housing – Page 41 – NewzIntel.com

MIL-Evening Report: From grasslands to killing fields: why trees are bad news for one of Australia’s most stunning birds

Source: The Conversation (Au and NZ) – By Gabriel Crowley, Adjunct Associate Professor in Geography, University of Adelaide

JJ Harrison/Wikimedia, CC BY

Picture this. A small, rainbow-coloured chick emerges from its nest for the first time. It stretches its wings and prepares to take flight. But before the fledgling’s life in the wild has begun, a sharp-beaked predator swoops in, leaving nothing but a tiny skeleton.

This is the sad scenario playing out on Cape York Peninsula, new analysis shows. There, trees are invading the open, grassy habitat of the endangered golden-shouldered parrot (Psephotellus chrysopterygius). The trees give cover to predators – meaning they can lie in wait, before striking the adult birds and their young.

The golden-shouldered parrot is endangered, now found in just 5% of its original range. The new findings suggest more work is needed to restore grassland habitat to its former open state, to ensure the parrots’ survival.

A vanishing species

The initial decline of the golden-shouldered parrot was likely caused by a loss of food plants and degradation of the termite mounds in which it nests. Birds that remained in two small areas in central Cape York Peninsula faced other issues.

In the 1990s, researchers began studying the parrot on Artemis Station, to better understand why numbers were declining. A new suspect was identified: native woody plants, such as the broad-leaved tea-tree (Melaleuca viridiflora), which had crept into the birds’ grassy habitat.

The change was largely due to overgrazing, which reduced fuel loads and led to fewer fires. This allowed the woodland trees to overtake the grasslands. But exactly how were these trees affecting the survival of the golden-shouldered parrot? New research by my colleagues and I set out to answer this question.

The above image shows the three phases of woodland invading the parrots’ habitat. Left, a few scattered trees establish around the nesting mound. Centre, tea trees emerge from the grass layer. Right, dense thickets of tea trees shade out the termite mounds.
Gabriel Crowley

Counting eggs, nest by nest

We monitored 108 termite-mound nests over three years, tracking the success of 555 eggs. We visited each nest every few days to record whether chicks successfully fledged (grew strong enough to leave the nest) or died.

We also counted the number of trees around the nests, and recorded signs of interference from predators.

So what did we find? The proportion of nests that produced a fledgling from every egg decreased in proportion to the number of trees around the nest. The percentage of eggs, chicks and adults that were killed or disappeared from a nest also increased in line with tree numbers.

That’s because the trees bring different predators – and places for them to hide.

We suspected reptiles were the main predators. This was due to scratches on the nests and disappearance of eggs without any other signs of damage. While the exact species of reptile predator was hard to pinpoint, we know tree snake numbers increase as woodlands encroach.

However, of all predators, we found butcherbird numbers increased most strongly as trees crept in. Butcherbirds tear prey apart with their strong, hooked beaks. Trees close to the nests give butcherbirds cover, enabling them to wait for adults or their young to emerge.

Tragically, we found skulls of chicks pierced by the butcherbirds’ sharp bills. In one case, the shredded flesh of a bird was wedged atop a termite mound.

Butcherbirds have strong, hooked beaks, which they use to tear apart prey.
Conservation Partners

Parrots successfully fledged from just over half of the 555 eggs we monitored.

In the most dense woodlands, the number of birds that successfully fledged was just one-third of the rate needed to maintain the golden-shouldered parrot’s population.

Adult birds were lost from one-third of the nests we studied. This is especially troubling. Modelling from similar tropical birds shows this rate of adult deaths can push a species towards extinction.

Unusually, golden-shouldered parrots nest in termite mounds.
Peter Valentine

Restoring the parrots’ grassland home

The world’s grassland habitats are under threat. This has devastating consequences for species that depend on them – including the golden-shouldered parrot.

Our findings show Cape York’s grasslands should be maintained and restored to ensure the survival of the golden-shouldered parrot. Much work is needed to ensure the species avoids the fate of its closest relative, the paradise parrot, which is presumed extinct.

Work is already underway. Golden-shouldered parrot habitat in national parks and on Indigenous-owned land has been destocked, and more traditional Indigenous fire regimes reinstated. This will help maintain open grasslands and reverse early woodland encroachment. Such work is also being undertaken at the study site on Artemis Station.

Where woody plant invasion is more advanced, more intensive methods have been deployed. At the study site, this includes using chainsaws and brush-cutters to clear trees, before the stump is poisoned.

Where woody vegetation is well established, trees must be felled to help restore grassland habitat.
Conservation Partners

Other measures include installing electric fences to keep out reptiles, reseeding grasslands with food plants and providing feeding stations in seasons when food is scarce.

Land managers across Cape York have also been provided guidelines for managing woodland encroachment.

These efforts must be sustained in the long-term, to ensure the golden-shouldered parrot can return to its former range.

Gabriel Crowley undertook the work cited in this article with Susan Shephard (Artemis Station), Stephen Garnett (Charles Darwin University and Conservation Partners) and Stephen Murphy (Conservation Partners). Funding was provided by the Queensland and federal governments, Gulf Savannah NRM and WWF Australia. Gabriel has provided advice on golden-shouldered parrots and their habitat to the Olkola Aboriginal Corporation, Conservation Partners and Bush Heritage Australia as a volunteer and/or consultant. She is a volunteer for Helen Haines MP (Member for Indi).

– ref. From grasslands to killing fields: why trees are bad news for one of Australia’s most stunning birds – https://theconversation.com/from-grasslands-to-killing-fields-why-trees-are-bad-news-for-one-of-australias-most-stunning-birds-259898

MIL OSI Analysis – EveningReport.nz –

July 24, 2025

MIL-OSI USA: WHAT THEY ARE SAYING: U.S.-Indonesia Trade Deal Is Another America First Win

US Senate News:

Source: US Whitehouse
President Donald J. Trump’s landmark reciprocal trade agreement with Indonesia is another critical step forward in the Trump Administration’s relentless pursuit of trade policy that finally puts America First. The deal eliminates ~99% of tariff barriers for a full range of U.S. industrial, food, and agricultural exports, unlocks new market access, and breaks down non-tariff barriers — and represents the latest victory for American workers, farmers, and manufacturers.
The trade deal was immediately hailed across American industry:
American Iron and Steel Institute President and CEO Kevin Dempsey: “AISI is encouraged by today’s announcement of a framework for negotiating an agreement with Indonesia to remove Indonesia’s existing export restrictions on critical minerals, such as nickel, which is critical to stainless steel production. Indonesia’s existing export ban and other restrictions on nickel, together with its close ties to Chinese steel producers that have invested in that country as a result of China’s Belt and Road Initiative, have resulted in significant distortions in the global market for nickel to the detriment of steel producers in the United States. We look forward to working with USTR to address the Indonesian nickel export restrictions and other trade-distorting policies as these negotiations move forward.”
Association for Competitive Technology President Morgan Reed: “This is another win for U.S. small tech developers. For years the App Association and our members have raised concerns with the U.S. Trade Representative regarding Indonesia’s inclusion of software and other digital goods in their tariff system, among several other digital trade barriers. We thank USTR and the Administration for their tireless work on behalf of small tech companies and look forward to our continued work strengthening American competitiveness globally. Further, we commend the Indonesian government for joining the United States in committing to support a World Trade Organization agreement that ensures countries will not apply taxes or customs duties to digital service transmissions.”
Business Software Alliance SVP Aaron Cooper: “The US-Indonesia trade agreement is a breakthrough in digital trade policy. The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology. This agreement sends a strong signal to the global economy and many industries that rely on open and secure digital trade, and reflects key reforms that have been core BSA priorities for nearly a decade.”
American Soybean Association President Caleb Ragland: “We appreciate President Trump and his administration’s efforts in maintaining market access for U.S. soybeans into Indonesia, and the commitment from USTR to address non-tariff barriers in that market. We look forward to future deals like this that reduce tariffs and ensure continued and increased market access for U.S. agriculture.”
Computer and Communications Industry Association VP Jonathan McHale: “The announced Framework agreement for addressing Indonesia’s many trade barriers, including tariff regimes targeting digital products, restrictions on cross-border data flows, and local content requirements for communications devices, is an important and encouraging step in reforming what has long been one of the most challenging markets for U.S. suppliers. We look forward to a binding agreement addressing not only these restrictions, but a path to resolving all outstanding barriers that remain in this important market.”
Consortium for Common Food Names Executive Director Jaime Castaneda: “The prospect of having Indonesia commit to a more transparent and balanced approach to GIs would be a meaningful advance in the global fight to preserve the use of common food names like parmesan and feta. We commend the U.S. negotiators for prioritizing this issue, particularly at a time when European Union is attempting to expand their GI abuse in growing dairy markets and shut out the United States. We will work diligently with the U.S. government to hold Indonesia accountable to their commitments on common names.”
International Dairy Foods Association SVP Becky Rasdall Vargas: “We could not be more enthusiastic and energized about today’s announcement for improved access for U.S. dairy exports to Indonesia. Indonesia is an important trading partner in a region that is critical to U.S. dairy exports, and growing. Today’s announcement represents the largest improvement of access U.S. dairy exporters have seen in the region in over a decade and will be a timely step towards keeping U.S. dairy exporters globally competitive. We express our sincere appreciation to the Administration and the negotiators for achieving this positive outcome for U.S. dairy.”
National Grain and Feed Association President and CEO Mike Seyfert: “America’s grain and feed industry appreciates President Trump and his negotiating team for advancing a bold and strategic trade framework with Indonesia that delivers meaningful wins for U.S agriculture. This agreement opens the door to billions in new exports – including soybeans, wheat, and other key commodities – while eliminating tariffs and cutting red tape that have long held back U.S. producers. We look forward to swift finalization and implementation of this deal and stand ready to work with the Trump Administration open new markets and tear down unfair trade barriers.”
National Milk Producers Federation President and CEO Gregg Doud: “This looks like it will be a significant win for U.S. dairy. We commend the Trump Administration for securing an agreement that should deliver real benefits for our dairy farmers. We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the Administration to ensure Indonesia upholds its end of the bargain.”
National Oilseed Processors Association President and CEO Devin Mogler: “We commend the Trump Administration for prioritizing U.S. farmers in this trade deal with Indonesia, and specifically for including soybean meal purchases. NOPA members have invested over $6 billion to expand U.S. soybean crushing capacity by over 25% since 2023 levels to meet growing demand for food, feed and biofuel use, adding value to the crops our great U.S. farmers produce. Ensuring we have access to growing soybean meal markets like Indonesia ensures our farmers remain competitive relative to global competitors.”
Renewable Fuels Association President and CEO Geoff Cooper: “We’re grateful to President Trump and his team for ensuring U.S. agriculture and renewable fuels are prominently included in these framework agreements. These deals will ultimately help open important Asian markets and allow greater access for American farm products, renewable fuels, and co-products like distillers grains. This administration clearly understands the leading role American farmers and renewable fuel producers can play when it comes to feeding and fueling the world, and we salute President Trump’s efforts to secure fair and reciprocal agreements around the globe. Breaking down barriers to fair trade strengthens our rural economy and the United States as a whole.”
The Meat Institute: “The Meat Institute’s members celebrate @realdonaldtrump and @USTradeRep’s work on a deal with Indonesia opening up this important market for meat & poultry. We look forward to seeing the details of the deal & to continued efforts to remove remaining barriers to trade in other SE Asian markets.”
U.S. Dairy Export Council President and CEO Krysta Harden: “Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly. While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”
U.S. Grains Council President and CEO Ryan LeGrand: “The U.S. Grains Council commends the Trump Administration on its historic trade deal with Indonesia, that will enhance trade for both countries and places a zero tariff on the products the Council represents. In the 2023-24 marketing year, Indonesia was the fourth largest importer for U.S. distillers dried grains with solubles at 1,024,000 metric tons. That translates into a nearly $299 million market, and we hope the deal announced today will not only help see those numbers increase but open doors wider to the full range of products we have to offer.”
U.S. Meat Export Federation President and CEO Dan Halstrom: “USMEF thanks USTR for its tireless efforts to negotiate a meaningful agreement with Indonesia, tackling many challenging issues. Indonesia is a market with incredible potential, in which the opportunity for U.S. beef is estimated at $250 million annually. But today, exports are minimal due to numerous trade barriers. We are encouraged to see that the highlights detailed in the U.S.-Indonesia joint statement include resolving key issues such as import licensing, the commodity balance policy, and Indonesia’s onerous plant-by-plant approval process. For both U.S. beef and U.S. pork, these longstanding restrictions have limited exports to Indonesia. Indonesian importers and consumers are demanding U.S. red meat and we look forward to the swift conclusion of these negotiations and expanded export opportunities.”
U.S. Wheat Associates President and CEO Mike Spier: “We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry. We thank the Trump Administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their continued work on behalf of American wheat farmers.”

MIL OSI USA News –

July 24, 2025

MIL-OSI Security: FEDERAL JURY CONVICTS PANAMA CITY FELON OF DRUG TRAFFICKING AND ILLEGAL FIREARMS CHARGES

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

PENSACOLA, FLORIDA – Jarrel Daniel Rivaz, 35, of Panama City, was found guilty by a federal jury of possession with intent to distribute 500 grams or more of cocaine and marijuana, possession of a firearm in furtherance of drug trafficking, and possession of a firearm and ammunition by a convicted felon on Tuesday morning, July 22, 2025. The verdict was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

U.S. Attorney Heekin said: “Fulfilling the promise of President Donald J. Trump and Attorney General Pam Bondi to Take Back America from violent criminals and drug traffickers requires close collaboration between our federal, state, and local law enforcement partners like we saw in this case. I am deeply appreciative of the outstanding work of the Bay County Sheriff’s Office and the ATF to get this criminal off our streets, and my office will continue to aggressively prosecute these cases to keep our communities safe from the predations of drug traffickers like this defendant.”

Evidence admitted at trial established that on December 21, 2023, during a search warrant executed at the defendant’s house in Panama City, law enforcement found and seized over 900 grams of cocaine, a large quantity of marijuana, two firearms, and ammunition. One of the firearms was found loaded in a locked shed in the same bag as some of the marijuana. Rivaz had previously been convicted of a felony drug trafficking offense in New York under the name “Gerald Walker.”

Sentencing is scheduled for October 16, 2025, at 10 a.m. in Pensacola before United States District Judge T. Kent Wetherell II. Rivaz faces a minimum mandatory term of 10 years’ imprisonment and a maximum possible sentence of life.

The verdict was the result of a joint investigation by the Bay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Ward Narramore and Alicia Forbes.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

MIL Security OSI –

July 24, 2025

MIL-OSI: Eagle Bancorp, Inc. Announces Second Quarter 2025 Results and Cash Dividend

Source: GlobeNewswire (MIL-OSI)

BETHESDA, Md., July 23, 2025 (GLOBE NEWSWIRE) — Eagle Bancorp, Inc. (“Eagle”, the “Company”) (NASDAQ: EGBN), the Bethesda-based holding company for EagleBank, one of the largest community banks in the Washington D.C. area, reported its unaudited results for the second quarter ended June 30, 2025.

Eagle reported a net loss of $69.8 million or $2.30 per share for the second quarter 2025, compared to net income of $1.7 million or $0.06 per diluted share during the first quarter. The $71.5 million decrease in net income from the prior quarter is primarily due to a $111.9 million increase in provision expense. In the quarter, net interest income increased $2.1 million, noninterest income decreased $1.8 million, and noninterest expenses decreased $2.0 million.

Pre-provision net revenue (“PPNR”)¹ in the second quarter was $30.7 million compared to $28.4 million for the prior quarter reflecting expansion of the net interest margin.

“Our core profitability improvement this quarter, evident in the growth of pre-provision net revenue, expansion of core deposits, and reduced reliance on wholesale and brokered funding, reflects our disciplined execution of our strategic plan,” said Susan G. Riel, Chair, President, and Chief Executive Officer of the Company. “We continue to work on building a stronger balance sheet that will contribute to long-term, sustainable performance.”

Our second quarter reflects the execution of our previously communicated strategy to resolve challenged loans and address related valuation pressures in the office portfolio.

“This quarter’s credit costs reflect decisive actions we are taking to address risk in our loan portfolio. While the charge is significant, it is aligned with our ongoing strategy and reflects our judgement to remediate credit exposures thoughtfully and deliberately. We view this quarter’s loss as a necessary and measured outcome of our risk remediation strategy. The resulting impact of these decisions is difficult, yet represents necessary steps in our objective to drive long-term value creation for shareholders,” added Ms. Riel.

Eric R. Newell, Chief Financial Officer of the Company said, “This quarter, the credit loss reserve coverage rose to 2.38% of total loans, up 75 basis points from last quarter. This reserve build reflects our ongoing and continued proactive approach to address credit risk in our loan portfolio and our expectation that remediation activity will continue over the coming quarters. Our capital position remains strong, with common equity tier one capital at 14.0% and our tangible common equity¹ ratio exceeding 10%. We will continue to evaluate capital allocation decisions, in alignment with our objectives of maintaining long-term franchise value.”

Additionally, the Company is announcing today a cash dividend in the amount of $0.165 per share. The cash dividend will be payable on August 29, 2025 to shareholders of record on August 8, 2025.

Second Quarter of 2025 Key Elements

The Company announces today the declaration of a common stock dividend of $0.165 per share.
The ACL as a percentage of total loans was 2.38% at quarter-end; up from 1.63% at the prior quarter-end. Performing office coverage² was 11.54% at quarter-end; as compared to 5.78% at the prior quarter-end.
Nonperforming assets increased by $26.0 million to $228.9 million as of June 30, 2025, representing 2.16% of total assets, compared to 1.79% as of March 31, 2025. During the quarter, nonperforming loan inflows totaled $222.8 million, primarily driven by office and land properties, including a $33.6 million data center loan backed by office collateral and a $9.1 million life sciences office loan. Reductions of $182.8 million reflected charge-offs, loans moved to held for sale, and restructuring activity.
Substandard and special mention loans totaled $875.4 million at June 30, 2025, compared to $774.9 million in the prior quarter.
Annualized quarterly net charge-offs for the second quarter were 4.22% compared to 0.57% for the first quarter of 2025.
The net interest margin (“NIM”) increased to 2.37% for the second quarter of 2025, compared to 2.28% for the prior quarter, primarily driven by the paydown of average borrowings and reduced funding costs on money market accounts and other borrowings.
At quarter-end, the common equity ratio, tangible common equity ratio¹, and common equity tier 1 capital (to risk-weighted assets) ratio were 11.18%, 11.18%, and 14.01%, respectively.
Total estimated insured deposits remained stable at quarter-end to $6.8 billion, representing 75.0% of deposits, compared to $6.9 billion, or 74.7% in the prior quarter.
Total on-balance sheet liquidity and available capacity was $4.8 billion, compared to $2.3 billion in uninsured deposits, resulting in a coverage ratio of over 200%.

Income Statement

Net interest income was $67.8 million for the second quarter of 2025, compared to $65.6 million for the prior quarter. The increase in net interest income for the quarter was primarily driven by lower funding costs on savings and money market accounts, a reduction in average short-term borrowings, and the benefit of one additional day in the quarter. These benefits were partially offset by lower yields on loans and a higher mix of time deposits. Both interest income and interest expense declined during the quarter, reflecting the impact of lower market rates.
Provision for credit losses was $138.2 million for the second quarter of 2025, compared to $26.3 million for the prior quarter. The increase was primarily driven by higher office-related reserves and expected exit strategies. Net charge-offs totaled $83.9 million, up from $11.2 million in the first quarter. The reserve for unfunded commitments totaled $1.8 million, driven primarily by higher unfunded commitments in our commercial and industrial portfolio. This compared to a reversal for unfunded commitments in the prior quarter of $0.3 million.
Noninterest income was $6.4 million for the second quarter of 2025, compared to $8.2 million for the prior quarter. The primary driver for the decrease was a $1.9 million loss on a trade executed to reposition the investment portfolio into higher-yielding assets.
Noninterest expense was $43.5 million for the second quarter of 2025, compared to $45.5 million for the prior quarter. The decrease over the comparative quarter was primarily due to decreased legal, accounting, and professional fees.

Loans and Funding

Total loans were $7.7 billion at June 30, 2025, down 2.8% from the prior quarter-end. The decrease in total loans was primarily driven by declines in income-producing real estate loans, partially offset by an increase in commercial and industrial loans.
Total deposits at quarter-end were $9.1 billion, down $157.7 million, or 1.7%, from the prior quarter-end. The decrease was primarily driven by lower balances in brokered savings and money market accounts. Period end deposits have increased $852.3 million when compared to the prior year comparable period end of June 30, 2024.
Other short-term borrowings were $50.0 million at June 30, 2025, representing an 89.8% decrease from the prior quarter-end. The decline was driven by the pay down of FHLB borrowings, funded by cash and core deposit growth.

Asset Quality

Allowance for credit losses was 2.38% of total loans held for investment at June 30, 2025, compared to 1.63% at the prior quarter-end. Performing office coverage was 11.54% at quarter-end; as compared to 5.78% at the prior quarter-end.
Net charge-offs were $83.9 million for the quarter compared to $11.2 million in the first quarter of 2025.
Nonperforming assets were $228.9 million at June 30, 2025.
- NPAs as a percentage of assets were 2.16% at June 30, 2025, compared to 1.79% at the prior quarter-end. At June 30, 2025, other real estate owned consisted of five properties with an aggregate carrying value of $2.5 million.
- Loans 30-89 days past due were $34.7 million at June 30, 2025, compared to $83.0 million at the prior quarter-end.

Capital

Total shareholders’ equity was $1.2 billion at June 30, 2025, down 4.8% from the prior quarter-end. The decrease in shareholders’ equity of $59.8 million was primarily due to quarterly losses that reduced capital. This was partially offset by an increase in the fair market value of the available-for-sale investment portfolio.
Book value per share and tangible book value per share³ were $39.03 and $39.03, down 4.8% from the prior quarter-end.

Additional financial information: The financial information that follows provides more detail on the Company’s financial performance for the three months ended June 30, 2025 as compared to the three months ended March 31, 2025 and June 30, 2024, as well as eight quarters of trend data. Persons wishing additional information should refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other reports filed with the SEC.

About Eagle Bancorp: The Company is the holding company for EagleBank, which commenced operations in 1998. The Bank is headquartered in Bethesda, Maryland, and operates through twelve banking offices and four lending offices located in Suburban Maryland, Washington, D.C. and Northern Virginia. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace, and is committed to a culture of respect, opportunity, belonging, and inclusion in both its workplace and the communities in which it operates.

Conference call: Eagle Bancorp will host a conference call to discuss its second quarter of 2025 financial results on Thursday, July 24, 2025 at 10:00 a.m. Eastern Time.

The listen-only webcast can be accessed at:

https://edge.media-server.com/mmc/p/yiqohzt3/
For analysts who wish to participate in the conference call, please register at the following URL:
https://register-conf.media-server.com/register/BI6d1c218e6b0143a6903a372200e40cc7

A replay of the conference call will be available on the Company’s website through Thursday, August 7, 2025: https://www.eaglebankcorp.com/

Forward-looking statements: This press release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions. In some cases, forward-looking statements can be identified by use of words such as “may,” “will,” “can,” “anticipates,” “believes,” “expects,” “plans,” “strategy,” “estimates,” “potential,” “continue,” “should,” “could,” “strive,” “feel” and similar words or phrases. These statements are based upon current and anticipated economic conditions, nationally and in the Company’s market (including reductions in the size of the federal government workforce; changes in government spending; the proposal, announcement or imposition of tariffs; volatility in interest rates and interest rate policy; inflation levels; competitive factors) and other conditions (such as the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment regarding the stability and liquidity of banks), which by their nature are not susceptible to accurate forecast and are subject to significant uncertainty. Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results in the future may differ materially from those indicated herein. For details on factors that could affect these expectations, see the risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and in other periodic and current reports filed with the SEC, including the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company’s past results are not necessarily indicative of future performance, and nothing contained herein is meant to or should be considered and treated as earnings guidance of future quarters’ performance projections. All information is as of the date of this press release. Any forward-looking statements made by or on behalf of the Company speak only as to the date they are made. Except to the extent required by applicable law or regulation, the Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.

Eagle Bancorp, Inc.
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended
	June 30,			March 31,			June 30,
		2025			2025			2024
Interest Income
Interest and fees on loans	$	125,223		$	126,136		$	137,616
Interest and dividends on investment securities		11,436			11,912			12,405
Interest on balances with other banks and short-term investments		14,760			15,803			19,568
Interest on federal funds sold		24			27			142
Total interest income		151,443			153,878			169,731
Interest Expense
Interest on deposits		78,912			77,211			76,846
Interest on customer repurchase agreements		250			260			330
Interest on other short-term borrowings		2,489			8,733			21,202
Interest on long-term borrowings		2,016			2,025			—
Total interest expense		83,667			88,229			98,378
Net Interest Income		67,776			65,649			119,910
Provision for Credit Losses		138,159			26,255			8,959
Provision (Reversal) for Credit Losses for Unfunded Commitments		1,759			(297	)		608
Net Interest Income After Provision for Credit Losses		(72,142	)		39,691			110,343

Noninterest Income
Service charges on deposits		1,771			1,743			1,653
Gain on sale of loans		—			—			37
Net gain on sale of investment securities		(1,854	)		4			3
Increase in cash surrender value of bank-owned life insurance		5,161			4,282			709
Other income		1,336			2,178			2,930
Total noninterest income		6,414			8,207			5,332
Noninterest Expense
Salaries and employee benefits		21,940			21,968			21,770
Premises and equipment expenses		3,019			3,203			2,894
Marketing and advertising		1,144			1,371			1,662
Data processing		4,293			3,978			3,495
Legal, accounting and professional fees		1,550			3,122			2,705
FDIC insurance		8,077			8,962			5,917
Goodwill impairment		—			—			104,168
Other expenses		3,447			2,847			3,880
Total noninterest expense		43,470			45,451			146,491
Income (Loss) Before Income Tax Expense		(109,198	)		2,447			(79,373	)
Income Tax Expense		(39,423	)		772			4,429
Net (Loss) Income	$	(69,775	)	$	1,675		$	(83,802	)

(Loss) Earnings Per Common Share
Basic	$	(2.30	)	$	0.06		$	(2.78	)
Diluted	$	(2.30	)	$	0.06		$	(2.78	)

Eagle Bancorp, Inc.
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands, except per share data)
	June 30,			March 31,			June 30,
		2025			2025			2024
Assets
Cash and due from banks	$	14,005		$	12,516		$	10,803
Federal funds sold		4,091			2,968			5,802
Interest-bearing deposits with banks and other short-term investments		239,237			661,173			526,228
Investment securities available-for-sale at fair value (amortized cost of $1,271,179, $1,330,077, and $1,584,435 respectively, and allowance for credit losses of $—, $—, and $17, respectively)		1,170,489			1,214,237			1,420,618
Investment securities held-to-maturity at amortized cost, net of allowance for credit losses of $1,229, $1,275, and $2,012 respectively (fair value of $799,136, $820,530, and $856,275 respectively)		896,855			924,473			982,955
Federal Reserve and Federal Home Loan Bank stock		30,613			51,467			54,274
Loans held for sale		37,576			15,251			5,000
Loans		7,721,664			7,943,306			8,001,739
Less: allowance for credit losses		(183,796	)		(129,469	)		(106,301	)
Loans, net		7,537,868			7,813,837			7,895,438
Premises and equipment, net		7,103			7,079			8,788
Operating lease right-of-use assets		31,202			32,769			16,250
Deferred income taxes		80,731			84,798			86,236
Bank-owned life insurance		325,174			320,055			114,333
Intangible assets, net		9			11			129
Other real estate owned		2,459			2,459			773
Other assets		223,919			174,268			174,396
Total Assets		10,601,331			11,317,361			11,302,023
Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing demand		1,532,132			1,607,826			1,693,955
Interest-bearing transaction		895,604			926,722			1,123,980
Savings and money market		3,267,630			3,558,919			3,165,314
Time deposits		3,424,241			3,183,801			2,284,099
Total deposits		9,119,607			9,277,268			8,267,348
Customer repurchase agreements		23,442			32,357			39,220
Other short-term borrowings		50,000			490,000			1,659,979
Long-term borrowings		76,264			76,181			—
Operating lease liabilities		37,297			38,484			20,016
Reserve for unfunded commitments		4,925			3,166			6,653
Other liabilities		104,729			155,014			139,348
Total Liabilities		9,416,264			10,072,470			10,132,564
Shareholders’ Equity
Common stock, par value $0.01 per share; shares authorized 100,000,000, shares issued and outstanding 30,364,983, 30,368,843, and 30,180,482 respectively		300			300			297
Additional paid-in capital		388,927			386,535			380,142
Retained earnings		904,205			978,995			949,863
Accumulated other comprehensive loss		(108,365	)		(120,939	)		(160,843	)
Total Shareholders’ Equity		1,185,067			1,244,891			1,169,459
Total Liabilities and Shareholders’ Equity	$	10,601,331		$	11,317,361		$	11,302,023

Loan Mix and Asset Quality
(Dollars in thousands)

	June 30,				March 31,				June 30,
	2025				2025				2024
	Amount		%		Amount		%		Amount		%
Loan Balances – Period End:
Commercial	$	1,207,512	15	%	$	1,178,343	15	%	$	1,238,261	15	%
PPP loans		164	—	%		226	—	%	$	407	—	%
Income producing – commercial real estate		3,768,884	48	%		3,967,124	49	%	$	4,217,525	53	%
Owner occupied – commercial real estate		1,365,901	18	%		1,403,668	18	%	$	1,263,714	16	%
Real estate mortgage – residential		45,921	1	%		48,821	1	%	$	61,338	1	%
Construction – commercial and residential		1,211,728	16	%		1,210,788	15	%	$	1,063,764	13	%
Construction – C&I (owner occupied)		69,554	1	%		83,417	1	%	$	99,526	1	%
Home equity		49,224	1	%		50,121	1	%	$	52,773	1	%
Other consumer		2,776	—	%		798	—	%	$	4,431	—	%
Total loans	$	7,721,664	100	%	$	7,943,306	100	%	$	8,001,739	100	%

	Three Months Ended or As Of
	June 30,		March 31,		June 30,
	2025		2025		2024
Asset Quality:
Nonperforming loans	$	226,420	$	200,447	$	98,169
Other real estate owned		2,459		2,459		773
Nonperforming assets	$	228,879	$	202,906	$	98,942
Net charge-offs	$	83,877	$	11,230	$	2,285
Special mention	$	173,311	$	273,380	$	307,906
Substandard	$	702,128	$	501,565	$	408,311

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Prior Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended
	June 30, 2025						March 31, 2025
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,375,782	$	14,749	4.30	%	$	1,445,054	$	15,803	4.44	%
Loans held for sale⁽¹⁾		15,418		284	7.39	%		169		—	—	%
Loans^{(1) (2)}		7,942,333		124,939	6.31	%		7,933,695		126,136	6.45	%
Investment securities available-for-sale⁽²⁾		1,233,206		6,491	2.11	%		1,321,954		6,857	2.10	%
Investment securities held-to-maturity⁽²⁾		918,083		4,945	2.16	%		933,880		5,055	2.20	%
Federal funds sold		2,184		24	4.41	%		5,410		27	2.02	%
Total interest earning assets		11,487,006		151,432	5.29	%		11,640,162		153,878	5.36	%
Total noninterest earning assets		635,125						596,585
Less: allowance for credit losses		133,036						118,557
Total noninterest earning assets		502,089						478,028
TOTAL ASSETS	$	11,989,095					$	12,118,190

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,489,056	$	9,982	2.69	%	$	1,368,609	$	9,908	2.94	%
Savings and money market		3,461,918		29,634	3.43	%		3,682,217		32,389	3.57	%
Time deposits		3,367,907		39,296	4.68	%		2,951,111		34,914	4.80	%
Total interest bearing deposits		8,318,881		78,912	3.80	%		8,001,937		77,211	3.91	%
Customer repurchase agreements		34,387		250	2.92	%		36,572		260	2.88	%
Derivative collateral liability		12,710		118	3.72	%		—		—	—	%
Other short-term borrowings		245,291		2,360	3.86	%		682,222		8,733	5.19	%
Long-term borrowings		76,236		2,016	10.61	%		76,146		2,025	10.79	%
Total interest bearing liabilities		8,687,505		83,656	3.86	%		8,796,877		88,229	4.07	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,907,214						1,881,296
Other liabilities		142,124						197,212
Total noninterest bearing liabilities		2,049,338						2,078,508
Shareholders’ equity		1,252,252						1,242,805
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	11,989,095					$	12,118,190
Net interest income			$	67,776					$	65,649
Net interest spread					1.43	%					1.29	%
Net interest margin					2.37	%					2.28	%
Cost of funds					3.17	%					3.35	%

(1	)	Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.6 million and $3.8 million for the three months ended June 30, 2025 and March 31, 2025, respectively.
(2	)	Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Consolidated Average Balances, Interest Yields And Rates vs. Year Ago Quarter (Unaudited)
(Dollars in thousands)

	Three Months Ended June 30,
		2025						2024
	Average Balance		Interest		Average Yield/Rate		Average Balance		Interest		Average Yield/Rate
ASSETS
Interest earning assets:
Interest-bearing deposits with other banks and other short-term investments	$	1,375,782	$	14,749	4.30	%	$	1,455,007	$	19,568	5.41	%
Loans held for sale⁽¹⁾		15,418		284	7.39	%		8,045		100	5.00	%
Loans^{(1) (2)}		7,942,333		124,939	6.31	%		8,003,206		137,516	6.91	%
Investment securities available-for-sale⁽²⁾		1,233,206		6,491	2.11	%		1,478,856		7,048	1.92	%
Investment securities held-to-maturity⁽²⁾		918,083		4,945	2.16	%		995,274		5,357	2.16	%
Federal funds sold		2,184		24	4.41	%		13,058		142	4.37	%
Total interest earning assets		11,487,006		151,432	5.29	%		11,953,446		169,731	5.71	%
Total noninterest earning assets		635,125						510,725
Less: allowance for credit losses		133,036						102,671
Total noninterest earning assets		502,089						408,054
TOTAL ASSETS	$	11,989,095					$	12,361,500

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
Interest-bearing transaction	$	1,489,056	$	9,982	2.69	%	$	1,636,795	$	16,100	3.96	%
Savings and money market		3,461,918		29,634	3.43	%		3,321,001		33,451	4.05	%
Time deposits		3,367,907		39,296	4.68	%		2,215,693		27,295	4.95	%
Total interest bearing deposits		8,318,881		78,912	3.80	%		7,173,489		76,846	4.31	%
Customer repurchase agreements		34,387		250	2.92	%		38,599		330	3.44	%
Derivative collateral liability		12,710		118	3.72	%		—		—	—	%
Other short-term borrowings		245,291		2,360	3.86	%		1,682,684		21,202	5.07	%
Long-term borrowings		76,236		2,016	10.61	%		—		—	—	%
Total interest bearing liabilities		8,687,505		83,656	3.86	%		8,894,772		98,378	4.45	%
Noninterest bearing liabilities:
Noninterest bearing demand		1,907,214						2,051,777
Other liabilities		142,124						151,324
Total noninterest bearing liabilities		2,049,338						2,203,101
Shareholders’ equity		1,252,252						1,263,627
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	11,989,095					$	12,361,500
Net interest income			$	67,776					$	71,353
Net interest spread					1.43	%					1.26	%
Net interest margin					2.37	%					2.40	%
Cost of funds					3.17	%					3.61	%

(1	)	Loans placed on nonaccrual status are included in average balances. Net loan fees and late charges included in interest income on loans totaled $3.6 million and $4.8 million for the three months ended June 30, 2025 and 2024, respectively.
(2	)	Interest and fees on loans and investments exclude tax equivalent adjustments.

