbia, has been charged in an indictment, unsealed today in U.S. District Court, on a federal firearms charge as part of the “Make D.C. Safe and Beautiful” initiative. 

               The indictment was announced by U.S. Attorney Jeanine Ferris Pirro, Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department (MPD).

               Smith is charged federally with one count of unlawful possession of a firearm and ammunition by a felon.

               According to court documents, on July 14, 2025, members of the MPD’s Fourth District Crime Suppression Team were on patrol on the 5700 block of Georgia Avenue Northwest, when they noticed Smith hiding behind a bus stop with a black satchel.

               As officers approached, Smith immediately fled and eventually discarded his black satchel. Officers searched the satchel and discovered a Glock 27 .40 caliber pistol, containing one .40 caliber round loaded in the chamber and 14 additional rounds in the magazine.

               Smith is prohibited from possession of a firearm and ammunition due to multiple prior felony convictions, including a 2009 second degree murder conviction in Prince George’s County, Maryland.

               This case is being prosecuted under the Make D.C. Safe and Beautiful initiative. Make D.C. Safe Again is a law enforcement initiative in support of President Trump’s Executive Order to Make D.C. Safe and Beautiful. Make D.C. Safe Again aims to crack down on gun violence, prioritize federal firearms violations, pursue tougher penalties for offenses, and seek detention for federal firearms violators.

               The case is being investigated by the ATF Washington Field Office and the Metropolitan Police Department. Special Assistant U.S. Attorney David B. Liss is prosecuting the case.

               An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    25cr207

    MIL Security OSI –

  • MIL-OSI United Kingdom: New operational partnership with delivery giants to combat illegal working

    Source: United Kingdom – Executive Government & Departments

    News story

    New operational partnership with delivery giants to combat illegal working

    New agreement between Home Office and top food delivery firms will help stop illegal working in the delivery sector

    More delivery riders caught sharing their accounts with migrants who have no right to work in the UK will be suspended, as part of the government’s UK-wide crackdown on illegal working under the Plan for Change.

    A new agreement between the Home Office and Deliveroo, Just Eat and Uber Eats will ensure delivery firms receive new information concerning the locations of asylum hotels to help tackle illegal working.

    Under existing security measures, any delivery riders caught sharing their accounts with migrants who have no right to work in the UK will be suspended. This new agreement goes further to ensure more people who are breaking the rules can be caught.  

    Efforts by the companies to crack down on illegal account sharing through real-time identity and Right to Work checks have been successful and have led to thousands being offboarded from platforms. Despite this, there continues to be abuse in the system. Under the new agreement, the firms will be empowered to go further in detecting patterns of misuse, identify unauthorised account sharing and quickly suspend accounts.

    The move comes after a commitment made by the firms during a roundtable last month, chaired by Ministers, to implement new security measures. This includes increased facial verification checks and fraud detection tools meaning only verified users can access their platforms. The Home Office will continue to collaborate closely with the three companies, with meetings taking place in the coming weeks to update on progress and delivery.

    Today’s announcement is part of the government’s work to step up enforcement across the UK targeting illegal working hotspots, with a focus on the gig economy and migrants working illegally as delivery riders. It forms a key part of a whole system approach to tackle illegal migration from every angle, by ending the false promise of jobs used by smuggling gangs to sell spaces on small boats.

    Home Secretary Yvette Cooper, said:

    Illegal working undermines honest business, exploits vulnerable individuals and fuels organised immigration crime.

    By enhancing our data sharing with delivery companies, we are taking decisive action to close loopholes and increase enforcement.

    The changes come alongside a 50% increase in raids and arrests for illegal working under the Plan for Change, greater security measures and tough new legislation.

    Eddy Montgomery, Director of Enforcement, Compliance and Crime at the Home Office, said:

    This next step of co-ordinated working with delivery firms will help us target those who seek to work illegally in the gig economy and exploit their status in the UK.

    My teams will continue to carry out increased enforcement activity across the UK and I welcome this additional tool to disrupt and stop the abuse of our immigration system.

    A Deliveroo spokesperson said:

    Deliveroo has led the sector in introducing security measures to prevent the abuse of our platform and tackle the sophisticated criminals seeking new ways to exploit all delivery platforms’ systems. We are fully committed to working with the government as we continue to collectively combat illegal working.

    A Just Eat spokesperson said:

    Just Eat is committed to tackling any illegal working via our platform. We continue to invest significant resources to strengthen our systems against abuse by individuals and organised criminal groups seeking to evade right to work rules. We are working closely with the Home Office and our industry partners to address any loopholes in the industry’s checks, as well as collaborating on data sharing and enforcement.

    An Uber Eats spokesperson said:

    Uber Eats is fully committed to tackling illegal work and will continue to work with the Home Office and industry. We have introduced a range of state of the art detection tools to find and remove fraudulent accounts. We are constantly reviewing our tools and finding new ways to detect and take action on people who are trying to work illegally.

    Since the government came into power one year ago, there have been more than 10,000 illegal working visits across multiple sectors, leading to 7,130 arrests, up around 50% compared to the year before. This marks the first time in a 12-month period where more than 10,000 visits have taken place.

    Almost 750 illegal working civil penalty notices were also handed to businesses caught violating immigration rules in the first quarter of the year, marking the highest level since 2016 – and an 80% increase compared to the same time last year. 

    The government is tightening the law by making it a legal requirement for all companies, including the gig economy, to check that anyone working for them has the legal right to do so. This will end the abuse of flexible working arrangements. The new measures will be introduced through the landmark Border Security, Asylum and Immigration Bill.

    The fight against illegal working forms just one part of government’s work to bolster border security across the system.

    Since coming into power one year ago, the government has returned 35,000 people with no right to be in the UK including failed asylum seekers, immigration and foreign national offenders. There are now fewer asylum hotels open than since the election, saving millions of taxpayers’ money.

    This is on top of a new groundbreaking deal with the French which will mean that, for the very first time, illegal migrants will be sent back to France. This targets the heart of the criminal smuggling gangs’ business model and sends a clear message that these life-threatening journeys are pointless and a waste of thousands of pounds. 

    The deal seeks to detain and return migrants who arrive via small boat, and an equal number of migrants will be able to come to the UK from France through a new legal route – fully documented and subject to strict security checks.

    Updates to this page

    Published 22 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI Russia: 155th Joint Mekong River Patrol Begins

    Translation. Region: Russian Federal

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

    An important disclaimer is at the bottom of this article.

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

    KUNMING, July 22 (Xinhua) — Law enforcement agencies from China, Laos, Myanmar and Thailand on Tuesday launched the 155th joint patrol of the Mekong River to combat cross-border crime.

    The patrol officially began at around 9 a.m. Tuesday, when three Chinese vessels left Jingha Port in southwest China’s Yunnan Province. Patrol vessels from Laos and Myanmar also set out from ports in Laos and Myanmar at the same time, heading to a pre-designated area.

    The four-day, three-night joint patrol involves more than 100 law enforcement officers from China, Laos, Myanmar and Thailand, as well as seven patrol vessels from those countries, excluding Thailand. The mission will include combined water-land inspections and training in some key waters on the Mekong River, aimed at combating drug trafficking, fraud, smuggling and illegal migration.

    During the patrol, the relevant law enforcement agencies of the four countries will also hold an information-sharing meeting in Chiang Saen, Thailand, to review the security situation in the Lancang-Mekong basin and identify priority areas for further cooperation.

    The previous joint patrol ended at the end of June this year. During it, representatives of the joint patrol group organized various preventive actions in villages, schools and enterprises in the coastal zone, distributing more than 1,000 anti-drug leaflets and 4,000 educational materials.

    The Mekong River, known in China as the Lancangjiang, is one of the most important waterways for transboundary shipping in Southeast Asia. Joint patrols of the Mekong involving China, Laos, Myanmar and Thailand have been conducted since December 2011. –0–

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

    .

    MIL OSI Russia News –

  • MIL-OSI Russia: Foreign Ministers of Azerbaijan and Georgia Discuss Bilateral Cooperation and Regional Projects

    Translation. Region: Russian Federal

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

    An important disclaimer is at the bottom of this article.

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

    Tbilisi, July 22 (Xinhua) — Georgian Foreign Minister Maka Bochorishvili and Azerbaijani Foreign Minister Jeyhun Bayramov held talks in Tbilisi to discuss key areas of bilateral and regional cooperation, the Georgian Foreign Ministry said on Tuesday.

    The parties exchanged views on strengthening political dialogue, cooperation in the areas of energy, transport and trade, and also touched upon current challenges in the area of regional security.

    Following the talks, a joint press conference was held. M. Bochorishvili emphasized the importance of ensuring sustainable peace and stability in the South Caucasus, expressing hope for the earliest possible achievement of a peace agreement between Azerbaijan and Armenia. The head of the Georgian Foreign Ministry placed special emphasis on the trilateral format of cooperation between Azerbaijan, Georgia and Armenia. “We believe that we have the potential to continue cooperation between the three countries in this format,” she said.

    J. Bayramov, for his part, confirmed the unwavering support for Georgia’s territorial integrity and highly appreciated the level of political relations between the two states. He noted that in the first five months of 2025, bilateral trade turnover exceeded USD 330 million, which is 20 percent more than in the same period last year. In addition, as the minister added, Azerbaijan continues to be one of the largest foreign investors in the Georgian economy with a total investment of over USD 3.6 billion.

    J. Bayramov emphasized the strategic importance of joint infrastructure projects, including the Baku-Tbilisi-Ceyhan oil pipeline, the Southern Gas Corridor and the Baku-Tbilisi-Kars railway. According to him, these projects contribute to the expansion of regional connectivity and have great international potential.

    During the talks, the parties also discussed the development of a cross-border project to deliver renewable energy from Azerbaijan through Georgia and the Black Sea to the European market and ways to improve the efficiency of cargo transportation along the Middle Corridor. –0–

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

    .

    MIL OSI Russia News –

  • MIL-OSI Russia: Iran FM: Lifting sanctions, respecting country’s nuclear rights necessary to resume talks with US

    Translation. Region: Russian Federal

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

    An important disclaimer is at the bottom of this article.

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

    TEHRAN, July 22 (Xinhua) — Iranian Foreign Minister Abbas Araghchi said on Tuesday that his country is ready to resume indirect talks with the United States on the condition that sanctions are lifted and Tehran’s right to use nuclear technology for “peaceful” purposes is respected.

    The diplomat made the statement at a meeting with members of the Iranian parliament’s National Security and Foreign Policy Committee, as reported by the official Iranian news agency IRNA, citing committee member Yaghub Rezazadeh.

    According to the legislator, A. Araghchi noted that “if sanctions are lifted and Iran’s right to use peaceful nuclear technologies is respected, indirect negotiations with the United States will take place before the issue of /activating/ the sanctions rollback mechanism is raised in October.”

    The sanctions snapback mechanism is part of the 2015 Iran nuclear deal, formally known as the Joint Comprehensive Plan of Action (JCPOA). It allows other parties to reimpose all international sanctions if Iran fails to comply with the agreement.

    As Y. Rezazadeh pointed out, in addition, the head of the Ministry of Foreign Affairs announced preparations for negotiations on the Iranian nuclear program between Iran and Russia, as well as a meeting of representatives of Iran and three European countries – France, Great Britain and Germany, which is scheduled to take place on July 25 in Istanbul and will be devoted to the same issue.

    Iran signed the JCPOA with six countries – Britain, China, France, Germany, Russia and the United States – in July 2015. Under the deal, Tehran agreed to curb its nuclear program in exchange for sanctions relief.

    In 2018, the United States unilaterally withdrew from the deal and reimposed sanctions on Iran, prompting Tehran to begin gradually backtracking on its nuclear commitments. –0–

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

    .

    MIL OSI Russia News –

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

    Source: GlobeNewswire (MIL-OSI)

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

    Net Income   Diluted EPS   Net Interest Margin1   ROAA1   ROATCE1
    $47.4 million   $0.52   3.49%   1.00%   11.24%
    $57.4 million (adj)2   $0.63 (adj)2   3.33% (adj)2   1.21% (adj)2   13.61% (adj)2
                     
    MESSAGE FROM OUR CHAIRMAN & CEO
    This quarter’s bank merger and data conversion represents a significant milestone for our organization, as we officially welcome CrossFirst Bank customers to Busey Bank. We are proud to offer a premier, full-service banking experience for both consumer and commercial clients, with 78 locations spanning 10 states. Our comprehensive services also include a robust wealth management platform and cutting-edge payment technology solutions through FirsTech, Inc. This transformational partnership allows us to enhance Busey’s rich 157-year legacy of service excellence, further advancing our organization for the benefit of all our Pillars—associates, customers, communities, and shareholders.

    Van A. Dukeman
    Chairman and Chief Executive Officer
     

    FINANCIAL RESULTS

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
                         
        Three Months Ended   Six Months Ended
    (dollars in thousands, except per share amounts)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Total interest income   $ 247,446     $ 166,815     $ 131,939     $ 414,261     $ 257,759  
    Total interest expense     94,263       63,084       49,407       157,347       99,373  
    Net interest income     153,183       103,731       82,532       256,914       158,386  
    Provision for credit losses1     5,700       45,593       1,908       51,293       6,268  
    Net interest income after provision for credit losses1     147,483       58,138       80,624       205,621       152,118  
    Total noninterest income     44,863       21,223       33,703       66,086       68,616  
    Total noninterest expense1     127,833       112,030       75,906       239,863       147,353  
    Income (loss) before income taxes     64,513       (32,669 )     38,421       31,844       73,381  
    Income taxes     17,109       (2,679 )     11,064       14,430       19,799  
    Net income (loss)     47,404       (29,990 )     27,357       17,414       53,582  
    Dividends on preferred stock     155       —       —       155       —  
    Net income (loss) available to common stockholders   $ 47,249     $ (29,990 )   $ 27,357     $ 17,259     $ 53,582  
                         
    Basic earnings (loss) per common share   $ 0.53     $ (0.44 )   $ 0.48     $ 0.22     $ 0.95  
    Diluted earnings (loss) per common share   $ 0.52     $ (0.44 )   $ 0.47     $ 0.22     $ 0.94  
    Effective income tax rate     26.52 %     8.20 %     28.80 %     45.31 %     26.98 %

    ___________________________________________

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

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

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

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

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

    Pre-Provision Net Revenue2

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

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

    Net Interest Income and Net Interest Margin2

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

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

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

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

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

    Noninterest Income

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

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

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

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

    Noteworthy components of noninterest income are as follows:

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

    Operating Efficiency

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

    ___________________________________________

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

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

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

    Noteworthy components of noninterest expense are as follows:

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

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

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

    BALANCE SHEET STRENGTH

    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
               
      As of
    (dollars in thousands, except per share amounts) June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    ASSETS          
    Cash and cash equivalents $ 752,352     $ 1,200,292     $ 285,269  
    Debt securities available for sale   2,217,788       2,273,874       1,829,896  
    Debt securities held to maturity   802,965       815,402       851,261  
    Equity securities   16,171       10,828       9,618  
    Loans held for sale   10,497       7,270       11,286  
    Portfolio loans   13,808,619       13,868,357       7,998,912  
    Allowance for credit losses   (183,334 )     (195,210 )     (85,226 )
    Restricted bank stock   77,112       53,518       6,884  
    Premises and equipment, net   181,394       182,003       121,647  
    Right of use assets   38,065       40,594       11,137  
    Goodwill and other intangible assets, net   488,181       496,118       370,580  
    Other assets   708,930       711,206       560,152  
    Total assets $ 18,918,740     $ 19,464,252     $ 11,971,416  
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Liabilities          
    Deposits:          
      Noninterest-bearing deposits $ 3,590,363     $ 3,693,070     $ 2,832,776  
      Interest-bearing checking, savings, and money market deposits   9,578,953       9,675,324       5,619,470  
      Time deposits   2,632,456       3,091,076       1,523,889  
    Total deposits   15,801,772       16,459,470       9,976,135  
    Securities sold under agreements to repurchase   158,030       137,340       140,283  
    Short-term borrowings   —       11,209       —  
    Long-term debt   189,726       313,535       227,245  
    Junior subordinated debt owed to unconsolidated trusts   77,187       77,117       74,693  
    Lease liabilities   39,235       41,111       11,469  
    Other liabilities   240,244       244,864       207,781  
    Total liabilities   16,506,194       17,284,646       10,637,606  
               
    Stockholders’ equity          
    Retained earnings   273,799       249,484       261,820  
    Accumulated other comprehensive income (loss)   (155,311 )     (172,810 )     (220,326 )
    Other stockholders’ equity1   2,294,058       2,102,932       1,292,316  
    Total stockholders’ equity   2,412,546       2,179,606       1,333,810  
    Total liabilities & stockholders’ equity $ 18,918,740     $ 19,464,252     $ 11,971,416  

    ___________________________________________

    1. Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.
    AVERAGE BALANCES (unaudited)
                       
      Three Months Ended   Six Months Ended
    (dollars in thousands) June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    ASSETS                  
    Cash and cash equivalents $ 868,164   $ 861,021   $ 346,381   $ 864,613   $ 470,287
    Investment securities   3,083,284     2,782,435     2,737,313     2,933,690     2,822,228
    Loans held for sale   6,899     3,443     9,353     5,181     7,093
    Portfolio loans   13,840,190     9,838,337     8,010,636     11,850,318     7,804,976
    Interest-earning assets   17,700,356     13,363,594     11,000,785     15,543,955     11,003,344
    Total assets   19,068,086     14,831,298     12,089,692     16,961,396     12,056,950
                       
    LIABILITIES & STOCKHOLDERS’ EQUITY                  
    Noninterest-bearing deposits   3,542,617     3,036,127     2,816,293     3,290,770     2,762,439
    Interest-bearing deposits   12,450,529     9,142,781     7,251,582     10,805,793     7,290,844
    Total deposits   15,993,146     12,178,908     10,067,875     14,096,563     10,053,283
    Federal funds purchased and securities sold under agreements to repurchase   141,978     144,838     144,370     143,400     161,514
    Interest-bearing liabilities   12,985,015     9,627,841     7,725,832     11,315,702     7,778,744
    Total liabilities   16,783,504     12,896,222     10,757,877     14,850,601     10,753,180
    Stockholders’ equity – preferred   103,619     2,669     —     53,423     —
    Stockholders’ equity – common   2,180,963     1,932,407     1,331,815     2,057,372     1,303,770
    Tangible common equity1   1,686,490     1,521,387     955,591     1,604,394     939,150

    ___________________________________________

    1. See “Non-GAAP Financial Information” for reconciliation.

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

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

    Portfolio Loans

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

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

    Asset Quality

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

    ASSET QUALITY (unaudited)
               
      As of
    (dollars in thousands) June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Total assets $ 18,918,740     $ 19,464,252     $ 11,971,416  
    Portfolio loans   13,808,619       13,868,357       7,998,912  
    Loans 30 – 89 days past due   42,188       18,554       23,463  
    Non-performing loans:          
    Non-accrual loans   53,614       48,647       8,393  
    Loans 90+ days past due and still accruing   941       6,077       712  
    Non-performing loans   54,555       54,724       9,105  
    Other non-performing assets   3,596       4,757       90  
    Non-performing assets   58,151       59,481       9,195  
    Substandard (excludes 90+ days past due)   117,580       131,078       86,579  
    Classified assets $ 175,731     $ 190,559     $ 95,774  
               
    Allowance for credit losses $ 183,334     $ 195,210     $ 85,226  
               
    RATIOS          
    Non-performing loans to portfolio loans   0.40 %     0.39 %     0.11 %
    Non-performing assets to total assets   0.31 %     0.31 %     0.08 %
    Non-performing assets to portfolio loans and other non-performing assets   0.42 %     0.43 %     0.11 %
    Allowance for credit losses to portfolio loans   1.33 %     1.41 %     1.07 %
    Coverage ratio of the allowance for credit losses to non-performing loans 3.36 x   3.57 x   9.36 x
    Classified assets to Bank Tier 1 capital1and reserves   7.70 %     8.40 %     6.40 %

    ___________________________________________

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

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

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

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

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

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

    NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
                       
      Three Months Ended   Six Months Ended
    (dollars in thousands) June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net charge-offs (recoveries) $ 12,882   $ 31,429   $ 9,856     $ 44,311   $ 15,072  
                       
    Provision for loan losses1 $ 1,005   $ 42,452   $ 2,277     $ 43,457   $ 7,315  
    Provision for unfunded commitments2   4,695     3,141     (369 )     7,836     (1,047 )
    Provision for credit losses3 $ 5,700   $ 45,593   $ 1,908     $ 51,293   $ 6,268  

    ___________________________________________

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

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

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

    Deposits

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

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

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

    Borrowings

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

    Liquidity

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

    Capital Strength

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

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

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

    Dividends

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

    Series B Preferred Stock Issuance

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

    Share Repurchases

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

    SECOND QUARTER EARNINGS INVESTOR PRESENTATION

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

    CORPORATE PROFILE

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

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

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

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

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

    NON-GAAP FINANCIAL INFORMATION

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

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

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

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

    Pre-Provision Net Revenue and Related Measures
                         
        Three Months Ended   Six Months Ended
    (dollars in thousands)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net interest income (GAAP)   $ 153,183     $ 103,731     $ 82,532     $ 256,914     $ 158,386  
    Total noninterest income (GAAP)     44,863       21,223       33,703       66,086       68,616  
    Net security (gains) losses (GAAP)     (5,997 )     15,768       353       9,771       6,728  
    Total noninterest expense (GAAP)1     (127,833 )     (112,030 )     (75,906 )     (239,863 )     (147,353 )
    Pre-provision net revenue (Non-GAAP) [a]   64,216       28,692       40,682       92,908       86,377  
    Acquisition and restructuring expenses, excluding initial provision expenses     16,600       26,026       2,212       42,626       2,620  
    Realized net (gains) losses on the sale of mortgage service rights     —       —       (277 )     —       (7,742 )
    Adjusted pre-provision net revenue (Non-GAAP) [b] $ 80,816     $ 54,718     $ 42,617     $ 135,534     $ 81,255  
                         
    Average total assets [c] $ 19,068,086     $ 14,831,298     $ 12,089,692     $ 16,961,396     $ 12,056,950  
                         
    Pre-provision net revenue to average total assets (Non-GAAP)2 [a÷c]   1.35 %     0.78 %     1.35 %     1.10 %     1.44 %
    Adjusted pre-provision net revenue to average total assets (Non-GAAP)2 [b÷c]   1.70 %     1.50 %     1.42 %     1.61 %     1.36 %

    ___________________________________________

    1. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.
    2. Annualized measure.
    Adjusted Net Income, Average Tangible Common Equity, and Related Ratios
                         
        Three Months Ended   Six Months Ended
    (dollars in thousands, except per share amounts)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net income (loss) (GAAP) [a] $ 47,404     $ (29,990 )   $ 27,357     $ 17,414     $ 53,582  
    Day 2 provision for credit losses1     —       45,572       —       45,572       —  
    Adjustment of initial provision for unfunded commitments due to adoption of new model1     4,030       —       —       4,030       —  
    Other acquisition expenses     16,600       26,026       2,212       42,626       2,497  
    Restructuring expenses     —       —       —       —       123  
    Net securities (gains) losses     (5,997 )     15,768       353       9,771       6,728  
    Realized net (gains) losses on the sale of mortgage servicing rights     —       —       (277 )     —       (7,742 )
    Related tax (benefit) expense2     (4,971 )     (22,069 )     (572 )     (27,040 )     (402 )
    Non-recurring deferred tax adjustment3     328       4,591       1,446       4,919       1,446  
    Adjusted net income (Non-GAAP)4 [b]   57,394       39,898       30,519       97,292       56,232  
    Preferred dividends [c]   155       —       —       155       —  
    Adjusted net income available to common stockholders (Non-GAAP) [d] $ 57,239     $ 39,898     $ 30,519     $ 97,137     $ 56,232  
                         
    Weighted average number of common shares outstanding, diluted (GAAP) [e]   90,883,711       68,517,647       57,853,231       80,251,577       57,129,865  
    Diluted earnings (loss) per common share (GAAP) [(a-c)÷e] $ 0.52     $ (0.44 )   $ 0.47     $ 0.22     $ 0.94  
                         
    Weighted average number of common shares outstanding, diluted (Non-GAAP)5 [f]   90,883,711       69,502,717       57,853,231       80,251,577       57,129,865  
    Adjusted diluted earnings per common share (Non-GAAP)5,6 [d÷f] $ 0.63     $ 0.57     $ 0.53     $ 1.21     $ 0.98  
                         
    Average total assets [g] $ 19,068,086     $ 14,831,298     $ 12,089,692     $ 16,961,396     $ 12,056,950  
    Return on average assets (Non-GAAP)6 [a÷g]   1.00 %   (0.82)%     0.91 %     0.21 %     0.89 %
    Adjusted return on average assets (Non-GAAP)4,6 [b÷g]   1.21 %     1.09 %     1.02 %     1.16 %     0.94 %
                         
    Average common equity   $ 2,180,963     $ 1,932,407     $ 1,331,815     $ 2,057,372     $ 1,303,770  
    Average goodwill and other intangible assets, net     (494,473 )     (411,020 )     (376,224 )     (452,978 )     (364,620 )
    Average tangible common equity (Non-GAAP) [h] $ 1,686,490     $ 1,521,387     $ 955,591     $ 1,604,394     $ 939,150  
                         
    Return on average tangible common equity (Non-GAAP)6 [(a-c)÷h]   11.24 %   (7.99)%     11.51 %     2.17 %     11.47 %
    Adjusted return on average tangible common equity (Non-GAAP)4,6 [d÷h]   13.61 %     10.64 %     12.85 %     12.21 %     12.04 %

    ___________________________________________

    1. The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
    2. Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June 30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
    3. A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey’s Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
    4. Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were presented as further adjustments to adjusted net income.
    5. Dilution includes shares that would have been dilutive if there had been net income during the period.
    6. Annualized measure.
    Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin
                         
        Three Months Ended   Six Months Ended
    (dollars in thousands)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net interest income (GAAP)   $ 153,183     $ 103,731     $ 82,532     $ 256,914     $ 158,386  
    Tax-equivalent adjustment1     791       537       402       1,328       851  
    Tax-equivalent net interest income (Non-GAAP) [a]   153,974       104,268       82,934       258,242       159,237  
    Purchase accounting accretion related to business combinations     (7,119 )     (2,728 )     (812 )     (9,847 )     (1,016 )
    Adjusted net interest income (Non-GAAP) [b] $ 146,855     $ 101,540     $ 82,122     $ 248,395     $ 158,221  
                         
    Average interest-earning assets (Non-GAAP) [c] $ 17,700,356     $ 13,363,594     $ 11,000,785     $ 15,543,955     $ 11,003,344  
                         
    Net interest margin (Non-GAAP)2 [a÷c]   3.49 %     3.16 %     3.03 %     3.35 %     2.91 %
    Adjusted net interest margin (Non-GAAP)2 [b÷c]   3.33 %     3.08 %     3.00 %     3.22 %     2.89 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. Annualized measure.
    Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets
                         
        Three Months Ended   Six Months Ended
    (dollars in thousands)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net interest income (GAAP) [a] $ 153,183     $ 103,731     $ 82,532     $ 256,914     $ 158,386  
    Tax-equivalent adjustment1     791       537       402       1,328       851  
    Tax-equivalent net interest income (Non-GAAP) [b]   153,974       104,268       82,934       258,242       159,237  
                         
    Total noninterest income (GAAP)     44,863       21,223       33,703       66,086       68,616  
    Net security (gains) losses     (5,997 )     15,768       353       9,771       6,728  
    Noninterest income excluding net securities gains and losses (Non-GAAP) [c]   38,866       36,991       34,056       75,857       75,344  
    Realized net (gains) losses on the sale of mortgage service rights     —       —       (277 )     —       (7,742 )
    Adjusted noninterest income (Non-GAAP) [d] $ 38,866     $ 36,991     $ 33,779     $ 75,857     $ 67,602  
                         
