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Category: KB

  • MIL-OSI Africa: Hope for Liberia’s youth as country pioneers African Development Bank-financed Youth Entrepreneurship Investment Bank

    Source: APO

    • Program will turn job seekers into job creators – Liberian President Boakai
    • The future of Liberia’s youth cannot be left to hustling – Dr. Adesina

    Liberia has become the first country to launch an African Development Bank Group initiative (www.AfDB.org) that will help tackle youth unemployment among African youth.

    President of the Republic of Liberia, Joseph Nyuma Boakai Sr was joined in the capital Monrovia by the Bank Group’s President, Dr. Akinwumi A. Adesina for the official launch of the first Youth Entrepreneurship Investment Bank (YEIB) (https://apo-opa.co/413UWzR), on Tuesday 22 July.

    The Youth Entrepreneurship Investment Banks will promote private sector-led inclusive economic development, by creating entrepreneurship opportunities for young Africans aged 18-35. According to the Bank’s Country Focus Report 2025 (https://apo-opa.co/3GRnm9E), for Liberia, underemployment and informal employment have long undermined the country’s ability to harness a key demographic strength. 

    To address these challenges, Liberia’s Youth Entrepreneurship Investment Bank is expected to finance 30,000 youth-led businesses, create 120,000 direct and indirect jobs, contribute $80 million to government revenues through taxes, and unlock up to $500 million in additional lending to youth-owned businesses across the country.

    The Youth Bank is being jointly financed by the African Development Fund—the concessional lending arm of the African Development Bank Group ($15.9 million)—and the Government of Liberia ($1.2 million in in-kind contributions).

    “[The YEIB] speaks directly to the heart of our future because over sixty percent of our population is under the age of thirty. This program gives hope to our young people by turning them from job seekers into job creators,” said President Boakai. “It will provide financing, mentorship, and the skills they need to succeed in agriculture, technology, the knowledge based economy, and other emerging sectors.”

    “Liberia must not watch as its best assets—its youth—falter,” Adesina said. “The future of Liberia’s youth cannot be left to ‘hustling.’” He added that with recruitment ongoing, and licensing expected to be completed shortly, the Liberian YEIB is scheduled to commence operations in early 2026, with a focus on “critical sectors with immense opportunities for the youth, including agriculture, value addition with agribusiness, digital services, mining and tourism.”

    Youth entrepreneurship banks have also been approved for Nigeria (https://apo-opa.co/4kQEeeF), Ethiopia (https://apo-opa.co/417MuzC), and Cote d’Ivoire (https://apo-opa.co/3H1eA8W), representing a growing commitment to enhancing private sector development through improved financing for entrepreneurs, on a continent where three-quarters of the population are below the age of 35.   

    The Bank has since 1967 invested more than $1.02 billion in 72 projects in Liberia, and as of February 2024, it had an active portfolio of 18 sovereign operations worth $314.77 million, focusing primarily on transport infrastructure, energy development (https://apo-opa.co/45ev1Il), and agricultural transformation. These investments include the Mano River Union road network (https://apo-opa.co/44WwNfW) connecting Liberia with neighbouring countries, regional power interconnection initiatives, and programs supporting smallholder farmers across the country.

    The Bank’s operations in Liberia are funded through multiple sources, with the African Development Fund—the concessional lending arm of the Bank Group—providing most of the financing, supplemented by the Transition Support Facility (https://apo-opa.co/4nZiwrH) and various specialized funds including the Nigeria Trust Fund (https://apo-opa.co/3UtSnn2).

    Read President Boakai’s speech at the YEIB launch here (https://apo-opa.co/4m7qBbI).

    Read Dr. Adesina’s speech here (https://apo-opa.co/3H11fNR).

    Distributed by APO Group on behalf of African Development Bank Group (AfDB).

    Media Contacts:
    Natalie Nkembuh and Tolu Ogunlesi
    Communication and Media Relations Department
    media@afdb.org

    About the African Development Bank Group:
    The African Development Bank Group is Africa’s leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information: www.AfDB.org

    Media files

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    MIL OSI Africa –

  • 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 –

  • 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 –

  • MIL-OSI Security: Defense News in Brief: Next-gen TOC-L systems announced to boost agile C2 capabilities

    Source: United States Airforce

    The DAF has announced the upgrade of the Tactical Operations Center-Light capability with its Major Release 2 prototype, designed to advance contributions to Combined Joint All-Domain Command and Control.