Eagle Bancorp, Inc.
Statements of Operations and Highlights Quarterly Trends (Unaudited)
(Dollars in thousands, except per share data)
				Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023			September 30, 2023
Income Statements:
Total interest income	$	151,443		$	153,878		$	168,417		$	173,813		$	169,731		$	175,602		$	167,421		$	161,149
Total interest expense		83,667			88,229			97,623			101,970			98,378			100,904			94,429			90,430
Net interest income		67,776			65,649			70,794			71,843			71,353			74,698			72,992			70,719
Provision for credit losses		138,159			26,255			12,132			10,094			8,959			35,175			14,490			5,644
Provision (reversal) for credit losses for unfunded commitments		1,759			(297	)		(1,598	)		(1,593	)		608			456			(594	)		(839	)
Net interest income after provision for credit losses		(72,142	)		39,691			60,260			63,342			61,786			39,067			59,096			65,914
Noninterest income before investment gain		8,268			8,203			4,063			6,948			5,329			3,585			2,891			6,342
Net gain on sale of investment securities		(1,854	)		4			4			3			3			4			3			5
Total noninterest income		6,414			8,207			4,067			6,951			5,332			3,589			2,894			6,347
Salaries and employee benefits		21,940			21,968			22,597			21,675			21,770			21,726			18,416			21,549
Premises and equipment expenses		3,019			3,203			2,635			2,794			2,894			3,059			2,967			3,095
Marketing and advertising		1,144			1,371			1,340			1,588			1,662			859			1,071			768
Goodwill impairment		—			—			—			—			104,168			—			—			—
Other expenses		17,367			18,909			17,960			17,557			15,997			14,353			14,644			12,221
Total noninterest expense		43,470			45,451			44,532			43,614			146,491			39,997			37,098			37,633
(Loss) income before income tax expense		(109,198	)		2,447			19,795			26,679			(79,373	)		2,659			24,892			34,628
Income tax expense		(39,423	)		772			4,505			4,864			4,429			2,997			4,667			7,245
Net (loss) income		(69,775	)		1,675			15,290			21,815			(83,802	)		(338	)		20,225			27,383
Per Share Data:
(Loss) earnings per weighted average common share, basic	$	(2.30	)	$	0.06		$	0.51		$	0.72		$	(2.78	)	$	(0.01	)	$	0.68		$	0.91
(Loss) earnings per weighted average common share, diluted	$	(2.30	)	$	0.06		$	0.50		$	0.72		$	(2.78	)	$	(0.01	)	$	0.67		$	0.91
Weighted average common shares outstanding, basic		30,373,167			30,275,001			30,199,433			30,173,852			30,185,609			30,068,173			29,925,557			29,910,218
Weighted average common shares outstanding, diluted		30,510,847			30,404,262			30,321,644			30,241,699			30,185,609			30,068,173			29,966,962			29,944,692
Actual shares outstanding at period end		30,364,983			30,368,843			30,202,003			30,173,200			30,180,482			30,185,732			29,925,612			29,917,982
Book value per common share at period end	$	39.03		$	40.99		$	40.60		$	40.61		$	38.75		$	41.72		$	42.58		$	40.64
Tangible book value per common share at period end⁽¹⁾	$	39.03		$	40.99		$	40.59		$	40.61		$	38.74		$	38.26		$	39.08		$	37.12
Dividend per common share	$	0.165		$	0.165		$	—		$	0.165		$	0.45		$	0.45		$	0.45		$	0.45
Performance Ratios (annualized):
Return on average assets	(2.33		)%		0.06	%		0.48	%		0.70	%	(2.73		)%	(0.01		)%		0.65	%		0.91	%
Return on average common equity	(22.35		)%		0.55	%		4.94	%		7.22	%	(26.67		)%	(0.11		)%		6.48	%		8.80	%
Return on average tangible common equity⁽¹⁾	(22.35		)%		0.55	%		4.94	%		7.22	%	(28.96		)%	(0.11		)%		7.08	%		9.61	%
Net interest margin		2.37	%		2.28	%		2.29	%		2.37	%		2.40	%		2.43	%		2.45	%		2.43	%
Efficiency ratio⁽¹⁾⁽²⁾		58.60	%		61.50	%		59.50	%		55.40	%		191.00	%		51.10	%		48.90	%		48.83	%
Other Ratios:
Allowance for credit losses to total loans⁽³⁾		2.38	%		1.63	%		1.44	%		1.40	%		1.33	%		1.25	%		1.08	%		1.05	%
Allowance for credit losses to total nonperforming loans		81.17	%		64.59	%		54.81	%		83.25	%		110.06	%		108.76	%		131.16	%		118.78	%
Nonperforming assets to total assets		2.16	%		1.79	%		1.90	%		1.22	%		0.88	%		0.79	%		0.57	%		0.64	%
Net charge-offs (recoveries) (annualized) to average total loans⁽³⁾		4.22	%		0.57	%		0.48	%		0.26	%		0.11	%		1.07	%		0.60	%		0.02	%
Tier 1 capital (to average assets)		10.63	%		11.11	%		10.74	%		10.77	%		10.58	%		10.26	%		10.73	%		10.96	%
Total capital (to risk weighted assets)		15.27	%		15.86	%		15.86	%		15.51	%		15.07	%		14.87	%		14.79	%		14.54	%
Common equity tier 1 capital (to risk weighted assets)		14.01	%		14.61	%		14.63	%		14.30	%		13.92	%		13.80	%		13.90	%		13.68	%
Tangible common equity ratio⁽¹⁾		11.18	%		11.00	%		11.02	%		10.86	%		10.35	%		10.03	%		10.12	%		10.04	%
Average Balances (in thousands):
Total assets	$	11,989,095		$	12,118,190		$	12,575,722		$	12,360,899		$	12,361,500		$	12,784,470		$	12,283,303		$	11,942,905
Total earning assets	$	11,487,006		$	11,640,162		$	12,303,940		$	12,072,891		$	11,953,446		$	12,365,497		$	11,837,722		$	11,532,186
Total loans⁽²⁾	$	7,942,333		$	7,933,695		$	7,971,907		$	8,026,524		$	8,003,206		$	7,988,941		$	7,963,074		$	7,795,144
Total deposits	$	10,226,095		$	9,883,233		$	10,056,463		$	9,344,414		$	9,225,266		$	9,501,661		$	9,471,369		$	8,946,641
Total borrowings	$	355,914		$	794,940		$	1,118,276		$	1,654,736		$	1,721,283		$	1,832,947		$	1,401,917		$	1,646,179
Total shareholders’ equity	$	1,252,252		$	1,242,805		$	1,230,573		$	1,201,477		$	1,263,627		$	1,289,656		$	1,238,763		$	1,235,162

(1	)	A reconciliation of non-GAAP financial measures to the nearest GAAP measure is provided in the tables that accompany this document.
(2	)	Computed by dividing noninterest expense by the sum of net interest income and noninterest income.
(3	)	Excludes loans held for sale.

GAAP Reconciliation to Non-GAAP Financial Measures (unaudited)
(dollars in thousands, except per share data)

	June 30,			March 31,			June 30,
	2025			2025			2024
Tangible common equity
Common shareholders’ equity	$	1,185,067		$	1,244,891		$	1,169,459
Less: Intangible assets		(9	)		(11	)		(129	)
Tangible common equity	$	1,185,058		$	1,244,880		$	1,169,330

Tangible common equity ratio
Total assets	$	10,601,331		$	11,317,361		$	11,302,023
Less: Intangible assets		(9	)		(11	)		(129	)
Tangible assets	$	10,601,322		$	11,317,350		$	11,301,894

Tangible common equity ratio		11.18	%		11.00	%		10.35	%

Per share calculations
Book value per common share	$	39.03		$	40.99		$	38.75
Less: Intangible book value per common share	$	—		$	—		$	(0.01	)
Tangible book value per common share	$	39.03		$	40.99		$	38.74

Shares outstanding at period end		30,364,983			30,368,843			30,180,482

	Three Months Ended
	June 30,			March 31,			June 30,
	2025			2025			2024
Average tangible common equity
Average common shareholders’ equity	$	1,252,252		$	1,242,805		$	1,263,627
Less: Average intangible assets		(11	)		(14	)		(99,827	)
Average tangible common equity	$	1,252,241		$	1,242,791		$	1,163,800

Return on average tangible common equity
Net (loss) income	$	(69,775	)	$	1,675		$	(83,802	)
Return on average tangible common equity	(22.35		)%		0.55	%	(28.96		)%

Net (loss) income	$	(69,775	)	$	1,675		$	(83,802	)
Add back of goodwill impairment		—			—			104,168
Operating net (loss) income (Non-GAAP)	$	(69,775	)	$	1,675		$	20,366
Operating Return on average tangible common equity (Non-GAAP)	(22.35		)%		0.55	%		7.04	%

Efficiency ratio
Net interest income	$	67,776		$	65,649		$	71,353
Noninterest income		6,414			8,207			5,332
Operating revenue	$	74,190		$	73,856		$	76,685
Noninterest expense	$	43,470		$	45,451		$	146,491
Add back of goodwill impairment					—			(104,168	)
Operating Noninterest expense (Non-GAAP)		43,470			45,451			42,323

Efficiency ratio		58.59	%		61.54	%		191.03	%
Operating Efficiency ratio (Non-GAAP)		58.59	%		61.54	%		55.19	%

Pre-provision net revenue
Net interest income	$	67,776		$	65,649		$	71,353
Noninterest income		6,414			8,207			5,332
Less: Noninterest expense		(43,470	)		(45,451	)		(146,491	)
Pre-provision net revenue	$	30,720		$	28,405		$	(69,806	)

Pre-provision net revenue	$	30,720		$	28,405		$	(69,806	)
Add back of goodwill impairment	$	—		$	—		$	104,168
Operating Pre-provision net revenue (Non-GAAP)	$	30,720		$	28,405		$	34,362

Tangible common equity, tangible common equity to tangible assets (the “tangible common equity ratio”), tangible book value per common share, average tangible common equity, annualized return on average tangible common equity, and the operating annualized return on average tangible common equity are non-GAAP financial measures derived from GAAP based amounts. The Company calculates the tangible common equity ratio by excluding the balance of intangible assets from common shareholders’ equity, or tangible common equity, and dividing by tangible assets. The Company calculates tangible book value per common share by dividing tangible common equity by common shares outstanding, as compared to book value per common share, which the Company calculates by dividing common shareholders’ equity by common shares outstanding. The Company calculates the annualized return on average tangible common equity ratio by dividing net income available to common shareholders by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company calculates the operating annualized return on average tangible common equity ratio by dividing operating net income available to common shareholders, which adds back the goodwill impairment, by average tangible common equity, which is calculated by excluding the average balance of intangible assets from the average common shareholders’ equity. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company. Further related to other measures, tangible equity is a measure that is consistent with the calculation of capital for bank regulatory purposes, which excludes intangible assets from the calculation of risk based ratios, and as such is useful for investors, regulators, management and others to evaluate capital adequacy and to compare against other financial institutions.

The efficiency ratio is a non-GAAP measure calculated by dividing GAAP noninterest expense by the sum of GAAP net interest income and GAAP noninterest income. The efficiency ratio measures a bank’s overhead as a percentage of its revenue. The Company believes that reporting the non-GAAP efficiency ratio more closely measures its effectiveness of controlling operational activities. Further, the operating efficiency ratio is measured by dividing non-GAAP noninterest expense, which excludes the goodwill impairment, by the sum of GAAP net interest income and GAAP noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

Pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses from the sum of net interest income and noninterest income. The Company considers this information important to shareholders because it illustrates revenue excluding the impact of provisions and reversals to the allowance for credit losses on loans. Operating pre-provision net revenue is a non-GAAP financial measure calculated by subtracting noninterest expenses with the impact of the goodwill impairment added back from the sum of net interest income and noninterest income. The Company considers this information important to shareholders as the significant impact of the goodwill impairment is a one-time event that obscures the operating performance of the company.

	June 30,			March 31,		June 30,
	2025			2025		2024
Net (loss) income	$	(69,775	)	$	1,675	$	(83,802	)
Add back of goodwill impairment		—			—		104,168
Operating Net (loss) income (Non-GAAP)	$	(69,775	)	$	1,675	$	20,366

(Loss) earnings per share (diluted)⁴	$	(2.30	)	$	0.06	$	(2.78	)
Add back of goodwill impairment per share (diluted)		—			—		3.45
Operating earnings (loss) per share (diluted) (Non-GAAP)	$	(2.30	)	$	0.06	$	0.67

Operating net (loss) income and operating (loss) earnings per share (diluted) are non-GAAP financial measures derived from GAAP based amounts. The Company calculates operating net (loss) income by excluding from net (loss) income the one-time goodwill impairment of $104.2 million. During the second quarter of 2024, the Company performed an annual impairment test as a result of management’s evaluation of current economic conditions, and concluded that goodwill had become impaired, which resulted in an impairment charge of $104.2 million to reduce the carrying value of the Company’s goodwill to zero. The Company calculates operating earnings (loss) per share (diluted) by dividing the one-time goodwill impairment of $104.2 million by the weighted average shares outstanding (diluted) for the three and six months ended June 30, 2024. The Company considers this information important to shareholders because operating net (loss) income and operating (loss) earnings per share (diluted) provides investors insight into how Company earnings changed exclusive of the impairment charge to allow investors to better compare the Company’s performance against historical periods. The table above provides a reconciliation of operating net income (loss) and operating earnings (loss) per share (diluted) to the nearest GAAP measure.

^{______________________________
₁}_{A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.}
_{²Calculated as the ACL attributable to loans collateralized by performing office properties as a percentage of total loans.}
_{³ A reconciliation of non-GAAP financial measures and the nearest GAAP measures is provided in the GAAP Reconciliation to Non-GAAP Financial Measures tables that accompany this document.}
_{⁴ For periods ended with a net loss, anti-dilutive financial instruments have been excluded from the calculation of GAAP diluted EPS. Operating diluted EPS calculations include the impact of outstanding equity-based awards for all periods.}

EAGLE BANCORP, INC.
CONTACT:
Eric R. Newell
240.497.1796

For the June 30, 2025 Earnings Presentation, click 2025 EGBN Earnings DECK 6-30-2025 FINAL

The MIL Network –

July 24, 2025

MIL-OSI: Origin Bancorp, Inc. Reports Earnings for Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

RUSTON, La., July 23, 2025 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $14.6 million, or $0.47 diluted earnings per share (“EPS”) for the quarter ended June 30, 2025, compared to net income of $22.4 million, or $0.71 diluted earnings per share, for the quarter ended March 31, 2025. Pre-tax, pre-provision (“PTPP”)⁽¹⁾ earnings were $21.5 million for the quarter ended June 30, 2025, compared to $32.0 million for the linked quarter.

“During the second quarter, we continued to successfully execute on Optimize Origin, our plan to deliver elite level financial performance for Origin and our shareholders,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Throughout the first half of the year, we have created efficiencies within our branch network, improved the overall profitability of our commercial banking team, restructured our mortgage business, and taken multiple actions to optimize our balance sheet. As we head into the back half of 2025, we are well-positioned in the nation’s most dynamic growth markets; and I have full confidence that our employees will continue delivering exceptional value to our customers, communities, and shareholders.”

⁽¹⁾ PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Optimize Origin

In January 2025, we announced our initiative to drive elite financial performance and enhance our award-winning culture.
Built on three primary pillars:
- Productivity, Delivery & Efficiency
- Balance Sheet Optimization
- Culture & Employee Engagement
Established near term target of greater than a 1% ROAA run rate by 4Q25 and an ultimate target of top quartile ROAA.
Near term target is being achieved in part by branch consolidation, headcount reduction, securities optimization, capital optimization, cash/liquidity management, mortgage restructuring, as well as other opportunistic efficiency optimizations throughout the organization.
We believe the actions we have taken will drive earnings improvement of approximately $34.2 million annually on a pre-tax pre-provision basis – an increase of approximately $10.8 million since the last quarterly update, due to additional benefits from increasing our Argent Financial ownership and further securities portfolio optimization.

Financial Highlights

Net interest income was $82.1 million for the quarter ended June 30, 2025, reflecting an increase of $3.7 million, or 4.7%, compared to the linked quarter and is at its highest level in the previous nine quarters.
Our fully tax equivalent net interest margin (“NIM-FTE”) expanded 17 basis points to 3.61% for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025. The increase was primarily driven by an eight-basis point increase in the yield earned on average interest-earning assets and a five-basis point decline in the rate paid on average interest-bearing liabilities.
As part of our bond portfolio optimization strategy, we sold available-for-sale investment securities with a book value of $215.8 million and realized a loss of $14.4 million during the quarter ended June 30, 2025. This transaction, net of the increase in interest income, negatively impacted diluted EPS by $0.35, but contributed approximately two basis points to our NIM-FTE for the quarter ended June 30, 2025, with an estimated twelve-month total positive impact to NIM-FTE of six basis points.
Total loans held for investment (“LHFI”) were $7.68 billion at June 30, 2025, reflecting an increase of $98.9 million, or 1.3%, compared to March 31, 2025. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.11 billion at June 30, 2025, reflecting a decrease of $71.7 million, or 1.0%, compared to March 31, 2025.
During the quarter ended June 30, 2025, we repurchased 136,399 shares of our common stock at an average price of $31.84 per share. Also, in July 2025, our board of directors approved a stock repurchase program authorizing the purchase of up to $50.0 million of the Company’s outstanding common stock over the next three years, replacing the existing plan which expires this month.
Book value per common share was $38.62 at June 30, 2025, reflecting an increase of $0.85, or 2.3%, compared to March 31, 2025 and $3.39, or 9.6%, compared to June 30, 2024. Tangible book value per common share⁽¹⁾ was $33.33 at June 30, 2025, reflecting an increase of $0.90, or 2.8%, compared to March 31, 2025 and $3.56, or 12.0%, compared to June 30, 2024.
As part of our Optimize Origin initiatives, we purchased additional shares of Argent Financial on July 1, 2025, which allowed us to reach the 20% ownership threshold. This will change our accounting methodology on this investment to the equity method, which will result in an increase in noninterest income.

⁽¹⁾ Tangible book value per common share is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

Results of Operations for the Quarter Ended June 30, 2025

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended June 30, 2025, was $82.1 million, an increase of $3.7 million, or 4.7%, compared to the quarter ended March 31, 2025. The increase was primarily driven by a $4.1 million increase in interest income earned on LHFI and decreases of $1.6 million and $1.1 million in interest expense paid on interest-bearing deposits and subordinated debentures, respectively, partially offset by a $3.0 million decrease in interest income earned on interest-earning balances due from banks and a $1.1 million increase in interest expense on FHLB advances and other borrowings.

The increase in average LHFI principal balances and the impact of one more calendar day during the quarter ended June 30, 2025, resulted in interest income increases of $3.1 million and $1.3 million, respectively, when compared to the quarter ended March 31, 2025. The increase in average LHFI principal balances was primarily driven by increases of $191.1 million and $64.1 million in MW LOC and commercial and industrial loans, respectively, partially offset by a decrease of $77.1 million in total average real estate loan balances.

The $1.6 million decrease in interest expense on interest-bearing deposits was mainly due to a $232.8 million decrease in average interest-bearing deposits balance, during the quarter ended June 30, 2025, when compared to the quarter ended March 31, 2025. Due primarily to the seasonality of the deposits, interest-bearing public fund average deposit balances decreased $163.5 million during the quarter ended June 30, 2025.

The $1.1 million decrease in interest expense on subordinated debentures was primarily driven by the redemption of $70.0 million in subordinated debentures during the quarter ended March 31, 2025, in conjunction with our Optimize Origin initiatives.

The $3.0 million decrease in interest income earned on average interest-earning balances due from banks was primarily driven by a $267.4 million decrease in average interest-earning balances due from banks.

The $97.8 million increase in average FHLB advances and other borrowings balance contributed $664,000 to the total $1.1 million increase in interest expense on FHLB advances and other borrowings during the quarter ended June 30, 2025. The remaining increase was primarily driven by an increase in the average rate paid on FHLB advances and other borrowings rising to 4.36% for the quarter ended June 30, 2025, from 2.75% for the quarter ended March 31, 2025. The average short-term FHLB balances were $98.4 million for the quarter ended June 30, 2025, compared to zero for the quarter ended March 31, 2025.

The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. On September 18, 2024, the Federal Reserve reduced the federal funds target rate range by 50 basis points, to a range of 4.75% to 5.00%, marking the first rate reduction since early 2020. Subsequently, it implemented two additional reductions, with the current federal funds target range set to 4.25% to 4.50% on December 18, 2024. In total, the federal funds target range has decreased 100 basis points from its recent cycle high.

Our NIM-FTE was 3.61% for the quarter ended June 30, 2025, representing 17- and 44-basis-point increases compared to the linked quarter and the quarter ended June 30, 2024, respectively. The yield earned on interest-earning assets for the quarter ended June 30, 2025, was 5.87%, an increase of eight basis points compared to the linked quarter and a decrease of 17 basis points compared to the quarter ended June 30, 2024. The average rate paid on total interest-bearing liabilities for the quarter ended June 30, 2025, was 3.25%, representing a decrease of five- and 73-basis points compared to the linked quarter and the quarter ended June 30, 2024, respectively. Additionally, total loans represented 83.6% of average interest-earning assets during the quarter ended June 30, 2025, up from 80.8% during the quarter ended March 31, 2025, providing a favorable shift in the asset mix that contributed to the margin improvement.

During the quarter ended June 30, 2025, we executed a bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance. This strategy involved selling lower-yielding available-for-sale investment securities and using the proceeds to purchase higher-yielding available-for-sale investment securities. As a result, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million. The weighted average duration of the securities portfolio increased to 4.52 years as of June 30, 2025, compared to 4.10 years as of March 31, 2025. As part of the strategy, we also entered into interest rate swaps designated as fair value hedges on seven of these purchased securities with a total book value of $41.3 million, to help reduce potential volatility in the fair value of these securities due to changes in market rates. While this transaction resulted in a $0.35 negative impact to diluted EPS during the quarter ended June 30, 2025, due to the realized loss net of the increase in interest income, we believe the trade-off in yield represents an attractive opportunity. This transaction is expected to generate an estimated annual increase in net interest income of $5.6 million, with an estimated earn-back period of 2.6 years and an estimated twelve-month total positive impact to NIM-FTE of six basis points. We will continue to evaluate and identify any additional opportunities that may present themselves to maximize our return on our securities portfolio.

Credit Quality

The table below includes key credit quality information:

	At and For the Three Months Ended									Change			% Change
(Dollars in thousands, unaudited)	June 30, 2025			March 31, 2025			June 30, 2024			Linked Quarter			Linked Quarter
Past due LHFI⁽¹⁾	$	67,626		$	72,774		$	66,276		$	(5,148	)	7.1	%
Past due 30 to 89 days and still accruing		12,495			42,587			17,080			(30,092	)	70.7
Allowance for loan credit losses (“ALCL”)		92,426			92,011			100,865			415		0.5
Classified loans		127,637			127,676			118,254			(39	)	—
Total nonperforming LHFI		85,315			81,368			75,812			3,947		4.9
Provision for credit losses		2,862			3,444			5,231			(582	)	16.9
Net charge-offs		2,300			2,728			2,946			(428	)	15.7
Credit quality ratios⁽²⁾:
ALCL to nonperforming LHFI		108.33	%		113.08	%		133.05	%	(4.75) %			N/A
ALCL to total LHFI		1.20			1.21			1.27			(0.01	)	N/A
ALCL to total LHFI, adjusted⁽³⁾		1.29			1.28			1.34			0.01		N/A
Classified loans to total LHFI		1.66			1.68			1.49			(0.02	)	N/A
Nonperforming LHFI to LHFI		1.11			1.07			0.95			0.04		N/A
Net charge-offs to total average LHFI (annualized)		0.12			0.15			0.15			(0.03	)	N/A

___________________________

	N/A = Not applicable.
⁽¹⁾	Past due LHFI are defined as loans 30 days or more past due and includes past due nonperforming loans.
⁽²⁾	Please see the Loan Data schedule at the back of this document for additional information.
⁽³⁾	The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

Loans past due 30-89 days and still accruing decreased $30.1 million for the current quarter compared to the linked quarter. The decrease was primarily driven by three loan relationships totaling $10.7 million that were paid off in the current quarter. Also contributing to the decrease in loans 30-89 days past due and still accruing were three loan relationships that are now over 90 days past due and nonperforming totaling $10.6 million and two loan relationships that are now no longer past due totaling $3.0 million.

Nonperforming LHFI increased $3.9 million for the current quarter compared to the linked quarter, evidenced by an increase in the percentage of nonperforming LHFI to LHFI to 1.11% compared to 1.07% for the linked quarter. The increase in nonperforming loans was primarily driven by four relationships totaling $12.9 million at June 30, 2025. The increase was partially offset by $3.6 million in payments from two relationships and further reduced by total charge-offs of $2.9 million.

Our results included a credit loss provision expense of $2.9 million during the quarter ended June 30, 2025, which includes a $2.7 million provision for loan credit losses, compared to provision for loan credit losses of $3.7 million for the linked quarter. Net charge-offs decreased $428,000 for the quarter ended June 30, 2025, when compared to the quarter ended March 31, 2025, primarily due to total charge-offs of $4.8 million in the linked quarter, consisting primarily of two commercial and industrial loan relationships with charge-offs totaling $2.6 million, with no comparably sized charge-offs during the current quarter.

Noninterest Income

Noninterest income for the quarter ended June 30, 2025, was $1.4 million, a decrease of $14.2 million, or 91.2%, from the linked quarter, primarily driven by a $14.4 million loss on sales of securities, net, and a $1.3 million decrease in insurance commission and fee income, respectively, in the current quarter. These decreases were partially offset by an increase of $902,000 in swap fee income.

The loss on sales of securities, net, during the current quarter was due to the execution of the bond portfolio optimization strategy discussed above.

The decrease in insurance commission and fee income was primarily driven by a seasonal increase in annual contingency fee income recognized in the first quarter with no comparable increase in the current quarter.

The increase in swap fee income was due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of Optimize Origin.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2025, was $62.0 million, a decrease of $85,000, or 0.1% from the linked quarter. The decrease was primarily driven by a decrease of $1.4 million in occupancy and equipment, net, that was partially offset by increases of $549,000 and $475,000 in salaries and employee benefit expense and data processing expense, respectively.

The $1.4 million decrease in occupancy and equipment, net was primarily due to cost incurred in the linked quarter in connection with the closure of banking centers as a part of Optimize Origin.

The $549,000 increase in salaries and employee benefit expense was primarily due to the adjustment of the incentive compensation accrual which drove the salaries and employee benefit expense lower during the linked quarter.

The $475,000 increase in data processing expense was primarily due to higher loan workflow software costs during the current quarter compared to the linked quarter.

Financial Condition

Loans

Total LHFI at June 30, 2025, were $7.68 billion, an increase of $98.9 million, or 1.3%, from $7.59 billion at March 31, 2025, and a decrease of $274.7 million, or 3.5%, compared to June 30, 2024.
The primary drivers of the increase during the quarter ended June 30, 2025, compared to the linked quarter, were increases in MW LOC, multi-family real estate and owner occupied commercial real estate of $170.6 million, $40.1 million and $34.8 million, respectively. These increases were partially offset by decreases of $144.9 million and $10.9 million in construction/land/land development loans and commercial and industrial loans, respectively.

Securities

Total securities at June 30, 2025 were $1.14 billion, a decrease of $34.9 million, or 3.0%, from $1.18 billion at March 31, 2025, and a decrease of $34.1 million, or 2.9%, compared to June 30, 2024.
The decrease in securities was primarily due to maturities of short-term investments and net sales of available for sale securities during the current quarter.
In connection with Optimize Origin, we made a strategic decision to replace lower yielding available-for-sale securities with a total book value of $215.8 million with higher-yielding securities totaling $201.8 million. Additional details about this transaction is disclosed above in the Net Interest Income and Net Interest Margin section of this release.
Accumulated other comprehensive loss, net of taxes, primarily associated with unrealized losses within the available for sale portfolio, was $73.6 million at June 30, 2025, a decrease of $16.9 million, or 18.6%, from the linked quarter.
The weighted average effective duration for the total securities portfolio was 4.52 years as of June 30, 2025, compared to 4.10 years as of March 31, 2025.

Deposits

Total deposits at June 30, 2025, were $8.12 billion, a decrease of $215.4 million, or 2.6%, compared to March 31, 2025, and a decrease of $387.8 million, or 4.6%, from June 30, 2024. Seasonality in our public fund deposits drove $99.7 million of the current quarter decline when compared to March 31, 2025.
The decrease in total deposits at June 30, 2025, compared to the linked quarter was primarily due to decreases of $159.0 million, $57.3 million and $47.1 million in interest-bearing demand deposits, time deposits (excluding brokered time deposits) and noninterest-bearing deposits, respectively. The decrease was partially offset by an increase of $92.6 million in money market deposits.
At June 30, 2025 and March 31, 2025, noninterest-bearing deposits as a percentage of total deposits were 22.7%. At June 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 21.9%.

Borrowings

FHLB advances and other borrowings at June 30, 2025, were $127.8 million, an increase of $115.4 million from $12.5 million at March 31, 2025, and an increase of $87.1 million compared to June 30, 2024. The increase in the current quarter compared to the linked quarter is primarily due to an increase in FHLB short-term borrowings of $115.0 million used primarily to meet current liquidity needs.
Average FHLB advances were $104.5 million for the quarter ended June 30, 2025, an increase of $98.3 million from $6.2 million for the quarter ended March 31, 2025 and an increase of $68.8 million from June 30, 2024.

Conference Call

Origin will hold a conference call to discuss its second quarter 2025 results on Thursday, July 24, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (888) 700-7550 (U.S. Toll Free), enter Conference ID: 05905 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ2.

If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

About Origin

Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 55 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

Non-GAAP Financial Measures

Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio.

Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc’s (“Origin”, “we”, “our” or the “Company”) future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: (1) the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of tariffs, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; (2) changes in benchmark interest rates and the resulting impacts on net interest income; (3) deterioration of Origin’s asset quality; (4) factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; (5) the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; (6) changes in the value of collateral securing Origin’s loans; (7) the impact of generative artificial intelligence; (8) Origin’s ability to anticipate interest rate changes and manage interest rate risk; (9) the impact of heightened regulatory requirements, reduced debit interchange and overdraft income and the possibility of facing related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year; (10) the effectiveness of Origin’s risk management framework and quantitative models; (11) Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; (12) the impact of labor pressures; (13) changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; (14) changes in management personnel; (15) Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; (16) increasing costs as Origin grows deposits; (17) operational risks associated with Origin’s business; (18) significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; (19) increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; (20) compliance with governmental and regulatory requirements and changes in laws, rules, regulations, interpretations or policies relating to financial institutions; (21) periodic changes to the extensive body of accounting rules and best practices; (22) further government intervention in the U.S. financial system; (23) a deterioration of the credit rating for U.S. long-term sovereign debt; (24) Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; (25) natural disasters and other adverse weather events, pandemics, acts of terrorism, war, and other matters beyond Origin’s control; (26) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (27) fraud or misconduct by internal or external actors (including Origin employees); (28) cybersecurity threats or security breaches and the cost of defending against them; (29) Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and (30) potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

This press release contains projected financial information with respect to Origin, including with respect to certain goals and strategic initiatives of Origin and the anticipated benefits thereof. This projected financial information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to significant business, economic (including interest rate), competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the projected financial information contained herein and the inclusion of such projected financial information in this release should not be regarded as a representation by any person that such actions will be taken or accomplished or that the results reflected in such projected financial information with respect thereto will be achieved.

Contact:

Investor Relations
Chris Reigelman
318-497-3177
chris@origin.bank

Media Contact
Ryan Kilpatrick
318-232-7472
rkilpatrick@origin.bank

Origin Bancorp, Inc.
Selected Quarterly Financial Data
(Unaudited)

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

Income statement and share amounts	(Dollars in thousands, except per share amounts)
Net interest income	$	82,136		$	78,459		$	78,349		$	74,804		$	73,890
Provision (benefit) for credit losses		2,862			3,444			(5,398	)		4,603			5,231
Noninterest income (loss)		1,368			15,602			(330	)		15,989			22,465
Noninterest expense		61,983			62,068			65,422			62,521			64,388
Income before income tax expense		18,659			28,549			17,995			23,669			26,736
Income tax expense		4,012			6,138			3,725			5,068			5,747
Net income	$	14,647		$	22,411		$	14,270		$	18,601		$	20,989
PTPP earnings⁽¹⁾	$	21,521		$	31,993		$	12,597		$	28,272		$	31,967
Basic earnings per common share		0.47			0.72			0.46			0.60			0.68
Diluted earnings per common share		0.47			0.71			0.46			0.60			0.67
Dividends declared per common share		0.15			0.15			0.15			0.15			0.15
Weighted average common shares outstanding – basic		31,192,622			31,205,752			31,155,486			31,130,293			31,042,527
Weighted average common shares outstanding – diluted		31,327,818			31,412,010			31,308,805			31,239,877			31,131,829

Balance sheet data
Total LHFI	$	7,684,446		$	7,585,526		$	7,573,713		$	7,956,790		$	7,959,171
Total LHFI excluding MW LOC		7,109,698			7,181,395			7,224,632			7,461,602			7,452,666
Total assets		9,678,158			9,750,372			9,678,702			9,965,986			9,947,182
Total deposits		8,123,036			8,338,412			8,223,120			8,486,568			8,510,842
Total stockholders’ equity		1,205,769			1,180,177			1,145,245			1,145,673			1,095,894

Performance metrics and capital ratios
Yield on LHFI		6.33	%		6.33	%		6.47	%		6.67	%		6.58	%
Yield on interest-earnings assets		5.87			5.79			5.91			6.09			6.04
Cost of interest-bearing deposits		3.20			3.23			3.61			4.01			3.95
Cost of total deposits		2.47			2.52			2.79			3.14			3.08
NIM – fully tax equivalent (“FTE”)		3.61			3.44			3.33			3.18			3.17
Return on average assets (annualized) (“ROAA”)		0.60			0.93			0.57			0.74			0.84
PTPP ROAA (annualized)⁽¹⁾		0.89			1.32			0.50			1.13			1.28
Return on average stockholders’ equity (annualized) (“ROAE”)		4.94			7.79			4.94			6.57			7.79
Return on average tangible common equity (annualized) (“ROATCE”)⁽¹⁾		5.74			9.09			5.78			7.74			9.25
Book value per common share	$	38.62		$	37.77		$	36.71		$	36.76		$	35.23
Tangible book value per common share⁽¹⁾		33.33			32.43			31.38			31.37			29.77
Efficiency ratio⁽²⁾		74.23	%		65.99	%		83.85	%		68.86	%		66.82	%
Core efficiency ratio⁽¹⁾		73.77			65.33			82.79			67.48			65.55
Common equity tier 1 to risk-weighted assets⁽³⁾		13.47			13.57			13.32			12.46			12.15
Tier 1 capital to risk-weighted assets⁽³⁾		13.66			13.77			13.52			12.64			12.33
Total capital to risk-weighted assets⁽³⁾		15.68			15.81			16.44			15.45			15.16
Tier 1 leverage ratio⁽³⁾		11.70			11.47			11.08			10.93			10.70

__________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
⁽³⁾	June 30, 2025, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.

Origin Bancorp, Inc.
Selected Year-To-Date Financial Data
(Unaudited)

	Six Months Ended June 30, 2025
(Dollars in thousands, except per share amounts)		2025			2024

Income statement and share amounts
Net interest income	$	160,595		$	147,213
Provision for credit losses		6,306			8,243
Noninterest income		16,970			39,720
Noninterest expense		124,051			123,095
Income before income tax expense		47,208			55,595
Income tax expense		10,150			11,974
Net income	$	37,058		$	43,621
PTPP earnings⁽¹⁾	$	53,514		$	63,838
Basic earnings per common share		1.19			1.41
Diluted earnings per common share		1.18			1.40
Dividends declared per common share		0.30			0.30
Weighted average common shares outstanding – basic		31,199,151			31,011,930
Weighted average common shares outstanding – diluted		31,375,804			31,110,747

Performance metrics
Yield on LHFI		6.33	%		6.58	%
Yield on interest-earning assets		5.83			6.01
Cost of interest-bearing deposits		3.21			3.90
Cost of total deposits		2.49			3.04
NIM-FTE		3.52			3.18
ROAA (annualized)		0.77			0.88
PTPP ROAA (annualized)⁽¹⁾		1.11			1.29
ROAE (annualized)		6.34			8.17
ROATCE (annualized)⁽¹⁾		7.38			9.73
Efficiency ratio⁽²⁾		69.86			65.85
Core efficiency ratio⁽¹⁾		69.29			65.40

____________________________

⁽¹⁾	PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
⁽²⁾	Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.