    Tax-equivalent revenue (Non-GAAP) [e = b+c] $ 192,840     $ 141,259     $ 116,990     $ 334,099     $ 234,581  
    Adjusted tax-equivalent revenue (Non-GAAP) [f = b+d]   192,840       141,259       116,713       334,099       226,839  
    Operating revenue (Non-GAAP) [g = a+d]   192,049       140,722       116,311       332,771       225,988  
                         
    Adjusted noninterest income to operating revenue (Non-GAAP) [d÷g]   20.24 %     26.29 %     29.04 %     22.80 %     29.91 %
                         
    Total noninterest expense (GAAP)2   $ 127,833     $ 112,030     $ 75,906     $ 239,863     $ 147,353  
    Amortization of intangible assets     (4,592 )     (3,083 )     (2,629 )     (7,675 )     (5,038 )
    Noninterest expense excluding amortization of intangible assets (Non-GAAP)2 [h]   123,241       108,947       73,277       232,188       142,315  
    Acquisition and restructuring expenses, excluding initial provision expenses     (16,600 )     (26,026 )     (2,212 )     (42,626 )     (2,620 )
    Adjusted noninterest expense (Non-GAAP)2 [i] $ 106,641     $ 82,921     $ 71,065     $ 189,562     $ 139,695  
                         
    Efficiency ratio (Non-GAAP)2 [h÷e]   63.91 %     77.13 %     62.64 %     69.50 %     60.67 %
    Adjusted efficiency ratio (Non-GAAP)2 [i÷f]   55.30 %     58.70 %     60.89 %     56.74 %     61.58 %
                         
    Average total assets [j] $ 19,068,086     $ 14,831,298     $ 12,089,692     $ 16,961,396     $ 12,056,950  
    Adjusted noninterest expense to average assets (Non-GAAP)2,3 [i÷j]   2.24 %     2.27 %     2.36 %     2.25 %     2.33 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
    3. Annualized measure.
    Tangible Assets, Tangible Common Equity, and Related Measures and Ratio
                 
        As of
    (dollars in thousands, except per share amounts)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Total assets (GAAP)   $ 18,918,740     $ 19,464,252     $ 11,971,416  
    Goodwill and other intangible assets, net     (488,181 )     (496,118 )     (370,580 )
    Tangible assets (Non-GAAP)1 [a] $ 18,430,559     $ 18,968,134     $ 11,600,836  
                 
    Total stockholders’ equity (GAAP)   $ 2,412,546     $ 2,179,606     $ 1,333,810  
    Preferred stock and additional paid in capital on preferred stock     (215,197 )     (7,750 )     —  
    Common equity [b]   2,197,349       2,171,856       1,333,810  
    Goodwill and other intangible assets, net     (488,181 )     (496,118 )     (370,580 )
    Tangible common equity (Non-GAAP)1 [c] $ 1,709,168     $ 1,675,738     $ 963,230  
                 
    Tangible common equity to tangible assets (Non-GAAP)1 [c÷a]   9.27 %     8.83 %     8.30 %
                 
    Ending number of common shares outstanding (GAAP) [d]   89,104,678       90,008,178       56,746,937  
    Book value per common share (Non-GAAP) [b÷d] $ 24.66     $ 24.13     $ 23.50  
    Tangible book value per common share (Non-GAAP) [c÷d] $ 19.18     $ 18.62     $ 16.97  

    ___________________________________________

    1. Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.
    Core Deposits and Related Ratio
                 
        As of
    (dollars in thousands)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Total deposits (GAAP) [a] $ 15,801,772     $ 16,459,470     $ 9,976,135  
    Brokered deposits, excluding brokered time deposits of $250,000 or more     (353,614 )     (722,224 )     (43,089 )
    Time deposits of $250,000 or more     (827,762 )     (867,035 )     (314,461 )
    Core deposits (Non-GAAP) [b] $ 14,620,396     $ 14,870,211     $ 9,618,585  
                 
    Core deposits to total deposits (Non-GAAP) [b÷a]   92.52 %     90.34 %     96.42 %
                             

    FORWARD-LOOKING STATEMENTS

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

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

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

    END NOTES

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

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

    The MIL Network –

  • MIL-OSI: Baker Hughes Company Announces Second-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Second-quarter highlights

    • Orders of $7.0 billion, including $3.5 billion of IET orders.
    • RPO of $34.0 billion, including record IET RPO of $31.3 billion.
    • Revenue of $6.9 billion, down 3% year-over-year.
    • Attributable net income of $701 million.
    • GAAP diluted EPS of $0.71 and adjusted diluted EPS* of $0.63.
    • Adjusted EBITDA* of $1,212 million, up 7% year-over-year.
    • Cash flows from operating activities of $510 million and free cash flow* of $239 million.
    • Returns to shareholders of $423 million, including $196 million of share repurchases.

    HOUSTON and LONDON, July 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the second quarter of 2025.

    “We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects the benefits of structural cost improvements and continued deployment of our business system, which is driving higher productivity, stronger operating leverage and more durable earnings across the company,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

    “IET orders totaled $3.5 billion in the quarter, resulting in another record backlog for the segment. Importantly, order momentum remained strong, supported by more than $550 million of data center related orders, despite the absence of large LNG awards. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET.”

    “We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE.”

    “During the quarter, we also announced three strategic transactions to advance our portfolio optimization strategy, reinforcing efforts to enhance the durability of earnings and cash flow while creating long-term value for shareholders. These actions are designed to unlock value from non-core businesses in our portfolio and redeploy that capital into higher-margin opportunities that fit our financial and strategic frameworks.”

    “We are progressing with our strategy of positioning the company for sustainable, differentiated growth and commend the focus and dedication of our people in executing this strategy,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

        Three Months Ended   Variance
    (in millions except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 7,032   $ 6,459   $ 7,526     9 % (7 %)
    Revenue     6,910     6,427     7,139     8 % (3 %)
    Net income attributable to Baker Hughes     701     402     579     74 % 21 %
    Adjusted net income attributable to Baker Hughes*     623     509     568     22 % 10 %
    Adjusted EBITDA*     1,212     1,037     1,130     17 % 7 %
    Diluted earnings per share (EPS)     0.71     0.40     0.58     76 % 22 %
    Adjusted diluted EPS*     0.63     0.51     0.57     23 % 11 %
    Cash flow from operating activities     510     709     348     (28 %) 47 %
    Free cash flow*     239     454     106     (47 %) F


    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    Quarter Highlights

    Executing our portfolio optimization strategy

    In the second quarter, Baker Hughes announced three strategic transactions, all of which reflect a disciplined capital allocation framework and a focus on core businesses with strong return potential.

    First, the Company signed an agreement to form a joint venture with a subsidiary of Cactus, Inc., contributing the Oilfield Services & Equipment’s (“OFSE“) Surface Pressure Control (“SPC“) product line in exchange for approximately $345 million while maintaining a minority ownership stake.

    Second, the Company announced an agreement to sell the Precision Sensors & Instrumentation (“PSI“) product line within Industrial & Energy Technology (“IET“) to Crane Company for approximately $1.15 billion. These proceeds will enhance the Company’s flexibility to reinvest in higher-growth, higher-return areas that support further margin expansion and improved returns.

    Finally, Baker Hughes agreed to acquire Continental Disc Corporation (“CDC“), a leading provider of pressure management solutions, for approximately $540 million. The CDC acquisition strengthens the IET Industrial Products portfolio with a highly complementary, margin-accretive business that expands the Company’s position in the flow and pressure control market and enhances recurring, lifecycle driven revenue.

    Key awards and technology achievements

    The Company continued to support the development of critical data center projects, with year-to-date data center awards of more than $650 million. IET received an award to supply 30 NovaLT™ turbines, representing our largest data center award to-date. The turbines, alongside other associated Baker Hughes equipment, will deliver up to 500 megawatts (MW) of reliable and efficient power for data center development across various U.S. locations.

    Frontier Infrastructure awarded a contract for NovaLT™ turbines, delivering up to 270 MW of power for its data center projects in Wyoming and Texas. This follows the March 2025 enterprise-wide agreement to accelerate large scale carbon capture and storage (“CCS“) and power solutions.

    Baker Hughes continues to grow the pipeline of future data center opportunities. At the Saudi-U.S. Investment Forum in May, the Company signed an MoU with DataVolt that plans to power data centers globally, including the NEOM project in the Kingdom that intends to utilize Baker Hughes’ multi-fuel NovaLT™ technology solution.

    In addition to growing demand from data center applications, IET experienced increased demand for NovaLT™ turbines in the gas infrastructure sector. During the second quarter, the segment secured an award for four gas turbines to support Aramco’s Master Gas System III pipeline project. Including this award, we have secured a total of $2.9 billion in gas infrastructure equipment orders over the past six quarters.

    Highlighting the durability of IET’s lifecycle model, the segment was awarded several aftermarket services contracts. In Gas Technology Services (“GTS“), the Company secured more than $350 million of Contractual Services Agreements (“CSA“) during the quarter. We signed a maintenance agreement with Belayim Petroleum Company (“Petrobel”) to improve uptime and reliability of critical turbomachinery equipment in Egypt. Also in GTS, we renewed a multi-year service agreement with Oman LNG, including resident engineering support along with digital remote monitoring and diagnostics services delivered through iCenter™.

    The Company gained further traction with New Energy globally, with year-to-date bookings now totaling $1.25 billion. In Climate Technology Solutions (“CTS“), we secured one of our largest CCS orders to-date, providing compression technology for a CCS hub in the Middle East. Also in CTS, we signed a framework agreement with Energinet in Denmark to supply 16 reciprocating compressor packages, supporting an increase in biogas production while driving methane and CO2 emissions reduction for gas infrastructure across the country.

    Industrial Technology continued to demonstrate strong momentum across multiple end markets. In Industrial Solutions, we secured a variety of awards for our Cordant™ suite of solutions. This includes an award from a large NOC to deploy Asset Performance Management across several compression stations in the Middle East, and an award from NOVA Chemicals to optimize maintenance spend and maximize production.

    OFSE maintained strong momentum in Mature Assets Solutions around the globe. In Angola, OFSE was awarded multi-year production solutions contracts for chemicals, artificial lift, and digital services to support a major operator’s offshore activities. In Kazakhstan, the TOPAN and Baker Hughes joint venture secured a critical production chemicals and services award. In Norway, Equinor awarded OFSE a contract to industrialize offshore plug and abandonment (“P&A“) operations in the Oseberg East field, which followed the announcement of a multi-year P&A framework agreement for integrated well services.

    OFSE saw continued adoption of Leucipa™ automated field production solution, securing an award from Repsol for next-generation AI capabilities following the MoU signed in October 2024. The Company also signed an agreement with ENI to deploy Leucipa for electric submersible pumps (“ESP“) optimization and AI-powered predictive failure analytics in the Middle East.

    Also in the Middle East, Baker Hughes signed a master services agreement with Aramco for installation and maintenance of ESPs across the Kingdom of Saudi Arabia.

    In North America, OFSE secured a multi-year contract to provide drag reducing chemicals to be deployed on Genesis Energy’s Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy. To support this agreement, OFSE will expand its chemicals manufacturing footprint and deploy Leucipa. Additionally, bp awarded OFSE a multi-year chemicals management services contract to optimize throughput and asset reliability in the U.S. Gulf Coast.

    In Germany, OFSE successfully drilled Lower Saxony’s first productive deep geothermal exploration well, a project that leverages OFSE’s integrated well construction and production capabilities and the Company’s industry-leading subsurface-to-surface digital solutions to monitor and optimize operational performance.

    Consolidated Financial Results

    Revenue for the quarter was $6,910 million, an increase of 8% sequentially and down $229 million year-over-year. The decrease in revenue year-over-year was driven by a decrease in OFSE partially offset by an increase in IET.

    The Company’s total book-to-bill ratio in the second quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

    Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the second quarter of 2025 was $701 million. Net income increased $299 million sequentially and increased $122 million year-over-year.

    Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 was $623 million, which excludes adjustments totaling $78 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the second quarter of 2025 was up 22% sequentially and up 10% year-over-year.

    Depreciation and amortization for the second quarter of 2025 was $293 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 was $1,212 million, which excludes adjustments totaling $102 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the second quarter was up 17% sequentially and up 7% year-over-year.

    The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by an increase in volume, favorable FX, and overall productivity. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost out initiatives, favorable FX, partially offset by lower volume in OFSE, and cost inflation in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the second quarter of 2025 ended at $34 billion, an increase of $0.8 billion from the first quarter of 2025. OFSE RPO was $2.7 billion, down 3% sequentially, while IET RPO was $31.3 billion, up 3% sequentially. Within IET RPO, GTE RPO was $11.3 billion, and GTS RPO was $15.6 billion.

    Income tax expense in the second quarter of 2025 was $256 million.

    Other (income) expense, net in the second quarter of 2025 was $(134) million, primarily related to changes in fair value for equity securities of $(119) million.

    GAAP diluted earnings per share was $0.71. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.63. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $510 million for the second quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $239 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $271 million for the second quarter of 2025, of which $184 million was for OFSE and $68 million was for IET.

    Results by Reporting Segment

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,503   $ 3,281   $ 4,068     7 % (14 %)
    Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    EBITDA   $ 677   $ 623   $ 716     9 % (5 %)
    EBITDA margin     18.7 %   17.8 %   17.8 %   0.9pts 0.9pts
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Well Construction   $ 921   $ 892   $ 1,090     3 % (16 %)
    Completions, Intervention, and Measurements     935     925     1,118     1 % (16 %)
    Production Solutions     968     899     958     8 % 1 %
    Subsea & Surface Pressure Systems     793     782     845     1 % (6 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    (in millions)   Three Months Ended   Variance
    Revenue by Geographic Region   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    Latin America     639     568     663     12 % (4 %)
    Europe/CIS/Sub-Saharan Africa     653     580     827     13 % (21 %)
    Middle East/Asia     1,398     1,429     1,498     (2 %) (7 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
                   
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    International   $ 2,689   $ 2,577   $ 2,988     4 % (10 %)


    EBITDA excludes depreciation and amortization of     $233 million, $226 million, and $223 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,503 million for the second quarter of 2025 increased by 7% sequentially. Subsea and Surface Pressure Systems orders were $698 million, up 31% sequentially, and down 21% year-over-year.

    OFSE revenue of $3,617 million for the second quarter of 2025 was up 3% sequentially, and down 10% year-over-year.

    North America revenue was $928 million, up 1% sequentially. International revenue was $2,689 million, up 4% sequentially, with increase in all regions with the exception of Middle East and Asia.

    Segment EBITDA for the second quarter of 2025 was $677 million, an increase of $54 million, or 9% sequentially. The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, volume increase, partially offset by inflation and revenue mix.

    Industrial & Energy Technology

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %
    EBITDA   $ 585   $ 501   $ 497     17 % 18 %
    EBITDA margin     17.8 %   17.1 %   15.9 %   0.7pts 1.9pts
    (in millions)   Three Months Ended   Variance
    Orders by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 781   $ 1,335   $ 1,493     (42 %) (48 %)
    Gas Technology Services     986     913     769     8 % 28 %
    Total Gas Technology     1,767     2,248     2,261     (21 %) (22 %)
    Industrial Products     513     501     524     2 % (2 %)
    Industrial Solutions     327     281     281     16 % 16 %
    Total Industrial Technology     839     782     805     7 % 4 %
    Climate Technology Solutions     923     148     392     F F
    Total Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 1,624   $ 1,456   $ 1,539     12 % 6 %
    Gas Technology Services     752     592     691     27 % 9 %
    Total Gas Technology     2,377     2,047     2,230     16 % 7 %
    Industrial Products     488     445     509     10 % (4 %)
    Industrial Solutions     273     258     262     6 % 4 %
    Total Industrial Technology     761     703     770     8 % (1 %)
    Climate Technology Solutions     156     178     128     (12 %) 22 %
    Total Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %


    EBITDA excludes depreciation and amortization of     $56 million, $53 million, and $55 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    IET orders of $3,530 million for the second quarter of 2025 increased by $72 million, or 2% year-over-year. The increase was driven primarily by Climate Technology Solutions and partially offset by Gas Technology.

    IET revenue of $3,293 million for the second quarter of 2025 increased $165 million, or 5% year-over-year. The increase was driven by Gas Technology Equipment, up $85 million or 6% year-over-year, Gas Technology Services, up $61 million or 9% year-over-year, and Climate Technology Solutions, up $28 million or 22% year-over-year.

    Segment EBITDA for the quarter was $585 million, an increase of $88 million, or 18% year-over-year. The year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Net income attributable to noncontrolling interests     10     7     2  
    Provision for income taxes     256     152     243  
    Interest expense, net     54     51     47  
    Depreciation & amortization     293     285     283  
    Change in fair value of equity securities (1)     (119 )   140     (19 )
    Other charges and credits (1)     17     —     (6 )
    Adjusted EBITDA (non-GAAP)     1,212     1,037     1,130  
    Corporate costs     78     85     83  
    Other (income) / expense not allocated to segments     (28 )   1     —  
    Total Segment EBITDA (non-GAAP)   $ 1,262   $ 1,124   $ 1,213  
    OFSE     677     623     716  
    IET     585     501     497  


    (1)     Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

    Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

        Three Months Ended
    (in millions, except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Change in fair value of equity securities     (119 )   140     (19 )
    Other adjustments     17     —     14  
    Tax adjustments(1)     24     (32 )   (6 )
    Total adjustments, net of income tax     (78 )   108     (11 )
    Less: adjustments attributable to noncontrolling interests     —     —     —  
    Adjustments attributable to Baker Hughes     (78 )   108     (11 )
    Adjusted net income attributable to Baker Hughes (non-GAAP)   $ 623   $ 509   $ 568  
             
    Denominator:        
    Weighted-average shares of Class A common stock outstanding diluted     991     999     1,001  
    Adjusted earnings per share – diluted (non-GAAP)   $ 0.63   $ 0.51   $ 0.57  


    (1)     All periods reflect the tax associated with the other (income) loss adjustments.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net cash flows from operating activities (GAAP)   $ 510   $ 709   $ 348  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets     (271 )   (255 )   (242 )
    Free cash flow (non-GAAP)   $ 239   $ 454   $ 106  

    Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.


    Financial Tables (GAAP)

    Condensed Consolidated Statements of Income (Loss)
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions, except per share amounts)     2025     2024     2025     2024  
    Revenue   $ 6,910   $ 7,139   $ 13,337   $ 13,557  
    Costs and expenses:          
    Cost of revenue     5,295     5,493     10,247     10,469  
    Selling, general and administrative     567     643     1,144     1,261  
    Research and development costs     161     158     307     322  
    Other (income) expense, net     (134 )   (26 )   6     (48 )
    Interest expense, net     54     47     105     88  
    Income before income taxes     967     824     1,528     1,465  
    Provision for income taxes     (256 )   (243 )   (408 )   (421 )
    Net income     711     581     1,120     1,044  
    Less: Net income attributable to noncontrolling interests     10     2     17     10  
    Net income attributable to Baker Hughes Company   $ 701   $ 579   $ 1,103   $ 1,034  
               
    Per share amounts:      
    Basic income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.04  
    Diluted income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.03  
               
    Weighted average shares:          
    Class A basic     988     996     990     997  
    Class A diluted     991     1,001     995     1,002  
               
    Cash dividend per Class A common stock   $ 0.23   $ 0.21   $ 0.46   $ 0.42  
    Condensed Consolidated Statements of Financial Position
    (Unaudited)
     
    (In millions)   June 30, 2025 December 31, 2024
    ASSETS
    Current Assets:      
    Cash and cash equivalents   $ 3,087   $ 3,364  
    Current receivables, net     6,511     7,122  
    Inventories, net     5,105     4,954  
    All other current assets     2,915     1,771  
    Total current assets     17,618     17,211  
    Property, plant and equipment, less accumulated depreciation     5,176     5,127  
    Goodwill     5,801     6,078  
    Other intangible assets, net     3,919     3,951  
    Contract and other deferred assets     1,841     1,730  
    All other assets     4,385     4,266  
    Total assets   $ 38,740   $ 38,363  
    LIABILITIES AND EQUITY
    Current Liabilities:      
    Accounts payable   $ 4,340   $ 4,542  
    Short-term debt     66     53  
    Progress collections and deferred income     5,680     5,672  
    All other current liabilities     2,429     2,724  
    Total current liabilities     12,515     12,991  
    Long-term debt     5,968     5,970  
    Liabilities for pensions and other postretirement benefits     997     988  
    All other liabilities     1,392     1,359  
    Equity     17,868     17,055  
    Total liabilities and equity   $ 38,740   $ 38,363  
           
    Outstanding Baker Hughes Company shares:      
    Class A common stock     985     990  
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions)     2025     2025     2024  
    Cash flows from operating activities:        
    Net income   $ 711   $ 1,120   $ 1,044  
    Adjustments to reconcile net income to net cash flows from operating activities:        
    Depreciation and amortization     293     579     566  
    Stock-based compensation cost     52     102     101  
    Change in fair value of equity securities     (119 )   21     (71 )
    (Benefit) provision for deferred income taxes     36     (17 )   33  
    Working capital     (120 )   98     (36 )
    Other operating items, net     (343 )   (684 )   (505 )
    Net cash flows provided by operating activities     510     1,219     1,132  
    Cash flows from investing activities:        
    Expenditures for capital assets     (301 )   (601 )   (625 )
    Proceeds from disposal of assets     30     74     101  
    Other investing items, net     (15 )   (69 )   (6 )
    Net cash flows used in investing activities     (286 )   (596 )   (530 )
    Cash flows from financing activities:        
    Repayment of long-term debt     —     —     (125 )
    Dividends paid     (227 )   (456 )   (419 )
    Repurchase of Class A common stock     (196 )   (384 )   (324 )
    Other financing items, net     (20 )   (105 )   (61 )
    Net cash flows used in financing activities     (443 )   (945 )   (929 )
    Effect of currency exchange rate changes on cash and cash equivalents     29     45     (35 )
    Decrease in cash and cash equivalents     (190 )   (277 )   (362 )
    Cash and cash equivalents, beginning of period     3,277     3,364     2,646  
    Cash and cash equivalents, end of period   $ 3,087   $ 3,087   $ 2,284  
    Supplemental cash flows disclosures:        
    Income taxes paid, net of refunds   $ 211   $ 418   $ 336  
    Interest paid   $ 98   $ 148   $ 150  


    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, July 23, 2025, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain 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, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    About Baker Hughes:

    Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

    For more information, please contact:

    Investor Relations

    Chase Mulvehill
    +1 346-297-2561
    investor.relations@bakerhughes.com

    Media Relations

    Adrienne M. Lynch
    +1 713-906-8407
    adrienne.lynch@bakerhughes.com

    The MIL Network –

  • MIL-OSI: Baker Hughes Company Announces Second-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Second-quarter highlights

    • Orders of $7.0 billion, including $3.5 billion of IET orders.
    • RPO of $34.0 billion, including record IET RPO of $31.3 billion.
    • Revenue of $6.9 billion, down 3% year-over-year.
    • Attributable net income of $701 million.
    • GAAP diluted EPS of $0.71 and adjusted diluted EPS* of $0.63.
    • Adjusted EBITDA* of $1,212 million, up 7% year-over-year.
    • Cash flows from operating activities of $510 million and free cash flow* of $239 million.
    • Returns to shareholders of $423 million, including $196 million of share repurchases.

    HOUSTON and LONDON, July 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the second quarter of 2025.

    “We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects the benefits of structural cost improvements and continued deployment of our business system, which is driving higher productivity, stronger operating leverage and more durable earnings across the company,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

    “IET orders totaled $3.5 billion in the quarter, resulting in another record backlog for the segment. Importantly, order momentum remained strong, supported by more than $550 million of data center related orders, despite the absence of large LNG awards. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET.”

    “We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE.”

    “During the quarter, we also announced three strategic transactions to advance our portfolio optimization strategy, reinforcing efforts to enhance the durability of earnings and cash flow while creating long-term value for shareholders. These actions are designed to unlock value from non-core businesses in our portfolio and redeploy that capital into higher-margin opportunities that fit our financial and strategic frameworks.”

    “We are progressing with our strategy of positioning the company for sustainable, differentiated growth and commend the focus and dedication of our people in executing this strategy,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

        Three Months Ended   Variance
    (in millions except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 7,032   $ 6,459   $ 7,526     9 % (7 %)
    Revenue     6,910     6,427     7,139     8 % (3 %)
    Net income attributable to Baker Hughes     701     402     579     74 % 21 %
    Adjusted net income attributable to Baker Hughes*     623     509     568     22 % 10 %
    Adjusted EBITDA*     1,212     1,037     1,130     17 % 7 %
    Diluted earnings per share (EPS)     0.71     0.40     0.58     76 % 22 %
    Adjusted diluted EPS*     0.63     0.51     0.57     23 % 11 %
    Cash flow from operating activities     510     709     348     (28 %) 47 %
    Free cash flow*     239     454     106     (47 %) F


    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    Quarter Highlights

    Executing our portfolio optimization strategy

    In the second quarter, Baker Hughes announced three strategic transactions, all of which reflect a disciplined capital allocation framework and a focus on core businesses with strong return potential.

    First, the Company signed an agreement to form a joint venture with a subsidiary of Cactus, Inc., contributing the Oilfield Services & Equipment’s (“OFSE“) Surface Pressure Control (“SPC“) product line in exchange for approximately $345 million while maintaining a minority ownership stake.

    Second, the Company announced an agreement to sell the Precision Sensors & Instrumentation (“PSI“) product line within Industrial & Energy Technology (“IET“) to Crane Company for approximately $1.15 billion. These proceeds will enhance the Company’s flexibility to reinvest in higher-growth, higher-return areas that support further margin expansion and improved returns.

    Finally, Baker Hughes agreed to acquire Continental Disc Corporation (“CDC“), a leading provider of pressure management solutions, for approximately $540 million. The CDC acquisition strengthens the IET Industrial Products portfolio with a highly complementary, margin-accretive business that expands the Company’s position in the flow and pressure control market and enhances recurring, lifecycle driven revenue.

    Key awards and technology achievements

    The Company continued to support the development of critical data center projects, with year-to-date data center awards of more than $650 million. IET received an award to supply 30 NovaLT™ turbines, representing our largest data center award to-date. The turbines, alongside other associated Baker Hughes equipment, will deliver up to 500 megawatts (MW) of reliable and efficient power for data center development across various U.S. locations.

    Frontier Infrastructure awarded a contract for NovaLT™ turbines, delivering up to 270 MW of power for its data center projects in Wyoming and Texas. This follows the March 2025 enterprise-wide agreement to accelerate large scale carbon capture and storage (“CCS“) and power solutions.

    Baker Hughes continues to grow the pipeline of future data center opportunities. At the Saudi-U.S. Investment Forum in May, the Company signed an MoU with DataVolt that plans to power data centers globally, including the NEOM project in the Kingdom that intends to utilize Baker Hughes’ multi-fuel NovaLT™ technology solution.

    In addition to growing demand from data center applications, IET experienced increased demand for NovaLT™ turbines in the gas infrastructure sector. During the second quarter, the segment secured an award for four gas turbines to support Aramco’s Master Gas System III pipeline project. Including this award, we have secured a total of $2.9 billion in gas infrastructure equipment orders over the past six quarters.