    ARLINGTON, Va. (AFNS) —  

    The Department of the Air Force recently announced the upgrade of the Tactical Operations Center-Light capability with its Major Release 2 prototype, July 22.

    This rapid prototyping effort, developed with support from long-standing industry partners, will deliver more than 40 next-generation TOC-L systems designed to advance the DAF’s contribution to Combined Joint All-Domain Command and Control.

    “This has been a major push from our team and industry partners to see the TOC-L MR2 prototype developed with all the lessons learned from MR1,” said Maj. Gen. Luke Cropsey, DAF’s Program Executive Officer for Command, Control, Communications and Battle Management. “This achievement truly embodies our agile acquisition approach, setting the stage for a phased deployment where we can rapidly field operationally relevant upgrades based on feedback from the field.”

    Managed by DAF PEO C3BM’s Advanced Battle Management System Division, the TOC-L integrates data from multiple sources to create a synchronized air picture. The MR2 prototype represents a crucial leap forward for the TOC-L. While 16 MR1 prototypes focused on minimizing the system’s physical footprint, MR2 also prioritizes enhanced integration capabilities.

    “The MR2 aims to enhance portability, survivability, mobility and ease of use through reduced size, weight, power, while featuring improved usability and maintainability to reduce training time and improve operational readiness,” said Lt. Col. Micah Graber, ABMS Deployable Systems Branch materiel leader. “The system will also feature ABMS Digital Infrastructure and Cloud-Based Command and Control software capability for enhanced enterprise interoperability and expanded data access within the DAF BATTLE NETWORK.”  

    This shift from maneuverability to integration leveraged insights gained from the MR1 prototype’s first operational deployment to Combined Joint Task Force-Horn of Africa, which provided real-world capability assessment. Along with data from prior experiments, recent participation in the U.S. Army’s Project Convergence Capstone 5 also played a vital role in directly informing MR2 requirements, focusing on the system’s integration with other key technologies.   

    “The plan for the MR2 prototypes builds upon the lessons learned from the original 16,” said Stephen Ciulla, ABMS TOC-L program manager. “The potential use cases and operational possibilities have expanded over the last 18 months and MR2 development includes more rigorous testing and design validation to ensure that functional and operational requirements are met.”

    The MR2 prototype will serve as the execution arm of the DAF BATTLE NETWORK by utilizing ABMS DI to communicate to various sensors and C2 systems, according to Ciulla. This bridges communication gaps between disparate systems, facilitating seamless cross-domain integration and interoperability. CBC2 functionality additionally employs advanced software and artificial intelligence to assist battle managers in prioritizing and executing actions, while advancing human-machine teaming.

    “MR2’s integration advancements, enabled by ABMS DI and CBC2, will enable seamless information sharing and improved coordination among warfighters in contested environments, leading to a more cohesive and effective force,” Graber said. “This enhanced interoperability translates into tangible operational advancements by allowing for better-informed decisions and more decisive actions across all levels – tactical, operational and strategic.”

    The TOC-L prototype is a critical component of the DAF BATTLE NETWORK, contributing to enhanced situational awareness and decision-making across the battlespace. The MR2 prototype underscores the Air Force’s commitment to delivering cutting-edge technology to the warfighter, ensuring decisive advantage in future conflicts.

    MIL Security OSI –

  • 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 –

  • MIL-OSI USA: Risch Introduces Bill to Strengthen Local, Federal Immigration Enforcement Efforts

    US Senate News:

    Source: United States Senator for Idaho James E Risch

    WASHINGTON – U.S. Senator Jim Risch (R-Idaho) introduced today the 287(g) Program Protection Act to streamline and strengthen partnerships between local law enforcement and federal immigration authorities.

    “President Trump’s enforcement of our immigration laws has brought encounters at the southern border to a screeching halt,” said Risch. “To finish cleaning up the Biden administration’s mess, we must empower our local law enforcement to assist ICE in identifying and detaining the illegal immigrants in our communities.”

    Risch is joined by U.S. Senators Mike Crapo (R-Idaho), Mike Lee (R-Utah), Roger Marshall (R-Kansas), Jim Justice (R-W.Va.), Ron Johnson (R-Wis.), and Rick Scott (R-Fla.).

    The 287(g) Program Protection Act has received support from Idaho’s Kootenai County Sheriff Robert Norris. 