Origin Bancorp, Inc.
Consolidated Quarterly Statements of Income
(Unaudited)

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

Interest and dividend income	(Dollars in thousands, except per share amounts)
Interest and fees on loans	$	121,239		$	117,075		$	127,021		$	133,195	$	129,879
Investment securities-taxable		7,692			8,076			6,651			6,536		6,606
Investment securities-nontaxable		1,425			968			964			905		893
Interest and dividend income on assets held in other financial institutions		4,281			6,424			5,197			3,621		4,416
Total interest and dividend income		134,637			132,543			139,833			144,257		141,794
Interest expense
Interest-bearing deposits		50,152			51,779			59,511			67,051		65,469
FHLB advances and other borrowings		1,216			96			88			482		514
Subordinated indebtedness		1,133			2,209			1,885			1,920		1,921
Total interest expense		52,501			54,084			61,484			69,453		67,904
Net interest income		82,136			78,459			78,349			74,804		73,890
Provision (benefit) for credit losses		2,862			3,444			(5,398	)		4,603		5,231
Net interest income after provision (benefit) for credit losses		79,274			75,015			83,747			70,201		68,659
Noninterest income
Insurance commission and fee income		6,661			7,927			5,441			6,928		6,665
Service charges and fees		4,927			4,716			4,801			4,664		4,862
Other fee income		2,809			2,301			2,152			2,114		2,404
Mortgage banking revenue		1,369			915			1,151			1,153		1,878
Swap fee income		1,435			533			116			106		44
(Loss) gain on sales of securities, net		(14,448	)		—			(14,617	)		221		—
Limited partnership investment (loss) income		(1,909	)		(1,692	)		(62	)		375		68
Change in fair value of equity investments		—			—			—			—		5,188
Other income		524			902			688			428		1,356
Total noninterest income (loss)		1,368			15,602			(330	)		15,989		22,465
Noninterest expense
Salaries and employee benefits		38,280			37,731			36,405			38,491		38,109
Occupancy and equipment, net		7,187			8,544			7,913			6,298		7,009
Data processing		3,432			2,957			3,414			3,470		3,468
Office and operations		3,337			2,972			2,883			2,984		3,072
Intangible asset amortization		1,768			1,761			1,800			1,905		2,137
Regulatory assessments		1,345			1,392			1,535			1,791		1,842
Advertising and marketing		1,158			1,133			1,929			1,449		1,328
Professional services		1,285			1,250			2,064			2,012		1,303
Electronic banking		1,359			1,354			1,377			1,308		1,238
Loan-related expenses		669			599			431			751		1,077
Franchise tax expense		688			675			884			721		815
Other expenses		1,475			1,700			4,787			1,341		2,990
Total noninterest expense		61,983			62,068			65,422			62,521		64,388
Income before income tax expense		18,659			28,549			17,995			23,669		26,736
Income tax expense		4,012			6,138			3,725			5,068		5,747
Net income	$	14,647		$	22,411		$	14,270		$	18,601	$	20,989

Origin Bancorp, Inc.
Consolidated Balance Sheets
(Unaudited)

(Dollars in thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Assets
Cash and due from banks	$	113,918		$	112,888		$	132,991		$	159,337		$	137,615
Interest-bearing deposits in banks		220,193			373,314			337,258			161,854			150,435
Total cash and cash equivalents		334,111			486,202			470,249			321,191			288,050
Securities:
AFS		1,126,721			1,161,368			1,102,528			1,160,965			1,160,048
Held to maturity, net of allowance for credit losses		11,093			11,094			11,095			11,096			11,616
Securities carried at fair value through income		6,218			6,512			6,512			6,533			6,499
Total securities		1,144,032			1,178,974			1,120,135			1,178,594			1,178,163
Non-marketable equity securities held in other financial institutions		75,181			71,754			71,643			67,068			64,010
Loans held for sale		8,878			10,191			10,494			7,631			18,291
LHFI		7,684,446			7,585,526			7,573,713			7,956,790			7,959,171
Less: ALCL		92,426			92,011			91,060			95,989			100,865
LHFI, net of ALCL		7,592,020			7,493,515			7,482,653			7,860,801			7,858,306
Premises and equipment, net		122,618			123,847			126,620			126,751			121,562
Cash surrender value of bank-owned life insurance		41,265			41,021			40,840			40,602			40,365
Goodwill		128,679			128,679			128,679			128,679			128,679
Other intangible assets, net		36,444			38,212			37,473			39,272			41,177
Accrued interest receivable and other assets		194,930			177,977			189,916			195,397			208,579
Total assets	$	9,678,158		$	9,750,372		$	9,678,702		$	9,965,986		$	9,947,182
Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	1,841,684		$	1,888,808		$	1,900,651		$	1,893,767		$	1,866,622
Interest-bearing deposits excluding brokered interest-bearing deposits, if any		5,450,710			5,536,636			5,301,243			5,137,940			4,984,817
Time deposits		805,642			862,968			941,000			1,023,252			1,022,589
Brokered deposits		25,000			50,000			80,226			431,609			636,814
Total deposits		8,123,036			8,338,412			8,223,120			8,486,568			8,510,842
FHLB advances and other borrowings		127,843			12,488			12,460			30,446			40,737
Subordinated indebtedness		89,657			89,599			159,943			159,861			159,779
Accrued expenses and other liabilities		131,853			129,696			137,934			143,438			139,930
Total liabilities		8,472,389			8,570,195			8,533,457			8,820,313			8,851,288
Stockholders’ equity:
Common stock		156,124			156,220			155,988			155,837			155,543
Additional paid-in capital		537,819			538,790			537,366			535,662			532,950
Retained earnings		585,387			575,578			557,920			548,419			534,585
Accumulated other comprehensive loss		(73,561	)		(90,411	)		(106,029	)		(94,245	)		(127,184	)
Total stockholders’ equity		1,205,769			1,180,177			1,145,245			1,145,673			1,095,894
Total liabilities and stockholders’ equity	$	9,678,158		$	9,750,372		$	9,678,702		$	9,965,986		$	9,947,182

Origin Bancorp, Inc.
Loan Data
(Unaudited)

	At and For the Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

LHFI	(Dollars in thousands)
Owner occupied commercial real estate	$	972,788		$	937,985		$	975,947		$	991,671		$	959,850
Non-owner occupied commercial real estate		1,455,771			1,445,864			1,501,484			1,533,093			1,563,152
Construction/land/land development		653,748			798,609			864,011			991,545			1,017,389
Residential real estate – single family		1,465,535			1,465,192			1,432,129			1,414,013			1,421,027
Multi-family real estate		529,899			489,765			425,460			434,317			398,202
Total real estate loans		5,077,741			5,137,415			5,199,031			5,364,639			5,359,620
Commercial and industrial		2,011,178			2,022,085			2,002,634			2,074,037			2,070,947
MW LOC		574,748			404,131			349,081			495,188			506,505
Consumer		20,779			21,895			22,967			22,926			22,099
Total LHFI		7,684,446			7,585,526			7,573,713			7,956,790			7,959,171
Less: ALCL		92,426			92,011			91,060			95,989			100,865
LHFI, net	$	7,592,020		$	7,493,515		$	7,482,653		$	7,860,801		$	7,858,306

Nonperforming assets⁽¹⁾
Nonperforming LHFI
Commercial real estate	$	12,814		$	5,465		$	4,974		$	2,776		$	2,196
Construction/land/land development		17,720			17,694			18,505			26,291			26,336
Residential real estate⁽²⁾		37,996			40,749			36,221			14,313			13,493
Commercial and industrial		16,655			17,325			15,120			20,486			33,608
Consumer		130			135			182			407			179
Total nonperforming LHFI		85,315			81,368			75,002			64,273			75,812
Other real estate owned/repossessed assets		1,991			1,990			3,635			6,043			6,827
Total nonperforming assets	$	87,306		$	83,358		$	78,637		$	70,316		$	82,639
Classified assets	$	129,628		$	129,666		$	122,417		$	113,529		$	125,081
Past due LHFI⁽³⁾		67,626			72,774			42,437			38,838			66,276
Past due 30 to 89 days and still accruing		12,495			42,587			18,015			20,170			17,080

Allowance for loan credit losses
Balance at beginning of period	$	92,011		$	91,060		$	95,989		$	100,865		$	98,375
Provision (benefit) for loan credit losses		2,715			3,679			(5,489	)		4,644			5,436
Loans charged off		3,700			4,848			2,025			11,226			3,706
Loan recoveries		1,400			2,120			2,585			1,706			760
Net charge-offs (recoveries)		2,300			2,728			(560	)		9,520			2,946
Balance at end of period	$	92,426		$	92,011		$	91,060		$	95,989		$	100,865

Credit quality ratios
Total nonperforming assets to total assets		0.90	%		0.85	%		0.81	%		0.71	%		0.83	%
Nonperforming LHFI to LHFI		1.11			1.07			0.99			0.81			0.95
Past due LHFI to LHFI		0.88			0.96			0.56			0.49			0.83
Past due 30 to 89 days and still accruing to LHFI		0.16			0.56			0.24			0.25			0.21
ALCL to nonperforming LHFI		108.33			113.08			121.41			149.35			133.05
ALCL to total LHFI		1.20			1.21			1.20			1.21			1.27
ALCL to total LHFI, adjusted⁽⁴⁾		1.29			1.28			1.25			1.28			1.34
Net charge-offs (recoveries) to total average LHFI (annualized)		0.12			0.15			(0.03	)		0.48			0.15

____________________________

⁽¹⁾	Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale, if any.
⁽²⁾	Includes multi-family real estate.
⁽³⁾	Past due LHFI are defined as loans 30 days or more past due and includes past due nonperforming loans.
⁽⁴⁾	The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.

Origin Bancorp, Inc.
Average Balances and Yields/Rates
(Unaudited)

	Three Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024
	Average Balance		Yield/Rate		Average Balance		Yield/Rate		Average Balance		Yield/Rate

Assets	(Dollars in thousands)
Commercial real estate	$	2,407,632	5.78	%	$	2,448,099	5.82	%	$	2,497,490	5.91	%
Construction/land/land development		739,601	6.92			821,754	6.87			1,058,972	6.98
Residential real estate⁽¹⁾		1,955,422	5.62			1,909,922	5.53			1,787,829	5.48
Commercial and industrial (“C&I”)		2,068,175	7.30			2,004,034	7.37			2,128,486	7.87
MW LOC		480,587	6.86			289,521	7.07			430,885	7.57
Consumer		21,851	7.29			22,709	7.45			22,396	8.06
LHFI		7,673,268	6.33			7,496,039	6.33			7,926,058	6.58
Loans held for sale		11,422	6.92			8,590	6.18			14,702	6.84
Loans receivable		7,684,690	6.33			7,504,629	6.33			7,940,760	6.58
Investment securities-taxable		980,430	3.15			1,021,904	3.21			1,046,301	2.54
Investment securities-nontaxable		175,101	3.26			140,875	2.79			143,232	2.51
Non-marketable equity securities held in other financial institutions		77,240	6.63			71,669	2.35			56,270	6.53
Interest-earning balances due from banks		276,372	4.36			543,821	4.48			254,627	5.53
Total interest-earning assets		9,193,833	5.87			9,282,898	5.79			9,441,190	6.04
Noninterest-earning assets		522,090				525,317				567,035
Total assets	$	9,715,923			$	9,808,215			$	10,008,225

Liabilities and Stockholders’ Equity
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	5,409,357	3.17	%	$	5,538,710	3.14	%	$	5,130,224	3.80	%
Time deposits		868,703	3.45			972,176	3.69			1,534,679	4.46
Total interest-bearing deposits		6,278,060	3.20			6,510,886	3.23			6,664,903	3.95
FHLB advances and other borrowings		111,951	4.36			14,148	2.75			41,666	4.96
Subordinated indebtedness		89,633	5.07			124,133	7.22			159,973	4.83
Total interest-bearing liabilities		6,479,644	3.25			6,649,167	3.30			6,866,542	3.98
Noninterest-bearing liabilities
Noninterest-bearing deposits		1,881,301				1,837,365				1,894,141
Other liabilities		164,647				154,934				163,273
Total liabilities		8,525,592				8,641,466				8,923,956
Stockholders’ Equity		1,190,331				1,166,749				1,084,269
Total liabilities and stockholders’ equity	$	9,715,923			$	9,808,215			$	10,008,225
Net interest spread			2.62	%			2.49	%			2.06	%
NIM			3.58				3.43				3.15
NIM-FTE⁽²⁾			3.61				3.44				3.17

____________________________

⁽¹⁾	Includes multi-family real estate.
⁽²⁾	In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.

Origin Bancorp, Inc.
Notable Items
(Unaudited)

	At and For the Three Months Ended
	June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	(1,206	)	$	(0.03	)
Notable interest expense items:
OID amortization – subordinated debenture redemption		—			—			(681	)		(0.02	)		—			—			—			—			—			—
Notable provision expense items:
Provision release (expense) related to questioned banker activity		—			—			—			—			3,212			0.08			—			—			(3,212	)		(0.08	)
Provision release (expense) on relationships impacted by questioned banker activity		—			—			375			0.01			—			—			—			—			(4,131	)		(0.11	)
Notable noninterest income items⁽²⁾:
(Loss) gain on sales of securities, net		(14,448	)		(0.36	)		—			—			(14,617	)		(0.37	)		221			0.01			—			—
Gain on sub-debt repurchase		—			—			—			—			—			—			—			—			81			—
Positive valuation adjustment on non-marketable equity securities		—			—			—			—			—			—			—			—			5,188			0.13
Net (loss) gain on OREO properties⁽²⁾		(158	)		—			(212	)		(0.01	)		198			—			—			—			800			0.02
BOLI payout		—			—			208			0.01			—			—			—			—			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(530	)		(0.01	)		(543	)		(0.01	)		(4,069	)		(0.10	)		(848	)		(0.02	)		(1,452	)		(0.04	)
Operating expense related to strategic Optimize Origin initiatives		(428	)		(0.01	)		(1,615	)		(0.04	)		(1,121	)		(0.03	)		—			—			—			—
Employee Retention Credit		—			—			213			0.01			1,651			0.04			—			—			—			—
Total notable items	$	(15,564	)		(0.39	)	$	(2,255	)		(0.06	)	$	(14,746	)		(0.37	)	$	(627	)		(0.02	)	$	(3,932	)		(0.10	)

____________________________

⁽¹⁾	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
⁽²⁾	The $158,000 net loss on OREO properties for the quarter ended June 30, 2025, includes an $8,000 insurance settlement recovery that was included in noninterest income on the face of the income statement and $3,000 in repair costs that was included in noninterest expense. The $212,000 net loss on OREO properties for the quarter ended March 31, 2025, includes a $444,000 expected insurance settlement recovery that was included in noninterest income on the face of the income statement, and a $148,000 repair cost that was included in noninterest expense.

Origin Bancorp, Inc.
Notable Items – Continued
(Unaudited)

	Six Months Ended June 30,
		2025						2024
	$ Impact			EPS Impact⁽¹⁾			$ Impact			EPS Impact⁽¹⁾

	(Dollars in thousands, except per share amounts)
Notable interest income items:
Interest income reversal on relationships impacted by questioned banker activity	$	—		$	—		$	(1,206	)	$	(0.03	)
Notable interest expense items:
OID amortization -subordinated debenture redemption		(681	)		(0.02	)		—			—
Notable provision expense items:
Provision expense related to questioned banker activity		—			—			(3,212	)		(0.08	)
Provision release (expense) on relationships impacted by questioned banker activity		375			0.01			(4,131	)		(0.10	)
Notable noninterest income items:
MSR gain (impairment)		—			—			410			0.01
Loss on sales of securities, net		(14,448	)		(0.36	)		(403	)		(0.01	)
Gain on sub-debt repurchase		—			—			81			—
Positive valuation adjustment on non-marketable equity securities		—			—			5,188			0.13
Net (loss) gain on OREO properties⁽²⁾		(370	)		(0.01	)		800			0.02
BOLI payout		208			0.01			—			—
Notable noninterest expense items:
Operating expense related to questioned banker activity		(1,073	)		(0.03	)		(1,452	)		(0.04	)
Operating expense related to strategic Optimize Origin initiatives		(2,043	)		(0.05	)		—			—
Employee Retention Credit		213			0.01			—			—
Total notable items	$	(17,819	)		(0.45	)	$	(3,925	)		(0.10	)

____________________________

(1)	The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
(2)	The $370,000 net loss on OREO properties for the six months ended June 30, 2025, includes a $452,000 insurance settlement recovery that was included in noninterest income on the face of the income statement and a $151,000 repair cost that was included in noninterest expense.

Origin Bancorp, Inc.
Non-GAAP Financial Measures
(Unaudited)

	At and For the Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	14,647		$	22,411		$	14,270		$	18,601		$	20,989
Provision (benefit) for credit losses		2,862			3,444			(5,398	)		4,603			5,231
Income tax expense		4,012			6,138			3,725			5,068			5,747
PTPP earnings (non-GAAP)	$	21,521		$	31,993		$	12,597		$	28,272		$	31,967

Calculation of PTPP ROAA:
PTPP earnings	$	21,521		$	31,993		$	12,597		$	28,272		$	31,967
Divided by number of days in the quarter		91			90			92			92			91
Multiplied by the number of days in the year		365			365			366			366			366
PTPP earnings, annualized	$	86,320		$	129,749		$	50,114		$	112,473			128,571
Divided by total average assets		9,715,923			9,808,215			9,978,543			9,985,836			10,008,225
ROAA (annualized) (GAAP)		0.60	%		0.93	%		0.57	%		0.74	%		0.84	%
PTPP ROAA (annualized) (non-GAAP)		0.89			1.32			0.50			1.13			1.28

Calculation of tangible book value per common share:
Total common stockholders’ equity	$	1,205,769		$	1,180,177		$	1,145,245		$	1,145,673		$	1,095,894
Goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Other intangible assets, net		(36,444	)		(38,212	)		(37,473	)		(39,272	)		(41,177	)
Tangible common equity		1,040,646			1,013,286			979,093			977,722			926,038
Divided by common shares outstanding at the end of the period		31,224,718			31,244,006			31,197,574			31,167,410			31,108,667
Book value per common share (GAAP)	$	38.62		$	37.77		$	36.71		$	36.76		$	35.23
Tangible book value per common share (non-GAAP)		33.33			32.43			31.38			31.37			29.77

Calculation of ROATCE:
Net income	$	14,647		$	22,411		$	14,270		$	18,601		$	20,989
Divided by number of days in the quarter		91			90			92			92			91
Multiplied by number of days in the year		365			365			366			366			366
Annualized net income	$	58,749		$	90,889		$	56,770		$	74,000		$	84,417

Total average common stockholders’ equity	$	1,190,331		$	1,166,749		$	1,149,228		$	1,125,697		$	1,084,269
Average goodwill		(128,679	)		(128,679	)		(128,679	)		(128,679	)		(128,679	)
Average other intangible assets, net		(37,459	)		(38,254	)		(38,646	)		(40,487	)		(42,563	)
Average tangible common equity		1,024,193			999,816			981,903			956,531			913,027

ROAE (annualized) (GAAP)		4.94	%		7.79	%		4.94	%		6.57	%		7.79	%
ROATCE (annualized) (non-GAAP)		5.74			9.09			5.78			7.74			9.25

Calculation of core efficiency ratio:
Total noninterest expense	$	61,983		$	62,068		$	65,422		$	62,521		$	64,388
Insurance and mortgage noninterest expense		(8,460	)		(8,230	)		(8,497	)		(8,448	)		(8,402	)
Adjusted total noninterest expense		53,523			53,838			56,925			54,073			55,986

Net interest income	$	82,136		$	78,459		$	78,349		$	74,804		$	73,890
Insurance and mortgage net interest income		(2,924	)		(2,815	)		(2,666	)		(2,578	)		(2,407	)
Total noninterest income		1,368			15,602			(330	)		15,989			22,465
Insurance and mortgage noninterest income		(8,030	)		(8,842	)		(6,592	)		(8,081	)		(8,543	)
Adjusted total revenue		72,550			82,404			68,761			80,134			85,405

Efficiency ratio (GAAP)		74.23	%		65.99	%		83.85	%		68.86	%		66.82	%
Core efficiency ratio (non-GAAP)		73.77			65.33			82.79			67.48			65.55

Origin Bancorp, Inc.
Non-GAAP Financial Measures – Continued
(Unaudited)

	Six Months Ended June 30,
		2025			2024

	(Dollars in thousands, except per share amounts)
Calculation of PTPP earnings:
Net income	$	37,058		$	43,621
Provision for credit losses		6,306			8,243
Income tax expense		10,150			11,974
PTPP earnings (non-GAAP)	$	53,514		$	63,838

Calculation of PTPP ROAA:
PTPP Earnings	$	53,514		$	63,838
Divided by the year-to-date number of days		181			182
Multiplied by number of days in the year		365			366
Annualized PTPP Earnings	$	107,915		$	128,378

Divided by total average assets	$	9,761,814		$	9,934,730
ROAA (annualized) (GAAP)		0.77	%		0.88	%
PTPP ROAA (annualized) (non-GAAP)		1.11			1.29

Calculation of ROATCE:
Net income	$	37,058		$	43,621
Divided by the year-to-date number of days		181			182
Multiplied by number of days in the year		365			366
Annualized net income	$	74,730		$	87,721

Total average common stockholders’ equity	$	1,178,605		$	1,073,487
Average goodwill		(128,679	)		(128,679	)
Average other intangible assets, net		(37,854	)		(43,631	)
Average tangible common equity		1,012,072			901,177

ROAE (annualized) (GAAP)		6.34	%		8.17	%
ROATCE (annualized) (non-GAAP)		7.38			9.73

Calculation of core efficiency ratio:
Total noninterest expense	$	124,051		$	123,095
Insurance and mortgage noninterest expense		(16,690	)		(16,447	)
Adjusted total noninterest expense		107,361			106,648

Net interest income	$	160,595		$	147,213
Insurance and mortgage net interest income		(5,739	)		(5,202	)
Total noninterest income		16,970			39,720
Insurance and mortgage noninterest income		(16,872	)		(18,666	)
Adjusted total revenue		154,954			163,065

Efficiency ratio (non-GAAP)		69.86	%		65.85	%
Core efficiency ratio (non-GAAP)		69.29			65.40

The MIL Network –

July 24, 2025

MIL-OSI: Univest Financial Corporation Reports Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

SOUDERTON, Pa., July 23, 2025 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended June 30, 2025 of $20.0 million, or $0.69 diluted earnings per share, compared to net income of $18.1 million, or $0.62 diluted earnings per share, for the quarter ended June 30, 2024.

Loans
Gross loans and leases decreased $31.9 million, or 0.5% (2.0% annualized), from March 31, 2025 and $25.4 million, or 0.4% (0.8% annualized), from December 31, 2024 primarily due to decreases in commercial real estate, residential mortgage loans and lease financings, partially offset by increases in commercial, construction and home equity loans. Gross loans and leases increased $116.3 million, or 1.7%, from June 30, 2024, primarily due to increases in commercial real estate, residential mortgage and home equity loans, partially offset by decreases in commercial and construction loans and lease financings.

Deposits and Liquidity
Total deposits decreased $75.8 million, or 1.1% (4.4% annualized), from March 31, 2025, primarily due to seasonal decreases in public funds deposits and decreases in consumer and brokered deposits, partially offset by an increase in commercial deposits. Excluding decreases of $105.9 million in seasonal public funds deposits and $47.5 million in brokered deposits, deposits increased by $77.5 million during the quarter. Total deposits decreased $176.6 million, or 2.6% (5.2% annualized), from December 31, 2024, due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. Total deposits increased $87.3 million, or 1.3%, from June 30, 2024, due to increases in commercial and public funds deposits, partially offset by decreases in consumer and brokered deposits.

Noninterest-bearing deposits totaled $1.5 billion and represented 22.2% of total deposits at June 30, 2025, compared to $1.4 billion representing 21.5% of total deposits at March 31, 2025. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at June 30, 2025 and March 31, 2025. This represented 23.0% of total deposits at June 30, 2025, compared to 21.9% at March 31, 2025.

As of June 30, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $160.4 million and had committed borrowing capacity of $3.6 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $469.0 million at June 30, 2025. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $59.5 million for the second quarter of 2025 increased $8.5 million, or 16.7%, from the second quarter of 2024 and $2.8 million, or 4.9%, from the first quarter of 2025. The increase in net interest income for the second quarter of 2025 compared to the second quarter of 2024 was driven by higher average balances of loans and higher yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by higher yields on interest earning assets and lower average balances of interest-bearing liabilities and related costs.

Net interest margin, on a tax-equivalent basis, was 3.20% for the second quarter of 2025, compared to 3.09% for the first quarter of 2025 and 2.84% for the second quarter of 2024. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended June 30, 2025 compared to approximately three basis points for the quarter ended March 31, 2025 and approximately two basis points for the quarter ended June 30, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.24% for the quarter ended June 30, 2025 compared to 3.12% for the first quarter of 2025 and 2.86% for the second quarter of 2024.

Noninterest Income
Noninterest income for the quarter ended June 30, 2025 was $21.5 million, an increase of $521 thousand, or 2.5%, from the comparable period in the prior year.

Other income increased $491 thousand, or 65.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase of $299 thousand in gains on sale of Small Business Administration loans.

Service charges on deposit accounts increased $276 thousand, or 13.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income.

Investment advisory commission and fee income increased $222 thousand, or 4.2%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision.

Net gain on mortgage banking activities decreased $729 thousand, or 42.6%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume.

Noninterest Expense
Noninterest expense for the quarter ended June 30, 2025 was $50.3 million, an increase of $1.6 million, or 3.3%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $1.3 million, or 4.5%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, due to increases in salary and medical claims expense. Additionally, variable compensation increased due to increased profitability.

Tax Provision
The effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to an effective tax rate of 19.9% for the quarter ended June 30, 2024. The effective tax rates for the three months ended June 30, 2025 and 2024 were favorably impacted by proceeds of BOLI death benefits received in both periods. Excluding the BOLI death benefits, the effective tax rate was 20.2% for the three months ended June 30, 2025 compared to 20.0% for the three months ended June 30, 2024.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $50.6 million at June 30, 2025, $34.0 million at March 31, 2025, and $36.6 million at June 30, 2024. During the quarter, a $23.7 million commercial loan relationship was placed on nonaccrual status due to, among other things, suspected fraud. Subsequent to the relationship being placed on nonaccrual status, a $7.3 million charge-off was recognized during the quarter. The remaining $16.4 million carrying value is supported by the appraised value of real estate collateral.

Net loan and lease charge-offs were $7.8 million for the three months ended June 30, 2025 compared to $1.7 million and $809 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The increase in charge-offs for the quarter compared to the prior periods was due to the previously discussed $7.3 million charge-off associated with a nonaccrual commercial loan relationship.

The provision for credit losses was $5.7 million for the three months ended June 30, 2025 compared to $2.3 million and $707 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at June 30, 2025, March 31, 2025, and June 30, 2024.

Dividend and Share Repurchases
On July 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on August 20, 2025 to shareholders of record as of August 6, 2025. During the quarter ended June 30, 2025, the Corporation repurchased 172,757 shares of common stock at an average price of $28.45 per share. Including brokerage fees and excise tax, the average price per share was $28.77. As of June 30, 2025, 1,005,637 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss second quarter 2025 results on Thursday, July 24, 2025 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=d55d5140&confId=85192. The general public can access the call by dialing 1-833-470-1428; using Access Code 747843. A replay of the conference call will be available through July 31, 2025 by dialing 1-866-813-9403; using Access Code 563521.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.4 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 2025. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) fluctuations in real estate values and both residential and commercial real estate market conditions; (5) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (6) our ability to access cost-effective funding; (7) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (8) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (9) legislative, regulatory, accounting or tax changes; (10) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (11) the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; (12) the failure to maintain current technologies and to successfully implement future information technology enhancements; (13) technological issues that may adversely affect our operations or those of our customers; (14) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (15) changes in the securities markets; (16) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (17) our ability to enter into new markets successfully and capitalize on growth opportunities; (18) changes in investor sentiment or consumer spending or savings behavior; and/or (19) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP – ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands)

Balance Sheet (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
ASSETS
Cash and due from banks	$	76,624		$	73,319		$	75,998		$	78,346		$	66,808
Interest-earning deposits with other banks		83,741			95,815			252,846			426,354			124,103
Cash and cash equivalents		160,365			169,134			328,844			504,700			190,911
Investment securities held-to-maturity		128,455			130,889			134,111			137,681			140,112
Investment securities available for sale, net of allowance for credit losses		366,421			364,503			357,361			354,100			342,776
Investments in equity securities		1,801			1,667			2,506			2,406			2,995
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		36,482			35,732			38,980			40,235			37,438
Loans held for sale		17,774			13,150			16,653			17,131			28,176
Loans and leases held for investment		6,801,185			6,833,037			6,826,583			6,730,734			6,684,837
Less: Allowance for credit losses, loans and leases		(86,989	)		(87,790	)		(87,091	)		(86,041	)		(85,745	)
Net loans and leases held for investment		6,714,196			6,745,247			6,739,492			6,644,693			6,599,092
Premises and equipment, net		47,140			47,175			46,671			47,411			48,174
Operating lease right-of-use assets		27,278			27,182			28,531			29,260			29,985
Goodwill		175,510			175,510			175,510			175,510			175,510
Other intangibles, net of accumulated amortization		7,967			8,061			8,309			7,158			7,701
Bank owned life insurance		140,086			139,482			139,351			138,744			137,823
Accrued interest and other assets		115,581			117,435			112,098			106,708			114,753
Total assets	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446

LIABILITIES
Noninterest-bearing deposits	$	1,461,189		$	1,433,995		$	1,414,635		$	1,323,953		$	1,397,308
Interest-bearing deposits:		5,121,471			5,224,503			5,344,624			5,530,195			5,098,014
Total deposits		6,582,660			6,658,498			6,759,259			6,854,148			6,495,322
Short-term borrowings		6,271			4,031			11,181			8,256			11,781
Long-term debt		200,000			175,000			225,000			225,000			250,000
Subordinated notes		149,511			149,386			149,261			149,136			149,011
Operating lease liabilities		30,106			30,062			31,485			32,246			33,015
Accrued expenses and other liabilities		53,775			54,718			64,930			59,880			62,180
Total liabilities		7,022,323			7,071,695			7,241,116			7,328,666			7,001,309

SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued		157,784			157,784			157,784			157,784			157,784
Additional paid-in capital		301,640			300,634			302,829			301,262			300,166
Retained earnings		555,403			541,776			525,780			512,938			500,482
Accumulated other comprehensive loss, net of tax benefit		(34,969	)		(37,922	)		(43,992	)		(41,623	)		(54,124	)
Treasury stock, at cost		(63,125	)		(58,800	)		(55,100	)		(53,290	)		(50,171	)
Total shareholders’ equity		916,733			903,472			887,301			877,071			854,137
Total liabilities and shareholders’ equity	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446


	For the three months ended,															For the six months ended,
Balance Sheet (Average)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25		06/30/24
Assets		7,979,475		$	7,981,043		$	8,163,347		$	8,005,265		$	7,721,540		$	7,980,254	$	7,709,058
Investment securities, net of allowance for credit losses		497,214			500,078			500,748			493,334			493,140			498,638		497,061
Loans and leases, gross		6,846,938			6,856,503			6,758,649			6,730,791			6,640,536			6,851,694		6,608,950
Deposits		6,633,250			6,617,653			6,804,483			6,641,324			6,353,752			6,625,494		6,328,804
Shareholders’ equity		908,536			896,811			880,237			864,406			844,572			902,706		843,559

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2025
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
Commercial, financial and agricultural	$	1,052,246		$	1,034,361		$	1,037,835		$	1,044,043		$	1,055,332
Real estate-commercial		3,485,615			3,546,402			3,530,451			3,442,083			3,373,889
Real estate-construction		302,424			281,785			274,483			285,616			313,229
Real estate-residential secured for business purpose		535,210			536,082			536,095			530,674			532,628
Real estate-residential secured for personal purpose		984,166			992,767			994,972			969,562			952,665
Real estate-home equity secured for personal purpose		195,014			189,119			186,836			182,901			179,150
Loans to individuals		14,069			16,930			21,250			26,794			26,430
Lease financings		232,441			235,591			244,661			249,061			251,514
Total loans and leases held for investment, net of deferred income		6,801,185			6,833,037			6,826,583			6,730,734			6,684,837
Less: Allowance for credit losses, loans and leases		(86,989	)		(87,790	)		(87,091	)		(86,041	)		(85,745	)
Net loans and leases held for investment	$	6,714,196		$	6,745,247		$	6,739,492		$	6,644,693		$	6,599,092


Asset Quality Data (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
Nonaccrual loans and leases, including nonaccrual loans held for sale	$	27,909		$	11,126		$	12,667		$	15,319		$	16,200
Accruing loans and leases 90 days or more past due		125			322			321			310			205
Total nonperforming loans and leases		28,034			11,448			12,988			15,629			16,405
Other real estate owned		22,471			22,433			20,141			20,915			20,007
Repossessed assets		80			79			76			79			149
Total nonperforming assets	$	50,585		$	33,960		$	33,205		$	36,623		$	36,561
Nonaccrual loans and leases / Loans and leases held for investment		0.41	%		0.16	%		0.19	%		0.23	%		0.24	%
Nonperforming loans and leases / Loans and leases held for investment		0.41	%		0.17	%		0.19	%		0.23	%		0.25	%
Nonperforming assets / Total assets		0.64	%		0.43	%		0.41	%		0.45	%		0.47	%

Allowance for credit losses, loans and leases	$	86,989		$	87,790		$	87,091		$	86,041		$	85,745
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%		1.28	%		1.28	%		1.28	%		1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		311.69	%		789.05	%		687.54	%		561.66	%		529.29	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		310.30	%		766.86	%		670.55	%		550.52	%		522.68	%


	For the three months ended,															For the six months ended,
	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24
Net loan and lease charge-offs	$	7,807		$	1,686		$	767		$	820		$	809		$	9,493		$	2,215
Net loan and lease charge-offs (annualized)/Average loans and leases		0.46	%		0.10	%		0.05	%		0.05	%		0.05	%		0.28	%		0.07	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands, except per share data)
	For the three months ended,										For the six months ended,
For the period:	06/30/25		03/31/25		12/31/24		09/30/24		06/30/24		06/30/25		06/30/24
Interest income	$	105,706	$	103,416	$	107,476	$	106,438	$	99,832	$	209,122	$	198,441
Interest expense		46,165		46,635		52,004		53,234		48,805		92,800		95,947
Net interest income		59,541		56,781		55,472		53,204		51,027		116,322		102,494
Provision for credit losses		5,694		2,311		2,380		1,414		707		8,005		2,139
Net interest income after provision for credit losses		53,847		54,470		53,092		51,790		50,320		108,317		100,355
Noninterest income:
Trust fee income		2,146		2,161		2,265		2,110		2,008		4,307		4,116
Service charges on deposit accounts		2,258		2,194		2,192		2,037		1,982		4,452		3,853
Investment advisory commission and fee income		5,460		5,613		5,457		5,319		5,238		11,073		10,432
Insurance commission and fee income		5,261		6,889		4,743		5,238		5,167		12,150		12,368
Other service fee income		3,147		2,707		3,473		1,815		3,044		5,854		9,459
Bank owned life insurance income		1,012		1,959		1,012		921		1,086		2,971		1,928
Net gain on sales of investment securities		–		–		–		18		–		–		–
Net gain on mortgage banking activities		981		647		1,320		1,296		1,710		1,628		2,649
Other income		1,236		245		868		1,396		745		1,481		1,770
Total noninterest income		21,501		22,415		21,330		20,150		20,980		43,916		46,575
Noninterest expense:
Salaries, benefits and commissions		31,536		30,826		31,518		30,702		30,187		62,362		61,525
Net occupancy		2,739		2,853		2,751		2,723		2,679		5,592		5,551
Equipment		1,043		1,122		1,147		1,107		1,088		2,165		2,199
Data processing		4,408		4,364		4,146		4,154		4,161		8,772		8,656
Professional fees		1,597		1,797		1,669		1,579		1,466		3,394		3,154
Marketing and advertising		498		353		552		490		715		851		1,131
Deposit insurance premiums		1,074		1,151		1,102		1,097		1,098		2,225		2,233
Intangible expenses		131		130		155		164		188		261		375
Other expense		7,306		6,732		7,618		6,536		7,126		14,038		13,958
Total noninterest expense		50,332		49,328		50,658		48,552		48,708		99,660		98,782
Income before taxes		25,016		27,557		23,764		23,388		22,592		52,573		48,148
Income tax expense		5,038		5,162		4,823		4,810		4,485		10,200		9,736
Net income	$	19,978	$	22,395	$	18,941	$	18,578	$	18,107	$	42,373	$	38,412
Net income per share:
Basic	$	0.69	$	0.77	$	0.65	$	0.64	$	0.62	$	1.46	$	1.31
Diluted	$	0.69	$	0.77	$	0.65	$	0.63	$	0.62	$	1.45	$	1.30
Dividends declared per share	$	0.22	$	0.21	$	0.21	$	0.21	$	0.21	$	0.43	$	0.42
Weighted average shares outstanding		28,859,348		29,000,567		29,070,039		29,132,948		29,246,977		28,929,123		29,330,488
Period end shares outstanding		28,810,805		28,962,648		29,045,877		29,081,108		29,190,640		28,810,805		29,190,640