    Highlighting the durability of IET’s lifecycle model, the segment was awarded several aftermarket services contracts. In Gas Technology Services (“GTS“), the Company secured more than $350 million of Contractual Services Agreements (“CSA“) during the quarter. We signed a maintenance agreement with Belayim Petroleum Company (“Petrobel”) to improve uptime and reliability of critical turbomachinery equipment in Egypt. Also in GTS, we renewed a multi-year service agreement with Oman LNG, including resident engineering support along with digital remote monitoring and diagnostics services delivered through iCenter™.

    The Company gained further traction with New Energy globally, with year-to-date bookings now totaling $1.25 billion. In Climate Technology Solutions (“CTS“), we secured one of our largest CCS orders to-date, providing compression technology for a CCS hub in the Middle East. Also in CTS, we signed a framework agreement with Energinet in Denmark to supply 16 reciprocating compressor packages, supporting an increase in biogas production while driving methane and CO2 emissions reduction for gas infrastructure across the country.

    Industrial Technology continued to demonstrate strong momentum across multiple end markets. In Industrial Solutions, we secured a variety of awards for our Cordant™ suite of solutions. This includes an award from a large NOC to deploy Asset Performance Management across several compression stations in the Middle East, and an award from NOVA Chemicals to optimize maintenance spend and maximize production.

    OFSE maintained strong momentum in Mature Assets Solutions around the globe. In Angola, OFSE was awarded multi-year production solutions contracts for chemicals, artificial lift, and digital services to support a major operator’s offshore activities. In Kazakhstan, the TOPAN and Baker Hughes joint venture secured a critical production chemicals and services award. In Norway, Equinor awarded OFSE a contract to industrialize offshore plug and abandonment (“P&A“) operations in the Oseberg East field, which followed the announcement of a multi-year P&A framework agreement for integrated well services.

    OFSE saw continued adoption of Leucipa™ automated field production solution, securing an award from Repsol for next-generation AI capabilities following the MoU signed in October 2024. The Company also signed an agreement with ENI to deploy Leucipa for electric submersible pumps (“ESP“) optimization and AI-powered predictive failure analytics in the Middle East.

    Also in the Middle East, Baker Hughes signed a master services agreement with Aramco for installation and maintenance of ESPs across the Kingdom of Saudi Arabia.

    In North America, OFSE secured a multi-year contract to provide drag reducing chemicals to be deployed on Genesis Energy’s Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy. To support this agreement, OFSE will expand its chemicals manufacturing footprint and deploy Leucipa. Additionally, bp awarded OFSE a multi-year chemicals management services contract to optimize throughput and asset reliability in the U.S. Gulf Coast.

    In Germany, OFSE successfully drilled Lower Saxony’s first productive deep geothermal exploration well, a project that leverages OFSE’s integrated well construction and production capabilities and the Company’s industry-leading subsurface-to-surface digital solutions to monitor and optimize operational performance.

    Consolidated Financial Results

    Revenue for the quarter was $6,910 million, an increase of 8% sequentially and down $229 million year-over-year. The decrease in revenue year-over-year was driven by a decrease in OFSE partially offset by an increase in IET.

    The Company’s total book-to-bill ratio in the second quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

    Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the second quarter of 2025 was $701 million. Net income increased $299 million sequentially and increased $122 million year-over-year.

    Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 was $623 million, which excludes adjustments totaling $78 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the second quarter of 2025 was up 22% sequentially and up 10% year-over-year.

    Depreciation and amortization for the second quarter of 2025 was $293 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 was $1,212 million, which excludes adjustments totaling $102 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the second quarter was up 17% sequentially and up 7% year-over-year.

    The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by an increase in volume, favorable FX, and overall productivity. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost out initiatives, favorable FX, partially offset by lower volume in OFSE, and cost inflation in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the second quarter of 2025 ended at $34 billion, an increase of $0.8 billion from the first quarter of 2025. OFSE RPO was $2.7 billion, down 3% sequentially, while IET RPO was $31.3 billion, up 3% sequentially. Within IET RPO, GTE RPO was $11.3 billion, and GTS RPO was $15.6 billion.

    Income tax expense in the second quarter of 2025 was $256 million.

    Other (income) expense, net in the second quarter of 2025 was $(134) million, primarily related to changes in fair value for equity securities of $(119) million.

    GAAP diluted earnings per share was $0.71. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.63. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $510 million for the second quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $239 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $271 million for the second quarter of 2025, of which $184 million was for OFSE and $68 million was for IET.

    Results by Reporting Segment

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,503   $ 3,281   $ 4,068     7 % (14 %)
    Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    EBITDA   $ 677   $ 623   $ 716     9 % (5 %)
    EBITDA margin     18.7 %   17.8 %   17.8 %   0.9pts 0.9pts
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Well Construction   $ 921   $ 892   $ 1,090     3 % (16 %)
    Completions, Intervention, and Measurements     935     925     1,118     1 % (16 %)
    Production Solutions     968     899     958     8 % 1 %
    Subsea & Surface Pressure Systems     793     782     845     1 % (6 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    (in millions)   Three Months Ended   Variance
    Revenue by Geographic Region   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    Latin America     639     568     663     12 % (4 %)
    Europe/CIS/Sub-Saharan Africa     653     580     827     13 % (21 %)
    Middle East/Asia     1,398     1,429     1,498     (2 %) (7 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
                   
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    International   $ 2,689   $ 2,577   $ 2,988     4 % (10 %)


    EBITDA excludes depreciation and amortization of     $233 million, $226 million, and $223 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,503 million for the second quarter of 2025 increased by 7% sequentially. Subsea and Surface Pressure Systems orders were $698 million, up 31% sequentially, and down 21% year-over-year.

    OFSE revenue of $3,617 million for the second quarter of 2025 was up 3% sequentially, and down 10% year-over-year.

    North America revenue was $928 million, up 1% sequentially. International revenue was $2,689 million, up 4% sequentially, with increase in all regions with the exception of Middle East and Asia.

    Segment EBITDA for the second quarter of 2025 was $677 million, an increase of $54 million, or 9% sequentially. The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, volume increase, partially offset by inflation and revenue mix.

    Industrial & Energy Technology

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %
    EBITDA   $ 585   $ 501   $ 497     17 % 18 %
    EBITDA margin     17.8 %   17.1 %   15.9 %   0.7pts 1.9pts
    (in millions)   Three Months Ended   Variance
    Orders by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 781   $ 1,335   $ 1,493     (42 %) (48 %)
    Gas Technology Services     986     913     769     8 % 28 %
    Total Gas Technology     1,767     2,248     2,261     (21 %) (22 %)
    Industrial Products     513     501     524     2 % (2 %)
    Industrial Solutions     327     281     281     16 % 16 %
    Total Industrial Technology     839     782     805     7 % 4 %
    Climate Technology Solutions     923     148     392     F F
    Total Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 1,624   $ 1,456   $ 1,539     12 % 6 %
    Gas Technology Services     752     592     691     27 % 9 %
    Total Gas Technology     2,377     2,047     2,230     16 % 7 %
    Industrial Products     488     445     509     10 % (4 %)
    Industrial Solutions     273     258     262     6 % 4 %
    Total Industrial Technology     761     703     770     8 % (1 %)
    Climate Technology Solutions     156     178     128     (12 %) 22 %
    Total Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %


    EBITDA excludes depreciation and amortization of     $56 million, $53 million, and $55 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    IET orders of $3,530 million for the second quarter of 2025 increased by $72 million, or 2% year-over-year. The increase was driven primarily by Climate Technology Solutions and partially offset by Gas Technology.

    IET revenue of $3,293 million for the second quarter of 2025 increased $165 million, or 5% year-over-year. The increase was driven by Gas Technology Equipment, up $85 million or 6% year-over-year, Gas Technology Services, up $61 million or 9% year-over-year, and Climate Technology Solutions, up $28 million or 22% year-over-year.

    Segment EBITDA for the quarter was $585 million, an increase of $88 million, or 18% year-over-year. The year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Net income attributable to noncontrolling interests     10     7     2  
    Provision for income taxes     256     152     243  
    Interest expense, net     54     51     47  
    Depreciation & amortization     293     285     283  
    Change in fair value of equity securities (1)     (119 )   140     (19 )
    Other charges and credits (1)     17     —     (6 )
    Adjusted EBITDA (non-GAAP)     1,212     1,037     1,130  
    Corporate costs     78     85     83  
    Other (income) / expense not allocated to segments     (28 )   1     —  
    Total Segment EBITDA (non-GAAP)   $ 1,262   $ 1,124   $ 1,213  
    OFSE     677     623     716  
    IET     585     501     497  


    (1)     Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

    Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

        Three Months Ended
    (in millions, except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Change in fair value of equity securities     (119 )   140     (19 )
    Other adjustments     17     —     14  
    Tax adjustments(1)     24     (32 )   (6 )
    Total adjustments, net of income tax     (78 )   108     (11 )
    Less: adjustments attributable to noncontrolling interests     —     —     —  
    Adjustments attributable to Baker Hughes     (78 )   108     (11 )
    Adjusted net income attributable to Baker Hughes (non-GAAP)   $ 623   $ 509   $ 568  
             
    Denominator:        
    Weighted-average shares of Class A common stock outstanding diluted     991     999     1,001  
    Adjusted earnings per share – diluted (non-GAAP)   $ 0.63   $ 0.51   $ 0.57  


    (1)     All periods reflect the tax associated with the other (income) loss adjustments.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net cash flows from operating activities (GAAP)   $ 510   $ 709   $ 348  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets     (271 )   (255 )   (242 )
    Free cash flow (non-GAAP)   $ 239   $ 454   $ 106  

    Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.


    Financial Tables (GAAP)

    Condensed Consolidated Statements of Income (Loss)
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions, except per share amounts)     2025     2024     2025     2024  
    Revenue   $ 6,910   $ 7,139   $ 13,337   $ 13,557  
    Costs and expenses:          
    Cost of revenue     5,295     5,493     10,247     10,469  
    Selling, general and administrative     567     643     1,144     1,261  
    Research and development costs     161     158     307     322  
    Other (income) expense, net     (134 )   (26 )   6     (48 )
    Interest expense, net     54     47     105     88  
    Income before income taxes     967     824     1,528     1,465  
    Provision for income taxes     (256 )   (243 )   (408 )   (421 )
    Net income     711     581     1,120     1,044  
    Less: Net income attributable to noncontrolling interests     10     2     17     10  
    Net income attributable to Baker Hughes Company   $ 701   $ 579   $ 1,103   $ 1,034  
               
    Per share amounts:      
    Basic income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.04  
    Diluted income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.03  
               
    Weighted average shares:          
    Class A basic     988     996     990     997  
    Class A diluted     991     1,001     995     1,002  
               
    Cash dividend per Class A common stock   $ 0.23   $ 0.21   $ 0.46   $ 0.42  
    Condensed Consolidated Statements of Financial Position
    (Unaudited)
     
    (In millions)   June 30, 2025 December 31, 2024
    ASSETS
    Current Assets:      
    Cash and cash equivalents   $ 3,087   $ 3,364  
    Current receivables, net     6,511     7,122  
    Inventories, net     5,105     4,954  
    All other current assets     2,915     1,771  
    Total current assets     17,618     17,211  
    Property, plant and equipment, less accumulated depreciation     5,176     5,127  
    Goodwill     5,801     6,078  
    Other intangible assets, net     3,919     3,951  
    Contract and other deferred assets     1,841     1,730  
    All other assets     4,385     4,266  
    Total assets   $ 38,740   $ 38,363  
    LIABILITIES AND EQUITY
    Current Liabilities:      
    Accounts payable   $ 4,340   $ 4,542  
    Short-term debt     66     53  
    Progress collections and deferred income     5,680     5,672  
    All other current liabilities     2,429     2,724  
    Total current liabilities     12,515     12,991  
    Long-term debt     5,968     5,970  
    Liabilities for pensions and other postretirement benefits     997     988  
    All other liabilities     1,392     1,359  
    Equity     17,868     17,055  
    Total liabilities and equity   $ 38,740   $ 38,363  
           
    Outstanding Baker Hughes Company shares:      
    Class A common stock     985     990  
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions)     2025     2025     2024  
    Cash flows from operating activities:        
    Net income   $ 711   $ 1,120   $ 1,044  
    Adjustments to reconcile net income to net cash flows from operating activities:        
    Depreciation and amortization     293     579     566  
    Stock-based compensation cost     52     102     101  
    Change in fair value of equity securities     (119 )   21     (71 )
    (Benefit) provision for deferred income taxes     36     (17 )   33  
    Working capital     (120 )   98     (36 )
    Other operating items, net     (343 )   (684 )   (505 )
    Net cash flows provided by operating activities     510     1,219     1,132  
    Cash flows from investing activities:        
    Expenditures for capital assets     (301 )   (601 )   (625 )
    Proceeds from disposal of assets     30     74     101  
    Other investing items, net     (15 )   (69 )   (6 )
    Net cash flows used in investing activities     (286 )   (596 )   (530 )
    Cash flows from financing activities:        
    Repayment of long-term debt     —     —     (125 )
    Dividends paid     (227 )   (456 )   (419 )
    Repurchase of Class A common stock     (196 )   (384 )   (324 )
    Other financing items, net     (20 )   (105 )   (61 )
    Net cash flows used in financing activities     (443 )   (945 )   (929 )
    Effect of currency exchange rate changes on cash and cash equivalents     29     45     (35 )
    Decrease in cash and cash equivalents     (190 )   (277 )   (362 )
    Cash and cash equivalents, beginning of period     3,277     3,364     2,646  
    Cash and cash equivalents, end of period   $ 3,087   $ 3,087   $ 2,284  
    Supplemental cash flows disclosures:        
    Income taxes paid, net of refunds   $ 211   $ 418   $ 336  
    Interest paid   $ 98   $ 148   $ 150  


    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, July 23, 2025, the content of which is not part of this earnings release. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at: investors.bakerhughes.com. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain 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, (each a “forward-looking statement”). Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal” or other similar words or expressions. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    About Baker Hughes:

    Baker Hughes (Nasdaq: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

    For more information, please contact:

    Investor Relations

    Chase Mulvehill
    +1 346-297-2561
    investor.relations@bakerhughes.com

    Media Relations

    Adrienne M. Lynch
    +1 713-906-8407
    adrienne.lynch@bakerhughes.com

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Quarterly Highlights

    Merger with The First Bancshares, Inc.

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

    Earnings

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

    Balance Sheet

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

    Capital and Stock Repurchase Program

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

    Credit Quality

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

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

    Income Statement

    (Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Interest income                
    Loans held for investment $ 301,794 $ 196,566 $ 199,240   $ 202,655   $ 198,397     $ 498,360 $ 390,787  
    Loans held for sale   4,639   3,008   3,564     4,212     3,530       7,647   5,838  
    Securities   28,408   12,117   10,510     10,304     10,410       40,525   21,110  
    Other   9,057   8,639   12,030     11,872     7,874       17,696   15,655  
    Total interest income   343,898   220,330   225,344     229,043     220,211       564,228   433,390  
    Interest expense                
    Deposits   111,921   79,386   85,571     90,787     87,621       191,307   170,234  
    Borrowings   13,118   6,747   6,891     7,258     7,564       19,865   14,840  
    Total interest expense   125,039   86,133   92,462     98,045     95,185       211,172   185,074  
    Net interest income   218,859   134,197   132,882     130,998     125,026       353,056   248,316  
    Provision for credit losses                
    Provision for loan losses   75,400   2,050   3,100     1,210     4,300       77,450   6,938  
    Provision for (Recovery of) unfunded commitments   5,922   2,700   (500 )   (275 )   (1,000 )     8,622   (1,200 )
    Total provision for credit losses   81,322   4,750   2,600     935     3,300       86,072   5,738  
    Net interest income after provision for credit losses   137,537   129,447   130,282     130,063     121,726       266,984   242,578  
    Noninterest income   48,334   36,395   34,218     89,299     38,762       84,729   80,143  
    Noninterest expense   183,204   113,876   114,747     121,983     111,976       297,080   224,888  
    Income before income taxes   2,667   51,966   49,753     97,379     48,512       54,633   97,833  
    Income taxes   1,649   10,448   5,006     24,924     9,666       12,097   19,578  
    Net income $ 1,018 $ 41,518 $ 44,747   $ 72,455   $ 38,846     $ 42,536 $ 78,255  
                     
    Adjusted net income (non-GAAP)(1) $ 65,877 $ 42,111 $ 46,458   $ 42,960   $ 38,846     $ 107,987 $ 75,421  
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1) $ 103,001 $ 57,507 $ 54,177   $ 56,238   $ 51,812     $ 160,508 $ 100,043  
                     
    Basic earnings per share $ 0.01 $ 0.65 $ 0.70   $ 1.18   $ 0.69     $ 0.54 $ 1.39  
    Diluted earnings per share   0.01   0.65   0.70     1.18     0.69       0.53   1.38  
    Adjusted diluted earnings per share (non-GAAP)(1)   0.69   0.66   0.73     0.70     0.69       1.36   1.33  
    Average basic shares outstanding   94,580,927   63,666,419   63,565,437     61,217,094     56,342,909       79,209,073   56,275,628  
    Average diluted shares outstanding   95,136,160   64,028,025   64,056,303     61,632,448     56,684,626       79,671,775   56,607,947  
    Cash dividends per common share $ 0.22 $ 0.22 $ 0.22   $ 0.22   $ 0.22     $ 0.44 $ 0.44  

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

    Performance Ratios

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


    Capital and Balance Sheet Ratios

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

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

    (2) Preliminary

    Noninterest Income and Noninterest Expense

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


    Mortgage Banking Income

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


    Balance Sheet

    (Dollars in thousands) As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Assets          
    Cash and cash equivalents $ 1,378,612   $ 1,091,339   $ 1,092,032   $ 1,275,620   $ 851,906  
    Securities held to maturity, at amortized cost   1,076,817     1,101,901     1,126,112     1,150,531     1,174,663  
    Securities available for sale, at fair value   2,471,487     1,002,056     831,013     764,844     749,685  
    Loans held for sale, at fair value   356,791     226,003     246,171     291,735     266,406  
    Loans held for investment   18,563,447     13,055,593     12,885,020     12,627,648     12,604,755  
    Allowance for credit losses on loans   (290,770 )   (203,931 )   (201,756 )   (200,378 )   (199,871 )
    Loans, net   18,272,677     12,851,662     12,683,264     12,427,270     12,404,884  
    Premises and equipment, net   465,100     279,011     279,796     280,550     280,966  
    Other real estate owned   11,750     8,654     8,673     9,136     7,366  
    Goodwill   1,419,782     988,898     988,898     988,898     991,665  
    Other intangibles   163,751     13,025     14,105     15,238     16,397  
    Bank-owned life insurance   486,613     337,502     391,810     389,138     387,791  
    Mortgage servicing rights   64,539     72,902     72,991     71,990     72,092  
    Other assets   457,056     298,428     300,003     293,890     306,570  
    Total assets $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391  
               
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 5,356,153   $ 3,541,375   $ 3,403,981   $ 3,529,801   $ 3,539,453  
    Interest-bearing   16,226,484     11,230,720     11,168,631     10,979,950     10,715,760  
    Total deposits   21,582,637     14,772,095     14,572,612     14,509,751     14,255,213  
    Short-term borrowings   405,349     108,015     108,018     108,732     232,741  
    Long-term debt   556,976     433,309     430,614     433,177     428,677  
    Other liabilities   301,159     230,857     245,306     249,102     239,059  
    Total liabilities   22,846,121     15,544,276     15,356,550     15,300,762     15,155,690  
               
    Shareholders’ equity:          
    Common stock   488,612     332,421     332,421     332,421     296,483  
    Treasury stock   (90,248 )   (91,646 )   (97,196 )   (97,251 )   (97,534 )
    Additional paid-in capital   2,393,566     1,486,849     1,491,847     1,488,678     1,304,782  
    Retained earnings   1,100,965     1,121,102     1,093,854     1,063,324     1,005,086  
    Accumulated other comprehensive loss   (114,041 )   (121,621 )   (142,608 )   (129,094 )   (154,116 )
    Total shareholders’ equity   3,778,854     2,727,105     2,678,318     2,658,078     2,354,701  
    Total liabilities and shareholders’ equity $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391  


    Net Interest Income and Net Interest Margin

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

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

    Net Interest Income and Net Interest Margin, continued

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

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

    Loan Portfolio

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


    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands) As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Nonperforming Assets:          
    Nonaccruing loans $ 137,999   $ 98,638   $ 110,811   $ 113,872   $ 97,795  
    Loans 90 days or more past due   3,860     95     2,464     5,351     240  
    Total nonperforming loans   141,859     98,733     113,275     119,223     98,035  
    Other real estate owned   11,750     8,654     8,673     9,136     7,366  
    Total nonperforming assets $ 153,609   $ 107,387   $ 121,948   $ 128,359   $ 105,401  
               
    Criticized Loans          
    Classified loans $ 333,626   $ 224,654   $ 241,708   $ 218,135   $ 191,595  
    Special Mention loans   159,931     95,778     130,882     163,804     138,343  
    Criticized loans(1) $ 493,557   $ 320,432   $ 372,590   $ 381,939   $ 329,938  
               
    Allowance for credit losses on loans $ 290,770   $ 203,931   $ 201,756   $ 200,378   $ 199,871  
    Net loan charge-offs (recoveries) $ 12,054   $ (125 ) $ 1,722   $ 703   $ 5,481  
    Annualized net loan charge-offs / average loans   0.26 %   — %   0.05 %   0.02 %   0.18 %
    Nonperforming loans / total loans   0.76     0.76     0.88     0.94     0.78  
    Nonperforming assets / total assets   0.58     0.59     0.68     0.71     0.60  
    Allowance for credit losses on loans / total loans   1.57     1.56     1.57     1.59     1.59  
    Allowance for credit losses on loans / nonperforming loans   204.97     206.55     178.11     168.07     203.88  
    Criticized loans / total loans   2.66     2.45     2.89     3.02     2.62  

    (1) Criticized loans include classified and Special Mention loans.

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

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

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

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

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

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

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

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

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

    NON-GAAP FINANCIAL MEASURES:

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

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

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

    Non-GAAP Reconciliations

    (Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Adjusted Pre-Provision Net Revenue (“PPNR”)            
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Income taxes   1,649     10,448     5,006     24,924     9,666       12,097     19,578  
    Provision for credit losses (including unfunded commitments)   81,322     4,750     2,600     935     3,300       86,072     5,738  
    Pre-provision net revenue (non-GAAP) $ 83,989   $ 56,716   $ 52,353   $ 98,314   $ 51,812     $ 140,705   $ 103,571  
    Merger and conversion expense   20,479     791     2,076     11,273     —       21,270     —  
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Adjusted pre-provision net revenue (non-GAAP) $ 103,001   $ 57,507   $ 54,177   $ 56,238   $ 51,812     $ 160,508   $ 100,043  
                     
    Adjusted Net Income and Adjusted Tangible Net Income            
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Amortization of intangibles   8,884     1,080     1,133     1,160     1,186       9,964     2,398  
    Tax effect of adjustments noted above(1)   (2,212 )   (270 )   (283 )   (296 )   (233 )     (2,481 )   (470 )
    Tangible net income (non-GAAP) $ 7,690   $ 42,328   $ 45,597   $ 73,319   $ 39,799     $ 50,019   $ 80,183  
                     
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Merger and conversion expense   20,479     791     2,076     11,273     —       21,270     —  
    Day 1 acquisition provision for loan losses   62,190     —     —     —     —       62,190     —  
    Day 1 acquisition provision for unfunded commitments   4,422     —     —     —     —       4,422     —  
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Tax effect of adjustments noted above(1)   (20,765 )   (198 )   (113 )   12,581     —       (20,964 )   694  
    Adjusted net income (non-GAAP) $ 65,877   $ 42,111   $ 46,458   $ 42,960   $ 38,846     $ 107,987   $ 75,421  
    Amortization of intangibles   8,884     1,080     1,133     1,160     1,186       9,964     2,398  
    Tax effect of adjustments noted above(1)   (2,212 )   (270 )   (283 )   (296 )   (233 )     (2,481 )   (470 )
    Adjusted tangible net income (non-GAAP) $ 72,549   $ 42,921   $ 47,308   $ 43,824   $ 39,799     $ 115,470   $ 77,349  
    Tangible Assets and Tangible Shareholders’ Equity            
    Average shareholders’ equity (GAAP) $ 3,745,051   $ 2,692,681   $ 2,656,885   $ 2,553,586   $ 2,337,731     $ 3,221,773   $ 2,326,006  
    Average intangible assets   (1,589,490 )   (1,002,511 )   (1,003,551 )   (1,004,701 )   (1,008,638 )     (1,297,622 )   (1,009,232 )
    Average tangible shareholders’ equity (non-GAAP) $ 2,155,561   $ 1,690,170   $ 1,653,334   $ 1,548,885   $ 1,329,093     $ 1,924,151   $ 1,316,774  
                     
    Average assets (GAAP) $ 26,182,865   $ 17,989,636   $ 17,943,148   $ 17,681,664   $ 17,371,369     $ 22,108,884   $ 17,290,131  
    Average intangible assets   (1,589,490 )   (1,002,511 )   (1,003,551 )   (1,004,701 )   (1,008,638 )     (1,297,622 )   (1,009,232 )
    Average tangible assets (non-GAAP) $ 24,593,375   $ 16,987,125   $ 16,939,597   $ 16,676,963   $ 16,362,731     $ 20,811,262   $ 16,280,899  
                     
    Shareholders’ equity (GAAP) $ 3,778,854   $ 2,727,105   $ 2,678,318   $ 2,658,078   $ 2,354,701     $ 3,778,854   $ 2,354,701  
    Intangible assets   (1,583,533 )   (1,001,923 )   (1,003,003 )   (1,004,136 )   (1,008,062 )     (1,583,533 )   (1,008,062 )
    Tangible shareholders’ equity (non-GAAP) $ 2,195,321   $ 1,725,182   $ 1,675,315   $ 1,653,942   $ 1,346,639     $ 2,195,321   $ 1,346,639  
                     
    Total assets (GAAP) $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391     $ 26,624,975   $ 17,510,391  
    Intangible assets   (1,583,533 )   (1,001,923 )   (1,003,003 )   (1,004,136 )   (1,008,062 )     (1,583,533 )   (1,008,062 )
    Total tangible assets (non-GAAP) $ 25,041,442   $ 17,269,458   $ 17,031,865   $ 16,954,704   $ 16,502,329     $ 25,041,442   $ 16,502,329  
                     
    Adjusted Performance Ratios                
    Return on average assets (GAAP)   0.02 %   0.94 %   0.99 %   1.63 %   0.90 %     0.39 %   0.91 %
    Adjusted return on average assets (non-GAAP)   1.01     0.95     1.03     0.97     0.90       0.98     0.88  
    Return on average tangible assets (non-GAAP)   0.13     1.01     1.07     1.75     0.98       0.48     0.99  
    Pre-provision net revenue to average assets (non-GAAP)   1.29     1.28     1.16     2.21     1.20       1.28     1.20  
    Adjusted pre-provision net revenue to average assets (non-GAAP)   1.58     1.30     1.20     1.27     1.20       1.46     1.16  
    Adjusted return on average tangible assets (non-GAAP)   1.18     1.02     1.11     1.05     0.98       1.12     0.96  
    Return on average equity (GAAP)   0.11     6.25     6.70     11.29     6.68       2.66     6.77  
    Adjusted return on average equity (non-GAAP)   7.06     6.34     6.96     6.69     6.68       6.76     6.52  
    Return on average tangible equity (non-GAAP)   1.43     10.16     10.97     18.83     12.04       5.24     12.25  
    Adjusted return on average tangible equity (non-GAAP)   13.50     10.30     11.38     11.26     12.04       12.10     11.81  
                     