    “In Kootenai County, we are committed to enforcing the law impartially and responsibly. The 287(g) program offers a structured, transparent framework that supports this mission,” said Kootenai County Sheriff Bob Norris. “Senator Risch’s leadership in furthering this program by attempting to streamline the process and provide local agencies a fair and timely opportunity to participate in federal enforcement efforts underscores his dedication to public safety, border integrity, and the rule of law. I stand with Senator Risch in urging Congress to advance this legislation and preserve the 287(g) program as a vital component of our national security efforts.”

    The 287(g) program enables state and local law enforcement agencies to partner with U.S. Immigration and Customs Enforcement (ICE) to carry out critical immigration functions. 

    Under the Biden administration, the Department of Homeland Security (DHS) refused to process new 287(g) program applications, creating a significant backlog, and offered little transparency to the jurisdictions seeking participation.

    In January 2025, President Trump issued an executive order to address the backlog and approve hundreds of 287(g) agreements, allowing local officers to enforce immigration laws.

    The 287(g) Program Protection Act would:

    • Require DHS to approve or deny 287(g) applications within 90 days;
    • Require DHS to provide written justification to Congress for denied applications; and
    • Prohibit DHS from terminating any existing 287(g) agreement without cause or prior notice to Congress.

    The 287(g) Program Protection Act was introduced in the House of Representatives by Representative Michael Cloud (R-Texas).

    MIL OSI USA News –

  • 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.

    -30-

    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI USA: Rep. Norcross Honors Pilots and Flight Attendants Who Saved His Life

    Source: United States House of Representatives – Congressman Donald Norcross (1st District of New Jersey)

    WASHINGTON, DC — Today, Congressman Donald Norcross (D-NJ) honored the pilots and flight attendants who saved his life: Captain Michael Tibaldo, First Officer James Kim, Flight Attendant Donnell Mitchell, and Flight Attendant Jaclyn Curry, all of whom are unionized workers who are members of Teamsters Local 357 and Teamsters Local 135. General President of the International Brotherhood of Teamsters, Sean O’Brien, and General Secretary-Treasurer at Teamsters, Fred Zuckerman, were also in attendance.

    During the event, Congressman Donald Norcross presented the Republic Airways pilots and flight attendants with framed copies of Congressional Record statements detailing their heroic actions.

    “I’m incredibly grateful to Captain Michael Tibaldo, First Officer James Kim, Flight Attendant Donnell Mitchell, and Flight Attendant Jaclyn Curry for saving my life,” said Congressman Donald Norcross. “Every minute matters in a medical emergency, and I’m lucky that the Republic Airlines crew was trained, equipped, and ready to respond when I was in my hour of need. It’s an honor to present the airline crew with an official Congressional Record of their heroic actions, and I once again thank them for their bravery.”

    On April 6, 2025, Congressman Donald Norcross experienced a sudden medical emergency while traveling on Republic Flight 4711. The crew members and airline pilots reacted swiftly to provide the Congressman with immediate medical attention, divert the airplane, and transport him to the University of North Carolina (UNC) Rex Hospital. The Congressman was later diagnosed with sepsis.

    Thanks to the pilots, flight attendants, doctors, and nurses at UNC Rex and Cooper University Hospital, Congressman Donald Norcross was able to make a full recovery from this medical emergency.

    ###

    MIL OSI USA News –

  • 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 –

  • MIL-OSI Security: New Jersey Construction Company Owner Sentenced for Tax Evasion

    Source: United States Attorneys General

    A New Jersey construction company owner was sentenced yesterday to 15 months in prison for evading employment tax penalties assessed against him.

    The following is according to court documents and statements made in court: Joseph Caravella, of Randolph, owned several masonry companies in New Jersey. From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery penalties against Caravella for causing three masonry businesses that he owned to not pay their federal employment taxes. The timely payment of federal employment taxes is critical to the functioning of the U.S. government because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year. Congress empowered the IRS to impose a penalty equal to the amount of the unpaid taxes — called a Trust Fund Recovery Penalty — against any responsible individual who fails to ensure that these taxes are paid timely. Caravella pleaded guilty to attempting to evade these Trust Fund Recovery penalties.  

    From around March 2008 through April 2019, Caravella sought to evade the payment of these penalties by placing companies that he controlled in the names of nominee owners and avoiding the use of a bank account in his own name to prevent the IRS from levying the funds. Also during that time, Caravella continued to cause his businesses not to pay employment taxes, resulting in an additional loss of $1.2 million to the IRS.