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025



	For the three months ended,															For the six months ended,
Profitability Ratios (annualized)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24

Return on average assets		1.00	%		1.14	%		0.92	%		0.92	%		0.94	%		1.07	%		1.00	%
Return on average shareholders’ equity		8.82	%		10.13	%		8.56	%		8.55	%		8.62	%		9.47	%		9.16	%
Return on average tangible common equity (1)(3)		11.02	%		12.69	%		10.79	%		10.84	%		11.01	%		11.84	%		11.69	%
Net interest margin (FTE)		3.20	%		3.09	%		2.88	%		2.82	%		2.84	%		3.14	%		2.86	%
Efficiency ratio (2)		61.6	%		61.6	%		65.5	%		65.7	%		67.1	%		61.6	%		65.8	%

Capitalization Ratios

Dividends declared to net income		31.8	%		27.2	%		32.2	%		33.0	%		33.9	%		29.4	%		32.1	%
Shareholders’ equity to assets (Period End)		11.55	%		11.33	%		10.92	%		10.69	%		10.87	%		11.55	%		10.87	%
Tangible common equity to tangible assets (1)		9.52	%		9.31	%		8.92	%		8.71	%		8.81	%		9.52	%		8.81	%
Common equity book value per share	$	31.82		$	31.19		$	30.55		$	30.16		$	29.26		$	31.82		$	29.26
Tangible common equity book value per share (1)	$	25.66		$	25.06		$	24.43		$	24.05		$	23.17		$	25.66		$	23.17

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.94	%		9.80	%		9.51	%		9.53	%		9.74	%		9.94	%		9.74	%
Common equity tier 1 risk-based capital ratio		11.19	%		10.97	%		10.85	%		10.88	%		10.72	%		11.19	%		10.72	%
Tier 1 risk-based capital ratio		11.19	%		10.97	%		10.85	%		10.88	%		10.72	%		11.19	%		10.72	%
Total risk-based capital ratio		14.58	%		14.35	%		14.19	%		14.27	%		14.09	%		14.58	%		14.09	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended,
Tax Equivalent Basis	June 30, 2025							March 31, 2025
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	119,997		$	1,360	4.60	%
Obligations of state and political subdivisions*		–			–	–			879			4	1.85
Other debt and equity securities		497,214			3,962	3.20			499,199			4,019	3.27
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,561			687	7.42
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			657,636			6,070	3.74

Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			990,860			17,020	6.97
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,704,232			52,676	5.77
Real estate—residential loans		1,727,381			21,772	5.06			1,729,146			21,542	5.05
Loans to individuals		15,575			337	8.68			19,438			393	8.20
Tax-exempt loans and leases		228,856			2,966	5.20			230,133			2,861	5.04
Lease financings		177,080			3,192	7.23			182,694			3,240	7.19
Gross loans and leases		6,846,938			100,118	5.86			6,856,503			97,732	5.78
Total interest-earning assets		7,512,254			106,122	5.67			7,514,139			103,802	5.60
Cash and due from banks		55,335							56,690
Allowance for credit losses, loans and leases		(88,127	)						(87,822	)
Premises and equipment, net		47,299							46,852
Operating lease right-of-use assets		26,948							27,761
Other assets		425,766							423,423
Total assets	$	7,979,475						$	7,981,043

Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,222,012		$	7,075	2.35	%
Money market savings		1,754,428			16,945	3.87			1,840,194			18,035	3.97
Regular savings		700,762			749	0.43			702,543			763	0.44
Time deposits		1,541,008			16,261	4.23			1,476,495			16,106	4.42
Total time and interest-bearing deposits		5,213,107			41,755	3.21			5,241,244			41,979	3.25

Short-term borrowings		5,254			1	0.08			6,909			14	0.82
Long-term debt		200,549			2,128	4.26			217,500			2,361	4.40
Subordinated notes		149,444			2,281	6.12			149,319			2,281	6.20
Total borrowings		355,247			4,410	4.98			373,728			4,656	5.05
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,614,972			46,635	3.37
Noninterest-bearing deposits		1,420,143							1,376,409
Operating lease liabilities		29,802							30,675
Accrued expenses and other liabilities		52,640							62,176
Total liabilities		7,070,939							7,084,232
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,988,497				2.65			6,991,381				2.71

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							302,653
Retained earnings and other equity		449,736							436,374
Total shareholders’ equity		908,536							896,811
Total liabilities and shareholders’ equity	$	7,979,475						$	7,981,043
Net interest income				$	59,957						$	57,167

Net interest spread						2.34							2.23
Effect of net interest-free funding sources						0.86							0.86
Net interest margin						3.20	%						3.09	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						133.82	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $689 thousand and $554 thousand for the three months ended June 30, 2025 and March 31, 2025, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and March 31, 2025 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended June 30,
Tax Equivalent Basis	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		–			–	–			1,269			7	2.22
Other debt and equity securities		497,214			3,962	3.20			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			614,972			5,556	3.63

Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			983,615			17,447	7.13
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,549,206			50,577	5.73
Real estate—residential loans		1,727,381			21,772	5.06			1,660,489			20,413	4.94
Loans to individuals		15,575			337	8.68			26,821			542	8.13
Tax-exempt loans and leases		228,856			2,966	5.20			230,495			2,476	4.32
Lease financings		177,080			3,192	7.23			189,910			3,105	6.58
Gross loans and leases		6,846,938			100,118	5.86			6,640,536			94,560	5.73
Total interest-earning assets		7,512,254			106,122	5.67			7,255,508			100,116	5.55
Cash and due from banks		55,335							56,387
Allowance for credit losses, loans and leases		(88,127	)						(86,293	)
Premises and equipment, net		47,299							48,725
Operating lease right-of-use assets		26,948							30,344
Other assets		425,766							416,869
Total assets	$	7,979,475						$	7,721,540

Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,754,428			16,945	3.87			1,692,759			19,131	4.55
Regular savings		700,762			749	0.43			759,960			929	0.49
Time deposits		1,541,008			16,261	4.23			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,213,107			41,755	3.21			4,968,982			43,505	3.52

Short-term borrowings		5,254			1	0.08			29,506			242	2.30
Long-term debt		200,549			2,128	4.26			250,000			2,777	4.47
Subordinated notes		149,444			2,281	6.12			148,943			2,281	6.16
Total borrowings		355,247			4,410	4.98			428,449			5,300	4.98
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,397,431			48,805	3.64
Noninterest-bearing deposits		1,420,143							1,384,770
Operating lease liabilities		29,802							33,382
Accrued expenses and other liabilities		52,640							61,385
Total liabilities		7,070,939							6,876,968
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,988,497				2.65			6,782,201				2.89

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							299,426
Retained earnings and other equity		449,736							387,362
Total shareholders’ equity		908,536							844,572
Total liabilities and shareholders’ equity	$	7,979,475						$	7,721,540
Net interest income				$	59,957						$	51,311

Net interest spread						2.34							1.91
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.20	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						134.43	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $689 thousand and $698 thousand for the three months ended June 30, 2025 and 2024, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Six Months Ended June 30,
Tax Equivalent Basis	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	125,725		$	2,731	4.38	%	$	102,696		$	2,717	5.32	%
Obligations of state and political subdivisions*		437			4	1.85			1,610			19	2.37
Other debt and equity securities		498,201			7,981	3.23			495,451			7,388	3.00
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,134			1,358	7.37			38,201			1,424	7.50
Total interest-earning deposits, investments and other interest-earning assets		661,497			12,074	3.68			637,958			11,548	3.64

Commercial, financial, and agricultural loans		998,363			34,706	7.01			959,132			33,970	7.12
Real estate—commercial and construction loans		3,698,214			106,841	5.83			3,562,174			101,218	5.71
Real estate—residential loans		1,728,259			43,314	5.05			1,639,339			39,968	4.90
Loans to individuals		17,495			730	8.41			27,068			1,090	8.10
Tax-exempt loans and leases		229,491			5,827	5.12			231,437			4,940	4.29
Lease financings		179,872			6,432	7.21			189,800			6,274	6.65
Gross loans and leases		6,851,694			197,850	5.82			6,608,950			187,460	5.70
Total interest-earning assets		7,513,191			209,924	5.63			7,246,908			199,008	5.52
Cash and due from banks		56,009							55,628
Allowance for credit losses, loans and leases		(87,975	)						(86,394	)
Premises and equipment, net		47,076							49,659
Operating lease right-of-use assets		27,352							30,733
Other assets		424,601							412,524
Total assets	$	7,980,254						$	7,709,058

Liabilities:
Interest-bearing checking deposits	$	1,219,446		$	14,875	2.46	%	$	1,137,423		$	15,529	2.75	%
Money market savings		1,797,074			34,980	3.93			1,699,025			38,351	4.54
Regular savings		701,648			1,512	0.43			764,943			1,834	0.48
Time deposits		1,508,930			32,367	4.33			1,330,496			29,764	4.50
Total time and interest-bearing deposits		5,227,098			83,734	3.23			4,931,887			85,478	3.49

Short-term borrowings		6,076			15	0.50			19,816			247	2.51
Long-term debt		208,978			4,489	4.33			271,243			5,660	4.20
Subordinated notes		149,382			4,562	6.16			148,881			4,562	6.16
Total borrowings		364,436			9,066	5.02			439,940			10,469	4.79
Total interest-bearing liabilities		5,591,534			92,800	3.35			5,371,827			95,947	3.59
Noninterest-bearing deposits		1,398,396							1,396,917
Operating lease liabilities		30,236							33,774
Accrued expenses and other liabilities		57,382							62,981
Total liabilities		7,077,548							6,865,499
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,989,930				2.68			6,768,744				2.85

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,830							300,052
Retained earnings and other equity		443,092							385,723
Total shareholders’ equity		902,706							843,559
Total liabilities and shareholders’ equity	$	7,980,254						$	7,709,058
Net interest income				$	117,124						$	103,061

Net interest spread						2.28							1.93
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.14	%						2.86	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.37	%						134.91	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $1.2 million for the six months ended June 30, 2025 and 2024.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
June 30, 2025

(Dollars in thousands)
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE – Retail	$	453,445	8.4	%
Animal Production		401,946	7.5
CRE – Multi-family		360,345	6.7
CRE – 1-4 Family Residential Investment		279,322	5.2
CRE – Office		262,374	4.9
Hotels & Motels (Accommodation)		222,878	4.1
CRE – Industrial / Warehouse		222,234	4.1
Specialty Trade Contractors		197,138	3.7
Nursing and Residential Care Facilities		167,978	3.1
Homebuilding (tract developers, remodelers)		154,166	2.9
Merchant Wholesalers, Durable Goods		140,876	2.6
Repair and Maintenance		135,318	2.5
Motor Vehicle and Parts Dealers		132,852	2.5
Crop Production		113,684	2.1
CRE – Mixed-Use – Residential		113,422	2.1
Wood Product Manufacturing		99,041	1.8
Food Services and Drinking Places		88,822	1.7
Real Estate Lenders, Secondary Market Financing		87,750	1.6
Administrative and Support Services		86,092	1.6
Professional, Scientific, and Technical Services		85,567	1.6
Merchant Wholesalers, Nondurable Goods		81,836	1.5
Private Equity & Special Purpose Entities (except 52592)		76,957	1.4
CRE – Mixed-Use – Commercial		76,067	1.4
Fabricated Metal Product Manufacturing		72,635	1.4
Amusement, Gambling, and Recreation Industries		69,971	1.3
Education		65,839	1.2
Religious Organizations, Advocacy Groups		65,568	1.2
Personal and Laundry Services		63,886	1.2
Miniwarehouse / Self-Storage		63,531	1.2
Food Manufacturing		53,682	1.0
Industries with >$50 million in outstandings	$	4,495,222	83.6	%
Industries with <$50 million in outstandings	$	880,273	16.4	%
Total Commercial Loans	$	5,375,495	100.0	%


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		984,166
Real Estate-Home Equity Secured for Personal Purpose		195,014
Loans to Individuals		14,069
Lease Financings		232,441
Total – Consumer Loans and Lease Financings	$	1,425,690

Total	$	6,801,185

Univest Financial Corporation
Non-GAAP Reconciliation
June 30, 2025

Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.

	As of or for the three months ended,															As of or for the six months ended,
(Dollars in thousands)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24
Net income	$	19,978		$	22,395		$	18,941		$	18,578		$	18,107		$	42,373		$	38,412
Amortization of intangibles, net of tax		103			103			122			130			149			206			296
Net income before amortization of intangibles	$	20,081		$	22,498		$	19,063		$	18,708		$	18,256		$	42,579		$	38,708

Shareholders’ equity	$	916,733		$	903,472		$	887,301		$	877,071		$	854,137		$	916,733		$	854,137
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (a)		(2,040	)		(2,104	)		(2,263	)		(2,147	)		(2,157	)		(2,040	)		(2,157	)
Tangible common equity	$	739,183		$	725,858		$	709,528		$	699,414		$	676,470		$	739,183		$	676,470

Total assets	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446		$	7,939,056		$	7,855,446
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (a)		(2,040	)		(2,104	)		(2,263	)		(2,147	)		(2,157	)		(2,040	)		(2,157	)
Tangible assets	$	7,761,506		$	7,797,553		$	7,950,644		$	8,028,080		$	7,677,779		$	7,761,506		$	7,677,779

Average shareholders’ equity	$	908,536		$	896,811		$	880,237		$	864,406		$	844,572		$	902,706		$	843,559
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Average other intangibles (a)		(2,068	)		(2,162	)		(2,146	)		(2,086	)		(2,222	)		(2,114	)		(2,271	)
Average tangible common equity	$	730,958		$	719,139		$	702,581		$	686,810		$	666,840		$	725,082		$	665,778

(a) Amount does not include mortgage servicing rights

The MIL Network –

July 24, 2025

MIL-OSI: Greystone Housing Impact Investors LP Schedules Second Quarter 2025 Earnings Conference Call for Thursday, August 7, 2025 at 4:30 p.m. Eastern Time

Source: GlobeNewswire (MIL-OSI)

OMAHA, Neb., July 23, 2025 (GLOBE NEWSWIRE) — Greystone Housing Impact Investors LP (NYSE: GHI) (the “Partnership”) announced today that it will host a conference call for investors on Thursday, August 7, 2025 at 4:30 p.m. Eastern Time to discuss the Partnership’s Second Quarter 2025 results.

For those interested in participating in the question-and-answer session, participants may dial-in toll free at (877) 407-8813. International participants may dial-in at +1 (201) 689-8521. No pin or code number is needed.

The call is also being webcast live in listen-only mode. The webcast can be accessed via the Partnership’s website under “Events & Presentations” or via the following link:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=I97G2goh

It is recommended that you join 15 minutes before the conference call begins (although you may register, dial-in or access the webcast at any time during the call).

A recorded replay of the webcast will be made available on the Partnership’s Investor Relations website at http://www.ghiinvestors.com.

About Greystone Housing Impact Investors LP

Greystone Housing Impact Investors LP was formed in 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of mortgage revenue bonds which have been issued to provide construction and/or permanent financing for affordable multifamily, seniors and student housing properties. The Partnership is pursuing a business strategy of acquiring additional mortgage revenue bonds and other investments on a leveraged basis. The Partnership expects and believes the interest earned on these mortgage revenue bonds is excludable from gross income for federal income tax purposes. The Partnership seeks to achieve its investment growth strategy by investing in additional mortgage revenue bonds and other investments as permitted by its Second Amended and Restated Limited Partnership Agreement, dated December 5, 2022, taking advantage of attractive financing structures available in the securities market, and entering into interest rate risk management instruments. Greystone Housing Impact Investors LP press releases are available at www.ghiinvestors.com.

Safe Harbor Statement

Information contained in this press release contains “forward-looking statements,” which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include, but are not limited to, risks involving current maturities of our financing arrangements and our ability to renew or refinance such maturities, fluctuations in short-term interest rates, collateral valuations, mortgage revenue bond investment valuations and overall economic and credit market conditions. For a further list and description of such risks, see the reports and other filings made by the Partnership with the Securities and Exchange Commission, including but not limited to, its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Readers are urged to consider these factors carefully in evaluating the forward-looking statements. The Partnership disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:
Ken Rogozinski
Chief Executive Officer
402-952-1235

The MIL Network –

July 24, 2025

MIL-OSI: Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024.

“Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.”

Second Quarter 2025 Highlights:

Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.

Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Total portfolio loans	$	2,202,115		$	2,124,330		$	2,129,263		$	2,007,565		$	1,875,907
Total deposits	$	2,809,170		$	2,777,977		$	2,680,189		$	2,625,567		$	2,463,806
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Net income	$	11,778		$	13,324		$	10,927		$	8,825		$	9,020
Diluted earnings per share	$	2.09		$	2.38		$	1.95		$	1.57		$	1.62
Return on average assets		1.48	%		1.76	%		1.43	%		1.22	%		1.31	%
Return on average shareholders’ equity		16.37	%		19.70	%		16.32	%		13.69	%		14.84	%
NIM		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%
NIMTE^*		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%
Efficiency ratio		64.68	%		63.54	%		66.96	%		66.11	%		68.78	%
Total shareholders’ equity/total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%
Tangible common equity/tangible assets^*		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%
Book value per share	$	52.55		$	50.67		$	48.41		$	47.27		$	44.93
Tangible book value per share^*	$	43.35		$	41.47		$	39.17		$	44.36		$	42.03
Dividends per share	$	0.64		$	0.64		$	0.62		$	0.62		$	0.61
Common stock outstanding		5,522,271			5,520,892			5,518,210			5,501,943			5,501,562

^* References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

Alaska Economic Update
(Note: sources for information included in this section are included on page 14.)

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025.

According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%.

The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%).

Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6^th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income.

Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector.

Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.”

According to the US Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period. Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska.

The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024. Production rose to 469 thousand bpd in fiscal year ending June 30, 2025. In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates.

The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund’s value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059.

The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage.

There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024.

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

Review of Income Statement

Consolidated Income Statement

In the second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024. Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024.

NIMTE^* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE^* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE^* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025.

Provision for Credit Losses

Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments.

The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments.

Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024.

The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.

Other Operating Expenses

Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024.

Income Tax Provision

In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

Community Banking

Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

Net interest income in the Community Banking segment totaled $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings.

The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions and an increase for higher loan balances.

Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions.

The following tables provide highlights of the Community Banking segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025		March 31, 2025			December 31, 2024		September 30, 2024		June 30, 2024
Net interest income	$	29,971	$	28,151		$	27,643	$	25,928	$	24,318
(Benefit) provision for credit losses		1,319		(1,768	)		771		1,492		(184	)
Other operating income		3,268		2,703			2,535		3,507		2,451
Other operating expense		21,764		18,581			19,116		18,723		18,069
Income before provision for income taxes		10,156		14,041			10,291		9,220		8,884
Provision for income taxes		2,413		3,253			1,474		2,133		1,786
Net income	$	7,743	$	10,788		$	8,817	$	7,087	$	7,098
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,597,889		5,583,055		5,558,580
Diluted earnings per share attributable to Community Banking	$	1.37	$	1.93		$	1.58	$	1.26	$	1.27

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Net interest income	$	58,122		$	48,533
(Benefit) provision for credit losses		(449	)		13
Other operating income		5,971			4,919
Other operating expense		40,345			35,247
Income before provision for income taxes		24,197			18,192
Provision for income taxes		5,666			3,752
Net income Community Banking segment	$	18,531		$	14,440
Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	3.30		$	2.59

Home Mortgage Lending

During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024.

During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago.

The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000.

The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage’s $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024.

The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company’s loss rate regression models for home mortgage loans.

The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company’s servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024.

As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago.

The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Mortgage commitments	$	73,198		$	68,258		$	32,299		$	77,591		$	88,006

Mortgage loans funded for sale	$	249,680		$	108,499		$	162,530		$	209,960		$	152,339
Mortgage loans funded for investment		27,455			13,061			23,380			38,087			29,175
Total mortgage loans funded	$	277,135		$	121,560		$	185,910		$	248,047		$	181,514
Mortgage loan refinances to total fundings		10	%		11	%		11	%		6	%		6	%
Mortgage loans serviced for others	$	1,553,987		$	1,484,714		$	1,460,720		$	1,166,585		$	1,101,800

Net realized and unrealized gains on mortgage loans sold and held for sale	$	5,091		$	1,580		$	3,747		$	5,079		$	3,189
Change in fair value of mortgage loan commitments, net		(110	)		660			(665	)		60			390
Total production revenue		4,981			2,240			3,082			5,139			3,579
Mortgage servicing revenue		2,957			2,696			2,847			2,583			2,164
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(355	)		(322	)		1,372			(566	)		239
Other²		(463	)		(533	)		(499	)		(402	)		(320	)
Total mortgage servicing revenue, net		2,139			1,841			3,720			1,615			2,083
Other mortgage banking revenue		280			170			238			293			222
Total mortgage banking income	$	7,400		$	4,251		$	7,040		$	7,047		$	5,884

Net interest income	$	3,507		$	3,046		$	3,280		$	2,941		$	2,775
Provision (benefit) for credit losses		639			(307	)		305			571			64
Mortgage banking income		7,400			4,251			7,040			7,047			5,884
Other operating expense		7,593			6,490			7,198			7,643			6,697
Income before provision for income taxes		2,675			1,114			2,817			1,774			1,898
Provision for income taxes		746			310			842			497			532
Net income	$	1,929		$	804		$	1,975		$	1,277		$	1,366

Weighted average shares outstanding, diluted		5,611,558			5,608,102			5,597,889			5,583,055			5,558,580
Diluted earnings per share attributable to Home Mortgage Lending	$	0.34		$	0.14		$	0.35		$	0.23		$	0.25

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Mortgage loans funded for sale	$	358,179		$	236,663
Mortgage loans funded for investment		40,516			46,578
Total mortgage loans funded	$	398,695		$	283,241
Mortgage loan refinances to total fundings		10	%		6	%

Net realized and unrealized gains on mortgage loans sold and held for sale	$	6,671		$	5,168
Change in fair value of mortgage loan commitments, net		550			777
Total production revenue		7,221			5,945
Mortgage servicing revenue		5,653			3,725
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(677	)		528
Other²		(996	)		(634	)
Total mortgage servicing revenue, net		3,980			3,619
Other mortgage banking revenue		450			351
Total mortgage banking income	$	11,651		$	9,915

Net interest income	$	6,553		$	5,007
Provision for credit losses		332			16
Mortgage banking income		11,651			9,915
Other operating expense		14,083			12,783
Income before provision for income taxes		3,789			2,123
Provision for income taxes		1,056			595
Net income Home Mortgage Lending segment	$	2,733		$	1,528

Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	0.48		$	0.28

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

Specialty Finance

The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income.

The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

The following tables provide highlights of the Specialty Finance segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025		March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024
Purchased receivable income	$	5,897	$	6,150		$	3,526		$	1,033	$	1,242
Other operating income		75		(64	)		(68	)		—		—
Interest income		782		596			407			158		170
Total revenue		6,754		6,682			3,865			1,191		1,412
Provision for credit losses		18		666			125			—		—
Compensation expense – SCF acquisition payments		600		600			—			—		—
Other operating expense		2,531		2,500			3,063			362		428
Interest expense		668		496			489			185		210
Total expense		3,817		4,262			3,677			547		638
Income before provision for income taxes		2,937		2,420			188			644		774
Provision for income taxes		831		688			53			183		218
Net income Specialty Finance segment	$	2,106	$	1,732		$	135		$	461	$	556
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,597,889			5,583,055		5,558,580
Diluted earnings per share attributable to Specialty Finance	$	0.38	$	0.31		$	0.02		$	0.08	$	0.10

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025		June 30, 2024
Purchased receivable income	$	12,047	$	2,587
Other operating income		11		—
Interest income		1,378		382
Total revenue		13,436		2,969
Provision for credit losses		684		—
Compensation expense – SCF acquisition payments		1,200		—
Other operating expense		5,031		802
Interest expense		1,164		422
Total expense		8,079		1,224
Income before provision for income taxes		5,357		1,745
Provision for income taxes		1,519		494
Net income Specialty Finance segment	$	3,838	$	1,251
Weighted average shares outstanding, diluted		5,611,734		5,562,025
Diluted earnings per share	$	0.69	$	0.23

Balance Sheet Review

Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024.

At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

Average interest-earning assets were $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024.

Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months.

Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago.

Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity.

Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage.

Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024.

Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers’ normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share^* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets^* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024.

Asset Quality

Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment.

Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025.

Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025.

Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

www.northrim.com

Forward-Looking Statement

This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
References:

https://www.bea.gov/

http://almis.labor.state.ak.us/

http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

http://www.tax.state.ak.us/

https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm

https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state

https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

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https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

Contact:	Mike Huston, President, CEO, and COO
	(907) 261-8750
	Jed Ballard, Chief Financial Officer
	(907) 261-3539

Income Statement
(Dollars in thousands, except per share data)	Three Months Ended								Year-to-date
(Unaudited)	June 30,		March 31,			June 30,			June 30,		June 30,
		2025		2025			2024			2025		2024
Interest Income:
Interest and fees on loans	$	40,519	$	37,470		$	32,367		$	77,989	$	62,817
Interest on portfolio investments		3,765		3,675			4,310			7,440		8,830
Interest on deposits in banks		515		416			232			931		1,070
Total interest income		44,799		41,561			36,909			86,360		72,717
Interest Expense:
Interest expense on deposits		10,304		9,935			9,476			20,239		18,656
Interest expense on borrowings		903		329			380			1,232		561
Total interest expense		11,207		10,264			9,856			21,471		19,217
Net interest income		33,592		31,297			27,053			64,889		53,500

Provision (benefit) for credit losses		1,976		(1,409	)		(120	)		567		29
Net interest income after provision for credit losses		31,616		32,706			27,173			64,322		53,471

Other Operating Income:
Mortgage banking income		7,400		4,251			5,884			11,651		9,915
Purchased receivable income		5,897		6,100			1,242			12,047		2,587
Bankcard fees		1,153		1,074			1,105			2,227		2,022
Service charges on deposit accounts		726		677			572			1,403		1,121
Unrealized gain (loss) on marketable equity securities		78		(50	)		(60	)		28		254
Other income		1,386		988			834			2,324		1,522
Total other operating income		16,640		13,040			9,577			29,680		17,421

Other Operating Expense:
Salaries and other personnel expense		20,854		17,223			16,627			38,077		32,044
Data processing expense		3,366		3,104			2,601			6,470		5,260
Occupancy expense		2,104		1,889			1,843			3,993		3,805
Professional and outside services		1,113		1,115			726			2,228		1,481
Marketing expense		1,042		672			690			1,714		1,203
Insurance expense		756		1,017			692			1,773		1,471
Compensation expense – SCF acquisition payments		600		600			—			1,200		—
OREO expense, net rental income and gains on sale		2		3			2			5		(389	)
Other expense		2,651		2,548			2,013			5,199		3,957
Total other operating expense		32,488		28,171			25,194			60,659		48,832

Income before provision for income taxes		15,768		17,575			11,556			33,343		22,060
Provision for income taxes		3,990		4,251			2,536			8,241		4,841
Net income	$	11,778	$	13,324		$	9,020		$	25,102	$	17,219

Basic EPS	$	2.13	$	2.41		$	1.64		$	4.54	$	3.13
Diluted EPS	$	2.09	$	2.38		$	1.62		$	4.47	$	3.10
Weighted average shares outstanding, basic		5,521,811		5,519,998			5,500,588			5,520,905		5,500,083
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,558,580			5,611,734		5,562,025

Balance Sheet
(Dollars in thousands)
(Unaudited)	June 30,			March 31,			June 30,
		2025			2025			2024

Assets:
Cash and due from banks	$	43,734		$	29,671		$	33,364
Interest bearing deposits in other banks		97,549			35,852			21,058
Investment securities available for sale, at fair value		429,421			463,096			584,964
Investment securities held to maturity		36,750			36,750			36,750
Marketable equity securities, at fair value		8,747			8,669			12,381
Investment in Federal Home Loan Bank stock		8,343			5,342			4,929
Loans held for sale		127,116			159,603			85,926

Portfolio loans		2,202,115			2,124,330			1,875,907
Allowance for credit losses, loans		(22,585	)		(20,922	)		(17,694	)
Net portfolio loans		2,179,530			2,103,408			1,858,213
Purchased receivables, net		109,098			95,489			25,722
Mortgage servicing rights, at fair value		27,506			26,814			21,077
Other real estate owned, net		—			—			—
Premises and equipment, net		36,501			37,070			40,393
Lease right of use asset		7,033			7,632			8,244
Goodwill and intangible assets		50,824			50,824			15,967
Other assets		81,608			80,740			72,680
Total assets	$	3,243,760		$	3,140,960		$	2,821,668

Liabilities:
Demand deposits	$	777,948		$	742,560		$	704,471
Interest-bearing demand		1,196,048			1,187,465			906,010
Savings deposits		248,141			256,650			238,156
Money market deposits		196,166			193,842			195,159
Time deposits		390,867			397,460			420,010
Total deposits		2,809,170			2,777,977			2,463,806
Other borrowings		63,026			13,136			43,961
Junior subordinated debentures		10,310			10,310			10,310
Lease liability		7,077			7,682			8,269
Other liabilities		63,958			52,099			48,122
Total liabilities		2,953,541			2,861,204			2,574,468

Shareholders’ Equity:
Total shareholders’ equity		290,219			279,756			247,200
Total liabilities and shareholders’ equity	$	3,243,760		$	3,140,960		$	2,821,668

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans
	June 30, 2025					March 31, 2025					December 31, 2024					September 30, 2024					June 30, 2024
	Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total
Commercial loans	$	569,753		27	%	$	573,593		27	%	$	518,148		24	%	$	492,414		24	%	$	495,781		26	%
Commercial real estate:
Owner occupied properties		447,561		20	%		430,442		20	%		420,060		20	%		412,827		20	%		383,832		20	%
Nonowner occupied and
multifamily properties		696,766		31	%		690,277		32	%		619,431		29	%		584,302		31	%		551,130		30	%
Residential real estate:
1-4 family properties
secured by first liens		206,905		9	%		188,219		9	%		270,535		13	%		248,514		12	%		222,026		12	%
1-4 family properties
secured by junior liens &
revolving secured by first liens		60,118		3	%		53,836		3	%		48,857		2	%		45,262		2	%		41,258		2	%
1-4 family construction		36,005		2	%		34,017		2	%		39,789		2	%		39,794		2	%		29,510		2	%
Construction loans		187,442		8	%		156,211		7	%		214,068		10	%		185,362		9	%		154,009		8	%
Consumer loans		7,570		—	%		7,424		—	%		7,562		—	%		7,836		—	%		6,679		—	%
Subtotal		2,212,120					2,134,019					2,138,450					2,016,311					1,884,225
Unearned loan fees, net		(10,005	)				(9,689	)				(9,187	)				(8,746	)				(8,318	)
Total portfolio loans	$	2,202,115				$	2,124,330				$	2,129,263				$	2,007,565				$	1,875,907

Composition of Deposits
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Demand deposits	$	777,948	28	%	$	742,560	27	%	$	706,225	27	%	$	763,595	29	%	$	704,471	29	%
Interest-bearing demand		1,196,048	42	%		1,187,465	43	%		1,108,404	41	%		979,238	37	%		906,010	36	%
Savings deposits		248,141	9	%		256,650	9	%		250,900	9	%		245,043	9	%		238,156	10	%
Money market deposits		196,166	7	%		193,842	7	%		196,290	7	%		204,821	8	%		195,159	8	%
Time deposits		390,867	14	%		397,460	14	%		418,370	16	%		435,870	17	%		420,010	17	%
Total deposits	$	2,809,170			$	2,777,977			$	2,680,189			$	2,628,567			$	2,463,806

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality	June 30,		March 31,		June 30,
		2025		2025		2024
Nonaccrual loans – Community Banking	$	4,180	$	4,274	$	4,233
Nonaccrual loans – Home Mortgage Lending		197		221		253
Nonaccrual loans – Specialty Finance		3,484		3,573		344
Nonaccrual loans – Total		7,861		8,068		4,830
Loans 90 days past due and accruing – Community Banking		—		—		17
Loans 90 days past due and accruing – Total		—		—		17
Total nonperforming loans – Community Banking		4,180		4,274		4,250
Total nonperforming loans – Home Mortgage Lending		197		221		253
Total nonperforming loans – Specialty Finance		3,484		3,573		344
Total nonperforming loans – Total		7,861		8,068		4,847
Nonperforming loans guaranteed by gov’t – Community Banking		70		80		—
Nonperforming loans guaranteed by gov’t – Total		70		80		—
Net nonperforming loans – Community Banking		4,110		4,194		4,250
Net nonperforming loans – Home Mortgage Lending		197		221		253
Net nonperforming loans – Specialty Finance		3,484		3,573		344
Net nonperforming loans – Total		7,791		7,988		4,847

Repossessed assets – Community Banking		50		297		297
Repossessed assets – Total		50		297		297

Nonperforming purchased receivables – Specialty Finance		4,017		4,007		—

Net nonperforming assets – Community Banking		4,160		4,491		4,547
Net nonperforming assets – Home Mortgage Lending		197		221		253
Net nonperforming assets – Specialty Finance		7,501		7,580		344
Net nonperforming assets – Total	$	11,858	$	12,292	$	5,144

Adversely classified loans, net of gov’t guarantees – Community Banking	$	32,128	$	16,592	$	6,006
Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending		223		252		718
Adversely classified loans, net of gov’t guarantees – Specialty Finance		3,484		3,573		344
Adversely classified loans, net of gov’t guarantees – Total	$	35,835	$	20,417	$	7,068

Special mention loans, net of gov’t guarantees – Community Banking	$	3,966	$	14,496	$	8,902
Special mention loans, net of gov’t guarantees – Home Mortgage Lending		790		637		—
Special mention loans, net of gov’t guarantees – Total	$	4,756	$	15,133	$	8,902

Asset Quality, Continued	June 30,				March 31,				June 30,
		2025				2025				2024
Nonperforming loans, net of government guarantees / portfolio loans		0.35		%		0.38		%		0.26		%
Nonperforming loans, net of government guarantees / portfolio loans,
net of government guarantees		0.38		%		0.40		%		0.28		%
Nonperforming assets, net of government guarantees / total assets		0.37		%		0.39		%		0.18		%
Nonperforming assets, net of government guarantees / total assets
net of government guarantees		0.38		%		0.41		%		0.19		%

Loans 30-89 days past due and accruing, net of government guarantees /								%
portfolio loans		0.06		%		0.04		%		0.03		%
Loans 30-89 days past due and accruing, net of government guarantees /
portfolio loans, net of government guarantees		0.06		%		0.04		%		0.04		%

Allowance for credit losses for loans / portfolio loans		1.03		%		0.98		%		0.94		%
Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees		1.10		%		1.06		%		1.01		%
Allowance for credit losses for loans / nonperforming loans, net of
government guarantees		290		%		262		%		365		%

Gross loan charge-offs for the quarter – Community Banking	$3				$50				$—
Gross loan charge-offs for the quarter – Specialty Finance		152				—				—
Gross loan charge-offs for the quarter – Total		155				50				—