    Adjusted Diluted Earnings Per Share            
    Average diluted shares outstanding   95,136,160     64,028,025     64,056,303     61,632,448     56,684,626       79,671,775     56,607,947  
                     
    Diluted earnings per share (GAAP) $ 0.01   $ 0.65   $ 0.70   $ 1.18   $ 0.69     $ 0.53   $ 1.38  
    Adjusted diluted earnings per share (non-GAAP) $ 0.69   $ 0.66   $ 0.73   $ 0.70   $ 0.69     $ 1.36   $ 1.33  
                     
    Tangible Book Value Per Share                
    Shares outstanding   95,019,311     63,739,467     63,565,690     63,564,028     56,367,924       95,019,311     56,367,924  
                     
    Book value per share (GAAP) $ 39.77   $ 42.79   $ 42.13   $ 41.82   $ 41.77     $ 39.77   $ 41.77  
    Tangible book value per share (non-GAAP) $ 23.10   $ 27.07   $ 26.36   $ 26.02   $ 23.89     $ 23.10   $ 23.89  
                     
    Tangible Common Equity Ratio                
    Shareholders’ equity to assets (GAAP)   14.19 %   14.93 %   14.85 %   14.80 %   13.45 %     14.19 %   13.45 %
    Tangible common equity ratio (non-GAAP)   8.77 %   9.99 %   9.84 %   9.76 %   8.16 %     8.77 %   8.16 %
    Adjusted Efficiency Ratio                
    Net interest income (FTE) (GAAP) $ 222,717   $ 137,432   $ 135,502   $ 133,576   $ 127,598     $ 360,149   $ 253,448  
                     
    Total noninterest income (GAAP) $ 48,334   $ 36,395   $ 34,218   $ 89,299   $ 38,762     $ 84,729   $ 80,143  
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Total adjusted noninterest income (non-GAAP) $ 46,867   $ 36,395   $ 33,966   $ 35,950   $ 38,762     $ 83,262   $ 76,615  
                     
    Noninterest expense (GAAP) $ 183,204   $ 113,876   $ 114,747   $ 121,983   $ 111,976     $ 297,080   $ 224,888  
    Amortization of intangibles   (8,884 )   (1,080 )   (1,133 )   (1,160 )   (1,186 )     (9,964 )   (2,398 )
    Merger and conversion expense   (20,479 )   (791 )   (2,076 )   (11,273 )   —       (21,270 )   —  
    Total adjusted noninterest expense (non-GAAP) $ 153,841   $ 112,005   $ 111,538   $ 109,550   $ 110,790     $ 265,846   $ 222,490  
                     
    Efficiency ratio (GAAP)   67.59 %   65.51 %   67.61 %   54.73 %   67.31 %     66.78 %   67.41 %
    Adjusted efficiency ratio (non-GAAP)   57.07 %   64.43 %   65.82 %   64.62 %   66.60 %     59.95 %   67.41 %
                     
    Adjusted Net Interest Income and Adjusted Net Interest Margin            
    Net interest income (FTE) (GAAP) $ 222,717   $ 137,432   $ 135,502   $ 133,576   $ 127,598     $ 360,149   $ 253,448  
    Net interest income collected on problem loans   (2,779 )   (1,026 )   (151 )   (642 )   146       (3,805 )   23  
    Accretion recognized on purchased loans   (17,834 )   (558 )   (616 )   (1,089 )   (897 )     (18,392 )   (1,697 )
    Amortization recognized on purchased time deposits   4,396     —     —     —     —       4,396     —  
    Amortization recognized on purchased long term borrowings   1,072     —     —     —     —       1,072     —  
    Adjustments to net interest income $ (15,145 ) $ (1,584 ) $ (767 ) $ (1,731 ) $ (751 )   $ (16,729 ) $ (1,674 )
    Adjusted net interest income (FTE) (non-GAAP) $ 207,572   $ 135,848   $ 134,735   $ 131,845   $ 126,847     $ 343,420   $ 251,774  
                     
    Net interest margin (GAAP)   3.85 %   3.45 %   3.36 %   3.36 %   3.31 %     3.68 %   3.30 %
    Adjusted net interest margin (non-GAAP)   3.58 %   3.42 %   3.34 %   3.32 %   3.29 %     3.51 %   3.28 %
                     
    Adjusted Loan Yield                
    Loan interest income (FTE) (GAAP) $ 304,834   $ 199,504   $ 201,562   $ 204,935   $ 200,670     $ 504,338   $ 395,310  
    Net interest income collected on problem loans   (2,779 )   (1,026 )   (151 )   (642 )   146       (3,805 )   23  
    Accretion recognized on purchased loans   (17,834 )   (558 )   (616 )   (1,089 )   (897 )     (18,392 )   (1,697 )
    Adjusted loan interest income (FTE) (non-GAAP) $ 284,221   $ 197,920   $ 200,795   $ 203,204   $ 199,919     $ 482,141   $ 393,636  
                     
    Loan yield (GAAP)   6.63 %   6.24 %   6.29 %   6.47 %   6.41 %     6.47 %   6.35 %
    Adjusted loan yield (non-GAAP)   6.18 %   6.19 %   6.27 %   6.41 %   6.38 %     6.18 %   6.32 %

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

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

    The MIL Network –

  • MIL-OSI: Weatherford Announces Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    • Second quarter revenue of $1,204 million increased 1% sequentially
    • Second quarter operating income of $237 million increased 67% sequentially
    • Second quarter net income of $136 million increased 79% sequentially; net income margin of 11.3%
    • Second quarter adjusted EBITDA* of $254 million was flat sequentially; adjusted EBITDA margin* of 21.1% decreased 11 basis points sequentially
    • Second quarter cash provided by operating activities of $128 million and adjusted free cash flow* of $79 million
    • Repurchased $27 million of 8.625% Senior Notes due 2030 in the second quarter of 2025
    • Shareholder return of $52 million for the quarter, which included dividend payments of $18 million and share repurchases of $34 million
    • Board approved quarterly cash dividend of $0.25 per share, payable on September 4, 2025, to shareholders of record as of August 6, 2025
    • Signed an agreement with Amazon Web Services to migrate and modernize our digital platforms, including the Modern Edge Platform and Unified Data Model, enhancing operational efficiency and data-driven decision-making. The collaboration also boosts Weatherford’s Software Launchpad, offering scalable, cloud-based solutions while ensuring data control and integration flexibility

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    HOUSTON, July 22, 2025 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the second quarter of 2025.

    Revenues for the second quarter of 2025 were $1,204 million, an increase of 1% sequentially and a decrease of 14% year-over-year. Operating income in the second quarter of 2025 was $237 million, an increase of 67% sequentially and a decrease of 10% year-over-year. Net income in the second quarter of 2025 was $136 million, with a 11.3% margin, an increase of 79%, or 493 basis points, sequentially, and an increase of 9%, or 240 basis points, year-over-year. Adjusted EBITDA* was $254 million, with a 21.1% margin, flat, or a decrease of 11 basis points, sequentially, and a decrease of 30%, or 488 basis points, year-over-year. Basic income per share in the second quarter of 2025 was $1.87, an increase of 81% sequentially and an increase of 10% year-over-year. Diluted income per share in the second quarter of 2025 was $1.87, an increase of 81% sequentially and an increase of 13% year-over-year.

    Second quarter 2025 cash flows provided by operating activities were $128 million, a decrease of 10% sequentially and a decrease of 15% year-over-year. Adjusted free cash flow* was $79 million, an increase of 20% sequentially and a decrease of 18% year-over-year. Capital expenditures were $54 million in the second quarter of 2025, a decrease of 30% sequentially and a decrease of 13% year-over-year.

    Girish Saligram, President and Chief Executive Officer, commented, “Our core operating markets continued to exhibit activity slowdown during the quarter, driven by geopolitical events, supply-demand imbalance concerns, and trade uncertainties. Despite these structural headwinds, the One Weatherford team delivered second-quarter results in line with expectations, reflecting disciplined execution and operational efficiency in a distinctly softer market. The sequential performance demonstrates strong fundamentals and the resilience of our operating model. Revenues increased and adjusted EBITDA was flat despite the previously announced divestiture of certain businesses in Argentina. Adjusted Free Cash Flow also increased, even as receivables continued to build in Latin America due to lack of payments in Mexico. This performance underscores the strength of the new Weatherford operating paradigm and marks a positive departure from past responses to prior market cycle inflections.

    Looking ahead, activity levels in both North America and international markets continue to show signs of sluggishness, and expectations for a broader sector recovery have shifted further to the right. While we anticipate a relatively flat trajectory on revenues for the immediate future, we remain focused on driving adjusted free cash flow conversion through portfolio optimization, structural cost efficiencies, optimization of working capital, and CAPEX efficiency.”

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Operational & Commercial Highlights

    • An International Oil Company (IOC) awarded Weatherford a three-year contract to provide Managed Pressure Drilling (MPD) services for a deepwater development project in Mexico.
    • Aramco awarded Weatherford a one-year contract extension to provide MPD services for its onshore and offshore wells.
    • Weatherford, with Superior Energy Services, secured a three-year contract to supply conventional completions (Upper and Lower) equipment to Petrobras for pre-salt and post-salt fields offshore Brazil.
    • Cairn Oil & Gas granted Weatherford a Letter of Award to provide Completions, Liner Hanger, Whipstock systems and services, and MPD services for High Temperature – Ultra High Temperature (HT-UHT) drilling and rigless project in Barmer, India.
    • bp UK awarded Weatherford a one-year contract to provide Cementation Products, Completions, Drilling Services, Intervention Services & Drilling Tools (ISDT), and a one-year contract to provide Liner Hanger systems for the Northern Endurance Partnership CO2 Storage Project in offshore UK.
    • Beach Energy Limited awarded Weatherford contracts to provide Cementation Products, Cement Heads, Liner Hangers, and Tubular Running Services (TRS) for a campaign in offshore Australia.
    • Origin Energy awarded Weatherford a five-year contract to re-supply PCP systems in onshore Australia.
    • OMV awarded Weatherford a three-year contract to supply Completions and Reservoir Monitoring equipment in Tunisia.
    • Shell awarded Weatherford a three-year contract to provide ISDT offshore in the Gulf of America.
    • An IOC awarded Weatherford a three-year contract to provide thru-tubing Well Services in offshore Malaysia.
    • Kuwait Oil Company (KOC) awarded Weatherford a contract for the supply of XpressTM XT Liner Hanger systems for deep drilling operations in Kuwait.
    • A National Oil Company in the Middle East awarded a two-year contract to provide thru-tubing and safety valve systems in the United Arab Emirates.
    • A major operator in Canada awarded Weatherford a two-year contract to provide Artificial Lift services in onshore Canada.
    • Weatherford, in strategic partnership with Constellation, secured a three-year contract to deliver TRS, integrating the automated Vero™ technology into their rig for Petrobras in offshore Brazil.

    Technology Highlights

    • Drilling & Evaluation (“DRE”)
      • In Kuwait, Weatherford successfully deployed combined Magnus™ and Victus™ solutions for a pilot project for KOC. This approach enabled the use of a smaller wellhead, eliminated one casing string, and allowed effective drilling and cementing through stacked reservoirs, potentially unlocking new completion designs and enhancing recovery.
      • In Qatar, Weatherford successfully completed the first Modus™ job using MPD techniques that significantly improved operational efficiency and well safety. The Modus system enabled the operator to reach the targeted total depth while saving substantial rig time and costs compared to conventional methods.
      • In Norway, Weatherford successfully completed three open hole logging jobs for an international operator using coiled tubing for deployment. This approach enabled effective logging in a highly deviated well, overcoming the limitations of conventional wireline conveyance.
    • Well Construction and Completions (“WCC”)
      • In the Gulf of America, Weatherford successfully integrated multiple TRS technologies for bp. This integration enhanced operational speed, cost-effectiveness, and well integrity while improving quality, efficiency, and safety by reducing personnel requirements and eliminating manual intervention.
      • In the United Kingdom, Weatherford successfully implemented StringGuardTM for Shell. The solution is designed to provide protection against potential dropped string events, with the aim of maintaining operational focus and incident free delivery.
    • Production and Intervention (“PRI”)
      • Weatherford’s Rotaflex® Artificial Lift technology has witnessed continued global adoption, with recent installations in France, Australia, and Oman. These projects have addressed a variety of operational challenges, including the replacement of Electric Submersible Pumps and conventional pumping units, enhancement of production efficiency, support for Coal Bed Methane initiatives, and restoration of output in complex wells, underscoring the versatility and effectiveness of the Rotaflex technology.
      • In Norway, Weatherford completed a successful field trial of TITAN RS technology for Equinor, following the acquisition of Ardyne. The trial delivered a full casing cut and recovery solution for the plug and abandonment market, reinforcing Weatherford’s leadership in advanced well abandonment.
      • In Saudi Arabia, Weatherford installed the first Rod Lift system in the Jafurah field. The unit was successfully commissioned, validating Weatherford’s Rod Lift technology as a viable artificial lift solution for this unconventional gas field.

    Shareholder Return

    During the second quarter of 2025, Weatherford paid dividends of $18 million and repurchased shares for approximately $34 million, resulting in a total shareholder return of $52 million. In the first half of the year, Weatherford paid dividends of $36 million and repurchased shares for approximately $87 million, resulting in a total shareholder return of $123 million.

    On July 17, 2025, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on September 4, 2025, to shareholders of record as of August 6, 2025.

    Results by Reportable Segment

    Drilling and Evaluation (“DRE”)
      

        Three Months Ended   Variance
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   Seq.   YoY
    Revenue   $          335     $              350     $          427     (4)   %   (22)    %
    Segment Adjusted EBITDA   $            69     $                 74     $          130     (7)   %   (47)    %
    Segment Adj EBITDA Margin     20.6 %     21.1 %     30.4 %            (55) bps         (985) bps

    Second quarter 2025 DRE revenue of $335 million decreased by $15 million, or 4% sequentially, primarily from lower Wireline activity in North America and Latin America partly offset by higher Drilling Services activity in Europe/Sub-Sahara Africa/Russia and Latin America. Year-over-year DRE revenue decreased by $92 million, or 22%, primarily from lower activity across all geographies, especially in Latin America, partly offset by higher Drilling Services activity in Europe/Sub-Sahara Africa/ Russia, North America and Middle East/North Africa/Asia.

    Second quarter 2025 DRE segment adjusted EBITDA of $69 million decreased by $5 million, or 7% sequentially, primarily from lower Wireline activity, partly offset by higher Drilling Services activity. Year-over-year DRE segment adjusted EBITDA decreased by $61 million, or 47%, primarily from lower activity across all geographies, especially in Latin America.

    Well Construction and Completions (“WCC”)  

        Three Months Ended   Variance
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   Seq.   YoY
    Revenue   $          456     $              441     $          504     3 %   (10)   %
    Segment Adjusted EBITDA   $          118     $              128     $          145     (8) %   (19)   %
    Segment Adj EBITDA Margin     25.9 %     29.0 %     28.8 %         (315) bps          (289) bps

    Second quarter 2025 WCC revenue of $456 million increased by $15 million, or 3% sequentially, primarily from higher Liner Hangers and Cementation Products activity partly offset by lower Completions activity especially in Latin America.  Year-over-year WCC revenues decreased by $48 million, or 10%, primarily from lower activity in Latin America, Europe/Sub-Sahara Africa/Russia and North America partly offset by higher Liner Hangers activity in Middle East/North Africa/Asia.

    Second quarter 2025 WCC segment adjusted EBITDA of $118 million decreased by $10 million, or 8% sequentially, primarily from lower Completions activity partly offset by higher Liner Hangers activity and Cementation Products activity and fall through. Year-over-year WCC segment adjusted EBITDA decreased by $27 million, or 19%, primarily from lower activity in Latin America, Europe/Sub-Sahara Africa/Russia and North America partly offset by higher Liner Hangers and TRS fall through in Middle East/North Africa/Asia.

    Production and Intervention (“PRI”)  

        Three Months Ended   Variance
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   Seq.   YoY
    Revenue   $          327         $              334     $          369     (2)  %   (11)   %
    Segment Adjusted EBITDA   $            63         $                 62     $            85     2 %   (26)   %
    Segment Adj EBITDA Margin     19.3 %     18.6 %     23.0 %             70  bps          (377) bps

    Second quarter 2025 PRI revenue of $327 million  decreased by $7 million, or 2% sequentially, primarily from lower Pressure Pumping activity in Latin America pursuant to the sale of the Argentina Pressure Pumping business partly offset by higher Artificial Lift and Sub-sea Intervention activity. Year-over-year PRI revenue decreased by $42 million, or 11%, as lower activity across all geographies was partly offset by higher Sub-sea intervention activity in Latin America.

    Second quarter 2025 PRI segment adjusted EBITDA of $63 million increased by $1 million, or 2% sequentially, primarily from  higher Sub-sea Intervention activity and fall through partly offset by lower Pressure Pumping activity in Latin America pursuant to the sale of the Argentina Pressure Pumping business. Year-over-year PRI segment adjusted EBITDA decreased by $22 million, or 26%, primarily from lower activity across all geographies, partly offset by higher Sub-sea intervention activity and fall through in Latin America.

    Revenue by Geography 

        Three Months Ended   Variance
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   Seq.   YoY
    North America   $             241   $                  250   $             252   (4) %   (4) %
                         
    International   $             963   $                  943   $          1,153   2 %   (16) %
       Latin America                     195                        241                    353   (19) %   (45) %
       Middle East/North Africa/Asia                    524                        503                    542   4 %   (3) %
       Europe/Sub-Sahara Africa/Russia                    244                        199                    258   23 %   (5) %
    Total Revenue   $          1,204   $               1,193   $          1,405   1 %   (14) %


    North America

    Second quarter 2025 North America revenue of $241 million decreased by $9 million, or 4% sequentially, primarily from lower Wireline activity in Canada Land, partly offset by higher Cementation Products and Liner Hangers activity. Year-over-year, North America decreased by $11 million, or 4% , primarily from lower activity across all the segments, partly offset by higher activity in US Offshore.

    International

    Second quarter 2025 international revenue of $963 million increased by $20 million, or 2% sequentially and decreased by $190 million, or 16% year-over-year.

    Second quarter 2025 Latin America revenue of $195 million decreased by $46 million, or 19% sequentially, primarily from lower activity in Argentina pursuant to the sale of the Argentina Pressure Pumping business, partly offset by higher Sub-sea intervention activity. Year-over-year, Latin America revenue decreased by $158 million, or 45%, primarily from lower activity in Mexico and Argentina, partly offset by higher Sub-sea intervention activity.

    Second quarter 2025 Middle East/North Africa/Asia revenue of $524 million increased by $21 million, or 4% sequentially, primarily from higher Liner Hangers and Cementation Products activity partly offset by lower Drilling Services. Year-over-year, the Middle East/North Africa/Asia revenue decreased by $18 million, or 3%, primarily from lower activity in the DRE and PRI segments partly offset by higher Liner Hangers activity.

    Second quarter 2025 Europe/Sub-Sahara Africa/Russia revenue of $244 million increased by $45 million, or 23% sequentially, primarily from higher activity across all the segments. Year-over-year, Europe/Sub-Sahara Africa/Russia revenue decreased by $14 million, or 5%, primarily from lower activity across all the segments especially WCC, partly offset by higher Drilling Services and Pressure Pumping.

    About Weatherford
    Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 17,300 team members representing more than 110 nationalities and 310 operating locations. Visit weatherford.com for more information and connect with us on social media.

    Conference Call Details

    Weatherford will host a conference call on Wednesday, July 23, 2025, to discuss the Company’s results for the second quarter ended June 30, 2025. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

    Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

    Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

    A telephonic replay of the conference call will be available until August 6, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 1312926. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

    Contacts
    For Investors:
    Luke Lemoine
    Senior Vice President, Corporate Development & Investor Relations
    +1 713-836-7777
    investor.relations@weatherford.com

    For Media:
    Kelley Hughes
    Senior Director, Communications & Employee Engagement
    media@weatherford.com

    Forward-Looking Statements

    This news release contains projections and forward-looking statements concerning, among other things, the Company’s adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only estimates and may differ materially from actual future events or results, based on factors including but not limited to: global political, economic and market conditions, political disturbances, war or other global conflicts, terrorist attacks, changes in global trade policies, tariffs and sanctions, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflicts, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations (including changes in the regulatory environment) imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts, increases in the prices and lead times, and the lack of availability of our procured products and services, including due to macroeconomic and geopolitical conditions such as tariffs and changes in trade policies, our ability to timely collect from customers; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

    These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

    *Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    Selected Statements of Operations (Unaudited)
                         
        Three Months Ended   Six Months Ended
    ($ in Millions, Except Per Share Amounts)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Revenues:                    
    DRE Revenues   $              335     $                 350     $              427     $            685     $            849  
    WCC Revenues                    456                          441                      504                     897                    962  
    PRI Revenues                    327                          334                      369                     661                    717  
    All Other                       86                            68                      105                     154                    235  
    Total Revenues                 1,204                      1,193                   1,405                 2,397                 2,763  
                         
    Operating Income:                    
    DRE Segment Adjusted EBITDA[1]   $                69     $                    74     $              130     $            143     $            260  
    WCC Segment Adjusted EBITDA[1]                    118                          128                      145                     246                    265  
    PRI Segment Adjusted EBITDA[1]                       63                            62                        85                     125                    158  
    All Other[2]                       19                              4                        23                       23                       50  
    Corporate[2]                     (15 )                        (15 )                    (18 )                   (30 )                   (32 )
    Depreciation and Amortization                     (64 )                        (62 )                    (86 )                 (126 )                (171 )
    Share-based Compensation                       (9 )                          (7 )                    (12 )                   (16 )                   (25 )
    Gain on Sale of Business                       70                            —                        —                       70                       —  
    Restructuring Charges                     (11 )                        (29 )                       (5 )                   (40 )                     (8 )
    Other (Charges) Credits                       (3 )                        (13 )                        2                     (16 )                     —  
    Operating Income                    237                          142                      264                     379                    497  
                         
    Other Expense:                    
    Interest Expense, Net of Interest Income of $14, $11,
    $17, $25 and $31    		                     (21 )                        (26 )                    (24 )                   (47 )                   (53 )
    Loss on Blue Chip Swap Securities                       (1 )                          —                      (10 )                     (1 )                   (10 )
    Other Expense, Net                     (24 )                        (20 )                    (20 )                   (44 ) —                 (42 )
    Income Before Income Taxes                    191                            96                      210                     287                    392  
    Income Tax Provision                     (46 )                        (10 )                    (73 )                   (56 )                (132 )
    Net Income                    145                            86                      137                     231                    260  
    Net Income Attributable to Noncontrolling Interests                         9                            10                        12                       19                       23  
    Net Income Attributable to Weatherford   $              136     $                    76     $              125     $            212     $            237  
                         
    Basic Income Per Share   $             1.87     $                1.04     $             1.71     $           2.91     $           3.25  
    Basic Weighted Average Shares Outstanding                   72.2                         73.1                     73.2                    72.7                   73.1  
                         
    Diluted Income Per Share   $             1.87     $                1.03     $             1.66     $           2.90     $           3.16  
    Diluted Weighted Average Shares Outstanding                   72.4                         73.4                     75.3       72.9       75.0  
    [1] Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation, restructuring charges and other adjustments. Research and development expenses are included in segment adjusted EBITDA.
    [2] All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.
    Weatherford International plc
    Selected Balance Sheet Data (Unaudited)
           
    ($ in Millions) June 30, 2025   December 31, 2024
    Assets:      
    Cash and Cash Equivalents $                              943   $                                 916
    Restricted Cash                                     60                                         59
    Accounts Receivable, Net                               1,177                                    1,261
    Inventories, Net                                  881                                       880
    Property, Plant and Equipment, Net                               1,136                                    1,061
    Intangibles, Net                                  305                                       325
           
    Liabilities:      
    Accounts Payable                                  685                                       792
    Accrued Salaries and Benefits                                  252                                       302
    Current Portion of Long-term Debt                                     26                                         17
    Long-term Debt                               1,565                                    1,617
           
    Shareholders’ Equity:      
    Total Shareholders’ Equity                               1,519                                    1,283
    Weatherford International plc
    Selected Cash Flows Information (Unaudited)
                         
        Three Months Ended   Six Months Ended
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Cash Flows From Operating Activities:                    
    Net Income   $             145     $                    86     $             137     $             231     $             260  
    Adjustments to Reconcile Net Income to Net Cash
    Provided By Operating Activities:    		                    
    Depreciation and Amortization                      64                             62                        86                      126                      171  
    Foreign Exchange Losses                      17                             13                          8                        30                        23  
    Loss on Blue Chip Swap Securities                        1                             —                        10                          1                        10  
    Gain on Disposition of Assets                      (3 )                           (1 )                    (25 )                      (4 )                    (32 )
    Gain on Sale of Business                    (70 )                           —                        —                      (70 )                      —   
    Deferred Income Tax Provision (Benefit)                      (5 )                             7                        13                          2                        27  
    Share-Based Compensation                        9                               7                        12                        16                        25  
    Changes in Accounts Receivable, Inventory, Accounts
    Payable and Accrued Salaries and Benefits    		                    (22 )                         (17 )                    (22 )                    (39 )                  (174 )
    Other Changes, Net                      (8 )                         (15 )                    (69 )                    (23 )                    (29 )
    Net Cash Provided By Operating Activities                    128                          142                      150                      270                      281  
                         
    Cash Flows From Investing Activities:                    
    Capital Expenditures for Property, Plant and Equipment                    (54 )                         (77 )                    (62 )                  (131 )                  (121 )
    Proceeds from Disposition of Assets                        5                               1                          8                          6                        18  
    Proceeds from Sale of Businesses                      97                             —                        —                        97                        —   
    Purchases of Blue Chip Swap Securities                    (83 )                           —                      (50 )                    (83 )                    (50 )
    Proceeds from Sales of Blue Chip Swap Securities                      82                             —                        40                        82                        40  
    Business Acquisitions, Net of Cash Acquired                      —                             —                        —                        —                       (36 )
    Proceeds from Sale of Investments                      —                             —                        —                        —                         41  
    Other Investing Activities                      (4 )                           (3 )                        3                        (7 )                      (7 )
    Net Cash Provided by (Used In) Investing Activities                      43                           (79 )                    (61 )                    (36 )                  (115 )
                         
    Cash Flows From Financing Activities:                    
    Repayments of Long-term Debt                    (34 )                         (39 )                    (87 )                    (73 )                  (259 )
       Distributions to Noncontrolling Interests                      (8 )                           —                        (9 )                      (8 )                      (9 )
    Tax Remittance on Equity Awards                      —                           (20 )                      (1 )                    (20 )                      (9 )
    Share Repurchases                    (34 )                         (53 )                      —                      (87 )                      —   
    Dividends Paid                    (18 )                         (18 )                      —                      (36 )                      —   
    Other Financing Activities                      (3 )                           (3 )                      (5 )                      (6 )                    (12 )
    Net Cash Used In Financing Activities   $              (97 )   $                (133 )   $           (102 )   $           (230 )   $           (289 )
    Weatherford International plc
    Non-GAAP Financial Measures Defined (Unaudited)

    We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted EBITDA margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.​

    Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

    *Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)
     
                         
        Three Months Ended   Six Months Ended
    ($ in Millions, Except Margin in Percentages)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Revenues   $         1,204     $          1,193     $         1,405     $      2,397     $      2,763  
    Net Income Attributable to Weatherford   $            136     $                76     $            125     $         212     $         237  
    Net Income Margin     11.3 %     6.4 %     8.9 %     8.8 %     8.6 %
    Adjusted EBITDA*   $            254     $              253     $            365     $         507     $         701  
    Adjusted EBITDA Margin*     21.1 %     21.2 %     26.0 %     21.2 %     25.4 %
                         
    Net Income Attributable to Weatherford   $            136     $                76     $            125     $         212     $         237  
    Net Income Attributable to Noncontrolling Interests                       9                        10                       12                    19                    23  
    Income Tax Provision                     46                        10                       73                    56                 132  
    Interest Expense, Net of Interest Income of $14, $11,
    $17, $25 and $31    		                     21                        26                       24                    47                    53  
    Loss on Blue Chip Swap Securities                       1                        —                       10                      1                    10  
    Other Expense, Net                     24                        20                       20                    44                    42  
    Operating Income                  237                      142                    264                 379                 497  
    Depreciation and Amortization                     64                        62                       86                 126                 171  
    Other Charges (Credits)[1]                       3                        13                       (2 )                  16                    —  
    Gain on Sale of Business                   (70 )                      —                       —                  (70 )                  —  
    Restructuring Charges                     11                        29                         5                    40                      8  
    Share-Based Compensation                       9                          7                       12                    16                    25  
    Adjusted EBITDA*   $            254     $              253     $            365     $         507     $         701  
                         
    Net Cash Provided By Operating Activities   $            128     $              142     $            150     $         270     $         281  
    Capital Expenditures for Property, Plant and
    Equipment    		                   (54 )                    (77 )                   (62 )             (131 )             (121 )
    Proceeds from Disposition of Assets                       5                          1                         8                      6                    18  
    Adjusted Free Cash Flow*   $              79     $                66     $              96     $         145     $         178  
    [1] Other Charges (Credits) in the three and six months ended June 30, 2025 primarily includes fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico and other miscellaneous charges and credits.