    In total, Carvalla caused a tax loss to the IRS of $1,885,519.39.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement.

    IRS Criminal Investigation is investigating the case.

    Trial Attorney Hayter L. Whitman of the Tax Division and Assistant U.S. Attorney Christopher Fell for the District of New Jersey are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Supports Seattle’s Motion to Terminate Police Department Consent Decree

    Source: United States Attorneys General

    The Justice Department’s Civil Rights Division today announced that it has filed a response in support of the City of Seattle’s Motion to Terminate the Consent Decree in United States v. City of Seattle. The decree required reforms in the Seattle Police Department’s practices regarding use of force, crisis intervention, stops and detentions, supervision and accountability. With support from the Justice Department, the Seattle Police Department (SPD) achieved sustained substantial compliance.

    The Justice Department brought this case pursuant to the Violent Crime Control and Law Enforcement Act of 1994 and the Omnibus Crime Control and Safe Streets Act of 1968. The U.S. Attorney’s Office’s Civil Division and the Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division jointly investigated and found that the Seattle Police Department (SPD) had engaged in a pattern or practice of unnecessary or excessive force that violated the Constitution and federal law. The U.S. District Court for the Western District of Washington entered the consent decree in 2012.

    “We congratulate the Seattle Police Department on its achievement of sustained substantial compliance with this thirteen-year-old consent decree,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Civil Rights Division will continue to work with police departments across the country to help make America’s communities safe again.”

    “The U.S. Attorney’s Office, Western District of Washington, believes the district court should terminate the consent decree and monitorship, which have been in place for 13 years,” said Acting U.S. Attorney Teal Luthy Miller for the Western District of Washington. “Seattle has been held up as an example of successful police reform and has done recent work on its crowd control policies and accountability systems. We trust it will continue to lead the way on constitutional policing.”

    MIL Security OSI –

  • 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 –

  • MIL-OSI: United Fire Group, Inc. announces its second quarter 2025 earnings call

    Source: GlobeNewswire (MIL-OSI)

    CEDAR RAPIDS, Iowa, July 23, 2025 (GLOBE NEWSWIRE) — United Fire Group, Inc. (Nasdaq: UFCS) (UFG) announced today that its second quarter 2025 earnings results will be released after the market closes on Tuesday, August 5, 2025. An earnings call will be held on Wednesday, August 6, 2025, at 9 a.m. CT to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the company’s second quarter 2025 results.

    Teleconference: Dial-in information for the call is toll-free 1-844-492-3723 (international 1-412-542-4184). Participants should request to join the United Fire Group call. The event will be archived and available for digital replay through August 13, 2025. The replay access information is toll-free 1-877-344-7529 (international 1-412-317-0088); access code no. 5978627.

    Webcast: A webcast of the teleconference can be accessed at https://ir.ufginsurance.com/events-and-presentations/ or https://event.choruscall.com/mediaframe/webcast.html?webcastid=R1wjMA18. The archived audio webcast will be available for one year.

    Transcript: A transcript of the teleconference will be available on the company’s website soon after the completion of the teleconference.

    About UFG:

    Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com.

    Contact: Investor relations at ir@unitedfiregroup.com.

    The MIL Network –

  • MIL-OSI: United Fire Group, Inc. announces its second quarter 2025 earnings call

    Source: GlobeNewswire (MIL-OSI)

    CEDAR RAPIDS, Iowa, July 23, 2025 (GLOBE NEWSWIRE) — United Fire Group, Inc. (Nasdaq: UFCS) (UFG) announced today that its second quarter 2025 earnings results will be released after the market closes on Tuesday, August 5, 2025. An earnings call will be held on Wednesday, August 6, 2025, at 9 a.m. CT to allow securities analysts, shareholders and other interested parties the opportunity to hear management discuss the company’s second quarter 2025 results.

    Teleconference: Dial-in information for the call is toll-free 1-844-492-3723 (international 1-412-542-4184). Participants should request to join the United Fire Group call. The event will be archived and available for digital replay through August 13, 2025. The replay access information is toll-free 1-877-344-7529 (international 1-412-317-0088); access code no. 5978627.

    Webcast: A webcast of the teleconference can be accessed at https://ir.ufginsurance.com/events-and-presentations/ or https://event.choruscall.com/mediaframe/webcast.html?webcastid=R1wjMA18. The archived audio webcast will be available for one year.