Gross loan recoveries for the quarter – Community Banking		(15	)			(84	)			(26	)
Gross loan recoveries for the quarter – Home Mortgage Lending		—				—				—
Gross loan recoveries for the quarter – Specialty Finance		—				—				—
Gross loan recoveries for the quarter – Total	($15		)		($84		)		($26		)

Net loan (recoveries) charge-offs for the quarter – Community Banking	($12		)		($34		)		($26		)
Net loan (recoveries) charge-offs for the quarter – Specialty Finance		152				—				—
Net loan (recoveries) charge-offs for the quarter – Total	$140				($34		)		($26		)

Net loan charge-offs (recoveries) year-to-date – Community Banking	($46		)		($34		)		($68		)
Net loan charge-offs (recoveries) year-to-date – Specialty Finance		152				—				—
Net loan charge-offs (recoveries) year-to-date – Total	$106				($34		)		($68		)

Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter		0.01		%		—		%		—		%

Net loan charge-offs (recoveries) year-to-date / average loans,
year-to-date annualized		0.01		%		(0.01	)	%		(0.01	)	%

Allowance for credit losses for purchased receivables / purchased receivables		3.05		%		3.72		%		—		%

Net purchased receivable charge-offs (recoveries) for the quarter	$281				$—				$—

Net purchased receivable charge-offs (recoveries) year-to-date	$281				$—				$—

Net purchased receivable charge-offs (recoveries) for the quarter /
average purchased receivables, for the quarter		0.27		%	NA				NA

Net purchased receivable charge-offs (recoveries) year-to-date / average
purchased receivables, year-to-date annualized		0.61		%	NA				NA

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
				Average					Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	27,216		7.60	%	$	37,969		4.44	%	$	17,352		5.27	%
Portfolio investments		515,916		3.07	%		523,753		2.97	%		639,980		2.82	%
Loans held for sale		173,675		6.50	%		46,223		5.86	%		65,102		6.08	%
Portfolio loans		2,172,482		6.99	%		2,173,425		6.89	%		1,845,832		6.87	%
Total interest-earning assets		2,889,289		6.27	%		2,781,370		6.10	%		2,568,266		5.83	%
Nonearning assets		306,206					293,415					204,509
Total assets	$	3,195,495				$	3,074,785				$	2,772,775

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,029,100		2.04	%	$	2,002,594		2.01	%	$	1,725,013		2.21	%
Borrowings		86,404		4.14	%		37,081		3.55	%		38,390		3.92	%
Total interest-bearing liabilities		2,115,504		2.12	%		2,039,675		2.04	%		1,763,403		2.25	%

Noninterest-bearing demand deposits		737,112					697,534					706,339
Other liabilities		54,320					63,348					58,549
Shareholders’ equity		288,559					274,228					244,484
Total liabilities and shareholders’ equity	$	3,195,495				$	3,074,785				$	2,772,775
Net spread				4.15	%				4.06	%				3.58	%
NIM				4.66	%				4.55	%				4.24	%
NIMTE^*				4.72	%				4.61	%				4.30	%
Cost of funds				1.57	%				1.52	%				1.60	%
Average portfolio loans to average
interest-earning assets		75.19	%				78.14	%				71.87	%
Average portfolio loans to average total deposits		78.54	%				80.49	%				75.92	%
Average non-interest deposits to average
total deposits		26.65	%				25.83	%				29.05	%
Average interest-earning assets to average
interest-bearing liabilities		136.58	%				136.36	%				145.64	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Year-to-date
	June 30, 2025					June 30, 2024
				Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	32,563		5.77	%	$	39,457		5.36	%
Portfolio investments		519,813		3.02	%		655,458		2.82	%
Loans held for sale		110,301		6.35	%		48,868		6.10	%
Portfolio loans		2,172,950		6.94	%		1,819,629		6.81	%
Total interest-earning assets		2,835,627		6.19	%		2,563,412		5.76	%
Nonearning assets		299,848					202,819
Total assets	$	3,135,475				$	2,766,231

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,015,920		2.02	%	$	1,728,468		2.17	%
Borrowings		61,879		3.96	%		31,167		3.55	%
Total interest-bearing liabilities		2,077,799		2.08	%		1,759,635		2.19	%

Noninterest-bearing demand deposits		717,432					705,736
Other liabilities		58,809					59,478
Shareholders’ equity		281,435					241,382
Total liabilities and shareholders’ equity	$	3,135,475				$	2,766,231
Net spread				4.11	%				3.57	%
NIM				4.61	%				4.20	%
NIMTE^*				4.66	%				4.26	%
Cost of funds				1.55	%				1.57	%
Average portfolio loans to average interest-earning assets		76.63	%				70.98	%
Average portfolio loans to average total deposits		79.50	%				74.75	%
Average non-interest deposits to average total deposits		26.25	%				28.99	%
Average interest-earning assets to average interest-bearing liabilities		136.47	%				145.68	%

Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

Capital Data (At quarter end)
	June 30, 2025				March 31, 2025				June 30, 2024
Book value per share	$52.55				$50.67				$44.93
Tangible book value per share^*	$43.35				$41.47				$42.03
Total shareholders’ equity/total assets		8.95		%		8.91		%		8.76		%
Tangible Common Equity/Tangible Assets^*		7.50		%		7.41		%		8.24		%
Tier 1 Capital / Risk Adjusted Assets		9.80		%		9.76		%		11.68		%
Total Capital / Risk Adjusted Assets		10.71		%		10.62		%		12.58		%
Tier 1 Capital / Average Assets		7.99		%		8.02		%		9.17		%
Shares outstanding		5,522,271				5,520,892				5,501,562
Total unrealized loss on AFS debt securities, net of income taxes	($3,571		)		($5,452		)		($15,197		)
Total unrealized gain on derivatives and hedging activities, net of income taxes	$1,026				$1,097				$1,212

Profitability Ratios
	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
For the quarter:
NIM	4.66	%	4.55	%	4.41	%	4.29	%	4.24	%
NIMTE^*	4.72	%	4.61	%	4.47	%	4.35	%	4.30	%
Efficiency ratio	64.68	%	63.54	%	66.96	%	66.11	%	68.78	%
Return on average assets	1.48	%	1.76	%	1.43	%	1.22	%	1.31	%
Return on average equity	16.37	%	19.70	%	16.32	%	13.69	%	14.84	%

	June 30, 2025		June 30, 2024
Year-to-date:
NIM	4.61	%	4.20	%
NIMTE^*	4.66	%	4.26	%
Efficiency ratio	64.14	%	68.85	%
Return on average assets	1.61	%	1.25	%
Return on average equity	17.99	%	14.35	%

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

Net interest margin on a tax equivalent basis

Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

	Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
Net interest margin (“NIM”)²		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%

Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Plus: reduction in tax expense related to
tax-exempt interest income		409			379			379			385			378
	$	34,001		$	31,676		$	31,220		$	29,227		$	27,431
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
NIMTE²		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%

	Year-to-date
	June 30, 2025			June 30, 2024
Net interest income	$	64,889		$	53,500
Divided by average interest-bearing assets		2,835,627			2,563,412
Net interest margin (“NIM”)³		4.61	%		4.20	%

Net interest income	$	64,889		$	53,500
Plus: reduction in tax expense related to
tax-exempt interest income		788			757
	$	65,677		$	54,257
Divided by average interest-bearing assets		2,835,627			2,563,412
NIMTE³		4.66	%		4.26	%

²Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

³Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively.

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value Per Share

Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

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

Total shareholders’ equity	$	290,219	$	279,756	$	267,116	$	260,050	$	247,200
Divided by shares outstanding		5,522		5,521		5,518		5,502		5,502
Book value per share	$	52.55	$	50.68	$	48.41	$	47.26	$	44.93

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

Total shareholders’ equity	$	290,219	$	279,756	$	267,116	$	260,050	$	247,200
Less: goodwill and intangible assets		50,824		50,824		50,968		15,967		15,967
	$	239,395	$	228,932	$	216,148	$	244,083	$	231,233
Divided by shares outstanding		5,522		5,521		5,518		5,502		5,502
Tangible book value per share	$	43.35	$	41.47	$	39.17	$	44.36	$	42.03

Tangible Common Equity to Tangible Assets

Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Total assets		3,243,760			3,140,960			3,041,869			2,963,392			2,821,668
Total shareholders’ equity to total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible common shareholders’ equity	$	239,395		$	228,932		$	216,148		$	244,083		$	231,233

Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible assets	$	3,192,936		$	3,090,136		$	2,990,901		$	2,947,425		$	2,805,701
Tangible common equity ratio		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%

Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

The MIL Network –

July 24, 2025

MIL-OSI USA: Rep. Andrea Salinas Leads Colleagues in Letter Opposing Trump Administration’s Attacks on the Forest Service

Source: US Representative Andrea Salinas (OR-06)

Washington, D.C. – Today, U.S. Representative Andrea Salinas (OR-06), joined by ten of her colleagues on the House Agriculture Committee, sent a letter to President Trump highlighting the harm his administration has done to the U.S. Forest Service.

The letter demonstrates that the Trump administration’s actions – which include firing thousands of fire-qualified personnel, slashing funding, and moving forward an ill-conceived reorganization plan – will undermine wildfire preparedness and response across the country. The letter calls on President Trump to reverse course to undo the damage his administration has already caused.

Click here or see below for the full letter:

Dear President Trump,

As we move deeper into wildfire season, we write to express our grave concern regarding your administration’s sustained attacks on the U.S. Forest Service (USFS). Widespread staff reductions, irresponsible budget proposals, and harmful organizational changes undermine the agency’s ability to effectively manage public lands, mitigate the risk of extreme wildfire, and protect the safety of communities across the country.

In early 2025, USFS undertook large-scale staffing reductions. More than 3,400 probationary employees were terminated, and thousands more departed under early retirement and separation incentives. The agency lost qualified wildfire response staff, as well as personnel specializing in fuels and forest management. These staff also conducted essential forest restoration work in the wake of wildfires to help critical ecosystems recover quickly and effectively. The loss of this expertise directly impairs the agency’s ability to reduce wildfire risk and respond effectively when fires occur moving forward. Despite what DOGE may claim, these employees were not part of some imagined bureaucratic fraud, they were dedicated public servants working to protect our public lands and our communities.

In recent months your administration has advanced plans to shift many wildland fire responsibilities away from USFS and into a new entity housed within the Department of the Interior. This proposal has raised serious concerns among experts in fire response and forest management who warn it would create unnecessary disruption, fragment coordination, and delay urgently needed fuels reduction treatments during a time of escalating wildfire threats. For instance, the National Association of Forest Service Retirees has raised concerns that such an entity would take billions of dollars and many years to establish, even if done in an effective manner that preserves federal firefighting capabilities and minimizes chaos. There is also concern that such a new entity would ignore the critical role rank-and-file USFS workers play in fire preparedness and response and the inherent connection between wildfire and ongoing forest health and management. Moreover, as we move away from having a definable fire season and towards year-round risk of severe fire behavior, it is hard to imagine reorganizing our nation’s federal wildland firefighting responsibilities without creating unnecessary confusion and stress while attempting to protect vulnerable communities.

Unfortunately, based on your administration’s track record, these concerns are well founded. From the chaotic mass firings of USFS personnel and the disruption caused by DOGE’s unfounded allegations of “waste, fraud, and abuse,” to the implementation of ill-conceived funding freezes and issuance of repetitive and vague Executive Orders, your Administration has repeatedly demonstrated an inability to execute complex plans efficiently or in good faith. It should come as no surprise, then, that your budget request included no funding to assist with any reorganization effort – nor did it request funds to replace the loss of personnel critical to the USFS’s wildfire preparedness and response capabilities.

We would be remiss not to also mention our concern with the USFS budget proposal for Fiscal Year 2026. Slashing support for state, tribal, and private forestry programs that provide technical and financial assistance to landowners and resource managers to help sustain the nation’s forests and grasslands, protect communities from wildland fire, and restore forest ecosystems is downright dangerous. For example, eliminating funding for the Forest Service’s Collaborative Forest Landscape Restoration program, one of the agency’s most popular and effective programs, will actively hinder our ability to reduce the risk of catastrophic wildfire and support economic revitalization in rural communities.

The USFS is also currently withholding funding from critical state, tribal, and private forestry programs, which are essential to preparing for and responding to wildfire on non-federal lands. We are deeply concerned by reports that program funding is being redirected to pay for the unauthorized and ill-conceived Deferred Resignation Program (DRP). Reallocating funding from its congressionally authorized purpose in order to pay employees to not work is an absurd, illegal, and irresponsible use of taxpayer dollars. If additional resources are desired to pursue DRP or other reorganization efforts, USFS should formally request and justify the need for these resources.

Moving forward, we urge you to direct USFS to rectify the harm it has already done to wildfire preparedness and response. That means re-hiring or replacing terminated employees and resuming the distribution of state, tribal, and private forestry grants. It also means dropping ill-conceived reorganization plans until meaningful planning has occurred and required funds have been secured.

The wildfire crisis is not going away. We should work together to reverse the dangerous course USFS is on, and bolster our wildfire preparedness and response capacity through collaborative, interagency efforts with a proven track record of success. Failure to do so will have catastrophic consequences.

###

MIL OSI USA News –

July 24, 2025

MIL-OSI Security: Defense News in Brief: U.S.-Philippine Airmen strengthen ties during Cope Thunder 25-2

Source: United States Airforce

PACAF participated in Cope Thunder 25-2, a unique platform that integrates U.S. and Philippine Air Forces and enhances interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements.

CLARK AIR BASE, Philippines (AFNS) —

U.S. Pacific Air Forces and Philippine Air Force members participated in Cope Thunder 25-2, a bilateral training conducted across multiple locations in the Philippines. The exercise aimed to strengthen partnerships and support the Philippine Air Force’s modernization efforts, promoting regional and global stability.

Established in the Philippines in 1976, Cope Thunder provides a unique platform to integrate U.S. and Philippine Air Forces and enhance interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements. Cope Thunder 25-2 also marked the first time a U.S. Air Force F-35A Lightning II squadron has deployed to the Philippines.

“It’s obvious that this isn’t a relationship that’s simply on paper,” said Lt. Col. Bryan Mussler, 421st Mission Generation Force Element commander. “We’ve been integrating with them for a long time, and their mentality and approach to operations is very similar to ours.”

Subject matter expert exchanges during the exercise enabled U.S. and Philippine Airmen in similar career fields to share best practices and effective techniques aimed at improving day-to-day operations for both forces. These exchanges included maintenance, firefighting, airfield operations, electromagnetic warfare and basic fighter manoeuvres with U.S. and Philippine pilots flying side by side.

U.S. Air Force maintainers, assigned to the 421st Mission Generation Force Element, depart the flightline after conducting preflight operations on an F-35A Lightning II during Cope Thunder 25-2 at Clark Air Base, Philippines, July 7, 2025. The exercise enhances interoperability between the U.S. Air Force and the Philippine Air Force and supported the Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Staff Sgt. Arnaldo Puente Mendez, 421st Mission Generation Force Element aerospace ground equipment maintainer, briefs Philippine Air Force airmen on a self-generating nitrogen servicing cart during Cope Thunder 25-2 at Clark Air Base, Philippines, July 9, 2025. During the subject matter expert exchange, U.S. Airmen provided valuable insight into equipment used for aircraft maintenance, supporting Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Capt. Tyler Rico, second to the left, and Capt. Toney Fisher, right, 421st Mission Generation Force Element F-35A pilots, coordinate flight plans with Philippine Air Force pilots during the Cope Thunder 25-2 exercise at Clark Air Base, Philippines, July 7, 2025. The training conducted between the U.S. and Philippine Air Force strengthens both the ability to respond together for potential future crises, contingencies and natural disasters. (U.S. Air Force photo by Airman 1st Class Aden Brown) (Image blurred for operational security)

“We worked closely with the PAF pilots, and it was clear they are professional and highly capable aviators that employ their weapon systems with skill and precision,” said Capt. Tobey Fisher, 421st Mission Generation Force Element F-35A instructor pilot. “Additionally, this exercise afforded the 421st MGFE the opportunity to operate at a remote airfield with minimal support.”

The F-35A maintenance team supported Cope Thunder 25-2 with a lean, agile team, operating with roughly one-third of the personnel they typically have at their home station.

“It’s really cool to see such a small team come here and execute the mission,” said Maj. Clinton Bialcak, 421st Fighter Generation Squadron commander, referring to executing the F-35 maintenance mission. “I think everyone in the region, in the world and in the Department of Defense sees that we can do it and they can rely on us.”

The U.S. Air Force’s participation reflects ongoing efforts to strengthen coordination with regional allies and partners.

MIL Security OSI –

July 24, 2025

MIL-OSI USA: Senator Marshall: This is the Greatest Betrayal of American Trust in My Lifetime

US Senate News:

Source: United States Senator for Kansas Roger Marshall

Senator Marshall Joins The Joe Pags Show to Discuss DNI’s Russia Report
Washington – On Wednesday, U.S. Senator Roger Marshall, M.D. (R-Kansas), joined Joe Pags on the Joe Pags Show to discuss Medicaid and rural hospitals, the MAHA agenda, what needs to be done to help improve American healthcare outcomes, and what will happen to the perpetrators identified in DNI Tulsi Gabbard’s recent report about the Russia misinformation scandal.

Click HERE or on the image above to watch Senator Marshall’s full interview.
On the challenges facing rural hospitals:
“This is one of my favorite topics. You know, I practiced medicine for 25 years in one of these rural hospitals. I helped run the hospital, delivered a baby every day in one of these hospitals for 25 years. You know, the challenge right now for rural hospitals is the rural economy. We have many counties that have lost half their population. They’re all moving to big, wonderful cities like Kansas City and Wichita. So the rural economy is really struggling. Only 5% of Medicaid dollars ever make it to rural America. So yes, 60% of rural hospitals are really struggling.
And enter the One Big, Beautiful Bill – we try to help the rural economy by helping out with crop insurance, reference prices, doubling the death tax, and some of those types of business tax issues as well. So I think it’s the economy, right?”
On Democrat misinformation regarding Medicaid and rural hospitals:“Joe, I think the left controls 90% of the message. They control the national media; it is that simple. But I came to Washington, DC, to save healthcare, and I think that we’ve saved Medicaid. For now, we’ve saved it. We put it back on solid financial footing so that Medicaid is there for those who need it the most. For senior citizens in nursing homes, for people with disabilities, for pregnant women, for children.
“No one’s going to lose Medicaid unless they’re on it illegally, and there are 2 million people on it illegally right now. 2 million people getting it from two states right now. And then, the only other people that will lose their Medicaid are people that refuse to work. And all we’re asking is people work for 20 hours a week. When did having a job, when was that considered punishment? Why is that a bad thing?
“I’m going to give you one more stat, Joe, is that 20 years ago, there was only 7 million healthy people on Medicaid. Today, there’s 34 million healthy people on Medicaid. Let’s help those people find a job. Let’s give them education. Let’s help give them a hand up, and not a handout.”
On the importance of verifying people’s status for Medicaid:
“So this would be Medicaid expansion as you know it. So, Medicaid expansion gives Medicaid to healthy people that are above the poverty line. And then they stopped really doing any types of checks and balances on people. People could just walk in and say, I don’t have a job, I’m not making any money, they would never verify it. But we had the technology data actually verify those things pretty easily, and then we would just check things once a year. So I understand, look, I want to help medicate people out, I want to make sure no one goes to bed hungry, but this idea of just checking people once a year, not verifying their story, is just dishonest.”
On improving the quality of VA care:
“So Joe, again, what’s important to me: my dad served, my brother served, I served, my son is serving everyone. Every generation of my family, someone has served. I want to make sure that we fulfill the promise we made to veterans, but it’s been done inefficiently. It’s amazing, when President Trump 45 was in office, the wait times went down for our veterans, the care was going up, and the patient satisfaction was going up.
“But under Joe Biden, they hired more and more administrator-type of people. And now President Trump went in there and said, ‘we don’t want all this bloated administration.’ There’s hundreds of billions of dollars that we’re increasing every year for veterans. We want to make sure it’s patient interfacing. So it’s the counselors, it’s the nurses, it’s the physical therapists. Those are the people we want. We don’t want more and more bureaucrats setting up here in the VA, here in Washington, DC.”
On what might replace Obamacare:
“Absolutely, and we’ve had these conversations. My big three themes for fixing health care when I came here was anything that makes health care more transparent, anything that promotes innovation, and anything that makes patients consumers again, would drive down the cost of health care. And President Trump already has issued many executive orders on the transparency part of this that are coming to fruition as well… making hospitals show you what they’re going to charge you for if you need an MRI, make that imaging center share with you what it’s going to cost so consumers can shop more.
“So our big thrust of legislation this semester, as I call it, is we dropped a big transparency bill, which in many cases is codifying what President Trump’s executive orders are. And then there’s an issue called prior authorization, where Medicare Advantage companies, especially, are trying to prevent patients from getting the care they need.
“So I was recently with the White House and Dr. Oz, and Secretary Kennedy, putting some more rules around what they can and can’t do as far as withholding health care. So, absolutely, those conversations that went on since day one, and I’m very proud to work beside Dr. Oz, Dr. McCary, over in FDA, as well as Secretary Kennedy.”
On healthcare cost transparency and medical monopolies:
“Joe, I’m not sure if I have a great answer. I can certainly tell you that I believe that insurance companies and big hospitals wrote the ACA. And they knew exactly what they were doing. Through the years, increased regulations have led to monopolies. So, you think about healthcare in each community. There’s one hospital; there’s usually one or two insurance companies that control 80% of the market in the entire state as well. So, through the years, these monopolies have allowed them to do it more.
“So, physicians would like to own hospitals. Hospitals can own physicians, but physicians cannot own hospitals. We would like to come back in and have more competition, but that was outlawed by the ACA as well. So, whenever there’s overregulation, that’s going to lead to consolidation of the industry and get them more and more free rein.”
On the job that HHS Secretary Kennedy is doing thus far:
“Well, I think we’re just getting started again. The backdrop of this is 60% of Americans have a chronic disease. We’re spending 90% of our healthcare dollars on those chronic diseases, think heart disease, hypertension, obesity, diabetes, Alzheimer’s, cancer, and anxiety. Those seven diseases are taking up 90% of [the] dollars [spent]. We think that there’s a significant nutritional component to all those. I think that we’re going to find that alzheimers is type three diabetes.
“So, what can we do nutritionally to prevent those as well as treat them. So I’ve worked, obviously, I’ve grown up in agriculture, so I’ve had a foot in agriculture my whole life, a foot in healthcare since I was 23 or so, I started medical school, I guess.
“So, as I listened to MAHA, I listened to the American farmers, and said: Where do we meet? How do we get healthy food? Well, I think it starts with healthy soil. It’s kind of a dirty topic, if you will, but that’s the focus. That’s what we’re working with, Secretary Kennedy and Secretary Rollins at Agriculture, who’s doing an incredible job, is trying to work with our farmers to make healthier soil, which is going to lead to healthy food and healthy people. And by the way, American farmers are doing so many great things already in this area.
“So, I’ve been sharing with Secretary Kennedy best practices where we’re growing more with less. We’re decreasing by 90% the amount of fertilizer and pesticides that are leaving our field. We’re decreasing the amount that we’re putting on by 60% through modern-day agriculture practices. So, we’re working on this transition to get everybody practicing this regenerative agriculture.”
On DNI Gabbard’s Russia misinformation report:
“Joe, this is certainly new information to me. This White House meeting, with documentation of that meeting, adds Joe Biden’s name to being in that meeting as well. And I think what that document shows is this is the greatest betrayal of American trust in my lifetime. And you’re out there, your listeners right now, you’re sitting there thinking, well, the Democrats lied to us about COVID. They lied to us about Joe Biden’s health. And here’s his Royal Highness Barack Obama, that he lied to us as well and really organized this fraud, of what happened in this, Russia, Russia, Russia hoax.
“And certainly the FISA court abuse, we knew all about that, but this is news to me that we can actually trace this all the way back to it to one Oval Office meeting, and they absolutely contradicted what the intelligence community was saying. I think that’s accurate.”
On what will happen to the perpetrators of the hoax:
“Yeah, Joe, I think it’s all the above. Certainly, we need the Justice Department to go full speed ahead and do whatever they can do. And meanwhile, the House and the Senate both have investigative committees. James Comer leads that over on the House side, and Rand Paul here on the Senate side. Ron Johnson also has a subcommittee that can focus on this as well. So, all of this needs to happen. Congress’s job is to expose everything and then let the Justice Department prosecute.
“But regardless of where it goes, Joe, I think the story here, to me, is this betrayal of American trust as a physician. One of the first things I learned is that once you lose your reputation, you never get it back. And Americans don’t trust the federal government right now, and why would they right? So, I’m trying to work day and night to help restore that trust, but I think the Democrats just keep digging and digging a hole further and deeper. You know, the first thing you need to do when you’re in a hole is to stop digging. And here they are again, once again, in a deep, deep hole.”
On the American right wanting to see arrests:
“Joe, I sure hope so. I just want to tell you, you sound like my wife. You sound like my mom and dad. They say why isn’t somebody in handcuffs? Everything Hillary Clinton did to erase those emails. And the FISA court abuse. I’m not satisfied. You know, the judges should have paid the price for that. Everyone involved in that food chain of the FISA court abuse should have been fired at a minimum. And maybe one person went to jail, as I recall that.
“So here we are. This is the next chapter of the FISA court abuse, and I think that’s what gives this story legs is… you dove into that story. I dove into that story, saying, my gosh, how did they do this? How did they fall for this, I mean, without orchestrating it? I sure hope so. I’m not a person to overpromise and underdeliver. I do think that Pam Bondi is serious. She would love to throw someone in jail. And I have a feeling Tulsi Gabbard would as well.”

MIL OSI USA News –

July 24, 2025

MIL-OSI Canada: New and Enhanced Health care Positions Announced to Strengthen Rural and Remote Services Across Saskatchewan

Source: Government of Canada regional news

Released on July 23, 2025

Positions Funded by Saskatchewan Health Authority Administrative Leadership Reduction Will Benefit 30 Communities

The Government of Saskatchewan and the Saskatchewan Health Authority (SHA) are adding 77 new and enhanced permanent full-time positions to benefit 30 rural and remote communities. These health care positions will improve emergency and acute care services, reduce service disruptions and continue building a more stable health workforce across Saskatchewan.

These enhancements build on the success of previous rural and remote staffing stabilization efforts that, since 2022, have added 315 new and enhanced positions as part of the provincial Health Human Resources Action Plan. The additional 77 positions will focus on communities that continue to experience service disruptions or have faced ongoing staffing challenges.

“Adding Registered Nurses, Licensed Practical Nurses, Medical Radiation Technologists and other positions that deliver hands-on patient care reflect the shared commitment of the Government of Saskatchewan and SHA to ensure Saskatchewan residents have seamless access to care, as close to home as possible,” Health Minister Jeremy Cockrill said. “The SHA has closely scrutinized their costs and identified savings that will help fund these essential positions and provide positive care to patients in communities stretching across the province.”

The positions will be funded through $6.2 million in annual savings resulting from the SHA’s recent restructuring of out-of-scope administrative leadership. Announced on June 12, 2025, the SHA’s administrative leadership restructuring effort achieved $10.4 million in total annual efficiencies by reducing 26 senior out-of-scope leadership positions, along with additional reductions in corporate, management and support roles. The SHA has already directed $4.2 million of these savings toward the creation of 27 new and 20 enhanced Clinical Manager positions in 45 rural and northern communities, strengthening on-site leadership and improving local oversight of care delivery.

“This investment reflects our ongoing focus on strengthening care at the local level by placing permanent health care professionals in communities where they are needed most,” Saskatchewan Health Authority COO Derek Miller said. “By stabilizing staffing and reducing service disruptions, we are helping ensure residents receive reliable access to high-quality care.”

The 77 positions include a range of clinical roles such as Registered Nurses (RNs), Registered Psychiatric Nurses (RPNs), Licensed Practical Nurses (LPNs), Combined Lab and X-ray Technicians (CLXTs), Medical Radiation Technologists (MRTs) and Phlebotomists. These roles will either create new permanent full-time positions or convert longstanding part-time vacancies into permanent full-time roles. This will support improved recruitment and retention of positions, reduce reliance on contract staff and promote more consistent emergency department coverage.

Past stabilization efforts have demonstrated measurable progress in reducing service disruptions in rural and remote areas.

“This is the latest progressive step forward in our plans to strengthen rural and northern health care teams that are making a real difference to the people of Saskatchewan,” Rural and Remote Health Minister Lori Carr said. “Efforts include the Saskatchewan Rural and Remote Recruitment Incentive, adding several hundred new and enhanced positions in over 70 communities, implementing the Virtual Physician program, and expansion of Point-of-Care Lab Testing. Thanks to these initiatives, rural and remote communities saw a 28 per cent reduction in service disruption days. In the past 16-months, Virtual Physician coverage and Point-of-Care Lab Testing helped prevent more than 2,700 service disruptions.”

Many of the new positions will be eligible to apply for the Saskatchewan Rural and Remote Recruitment Incentive (RRRI), which provides up to $50,000 over three years with a return in service agreement. Since its launch in 2022, the RRRI has supported the hiring of more than 400 health professionals in approximately 70 communities, resulting in reduced vacancies, improved staffing levels and greater service stability across the province.

Positions will be introduced in the following communities: Arcola, Assiniboia, Broadview, Canora, Estevan, Hudson Bay, Humboldt, Kamsack, Kerrobert, Kindersley, Kipling, La Ronge, Leader, Lloydminster, Maple Creek, Melville, Moose Jaw, Moosomin, Nipawin, North Battleford, Outlook, Porcupine Plain, Prince Albert, Redvers, Rosetown, Shaunavon, Shellbrook, Unity, Wadena and Weyburn.

These new positions are part of the ongoing implementation of the provincial Health Human Resources Action Plan, launched in 2022 to recruit, train, incentivize and retain Saskatchewan’s health workforce. The Government of Saskatchewan and the SHA remain committed to working together to enhance the delivery of health services in rural and remote communities.

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For more information, contact:

MIL OSI Canada News –

July 24, 2025

MIL-OSI USA: Urgent: Take action to protect Tennessee Valley Authority from privatization

Source: US International Brotherhood of Boilermakers

Breaking News

Since 1933, the Boilermakers have been working with the Tennessee Valley Authority (TVA) to build and maintain the infrastructure that powers the South. What began as a New Deal hydroelectric-focused endeavor has evolved over the past 90 years to coal, natural gas, nuclear and a planned, first-in-the-nation nuclear fusion generation facility. The generating assets within the TVA are diverse and efficient, delivering power to millions of southern households across seven states, powering the southern economy and stabilizing the national electric grid. TVA is a federally owned power authority that has been operating in partnership with the IBB for nearly 100 years, producing millions of man-hours for generations.

Since the Obama administration, several unsuccessful attempts have been made to privatize TVA. There are strong rumors that the Trump administration is considering privatization of TVA, meaning they would sell off the generating assets and infrastructure to the highest bidder, jeopardizing millions of Boilermaker man-hours. Additionally, privatizing TVA’s assets would cost families who live in the TVA jurisdiction an estimated additional $50 a month on their utility bill—a cost most working families cannot afford.

Below is the Boilermakers’ official statement urging against privatization of TVA. Boilermakers are strongly encouraged to contact their U.S. Senators using this action page link, which can and should be shared widely. The link will take you to an easy form that will automatically contact your Senator with a letter. It only takes a minute. This will help Boilermakers working on TVA projects and remind Washington that Boilermakers power America.

Boilermakers’ official statement on privatization of the Tennessee Valley Authority

Kansas City, Mo. (July 23, 2025) — Following is the official statement of the International Brotherhood of Boilermakers, issued by International President Timothy Simmons, regarding U.S. Senate consideration of privatization of the Tennessee Valley Authority

We urge the Senate to slow down any attempt to privatize the Tennessee Valley Authority, as any such effort would have devastating effects across the South and our nation. Through the hard work of thousands of Boilermakers, TVA has been efficiently and effectively powering the South for over 90 years, building and maintaining a diverse portfolio of power generation assets across seven states. Disrupting TVA’s service to the South would, in turn, disrupt the nation, stalling out our ability to meet increasing power demands further stressed by the need to support the ever-evolving AI technology sector. In its current practice, TVA generates power that is affordable for every family and stabilizes the nation’s power grid. This is a classic case of “if it’s not broken, don’t fix it.”

All Boilermakers are encouraged to contact their U.S. Senators using this action link.

View the full statement PDF

MIL OSI USA News –

July 24, 2025

MIL-OSI: Lake Shore Bancorp, Inc. Announces Second Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

DUNKIRK, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (the “Company”) (NASDAQ: LSBK), the new holding company for Lake Shore Bank (the “Bank”), reported unaudited net income of $1.9 million, or $0.34 per diluted share, for the second quarter of 2025 compared to net income of $1.1 million, or $0.19 per diluted share, for the second quarter of 2024. For the first six months of 2025, the Company reported unaudited net income of $3.0 million, or $0.53 per diluted share, as compared to $2.1 million, or $0.36 per diluted share, for the first six months of 2024. The Company’s financial performance for the second quarter of 2025 was positively impacted by an increase in net interest income and non-interest income along with a decrease in non-interest expenses as a result of strategic balance sheet management, continuing efforts to optimize operating expenses, and reducing reliance on wholesale funding.

On July 18, 2025, the Company announced that the conversion of Lake Shore, MHC from mutual to stock form, the related stock offering by the Company and the Bank’s conversion from a federal savings bank to a New York chartered commercial bank was completed. As a result of the subscription offering, the Company sold a total of 4,950,460 shares of its common stock (approximately the midpoint of the offering range) at a price of $10.00 per share for total gross proceeds of $49.5 million. Earnings per share and other share information disclosed throughout do not reflect the effect of the Company’s conversion and related stock offering.

“I am pleased with the Company’s Second Quarter and Six Month 2025 financial results. The strategic actions taken throughout the past two years are beginning to bear quality earnings momentum,” stated Kim C. Liddell, President, CEO, and Director. “I am grateful for our depositors’ support as we raised $49.5 million to provide the Company with capital needed to prudently and strategically grow. We are excited about what the future holds.”

Second Quarter 2025 and Year-to-Date Financial Highlights:

Net income increased to $1.9 million during the second quarter of 2025, an increase of $803,000, or 72.0%, when compared to the second quarter of 2024. Net income was positively impacted by an increase in net interest income of $916,000, or 17.6%, when compared to the second quarter of 2024;
Net income increased to $3.0 million during the first half of 2025, an increase of $845,000, or 39.7%, when compared to the first half of 2024. Net income was positively impacted by an increase in net interest income of $1.2 million, or 12.1%, when compared to the first half of 2024;
Net interest margin increased to 3.84% during the second quarter of 2025, an increase of 35 basis points when compared to net interest margin of 3.49% during the first quarter of 2025 and an increase of 70 basis points when compared to net interest margin of 3.14% during the second quarter of 2024;
Reduced reliance on wholesale funding by repaying $8.3 million of Federal Home Loan Bank of New York (“FHLBNY”) borrowings during the first half of 2025 with only $2.0 million outstanding as of June 30, 2025;
At June 30, 2025 and December 31, 2024, the Company’s percentage of uninsured deposits to total deposits was 18.1% and 13.5%, respectively. Excluding the $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering in the second quarter of 2025, the Company’s uninsured deposits to total deposits totaled 12.0% at June 30, 2025;
Book value per share increased 3.0% to $16.13 per share at June 30, 2025, as compared to $15.67 per share at December 31, 2024;
Non-performing assets as a percentage of total assets decreased to 0.24% at June 30, 2025, as compared to 0.55% at December 31, 2024, primarily due to a decrease in non-performing assets of $2.0 million, or 53.3%; and
The Bank’s capital position remains “well capitalized” with a Tier 1 Leverage ratio of 14.37% and a Total Risk-Based Capital ratio of 18.94% at June 30, 2025.

Net Interest Income

Net interest income for the second quarter of 2025 increased by $657,000, or 12.0%, to $6.1 million as compared to $5.5 million for the first quarter of 2025 and increased $916,000, or 17.6%, as compared to $5.2 million for the second quarter of 2024. Net interest margin and interest rate spread were 3.84% and 3.32%, respectively, for the second quarter of 2025 as compared to 3.49% and 2.94%, respectively, for the first quarter of 2025 and 3.14% and 2.56%, respectively, for the second quarter of 2024.