    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    Weatherford International plc
    GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)
     
                   
         
    ($ in Millions)   June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		  
    Current Portion of Long-term Debt   $                   26   $                    22   $                   20  
    Long-term Debt                    1,565                    1,583                    1,628  
    Total Debt   $              1,591   $              1,605   $              1,648  
                   
    Cash and Cash Equivalents   $                 943   $                 873   $                 862  
    Restricted Cash                          60                          57                          58  
    Total Cash   $              1,003   $                 930   $                 920  
                   
    Components of Net Debt              
    Current Portion of Long-term Debt   $                   26   $                    22   $                   20  
    Long-term Debt                    1,565                    1,583                    1,628  
    Less: Cash and Cash Equivalents                       943                        873                       862  
    Less: Restricted Cash                          60                          57                          58  
    Net Debt*   $                 588   $                 675   $                 728  
                   
    Net Income for trailing 12 months   $                 481   $                 470   $                 500  
    Adjusted EBITDA* for trailing 12 months   $              1,188   $              1,299   $              1,327  
                   
    Net Leverage* (Net Debt*/Adjusted EBITDA*)                      0.49 x                     0.52 x                    0.55 x


    *Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined

    The MIL Network –

  • MIL-OSI: Ellomay Capital Announces the Acquisition of 15% of Dorad Energy’s Shares by Ellomay Luzon Energy, Increasing Ellomay Luzon Energy’s Holdings in Dorad to 33.75%

    Source: GlobeNewswire (MIL-OSI)

    Tel-Aviv, Israel, July 22, 2025 (GLOBE NEWSWIRE) — Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, the USA and Israel, announced that on July 22, 2025, Ellomay Luzon Energy Infrastructures Ltd. (“Ellomay Luzon Energy”), an Israeli private company 50% held indirectly by the Company, completed the acquisition of 15% of the outstanding shares of Dorad Energy Ltd. (“Dorad”). As a result of the acquisition, Ellomay Luzon Energy holds 33.75% of Dorad’s outstanding shares.  

    Ellomay Luzon Energy acquired 15% of Dorad’s outstanding shares by exercising the right of first refusal granted to Ellomay Luzon Energy and other Dorad shareholders in connection with a sale of the shares by Zorlu Enerji Elektrik Üretim A.S (“Zorlu”), a former Dorad shareholder. In connection with the right of first refusal process, Ellomay Luzon Energy and Edelcom Ltd. (“Edelcom”), each executed an agreement to purchase 7.5% of Dorad’s shares. As not all the conditions to closing of the sale of 7.5% of Dorad’s shares to Edelcom were fulfilled, Edelcom’s agreement was terminated and Ellomay Luzon Energy, who did succeed in fulfilling all of the conditions to closing, acquired 15% of Dorad’s shares.

    The consideration for the shares was approximately NIS 424 million (approximately €108 million), and was funded by bank financing (the “Loan Agreement”) provided to Ellomay Luzon Energy consisting of three tranches as follows: (i) a loan in the amount of NIS 175 million (approximately €45 million), bearing annual interest in the range of +0.5% to -0.5% of the Israeli Prime Rate (the “First Loan”), (ii) a loan in the amount of NIS 175 million (approximately €45 million), bearing fixed annual interest rate between 5% and 6% (the “Second Loan”), and (iii) a loan in the amount of NIS 70 million (approximately €18 million), bearing annual interest rate in the range of +0.5% to -0.5% of the Israeli Prime Rate (the “Third Loan”).

    The First Loan is repayable in four semi-annual payments commencing December 31, 2031 and ending on June 30, 2033, and the interest on the First Loan is payable in semi-annual payments commencing December 31, 2025 and ending on the final repayment of the First Loan. The Second Loan is repayable in sixteen semi-annual payments commencing December 31, 2025 and ending on June 30, 2033, and the interest on the Second Loan is payable in semi-annual payment commencing December 31, 2025 and ending on the final repayment of the Second Loan. The Third Loan is repayable in one payment on December 31, 2025, unless the conditions set forth in the Loan Agreement will not be met, which will enable Ellomay Luzon Energy to ask for an extension until December 31, 2026. The interest on the Third Loan is payable on December 31, 2025 and, to the extent an extension is requested, in semi-annual payments thereafter until the final repayment of the Third Loan.

    In connection with the Loan Agreement, Ellomay Luzon Energy granted the lender a first ranking fixed pledge on its rights in connection with an account with the lender (the “Pledged Account”), in which all amounts due to Ellomay Luzon Energy from Dorad will be deposited. The Loan Agreement provides that when any dividend is received from Dorad: (i) Ellomay Luzon Energy will leave in the Pledged Account the amount required for the next payment to the lender, (ii) to the extent the amount received during a calendar year exceeds NIS 65 million, then Ellomay Luzon Energy will make an early repayment of the First Loan and thereafter the Third Loan in the amount of 50% of the difference between the amount of receipts in the calendar year and NIS 65 million by no later than June 30 of the following year (pro rata over all future payments), and (iii) with respect to any amount in excess of the amounts required as stated in paragraphs (i) and (ii) – Ellomay Luzon Energy is entitled to use the funds deposited in the Pledged Account for any need, subject to the provisions of the law and the agreements with the lender. The Loan Agreement provides that the First and Third Loans may be prepaid without an early repayment fee and the Second Loan may be prepaid subject to payment of fees as generally acceptable in the lender.

    The Loan Agreement includes customary immediate repayment provisions, including in the event of a breach of an undertaking by Ellomay Luzon Energy, a deterioration in Ellomay Luzon Energy’s financial situation and the initiation of legal proceedings in connection with the Dorad shares held by Ellomay Luzon Energy. The Loan Agreement includes additional undertakings by Ellomay Luzon Energy, including not to amend the Ellomay Luzon Energy shareholders’ agreement without the lender’s prior written consent and the execution of an undertaking not to operate outside its current field of operations; not to assume financial obligations and not to provide financing to a third party; not to sell and/or transfer and/or deliver and/or lease and/or rent any Asset and/or any right of its rights, as well as a negative pledge on any Asset (as this term is defined below) and/or part of the its Assets, without the lender’s prior written consent, other than a pledge on its shares of Dorad in favor of the lenders of Dorad. The undertaking defines an “Asset” as any asset and right of Ellomay Luzon Energy, including the shares of Dorad held by it and other rights of any kind, including its unissued share capital and goodwill.

    On July 20, 2025, Edelcom filed a request with the Tel Aviv-Jaffa District Court (the “Court”) for injunctions and temporary injunctions, ex parte, aimed at preventing the receipt of approval from the Dorad board of directors and Dorad’s shareholders for the sale of 7.5% of Dorad’s shares to any third party other than Edelcom and preventing such a sale. The Court, in its decision date July 20, 2025, rejected the request for ex parte relief and directed Edelcom to update the Court on the decisions of Dorad’s board of directors and shareholders by July 22, 2025, and, to the extent that the request for interim relief is still relevant, to file a main proceeding by July 27, 2025, further noting that the respondents (among them, inter alia: Dorad, Ellomay Luzon Energy and Zorlu), will prepare to respond to the request for interim relief by July 30, 2025. The Court’s decision further noted that if future actions will be approved by Dorad based on a transfer of shares if it occurs (and this, as stated, without the Court preventing it), whereby the increased power of the respondents as shareholders is used for the purpose of changes in Dorad’s board of directors, or the transfer of the shares to third parties, as Edelcom noted that it fears, and to the extent that the respondents will try to take such actions or other irrevocable action, Edelcom will be notified seven days in advance, in a manner that will allow it time to act and the Court to give appropriate instructions. A hearing is scheduled for August 6, 2025.

    About Ellomay Capital Ltd.

    Ellomay is an Israeli based company whose shares are registered with the NYSE American and with the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay focuses its business in the renewable energy and power sectors in Europe, the USA and Israel.

    To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy, Spain, the Netherlands and Texas, USA, including:

    • Approximately 335.9 MW of operating solar power plants in Spain (including a 300 MW solar plant in owned by Talasol, which is 51% owned by the Company) and 51% of approximately 38 MW of operating solar power plants in Italy;
    • 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about 6%-8% of Israel’s total current electricity consumption;
    • Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
    • 83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;
    • 51% of solar projects in Italy with an aggregate capacity of 160 MW that commenced construction processes;
    • Solar projects in Italy with an aggregate capacity of 134 MW that have reached “ready to build” status; and
    • Solar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of approximately 27 MW that are connected to the grid and additional 22 MW that are awaiting connection to the grid.

    For more information about Ellomay, visit http://www.ellomay.com.

    Information Relating to Forward-Looking Statements

    This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including potential outcome of current and future litigation in connection with Dorad’s shares held by Ellomay Luzon Energy, changes in electricity prices and demand, regulatory changes increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas) and in the price of oil, the impact of the war and hostilities in Israel and Gaza and between Israel and Iran, the impact of the continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company, inability to obtain the financing required for the development and construction of projects, inability to advance the expansion of Dorad, increases in interest rates and inflation, changes in exchange rates, delays in development, construction, or commencement of operation of the projects under development, failure to obtain permits – whether within the set time frame or at all, climate change, and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

    Contact:
    Kalia Rubenbach (Weintraub)
    CFO
    Tel: +972 (3) 797-1111
    Email: hilai@ellomay.com

    The MIL Network –

  • MIL-Evening Report: Kneecap’s stance on Gaza extends a long history of the Irish supporting other oppressed peoples

    Source: The Conversation (Au and NZ) – By Ciara Smart, PhD Graduand in Australasian Irish History, University of Tasmania

    Love them or hate them, there’s no doubt Irish hip-hop trio Kneecap are having a moment.

    Their music – delivered in a powerful fusion of English and Irish – is known for its gritty lyrics about party drugs and working-class life in post-Troubles Ireland. More recently, the group has made headlines for its outspoken support for the Palestinian people.

    British police have charged member Liam Óg Ó hAnnaidh (known by his stage name Mo Chara) with a terrorism offence. Ó hAnnaidh was charged in May, after being accused of displaying a Hezbollah flag at a London concert in November.

    But this isn’t the first time an Irish republican group has courted controversy for backing other oppressed peoples. This has been happening for almost two centuries.

    Unsanitised and vocal support

    Ireland is composed of 32 counties. Twenty-six are in the Republic of Ireland, while six are part of the United Kingdom in Northern Ireland. When the British government withdrew from most of Ireland in 1921, the Irish Free State was largely Catholic, while Northern Ireland was more heavily Protestant. But these divisions are becoming increasingly irrelevant.

    While Ireland is still split across two nations, public support for Irish unity remains strong, particularly among citizens of the Republic.

    Kneecap’s members are from Belfast, the capital of Northern Ireland. They are also fierce republicans, which means they want to see Ireland united as one nation. One of their most popular songs, Get Your Brits Out, calls for the British state’s withdrawal from Northern Ireland.

    The group has experienced a meteoric rise in recent years, helped by a semi-autobiographical film released last year.

    They have reclaimed the term “Fenian”, often used as an anti-Irish slur. Their decision to rap in Irish is also a cultural milestone, as the language was suppressed in Northern Ireland for most of the 20th century, only achieving official language status in 2022.

    Despite being undeniable provocateurs, they claim they aren’t
    interested in reigniting Catholic-Protestant conflict. They celebrate the similarities between both groups, rather than highlight their differences.

    Ó hAnnaidh’s alleged terrorism offence came after he waved a Hezbollah flag at a London gig and chanted “Up Hamas, up Hezbollah”. Both Hamas and Hezbollah are considered terrorist groups in Britain. He will face court on August 20.

    Irish-Māori solidarity

    Kneecap is carrying on a long tradition of Irish groups who faced controversy for denouncing the oppressive acts of powerful states.

    In the 19th century, several Irish nationalist groups expressed solidarity with other colonised peoples, especially Māori in Aotearoa New Zealand. Groups such as the Irish Republican Brotherhood (whose members were called Fenians) arguably saw Māori and Irish as co-victims of a tyrannical state.

    Irish nationalist newspapers often wrote sympathetically about the colonisation of New Zealand, and tried to inspire Ireland to resist British subjugation, like Māori seemed to be doing.

    This painting by Kennett Watkins, The Death of Von Tempsky at Te Ngutu o Te Manu (circa 1893), portrays conflict in 1868 between armed constabulary and Māori forces.
    Wikimedia

    In July 1864, the Fenian newspaper The Irish People stressed British hypocrisy. It wrote, “savages we call [Māori], using the arrogant language of civilisation, but, honestly, they deserve to be characterised by a much better word”.

    It also scoffed at the “unconquerable propensity of the Anglo-Saxon to plunder the lands of other people – a propensity which manifests itself most strikingly alike in Ireland and New Zealand”.

    Similarly, in December 1868, the nationalist newspaper The Nation contrasted “valiant” Māori with “terrified” British. It sarcastically described Māori as “rebels (men fighting for their own rights on their own soil)” and mocked the British forces as “valiant men who could bully a priest”.

    The article finished on a sombre note: “Mere valour will in the end go down before the force of numbers and the cunning of diplomacy”.

    Rumours of a secret rebellion

    Other Irish leaders, such as the nationalist Michael Davitt, saw inspirational parallels between the nonviolent campaign of Charles Stewart Parnell, the 19th century leader of the Irish Home Rule movement, and Māori leader Te Whiti-o-Rongomai.

    In Ireland, Parnell encouraged poor tenant farmers to pause rent payments to their British landlords. In New Zealand, Te Whiti encouraged Māori to dismantle colonially-constructed fences and plough the land for themselves. Both were arrested in 1881 within three weeks of each other.

    The ‘No Rent Manifesto’ was issued on 18 October 1881, by Parnell and others of the Irish National Land League while in Kilmainham Jail.
    National Library of Ireland

    So strong was the sense of kinship between Irish and Māori that, in the 1860s, there were persistent rumours of a joint Irish-Māori rebellion reported in the media and even New Zealand’s parliament.

    In March, 1869, the conservative New Zealand newspaper Daily Southern Cross reported a large number of Māori “have decided on joining the Fenian Brotherhood, and have adopted the green flag as their national emblem”.

    Later that year, the paper reported the supposed Fenians told a Māori resistance group that, “like the Maori, they hate the British rule, and are prepared to make common cause […] to overthrow that rule in New Zealand”.

    However, these rumours were probably no more than a conspiracy fuelled by racist anti-Irish paranoia.

    Actions and outcomes

    Any tangible results of cross-cultural sympathy from 19th century Irish nationalists were mixed, at best. My ongoing research shows solidarity with Māori was partly motivated by humanitarian motives, but was also often used to make a point about Ireland.

    Identifying with another oppressed peoples within the context of a corrupt empire was a powerful way to argue for improved political recognition within Ireland. Irish nationalists generally didn’t do much other than declare their sympathy.

    Kneecap, on the other hand, seems willing to bear the legal and financial consequences of being vocal about human rights abuses in Gaza. Some of their shows have been cancelled, and funding providers have withdrawn.

    While curated rebellion can be lucrative in show-business, Kneecap says the controversy following them is a distraction. They insist the world should focus squarely on Gaza instead.

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

    – ref. Kneecap’s stance on Gaza extends a long history of the Irish supporting other oppressed peoples – https://theconversation.com/kneecaps-stance-on-gaza-extends-a-long-history-of-the-irish-supporting-other-oppressed-peoples-261261

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Central bank independence and credibility matters. Here’s why

    Source: The Conversation (Au and NZ) – By John Simon, Adjunct Fellow in Economics, Macquarie University

    Olga Kashubin/Shutterstock

    In the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt.

    Powell has so far resisted, but Trump has also threatened to replace him with someone who will do what he asks.

    In Australia, after the Reserve Bank’s surprise decision to hold interest rates steady this month, some commentators have wondered if the central bank had “betrayed” Australians. Treasurer Jim Chalmers pointedly remarked:

    It’s not the result millions of Australians were hoping for or what the market was expecting.

    On Tuesday, the Reserve Bank released the minutes of that controversial policy-setting meeting, which said some economic data was slightly stronger than expected. The majority of the board believed:

    lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner.

    Can’t rates just be kept low?

    Wouldn’t we be better off if central banks kept interest rates low, as some politicians and borrowers were hoping for? It would certainly help those of us with mortgages.

    Surprisingly, the answer is no.

    We are better off when central banks set interest rates with a view on the longer run rather than just the short-term demands of politicians and borrowers.

    To see why we can look at history to see what happens when a central bank isn’t independent.

    Why does independence matter?

    In the 1970s the chairman of the US Federal Reserve, Arthur Burns, was pressured to cut interest rates in the run-up to the 1972 election. He dutifully did so and, while President Richard Nixon was re-elected, this led to “stagflation” – with inflation, unemployment and even interest rates, higher than before interest rates were cut.

    A more recent example of political pressure can be seen in Turkey where the president pressured the central bank to cut interest rates. He hoped to stimulate the economy and believed higher interest rates caused higher inflation.

    Unfortunately, lower rates were shortly followed by higher inflation and, ultimately, much higher interest rates.

    And today in the US, even though Powell has so far resisted Trump’s pressure, financial markets are shaken and long-term interest rates go up when Trump talks about replacing him.

    Lower interest rates can be like a caffeinated energy drink – they give you a short-term energy boost, but can leave you tired, irritable and with a headache when the effects wear off.

    So, why does this happen? It’s all about expectations.

    Expectations about the future matter

    A central bank influences the economy both through what it does and what people expect it to do. The ability to shape expectations is a powerful tool for central banks, especially during crises such as the COVID pandemic, when official interest rates were close to zero.

    Imagine, for example, you are about to take out a mortgage. In making this decision you will likely think not just about current interest rates and your ability to make repayments, but what is likely to happen to future interest rates, your wages and inflation.

    Credibility is the key to successfully shaping people’s expectations. If a central bank is independent and credible, consumers and businesses will listen to what it says and adjust their expectations accordingly.

    The chart below illustrates this point.

    Macquarie University’s Business Outlook Scenarios Survey asks businesses if they believe the Reserve Bank will meet its inflation goals. Those that do trust the bank (the line labelled “certain”) have lower inflation expectations than those that don’t (the line labelled “uncertain”).

    Importantly, the expectations of those that trust the bank to meet its inflation goals tend to align with the bank’s 2–3% inflation target over the business cycle.

    And these expectations affect what businesses and consumers do today.

    So, how credible is the Reserve Bank today?

    Despite the surprise hold, Australians still trust the RBA

    Data from the Business Outlook Scenarios Survey shows the Reserve Bank has rebuilt its credibility since its 2021 “promise” not to raise interest rates until 2024. It has done this by reforming its board structure and membership, being more open and, most critically, by hitting the inflation target.

    Indeed, the most recent survey data shows that, if anything, the surprise decision increased people’s confidence in the bank’s ability to control inflation.

    In July, the survey was in the field between July 7 and 10. The Reserve Bank made its announcement on July 8. Out of 512 businesses surveyed, 368 completed it before the announcement and 144 completed it after the announcement.

    Overall, more than 40% of businesses surveyed were certain the Reserve Bank will achieve its inflation target. This is up from less than 10% a year ago. And, those who completed the survey after the announcement were more likely to trust the Reserve Bank than those that who completed it before the announcement.

    So next time you hear politicians and commentators calling for immediate interest rate cuts, you should hope the Reserve Bank ignores those calls and focuses on the longer term. Overseas experience shows things do not end well when politicians start determining interest rates.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Central bank independence and credibility matters. Here’s why – https://theconversation.com/central-bank-independence-and-credibility-matters-heres-why-260198

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Ultra fast fashion could be taxed to oblivion in France. Could Australia follow suit?

    Source: The Conversation (Au and NZ) – By Rowena Maguire, Professor of Law and Director of the Centre of Justice, Queensland University of Technology

    Ryan McVay/Getty

    For centuries, clothes were hard to produce and expensive. People wore them as long as possible. But manufacturing advances have steadily driven down the cost of production. These days, clothing can be produced very cheaply. In the 1990s, companies began churning out fast fashion: low cost versions of high end trends. In the 2010s came ultra fast fashion, where clothes are produced extremely rapidly and intended to be almost disposable.

    Ultra fast fashion is deeply unsustainable. Producing it is energy intensive and many low quality items go rapidly to landfill.

    In response, France is planning to add a A$16 tax to each item of ultra-fast fashion, require mandatory environmental disclosures and ban advertising and influencer promotions.

    To date, Australia has done little about the problem – even though every Australian bought an average of 53 new pieces of clothing as of 2023 and we send 220,000 tonnes of clothes to the dump annually. Responses so far have focused on voluntary schemes, which have done little to help. Policymakers should look overseas.

    Ultra-fast fashion companies such as Shein and Temu would be targeted by new French laws, if they are passed.
    Arnaud Finistre/Getty

    Why is ultra fast fashion such a problem?

    About 117 billion pieces of clothing were purchased worldwide in 2023 – about 14 pieces per person. That’s well beyond the limit of five new garments per year experts recommend if we’re to live within our planetary boundaries.

    There are many problems with buying too many cheap clothes. Textile manufacturing is surprisingly energy intensive. At present, the industry is responsible for about 2% of global emissions and this is expected to rise steadily. Millions of barrels of oil are used each year to make synthetic fibres such as polyester.

    Ultra fast fashion items rely heavily on synthetic fibres. When washed, they produce large volumes of microplastics which go into rivers and oceans. The European Union estimates textiles account for about 20% of freshwater pollution annually. Many ultra cheap clothing items have question marks over how ethically they were produced. Nearly all of these cheap clothes only have one owner before going to the dump.

    Australia’s response is minimal

    Australia has no national policy on clothing. Circular economy policies and strategies at both federal and state levels don’t tend to focus on textiles.

    Australian consumer laws regulate greenwashing of products. In 2023, Australia’s peak competition regulator flagged the textile industry as one with a high rate of concerning claims.

    Similarly, Australia’s modern slavery laws require large corporations to identify and address risks of slave labour in their operations. Fashion brands often source materials and labour from regions with high exploitation risks Unfortunately, these laws don’t have penalties attached.

    These laws are positive, but still far from the EU’s large-scale efforts to regulate the textile industry.

    One promising effort is the voluntary Seamless textile scheme. Voluntary schemes like these are often used as a way to introduce reforms to a previously unregulated sector or industry.

    The goal of this scheme is to help brands take responsibility for the entire lifespan of the garments they make or sell. Participating brands and retailers pay a levy which is used to promote clothing repair and rental, expand recycling and run information campaigns. Seamless is meant to help the industry prepare for a potential mandatory scheme in the future. Former Federal Environment Minister Tanya Plibersek said she was “not afraid to regulate” last year, but nothing has happened since.

    To date, participation has been very limited. Around 60 brands and retailers have signed up. Ultra-fast fashion brands such as Temu and Shein aren’t covered by the scheme, as they’re based overseas.

    Ultra-fast fashion rapidly turns into rubbish.
    Ernest Rose/Shutterstock

    Time for laws with teeth?

    France’s planned ultra fashion laws are directly aimed at high-volume, low-cost clothing producers with binding measures such as taxes and advertising bans. If the laws come into effect, France would likely see a substantial drop in the flows of these clothes and the textile waste produced.

    By contrast, Australia’s efforts so far aren’t changing things. The Seamless scheme is voluntary, while greenwashing and modern slavery laws rely on disclosures and lack enforcement powers and penalties.

    It wouldn’t be easy. At present, Australia lacks laws focused on textiles, while responsibility for clothing imports is split between different government departments and levels of government. The issue of fast fashion often hits local governments hardest in the form of increased waste volumes, for instance, but local governments have no power over the problem. If policymakers did introduce a French-style tax, they would face resistance from the industry and from some consumers.

    The upside? France’s approach is far more likely to actually curb the damage done by ultra-fast fashion.

    Rowena Maguire receives funding from United Nations Environment Program – Legal Division.

    – ref. Ultra fast fashion could be taxed to oblivion in France. Could Australia follow suit? – https://theconversation.com/ultra-fast-fashion-could-be-taxed-to-oblivion-in-france-could-australia-follow-suit-259559

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Doctors shouldn’t be allowed to object to medical care if it harms their patients

    Source: The Conversation (Au and NZ) – By Julian Savulescu, Visiting Professor in Biomedical Ethics, Murdoch Children’s Research Institute; Distinguished Visiting Professor in Law, University of Melbourne; Uehiro Chair in Practical Ethics, The University of Melbourne

    HRAUN/Getty

    A young woman needs an abortion and the reasons, while urgent, are not medical. A United States Navy nurse at Guantánamo Bay is ordered to force-feed a defiant detainee on hunger strike.

    These very different real-life cases have one connecting thread: the question of whether a health professional can conscientiously object to carrying out a patient’s request.

    Freedom of conscience is often held up as a purely noble principle. But when it’s used to deny health care, it means a single person’s beliefs are dictating what is best for another person’s physical and mental health – which can have devastating, even fatal, results.

    In our recent book, Rethinking Conscientious Objection in Healthcare, colleagues and I conclude doctors should not be free to make medical decisions based on their personal beliefs.

    It’s not noble to refuse care

    Freedom of conscience is strongly – but not absolutely – protected under international human rights law. It is enshrined in the Universal Declaration of Human Rights.

    This principle has often been used for moral purposes: for example, to resist orders to torture or kill.

    But after researching use of conscientious objection by health professionals, I have concluded it is seriously flawed when used to deny patients health services. This is especially so when particular doctors have a monopoly on service provision, as is the case with abortion and assisted dying in many rural and regional areas of Australia.

    In Australia, doctors are allowed to conscientiously object to abortion, although nearly all states require referral to other service providers or information about how to access the relevant service.

    In practice, these laws are not enforced and sometimes disregarded.

    A doctor’s refusal can mean patients can be denied the standard of care they need, or indeed, any care at all.

    Health-care professionals are not like pacifists refusing conscription into the military, opposing something forced upon them. They freely choose health-care careers that come with obligations and with ethical stances already established by professional codes of conduct.

    People are free to hold whatever beliefs they choose, but those beliefs will inevitably close off some options for them. For example, a vegetarian will not be able to work in an abattoir. That is true for every one of us. But what shouldn’t happen is a doctor’s personal beliefs closing off legitimate options for their patient.