    Transcript: A transcript of the teleconference will be available on the company’s website soon after the completion of the teleconference.

    About UFG:

    Founded in 1946 as United Fire & Casualty Company, UFG, through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. The company is licensed as a property and casualty insurer in 50 states and the District of Columbia, and is represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of “A-” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG, visit www.ufginsurance.com.

    Contact: Investor relations at ir@unitedfiregroup.com.

    The MIL Network –

  • 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 –

  • 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 –

  • 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 –

  • 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 –

  • MIL-OSI: Goosehead Insurance, Inc. Announces Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    –   Total Revenue Increased 20% and Core Revenue* Grew 18% over the Prior-Year Period –

    –   Total Written Premium increased 18% to $1.2 billion over the Prior-Year Period –

    –   Net Income of $8.3 million versus Net Income of $10.9 million a year ago –

    –   Adjusted EBITDA* of $29.2 million versus $24.7 million in the Prior-Year Period –

    WESTLAKE, Texas, July 23, 2025 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2025.

    Second Quarter 2025 Highlights

    • Total Revenues grew 20% over the prior-year period to $94.0 million in the second quarter of 2025
    • Second quarter Core Revenues* of $86.8 million increased 18% over the prior-year period
    • Second quarter net income of $8.3 million decreased from net income of $10.9 million a year ago
    • EPS of $0.20 per share decreased from $0.25 in the prior-year period, and Adjusted EPS* of $0.49 per share increased 14% over the prior-year period
    • Net Income Margin for the second quarter was 9%
    • Adjusted EBITDA* of $29.2 million increased from $24.7 million in the prior-year period
    • Adjusted EBITDA Margin* decreased versus the prior-year period to 31%
    • Total Written Premiums placed for the second quarter increased 18% over the prior-year period to $1.2 billion.
    • Policies in Force increased 13% from the prior-year period to approximately 1,793,000
    • Corporate agent headcount of 479 was up 53% compared to the prior-year period
    • Total franchise producers of 2,085 increased 5% from the prior-year period

    “We delivered another strong quarter result while making substantial investments in people and technology that are laying the foundation for significant transformation, efficiency and future growth,” said Mark Miller, President and CEO. “In the second quarter we delivered premium growth of 18%, total revenue growth of 20%, core revenue growth of 18%, net income decline of 24% and adjusted EBITDA growth of 18% with net income margin of 9% and adjusted EBITDA margin of 31%. We are adding productive capacity to our corporate and franchise networks in varied geographies, building new go-to-market motions through enterprise sales and partnerships, and developing new technologies to engage with clients and partners in the ways they find most optimal – be it through agent interaction or digitally direct. We continue our work to become the largest distributor of personal lines in our founder’s life-time and I am extremely proud to be part of this incredible team executing towards that objective.”

    *Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

    Second Quarter 2025 Results
    For the second quarter of 2025, revenues were $94.0 million, an increase of 20% compared to the corresponding period in 2024. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other franchise revenues, were $86.8 million, a 18% increase from $73.4 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. During the quarter, we recovered $4.0 million of renewal commission and royalty fees, from an existing large carrier partner which raised the commission for all of their existing business with Goosehead. This increased commission rate should result in an ongoing benefit to our existing renewal book of approximately $1.5 million in the second half of the year. Core Revenue growth was driven by increased producer count, improved franchise productivity, client retention of 84%, and moderating premium rate increases. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 18% in the second quarter.

    Total operating expenses for the second quarter of 2025 were $78.4 million, up from $62.7 million in the prior-year period. Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses* for the second quarter of 2025 were $64.9 million, up 21% from $53.4 million in the prior-year period. Employee compensation and benefits increased to $50.4 million from $42.6 million in the prior-year period. Employee compensation and benefits, excluding equity-based compensation* increased to $44.4 million from $35.9 million in the prior-year period. The increases were primarily due to investments in corporate producers and our service and technology functions. Equity-based compensation decreased to $6.0 million for the period, compared to $6.6 million in the prior-year period. General and administrative expenses increased to $24.6 million from $16.9 million in the prior-year period. General and administrative expenses, excluding impairment*, increased to $20.0 million from $16.9 million in the prior-year period. The increases were primarily due to investments in technology and systems to drive growth and continue to improve the client experience. Bad debt expense of $0.6 million decreased from $0.7 million in the prior-year period. During the second quarter, the Company identified three office leases that would be exited or subleased. As a result, the Company recorded impairment expense for the second quarter of 2025 of $4.7 million.