Net interest income for the first half of 2025 increased $1.2 million, or 12.1%, to $11.6 million as compared to $10.3 million for the first half of 2024. Net interest margin and interest rate spread were 3.67% and 3.13%, respectively, for the first half of 2025 as compared to 3.12% and 2.55%, respectively for the first half of 2024.

Interest income for the second quarter of 2025 was $9.1 million, an increase of $740,000, or 8.8%, compared to $8.4 million for the first quarter of 2025, and an increase of $353,000, or 4.0%, compared to $8.8 million for the second quarter of 2024.

The increase in interest income from the prior quarter was primarily due to an increase in interest earned on loans of $717,000, or 9.2%, with an increase in the average yield on loans of 44 basis points. The increase in the average yield on loans was positively impacted by the recognition of $461,000 of interest income associated with the payoff of three loans on nonaccrual status during the second quarter of 2025. Interest earned on securities decreased by $13,000, or 3.4%, due to a $1.6 million decrease in the average balance of securities during the second quarter of 2025 as compared to the prior quarter.

The increase in interest income from the prior year quarter was primarily due to an increase in interest earned on loans of $776,000, or 10.1%, with an increase in the average yield on loans of 54 basis points. The increase in the average yield on loans was positively impacted by the recognition of $461,000 of interest income associated with the payoff of three loans on nonaccrual status during the second quarter of 2025. The increase was partially offset by a $377,000, or 58.3% decrease in interest earned on interest-earning deposits resulting primarily from a decrease in the average balance of interest earning deposits of $25.5 million, or 48.4%. The decrease in the average balance of interest earning deposits from the prior year was primarily due to the repayment of FHLBNY borrowings during the period. Additionally, during the second quarter of 2025 as compared to the same period in 2024, there was a $46,000 decrease in interest earned on securities due to decreases in the average balance and average yield of securities of $2.8 million, or 4.7%, and 19 basis points, respectively.

Interest income for the first half of 2025 was $17.5 million, an increase of $111,000, or 0.6%, compared to $17.4 million, for the first half of 2024. This increase was primarily due to an increase in the interest earned on loans of $943,000, or 6.2%, with a 38 basis points increase in the average yield on loans. This was partially offset by a $742,000, or 59.6% decrease in interest earned on interest earning deposits resulting from a $23.0 million, or 47.5% decrease in the average balance of interest-earning deposits and a 119 basis points decrease in the average yield of interest earning deposits.

Interest expense for the second quarter of 2025 was $3.0 million, an increase of $83,000, or 2.9%, from $2.9 million in the first quarter of 2025, and a decrease of $563,000, or 15.9%, from $3.5 million for the second quarter of 2024.

The increase in interest expense when compared to the previous quarter was primarily due to an increase in the average balance of interest-bearing liabilities of $13.1 million, or 2.7% which was mostly driven by an increase in the average balance of time deposits of $8.3 million, or 4.0%. During the second quarter of 2025 as compared to the previous quarter, interest expense on deposits increased by $106,000, or 3.7%, due to a $15.5 million, or 3.2% increase in the average balance of deposits and a 1 basis point increase in the average interest rate paid on deposit accounts. The average interest rate paid on deposit accounts was impacted by a 22 basis points increase in the average interest rate paid on money market accounts, partially offset by an 11 basis points decrease in the average interest rate paid on time deposits. Average interest-bearing deposit balances were $493.3 million, a 3.2% increase during the second quarter of 2025 when compared to the previous quarter due to an increase in the average balance of all deposit categories. Interest expense on borrowed funds and other interest-bearing liabilities decreased by $23,000 primarily due to a $2.4 million, or 38.0%, decrease in the average balance of borrowed funds and other interest-bearing liabilities as the result of the repayment of $2.0 million of our FHLBNY borrowings during the second quarter of 2025.

The decrease in interest expense when compared to the prior year quarter was primarily due to a 32 basis points decrease in average interest rate paid on interest-bearing liabilities and a $24.7 million, or 4.7%, decrease in the average balance of interest-bearing liabilities. During the second quarter of 2025 as compared to the same period in 2024, interest expense on deposits decreased by $423,000, or 12.5%, due to a 33 basis points decrease in the average interest rate paid on deposit accounts and a $3.2 million, or 0.6%, decrease in the average balance of deposits. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates, time deposit repricing, and a marginal shift in deposit composition. Average interest-bearing deposit balances decreased 0.6% during the second quarter of 2025 when compared to the second quarter of 2024 due to a decrease in all deposit categories except money market accounts. During the second quarter of 2025, interest expense on borrowed funds and other interest-bearing liabilities decreased by $140,000, or 79.1%, compared to the second quarter of 2024, primarily due to a $21.4 million, or 84.7%, decrease in average borrowed funds and other interest-bearing liabilities outstanding due to the repayment of $25.0 million of FHLBNY borrowings during 2024 and $8.3 million during the first half of 2025.

Interest expense for the first half of 2025 was $5.9 million, a decrease of $1.1 million, or 16.2%, from $7.0 million for the first half of 2024. The decrease in interest expense was primarily due to a 29 basis points decrease in average interest rate paid on interest-bearing liabilities and a decrease in the average balance of interest-bearing liabilities of $32.2 million, or 6.2%. During the first half of 2025, there was a $825,000 decrease in interest expense on total deposit accounts when compared to the first half of 2024 due to a 29 basis points decrease in the average interest rate paid on total deposits along with a decrease in average total deposit balance of $9.9 million, or 2.0%. The decrease in the average interest rate paid on deposit accounts was primarily due to the decrease in market interest rates, time deposit repricing, and a marginal shift in deposit composition. Interest expense on borrowed funds and other interest-bearing liabilities also decreased $312,000, or 76.3%, during the first half of 2025 when compared to the first half of 2024, primarily due to a $22.4 million, or 81.6%, decrease in the average balance of borrowed funds and other interest-bearing liabilities outstanding as we reduced our FHLBNY borrowings.

Non-Interest Income

Non-interest income was $800,000 for the second quarter of 2025, an increase of $76,000, or 10.5%, as compared to $724,000 for the first quarter of 2025, and an increase of $62,000, or 8.4%, as compared to $738,000 for the second quarter of 2024. The increase from the prior quarter was primarily due to a $36,000 increase in service charges and fees, a $19,000 increase in unrealized gain on equity securities, and a $14,000 increase in debit card fees during the second quarter of 2025. The increase from the prior year quarter was primarily due to a $65,000 increase in unrealized gain on equity securities and a $23,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024, partially offset by a $14,000 decrease in service charges and fees.

Non-interest income was $1.5 million for the first half of 2025, an increase of $79,000, or 5.5%, as compared to the first half of 2024. The increase was primarily due to a $100,000 increase in unrealized gain on equity securities and a $46,000 increase in earnings on annuity assets in connection with the purchase of annuities during the fourth quarter of 2024, partially offset by a $42,000 decrease in service charges and fees and a $17,000 decrease in debit card fees.

Non-Interest Expense

Non-interest expense was $4.6 million for the second quarter of 2025, a decrease of $253,000, or 5.2%, as compared to $4.9 million for the first quarter of 2025, and a decrease of $272,000, or 5.6%, as compared to $4.9 million for the second quarter of 2024. The decrease from the prior quarter was primarily due to a decrease in professional services expense of $63,000, or 20.1%, along with decreases in salaries and employee benefits of $61,000, or 2.1%, and occupancy and equipment of $61,000, or 9.0%. The decrease from the second quarter of 2024 was primarily related to a decrease in FDIC insurance of $210,000, or 73.9%, and a decrease in professional services expense of $146,000, or 36.8%, partially offset by an increase in salaries and employee benefits of $198,000, or 7.5%.

Non-interest expense was $9.5 million for the first half of 2025, a decrease of $389,000, or 3.9%, as compared to $9.9 million for the first half of 2024. The decrease related primarily to a decline in FDIC insurance expense of $417,000, or 74.1%, due to a decrease in premium assessments related to remediating regulatory matters. As a result of management’s efforts to decrease the use of external consultants and optimize operating expenses, professional services decreased by $159,000, or 22.0% and occupancy and equipment expenses decreased by $93,000, or 6.7%. These decreases were partially offset by an increase in salaries and employee benefits of $355,000, or 6.6%, and a $17,000, or 1.9%, increase in data processing primarily due to an increase in costs related to core system maintenance when compared to the prior year period.

Income Tax Expense

Income tax expense was $378,000 for the second quarter of 2025, an increase of $172,000, or 83.5%, as compared to $206,000 for the first quarter of 2025, and an increase of $162,000, or 75.0%, as compared to $216,000 for the second quarter of 2024. The increase in income tax expense from the prior quarter and prior year quarter was primarily related to the increase in pre-tax income earned during the current quarter, and an increase in the effective tax rate during the second quarter of 2025. The effective tax rate was 16.5% for the second quarter of 2025 as compared to 16.3% for the first quarter of 2025 and 16.2% for the second quarter of 2024.

Income tax expense was $585,000 for the first half of 2025, an increase of $186,000, or 46.6%, as compared to $399,000 for the first half of 2024. The increase in income tax expense from the first half of 2024 was primarily related to the increase in pre-tax income earned during the first half of 2025 and an increase in the effective tax rate during the first half of 2025. The effective tax rate was 16.4% for the first half of 2025 and 15.8% for the first half of 2024.

Credit Quality

The Company’s allowance for credit losses on loans was $5.2 million as of June 30, 2025 as compared to $5.1 million as of December 31, 2024. The Company’s allowance for credit losses on unfunded commitments was $323,000 as of June 30, 2025 as compared to $314,000 as of December 31, 2024. Non-performing assets as a percent of total assets decreased to 0.24% at June 30, 2025 as compared to 0.55% at December 31, 2024, primarily due to a decrease in non-performing assets of $2.0 million, or 53.3%. Contributing to this decrease was one commercial relationship representing two loans with a total amortized cost of $1.2 million being sold at foreclosure and one nonaccrual home equity loan with an amortized cost of $545,000 being paid off in full during the second quarter of 2025. The Company’s allowance for credit losses on loans as a percent of loans at amortized cost was 0.93% at June 30, 2025 and December 31, 2024.

The Company recorded no provision for credit losses during the second quarter of 2025 and recorded a provision for credit losses of $48,000 for the first half of 2025. Of this amount, $39,000 related to the loan portfolio and $9,000 related to the reserve for unfunded commitments. The increase in the allowance for credit losses on loans and unfunded commitments and the corresponding provision for credit losses recognized during the first half of 2025 was the result of an increase in the calculation of expected quantitative losses inclusive of forecasted economic trends, primarily related to the residential mortgage loan pool, partially offset by a decrease in the calculation of expected losses for the commercial loan pool.

Balance Sheet Summary

Total assets at June 30, 2025 were $734.8 million, a $49.3 million increase, or 7.2%, as compared to $685.5 million at December 31, 2024. Cash and cash equivalents increased by $42.2 million, or 127.5%, from $33.1 million at December 31, 2024 to $75.4 million at June 30, 2025. The increase in cash and cash equivalents was primarily due to an increase in interest earning deposits of $42.0 million, or 138.1%, as the result of $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering in the second quarter of 2025. Securities were $55.3 million at June 30, 2025 as compared to $56.5 million at December 31, 2024 with the decrease primarily due to repayments during the first half of 2025. Net loans receivable at June 30, 2025 and December 31, 2024 were $552.4 million and $544.6 million, respectively. Total deposits at June 30, 2025 were $627.5 million, an increase of $54.5 million, or 9.5%, compared to $573.0 million at December 31, 2024. The increase in deposits was primarily due to the collection of $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering in the second quarter of 2025. Total borrowings decreased to $2.0 million at June 30, 2025, a decrease of $8.3 million, or 80.5%, as compared to $10.3 million as of December 31, 2024.

Stockholders’ equity at June 30, 2025 was $92.9 million, an increase $3.0 million, or 3.4%, compared to $89.9 million at December 31, 2024. The increase in stockholders’ equity was primarily attributed to $3.0 million in net income earned during the first half of 2025.

About Lake Shore

Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. Lake Shore Bancorp’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about Lake Shore Bancorp is available at www.mylsbank.com.

Safe-Harbor

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about the Company’s and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, public health issues, geopolitical conflict, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

Source: Lake Shore Bancorp, Inc.
Category: Financial

Investor Relations/Media Contact
Kim C. Liddell
President, CEO, and Director
Lake Shore Bancorp, Inc.
31 East Fourth Street
Dunkirk, New York 14048
(716) 366-4070 ext. 1012

Selected Financial Condition Data

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

Total assets	$	734,838	$	685,504
Cash and cash equivalents		75,367		33,131
Securities, at fair value		55,323		56,495
Loans receivable, net		552,389		544,620
Deposits		627,499		572,978
Long-term debt		2,000		10,250
Stockholders’ equity		92,884		89,868

Statements of Income

		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2025			2024			2025			2024
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Interest income	$	9,107		$	8,754		$	17,474		$	17,363
Interest expense		2,985			3,548			5,887			7,024
Net interest income		6,122			5,206			11,587			10,339
Provision (credit) for credit losses		–			(285	)		48			(637	)
Net interest income after provision (credit) for credit losses		6,122			5,491			11,539			10,976
Total non-interest income		800			738			1,524			1,445
Total non-interest expense		4,625			4,897			9,503			9,892
Income before income taxes		2,297			1,332			3,560			2,529
Income tax expense		378			216			585			399
Net income	$	1,919		$	1,116		$	2,975		$	2,130
Basic and diluted earnings per share	$	0.34		$	0.19		$	0.53		$	0.36

Selected Financial Ratios
Return on average assets⁽¹⁾		1.11	%		0.63	%		0.87	%		0.60	%
Return on average equity⁽¹⁾		8.37	%		5.19	%		6.52	%		4.94	%
Average interest-earning assets to average interest-bearing liabilities		128.12	%		127.00	%		128.81	%		126.67	%
Interest rate spread⁽¹⁾		3.32	%		2.56	%		3.13	%		2.55	%
Net interest margin⁽¹⁾		3.84	%		3.14	%		3.67	%		3.12	%
Efficiency ratio		66.82	%		82.39	%		72.48	%		83.94	%

(1) Annualized

Average Balance Sheets, Interest, and Rates (Quarterly Comparison)

	For the Three Months Ended						For the Three Months Ended
	June 30, 2025						June 30, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾		Balance		Expense		Rate⁽²⁾
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits	$	27,162	$	270	3.98	%	$	52,618	$	647	4.92	%
Securities⁽¹⁾		56,222		368	2.62	%		58,988		414	2.81	%
Loans, including fees		553,550		8,469	6.12	%		551,091		7,693	5.58	%
Total interest-earning assets		636,934		9,107	5.72	%		662,697		8,754	5.28	%
Other assets		52,724						49,661
Total assets	$	689,658					$	712,358

Interest-bearing liabilities
Demand & NOW accounts	$	64,337	$	15	0.09	%	$	67,167	$	16	0.10	%
Money market accounts		153,547		955	2.49	%		140,759		947	2.69	%
Savings accounts⁽³⁾		58,286		9	0.06	%		60,528		10	0.07	%
Time deposits		217,101		1,969	3.63	%		228,023		2,398	4.21	%
Borrowed funds & other interest-bearing liabilities		3,869		37	3.83	%		25,313		177	2.80	%
Total interest-bearing liabilities		497,140		2,985	2.40	%		521,790		3,548	2.72	%
Other non-interest bearing liabilities		100,826						104,529
Stockholders’ equity		91,692						86,039
Total liabilities & stockholders’ equity	$	689,658					$	712,358
Net interest income			$	6,122					$	5,206
Interest rate spread					3.32	%					2.56	%
Net interest margin					3.84	%					3.14	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.03% and 3.20% for the three months ended June 30, 2025 and 2024, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
(3) Included within savings accounts as of June 30, 2025 is $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering. The average rate paid on these funds was 5 basis points and the collection of these funds resulted in a $3.8 million increase in the average balance of savings accounts during the three months ended June 30, 2025.

Average Balance Sheets, Interest, and Rates (Year-to-Date Comparison)

	For the Six Months Ended						For the Six Months Ended
	June 30, 2025						June 30, 2024
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾		Balance		Expense		Rate⁽²⁾
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits	$	25,372	$	504	3.97	%	$	48,329	$	1,246	5.16	%
Securities⁽¹⁾		57,008		748	2.62	%		60,358		838	2.78	%
Loans, including fees		549,578		16,222	5.90	%		553,621		15,279	5.52	%
Total interest-earning assets		631,958		17,474	5.53	%		662,308		17,363	5.24	%
Other assets		52,193						50,263
Total assets	$	684,151					$	712,571

Interest-bearing liabilities
Demand & NOW accounts	$	63,565	$	30	0.09	%	$	68,460	$	33	0.10	%
Money market accounts		153,116		1,822	2.38	%		140,277		1,913	2.73	%
Savings accounts⁽³⁾		55,927		18	0.06	%		61,606		21	0.07	%
Time deposits		212,975		3,920	3.68	%		225,101		4,648	4.13	%
Borrowed funds & other interest-bearing liabilities		5,046		97	3.84	%		27,434		409	2.98	%
Total interest-bearing liabilities		490,629		5,887	2.40	%		522,878		7,024	2.69	%
Other non-interest bearing liabilities		102,202						103,414
Stockholders’ equity		91,320						86,279
Total liabilities & stockholders’ equity	$	684,151					$	712,571
Net interest income			$	11,587					$	10,339
Interest rate spread					3.13	%					2.55	%
Net interest margin					3.67	%					3.12	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.03% and 3.16% for the six months ended June 30, 2025 and 2024, respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
(3) Included within savings accounts as of June 30, 2025 is $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering. The average rate paid on these funds was 5 basis points and the collection of these funds resulted in a $1.9 million increase in the average balance of savings accounts during the six months ended June 30, 2025.

Average Balance Sheets, Interest, and Rates (Prior Quarter Comparison)

	For the Three Months Ended						For the Three Months Ended
	June 30, 2025						March 31, 2025
	Average		Interest Income/		Yield/		Average		Interest Income/		Yield/
	Balance		Expense		Rate⁽²⁾		Balance		Expense		Rate⁽²⁾
	(Unaudited)
	(Dollars in thousands)
Interest-earning assets:
Interest-earning deposits	$	27,162	$	270	3.98	%	$	23,562	$	234	3.97	%
Securities⁽¹⁾		56,222		368	2.62	%		57,804		381	2.64	%
Loans, including fees		553,550		8,469	6.12	%		545,561		7,752	5.68	%
Total interest-earning assets		636,934		9,107	5.72	%		626,927		8,367	5.34	%
Other assets		52,724						51,656
Total assets	$	689,658					$	678,583

Interest-bearing liabilities
Demand & NOW accounts	$	64,337	$	15	0.09	%	$	62,784	$	15	0.10	%
Money market accounts		153,547		955	2.49	%		152,680		867	2.27	%
Savings accounts⁽³⁾		58,286		9	0.06	%		53,541		9	0.07	%
Time deposits		217,101		1,969	3.63	%		208,804		1,951	3.74	%
Borrowed funds & other interest-bearing liabilities		3,869		37	3.83	%		6,237		60	3.85	%
Total interest-bearing liabilities		497,140		2,985	2.40	%		484,046		2,902	2.40	%
Other non-interest bearing liabilities		100,826						103,593
Stockholders’ equity		91,692						90,944
Total liabilities & stockholders’ equity	$	689,658					$	678,583
Net interest income			$	6,122					$	5,465
Interest rate spread					3.32	%					2.94	%
Net interest margin					3.84	%					3.49	%

(1) The tax equivalent adjustment for bank qualified tax exempt municipal securities, using a federal statutory rate of 21%, results in rates of 3.03% and 3.04% for the three months ended June 30, 2025 and March 31, 2025 respectively. Yields above are not presented on a tax equivalent basis.
(2) Annualized.
(3) Included within savings accounts as of June 30, 2025 is $43.7 million of funds collected and held on deposit in a segregated account in connection with the Company’s stock offering. The average rate paid on these funds was 5 basis points and the collection of these funds resulted in a $3.8 million increase in the average balance of savings accounts during the three months ended June 30, 2025.

Selected Quarterly Financial Data

	As of or For the Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
	(Unaudited)
	(Dollars in thousands, except per share amounts)
Selected Financial Condition Data:
Total assets	$	734,838		$	688,996		$	685,504		$	697,596		$	711,042
Cash and cash equivalents		75,367			30,428			33,131			49,981			60,987
Securities, at fair value		55,323			55,801			56,495			58,782			57,309
Loans receivable, net		552,389			551,640			544,620			539,005			544,337
Deposits		627,499			582,730			572,978			587,563			589,395
Long-term debt		2,000			4,000			10,250			10,250			23,250
Stockholders’ equity		92,884			90,662			89,868			89,877			86,932

Condensed Statements of Income:
Interest income	$	9,107		$	8,367		$	8,590		$	8,851		$	8,754
Interest expense		2,985			2,902			3,249			3,468			3,548
Net interest income		6,122			5,465			5,341			5,383			5,206
Provision (credit) for credit losses		–			48			(613	)		(229	)		(285	)
Net interest income after provision (credit) for credit losses		6,122			5,417			5,954			5,612			5,491
Total non-interest income		800			724			1,068			791			738
Total non-interest expense		4,625			4,878			5,275			4,813			4,897
Income before income taxes		2,297			1,263			1,747			1,590			1,332
Income tax expense		378			206			278			258			216
Net income	$	1,919		$	1,057		$	1,469		$	1,332		$	1,116
Basic and diluted earnings per share	$	0.34		$	0.19		$	0.26		$	0.24		$	0.19

Selected Financial Ratios:
Return on average assets⁽¹⁾		1.11	%		0.62	%		0.85	%		0.76	%		0.63	%
Return on average equity⁽¹⁾		8.37	%		4.65	%		6.52	%		6.03	%		5.19	%
Average interest-earning assets to average interest-bearing liabilities		128.12	%		129.52	%		129.46	%		128.81	%		127.00	%
Interest rate spread⁽¹⁾		3.32	%		2.94	%		2.72	%		2.67	%		2.56	%
Net interest margin⁽¹⁾		3.84	%		3.49	%		3.31	%		3.28	%		3.14	%
Efficiency ratio		66.82	%		78.82	%		82.30	%		77.96	%		82.39	%

Asset Quality Ratios:
Non-performing loans as a percent of loans at amortized cost		0.32	%		0.62	%		0.69	%		0.74	%		0.73	%
Non-performing assets as a percent of total assets		0.24	%		0.50	%		0.55	%		0.57	%		0.56	%
Allowance for credit losses on loans as a percent of loans at amortized cost		0.93	%		0.93	%		0.93	%		1.01	%		1.08	%
Allowance for credit losses on loans as a percent of non-performing loans		290.53	%		148.89	%		134.91	%		137.03	%		148.20	%

Share Information:
Common stock, number of shares outstanding		5,759,172			5,760,272			5,735,226			5,737,036			5,737,036
Treasury stock, number of shares held		1,077,342			1,076,242			1,101,288			1,099,478			1,099,478
Book value per share	$	16.13		$	15.74		$	15.67		$	15.67		$	15.15
Tier 1 leverage ratio (Bank-only)		14.37	%		14.31	%		13.83	%		13.37	%		13.02	%
Total risk-based capital ratio (Bank-only)		18.94	%		18.67	%		18.79	%		18.85	%		18.64	%

(1) Annualized

The MIL Network –

July 24, 2025

MIL-OSI: Hanover Bancorp, Inc. Reports Second Quarter 2025 Results Highlighted by Strong Demand Deposit Growth, Continued Margin Expansion and Its Inclusion in the Russell 2000 Index

Source: GlobeNewswire (MIL-OSI)

Second Quarter Performance Highlights

Net Income: Net income for the quarter ended June 30, 2025 totaled $2.4 million or $0.33 per diluted share (including Series A preferred shares).
Pre-Provision Net Revenue: Pre-provision net revenue was $5.7 million resulting in a return on average assets of 1.04% for the quarter ended June 30, 2025 which was the highest level since the first quarter of 2023.
Net Interest Income: Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $0.2 million, or 1.13% from the quarter ended March 31, 2025 and $1.5 million, or 11.69%, from the quarter ended June 30, 2024.
Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended June 30, 2025 increased to 2.76% from 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024.
Demand Deposit Growth: Demand deposits increased $28.1 million, or 13.03%, from March 31, 2025 and $32.0 million, or 15.12%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals.
Strong Liquidity Position: At June 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5 million, or approximately 274% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June 30, 2025.
Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending.
Asset Quality: At June 30, 2025, the Bank’s asset quality metrics remained solid with non-performing loans totaling $12.7 million, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, as of December 31, 2024.
Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island.
Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

Earnings Summary for the Quarter Ended June 30, 2025

The Company reported net income for the quarter ended June 30, 2025 of $2.4 million or $0.33 per diluted share (including Series A preferred shares), versus $0.8 million (after giving effect to an allowance for credit loss (“ACL”) on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss (“CECL”) model) or $0.11 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter ended June 30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024.

The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense. The increase in compensation and benefits expense in the second quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port Jefferson branch and additions to the C&I Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company’s effective tax rate was 27.8% in the second quarter of 2025 and 27.2% in the comparable 2024 quarter. We expect a normalized run rate of 25.0% for the remainder of the year.

Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $1.5 million, or 11.69% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.76% in the 2025 quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025 quarter from 4.48% in the comparable 2024 quarter, a decrease of 54 basis points. This decrease was partially offset by a 24 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 quarter from 6.22% in the second quarter of 2024. Net interest income on a linked quarter basis increased $0.2 million or 1.13%, due to an 8 basis point increase in net interest margin resulting from a 7 basis point decrease in cost of interest-bearing liabilities, partially offset by a 3 basis point decrease on yield on interest earning assets.

Earnings Summary for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, the Company reported net income of $4.0 million or $0.53 per diluted share (including Series A preferred shares), versus $4.9 million or $0.66 per diluted share (including Series A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the six months ended June 30, 2025, versus net income of $4.9 million or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period.

The decrease in net income recorded for the six months ended June 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six months ended June 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 23.0% for the six months ended June 30, 2025 from 25.3% in the comparable 2024 period.

Net interest income was $29.4 million for the six months ended June 30, 2025, an increase of $3.2 million, or 12.38% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six months period from 4.41% in the comparable 2024 period, a decrease of 43 basis points. This decrease was partially offset by a 13 basis point decrease in the yield on interest earning assets to 5.99% in the 2025 period from 6.12% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our second quarter performance, reflects a number of high notes, including increased Pre-Provision Net Revenue of $5.7 million, strong non-interest bearing deposit growth of $28.1 million, underscoring the success of our C&I and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell 2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.”

Balance Sheet Highlights

Total assets were $2.31 billion at June 30, 2025 and December 31, 2024. Total securities available for sale at June 30, 2025 were $102.6 million, an increase of $18.9 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds.

Total deposits were $1.95 billion at June 30, 2025 and December 31, 2024. Total deposits increased $9.4 million or 0.48% from June 30, 2024. Demand deposits increased $43.8 million or 21.93% from June 30, 2024 and $32.0 million, or 15.12%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at June 30, 2025 from 102% at December 31, 2024.

The Company had $517.4 million in total municipal deposits at June 30, 2025, at a weighted average rate of 3.67% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $452.6 million at a weighted average rate of 4.61% at June 30, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships.

Total borrowings at June 30, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 17 months, respectively. At June 30, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2025 and December 31, 2024.

Stockholders’ equity was $198.9 million at June 30, 2025 and compared to $196.6 million at December 31, 2024. Retained earnings increased by $2.5 million due primarily to net income of $4.0 million for the six months ended June 30, 2025, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2025 was 0.62% of total equity and was comprised of a $0.7 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.94 at June 30, 2025 compared to $23.86 at December 31, 2024.

Loan Portfolio

For the six months ended June 30, 2025, the Bank’s loan portfolio decreased $19.1 million to $1.97 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. On a linked quarter basis, net loans increased $5.8 million. At June 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $738.8 million, with an average loan balance of $489 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9 million at June 30, 2025. The Company’s loan pipeline with executed term sheets at June 30, 2025 is approximately $190.2 million, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities.

The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2 million in residential loans in the quarter ended June 30, 2025. During the quarters ended June 30, 2025 and 2024, the Company sold $23.7 million and $2.9 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.1 million, respectively.

During the quarters ended June 30, 2025 and 2024, the Company sold approximately $22.3 million and $28.0 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.8 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses.

Commercial Real Estate Statistics

A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.2 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027.

Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule										Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate			Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		7	$	8,609	$	1,230		5.29	%	2025		8	$	14,950	$	1,869		4.54	%
2026		36		117,249		3,257		3.66	%	2026		20		42,310		2,115		3.67	%
2027		70		185,157		2,645		4.41	%	2027		51		122,901		2,410		4.22	%
2028		16		21,310		1,332		6.20	%	2028		12		10,117		843		7.14	%
2029		6		4,924		821		7.70	%	2029		4		4,313		1,078		6.38	%
2030+		3		6,667		2,222		3.68	%	2030+		4		1,099		275		6.04	%
Fixed Rate		138		343,916		2,492		4.32	%	Fixed Rate		99		195,690		1,977		4.34	%
Floating Rate		2		347		174		9.50	%	Floating Rate		—		—		—		—	%
Total		140	$	344,263	$	2,459		4.33	%	Total		99	$	195,690	$	1,977		4.34	%

CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		25	$	33,503	$	1,340		7.28	%
2026		30		35,702		1,190		4.90	%
2027		89		156,924		1,763		4.86	%
2028		28		30,868		1,102		6.65	%
2029		4		2,336		584		7.04	%
2030+		15		8,999		600		6.46	%
Fixed Rate		191		268,332		1,405		5.45	%
Floating Rate		6		11,905		1,984		9.50	%
Total CRE-Inv.		197	$	280,237	$	1,423		5.62	%

Stabilized Multi-Family Pro Forma Stress Results

The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV.

Multi-Family Stabilized Rent Portfolio
DSCR Range	# Loans	Total O/S ($000’s omitted)		% of Total MF Portfolio		Current Weighted Average LTV		Projected Weighted Average LTV

< 1.0	10	$	18,153	3	%	61	%	95	%
1.0 < x < 1.2	24		69,751	13	%	65	%	74	%
1.2 < x < 1.3	20		34,897	6	%	62	%	67	%
1.3 < x < 1.5	15		38,547	7	%	63	%	61	%
1.5 < x < 2.0	18		25,805	5	%	58	%	53	%
x > 2.0	12		8,537	2	%	43	%	33	%
Total	99	$	195,690	36	%	62	%	67	%

As reflected above, the results show approximately 3%, or 10 loans totaling $18 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Additionally, approximately 97% or 89 loans totaling $178 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12 months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis.

Rental breakdown of Multi-Family portfolio

The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

Multi-Family Loan Portfolio – Loans by Rent Type
Rent Type	# of Notes		Outstanding Loan Balance		% of Total Multi-Family			Avg Loan Size		LTV			Current DSCR		Avg # of Units
			($000’s omitted)					($000’s omitted)

Market		140	$	344,263		64	%	$	2,459		61.8	%		1.41		11
Location
Manhattan		7	$	10,251		2	%	$	1,464		49.4	%		1.88		14
Other NYC		92	$	254,515		47	%	$	2,766		61.7	%		1.40		10
Outside NYC		41	$	79,497		15	%	$	1,939		63.9	%		1.36		14

Stabilized		99	$	195,690		36	%	$	1,977		61.8	%		1.44		12
Location
Manhattan		7	$	10,459		2	%	$	1,494		48.2	%		1.71		19
Other NYC		81	$	168,044		31	%	$	2,075		62.6	%		1.42		11
Outside NYC		11	$	17,187		3	%	$	1,562		63.1	%		1.54		14

Office Property Exposure

The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9 million, of which less than 1% is located in Manhattan. The pool has a 2.48x weighted average DSCR, a 53% weighted average LTV and less than $350,000 of exposure in Manhattan.

Asset Quality and Allowance for Credit Losses

The Bank’s asset quality metrics remain solid. At June 30, 2025, the Bank reported $12.7 million in non-performing loans compared to $16.4 million at December 31, 2024, a decrease of $3.7 million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June 2024 on an individually evaluated commercial loan. At June 30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December 31, 2024.

During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4 million (including $187 thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5 million were incurred during the quarter, of which $2.5 million is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June 30, 2025 allowance for credit losses was $21.6 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025 and 1.15% at December 31, 2024.

Net Interest Margin

The Bank’s net interest margin increased to 2.76% for the quarter ended June 30, 2025 compared to 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

About Hanover Community Bank and Hanover Bancorp, Inc.

Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

Non-GAAP Disclosure

This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

Forward-Looking Statements

This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Investor and Press Contact:
Lance P. Burke
Chief Financial Officer
(516) 548-8500


HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)

		June 30,		March 31,		December 31,
		2025		2025		2024
Assets
Cash and cash equivalents		$	164,535	$	160,234	$	162,857
Securities-available for sale, at fair value			102,636		93,197		83,755
Investments-held to maturity			3,594		3,671		3,758
Loans held for sale			10,593		16,306		12,404

Loans, net of deferred loan fees and costs			1,966,452		1,960,674		1,985,524
Less: allowance for credit losses			-21,571		-22,925		-22,779
Loans, net			1,944,881		1,937,749		1,962,745

Goodwill			19,168		19,168		19,168
Premises & fixed assets			14,388		14,511		15,337
Operating lease assets			10,890		8,484		8,337
Other assets			41,291		38,207		43,749
	Assets	$	2,311,976	$	2,291,527	$	2,312,110

Liabilities and stockholders’ equity
Core deposits		$	1,439,656	$	1,418,209	$	1,456,513
Time deposits			511,625		518,229		497,770
Total deposits			1,951,281		1,936,438		1,954,283

Borrowings			107,805		107,805		107,805
Subordinated debentures			24,716		24,702		24,689
Operating lease liabilities			11,565		9,144		9,025
Other liabilities			17,724		16,795		19,670
	Liabilities		2,113,091		2,094,884		2,115,472

Stockholders’ equity			198,885		196,643		196,638
	Liabilities and stockholders’ equity	$	2,311,976	$	2,291,527	$	2,312,110

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended				Six Months Ended
		6/30/2025		6/30/2024		6/30/2025		6/30/2024

Interest income		$	32,049	$	33,420	$	64,886	$	65,852
Interest expense			17,254		20,173		35,462		39,670
	Net interest income		14,795		13,247		29,424		26,182
Provision for credit losses			2,357		4,040		2,957		4,340
	Net interest income after provision for credit losses		12,438		9,207		26,467		21,842

Loan servicing and fee income			1,083		836		2,164		1,749
Service charges on deposit accounts			162		114		279		210
Gain on sale of loans held-for-sale			2,298		2,586		4,650		5,092
Gain on sale of investments			–		4		–		4
Other operating income			18		82		200		143
	Non-interest income		3,561		3,622		7,293		7,198

Compensation and benefits			7,003		6,499		14,235		12,061
Conversion expenses			–		–		3,180		–
Occupancy and equipment			1,910		1,843		3,746		3,613
Data processing			508		495		1,101		1,013
Professional fees			878		717		1,665		1,535
Federal deposit insurance premiums			365		365		702		683
Other operating expenses			1,952		1,751		3,983		3,569
	Non-interest expense		12,616		11,670		28,612		22,474

	Income before income taxes		3,383		1,159		5,148		6,566
Income tax expense			940		315		1,184		1,661

	Net income	$	2,443	$	844	$	3,964	$	4,905

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.11	$	0.53	$	0.66
Diluted		$	0.33	$	0.11	$	0.53	$	0.66

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,399,816		7,482,307		7,388,021
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,449,110		7,488,226		7,438,234

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTERLY TREND
(dollars in thousands, except per share data)

		Three Months Ended
		6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024

Interest income		$	32,049	$	32,837	$	33,057	$	34,113	$	33,420
Interest expense			17,254		18,208		19,249		21,011		20,173
	Net interest income		14,795		14,629		13,808		13,102		13,247
Provision for credit losses			2,357		600		400		200		4,040
	Net interest income after provision for credit losses		12,438		14,029		13,408		12,902		9,207

Loan servicing and fee income			1,083		1,081		981		960		836
Service charges on deposit accounts			162		117		136		123		114
Gain on sale of loans held-for-sale			2,298		2,352		3,014		2,834		2,586
Gain on sale of investments			–		–		27		–		4
Other operating income			18		182		29		37		82
	Non-interest income		3,561		3,732		4,187		3,954		3,622

Compensation and benefits			7,003		7,232		6,699		6,840		6,499
Conversion expenses			–		3,180		–		–		–
Occupancy and equipment			1,910		1,836		1,810		1,799		1,843
Data processing			508		593		536		547		495
Professional fees			878		787		782		762		717
Federal deposit insurance premiums			365		337		375		360		365
Other operating expenses			1,952		2,031		2,198		1,930		1,751
	Non-interest expense		12,616		15,996		12,400		12,238		11,670

	Income before income taxes		3,383		1,765		5,195		4,618		1,159
Income tax expense			940		244		1,293		1,079		315

	Net income	$	2,443	$	1,521	$	3,902	$	3,539	$	844

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.20	$	0.53	$	0.48	$	0.11
Diluted		$	0.33	$	0.20	$	0.52	$	0.48	$	0.11

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,463,537		7,427,583		7,411,064		7,399,816
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,469,489		7,456,471		7,436,068		7,449,110

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION ⁽¹⁾(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024

ADJUSTED NET INCOME:
Net income, as reported	$	2,443		$	844		$	3,964		$	4,905
Adjustments:
Conversion expenses		–			–			3,180			–
Total adjustments, before income taxes		–			–			3,180			–
Adjustment for reported effective income tax rate		–			–			608			–
Total adjustments, after income taxes		–			–			2,572			–
Adjusted net income	$	2,443		$	844		$	6,536		$	4,905
Basic earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66
Diluted earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66

ADJUSTED OPERATING EFFICIENCY RATIO:
Operating efficiency ratio, as reported		68.73	%		69.18	%		77.93	%		67.33	%
Adjustments:
Conversion expenses		0.00	%		0.00	%		-8.66	%		0.00	%
Adjusted operating efficiency ratio		68.73	%		69.18	%		69.27	%		67.33	%

ADJUSTED RETURN ON AVERAGE ASSETS		0.44	%		0.15	%		0.59	%		0.44	%
ADJUSTED RETURN ON AVERAGE EQUITY		4.93	%		1.77	%		6.63	%		5.20	%
ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY		5.46	%		1.97	%		7.35	%		5.80	%

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024
Profitability:
Return on average assets		0.44	%		0.15	%		0.36	%		0.44	%
Return on average equity ⁽¹⁾		4.93	%		1.77	%		4.02	%		5.20	%
Return on average tangible equity ⁽¹⁾		5.46	%		1.97	%		4.46	%		5.80	%
Pre-provision net revenue return on assets		1.04	%		0.94	%		0.73	%		0.99	%
Yield on average interest-earning assets		5.98	%		6.22	%		5.99	%		6.12	%
Cost of average interest-bearing liabilities		3.94	%		4.48	%		3.98	%		4.41	%
Net interest rate spread ⁽²⁾		2.04	%		1.74	%		2.01	%		1.71	%
Net interest margin ⁽³⁾		2.76	%		2.46	%		2.72	%		2.43	%
Non-interest expense to average assets		2.29	%		2.11	%		2.57	%		2.03	%
Operating efficiency ratio ⁽⁴⁾		68.73	%		69.18	%		77.93	%		67.33	%

Average balances:
Interest-earning assets	$	2,148,782		$	2,162,250		$	2,182,757		$	2,162,543
Interest-bearing liabilities		1,756,316			1,809,991			1,798,958			1,810,195
Loans		1,978,535			2,014,820			1,984,135			1,999,448
Deposits		1,838,947			1,773,205			1,878,969			1,807,924
Borrowings		142,733			231,473			138,224			196,950

⁽¹⁾ Includes common stock and Series A preferred stock.
⁽²⁾ Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽³⁾ Represents net interest income divided by average interest-earning assets.
⁽⁴⁾ Represents non-interest expense divided by the sum of net interest income and non-interest income.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands, except share and per share data)

	At or For the Three Months Ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024
Asset quality:
Provision for credit losses – loans ⁽¹⁾	$	2,170		$	600		$	400		$	200
Net (charge-offs)/recoveries		(3,524	)		(454	)		(1,027	)		(438	)
Allowance for credit losses		21,571			22,925			22,779			23,406
Allowance for credit losses to total loans ⁽²⁾		1.10	%		1.17	%		1.15	%		1.17	%
Non-performing loans	$	12,651		$	11,697		$	16,368		$	15,365
Non-performing loans/total loans		0.64	%		0.60	%		0.82	%		0.77	%
Non-performing loans/total assets		0.55	%		0.51	%		0.71	%		0.66	%
Allowance for credit losses/non-performing loans		170.51	%		195.99	%		139.17	%		152.33	%

Capital (Bank only):
Tier 1 Capital	$	203,322		$	201,925		$	201,744		$	198,196
Tier 1 leverage ratio		9.29	%		8.95	%		9.13	%		8.85	%
Common equity tier 1 capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Tier 1 risk based capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Total risk based capital ratio		14.41	%		14.62	%		14.58	%		14.24	%

Equity data:
Shares outstanding ⁽³⁾		7,499,243			7,503,731			7,427,127			7,428,366
Stockholders’ equity	$	198,885		$	196,643		$	196,638		$	192,339
Book value per share ⁽³⁾		26.52			26.21			26.48			25.89
Tangible common equity ⁽³⁾		179,495			177,239			177,220			172,906
Tangible book value per share ⁽³⁾		23.94			23.62			23.86			23.28
Tangible common equity (“TCE”) ratio ⁽³⁾		7.83	%		7.80	%		7.73	%		7.49	%

(1) Excludes $187 thousand, $0, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 6/30/25, 3/31/25, 12/31/24 and 9/30/24, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
STATISTICAL SUMMARY
QUARTERLY TREND
(unaudited, dollars in thousands, except share data)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024

Loan distribution ⁽¹⁾:
Residential mortgages	$	715,418		$	708,649		$	702,832		$	719,037
Multifamily		539,573			535,429			550,570			557,634
Commercial real estate – OO		267,223			264,855			261,223			246,458
Commercial real estate – NOO		271,552			280,345			298,517			305,536
Commercial & industrial		148,907			146,050			145,457			149,853
Home equity		23,361			24,914			26,422			26,825
Consumer		418			432			503			470

Total loans	$	1,966,452		$	1,960,674		$	1,985,524		$	2,005,813

Sequential quarter growth rate		0.29	%		-1.25	%		-1.01	%		-0.35	%

CRE concentration ratio		368	%		369	%		385	%		397	%

Loans sold during the quarter	$	46,045		$	46,649		$	53,499		$	43,537

Funding distribution:
Demand	$	243,664		$	215,569		$	211,656		$	206,327
N.O.W.		655,333			698,297			692,890			621,880
Savings		42,860			46,275			48,885			53,024
Money market		497,799			458,068			503,082			572,213
Total core deposits		1,439,656			1,418,209			1,456,513			1,453,444
Time		511,625			518,229			497,770			504,100
Total deposits		1,951,281			1,936,438			1,954,283			1,957,544
Borrowings		107,805			107,805			107,805			125,805
Subordinated debentures		24,716			24,702			24,689			24,675

Total funding sources	$	2,083,802		$	2,068,945		$	2,086,777		$	2,108,024

Sequential quarter growth rate – total deposits		0.77	%		-0.91	%		-0.17	%		0.80	%

Period-end core deposits/total deposits ratio		73.78	%		73.24	%		74.53	%		74.25	%

Period-end demand deposits/total deposits ratio		12.49	%		11.13	%		10.83	%		10.54	%

⁽¹⁾ Excluding loans held for sale

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾(unaudited)
(dollars in thousands, except share and per share amounts)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
Tangible common equity
Total equity ⁽²⁾	$	198,885		$	196,643		$	196,638		$	192,339		$	190,072
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625

Tangible common equity (“TCE”) ratio
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Total assets		2,311,976			2,291,527			2,312,110			2,327,814			2,331,098
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible assets	$	2,292,586		$	2,272,123		$	2,292,692		$	2,308,381		$	2,311,651
TCE ratio ⁽²⁾		7.83	%		7.80	%		7.73	%		7.49	%		7.38	%

Tangible book value per share
Tangible equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Shares outstanding ⁽²⁾		7,499,243			7,503,731			7,427,127			7,428,366			7,402,163
Tangible book value per share ⁽²⁾	$	23.94		$	23.62		$	23.86		$	23.28		$	23.05

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Three Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,978,535	$	29,785		6.04	%	$	2,014,820	$	31,124		6.21	%
Investment securities		99,448		1,433		5.78	%		99,324		1,534		6.21	%
Interest-earning cash		62,760		695		4.44	%		36,633		497		5.46	%
FHLB stock and other investments		8,039		136		6.79	%		11,473		265		9.29	%
Total interest-earning assets		2,148,782		32,049		5.98	%		2,162,250		33,420		6.22	%
Non interest-earning assets:
Cash and due from banks		9,218							7,979
Other assets		50,164							51,106
Total assets	$	2,208,164						$	2,221,335

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,126,495	$	10,649		3.79	%	$	1,117,029	$	12,667		4.56	%
Time deposits		487,088		5,058		4.17	%		461,489		4,910		4.28	%
Total savings and time deposits		1,613,583		15,707		3.90	%		1,578,518		17,577		4.48	%
Borrowings		118,026		1,221		4.15	%		206,820		2,270		4.41	%
Subordinated debentures		24,707		326		5.29	%		24,653		326		5.32	%
Total interest-bearing liabilities		1,756,316		17,254		3.94	%		1,809,991		20,173		4.48	%
Demand deposits		225,364							194,687
Other liabilities		27,615							25,039
Total liabilities		2,009,295							2,029,717
Stockholders’ equity		198,869							191,618
Total liabilities & stockholders’ equity	$	2,208,164						$	2,221,335
Net interest rate spread						2.04	%						1.74	%
Net interest income/margin			$	14,795		2.76	%			$	13,247		2.46	%

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Six Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,984,135	$	59,769		6.07	%	$	1,999,448	$	60,861		6.12	%
Investment securities		92,681		2,619		5.70	%		97,085		2,991		6.20	%
Interest-earning cash		97,914		2,177		4.48	%		55,652		1,511		5.46	%
FHLB stock and other investments		8,027		321		8.06	%		10,358		489		9.49	%
Total interest-earning assets		2,182,757		64,886		5.99	%		2,162,543		65,852		6.12	%
Non interest-earning assets:
Cash and due from banks		9,360							7,962
Other assets		49,930							50,523
Total assets	$	2,242,047						$	2,221,028

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,171,711	$	22,104		3.80	%	$	1,139,111	$	25,600		4.52	%
Time deposits		489,023		10,378		4.28	%		474,134		9,872		4.19	%
Total savings and time deposits		1,660,734		32,482		3.94	%		1,613,245		35,472		4.42	%
Borrowings		113,524		2,328		4.14	%		172,304		3,546		4.14	%
Subordinated debentures		24,700		652		5.32	%		24,646		652		5.32	%
Total interest-bearing liabilities		1,798,958		35,462		3.98	%		1,810,195		39,670		4.41	%
Demand deposits		218,235							194,679
Other liabilities		26,179							26,499
Total liabilities		2,043,372							2,031,373
Stockholders’ equity		198,675							189,655
Total liabilities & stockholders’ equity	$	2,242,047						$	2,221,028
Net interest rate spread						2.01	%						1.71	%
Net interest income/margin			$	29,424		2.72	%			$	26,182		2.43	%

The MIL Network –

July 24, 2025

MIL-OSI: Hanover Bancorp, Inc. Reports Second Quarter 2025 Results Highlighted by Strong Demand Deposit Growth, Continued Margin Expansion and Its Inclusion in the Russell 2000 Index

Source: GlobeNewswire (MIL-OSI)

Second Quarter Performance Highlights

Net Income: Net income for the quarter ended June 30, 2025 totaled $2.4 million or $0.33 per diluted share (including Series A preferred shares).
Pre-Provision Net Revenue: Pre-provision net revenue was $5.7 million resulting in a return on average assets of 1.04% for the quarter ended June 30, 2025 which was the highest level since the first quarter of 2023.
Net Interest Income: Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $0.2 million, or 1.13% from the quarter ended March 31, 2025 and $1.5 million, or 11.69%, from the quarter ended June 30, 2024.
Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended June 30, 2025 increased to 2.76% from 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024.
Demand Deposit Growth: Demand deposits increased $28.1 million, or 13.03%, from March 31, 2025 and $32.0 million, or 15.12%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals.
Strong Liquidity Position: At June 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5 million, or approximately 274% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June 30, 2025.
Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending.
Asset Quality: At June 30, 2025, the Bank’s asset quality metrics remained solid with non-performing loans totaling $12.7 million, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, as of December 31, 2024.
Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island.
Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

Earnings Summary for the Quarter Ended June 30, 2025

The Company reported net income for the quarter ended June 30, 2025 of $2.4 million or $0.33 per diluted share (including Series A preferred shares), versus $0.8 million (after giving effect to an allowance for credit loss (“ACL”) on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss (“CECL”) model) or $0.11 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter ended June 30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024.

The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense. The increase in compensation and benefits expense in the second quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port Jefferson branch and additions to the C&I Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company’s effective tax rate was 27.8% in the second quarter of 2025 and 27.2% in the comparable 2024 quarter. We expect a normalized run rate of 25.0% for the remainder of the year.

Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $1.5 million, or 11.69% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.76% in the 2025 quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025 quarter from 4.48% in the comparable 2024 quarter, a decrease of 54 basis points. This decrease was partially offset by a 24 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 quarter from 6.22% in the second quarter of 2024. Net interest income on a linked quarter basis increased $0.2 million or 1.13%, due to an 8 basis point increase in net interest margin resulting from a 7 basis point decrease in cost of interest-bearing liabilities, partially offset by a 3 basis point decrease on yield on interest earning assets.

Earnings Summary for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, the Company reported net income of $4.0 million or $0.53 per diluted share (including Series A preferred shares), versus $4.9 million or $0.66 per diluted share (including Series A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the six months ended June 30, 2025, versus net income of $4.9 million or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period.

The decrease in net income recorded for the six months ended June 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six months ended June 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 23.0% for the six months ended June 30, 2025 from 25.3% in the comparable 2024 period.

Net interest income was $29.4 million for the six months ended June 30, 2025, an increase of $3.2 million, or 12.38% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six months period from 4.41% in the comparable 2024 period, a decrease of 43 basis points. This decrease was partially offset by a 13 basis point decrease in the yield on interest earning assets to 5.99% in the 2025 period from 6.12% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our second quarter performance, reflects a number of high notes, including increased Pre-Provision Net Revenue of $5.7 million, strong non-interest bearing deposit growth of $28.1 million, underscoring the success of our C&I and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell 2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.”

Balance Sheet Highlights

Total assets were $2.31 billion at June 30, 2025 and December 31, 2024. Total securities available for sale at June 30, 2025 were $102.6 million, an increase of $18.9 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds.

Total deposits were $1.95 billion at June 30, 2025 and December 31, 2024. Total deposits increased $9.4 million or 0.48% from June 30, 2024. Demand deposits increased $43.8 million or 21.93% from June 30, 2024 and $32.0 million, or 15.12%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at June 30, 2025 from 102% at December 31, 2024.

The Company had $517.4 million in total municipal deposits at June 30, 2025, at a weighted average rate of 3.67% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $452.6 million at a weighted average rate of 4.61% at June 30, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships.

Total borrowings at June 30, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 17 months, respectively. At June 30, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2025 and December 31, 2024.

Stockholders’ equity was $198.9 million at June 30, 2025 and compared to $196.6 million at December 31, 2024. Retained earnings increased by $2.5 million due primarily to net income of $4.0 million for the six months ended June 30, 2025, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2025 was 0.62% of total equity and was comprised of a $0.7 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.94 at June 30, 2025 compared to $23.86 at December 31, 2024.

Loan Portfolio

For the six months ended June 30, 2025, the Bank’s loan portfolio decreased $19.1 million to $1.97 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. On a linked quarter basis, net loans increased $5.8 million. At June 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $738.8 million, with an average loan balance of $489 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9 million at June 30, 2025. The Company’s loan pipeline with executed term sheets at June 30, 2025 is approximately $190.2 million, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities.

The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2 million in residential loans in the quarter ended June 30, 2025. During the quarters ended June 30, 2025 and 2024, the Company sold $23.7 million and $2.9 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.1 million, respectively.

During the quarters ended June 30, 2025 and 2024, the Company sold approximately $22.3 million and $28.0 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.8 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses.

Commercial Real Estate Statistics

A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.2 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027.

Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule										Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate			Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		7	$	8,609	$	1,230		5.29	%	2025		8	$	14,950	$	1,869		4.54	%
2026		36		117,249		3,257		3.66	%	2026		20		42,310		2,115		3.67	%
2027		70		185,157		2,645		4.41	%	2027		51		122,901		2,410		4.22	%
2028		16		21,310		1,332		6.20	%	2028		12		10,117		843		7.14	%
2029		6		4,924		821		7.70	%	2029		4		4,313		1,078		6.38	%
2030+		3		6,667		2,222		3.68	%	2030+		4		1,099		275		6.04	%
Fixed Rate		138		343,916		2,492		4.32	%	Fixed Rate		99		195,690		1,977		4.34	%
Floating Rate		2		347		174		9.50	%	Floating Rate		—		—		—		—	%
Total		140	$	344,263	$	2,459		4.33	%	Total		99	$	195,690	$	1,977		4.34	%

CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		25	$	33,503	$	1,340		7.28	%
2026		30		35,702		1,190		4.90	%
2027		89		156,924		1,763		4.86	%
2028		28		30,868		1,102		6.65	%
2029		4		2,336		584		7.04	%
2030+		15		8,999		600		6.46	%
Fixed Rate		191		268,332		1,405		5.45	%
Floating Rate		6		11,905		1,984		9.50	%
Total CRE-Inv.		197	$	280,237	$	1,423		5.62	%

Stabilized Multi-Family Pro Forma Stress Results

The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV.

Multi-Family Stabilized Rent Portfolio
DSCR Range	# Loans	Total O/S ($000’s omitted)		% of Total MF Portfolio		Current Weighted Average LTV		Projected Weighted Average LTV

< 1.0	10	$	18,153	3	%	61	%	95	%
1.0 < x < 1.2	24		69,751	13	%	65	%	74	%
1.2 < x < 1.3	20		34,897	6	%	62	%	67	%
1.3 < x < 1.5	15		38,547	7	%	63	%	61	%
1.5 < x < 2.0	18		25,805	5	%	58	%	53	%
x > 2.0	12		8,537	2	%	43	%	33	%
Total	99	$	195,690	36	%	62	%	67	%

As reflected above, the results show approximately 3%, or 10 loans totaling $18 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Additionally, approximately 97% or 89 loans totaling $178 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12 months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis.

Rental breakdown of Multi-Family portfolio

The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

Multi-Family Loan Portfolio – Loans by Rent Type
Rent Type	# of Notes		Outstanding Loan Balance		% of Total Multi-Family			Avg Loan Size		LTV			Current DSCR		Avg # of Units
			($000’s omitted)					($000’s omitted)

Market		140	$	344,263		64	%	$	2,459		61.8	%		1.41		11
Location
Manhattan		7	$	10,251		2	%	$	1,464		49.4	%		1.88		14
Other NYC		92	$	254,515		47	%	$	2,766		61.7	%		1.40		10
Outside NYC		41	$	79,497		15	%	$	1,939		63.9	%		1.36		14

Stabilized		99	$	195,690		36	%	$	1,977		61.8	%		1.44		12
Location
Manhattan		7	$	10,459		2	%	$	1,494		48.2	%		1.71		19
Other NYC		81	$	168,044		31	%	$	2,075		62.6	%		1.42		11
Outside NYC		11	$	17,187		3	%	$	1,562		63.1	%		1.54		14

Office Property Exposure

The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9 million, of which less than 1% is located in Manhattan. The pool has a 2.48x weighted average DSCR, a 53% weighted average LTV and less than $350,000 of exposure in Manhattan.

Asset Quality and Allowance for Credit Losses

The Bank’s asset quality metrics remain solid. At June 30, 2025, the Bank reported $12.7 million in non-performing loans compared to $16.4 million at December 31, 2024, a decrease of $3.7 million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June 2024 on an individually evaluated commercial loan. At June 30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December 31, 2024.

During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4 million (including $187 thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5 million were incurred during the quarter, of which $2.5 million is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June 30, 2025 allowance for credit losses was $21.6 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025 and 1.15% at December 31, 2024.

Net Interest Margin

The Bank’s net interest margin increased to 2.76% for the quarter ended June 30, 2025 compared to 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

About Hanover Community Bank and Hanover Bancorp, Inc.

Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

Non-GAAP Disclosure

This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

Forward-Looking Statements

This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Investor and Press Contact:
Lance P. Burke
Chief Financial Officer
(516) 548-8500


HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)

		June 30,		March 31,		December 31,
		2025		2025		2024
Assets
Cash and cash equivalents		$	164,535	$	160,234	$	162,857
Securities-available for sale, at fair value			102,636		93,197		83,755
Investments-held to maturity			3,594		3,671		3,758
Loans held for sale			10,593		16,306		12,404

Loans, net of deferred loan fees and costs			1,966,452		1,960,674		1,985,524
Less: allowance for credit losses			-21,571		-22,925		-22,779
Loans, net			1,944,881		1,937,749		1,962,745

Goodwill			19,168		19,168		19,168
Premises & fixed assets			14,388		14,511		15,337
Operating lease assets			10,890		8,484		8,337
Other assets			41,291		38,207		43,749
	Assets	$	2,311,976	$	2,291,527	$	2,312,110

Liabilities and stockholders’ equity
Core deposits		$	1,439,656	$	1,418,209	$	1,456,513
Time deposits			511,625		518,229		497,770
Total deposits			1,951,281		1,936,438		1,954,283

Borrowings			107,805		107,805		107,805
Subordinated debentures			24,716		24,702		24,689
Operating lease liabilities			11,565		9,144		9,025
Other liabilities			17,724		16,795		19,670
	Liabilities		2,113,091		2,094,884		2,115,472

Stockholders’ equity			198,885		196,643		196,638
	Liabilities and stockholders’ equity	$	2,311,976	$	2,291,527	$	2,312,110

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended				Six Months Ended
		6/30/2025		6/30/2024		6/30/2025		6/30/2024

Interest income		$	32,049	$	33,420	$	64,886	$	65,852
Interest expense			17,254		20,173		35,462		39,670
	Net interest income		14,795		13,247		29,424		26,182
Provision for credit losses			2,357		4,040		2,957		4,340
	Net interest income after provision for credit losses		12,438		9,207		26,467		21,842

Loan servicing and fee income			1,083		836		2,164		1,749
Service charges on deposit accounts			162		114		279		210
Gain on sale of loans held-for-sale			2,298		2,586		4,650		5,092
Gain on sale of investments			–		4		–		4
Other operating income			18		82		200		143
	Non-interest income		3,561		3,622		7,293		7,198

Compensation and benefits			7,003		6,499		14,235		12,061
Conversion expenses			–		–		3,180		–
Occupancy and equipment			1,910		1,843		3,746		3,613
Data processing			508		495		1,101		1,013
Professional fees			878		717		1,665		1,535
Federal deposit insurance premiums			365		365		702		683
Other operating expenses			1,952		1,751		3,983		3,569
	Non-interest expense		12,616		11,670		28,612		22,474

	Income before income taxes		3,383		1,159		5,148		6,566
Income tax expense			940		315		1,184		1,661

	Net income	$	2,443	$	844	$	3,964	$	4,905

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.11	$	0.53	$	0.66
Diluted		$	0.33	$	0.11	$	0.53	$	0.66

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,399,816		7,482,307		7,388,021
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,449,110		7,488,226		7,438,234

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTERLY TREND
(dollars in thousands, except per share data)

		Three Months Ended
		6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024

Interest income		$	32,049	$	32,837	$	33,057	$	34,113	$	33,420
Interest expense			17,254		18,208		19,249		21,011		20,173
	Net interest income		14,795		14,629		13,808		13,102		13,247
Provision for credit losses			2,357		600		400		200		4,040
	Net interest income after provision for credit losses		12,438		14,029		13,408		12,902		9,207

Loan servicing and fee income			1,083		1,081		981		960		836
Service charges on deposit accounts			162		117		136		123		114
Gain on sale of loans held-for-sale			2,298		2,352		3,014		2,834		2,586
Gain on sale of investments			–		–		27		–		4
Other operating income			18		182		29		37		82
	Non-interest income		3,561		3,732		4,187		3,954		3,622

Compensation and benefits			7,003		7,232		6,699		6,840		6,499
Conversion expenses			–		3,180		–		–		–
Occupancy and equipment			1,910		1,836		1,810		1,799		1,843
Data processing			508		593		536		547		495
Professional fees			878		787		782		762		717
Federal deposit insurance premiums			365		337		375		360		365
Other operating expenses			1,952		2,031		2,198		1,930		1,751
	Non-interest expense		12,616		15,996		12,400		12,238		11,670

	Income before income taxes		3,383		1,765		5,195		4,618		1,159
Income tax expense			940		244		1,293		1,079		315

	Net income	$	2,443	$	1,521	$	3,902	$	3,539	$	844

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.20	$	0.53	$	0.48	$	0.11
Diluted		$	0.33	$	0.20	$	0.52	$	0.48	$	0.11

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,463,537		7,427,583		7,411,064		7,399,816
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,469,489		7,456,471		7,436,068		7,449,110

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION ⁽¹⁾(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024

ADJUSTED NET INCOME:
Net income, as reported	$	2,443		$	844		$	3,964		$	4,905
Adjustments:
Conversion expenses		–			–			3,180			–
Total adjustments, before income taxes		–			–			3,180			–
Adjustment for reported effective income tax rate		–			–			608			–
Total adjustments, after income taxes		–			–			2,572			–
Adjusted net income	$	2,443		$	844		$	6,536		$	4,905
Basic earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66
Diluted earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66

ADJUSTED OPERATING EFFICIENCY RATIO:
Operating efficiency ratio, as reported		68.73	%		69.18	%		77.93	%		67.33	%
Adjustments:
Conversion expenses		0.00	%		0.00	%		-8.66	%		0.00	%
Adjusted operating efficiency ratio		68.73	%		69.18	%		69.27	%		67.33	%

ADJUSTED RETURN ON AVERAGE ASSETS		0.44	%		0.15	%		0.59	%		0.44	%
ADJUSTED RETURN ON AVERAGE EQUITY		4.93	%		1.77	%		6.63	%		5.20	%
ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY		5.46	%		1.97	%		7.35	%		5.80	%

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024
Profitability:
Return on average assets		0.44	%		0.15	%		0.36	%		0.44	%
Return on average equity ⁽¹⁾		4.93	%		1.77	%		4.02	%		5.20	%
Return on average tangible equity ⁽¹⁾		5.46	%		1.97	%		4.46	%		5.80	%
Pre-provision net revenue return on assets		1.04	%		0.94	%		0.73	%		0.99	%
Yield on average interest-earning assets		5.98	%		6.22	%		5.99	%		6.12	%
Cost of average interest-bearing liabilities		3.94	%		4.48	%		3.98	%		4.41	%
Net interest rate spread ⁽²⁾		2.04	%		1.74	%		2.01	%		1.71	%
Net interest margin ⁽³⁾		2.76	%		2.46	%		2.72	%		2.43	%
Non-interest expense to average assets		2.29	%		2.11	%		2.57	%		2.03	%
Operating efficiency ratio ⁽⁴⁾		68.73	%		69.18	%		77.93	%		67.33	%

Average balances:
Interest-earning assets	$	2,148,782		$	2,162,250		$	2,182,757		$	2,162,543
Interest-bearing liabilities		1,756,316			1,809,991			1,798,958			1,810,195
Loans		1,978,535			2,014,820			1,984,135			1,999,448
Deposits		1,838,947			1,773,205			1,878,969			1,807,924
Borrowings		142,733			231,473			138,224			196,950

⁽¹⁾ Includes common stock and Series A preferred stock.
⁽²⁾ Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽³⁾ Represents net interest income divided by average interest-earning assets.
⁽⁴⁾ Represents non-interest expense divided by the sum of net interest income and non-interest income.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands, except share and per share data)

	At or For the Three Months Ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024
Asset quality:
Provision for credit losses – loans ⁽¹⁾	$	2,170		$	600		$	400		$	200
Net (charge-offs)/recoveries		(3,524	)		(454	)		(1,027	)		(438	)
Allowance for credit losses		21,571			22,925			22,779			23,406
Allowance for credit losses to total loans ⁽²⁾		1.10	%		1.17	%		1.15	%		1.17	%
Non-performing loans	$	12,651		$	11,697		$	16,368		$	15,365
Non-performing loans/total loans		0.64	%		0.60	%		0.82	%		0.77	%
Non-performing loans/total assets		0.55	%		0.51	%		0.71	%		0.66	%
Allowance for credit losses/non-performing loans		170.51	%		195.99	%		139.17	%		152.33	%

Capital (Bank only):
Tier 1 Capital	$	203,322		$	201,925		$	201,744		$	198,196
Tier 1 leverage ratio		9.29	%		8.95	%		9.13	%		8.85	%
Common equity tier 1 capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Tier 1 risk based capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Total risk based capital ratio		14.41	%		14.62	%		14.58	%		14.24	%

Equity data:
Shares outstanding ⁽³⁾		7,499,243			7,503,731			7,427,127			7,428,366
Stockholders’ equity	$	198,885		$	196,643		$	196,638		$	192,339
Book value per share ⁽³⁾		26.52			26.21			26.48			25.89
Tangible common equity ⁽³⁾		179,495			177,239			177,220			172,906
Tangible book value per share ⁽³⁾		23.94			23.62			23.86			23.28
Tangible common equity (“TCE”) ratio ⁽³⁾		7.83	%		7.80	%		7.73	%		7.49	%

(1) Excludes $187 thousand, $0, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 6/30/25, 3/31/25, 12/31/24 and 9/30/24, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
STATISTICAL SUMMARY
QUARTERLY TREND
(unaudited, dollars in thousands, except share data)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024

Loan distribution ⁽¹⁾:
Residential mortgages	$	715,418		$	708,649		$	702,832		$	719,037
Multifamily		539,573			535,429			550,570			557,634
Commercial real estate – OO		267,223			264,855			261,223			246,458
Commercial real estate – NOO		271,552			280,345			298,517			305,536
Commercial & industrial		148,907			146,050			145,457			149,853
Home equity		23,361			24,914			26,422			26,825
Consumer		418			432			503			470

Total loans	$	1,966,452		$	1,960,674		$	1,985,524		$	2,005,813

Sequential quarter growth rate		0.29	%		-1.25	%		-1.01	%		-0.35	%

CRE concentration ratio		368	%		369	%		385	%		397	%

Loans sold during the quarter	$	46,045		$	46,649		$	53,499		$	43,537

Funding distribution:
Demand	$	243,664		$	215,569		$	211,656		$	206,327
N.O.W.		655,333			698,297			692,890			621,880
Savings		42,860			46,275			48,885			53,024
Money market		497,799			458,068			503,082			572,213
Total core deposits		1,439,656			1,418,209			1,456,513			1,453,444
Time		511,625			518,229			497,770			504,100
Total deposits		1,951,281			1,936,438			1,954,283			1,957,544
Borrowings		107,805			107,805			107,805			125,805
Subordinated debentures		24,716			24,702			24,689			24,675

Total funding sources	$	2,083,802		$	2,068,945		$	2,086,777		$	2,108,024

Sequential quarter growth rate – total deposits		0.77	%		-0.91	%		-0.17	%		0.80	%

Period-end core deposits/total deposits ratio		73.78	%		73.24	%		74.53	%		74.25	%

Period-end demand deposits/total deposits ratio		12.49	%		11.13	%		10.83	%		10.54	%

⁽¹⁾ Excluding loans held for sale

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾(unaudited)
(dollars in thousands, except share and per share amounts)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
Tangible common equity
Total equity ⁽²⁾	$	198,885		$	196,643		$	196,638		$	192,339		$	190,072
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625

Tangible common equity (“TCE”) ratio
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Total assets		2,311,976			2,291,527			2,312,110			2,327,814			2,331,098
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible assets	$	2,292,586		$	2,272,123		$	2,292,692		$	2,308,381		$	2,311,651
TCE ratio ⁽²⁾		7.83	%		7.80	%		7.73	%		7.49	%		7.38	%

Tangible book value per share
Tangible equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Shares outstanding ⁽²⁾		7,499,243			7,503,731			7,427,127			7,428,366			7,402,163
Tangible book value per share ⁽²⁾	$	23.94		$	23.62		$	23.86		$	23.28		$	23.05

⁽¹⁾ A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Three Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,978,535	$	29,785		6.04	%	$	2,014,820	$	31,124		6.21	%
Investment securities		99,448		1,433		5.78	%		99,324		1,534		6.21	%
Interest-earning cash		62,760		695		4.44	%		36,633		497		5.46	%
FHLB stock and other investments		8,039		136		6.79	%		11,473		265		9.29	%
Total interest-earning assets		2,148,782		32,049		5.98	%		2,162,250		33,420		6.22	%
Non interest-earning assets:
Cash and due from banks		9,218							7,979
Other assets		50,164							51,106
Total assets	$	2,208,164						$	2,221,335

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,126,495	$	10,649		3.79	%	$	1,117,029	$	12,667		4.56	%
Time deposits		487,088		5,058		4.17	%		461,489		4,910		4.28	%
Total savings and time deposits		1,613,583		15,707		3.90	%		1,578,518		17,577		4.48	%
Borrowings		118,026		1,221		4.15	%		206,820		2,270		4.41	%
Subordinated debentures		24,707		326		5.29	%		24,653		326		5.32	%
Total interest-bearing liabilities		1,756,316		17,254		3.94	%		1,809,991		20,173		4.48	%
Demand deposits		225,364							194,687
Other liabilities		27,615							25,039
Total liabilities		2,009,295							2,029,717
Stockholders’ equity		198,869							191,618
Total liabilities & stockholders’ equity	$	2,208,164						$	2,221,335
Net interest rate spread						2.04	%						1.74	%
Net interest income/margin			$	14,795		2.76	%			$	13,247		2.46	%

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Six Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,984,135	$	59,769		6.07	%	$	1,999,448	$	60,861		6.12	%
Investment securities		92,681		2,619		5.70	%		97,085		2,991		6.20	%
Interest-earning cash		97,914		2,177		4.48	%		55,652		1,511		5.46	%
FHLB stock and other investments		8,027		321		8.06	%		10,358		489		9.49	%
Total interest-earning assets		2,182,757		64,886		5.99	%		2,162,543		65,852		6.12	%
Non interest-earning assets:
Cash and due from banks		9,360							7,962
Other assets		49,930							50,523
Total assets	$	2,242,047						$	2,221,028

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,171,711	$	22,104		3.80	%	$	1,139,111	$	25,600		4.52	%
Time deposits		489,023		10,378		4.28	%		474,134		9,872		4.19	%
Total savings and time deposits		1,660,734		32,482		3.94	%		1,613,245		35,472		4.42	%
Borrowings		113,524		2,328		4.14	%		172,304		3,546		4.14	%
Subordinated debentures		24,700		652		5.32	%		24,646		652		5.32	%
Total interest-bearing liabilities		1,798,958		35,462		3.98	%		1,810,195		39,670		4.41	%
Demand deposits		218,235							194,679
Other liabilities		26,179							26,499
Total liabilities		2,043,372							2,031,373
Stockholders’ equity		198,675							189,655
Total liabilities & stockholders’ equity	$	2,242,047						$	2,221,028
Net interest rate spread						2.01	%						1.71	%
Net interest income/margin			$	29,424		2.72	%			$	26,182		2.43	%

The MIL Network –

July 24, 2025

MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025 Highlights

Net income of $29.0 million, or $1.71 per diluted share
Adjusted net income¹of $29.4 million, or $1.73 per diluted share
NIM TEY¹expanded four basis points to 3.46%
Adjusted ROAA¹of 1.29% annualized
Capital markets revenue growth of 51% on a linked-quarter basis
Nonperforming assets declined $5.5 million, or 11%
Tangible book value per share¹grew $1.64, or 13% annualized
TCE/TA ratio¹improved 22 basis points to 9.92%

MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

Adjusted net income¹ and adjusted diluted EPS¹ for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

	For the Quarter Ended
	June 30,		March 31,		June 30,
$ in millions (except per share data)	2025		2025		2024
Net Income	$	29.0	$	25.8	$	29.1
Diluted EPS	$	1.71	$	1.52	$	1.72
Adjusted Net Income¹	$	29.4	$	26.0	$	29.3
Adjusted Diluted EPS¹	$	1.73	$	1.53	$	1.73

“We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” said Todd Gipple, President and Chief Executive Officer. “These robust results led to continued capital accretion and a substantial increase in tangible book value per share¹.”