    4 guiding questions

    Instead of personal values, there are four key secular principles we propose that doctors should rely on when deciding how to advise patients about sensitive procedures:

    • is it legal?

    • is it a just and fair use of any resources that might be limited?

    • is it in the interests of the patient’s wellbeing?

    • is it what the patient has themselves decided they want?

    Of course, there will be times when some of these principles are in conflict – that is when it is important to apply the most crucial ones, the wellbeing of the patient and the patient’s own wishes.

    In Ireland in 2012, a young woman named Savita Halappanavar went to an Irish hospital for treatment for her miscarriage. Doctors knew there was no hope of the pregnancy surviving but refused to evacuate her uterus while there was still a fetal heartbeat, for fear of breaching Ireland’s anti-abortion laws. The result: Savita died of septicaemia at 31.

    If doctors had put the patient’s wellbeing first, they would have given her that termination, despite the law, and it would have saved her life.

    These are the principles that should have been applied to the examples above: the woman seeking an abortion for career reasons or the nurse refusing to force-feed prisoners.

    The doctor (or nurse) should ask: Is it what the patient has autonomously decided they want? Will it lead to the best outcome for both their physical and their mental health?

    If abortion will promote a woman’s wellbeing, it is in her interests. Hunger strikers should not be force-fed because it violates their autonomy.

    An unfair burden

    While doctors’ personal values are important, they should not dictate care at the bedside. Not only can this disadvantage the patient, but it places an unfair burden on colleagues who do accept such work, and must carry a disproportionate load of procedures they might find unpleasant and financially unrewarding.

    It also creates injustice. Patients who are educated, wealthy and well-connected already find it easier to access health care. Conscientious objection intensifies that unfairness in large swathes of the country because it further limits options.

    Two countries with excellent health-care systems, Sweden and Finland, do not permit conscientious objection by medical professionals.

    In Australia, it is time we do the same and strongly limit conscientious objection as a legal right for health professionals. We should also ensure those entering the discipline are prepared to take on all procedures relevant to their specialty.

    And lastly, but most importantly, we should educate them that the patient’s interests and values must always come first. An individual doctor’s sense of moral authority should not be permitted to morph into medical and moral authoritarianism.

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

    – ref. Doctors shouldn’t be allowed to object to medical care if it harms their patients – https://theconversation.com/doctors-shouldnt-be-allowed-to-object-to-medical-care-if-it-harms-their-patients-260003

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: VA awards more than $2M in grants to memorialize Veterans

    Source: US Department of Veterans Affairs

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    WASHINGTON — The Department of Veterans Affairs today announced seven grants to educational and research institutions totaling $2,195,992 to memorialize Veterans interred in VA national cemeteries as part of the National Cemetery Administration’s Veterans Legacy Program initiative.

    The grants announced today will support the creation of documentaries, lesson plans, instructional aids and other educational materials regarding the lives and accomplishments of Veterans.

    VA established VLP in 2016 to memorialize Veterans through educational outreach and to connect students, educators, and citizens with VA national cemeteries. The program has so far awarded dozens of grants and engaged with more than 15,000 students. Veteran biographies, images and other content are also preserved on VA’s Veterans Legacy Memorial site, where individual web pages commemorate the lives and service of more than 10 million U.S. Veterans interred in U.S. and overseas cemeteries.

    “We are grateful for our collaborations with schools and non-profit organizations across the country to help preserve Veterans’ legacies,” said Acting Under Secretary for Memorial Affairs Ronald Walters. “These grants will help ensure future generations continue to learn about the remarkable men and women interred in VA national cemeteries.”

    The grantees announced today were selected following a rigorous review process. They include:

    • National History Day, Inc., $361,721
      National History Day will identify fifty teachers who live within 90 miles of a VA or VA-funded cemetery to each select two Veterans who served in the U.S. Marine Corps during World War II. These teachers will then guide students to research and write biographical profiles for publication on the Veterans Legacy Memorial.  Student projects will conclude with visits to each Veteran’s grave site, where they will give eulogies based on what they learned about their lives. The program estimates that the 50 teachers selected for this program will reach more than 62,000 students in ten years.
    • Loyola Marymount University, $350,000
      The LMU Digital Veterans Legacy Project is an educational initiative designed to honor U.S. Veterans interred in national cemeteries through collaborative research and digital storytelling. Partnering with local schools, community organizations, ROTC programs, and national cemeteries, the project integrates veterans’ narratives into K-12 and university curricula. Building on the success of previous NCA grants, DVLP has engaged 524 students and produced 291 Veteran biographies. For 2025-2026, the project will train five Teacher Ambassadors to develop and implement three curriculum-aligned lesson plans each, and lead students in researching local veterans and creating digital media projects. LMU will take a community-based participatory methods approach to identifying Veterans by asking educators and community members to select those who have significant connections to their local communities. This project promotes civic engagement, honors Veterans’ legacies, enriches student learning, and will continue to create additional veteran-related learning resources for students and educators.
    • Kennesaw State University Research and Service Foundation, $341,881
      The proposed project represents a continuation and expansion of a project that curates the life histories of Veterans who served in the U.S. military in the late 1940s and 1950s who subsequently participated in the Civil Rights Movement. Building on initial work in 2024-2025 which featured World War II Veterans in Georgia, this proposal focuses on Vietnam-era Veterans in the Southeast. KSU will develop an immersive portfolio of educational and community outreach tools emphasizing community connection, including storyboards and supporting materials uploaded to the Veterans Legacy Memorial, a traveling Vietnam-era museum exhibit, a self-guided walking tour of a NCA cemetery, and community events that promote connection between students, community members, and Veterans. This project will preserve the stories of Veterans who contributed to our nation’s history in an extraordinary manner and promote student and community engagement with state and federal cemeteries in the Southeast. The project focuses on life histories of Veterans and interviews with next-of-kin. Kennesaw will do case identification, recruitment, and data collection, resulting in 967 cases reviewed, 341 cases confirmed to likely meet eligibility criteria, 25 next-of-kin identified and contacted, and eight interviews performed so far. The interviews are the subject of a traveling museum exhibit to be created by KSU Museums, Archives, and Rare Books, which will be created in summer 2025. Presentations based on this project have been accepted at two conferences.
    • U.S. Korea Global Strategy Foundation, $324,999
      This project will increase knowledge and awareness of the “Forgotten War” by creating ten new secondary social studies instructional modules, guiding student research that can be uploaded into VLM and delivering professional development to secondary teachers. Distributed nationally and internationally, the modules focus on the significance and purpose of national cemeteries and the experiences and sacrifices of Korean War Veterans. The project includes instructional modules that guide student research to locate biographical information for Korean War Veterans buried in local national cemeteries.
    • Research Foundation of the City University of New York, $280,000
      This project will develop a professional development seminar for 17 K-12 educators drawn from the greater New York metropolitan area. Participants will familiarize themselves with historical resources and other research materials to produce educational materials which relate to the stories of the Veterans interred in Cypress Hills National Cemetery. Students will generate biographies of Veterans interred at the cemetery that will be published to the Veterans Legacy Memorial. Participants will also be given a guided tour of Cypress Hills National Cemetery where they will become acquainted with the history of the cemetery, visit the important monuments located there, and familiarize themselves with the stories of the individuals interred there.
    • University of Central Florida, $274,439
      The UCF project will extend the memorialization of Veterans interred in National Cemeteries in Florida, with a focus on Cape Canaveral National Cemetery. UCF will partner with the Brevard County Veterans Memorial Center in Merritt Island, Florida and the Museum of Military History in Kissimmee, Florida to identify families of Veterans interested in providing oral history interviews. Educational materials will be created that are derived from these interviews. UCF will work with six Veterans Legacy-experienced educators to create lesson plans for 150 to 200 students during the 2025-2026 school year. UCF will also work with their partners to identify the families/comrades of 12-15 Veterans buried in Cape Canaveral National Cemetery or other Florida national cemeteries. They will digitize family photos, personal letters, commendations and medals, and other records to create source packets. UCF will also create mini podcasts of interviews with Veterans’ families. The video bios, podcasts, and other deliverables will be used in classroom teaching and in educational traveling cemetery tours. Photos and other information compiled will be added to VA’s Veterans Legacy Memorial.
    • West Virginia Humanities Council, Inc., $262,952 This project expands upon the geographical and academic impact of prior Veterans Legacy Grants Program awards, which have produced 30 Veteran biographies in a prior year grant and are creating 26 new Veteran biographies in the current grant. Students at Grafton High in Taylor County, University High in Monongalia County, and — for the first time — Southern West Virginia Community and Technical College in Logan County will conduct original primary source research into the lives of West Virginia Veterans and create short biographies to be published on the Veterans Legacy Memorial. Commemorative events will be held near Memorial Day to showcase student work. This project will expand upon prior projects and will compile data on 71 World War II Veterans to incorporate into a digital exhibit.

    VA operates 156 national cemeteries and 34 soldiers’ lots and monument sites in 45 states and

    Puerto Rico. More than five million Americans, including Veterans of every war and conflict, are buried in VA cemeteries. For information about VA burial benefits, visit one of VA’s National Cemetery locations in-person, visit online at VA burial benefits and memorial items, or call toll free at 800-827-1000. To plan ahead for you and your family, visit NCA’s pre-need eligibility website.

    Reporters and media outlets with questions or comments should contact the Office of Media Relations at vapublicaffairs@va.gov

    Veterans with questions about their health care and benefits (including GI Bill). Questions, updates and documents can be submitted online.

    Contact us online through Ask VA

    Veterans can also use our chatbot to get information about VA benefits and services. The chatbot won’t connect you with a person, but it can show you where to go on VA.gov to find answers to some common questions.

    Learn about our chatbot and ask a question

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    MIL OSI USA News –

  • MIL-OSI: Hanmi Reports 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

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

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

    CEO Commentary

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

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

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

    Second Quarter 2025 Highlights:

    • Second quarter net income was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share in the first quarter; the decline was driven by credit loss expense of $7.6 million.
    • Preprovision net revenue1 grew 3.7%, or $1.0 million, reflecting a 3.7% increase in net interest income, a five basis point increase in the net interest margin, a 4.5% increase in noninterest income and well-managed noninterest expenses with the efficiency ratio remaining unchanged at 55.7%.
    • Asset quality improved significantly from the first quarter – criticized loans dropped 71.8% to 0.74% of total loans reflecting $85.3 million in loan upgrades of two CRE loans, a $20.0 million loan payment, and an $8.6 million loan charge-off; nonaccrual loans fell 26.8% to 0.41% of total loans reflecting the loan charge-off; and loan delinquencies declined to 0.17% of total loans.
    • Loans receivables were $6.31 billion at June 30, 2025, up 0.4% from the end of the first quarter of 2025; loan production for the second quarter was $329.6 million, with a weighted average interest rate of 7.10%.
    • Deposits were $6.73 billion at June 30, 2025, up 1.7% from the end of the first quarter of 2025; noninterest-bearing demand deposits at June 30, 2025 were 31.3% of total deposits.
    • Hanmi’s capital position remains strong with the ratio of tangible common equity to tangible assets2 at 9.58% and the common equity tier 1 capital ratio at 12.12%; both essentially unchanged from the first quarter; tangible book value per share3 was $24.91.

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

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

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

        As of or for the Three Months Ended     Amount Change  
        June 30,     March 31,     December 31,     September 30,     June 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
                                               
    Net income   $ 15,117     $ 17,672     $ 17,695     $ 14,892     $ 14,451     $ (2,555 )   $ 666  
    Net income per diluted common share   $ 0.50     $ 0.58     $ 0.58     $ 0.49     $ 0.48     $ (0.08 )   $ 0.02  
                                               
    Assets   $ 7,862,363     $ 7,729,035     $ 7,677,925     $ 7,712,299     $ 7,586,347     $ 133,328     $ 276,016  
    Loans receivable   $ 6,305,957     $ 6,282,189     $ 6,251,377     $ 6,257,744     $ 6,176,359     $ 23,768     $ 129,598  
    Deposits   $ 6,729,122     $ 6,619,475     $ 6,435,776     $ 6,403,221     $ 6,329,340     $ 109,647     $ 399,782  
                                               
    Return on average assets     0.79 %     0.94 %     0.93 %     0.79 %     0.77 %     -0.15       0.02  
    Return on average stockholders’ equity     7.48 %     8.92 %     8.89 %     7.55 %     7.50 %     -1.44       -0.02  
                                               
    Net interest margin     3.07 %     3.02 %     2.91 %     2.74 %     2.69 %     0.05       0.38  
    Efficiency ratio (1)     55.74 %     55.69 %     56.79 %     59.98 %     62.24 %     0.05       -6.50  
                                               
    Tangible common equity to tangible assets (2)     9.58 %     9.59 %     9.41 %     9.42 %     9.19 %     -0.01       0.39  
    Tangible common equity per common share (2)   $ 24.91     $ 24.49     $ 23.88     $ 24.03     $ 22.99       0.42       1.92  
                                               
    (1) Noninterest expense divided by net interest income plus noninterest income.  
    (2) Refer to “Non-GAAP Financial Measures” for further details.  


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

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

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

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Net Interest Income   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
                                               
    Interest and fees on loans receivable (1)   $ 92,589     $ 90,887     $ 91,545     $ 92,182     $ 90,752       1.9 %     2.0 %
    Interest on securities     6,261       6,169       5,866       5,523       5,238       1.5 %     19.5 %
    Dividends on FHLB stock     354       360       360       356       357       -1.7 %     -0.8 %
    Interest on deposits in other banks     2,129       1,841       2,342       2,356       2,313       15.6 %     -8.0 %
    Total interest and dividend income   $ 101,333     $ 99,257     $ 100,113     $ 100,417     $ 98,660       2.1 %     2.7 %
                                               
    Interest on deposits     41,924       40,559       43,406       47,153       46,495       3.4 %     -9.8 %
    Interest on borrowings     684       2,024       1,634       1,561       1,896       -66.2 %     -63.9 %
    Interest on subordinated debentures     1,586       1,582       1,624       1,652       1,649       0.3 %     -3.8 %
    Total interest expense     44,194       44,165       46,664       50,366       50,040       0.1 %     -11.7 %
    Net interest income   $ 57,139     $ 55,092     $ 53,449     $ 50,051     $ 48,620       3.7 %     17.5 %
                                               
    (1) Includes loans held for sale.  
        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Average Earning Assets and Interest-bearing Liabilities   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loans receivable (1)   $ 6,257,741     $ 6,189,531     $ 6,103,264     $ 6,112,324     $ 6,089,440       1.1 %     2.8 %
    Securities     993,975       1,001,499       998,313       986,041       979,671       -0.8 %     1.5 %
    FHLB stock     16,385       16,385       16,385       16,385       16,385       0.0 %     0.0 %
    Interest-bearing deposits in other banks     200,266       176,028       204,408       183,027       180,177       13.8 %     11.1 %
    Average interest-earning assets   $ 7,468,367     $ 7,383,443     $ 7,322,370     $ 7,297,777     $ 7,265,673       1.2 %     2.8 %
                                               
    Demand: interest-bearing   $ 81,308     $ 79,369     $ 79,784     $ 83,647     $ 85,443       2.4 %     -4.8 %
    Money market and savings     2,109,221       2,037,224       1,934,540       1,885,799       1,845,870       3.5 %     14.3 %
    Time deposits     2,434,659       2,345,346       2,346,363       2,427,737       2,453,154       3.8 %     -0.8 %
    Average interest-bearing deposits     4,625,188       4,461,939       4,360,687       4,397,183       4,384,467       3.7 %     5.5 %
    Borrowings     60,134       179,444       141,604       143,479       169,525       -66.5 %     -64.5 %
    Subordinated debentures     130,880       130,718       130,567       130,403       130,239       0.1 %     0.5 %
    Average interest-bearing liabilities   $ 4,816,202     $ 4,772,101     $ 4,632,858     $ 4,671,065     $ 4,684,231       0.9 %     2.8 %
                                               
    Average Noninterest Bearing Deposits                                          
    Demand deposits – noninterest bearing   $ 1,934,985     $ 1,895,953     $ 1,967,789     $ 1,908,833     $ 1,883,765       2.1 %     2.7 %
                                               
    (1) Includes loans held for sale.  
        For the Three Months Ended     Yield/Rate Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Average Yields and Rates   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loans receivable (1)     5.93 %     5.95 %     5.97 %     6.00 %     5.99 %     -0.02       -0.06  
    Securities (2)     2.55 %     2.49 %     2.38 %     2.27 %     2.17 %     0.06       0.38  
    FHLB stock     8.65 %     8.92 %     8.75 %     8.65 %     8.77 %     -0.27       -0.12  
    Interest-bearing deposits in other banks     4.26 %     4.24 %     4.56 %     5.12 %     5.16 %     0.02       -0.90  
    Interest-earning assets     5.44 %     5.45 %     5.45 %     5.48 %     5.46 %     -0.01       -0.02  
                                               
    Interest-bearing deposits     3.64 %     3.69 %     3.96 %     4.27 %     4.27 %     -0.05       -0.63  
    Borrowings     4.58 %     4.57 %     4.59 %     4.33 %     4.50 %     0.01       0.08  
    Subordinated debentures     4.84 %     4.84 %     4.97 %     5.07 %     5.07 %     0.00       -0.23  
    Interest-bearing liabilities     3.68 %     3.75 %     4.01 %     4.29 %     4.30 %     -0.07       -0.62  
                                               
    Net interest margin (taxable equivalent basis)     3.07 %     3.02 %     2.91 %     2.74 %     2.69 %     0.05       0.38  
                                               
    Cost of deposits     2.56 %     2.59 %     2.73 %     2.97 %     2.98 %     -0.03       -0.42  
                                               
    (1) Includes loans held for sale.  
    (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

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

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

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Noninterest Income   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Service charges on deposit accounts   $ 2,169     $ 2,217     $ 2,192     $ 2,311     $ 2,429       -2.2 %     -10.7 %
    Trade finance and other service charges and fees     1,461       1,396       1,364       1,254       1,277       4.7 %     14.4 %
    Servicing income     754       732       668       817       796       3.0 %     -5.3 %
    Bank-owned life insurance income     708       309       316       320       638       129.1 %     11.0 %
    All other operating income     819       897       1,037       1,008       908       -8.7 %     -9.8 %
    Service charges, fees & other     5,911       5,551       5,577       5,710       6,048       6.5 %     -2.3 %
                                               
    Gain on sale of SBA loans     2,160       2,000       1,443       1,544       1,644       8.0 %     31.4 %
    Gain on sale of mortgage loans     –       175       337       324       365       -100.0 %     -100.0 %
    Gain on sale of bank premises     –       –       –       860       –       0.0 %     0.0 %
    Total noninterest income   $ 8,071     $ 7,726     $ 7,357     $ 8,438     $ 8,057       4.5 %     0.2 %

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

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Noninterest Expense                                          
    Salaries and employee benefits   $ 22,069     $ 20,972     $ 20,498     $ 20,851     $ 20,434       5.2 %     8.0 %
    Occupancy and equipment     4,344       4,450       4,503       4,499       4,348       -2.4 %     -0.1 %
    Data processing     3,727       3,787       3,800       3,839       3,686       -1.6 %     1.1 %
    Professional fees     1,725       1,468       1,821       1,492       1,749       17.5 %     -1.4 %
    Supplies and communication     515       517       551       538       570       -0.4 %     -9.6 %
    Advertising and promotion     798       585       821       631       669       36.4 %     19.3 %
    All other operating expenses     3,567       3,175       3,847       2,875       3,251       12.3 %     9.7 %
    Subtotal     36,745       34,954       35,841       34,725       34,707       5.1 %     5.9 %
                                               
    Branch consolidation expense     –       –       –       –       301       0.0 %     -100.0 %
    Other real estate owned expense (income)     (461 )     41       (1,588 )     77       6     N/M     N/M  
    Repossessed personal property expense (income)     63       (11 )     281       278       262       -672.7 %     -76.0 %
    Total noninterest expense   $ 36,347     $ 34,984     $ 34,534     $ 35,080     $ 35,276       3.9 %     3.0 %

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

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

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

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

        As of (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loan Portfolio                                          
    Commercial real estate loans   $ 3,948,922     $ 3,975,651     $ 3,949,622     $ 3,932,088     $ 3,888,505       -0.7 %     1.6 %
    Residential/consumer loans     993,869       979,536       951,302       939,285       954,209       1.5 %     4.2 %
    Commercial and industrial loans     917,995       854,406       863,431       879,092       802,372       7.4 %     14.4 %
    Equipment finance     445,171       472,596       487,022       507,279       531,273       -5.8 %     -16.2 %
    Loans receivable     6,305,957       6,282,189       6,251,377       6,257,744       6,176,359       0.4 %     2.1 %
    Loans held for sale     49,611       11,831       8,579       54,336       10,467       319.3 %     374.0 %
    Total   $ 6,355,568     $ 6,294,020     $ 6,259,956     $ 6,312,080     $ 6,186,826       1.0 %     2.7 %
        As of  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Composition of Loan Portfolio                              
    Commercial real estate loans     62.2 %     63.1 %     63.1 %     62.3 %     62.9 %
    Residential/consumer loans     15.6 %     15.6 %     15.2 %     14.9 %     15.4 %
    Commercial and industrial loans     14.4 %     13.6 %     13.8 %     13.9 %     13.0 %
    Equipment finance     7.0 %     7.5 %     7.8 %     8.0 %     8.5 %
    Loans receivable     99.2 %     99.8 %     99.9 %     99.1 %     99.8 %
    Loans held for sale     0.8 %     0.2 %     0.1 %     0.9 %     0.2 %
    Total     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

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

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

        For the Three Months Ended (in thousands)  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    New Loan Production                              
    Commercial real estate loans   $ 111,993     $ 146,606     $ 146,716     $ 110,246     $ 87,632  
    Residential/consumer loans     83,761       55,000       40,225       40,758       30,194  
    Commercial and industrial loans     53,444       42,344       60,159       105,086       59,007  
    SBA loans     46,829       55,242       49,740       51,616       54,486  
    Equipment finance     33,567       46,749       42,168       40,066       42,594  
    Subtotal     329,594       345,941       339,008       347,772       273,913  
                                   
                                   
    Payoffs     (119,139 )     (125,102 )     (137,933 )     (77,603 )     (148,400 )
    Amortization     (151,357 )     (90,743 )     (60,583 )     (151,674 )     (83,640 )
    Loan sales     (35,388 )     (42,193 )     (67,852 )     (43,868 )     (42,945 )
    Net line utilization     12,435       (53,901 )     (75,651 )     9,426       1,929  
    Charge-offs & OREO     (12,377 )     (3,190 )     (3,356 )     (2,668 )     (2,338 )
                                   
    Loans receivable-beginning balance     6,282,189       6,251,377       6,257,744       6,176,359       6,177,840  
    Loans receivable-ending balance   $ 6,305,957     $ 6,282,189     $ 6,251,377     $ 6,257,744     $ 6,176,359  

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

        As of (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Deposit Portfolio                                          
    Demand: noninterest-bearing   $ 2,105,369     $ 2,066,659     $ 2,096,634     $ 2,051,790     $ 1,959,963       1.9 %     7.4 %
    Demand: interest-bearing     90,172       80,790       80,323       79,287       82,981       11.6 %     8.7 %
    Money market and savings     2,092,847       2,073,943       1,933,535       1,898,834       1,834,797       0.9 %     14.1 %
    Time deposits     2,440,734       2,398,083       2,325,284       2,373,310       2,451,599       1.8 %     -0.4 %
    Total deposits   $ 6,729,122     $ 6,619,475     $ 6,435,776     $ 6,403,221     $ 6,329,340       1.7 %     6.3 %
        As of  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Composition of Deposit Portfolio                              
    Demand: noninterest-bearing     31.3 %     31.2 %     32.6 %     32.0 %     31.0 %
    Demand: interest-bearing     1.3 %     1.2 %     1.2 %     1.2 %     1.3 %
    Money market and savings     31.1 %     31.3 %     30.0 %     29.7 %     29.0 %
    Time deposits     36.3 %     36.3 %     36.2 %     37.1 %     38.7 %
    Total deposits     100.0 %     100.0 %     100.1 %     100.0 %     100.0 %

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

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

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


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

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

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

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

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

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

        As of or for the Three Months Ended (in thousands)     Amount Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Asset Quality Data and Ratios                                          
                                               
    Delinquent loans:                                          
    Loans, 30 to 89 days past due and still accruing   $ 10,953     $ 17,312     $ 18,454     $ 15,027     $ 13,844     $ (6,359 )   $ (2,891 )
    Delinquent loans to total loans     0.17 %     0.28 %     0.30 %     0.24 %     0.22 %     (0.11 )     (0.05 )
                                               
    Criticized loans:                                          
    Special mention   $ 12,701     $ 118,380     $ 139,612     $ 131,575     $ 36,921     $ (105,679 )   $ (24,220 )
    Classified     33,857       46,519       25,683       28,377       33,945       (12,662 )     (88 )
    Total criticized loans (1)   $ 46,558     $ 164,899     $ 165,295     $ 159,952     $ 70,866     $ (118,341 )   $ (24,308 )
                                               
    Criticized loans to total loans     0.74 %     2.62 %     2.64 %     2.56 %     1.15 %     (1.88 )     (0.41 )
                                               
    Nonperforming assets:                                          
    Nonaccrual loans   $ 25,968     $ 35,459     $ 14,272     $ 15,248     $ 19,245     $ (9,491 )   $ 6,723  
    Loans 90 days or more past due and still accruing     –       112       –       242       –       (112 )     –  
    Nonperforming loans (2)     25,968       35,571       14,272       15,490       19,245       (9,603 )     6,723  
    Other real estate owned, net     –       117       117       772       772       (117 )     (772 )
    Nonperforming assets (3)   $ 25,968     $ 35,688     $ 14,389     $ 16,262     $ 20,017     $ (9,720 )   $ 5,951  
                                               
    Nonperforming assets to assets (2)     0.33 %     0.46 %     0.19 %     0.21 %     0.26 %     -0.13       0.07  
    Nonperforming loans to total loans     0.41 %     0.57 %     0.23 %     0.25 %     0.31 %     -0.16       0.10  
                                               
    (1) Includes nonaccrual loans of $24.1 million, $34.4 million, $13.4 million, $13.6 million, and $18.4 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.  
    (2) Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.  
    (3) Excludes repossessed personal property of $0.6 million, $0.7 million, $0.6 million, $1.2 million, and $1.2 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.  
        As of or for the Three Months Ended (in thousands)  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Allowance for credit losses related to loans:                              
    Balance at beginning of period   $ 70,597     $ 70,147     $ 69,163     $ 67,729     $ 68,270  
    Credit loss expense (recovery) on loans     7,524       2,396       855       2,312       1,248  
    Net loan (charge-offs) recoveries     (11,365 )     (1,946 )     129       (878 )     (1,789 )
    Balance at end of period   $ 66,756     $ 70,597     $ 70,147     $ 69,163     $ 67,729  
                                   
    Net loan charge-offs (recoveries) to average loans (1)     0.73 %     0.13 %     -0.01 %     0.06 %     0.12 %
    Allowance for credit losses to loans     1.06 %     1.12 %     1.12 %     1.11 %     1.10 %
                                   
    Allowance for credit losses related to off-balance sheet items:                              
    Balance at beginning of period   $ 2,399     $ 2,074     $ 1,984     $ 2,010     $ 2,297  
    Credit loss expense (recovery) on off-balance sheet items     107       325       90       (26 )     (287 )
    Balance at end of period   $ 2,506     $ 2,399     $ 2,074     $ 1,984     $ 2,010  
                                   
    Unused commitments to extend credit   $ 915,847     $ 896,282     $ 782,587     $ 739,975     $ 795,391  
                                   