    Net income in the second quarter of 2025 was $8.3 million versus net income of $10.9 million in the prior-year period. Earnings per share and Net Income Margin for the second quarter of 2025 were $0.20 and 9%, respectively. Adjusted EPS for the second quarter of 2025, which excludes equity-based compensation and impairment expense, was $0.49 per share. Total Adjusted EBITDA was $29.2 million for the second quarter of 2025 compared to $24.7 million in the prior-year period. Adjusted EBITDA Margin of 31% decreased compared to the prior-year period.

    *Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses; Employee compensation and benefits, excluding equity-based compensation; and General and administrative expenses, excluding impairment are non-GAAP measures. For the definition and reconciliation of each non-GAAP measure, see “Reconciliation of Non-GAAP Measures to GAAP” below.

    Liquidity and Capital Resources
    As of June 30, 2025, the Company had cash and cash equivalents of $92.4 million. We had an unused line of credit of $75.0 million as of June 30, 2025. Total outstanding term note payable balance was $299.3 million as of June 30, 2025. During the quarter ended June 30, 2025, the Company repurchased and retired 6 thousand shares at an average share price of $94.51. As of June 30, 2025, $99.5 million remains available under the share repurchase authorization.

    On July 9, 2025, the Company successfully completed the repricing of its existing $299.3 million term loan B maturing on January 8, 2032. The term loan facility will bear interest at a rate of SOFR plus 3.00%, representing a 50 basis point reduction from the prior term loan interest rate

    2025 Outlook
    The Company’s guidance for full year 2025 is as follows:

    • Total written premiums placed for 2025 are expected to be between $4.38 billion and $4.65 billion, representing growth of 15% on the low end of the range to 22% on the high end of the range.
    • Total revenues for 2025 are expected to be between $350 million and $385 million, representing growth of 11% on the low end of the range to 22% on the high end of the range.

    Conference Call Information
    Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

    To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

    In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.

    A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

    About Goosehead
    Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 200 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

    Forward-Looking Statements
    This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

    Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

    Contacts
    Investor Contact:
    Dan Farrell
    Goosehead Insurance – VP Capital Markets
    Phone: (214) 838-5290
    Email: dan.farrell@goosehead.com; IR@goosehead.com;

    PR Contact:
    Mission North for Goosehead Insurance
    Email: goosehead@missionnorth.com; PR@goosehead.com

     
    Goosehead Insurance, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In thousands, except per share amounts)
             
        Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025   2024   2025   2024
    Revenues:                
    Commissions and agency fees   $ 38,076     $ 31,619     $ 67,499     $ 57,840  
    Franchise revenues     55,772       46,225       101,744       84,214  
    Interest income     179       244       368       494  
    Total revenues     94,027       78,088       169,611       142,548  
    Operating Expenses:                
    Employee compensation and benefits     50,388       42,551       98,722       84,681  
    General and administrative expenses     24,647       16,855       42,206       34,035  
    Bad debts     550       653       957       1,780  
    Depreciation and amortization     2,782       2,632       5,452       5,200  
    Total operating expenses     78,367       62,691       147,337       125,696  
    Income from operations     15,660       15,397       22,274       16,852  
    Other Income:                
    Interest expense     (6,303 )     (1,982 )     (12,126 )     (3,469 )
    Other income (expense)     815       441       983       (6,286 )
    Income before taxes     10,172       13,856       11,131       7,097  
    Tax expense (benefit)     1,889       2,981       202       (5,587 )
    Net income     8,283       10,875       10,929       12,684  
    Less: net income attributable to noncontrolling interests     3,133       4,677       3,437       4,672  
    Net income attributable to Goosehead Insurance, Inc.   $ 5,150     $ 6,198     $ 7,492     $ 8,012  
    Earnings per share:                
    Basic   $ 0.20     $ 0.25     $ 0.30     $ 0.32  
    Diluted   $ 0.18     $ 0.24     $ 0.27     $ 0.29  
    Weighted average shares of Class A common stock outstanding                
    Basic     25,216       24,693       25,005       24,890  
    Diluted     38,553       38,031       38,542       38,435  
                                     
     
    Goosehead Insurance, Inc.
    Condensed Consolidated Statements of Operations
    (Unaudited)
    (In thousands, except per share amounts)
             
        Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025   2024   2025   2024
    Revenues:                
    Core Revenue:                
    Renewal Commissions(1)   $ 23,119     $ 20,591     $ 40,071     $ 36,552  
    Renewal Royalty Fees(2)     45,381       36,828       82,625       65,881  
    New Business Commissions(1)     7,559       6,682       13,314       12,363  
    New Business Royalty Fees(2)     7,820       7,169       14,749       13,402  
    Agency Fees(1)     2,906       2,137       5,146       4,048  
    Total Core Revenue     86,785       73,407       155,905       132,246  
    Cost Recovery Revenue:                
    Initial Franchise Fees(2)     1,247       1,631       2,589       3,875  
    Interest Income     179       244       368       494  
    Total Cost Recovery Revenue     1,426       1,875       2,957       4,369  
    Ancillary Revenue:                
    Contingent Commissions(1)     4,492       2,209       8,968       4,877  
    Other Franchise Revenues(2)     1,324       598       1,781       1,055  
    Total Ancillary Revenue     5,816       2,807       10,749       5,933  
    Total Revenues     94,027       78,088       169,611       142,548  
    Operating Expenses:                
    Employee compensation and benefits, excluding equity-based compensation     44,372       35,919       86,470       70,692  
    General and administrative expenses, excluding impairment     19,953       16,855       37,512       33,688  
    Bad debts     550       653       957       1,780  
    Total     64,875       53,427       124,939       106,160  
    Adjusted EBITDA     29,152       24,661       44,672       36,388  
    Adjusted EBITDA Margin     31 %     32 %     26 %     26 %
                     
    Interest expense     (6,303 )     (1,982 )     (12,126 )     (3,469 )
    Depreciation and amortization     (2,782 )     (2,632 )     (5,452 )     (5,200 )
    Tax (expense) benefit     (1,889 )     (2,981 )     (202 )     5,587  
    Equity-based compensation     (6,016 )     (6,632 )     (12,253 )     (13,989 )
    Impairment expense     (4,694 )     —       (4,694 )     (347 )
    Other income (expense)     815       441       983       (6,286 )
    Net Income   $ 8,283     $ 10,875     $ 10,929     $ 12,684  
    Net Income Margin     9 %     14 %     6 %     9 %
    (1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2025 and 2024.
    (2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2025 and 2024.
     
     
    Goosehead Insurance, Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (In thousands, except per share amounts)
             
        June 30,   December 31,
        2025   2024
    Assets        
    Current Assets:        
    Cash and cash equivalents   $ 92,388     $ 54,280  
    Restricted cash     3,234       3,693  
    Commissions and agency fees receivable, net     10,597       31,375  
    Receivable from franchisees, net     11,323       11,077  
    Prepaid expenses     17,626       8,139  
    Total current assets     135,168       108,564  
    Receivable from franchisees, net of current portion     3,082       3,469  
    Property and equipment, net of accumulated depreciation     21,967       24,101  
    Right-of-use asset     32,266       37,420  
    Intangible assets, net of accumulated amortization     30,329       25,075  
    Deferred income taxes, net     207,521       193,478  
    Other assets     6,254       5,546  
    Total assets   $ 436,587     $ 397,653  
    Liabilities and Stockholders’ Equity        
    Current Liabilities:        
    Accounts payable and accrued expenses   $ 23,173     $ 22,891  
    Premiums payable     3,234       3,693  
    Lease liability     6,357       6,535  
    Contract liabilities     3,478       3,275  
    Note payable     3,000       10,063  
    Liabilities under tax receivable agreement     6,993       —  
    Total current liabilities     46,235       46,457  
    Lease liability, net of current portion     51,925       54,536  
    Note payable, net of current portion     289,777       82,251  
    Contract liabilities, net of current portion     14,436       15,191  
    Liabilities under tax receivable agreement, net of current portion     164,808       160,142  
    Total liabilities     567,181       358,577  
    Class A common stock, $0.01 par value per share – 300,000 shares authorized, 25,351 shares issued and outstanding as of June 30, 2025, 24,668 shares issued and outstanding as of December 31, 2024     254       247  
    Class B common stock, $0.01 par value per share – 50,000 shares authorized, 12,207 issued and outstanding as of June 30, 2025, 12,620 shares issued and outstanding as of December 31, 2024     122       126  
    Additional paid in capital     74,730       58,917  
    Accumulated deficit     (153,695 )     (15,401 )
    Total stockholders’ equity     (78,589 )     43,889  
    Non-controlling interests     (52,005 )     (4,813 )
    Total equity     (130,594 )     39,076  
    Total liabilities and equity   $ 436,587     $ 397,653  
                     

    .
    Goosehead Insurance, Inc.
    Reconciliation of Non-GAAP Measures to GAAP

    This release includes certain financial performance measures that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors.