Significant Net Interest Income Growth as Margin Expansion Continues

Net interest income for the second quarter of 2025 totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025, driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds. Net interest margin (“NIM”) was 2.97% and NIM on a tax-equivalent yield (“TEY”) basis¹ was 3.46% for the second quarter, as compared to 2.95% and 3.42% for the prior quarter, respectively.

“Our NIM TEY¹ increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” said Nick Anderson, Chief Financial Officer. “Looking ahead, we anticipate continued margin expansion and are guiding to an increase in third quarter NIM TEY¹ in a range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Anderson.

Improving Noninterest Income Driven by Capital Markets Revenue

Noninterest income for the second quarter of 2025 was $22.1 million, up from $16.9 million in the first quarter of 2025. The Company generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the prior quarter. Wealth management revenue totaled $4.6 million, representing a slight decline from the first quarter of 2025. However, it increased $332 thousand or 8% compared to the second quarter of 2024 and rose 23% year-to-date on an annualized basis compared to the same period in 2024.

“During the second quarter of 2025 we saw improved low-income housing tax credit (“LIHTC”) lending activity compared to the first quarter as clients adjusted to the current environment. This increased activity drove 51% growth in our capital markets revenue. The sustained, long-term demand for affordable housing continues to support our LIHTC lending and related capital markets revenue. Our pipeline continues to improve as clients adapt to the evolving market conditions,” said Mr. Gipple.

“Given the strengthened pipeline, we are reaffirming our guidance for Capital Markets revenue to be in a range of $50 to $60 million for the next four quarters. In addition, we are also providing guidance over a shorter horizon and expect capital markets revenue for the third quarter to be fully back to a more normalized level and in a range of $13 to $16 million for the quarter,” added Mr. Gipple.

Disciplined Noninterest Expense Management

Noninterest expense for the second quarter of 2025 totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the second quarter of 2024. The $3.1 million linked-quarter increase was primarily due to higher capital markets revenue and strong loan growth resulting in an improved return on average assets which drove higher variable compensation. Professional and data processing expenses also increased and were related to the Company’s digital transformation.

“While expenses increased compared to the first quarter, we held noninterest expense under the low end of our guidance range of $50 to $53 million, highlighting our expense flexibility,” said Mr. Anderson. “Noninterest expense remains well managed, down 9% year to date on an annualized basis compared to the same period in 2024. The Company’s efficiency ratio¹ was 58.9% in the second quarter. For the third quarter of 2025, we expect noninterest expense to be in the range of $52 to $55, million which includes certain costs associated with our digital transformation and assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Anderson.

Strong Loan Growth

In the second quarter of 2025, the Company’s total loans and leases held for investment grew by $102.6 million, to $6.9 billion. “Loan growth was 8% annualized when adding back the impact from the planned runoff of m2 Equipment Finance loans and leases. Second quarter loan growth was driven by both our LIHTC and traditional lending businesses. Our pipeline is strong, and we anticipate loan demand to increase as clients continue to adapt to current market conditions,” stated Mr. Gipple. “We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” added Mr. Gipple.

Maintaining Core Deposit Strength

Following the robust deposit growth of $276.2 million, or 16% annualized, in the first quarter of 2025, the majority of those balances were retained throughout the second quarter. Total deposits declined slightly by $19.0 million, or 1% annualized from the first quarter, while average deposit balances increased $72.0 million. Year-to-date, core deposits have increased by $311 million, or 9% annualized.

Asset Quality Remains Excellent

The nonperforming assets (“NPAs”) to total assets ratio was 0.46% as of June 30, 2025, down seven basis points from the prior quarter. NPAs totaled $42.7 million at the end of the second quarter of 2025, a $5.5 million, or 11% decrease from the prior quarter.

Total criticized loans increased by $9.3 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of June 30, 2025, increased to 2.16% as compared to 2.06% as of March 31, 2025. Despite the 10 basis point increase, the criticized loan ratio remains well below the Company’s long-term historical average.

The Company recorded a total provision for credit losses of $4.0 million during the quarter, which was down slightly from $4.2 million in the prior quarter. Net charge-offs were $6.3 million during the second quarter of 2025, an increase of $2.1 million from the prior quarter primarily due to the charge-off of loans that had previously been fully reserved. The allowance for credit losses to total loans held for investment was 1.28% for the second quarter.

Strong Tangible Book Value and Regulatory Capital Growth

The Company’s tangible book value per share¹ increased by $1.64, or 13% annualized, during the second quarter of 2025 due to the combination of strong earnings and a modest dividend.

As of June 30, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”)¹ increased 22 basis points to 9.92%. The improvement in TCE¹ was driven by strong earnings during the quarter. The total risk-based capital ratio increased to 14.26% and the common equity tier 1 ratio increased to 10.43% due to solid earnings growth during the quarter. By comparison, these ratios were 9.70%, 14.18%, and 10.27%, respectively, as of March 31, 2025. The Company remains focused on growing its regulatory capital.

Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 24, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 31, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8414968. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.9 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Endnotes

¹Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) 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; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company’s general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework, and (xxiv) the ability of the Company 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 the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.

Contact:
Nick W. Anderson
Chief Financial Officer
(309) 743-7707
nanderson@qcrh.com

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

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

		(dollars in thousands)

	CONDENSED BALANCE SHEET

	Cash and due from banks	$	104,769		$	98,994		$	91,732		$	103,840		$	92,173
	Federal funds sold and interest-bearing deposits		145,704			225,716			170,592			159,159			102,262
	Securities, net of allowance for credit losses		1,263,452			1,220,717			1,200,435			1,146,046			1,033,199
	Loans receivable held for sale (1)		1,162			2,025			2,143			167,047			246,124
	Loans/leases receivable held for investment		6,923,762			6,821,142			6,782,261			6,661,755			6,608,262
	Allowance for credit losses		(88,732	)		(90,354	)		(89,841	)		(86,321	)		(87,706	)
	Intangibles		9,738			10,400			11,061			11,751			12,441
	Goodwill		138,595			138,595			138,595			138,596			139,027
	Derivatives		184,982			180,997			186,781			261,913			194,354
	Other assets		558,899			544,547			532,271			524,779			531,855
	Total assets	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991

	Total deposits	$	7,318,353		$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667
	Total borrowings		509,359			429,921			569,532			660,344			768,671
	Derivatives		209,505			206,925			214,823			285,769			221,798
	Other liabilities		154,560			155,796			183,101			181,199			180,536
	Total stockholders’ equity		1,050,554			1,022,747			997,387			976,620			936,319
	Total liabilities and stockholders’ equity	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991

	ANALYSIS OF LOAN PORTFOLIO
	Loan/lease mix: (2)
	Commercial and industrial – revolving	$	380,029		$	388,479		$	387,991		$	387,409		$	362,115
	Commercial and industrial – other		1,180,859			1,231,198			1,295,961			1,321,053			1,370,561
	Commercial and industrial – other – LIHTC		194,830			212,921			218,971			89,028			92,637
	Total commercial and industrial		1,755,718			1,832,598			1,902,923			1,797,490			1,825,313
	Commercial real estate, owner occupied		593,675			599,488			605,993			622,072			633,596
	Commercial real estate, non-owner occupied		1,036,049			1,040,281			1,077,852			1,103,694			1,082,457
	Construction and land development		454,022			403,001			395,557			342,335			331,454
	Construction and land development – LIHTC		1,075,000			1,016,207			917,986			913,841			750,894
	Multi-family		301,432			289,782			303,662			324,090			329,239
	Multi-family – LIHTC		950,331			888,517			828,448			973,682			1,148,244
	Direct financing leases		12,880			14,773			17,076			19,241			25,808
	1-4 family real estate		592,253			592,127			588,179			587,512			583,542
	Consumer		153,564			146,393			146,728			144,845			143,839
	Total loans/leases	$	6,924,924		$	6,823,167		$	6,784,404		$	6,828,802		$	6,854,386
	Less allowance for credit losses		88,732			90,354			89,841			86,321			87,706
	Net loans/leases	$	6,836,192		$	6,732,813		$	6,694,563		$	6,742,481		$	6,766,680


	ANALYSIS OF SECURITIES PORTFOLIO
	Securities mix:
	U.S. government sponsored agency securities	$	14,267		$	17,487		$	20,591		$	18,621		$	20,101
	Municipal securities		1,033,642			1,003,985			971,567			965,810			885,046
	Residential mortgage-backed and related securities		58,864			43,194			50,042			53,488			54,708
	Asset backed securities		6,684			7,764			9,224			10,455			12,721
	Other securities		67,358			66,105			65,745			39,190			38,464
	Trading securities (3)		82,900			82,445			83,529			58,685			22,362
	Total securities	$	1,263,715		$	1,220,980		$	1,200,698		$	1,146,249		$	1,033,402
	Less allowance for credit losses		263			263			263			203			203
	Net securities	$	1,263,452		$	1,220,717		$	1,200,435		$	1,146,046		$	1,033,199

	ANALYSIS OF DEPOSITS
	Deposit mix:
	Noninterest-bearing demand deposits	$	952,032		$	963,851		$	921,160		$	969,348		$	956,445
	Interest-bearing demand deposits		5,087,783			5,119,601			4,828,216			4,715,087			4,644,918
	Time deposits		974,341			951,606			953,496			942,847			859,593
	Brokered deposits		304,197			302,332			358,315			357,351			303,711
	Total deposits	$	7,318,353		$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667

	ANALYSIS OF BORROWINGS
	Borrowings mix:
	Term FHLB advances	$	145,383		$	145,383		$	145,383		$	145,383		$	135,000
	Overnight FHLB advances		80,000			–			140,000			230,000			350,000
	Other short-term borrowings		1,350			2,050			1,800			2,750			1,600
	Subordinated notes		233,701			233,595			233,489			233,383			233,276
	Junior subordinated debentures		48,925			48,893			48,860			48,828			48,795
	Total borrowings	$	509,359		$	429,921		$	569,532		$	660,344		$	768,671

(1)	Loans with a fair value of $0 million, $0 million, $0 million, $165.9 million and $243.2 million have been identified for securitization and are included in LHFS at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
(2)	Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2025.
(3)	Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

	For the Quarter Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024		2024

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	120,247	$	116,673		$	121,642		$	125,420		$	119,746
Interest expense		58,165		56,687			60,438			65,698			63,583
Net interest income		62,082		59,986			61,204			59,722			56,163
Provision for credit losses		4,043		4,234			5,149			3,484			5,496
Net interest income after provision for credit losses	$	58,039	$	55,752		$	56,055		$	56,238		$	50,667


Trust fees (1)	$	3,395	$	3,686		$	3,456		$	3,270		$	3,103
Investment advisory and management fees (1)		1,254		1,254			1,320			1,229			1,214
Deposit service fees		2,187		2,183			2,228			2,294			1,986
Gains on sales of residential real estate loans, net		556		297			734			385			540
Gains on sales of government guaranteed portions of loans, net		40		61			49			–			12
Capital markets revenue		9,869		6,516			20,552			16,290			17,758
Earnings on bank-owned life insurance		998		524			797			814			2,964
Debit card fees		1,648		1,488			1,555			1,575			1,571
Correspondent banking fees		699		614			560			507			510
Loan related fee income		1,096		898			950			949			962
Fair value gain (loss) on derivatives and trading securities		230		(1,007	)		(1,781	)		(886	)		51
Other		143		378			205			730			218
Total noninterest income	$	22,115	$	16,892		$	30,625		$	27,157		$	30,889


Salaries and employee benefits	$	28,474	$	27,364		$	33,610		$	31,637		$	31,079
Occupancy and equipment expense		6,837		6,455			6,354			6,168			6,377
Professional and data processing fees		6,089		5,144			5,480			4,457			4,823
Restructuring expense		–		–			–			1,954			–
FDIC insurance, other insurance and regulatory fees		1,960		1,970			1,934			1,711			1,854
Loan/lease expense		407		381			513			587			151
Net cost of (income from) and gains/losses on operations of other real estate		50		(9	)		23			(42	)		28
Advertising and marketing		1,746		1,613			1,886			2,124			1,565
Communication and data connectivity		274		290			345			333			318
Supplies		252		207			252			278			259
Bank service charges		720		596			635			603			622
Correspondent banking expense		314		329			328			325			363
Intangibles amortization		661		661			691			690			690
Goodwill impairment		–		–			–			431			–
Payment card processing		547		594			516			785			706
Trust expense		413		357			381			395			379
Other		839		587			551			1,129			674
Total noninterest expense	$	49,583	$	46,539		$	53,499		$	53,565		$	49,888

Net income before income taxes	$	30,571	$	26,105		$	33,181		$	29,830		$	31,668
Federal and state income tax expense		1,552		308			2,956			2,045			2,554
Net income	$	29,019	$	25,797		$	30,225		$	27,785		$	29,114

Basic EPS	$	1.71	$	1.53		$	1.80		$	1.65		$	1.73
Diluted EPS	$	1.71	$	1.52		$	1.77		$	1.64		$	1.72


Weighted average common shares outstanding		16,928,542		16,900,785			16,871,652			16,846,200			16,814,814
Weighted average common and common equivalent shares outstanding		17,006,282		17,013,992			17,024,481			16,982,400			16,921,854

(1) Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

	For the Six Months Ended
	June 30,			June 30,
		2025			2024

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	236,920		$	234,795
Interest expense		114,852			123,933
Net interest income		122,068			110,862
Provision for credit losses		8,277			8,465
Net interest income after provision for credit losses	$	113,791		$	102,397


Trust fees	$	7,081		$	6,302
Investment advisory and management fees		2,508			2,315
Deposit service fees		4,370			4,008
Gains on sales of residential real estate loans, net		853			922
Gains on sales of government guaranteed portions of loans, net		101			36
Capital markets revenue		16,385			34,215
Earnings on bank-owned life insurance		1,522			3,832
Debit card fees		3,136			3,037
Correspondent banking fees		1,313			1,022
Loan related fee income		1,994			1,798
Fair value loss on derivatives and trading securities		(777	)		(112	)
Other		521			372
Total noninterest income	$	39,007		$	57,747


Salaries and employee benefits	$	55,838		$	62,939
Occupancy and equipment expense		13,292			12,891
Professional and data processing fees		11,233			9,436
FDIC insurance, other insurance and regulatory fees		3,930			3,799
Loan/lease expense		788			529
Net cost of (income from) and gains/losses on operations of other real estate		41			(2	)
Advertising and marketing		3,359			3,048
Communication and data connectivity		564			719
Supplies		459			534
Bank service charges		1,316			1,190
Correspondent banking expense		643			668
Intangibles amortization		1,322			1,380
Payment card processing		1,141			1,352
Trust expense		770			804
Other		1,426			1,291
Total noninterest expense	$	96,122		$	100,578

Net income before income taxes	$	56,676		$	59,566
Federal and state income tax expense		1,860			3,726
Net income	$	54,816		$	55,840

Basic EPS	$	3.24		$	3.32
Diluted EPS	$	3.22		$	3.30


Weighted average common shares outstanding		16,914,663			16,799,081
Weighted average common and common equivalent shares outstanding		17,010,136			16,916,264

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			As of and for the Quarter Ended															For the Six Months Ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
				2025			2025			2024			2024			2024			2025			2024

			(dollars in thousands, except per share data)

		COMMON SHARE DATA
		Common shares outstanding		16,934,698			16,920,363			16,882,045			16,861,108			16,824,985
		Book value per common share (1)	$	62.04		$	60.44		$	59.08		$	57.92		$	55.65
		Tangible book value per common share (Non-GAAP) (2)	$	53.28		$	51.64		$	50.21		$	49.00		$	46.65
		Closing stock price	$	67.90		$	71.32		$	80.64		$	74.03		$	60.00
		Market capitalization	$	1,149,866		$	1,206,760		$	1,361,368		$	1,248,228		$	1,009,499
		Market price / book value		109.45	%		117.99	%		136.49	%		127.81	%		107.82	%
		Market price / tangible book value		127.45	%		138.11	%		160.59	%		151.07	%		128.62	%
		Earnings per common share (basic) LTM (3)	$	6.69		$	6.71		$	6.77		$	6.93		$	6.78
		Price earnings ratio LTM (3)	10.15 x			10.63 x			11.91 x			10.68 x			8.85 x
		TCE / TA (Non-GAAP) (4)		9.92	%		9.70	%		9.55	%		9.24	%		9.00	%


		CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
		Beginning balance	$	1,022,747		$	997,387		$	976,620		$	936,319		$	907,342
		Net income		29,019			25,797			30,225			27,785			29,114
		Other comprehensive income (loss), net of tax		(1,671	)		404			(9,628	)		12,057			(368	)
		Common stock cash dividends declared		(1,016	)		(1,015	)		(1,013	)		(1,012	)		(1,008	)
		Other (5)		1,475			174			1,183			1,471			1,239
		Ending balance	$	1,050,554		$	1,022,747		$	997,387		$	976,620		$	936,319


		REGULATORY CAPITAL RATIOS (6):
		Total risk-based capital ratio		14.26	%		14.18	%		14.10	%		13.87	%		14.21	%
		Tier 1 risk-based capital ratio		10.96	%		10.81	%		10.57	%		10.33	%		10.49	%
		Tier 1 leverage capital ratio		11.22	%		11.06	%		10.73	%		10.50	%		10.40	%
		Common equity tier 1 ratio		10.43	%		10.27	%		10.03	%		9.79	%		9.92	%


		KEY PERFORMANCE RATIOS AND OTHER METRICS
		Return on average assets (annualized)		1.27	%		1.14	%		1.34	%		1.24	%		1.33	%		1.21	%		1.30	%
		Return on average total equity (annualized)		11.15	%		10.14	%		12.15	%		11.55	%		12.63	%		10.65	%		12.32	%
		Net interest margin		2.97	%		2.95	%		2.95	%		2.90	%		2.82	%		2.95	%		2.82	%
		Net interest margin (TEY) (Non-GAAP)(7)		3.46	%		3.42	%		3.43	%		3.37	%		3.27	%		3.45	%		3.26	%
		Efficiency ratio (Non-GAAP) (8)		58.89	%		60.54	%		58.26	%		61.65	%		57.31	%		59.68	%		59.65	%
		Gross loans/leases held for investment / total assets		74.91	%		74.53	%		75.14	%		73.30	%		74.48	%		74.91	%		74.48	%
		Gross loans/leases held for investment / total deposits		94.61	%		92.96	%		96.05	%		95.38	%		97.69	%		94.61	%		97.69	%
		Effective tax rate		5.08	%		1.18	%		8.91	%		6.86	%		8.06	%		3.28	%		6.26	%
		Full-time equivalent employees (9)		1,001			972			980			976			988			1,001			988


		AVERAGE BALANCES
		Assets	$	9,155,473		$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	9,085,843		$	8,663,429
		Loans/leases		6,881,731			6,790,312			6,839,153			6,840,527			6,779,075			6,836,274			6,688,844
		Deposits		7,218,540			7,146,286			7,109,567			6,858,196			6,687,188			7,182,612			6,641,324
		Total stockholders’ equity		1,041,428			1,017,487			995,012			962,302			921,986			1,029,524			912,679

(1	)	Includes accumulated other comprehensive income (loss).
(2	)	Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
(3	)	LTM : Last twelve months.
(4	)	TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
(5	)	Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6	)	(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
(7	)	TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(8	)	See GAAP to Non-GAAP reconciliations.
(9	)	The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

		ANALYSIS OF NET INTEREST INCOME AND MARGIN

			For the Quarter Ended
			June 30, 2025						March 31, 2025						June 30, 2024
			Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

			(dollars in thousands)

		Fed funds sold	$	14,285	$	159	4.40	%	$	9,009	$	99	4.40	%	$	13,065	$	183	5.54	%
		Interest-bearing deposits at financial institutions		151,898		1,634	4.31	%		166,897		1,804	4.38	%		80,998		1,139	5.66	%
		Investment securities – taxable		401,657		4,805	4.79	%		400,779		4,588	4.59	%		377,747		4,286	4.53	%
		Investment securities – nontaxable (1)		893,753		12,872	5.76	%		843,476		11,722	5.57	%		704,761		9,462	5.37	%
		Restricted investment securities		34,037		622	7.23	%		30,562		534	6.99	%		43,398		869	7.92	%
		Loans (1)		6,881,731		110,245	6.43	%		6,790,312		107,439	6.42	%		6,779,075		112,719	6.69	%
		Total earning assets (1)	$	8,377,361	$	130,337	6.24	%	$	8,241,035	$	126,186	6.20	%	$	7,999,044	$	128,658	6.46	%

		Interest-bearing deposits	$	5,080,367	$	38,604	3.05	%	$	5,005,853	$	37,698	3.05	%	$	4,649,625	$	40,924	3.54	%
		Time deposits		1,193,035		12,409	4.17	%		1,204,593		12,690	4.27	%		1,091,870		12,128	4.47	%
		Short-term borrowings		1,420		15	4.23	%		1,839		18	3.97	%		1,622		21	5.18	%
		Federal Home Loan Bank advances		250,603		2,853	4.50	%		177,883		1,996	4.49	%		464,231		6,238	5.32	%
		Subordinated debentures		233,631		3,599	6.16	%		233,525		3,601	6.17	%		233,207		3,582	6.14	%
		Junior subordinated debentures		48,904		685	5.54	%		48,871		684	5.60	%		48,774		688	5.58	%
		Total interest-bearing liabilities	$	6,807,960	$	58,165	3.42	%	$	6,672,564	$	56,687	3.44	%	$	6,489,329	$	63,581	3.93	%

		Net interest income (1)			$	72,172					$	69,499					$	65,077
		Net interest margin (2)					2.97	%					2.95	%					2.82	%
		Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.46	%					3.42	%					3.27	%
		Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.45	%					3.41	%					3.26	%
		Cost of funds (4)					3.01	%					3.02	%					3.43	%


			For the Six Months Ended
			June 30, 2025						June 30, 2024
			Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

			(dollars in thousands)

		Fed funds sold	$	11,662	$	258	4.40	%	$	16,510	$	452	5.41	%
		Interest-bearing deposits at financial institutions		159,356		3,438	4.35	%		86,277		2,339	5.45	%
		Investment securities – taxable		401,220		9,393	4.69	%		375,644		8,546	4.54	%
		Investment securities – nontaxable (1)		868,754		24,594	5.67	%		695,365		18,813	5.41	%
		Restricted investment securities		32,309		1,156	7.12	%		40,742		1,543	7.49	%
		Loans (1)		6,836,274		217,684	6.42	%		6,688,844		220,392	6.63	%
		Total earning assets (1)	$	8,309,575	$	256,523	6.22	%	$	7,903,382	$	252,085	6.41	%

		Interest-bearing deposits	$	5,041,914	$	76,302	3.05	%	$	4,589,479	$	80,027	3.51	%
		Time deposits		1,198,782		25,098	4.22	%		1,099,746		24,473	4.48	%
		Short-term borrowings		1,629		33	4.05	%		1,688		44	5.19	%
		Federal Home Loan Bank advances		214,444		4,849	4.50	%		409,725		10,977	5.30	%
		Subordinated debentures		233,579		7,201	6.17	%		233,154		7,062	6.06	%
		Junior subordinated debentures		48,888		1,369	5.57	%		48,758		1,381	5.60	%
		Total interest-bearing liabilities	$	6,739,236	$	114,852	3.43	%	$	6,382,550	$	123,964	3.90	%

		Net interest income (1)			$	141,671					$	128,121
		Net interest margin (2)					2.95	%					2.82	%
		Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.45	%					3.26	%
		Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.44	%					3.24	%
		Cost of funds (4)					3.01	%					3.39	%


(1	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(2	)	See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3	)	TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(4	)	Cost of funds includes the effect of noninterest-bearing deposits.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

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

			(dollars in thousands, except per share data)

		ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
		Beginning balance	$	90,354		$	89,841		$	86,321		$	87,706		$	84,470
		Change in ACL for transfer of loans to LHFS		–			–			93			(1,812	)		498
		Credit loss expense		4,667			4,743			6,832			3,828			4,343
		Loans/leases charged off		(6,490	)		(4,944	)		(4,787	)		(3,871	)		(1,751	)
		Recoveries on loans/leases previously charged off		201			714			1,382			470			146
		Ending balance	$	88,732		$	90,354		$	89,841		$	86,321		$	87,706


		NONPERFORMING ASSETS
		Nonaccrual loans/leases	$	42,482		$	47,259		$	40,080		$	33,480		$	33,546
		Accruing loans/leases past due 90 days or more		7			356			4,270			1,298			87
		Total nonperforming loans/leases		42,489			47,615			44,350			34,778			33,633
		Other real estate owned		62			402			661			369			369
		Other repossessed assets		113			122			543			542			512
		Total nonperforming assets	$	42,664		$	48,139		$	45,554		$	35,689		$	34,514


		ASSET QUALITY RATIOS
		Nonperforming assets / total assets		0.46	%		0.53	%		0.50	%		0.39	%		0.39	%
		ACL for loans and leases / total loans/leases held for investment		1.28	%		1.32	%		1.32	%		1.30	%		1.33	%
		ACL for loans and leases / nonperforming loans/leases		208.84	%		189.76	%		202.57	%		248.21	%		260.77	%
		Net charge-offs as a % of average loans/leases		0.09	%		0.06	%		0.05	%		0.05	%		0.02	%



		INTERNALLY ASSIGNED RISK RATING (1)
		Special mention	$	68,621		$	55,327		$	73,636		$	80,121		$	85,096
		Substandard (2)		81,040			85,033			84,930			70,022			80,345
		Doubtful (2)		–			–			–			–			–
		Total Criticized loans (3)	$	149,661		$	140,360		$	158,566		$	150,143		$	165,441

		Classified loans as a % of total loans/leases (2)		1.17	%		1.25	%		1.25	%		1.03	%		1.17	%
		Total Criticized loans as a % of total loans/leases (3)		2.16	%		2.06	%		2.34	%		2.20	%		2.41	%

(1	)	Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.
(2	)	Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
(3	)	Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 , regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			For the Quarter Ended									For the Year Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
		SELECT FINANCIAL DATA – SUBSIDIARIES		2025			2025			2024			2025			2024
			(dollars in thousands)

		TOTAL ASSETS
		Quad City Bank and Trust (1)	$	2,662,450		$	2,777,634		$	2,559,049
		m2 Equipment Finance, LLC		242,722			276,096			359,012
		Cedar Rapids Bank and Trust		2,664,293			2,617,143			2,428,267
		Community State Bank		1,605,966			1,583,646			1,531,109
		Guaranty Bank		2,365,944			2,331,944			2,369,754

		TOTAL DEPOSITS
		Quad City Bank and Trust (1)	$	2,309,942		$	2,397,047		$	2,100,520
		Cedar Rapids Bank and Trust		1,884,370			1,883,952			1,721,564
		Community State Bank		1,272,296			1,238,307			1,188,551
		Guaranty Bank		1,866,749			1,840,774			1,791,448

		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)	$	2,032,168		$	2,041,181		$	2,107,605
		m2 Equipment Finance, LLC		250,019			284,983			363,897
		Cedar Rapids Bank and Trust		1,852,316			1,790,065			1,736,438
		Community State Bank		1,206,735			1,197,005			1,162,686
		Guaranty Bank		1,833,706			1,794,915			1,847,658

		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)		88	%		85	%		100	%
		Cedar Rapids Bank and Trust		98	%		95	%		101	%
		Community State Bank		95	%		97	%		98	%
		Guaranty Bank		98	%		98	%		103	%


		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)		76	%		73	%		82	%
		Cedar Rapids Bank and Trust		70	%		68	%		72	%
		Community State Bank		75	%		76	%		76	%
		Guaranty Bank		78	%		77	%		78	%

		ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
		Quad City Bank and Trust (1)		1.32	%		1.44	%		1.43	%
		m2 Equipment Finance, LLC		4.26	%		4.37	%		3.86	%
		Cedar Rapids Bank and Trust		1.35	%		1.38	%		1.38	%
		Community State Bank		1.09	%		1.08	%		1.08	%
		Guaranty Bank		1.29	%		1.30	%		1.13	%

		RETURN ON AVERAGE ASSETS (ANNUALIZED)
		Quad City Bank and Trust (1)		1.24	%		1.31	%		0.88	%		1.28	%		0.84	%
		Cedar Rapids Bank and Trust		2.36	%		2.14	%		2.94	%		2.25	%		3.01	%
		Community State Bank		1.31	%		1.07	%		1.26	%		1.19	%		1.25	%
		Guaranty Bank		0.85	%		0.72	%		1.42	%		0.79	%		1.15	%

		NET INTEREST MARGIN PERCENTAGE (2)
		Quad City Bank and Trust (1)		3.45	%		3.45	%		3.39	%		3.45	%		3.35	%
		Cedar Rapids Bank and Trust		3.99	%		4.00	%		3.75	%		4.00	%		3.76	%
		Community State Bank		3.87	%		3.78	%		3.72	%		3.83	%		3.74	%
		Guaranty Bank (3)		3.11	%		3.05	%		2.99	%		3.08	%		2.99	%

		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Community State Bank	$	(1	)	$	(1	)	$	(1	)	$	(2	)	$	(2	)
		Guaranty Bank		118			218			301			336			697
		QCR Holdings, Inc. (4)		(33	)		(33	)		(32	)		(66	)		(64	)

(1	)	Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
(2	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(3	)	Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2025, 2.91% for the quarter ended March 31, 2025 and 2.86% for the quarter ended June 30, 2024.
(4	)	Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			As of
			June 30,			March 31,			December 31,			September 30,			June 30,
		GAAP TO NON-GAAP RECONCILIATIONS		2025			2025			2024			2024			2024
			(dollars in thousands, except per share data)
		TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

		Stockholders’ equity (GAAP)	$	1,050,554		$	1,022,747		$	997,387		$	976,620		$	936,319
		Less: Intangible assets		148,333			148,995			149,657			150,347			151,468
		Tangible common equity (non-GAAP)	$	902,221		$	873,752		$	847,730		$	826,273		$	784,851

		Total assets (GAAP)	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991
		Less: Intangible assets		148,333			148,995			149,657			150,347			151,468
		Tangible assets (non-GAAP)	$	9,093,998		$	9,003,784		$	8,876,373		$	8,938,218		$	8,720,523

		Tangible common equity to tangible assets ratio (non-GAAP)		9.92	%		9.70	%		9.55	%		9.24	%		9.00	%



(1	)	This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

		GAAP TO NON-GAAP RECONCILIATIONS	For the Quarter Ended															For the Six Months Ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		ADJUSTED NET INCOME (1)		2025			2025			2024			2024			2024			2025			2024
			(dollars in thousands, except per share data)

		Net income (GAAP)	$	29,019		$	25,797		$	30,225		$	27,785		$	29,114		$	54,816		$	55,840

		Less non-core items (post-tax) (2):
		Income:
		Fair value loss on derivatives, net		(397	)		(156	)		(2,594	)		(542	)		(145	)		(553	)		(288	)
		Total non-core income (non-GAAP)	$	(397	)	$	(156	)	$	(2,594	)	$	(542	)	$	(145	)	$	(553	)	$	(288	)

		Expense:
		Goodwill impairment		–			–			–			431			–			–			–
		Restructuring expense		–			–			–			1,544			–			–			–
		Total non-core expense (non-GAAP)	$	–		$	–		$	–		$	1,975		$	–		$	–		$	–


		Adjusted net income (non-GAAP) (1)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		ADJUSTED EARNINGS PER COMMON SHARE (1)

		Adjusted net income (non-GAAP) (from above)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		Weighted average common shares outstanding		16,928,542			16,900,785			16,871,652			16,846,200			16,814,814			16,914,663			16,799,081
		Weighted average common and common equivalent shares outstanding		17,006,282			17,013,992			17,024,481			16,982,400			16,921,854			17,010,136			16,916,264

		Adjusted earnings per common share (non-GAAP):
		Basic	$	1.74		$	1.54		$	1.95		$	1.80		$	1.74		$	3.27		$	3.34
		Diluted	$	1.73		$	1.53		$	1.93		$	1.78		$	1.73		$	3.26		$	3.32

		ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

		Adjusted net income (non-GAAP) (from above)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		Average Assets	$	9,155,473		$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	9,085,843		$	8,663,429

		Adjusted return on average assets (annualized) (non-GAAP)		1.29	%		1.15	%		1.45	%		1.35	%		1.33	%		1.22	%		1.30	%
		Adjusted return on average equity (annualized) (non-GAAP)		11.30	%		10.20	%		13.19	%		12.60	%		12.69	%		10.76	%		12.30	%

		NET INTEREST MARGIN (TEY) (3)

		Net interest income (GAAP)	$	62,082		$	59,986		$	61,204		$	59,722		$	56,163		$	122,068		$	110,862
		Plus: Tax equivalent adjustment (4)		10,090			9,513			9,698			9,544			8,914			19,603			17,259
		Net interest income – tax equivalent (non-GAAP)	$	72,172		$	69,499		$	70,902		$	69,266		$	65,077		$	141,671		$	128,121
		Less: Acquisition accounting net accretion		84			184			471			463			268			268			631
		Adjusted net interest income	$	72,088		$	69,315		$	70,431		$	68,803		$	64,809		$	141,403		$	127,490

		Average earning assets	$	8,377,361		$	8,241,035		$	8,241,190		$	8,183,196		$	7,999,044		$	8,309,575		$	7,903,382

		Net interest margin (GAAP)		2.97	%		2.95	%		2.95	%		2.90	%		2.82	%		2.97	%		2.82	%
		Net interest margin (TEY) (non-GAAP)		3.46	%		3.42	%		3.43	%		3.37	%		3.27	%		3.45	%		3.26	%
		Adjusted net interest margin (TEY) (non-GAAP)		3.45	%		3.41	%		3.40	%		3.34	%		3.26	%		3.44	%		3.24	%

		EFFICIENCY RATIO (5)

		Noninterest expense (GAAP)	$	49,583		$	46,539		$	53,499		$	53,565		$	49,888		$	96,122		$	100,578

		Net interest income (GAAP)	$	62,082		$	59,986		$	61,204		$	59,722		$	56,163		$	122,068		$	110,862
		Noninterest income (GAAP)		22,115			16,892			30,625			27,157			30,889			39,007			57,747
		Total income	$	84,197		$	76,878		$	91,829		$	86,879		$	87,052		$	161,075		$	168,609

		Efficiency ratio (noninterest expense/total income) (non-GAAP)		58.89	%		60.54	%		58.26	%		61.65	%		57.31	%		59.68	%		59.65	%
		Adjusted efficiency ratio (core noninterest expense/core total income) (non-GAAP)		58.54	%		60.38	%		56.25	%		58.45	%		57.19	%		59.42	%		59.52	%


(1	)	Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
(2	)	Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.
(3	)	Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(4	)	Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
(5	)	Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.

The MIL Network –

July 24, 2025

MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025 Highlights

Net income of $29.0 million, or $1.71 per diluted share
Adjusted net income¹of $29.4 million, or $1.73 per diluted share
NIM TEY¹expanded four basis points to 3.46%
Adjusted ROAA¹of 1.29% annualized
Capital markets revenue growth of 51% on a linked-quarter basis
Nonperforming assets declined $5.5 million, or 11%
Tangible book value per share¹grew $1.64, or 13% annualized
TCE/TA ratio¹improved 22 basis points to 9.92%

MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

Adjusted net income¹ and adjusted diluted EPS¹ for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

	For the Quarter Ended
	June 30,		March 31,		June 30,
$ in millions (except per share data)	2025		2025		2024
Net Income	$	29.0	$	25.8	$	29.1
Diluted EPS	$	1.71	$	1.52	$	1.72
Adjusted Net Income¹	$	29.4	$	26.0	$	29.3
Adjusted Diluted EPS¹	$	1.73	$	1.53	$	1.73