    (1) Annualized                              


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

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

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

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

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

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

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

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

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

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

        June 30,     March 31,     Percentage     June 30,     Percentage  
        2025     2025     Change     2024     Change  
    Assets                              
    Cash and due from banks   $ 380,050     $ 329,003       15.5 %   $ 313,079       21.4 %
    Securities available for sale, at fair value     918,094       907,011       1.2 %     877,638       4.6 %
    Loans held for sale, at the lower of cost or fair value     49,611       11,831       319.3 %     10,467       374.0 %
    Loans receivable, net of allowance for credit losses     6,239,201       6,211,592       0.4 %     6,108,630       2.1 %
    Accrued interest receivable     23,749       23,536       0.9 %     23,958       -0.9 %
    Premises and equipment, net     20,607       20,866       -1.2 %     21,955       -6.1 %
    Customers’ liability on acceptances     214       552       -61.2 %     551       -61.2 %
    Servicing assets     6,420       6,422       0.0 %     6,836       -6.1 %
    Goodwill and other intangible assets, net     11,031       11,031       0.0 %     11,048       -0.2 %
    Federal Home Loan Bank (“FHLB”) stock, at cost     16,385       16,385       0.0 %     16,385       0.0 %
    Bank-owned life insurance     56,985       57,476       -0.9 %     56,534       0.8 %
    Prepaid expenses and other assets     140,016       133,330       5.0 %     139,266       0.5 %
    Total assets   $ 7,862,363     $ 7,729,035       1.7 %   $ 7,586,347       3.6 %
                                   
    Liabilities and Stockholders’ Equity                              
    Liabilities:                              
    Deposits:                              
    Noninterest-bearing   $ 2,105,369     $ 2,066,659       1.9 %   $ 1,959,963       7.4 %
    Interest-bearing     4,623,753       4,552,816       1.6 %     4,369,377       5.8 %
    Total deposits     6,729,122       6,619,475       1.7 %     6,329,340       6.3 %
    Accrued interest payable     30,567       29,646       3.1 %     47,699       -35.9 %
    Bank’s liability on acceptances     214       552       -61.2 %     551       -61.2 %
    Borrowings     127,500       117,500       8.5 %     292,500       -56.4 %
    Subordinated debentures     130,960       130,799       0.1 %     130,318       0.5 %
    Accrued expenses and other liabilities     81,166       79,578       2.0 %     78,880       2.9 %
    Total liabilities     7,099,529       6,977,550       1.7 %     6,879,288       3.2 %
                                   
    Stockholders’ equity:                              
    Common stock     34       34       0.0 %     34       0.0 %
    Additional paid-in capital     592,825       591,942       0.1 %     588,647       0.7 %
    Accumulated other comprehensive (loss)     (54,511 )     (60,002 )     9.2 %     (78,000 )     30.1 %
    Retained earnings     367,251       360,289       1.9 %     333,392       10.2 %
    Less treasury stock     (142,765 )     (140,778 )     -1.4 %     (137,014 )     -4.2 %
    Total stockholders’ equity     762,834       751,485       1.5 %     707,059       7.9 %
    Total liabilities and stockholders’ equity   $ 7,862,363     $ 7,729,035       1.7 %   $ 7,586,347       3.6 %

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

        Three Months Ended  
        June 30,     March 31,     Percentage     June 30,     Percentage  
        2025     2025     Change     2024     Change  
    Interest and dividend income:                              
    Interest and fees on loans receivable   $ 92,589     $ 90,887       1.9 %   $ 90,752       2.0 %
    Interest on securities     6,261       6,169       1.5 %     5,238       19.5 %
    Dividends on FHLB stock     354       360       -1.7 %     357       -0.8 %
    Interest on deposits in other banks     2,129       1,841       15.6 %     2,313       -8.0 %
    Total interest and dividend income     101,333       99,257       2.1 %     98,660       2.7 %
    Interest expense:                              
    Interest on deposits     41,924       40,559       3.4 %     46,495       -9.8 %
    Interest on borrowings     684       2,024       -66.2 %     1,896       -63.9 %
    Interest on subordinated debentures     1,586       1,582       0.3 %     1,649       -3.8 %
    Total interest expense     44,194       44,165       0.1 %     50,040       -11.7 %
    Net interest income before credit loss expense     57,139       55,092       3.7 %     48,620       17.5 %
    Credit loss expense     7,631       2,721       180.4 %     961       694.1 %
    Net interest income after credit loss expense     49,508       52,371       -5.5 %     47,659       3.9 %
    Noninterest income:                              
    Service charges on deposit accounts     2,169       2,217       -2.2 %     2,429       -10.7 %
    Trade finance and other service charges and fees     1,461       1,396       4.7 %     1,277       14.4 %
    Gain on sale of Small Business Administration (“SBA”) loans     2,160       2,000       8.0 %     1,644       31.4 %
    Other operating income     2,281       2,113       8.0 %     2,707       -15.7 %
    Total noninterest income     8,071       7,726       4.5 %     8,057       0.2 %
    Noninterest expense:                              
    Salaries and employee benefits     22,069       20,972       5.2 %     20,434       8.0 %
    Occupancy and equipment     4,344       4,450       -2.4 %     4,607       -5.7 %
    Data processing     3,727       3,787       -1.6 %     3,686       1.1 %
    Professional fees     1,725       1,468       17.5 %     1,749       -1.4 %
    Supplies and communications     515       517       -0.4 %     570       -9.6 %
    Advertising and promotion     798       585       36.4 %     669       19.3 %
    Other operating expenses     3,169       3,205       -1.1 %     3,561       -11.0 %
    Total noninterest expense     36,347       34,984       3.9 %     35,276       3.0 %
    Income before tax     21,232       25,113       -15.5 %     20,440       3.9 %
    Income tax expense     6,115       7,441       -17.8 %     5,989       2.1 %
    Net income   $ 15,117     $ 17,672       -14.5 %   $ 14,451       4.6 %
                                   
    Basic earnings per share:   $ 0.50     $ 0.59           $ 0.48        
    Diluted earnings per share:   $ 0.50     $ 0.58           $ 0.48        
                                   
    Weighted-average shares outstanding:                              
    Basic     29,948,836       29,937,660             30,055,913        
    Diluted     30,054,456       30,058,248             30,133,646        
    Common shares outstanding     30,176,568       30,233,514             30,272,110        

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

        Six Months Ended  
        June 30,     June 30,     Percentage  
        2025     2024     Change  
    Interest and dividend income:                  
    Interest and fees on loans receivable   $ 183,476     $ 182,427       0.6 %
    Interest on securities     12,430       10,193       21.9 %
    Dividends on FHLB stock     714       719       -0.7 %
    Interest on deposits in other banks     3,969       4,914       -19.2 %
    Total interest and dividend income     200,589       198,253       1.2 %
    Interest expense:                  
    Interest on deposits     82,483       92,133       -10.5 %
    Interest on borrowings     2,708       3,551       -23.7 %
    Interest on subordinated debentures     3,167       3,295       -3.9 %
    Total interest expense     88,358       98,979       -10.7 %
    Net interest income before credit loss expense     112,231       99,274       13.1 %
    Credit loss expense     10,352       1,188       771.4 %
    Net interest income after credit loss expense     101,879       98,086       3.9 %
    Noninterest income:                  
    Service charges on deposit accounts     4,387       4,878       -10.1 %
    Trade finance and other service charges and fees     2,858       2,691       6.2 %
    Gain on sale of Small Business Administration (“SBA”) loans     4,161       3,126       33.1 %
    Other operating income     4,390       5,095       -13.8 %
    Total noninterest income     15,796       15,790       0.0 %
    Noninterest expense:                  
    Salaries and employee benefits     43,041       42,019       2.4 %
    Occupancy and equipment     8,794       9,144       -3.8 %
    Data processing     7,514       7,237       3.8 %
    Professional fees     3,194       3,642       -12.3 %
    Supplies and communications     1,031       1,172       -12.0 %
    Advertising and promotion     1,382       1,576       -12.3 %
    Other operating expenses     6,374       6,930       -8.0 %
    Total noninterest expense     71,330       71,720       -0.5 %
    Income before tax     46,345       42,156       9.9 %
    Income tax expense     13,556       12,541       8.1 %
    Net income   $ 32,789     $ 29,615       10.7 %
                       
    Basic earnings per share:   $ 1.09     $ 0.98        
    Diluted earnings per share:   $ 1.08     $ 0.97        
                       
    Weighted-average shares outstanding:                  
    Basic     29,943,279       30,089,341        
    Diluted     30,048,704       30,166,181        
    Common shares outstanding     30,176,568       30,272,110        

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

        Three Months Ended  
        June 30, 2025     March 31, 2025     June 30, 2024  
              Interest     Average           Interest     Average           Interest     Average  
        Average     Income /     Yield /     Average     Income /     Yield /     Average     Income /     Yield /  
        Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate  
    Assets                                                      
    Interest-earning assets:                                                      
    Loans receivable (1)   $ 6,257,741     $ 92,589       5.93 %   $ 6,189,531     $ 90,887       5.95 %   $ 6,089,440     $ 90,752       5.99 %
    Securities (2)     993,975       6,261       2.55 %     1,001,499       6,169       2.49 %     979,671       5,238       2.17 %
    FHLB stock     16,385       354       8.65 %     16,385       360       8.92 %     16,385       357       8.77 %
    Interest-bearing deposits in other banks     200,266       2,129       4.26 %     176,028       1,841       4.24 %     180,177       2,313       5.16 %
    Total interest-earning assets     7,468,367       101,333       5.44 %     7,383,443       99,257       5.45 %     7,265,673       98,660       5.46 %
                                                           
    Noninterest-earning assets:                                                      
    Cash and due from banks     53,977                   53,670                   55,442              
    Allowance for credit losses     (70,222 )                 (69,648 )                 (67,908 )            
    Other assets     250,241                   249,148                   252,410              
                                                           
    Total assets   $ 7,702,363                 $ 7,616,613                 $ 7,505,617              
                                                           
    Liabilities and Stockholders’ Equity                                                      
    Interest-bearing liabilities:                                                      
    Deposits:                                                      
    Demand: interest-bearing   $ 81,308     $ 29       0.15 %   $ 79,369     $ 27       0.14 %   $ 85,443     $ 32       0.15 %
    Money market and savings     2,109,221       17,342       3.30 %     2,037,224       16,437       3.27 %     1,845,870       17,324       3.77 %
    Time deposits     2,434,659       24,553       4.05 %     2,345,346       24,095       4.17 %     2,453,154       29,139       4.78 %
    Total interest-bearing deposits     4,625,188       41,924       3.64 %     4,461,939       40,559       3.69 %     4,384,467       46,495       4.27 %
    Borrowings     60,134       684       4.58 %     179,444       2,024       4.57 %     169,525       1,896       4.50 %
    Subordinated debentures     130,880       1,586       4.84 %     130,718       1,582       4.84 %     130,239       1,649       5.07 %
    Total interest-bearing liabilities     4,816,202       44,194       3.68 %     4,772,101       44,165       3.75 %     4,684,231       50,040       4.30 %
                                                           
    Noninterest-bearing liabilities and equity:                                                      
    Demand deposits: noninterest-bearing     1,934,985                   1,895,953                   1,883,765              
    Other liabilities     140,053                   144,654                   162,543              
    Stockholders’ equity     811,123                   803,905                   775,078              
                                                           
    Total liabilities and stockholders’ equity   $ 7,702,363                 $ 7,616,613                 $ 7,505,617              
                                                           
    Net interest income         $ 57,139                 $ 55,092                 $ 48,620        
                                                           
    Cost of deposits                 2.56 %                 2.59 %                 2.98 %
    Net interest spread (taxable equivalent basis)                 1.76 %                 1.70 %                 1.16 %
    Net interest margin (taxable equivalent basis)                 3.07 %                 3.02 %                 2.69 %
                                                           
    (1) Includes average loans held for sale  
    (2) Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

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

        Six Months Ended  
        June 30, 2025     June 30, 2024  
              Interest     Average           Interest     Average  
        Average     Income /     Yield /     Average     Income /     Yield /  
        Balance     Expense     Rate     Balance     Expense     Rate  
    Assets                                    
    Interest-earning assets:                                    
    Loans receivable (1)   $ 6,223,825     $ 183,476       5.94 %   $ 6,113,664     $ 182,427       6.00 %
    Securities (2)     997,716       12,430       2.52 %     974,596       10,193       2.12 %
    FHLB stock     16,385       714       8.79 %     16,385       719       8.82 %
    Interest-bearing deposits in other banks     188,214       3,969       4.25 %     190,950       4,914       5.18 %
    Total interest-earning assets     7,426,140       200,589       5.44 %     7,295,595       198,253       5.46 %
                                         
    Noninterest-earning assets:                                    
    Cash and due from banks     53,824                   56,912              
    Allowance for credit losses     (69,936 )                 (68,507 )            
    Other assets     249,697                   248,555              
                                         
    Total assets   $ 7,659,725                 $ 7,532,555              
                                         
    Liabilities and Stockholders’ Equity                                    
    Interest-bearing liabilities:                                    
    Deposits:                                    
    Demand: interest-bearing   $ 80,344     $ 56       0.14 %   $ 85,922     $ 61       0.14 %
    Money market and savings     2,073,421       33,779       3.29 %     1,830,478       33,877       3.72 %
    Time deposits     2,390,249       48,648       4.10 %     2,480,492       58,195       4.72 %
    Total interest-bearing deposits     4,544,014       82,483       3.66 %     4,396,892       92,133       4.21 %
    Borrowings     119,460       2,708       4.57 %     165,972       3,551       4.30 %
    Subordinated debentures     130,799       3,167       4.84 %     130,163       3,295       5.06 %
    Total interest-bearing liabilities     4,794,273       88,358       3.72 %     4,693,027       98,979       4.24 %
                                         
    Noninterest-bearing liabilities and equity:                                    
    Demand deposits: noninterest-bearing     1,915,577                   1,902,477              
    Other liabilities     142,341                   163,533              
    Stockholders’ equity     807,534                   773,518              
                                         
    Total liabilities and stockholders’ equity   $ 7,659,725                 $ 7,532,555              
                                         
    Net interest income         $ 112,231                 $ 99,274        
                                         
    Cost of deposits                 2.58 %                 2.94 %
    Net interest spread (taxable equivalent basis)                 1.73 %                 1.22 %
    Net interest margin (taxable equivalent basis)                 3.05 %                 2.74 %
                                         
    (1) Includes average loans held for sale  
    (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  


    Non-GAAP Financial Measures

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

    Tangible Common Equity to Tangible Assets Ratio

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

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

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

        June 30,     March 31,     December 31,     September 30,     June 30,  
    Hanmi Financial Corporation   2025     2025     2024     2024     2024  
    Assets   $ 7,862,363     $ 7,729,035     $ 7,677,925     $ 7,712,299     $ 7,586,347  
    Less goodwill and other intangible assets     (11,031 )     (11,031 )     (11,031 )     (11,031 )     (11,048 )
    Tangible assets   $ 7,851,332     $ 7,718,004     $ 7,666,894     $ 7,701,268     $ 7,575,299  
                                   
    Stockholders’ equity (1)   $ 762,834     $ 751,485     $ 732,174     $ 736,709     $ 707,059  
    Less goodwill and other intangible assets     (11,031 )     (11,031 )     (11,031 )     (11,031 )     (11,048 )
    Tangible stockholders’ equity (1)   $ 751,803     $ 740,454     $ 721,143     $ 725,678     $ 696,011  
                                   
    Stockholders’ equity to assets     9.70 %     9.72 %     9.54 %     9.55 %     9.32 %
    Tangible common equity to tangible assets (1)     9.58 %     9.59 %     9.41 %     9.42 %     9.19 %
                                   
    Common shares outstanding     30,176,568       30,233,514       30,195,999       30,196,755       30,272,110  
    Tangible common equity per common share   $ 24.91     $ 24.49     $ 23.88     $ 24.03     $ 22.99  
                                   
    (1) There were no preferred shares outstanding at the periods indicated.  


    Preprovision Net Revenue

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

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

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

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

    The MIL Network –

  • MIL-OSI: Enphase Energy Reports Financial Results for the Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    FREMONT, Calif., July 22, 2025 (GLOBE NEWSWIRE) — Enphase Energy, Inc. (NASDAQ: ENPH), a global energy technology company and the world’s leading supplier of microinverter-based solar and battery systems, announced today financial results for the second quarter of 2025, which included the summary below from its President and CEO, Badri Kothandaraman.

    We reported quarterly revenue of $363.2 million in the second quarter of 2025, along with 48.6% for non-GAAP gross margin. We shipped approximately 1.53 million microinverters, or 675.4 megawatts DC, and 190.9 megawatt hours (MWh) of IQ® Batteries.

    Highlights for the second quarter of 2025 are listed below:

    • IQ® Meter Collar approved by 29 U.S. utilities to date
    • U.S. manufacturing: shipped approximately 1.41 million microinverters and record 46.9 MWh of IQ Batteries
    • Revenue of $363.2 million
    • GAAP gross margin of 46.9%; non-GAAP gross margin of 48.6% with net IRA benefit
    • Non-GAAP gross margin of 37.2%, excluding net IRA benefit of 11.4%
    • GAAP operating income of $37.0 million; non-GAAP operating income of $98.6 million
    • GAAP net income of $37.1 million; non-GAAP net income of $89.9 million
    • GAAP diluted earnings per share of $0.28; non-GAAP diluted earnings per share of $0.69
    • Free cash flow of $18.4 million; ending cash, cash equivalents and marketable securities of $1.53 billion

    Our revenue and earnings for the second quarter of 2025 are provided below, compared with the prior quarter:

    (In thousands, except per share and percentage data)

      GAAP   Non-GAAP
      Q2 2025   Q1 2025   Q2 2024   Q2 2025   Q1 2025   Q2 2024
    Revenue $ 363,153     $ 356,084     $ 303,458     $ 363,153     $ 356,084     $ 303,458  
    Gross margin   46.9 %     47.2 %     45.2 %     48.6 %     48.9 %     47.1 %
    Operating expenses $ 133,486     $ 136,319     $ 135,367     $ 77,781     $ 79,423     $ 81,706  
    Operating income $ 37,007     $ 31,922     $ 1,799     $ 98,613     $ 94,637     $ 61,080  
    Net income $ 37,052     $ 29,730     $ 10,833     $ 89,869     $ 89,243     $ 58,824  
    Basic EPS $ 0.28     $ 0.23     $ 0.08     $ 0.69     $ 0.68     $ 0.43  
    Diluted EPS $ 0.28     $ 0.22     $ 0.08     $ 0.69     $ 0.68     $ 0.43  
     

    Total revenue for the second quarter of 2025 was $363.2 million, compared to $356.1 million in the first quarter of 2025. Our revenue in the second quarter of 2025 included $40.4 million of safe harbor revenue, compared to $54.3 million of safe harbor revenue in the first quarter. Our revenue in the United States for the second quarter of 2025 increased approximately 3%, compared to the first quarter. The increase was the result of seasonality partially offset by lower safe harbor revenue. Our revenue in Europe increased approximately 11% for the second quarter of 2025, compared to the first quarter. The increase in revenue was primarily due to higher microinverter and battery sales as we continued to ramp shipments of our IQ® Battery 5P™ with FlexPhase during the second quarter.

    Our non-GAAP gross margin was 48.6% in the second quarter of 2025, compared to 48.9% in the first quarter. Our non-GAAP gross margin, excluding net benefit from the Inflation Reduction Act (IRA), was 37.2% in the second quarter of 2025, compared to 38.3% in the first quarter. The reciprocal tariffs had a negative impact of approximately two percentage points on margins.

    Our non-GAAP operating expenses were $77.8 million in the second quarter of 2025, compared to $79.4 million in the first quarter. Our non-GAAP operating income was $98.6 million in the second quarter of 2025, compared to $94.6 million in the first quarter.

    We exited the second quarter of 2025 with $1.53 billion in cash, cash equivalents and marketable securities and generated $26.6 million in cash flow from operations in the second quarter. Our capital expenditures were $8.2 million in the second quarter of 2025, compared to $14.6 million in the first quarter of 2025.

    In the second quarter of 2025, we repurchased 702,948 shares of our common stock at an average price of $42.67 per share for a total of approximately $30.0 million. We also spent approximately $3.0 million by withholding shares to cover taxes for employee stock vesting that reduced the diluted shares by 58,332 shares.

    During the second quarter of 2025, we shipped approximately 1.41 million microinverters from manufacturing facilities in the United States that we booked for 45X production tax credits. We continued to ship our IQ8HC™ Microinverters, IQ8P-3P™ Commercial Microinverters, and IQ® Battery 5Ps from these facilities, meeting domestic content requirements.

    We shipped a record 190.9 MWh of IQ Batteries in the second quarter of 2025, compared to 170.1 MWh in the first quarter. More than 11,700 installers worldwide are certified to install our IQ Batteries, compared to more than 10,900 installers worldwide in the first quarter of 2025. In addition, we have 210 MWh of batteries in our fleet currently enrolled in virtual power plant (VPP) programs globally.

    During the second quarter of 2025, we began shipping our fourth-generation Enphase Energy System, which includes the IQ® Battery 10C, IQ® Meter Collar, and IQ® Combiner 6C, to customers in the United States. The IQ Battery 10C is designed to be 30% more energy-dense, occupy 62% less wall space, and lower the cost of install compared to previous models. Together, these components simplify the entire backup installation process, enhance reliability, and provide greater value to homeowners. The IQ Meter Collar has now been approved by 29 U.S. utilities.

    We also ramped shipments of our IQ Battery with FlexPhase into more countries in Europe. This AC-coupled battery system supports both single-phase and three-phase homes, providing full backup capability and superior flexibility to meet diverse home energy needs.

    The IQ® EV Charger 2, our most advanced residential charger to date, is now shipping to 18 countries across Europe, Australia, and New Zealand. This smart charger is designed to work seamlessly with Enphase solar and battery systems or as a powerful standalone solution. We also started shipping our IQ® Balcony Solar Kit, a simple and efficient solution for harnessing solar energy from panels installed on apartment balconies, in Belgium and Germany during the second quarter of 2025.

    We continue to strengthen our digital platform and improve the customer experience. We are investing in several new enhancements for Solargraf, our all-in-one installer platform, including expanded third-party ownership (TPO) partner integrations, a custom tariff builder, enhanced dealership management features, and a simplified, AI-driven design experience – all aimed at making Solargraf even more powerful and intuitive.

    BUSINESS HIGHLIGHTS

    On July 17, 2025, Enphase Energy announced initial shipments of the IQ Battery 5P supplied from manufacturing facilities in the United States with higher domestic content than previous models.

    On July 10 and July 2, 2025, Enphase Energy announced that production shipments of its IQ EV Charger 2 have expanded Europe to now include Greece, Romania, Ireland, Poland, Australia, and New Zealand.

    On June 16, 2025, Enphase Energy announced the launch of the IQ Battery 5P with FlexPhase, for customers in more European countries, including Spain, Portugal, France, Sweden, Denmark, Belgium, and the Netherlands.

    On June 4, 2025, Enphase Energy announced that IQ8P-3P Commercial Microinverters made with domestic content were selected for significant commercial projects on a Florida school, an affordable housing complex in Rhode Island, and a community center in California.

    On May 19, 2025, Enphase Energy introduced IQ® Energy Management that integrates with Enphase solar and battery systems to enable smart management of variable electricity rates and select third-party electric vehicle (EV) chargers, heat pumps, and resistive electric water heaters in France.

    On May 12 and May 7, 2025, Enphase Energy announced the launch of the IQ Balcony Solar System in Belgium and Germany that empowers apartment dwellers and homeowners with limited roof space to generate their own clean energy from balconies, patios, and small outdoor areas.

    On May 8, 2025, Enphase Energy announced the availability of new software that allows homeowners with existing legacy IQ7™ Microinverter-based systems to seamlessly expand their solar capacity using IQ8™ Microinverters.

    On April 28, 2025, Enphase Energy announced production shipments of IQ8 Microinverters in Japan through a distribution agreement with ITOCHU Corporation, one of the largest trading companies in the country.

    THIRD QUARTER 2025 FINANCIAL OUTLOOK

    For the third quarter of 2025, Enphase Energy estimates both GAAP and non-GAAP financial results as follows:

    • Revenue to be within a range of $330.0 million to $370.0 million, which includes shipments of 190 to 210 MWh of IQ Batteries.
    • GAAP gross margin to be within a range of 41.0% to 44.0% with net IRA benefit, including approximately three to five percentage points of new tariff impact.
    • Non-GAAP gross margin to be within a range of 43.0% to 46.0% with net IRA benefit and 33.0% to 36.0% excluding net IRA benefit, including approximately three to five percentage points of new tariff impact. Non-GAAP gross margin excludes stock-based compensation expense and acquisition related amortization.
    • Net IRA benefit to be within a range of $34.0 million to $38.0 million based on estimated shipments of 1,200,000 units of U.S. manufactured microinverters.
    • GAAP operating expenses to be within a range of $130.0 million to $134.0 million.
    • Non-GAAP operating expenses to be within a range of $78.0 million to $82.0 million, excluding $52.0 million estimated for stock-based compensation expense, acquisition related amortization, restructuring and asset impairment charges.

    For 2025, Enphase expects a GAAP tax rate of 19-21% and a non-GAAP tax rate of 15-17%, including IRA benefits.

    Follow Enphase Online

    Use of non-GAAP Financial Measures

    Enphase Energy has presented certain non-GAAP financial measures in this press release. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either exclude or include amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (GAAP). Reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the accompanying tables to this press release. Non-GAAP financial measures presented by Enphase Energy include non-GAAP gross profit, gross margin, operating expenses, income from operations, net income, net income per share (basic and diluted), net IRA benefit, and free cash flow.

    These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Enphase Energy’s results of operations as determined in accordance with GAAP. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Enphase Energy uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. Enphase Energy believes that these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business.

    As presented in the “Reconciliation of Non-GAAP Financial Measures” tables below, each of the non-GAAP financial measures excludes one or more of the following items for purposes of calculating non-GAAP financial measures to facilitate an evaluation of Enphase Energy’s current operating performance and a comparison to its past operating performance:

    Stock-based compensation expense. Enphase Energy excludes stock-based compensation expense from its non-GAAP measures primarily because they are non-cash in nature. Moreover, the impact of this expense is significantly affected by Enphase Energy’s stock price at the time of an award over which management has limited to no control.

    Acquisition related amortization. This item represents amortization of acquired intangible assets, which is a non-cash expense. Acquisition related amortization of acquired intangible assets are not reflective of Enphase Energy’s ongoing financial performance.

    Restructuring and asset impairment charges. Enphase Energy excludes restructuring and asset impairment charges due to the nature of the expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of fees paid for cash-based severance costs, accelerated stock-based compensation expense and asset write-downs of property and equipment and acquired intangible assets, and other contract termination costs resulting from restructuring initiatives.

    Non-cash interest expense. This item consists primarily of amortization of debt issuance costs and accretion of debt discount because these expenses do not represent a cash outflow for Enphase Energy except in the period the financing was secured and such amortization expense is not reflective of Enphase Energy’s ongoing financial performance.

    Non-GAAP income tax adjustment. This item represents the amount adjusted to Enphase Energy’s GAAP tax provision or benefit to exclude the income tax effects of GAAP adjustments such as stock-based compensation, amortization of purchased intangibles, and other non-recurring items that are not reflective of Enphase Energy ongoing financial performance.

    Non-GAAP net income per share, diluted. Enphase Energy excludes the dilutive effect of in-the-money portion of convertible senior notes as they are covered by convertible note hedge transactions that reduce potential dilution to our common stock upon conversion of the Notes due 2025, Notes due 2026, and Notes due 2028, and includes the dilutive effect of employee’s stock-based awards and the dilutive effect of warrants. Enphase Energy believes these adjustments provide useful supplemental information to the ongoing financial performance.

    Net IRA benefit. This item represents the advanced manufacturing production tax credit (AMPTC) from the IRA for manufacturing microinverters in the United States, partially offset by the incremental manufacturing cost incurred in the United States relative to manufacturing in India. The AMPTC is accounted for by Enphase Energy as an income-based government grants that reduces cost of revenues in the condensed consolidated statements of operations.

    Free cash flow. This item represents net cash flows from operating activities less purchases of property and equipment.

    Conference Call Information

    Enphase Energy will host a conference call for analysts and investors to discuss its second quarter 2025 results and third quarter 2025 business outlook today at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time). The call is open to the public by dialing (833) 634-5018. A live webcast of the conference call will also be accessible from the “Investor Relations” section of Enphase Energy’s website at https://investor.enphase.com.

    Following the webcast, an archived version will be available on the website for approximately one year. In addition, an audio replay of the conference call will be available by calling (877) 344-7529; replay access code 6021998, beginning approximately one hour after the call.

    Forward-Looking Statements

    This press release contains forward-looking statements, including statements related to Enphase Energy’s expectations as to its third quarter of 2025 financial outlook, including revenue, shipments of IQ Batteries by MWh, gross margin with net IRA benefit and excluding net IRA benefit, estimated shipments of U.S. manufactured microinverters, operating expenses, and annualized effective tax rate with IRA benefit; its expectations regarding the expected net IRA benefit; future enhancements for Solargraf; and the capabilities, advantages, features, and performance of its technology and products. These forward-looking statements are based on Enphase Energy’s current expectations and inherently involve significant risks and uncertainties. Enphase Energy’s actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of certain risks and uncertainties including those risks described in more detail in its most recently filed Annual Report on Form 10-K, Quarterly Report on Form 10-Q, and other documents on file with the SEC from time to time and available on the SEC’s website at www.sec.gov. Enphase Energy undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations, except as required by law.

    A copy of this press release can be found on the investor relations page of Enphase Energy’s website at https://investor.enphase.com.

    About Enphase Energy, Inc.

    Enphase Energy, a global energy technology company based in Fremont, CA, is the world’s leading supplier of microinverter-based solar and battery systems that enable people to harness the sun to make, use, save, and sell their own power – and control it all with a smart mobile app. The company revolutionized the solar industry with its microinverter-based technology and builds all-in-one solar, battery, and software solutions. Enphase has shipped approximately 83.1 million microinverters, and more than 4.9 million Enphase-based systems have been deployed in over 160 countries. For more information, visit https://enphase.com/.

    © 2025 Enphase Energy, Inc. All rights reserved. Enphase Energy, Enphase, the “e” logo, IQ, IQ8, and certain other marks listed at https://enphase.com/trademark-usage-guidelines are trademarks or service marks of Enphase Energy, Inc. Other names are for informational purposes and may be trademarks of their respective owners.

    Contact:

    Zach Freedman
    Enphase Energy, Inc.
    Investor Relations
    ir@enphaseenergy.com

    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)
      Three Months Ended Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Net revenues $ 363,153     $ 356,084     $ 303,458     $ 719,237     $ 566,797  
    Cost of revenues   192,660       187,843       166,292       380,503       314,123  
    Gross profit   170,493       168,241       137,166       338,734       252,674  
    Operating expenses:                  
    Research and development   45,421       50,174       48,871       95,595       103,082  
    Sales and marketing   50,708       48,948       51,775       99,656       105,082  
    General and administrative   34,035       34,035       33,550       68,070       68,732  
    Restructuring and asset impairment charges   3,322       3,162       1,171       6,484       3,078  
    Total operating expenses   133,486       136,319       135,367       269,805       279,974  
    Income (loss) from operations   37,007       31,922       1,799       68,929       (27,300 )
    Other income, net                  
    Interest income   14,911       17,032       19,203       31,943       38,912  
    Interest expense   (815 )     (2,047 )     (2,220 )     (2,862 )     (4,416 )
    Other expense, net   (8,898 )     (14 )     (7,566 )     (8,912 )     (7,479 )
    Total other income, net   5,198       14,971       9,417       20,169       27,017  
    Income (loss) before income taxes   42,205       46,893       11,216       89,098       (283 )
    Income tax provision   (5,153 )     (17,163 )     (383 )     (22,316 )     (4,981 )
    Net income (loss) $ 37,052     $ 29,730     $ 10,833     $ 66,782     $ (5,264 )
    Net income (loss) per share:                  
    Basic $ 0.28     $ 0.23     $ 0.08     $ 0.51     $ (0.04 )
    Diluted $ 0.28     $ 0.22     $ 0.08     $ 0.50     $ (0.04 )
    Shares used in per share calculation:                  
    Basic   131,031       131,869       135,646       131,447       135,768  
    Diluted   135,219       136,208       136,123       135,719       135,768  
     
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
      June 30,
    2025    		   December 31,
    2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 370,536   $ 369,110
    Restricted cash   —     95,006
    Marketable securities   1,159,648     1,253,480
    Accounts receivable, net   223,218     223,749
    Inventory   173,016     165,004
    Prepaid expenses and other assets   362,523     220,735
    Total current assets   2,288,941     2,327,084
    Property and equipment, net   136,902     147,514
    Intangible assets, net   32,380     42,398
    Goodwill   214,890     211,571
    Other assets   193,426     205,542
    Deferred tax assets, net   312,250     315,567
    Total assets $ 3,178,789   $ 3,249,676
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 162,697   $ 90,032
    Accrued liabilities   206,537     196,887
    Deferred revenues, current   129,040     237,225
    Warranty obligations, current   33,136     34,656
    Debt, current   631,179     101,291
    Total current liabilities   1,162,589     660,091
    Long-term liabilities:      
    Deferred revenues, non-current   331,531     341,982
    Warranty obligations, non-current   172,950     158,233
    Other liabilities   59,542     55,265
    Debt, non-current   571,540     1,201,089
    Total liabilities   2,298,152     2,416,660
    Total stockholders’ equity   880,637     833,016
    Total liabilities and stockholders’ equity $ 3,178,789   $ 3,249,676
     
    ENPHASE ENERGY, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024

    Cash flows from operating activities:    		                  
    Net income (loss) $ 37,052     $ 29,730     $ 10,833     $ 66,782     $ (5,264 )
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:                  
    Depreciation and amortization   20,085       19,915       20,484       40,000       40,621  
    Net accretion of premium (discount) on marketable securities   (1,234 )     3,512       (1,030 )     2,278       1,795  
    Provision for doubtful accounts   130       62       1,897       192       1,767  
    Asset impairment   1,538       27       6,241       1,565       6,573  
    Non-cash interest expense   828       1,679       2,157       2,507       4,289  
    Change in fair value of debt securities   9,464       (323 )     1,931       9,141       989  
    Stock-based compensation   53,896       55,633       52,757       109,529       113,590  
    Deferred income taxes   403       8,560       (14,076 )     8,963       (22,368 )
    Changes in operating assets and liabilities:                  
    Accounts receivable   8,681       1,760       82,183       10,441       159,542  
    Inventory   (28,991 )     20,979       31,825       (8,012 )     37,527  
    Prepaid expenses and other assets   (64,261 )     (75,553 )     (42,810 )     (139,814 )     (53,707 )
    Accounts payable, accrued and other liabilities   37,212       54,232       (23,944 )     91,444       (90,228 )
    Warranty obligations   2,639       10,558       15       13,197       (11,908 )
    Deferred revenues   (50,813 )     (82,357 )     (1,401 )     (133,170 )     (6,955 )
      Net cash provided by operating activities   26,629       48,414       127,062       75,043       176,263  
    Cash flows from investing activities:                  
    Purchases of property and equipment   (8,259 )     (14,608 )     (9,636 )     (22,867 )     (17,007 )
    Investment in tax equity fund   (1,440 )     (6,904 )     —       (8,344 )     —  
    Purchases of marketable securities   (284,306 )     (200,826 )     (300,053 )     (485,132 )     (772,321 )
    Maturities and sale of marketable securities   242,820       335,398       282,063       578,218       779,436  
      Net cash provided by (used in) investing activities   (51,185 )     113,060       (27,626 )     61,875       (9,892 )
    Cash flows from financing activities:                  
    Settlement of Notes due 2025   —       (102,168 )     —       (102,168 )     (2 )
    Repurchase of common stock   (29,993 )     (99,964 )     (99,908 )     (129,957 )     (141,904 )
    Proceeds from issuance of common stock under employee equity plans   5,302       67       6,769       5,369       7,955  
    Payment of withholding taxes related to net share settlement of equity awards   (2,864 )     (12,110 )     (7,473 )     (14,974 )     (67,515 )
      Net cash used in financing activities   (27,555 )     (214,175 )     (100,612 )     (241,730 )     (201,466 )
      Effect of exchange rate changes on cash, cash equivalents and restricted cash   7,557       3,675       (374 )     11,232       (1,551 )
    Net decrease in cash, cash equivalents and restricted cash   (44,554 )     (49,026 )     (1,550 )     (93,580 )     (36,646 )
    Cash, cash equivalents and restricted cash — Beginning of period   415,090       464,116       253,652       464,116       288,748  
    Cash, cash equivalents and restricted cash — End of period $ 370,536     $ 415,090     $ 252,102     $ 370,536     $ 252,102  
     
    ENPHASE ENERGY, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share data and percentages)
    (Unaudited)
      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Gross profit (GAAP) $ 170,493     $ 168,241     $ 137,166     $ 338,734     $ 252,674  
      Stock-based compensation   4,311       4,239       3,730       8,550       7,912  
      Acquisition related amortization   1,590       1,580       1,890       3,170       3,781  
    Gross profit (Non-GAAP) $ 176,394     $ 174,060     $ 142,786     $ 350,454     $ 264,367  
                         
    Gross margin (GAAP)   46.9 %     47.2 %     45.2 %     47.1 %     44.6 %
      Stock-based compensation   1.3       1.2       1.3       1.2       1.3  
      Acquisition related amortization   0.4       0.5       0.6       0.4       0.7  
    Gross margin (Non-GAAP)   48.6 %     48.9 %     47.1 %     48.7 %     46.6 %
                         
    Operating expenses (GAAP) $ 133,486     $ 136,319     $ 135,367     $ 269,805     $ 279,974  
      Stock-based compensation(1)   (49,506 )     (50,885 )     (49,027 )     (100,391 )     (105,678 )
      Acquisition related amortization   (2,877 )     (2,849 )     (3,463 )     (5,726 )     (6,925 )
      Restructuring and asset impairment charges(1)   (3,322 )     (3,162 )     (1,171 )     (6,484 )     (3,078 )
    Operating expenses (Non-GAAP) $ 77,781     $ 79,423     $ 81,706     $ 157,204     $ 164,293  
                         
    (1)Includes stock-based compensation as follows:                  
      Research and development $ 20,481     $ 21,647     $ 20,210     $ 42,128     $ 44,760  
      Sales and marketing   16,657       16,396       16,784       33,053       34,962  
      General and administrative   12,368       12,842       12,033       25,210       25,956  
      Restructuring and asset impairment charges   79       509       —       588       —  
      Total $ 49,585     $ 51,394     $ 49,027     $ 100,979     $ 105,678  
                         
    Income (loss) from operations (GAAP) $ 37,007     $ 31,922     $ 1,799     $ 68,929     $ (27,300 )
      Stock-based compensation   53,817       55,124       52,757       108,941       113,590  
      Acquisition related amortization   4,467       4,429       5,353       8,896       10,706  
      Restructuring and asset impairment charges   3,322       3,162       1,171       6,484       3,078  
    Income from operations (Non-GAAP) $ 98,613     $ 94,637     $ 61,080     $ 193,250     $ 100,074  
                         
    Net income (loss) (GAAP) $ 37,052     $ 29,730     $ 10,833     $ 66,782     $ (5,264 )
      Stock-based compensation   53,817       55,124       52,757       108,941       113,590  
      Acquisition related amortization   4,467       4,429       5,353       8,896       10,706  
      Restructuring and asset impairment charges   3,322       3,162       1,171       6,484       3,078  
      Non-cash interest expense   829       1,678       2,157       2,507       4,289  
      Non-GAAP income tax adjustment   (9,618 )     (4,880 )     (13,447 )     (14,498 )     (19,619 )
    Net income (Non-GAAP) $ 89,869     $ 89,243     $ 58,824     $ 179,112     $ 106,780  
                         
    Net income (loss) per share, basic (GAAP) $ 0.28     $ 0.23     $ 0.08     $ 0.51     $ (0.04 )
      Stock-based compensation   0.41       0.42       0.39       0.80       0.84  
      Acquisition related amortization   0.03       0.04       0.04       0.08       0.08  
      Restructuring and asset impairment charges   0.03       0.02       0.01       0.06       0.02  
      Non-cash interest expense   0.01       0.01       0.02       0.02       0.03  
      Non-GAAP income tax adjustment   (0.07 )     (0.04 )     (0.11 )     (0.11 )     (0.14 )
    Net income per share, basic (Non-GAAP) $ 0.69     $ 0.68     $ 0.43     $ 1.36     $ 0.79  
                         
      Shares used in basic per share calculation GAAP and Non-GAAP   131,031       131,869       135,646       131,447       135,768  
                         
    Net income (loss) per share, diluted (GAAP) $ 0.28     $ 0.22     $ 0.08     $ 0.50     $ (0.04 )
      Stock-based compensation   0.41       0.42       0.38       0.83       0.84  
      Acquisition related amortization   0.03       0.04       0.04       0.07       0.08  
      Restructuring and asset impairment charges   0.03       0.03       0.01       0.05       0.02  
      Non-cash interest expense   0.01       0.01       0.02       0.02       0.03  
      Non-GAAP income tax adjustment   (0.07 )     (0.04 )     (0.10 )     (0.11 )     (0.15 )
    Net income per share, diluted (Non-GAAP) $ 0.69     $ 0.68     $ 0.43     $ 1.36     $ 0.78  
                         
      Shares used in diluted per share calculation GAAP   135,219       136,208       136,123       135,719       135,768  
      Shares used in diluted per share calculation Non-GAAP   131,144       132,133       136,123       131,644       136,439  
                         
    Income-based government grants (GAAP) $ 61,040     $ 53,631     $ 24,329     $ 114,671     $ 42,946  
      Incremental cost for manufacturing in U.S.   (19,528 )     (15,773 )     (5,950 )     (35,301 )     (10,832 )
    Net IRA benefit (Non-GAAP) $ 41,512     $ 37,858     $ 18,379     $ 79,370     $ 32,114  
                         
    Net cash provided by operating activities (GAAP) $ 26,629     $ 48,414     $ 127,062     $ 75,043     $ 176,263  
      Purchases of property and equipment   (8,259 )     (14,608 )     (9,636 )     (22,867 )     (17,007 )
    Free cash flow (Non-GAAP) $ 18,370     $ 33,806     $ 117,426     $ 52,176     $ 159,256  
     

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

    The MIL Network –

  • MIL-OSI United Kingdom: British Ambassador pays courtesy visit to Guatemalan Minister of Education

    Source: United Kingdom – Executive Government & Departments

    World news story

    British Ambassador pays courtesy visit to Guatemalan Minister of Education

    Ambassador Juliana Correa and Minister Anabella Giracca met to explore ways to further deepen UK-Guatemala educational ties.

    The meeting highlighted the potential of the Global Partnership for Education (GPE)—the world’s largest fund dedicated to transforming education in lower-income countries, with the UK as its leading donor. Discussions focused on leveraging this platform to support Guatemala’s education priorities. 

    Key areas of potential collaboration included enhancing early English language learning and expanding Guatemalan participation in the UK’s prestigious Chevening Scholarship programme at the postgraduate level. 

    Ambassador Correa also expressed the UK’s interest in supporting national initiatives such as the “Scholarships for Our Future” programme, recognizing its transformative impact on the lives of Guatemalan youth. 

    In closing, the Ambassador commended Minister Giracca’s efforts to expand educational access, improve learning outcomes, and promote equity and inclusion across the country’s education system.

    Updates to this page

    Published 22 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: British Ambassador pays courtesy visit to Guatemalan Minister of Education

    Source: United Kingdom – Executive Government & Departments

    World news story

    British Ambassador pays courtesy visit to Guatemalan Minister of Education

    Ambassador Juliana Correa and Minister Anabella Giracca met to explore ways to further deepen UK-Guatemala educational ties.

    The meeting highlighted the potential of the Global Partnership for Education (GPE)—the world’s largest fund dedicated to transforming education in lower-income countries, with the UK as its leading donor. Discussions focused on leveraging this platform to support Guatemala’s education priorities. 

    Key areas of potential collaboration included enhancing early English language learning and expanding Guatemalan participation in the UK’s prestigious Chevening Scholarship programme at the postgraduate level. 

    Ambassador Correa also expressed the UK’s interest in supporting national initiatives such as the “Scholarships for Our Future” programme, recognizing its transformative impact on the lives of Guatemalan youth. 

    In closing, the Ambassador commended Minister Giracca’s efforts to expand educational access, improve learning outcomes, and promote equity and inclusion across the country’s education system.

    Updates to this page

    Published 22 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI USA: Five Defendants Sentenced in Connection with Operating One of the Largest Illegal Television Show Streaming Services in the United States

    Source: US State of North Dakota

    Yesterday, the final judgments were issued for five Nevada men, including a citizen of Germany, who were sentenced on May 29 and 30 to terms of up to 84 months in prison for running Jetflicks, one of the largest illegal television streaming services in the United States.

    “The defendants operated Jetflicks, an illegal paid streaming service that made available more television episodes than any licensed streaming service on the market,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “This scheme generated millions of dollars in criminal profits, and hurt thousands of U.S. companies and individuals who owned the copyrights to these shows but never received a penny in compensation from Jetflicks. The sentences issued in this case demonstrate the Criminal Division’s commitment to protect American creativity and to ensure that large-scale infringers are brought to justice and punished for their crimes.”

    “Digital crimes are not victimless crimes,” said U.S. Attorney Sigal Chattah for the District of Nevada. “The copyright owners lost millions of dollars as a result of the illegal paid streaming service. These sentences underscore our joint commitment with the Computer Crime and Intellectual Property Section and FBI to deter and disrupt intellectual property crime via thorough investigation and prosecution of those who violate federal intellectual property laws.”

    “By building and running one of the largest unauthorized streaming services in the U.S., these individuals not only stole from content creators and legitimate streaming services, they undermined the integrity of our economy and the rule of law,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “These sentencings are a reminder that illegal actions have consequences. The FBI and our partners are unwavering in our commitment to protect intellectual property rights and hold criminals accountable.”

    After a 14-day trial that ended in June 2024, a federal jury in the District of Nevada convicted Kristopher Lee Dallmann, 42; Peter H. Huber, 67; Jared Edward Jaurequi, also known as Jared Edwards, 44; Felipe Garcia, 43; and Douglas M. Courson, 65, all of Las Vegas, of conspiracy to commit copyright infringement. The jury also convicted Dallmann of criminal copyright infringement by distribution, criminal copyright infringement by public performance, and money laundering. Subsequently, the court sentenced Dallmann to 84 months in prison; Huber to 18 months in prison; Jaurequi to time served (almost 5 months in prison), 180 days of home confinement, and 500 hours of community service; Garcia to three years probation with 49 days in prison and 1000 hours of community service; and Courson to three years probation with 48 days in prison.

    According to court documents and evidence presented at trial, the defendants ran a site called Jetflicks, an online subscription-based service headquartered in Las Vegas, that permitted users to stream and at times download copyrighted television programs without the permission of the relevant copyright owners. At one point, Jetflicks claimed to have 183,285 different television episodes, significantly more than Netflix, Hulu, Vudu, Amazon Prime, or any other licensed streaming service. This was the largest internet piracy case — as measured by the estimated total infringement amount and total number of infringements — ever to go to trial as well as the first illegal streaming case ever to go to trial. The defendants’ conduct harmed every major copyright owner of a television program in the United States. Copyright owners lost millions of dollars from the operation.

    Evidence presented at trial showed that the defendants used automated software and computer scripts that ran constantly to scour sites around the world hosting pirated content. The software and scripts would download, process, and store illegal content, and then make it immediately available on servers in the United States and Canada to tens of thousands of paid subscribers located throughout the United States for streaming and/or downloading. The defendants often delivered episodes to subscribers the day after the shows originally aired on television. The service was not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms, and software.

    Each defendant performed at least one and often multiple roles at Jetflicks including management, computer programming and coding, design of the website, applications, and customer interface, technical assistance, content acquisition, subscriptions and revenue, and customer support.

    Dallmann reaped millions of dollars in profit from the operation. The government conservatively estimated the value of the copyright infringement in the case at $37.5 million. This included the approximate retail value of the defendants’ reproduction of infringing works to create the Jetflicks inventory as well as the approximate retail value of the streams of pirated television episodes that the defendants provided to subscribers.

    The five defendants sentenced were among eight defendants originally indicted in the Eastern District of Virginia in connection with operating Jetflicks. In addition to the defendants just sentenced in Nevada, defendant Darryl Polo previously pleaded guilty in the Eastern District of Virginia to four counts of criminal copyright infringement and one count of money laundering for his involvement with Jetflicks as well as an equally large illegal streaming site he ran called iStreamItAll. Similarly, defendant Luis Villarino also previously pleaded guilty in the Eastern District of Virginia to conspiracy to commit criminal copyright infringement. In May 2021, a judge in the U.S. District Court for the District of Virginia sentenced Polo and Villarino to, respectively, 57 months in prison and 12 months and a day in prison.

    After the case was transferred to the District of Nevada for trial, defendant Yoany Vaillant was tried separately from the other five remaining defendants. In November 2024, after an eight-day trial, a federal jury convicted Vaillant of conspiracy to commit criminal copyright infringement. Vaillant is scheduled to be sentenced on Sept. 4.

    The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office. 

    Senior Counsel Matthew A. Lamberti, Trial Attorney Michael Christin, and Acting Deputy Chief Christopher S. Merriam of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jessica Oliva and Edward G. Veronda for the District of Nevada are prosecuting the case. The CCIPS Cybercrime Lab, the Justice Department’s Office of International Affairs, and the Royal Canadian Mounted Police in Canada provided significant assistance.

    MIL OSI USA News –

  • MIL-OSI Security: Five Defendants Sentenced in Connection with Operating One of the Largest Illegal Television Show Streaming Services in the United States

    Source: United States Attorneys General

    Yesterday, the final judgments were issued for five Nevada men, including a citizen of Germany, who were sentenced on May 29 and 30 to terms of up to 84 months in prison for running Jetflicks, one of the largest illegal television streaming services in the United States.

    “The defendants operated Jetflicks, an illegal paid streaming service that made available more television episodes than any licensed streaming service on the market,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “This scheme generated millions of dollars in criminal profits, and hurt thousands of U.S. companies and individuals who owned the copyrights to these shows but never received a penny in compensation from Jetflicks. The sentences issued in this case demonstrate the Criminal Division’s commitment to protect American creativity and to ensure that large-scale infringers are brought to justice and punished for their crimes.”

    “Digital crimes are not victimless crimes,” said U.S. Attorney Sigal Chattah for the District of Nevada. “The copyright owners lost millions of dollars as a result of the illegal paid streaming service. These sentences underscore our joint commitment with the Computer Crime and Intellectual Property Section and FBI to deter and disrupt intellectual property crime via thorough investigation and prosecution of those who violate federal intellectual property laws.”

    “By building and running one of the largest unauthorized streaming services in the U.S., these individuals not only stole from content creators and legitimate streaming services, they undermined the integrity of our economy and the rule of law,” said Assistant Director Jose A. Perez of the FBI Criminal Investigative Division. “These sentencings are a reminder that illegal actions have consequences. The FBI and our partners are unwavering in our commitment to protect intellectual property rights and hold criminals accountable.”

    After a 14-day trial that ended in June 2024, a federal jury in the District of Nevada convicted Kristopher Lee Dallmann, 42; Peter H. Huber, 67; Jared Edward Jaurequi, also known as Jared Edwards, 44; Felipe Garcia, 43; and Douglas M. Courson, 65, all of Las Vegas, of conspiracy to commit copyright infringement. The jury also convicted Dallmann of criminal copyright infringement by distribution, criminal copyright infringement by public performance, and money laundering. Subsequently, the court sentenced Dallmann to 84 months in prison; Huber to 18 months in prison; Jaurequi to time served (almost 5 months in prison), 180 days of home confinement, and 500 hours of community service; Garcia to three years probation with 49 days in prison and 1000 hours of community service; and Courson to three years probation with 48 days in prison.

    According to court documents and evidence presented at trial, the defendants ran a site called Jetflicks, an online subscription-based service headquartered in Las Vegas, that permitted users to stream and at times download copyrighted television programs without the permission of the relevant copyright owners. At one point, Jetflicks claimed to have 183,285 different television episodes, significantly more than Netflix, Hulu, Vudu, Amazon Prime, or any other licensed streaming service. This was the largest internet piracy case — as measured by the estimated total infringement amount and total number of infringements — ever to go to trial as well as the first illegal streaming case ever to go to trial. The defendants’ conduct harmed every major copyright owner of a television program in the United States. Copyright owners lost millions of dollars from the operation.

    Evidence presented at trial showed that the defendants used automated software and computer scripts that ran constantly to scour sites around the world hosting pirated content. The software and scripts would download, process, and store illegal content, and then make it immediately available on servers in the United States and Canada to tens of thousands of paid subscribers located throughout the United States for streaming and/or downloading. The defendants often delivered episodes to subscribers the day after the shows originally aired on television. The service was not only available to subscribers over the internet but specifically designed to work on many different types of devices, platforms, and software.

    Each defendant performed at least one and often multiple roles at Jetflicks including management, computer programming and coding, design of the website, applications, and customer interface, technical assistance, content acquisition, subscriptions and revenue, and customer support.

    Dallmann reaped millions of dollars in profit from the operation. The government conservatively estimated the value of the copyright infringement in the case at $37.5 million. This included the approximate retail value of the defendants’ reproduction of infringing works to create the Jetflicks inventory as well as the approximate retail value of the streams of pirated television episodes that the defendants provided to subscribers.

    The five defendants sentenced were among eight defendants originally indicted in the Eastern District of Virginia in connection with operating Jetflicks. In addition to the defendants just sentenced in Nevada, defendant Darryl Polo previously pleaded guilty in the Eastern District of Virginia to four counts of criminal copyright infringement and one count of money laundering for his involvement with Jetflicks as well as an equally large illegal streaming site he ran called iStreamItAll. Similarly, defendant Luis Villarino also previously pleaded guilty in the Eastern District of Virginia to conspiracy to commit criminal copyright infringement. In May 2021, a judge in the U.S. District Court for the District of Virginia sentenced Polo and Villarino to, respectively, 57 months in prison and 12 months and a day in prison.

    After the case was transferred to the District of Nevada for trial, defendant Yoany Vaillant was tried separately from the other five remaining defendants. In November 2024, after an eight-day trial, a federal jury convicted Vaillant of conspiracy to commit criminal copyright infringement. Vaillant is scheduled to be sentenced on Sept. 4.

    The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office. 

    Senior Counsel Matthew A. Lamberti, Trial Attorney Michael Christin, and Acting Deputy Chief Christopher S. Merriam of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorneys Jessica Oliva and Edward G. Veronda for the District of Nevada are prosecuting the case. The CCIPS Cybercrime Lab, the Justice Department’s Office of International Affairs, and the Royal Canadian Mounted Police in Canada provided significant assistance.

    MIL Security OSI –