    These non-GAAP financial measures are defined by the Company as follows:

    • “Core Revenue” is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
    • “Cost Recovery Revenue” is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
    • “Ancillary Revenue” is a supplemental measure of our performance and includes Contingent Commissions and Other Franchise Revenues. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
    • “Adjusted EBITDA” is a supplemental measure of the Company’s performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
    • “Adjusted EBITDA Margin” is Adjusted EBITDA as defined above, divided by total revenue. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
    • “Adjusted EPS” is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management and our investors because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.
    • “Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses” is defined as total operating expenses (the most directly comparable GAAP measure) before equity-based compensation, depreciation and amortization, and impairment expenses. This measure is useful to management and our investors as it eliminates the impact of certain non-cash charges.
    • “Employee compensation and benefits, excluding equity-based compensation” is defined as Employee compensation and benefits (the most directly comparable GAAP measure) before equity-based compensation. This measure is useful to management and our investors as it eliminates the impact of certain non-cash compensation charges.
    • “General and administrative expenses, excluding impairment” is defined as general and administrative expenses (the most directly comparable GAAP measure) before impairment expense. This measure is useful to management and our investors as it eliminates the impact of certain non-cash charges.

    While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

    The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024 (in thousands):

        Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025
    		   2024
    		   2025
    		   2024
    Total Revenues   $ 94,027     $ 78,088     $ 169,611     $ 142,548  
                     
    Core Revenue:                
    Renewal Commissions(1)   $ 23,119     $ 20,591     $ 40,071     $ 36,552  
    Renewal Royalty Fees(2)     45,381       36,828       82,625       65,881  
    New Business Commissions(1)     7,559       6,682       13,314       12,363  
    New Business Royalty Fees(2)     7,820       7,169       14,749       13,402  
    Agency Fees(1)     2,906       2,137       5,146       4,048  
    Total Core Revenue     86,785       73,407       155,905       132,246  
    Cost Recovery Revenue:                
    Initial Franchise Fees(2)     1,247       1,631       2,589       3,875  
    Interest Income     179       244       368       494  
    Total Cost Recovery Revenue     1,426       1,875       2,957       4,369  
    Ancillary Revenue:                
    Contingent Commissions(1)     4,492       2,209       8,968       4,877  
    Other Franchise Revenues(2)     1,324       598       1,781       1,055  
    Total Ancillary Revenue     5,816       2,807       10,749       5,933  
    Total Revenues   $ 94,027     $ 78,088     $ 169,611     $ 142,548  
    (1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Condensed Consolidated Statements of Operations.
    (2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Condensed Consolidated Statements of Operations.
     

    The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024 (in thousands):

        Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025   2024   2025   2024
    Net Income   $ 8,283     $ 10,875     $ 10,929     $ 12,684  
    Interest expense     6,303       1,982       12,126       3,469  
    Depreciation and amortization     2,782       2,632       5,452       5,200  
    Tax expense (benefit)     1,889       2,981       202       (5,587 )
    Equity-based compensation     6,016       6,632       12,253       13,989  
    Impairment expense     4,694       —       4,694       347  
    Other (income) expense     (815 )     (441 )     (983 )     6,286  
    Adjusted EBITDA   $ 29,152     $ 24,661     $ 44,672     $ 36,388  
    Net Income Margin(1)     9 %     14 %     6 %     9 %
    Adjusted EBITDA Margin(2)     31 %     32 %     26 %     26 %
    (1) Net Income Margin is calculated as Net Income divided by Total Revenue ($8,283/$94,027) and ($10,875/$78,088) for the three months ended June 30, 2025 and 2024. Net Income Margin is calculated as Net Income divided by Total Revenue ($10,929/$169,611) and ($12,684/$142,548) for the six months ended June 30, 2025 and 2024.
    (2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($29,152/$94,027), and ($24,661/$78,088) for the three months ended June 30, 2025 and 2024, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($44,672/$169,611), and ($36,388/$142,548) for the six months ended June 30, 2025 and 2024.
     

    The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024. Note that totals may not sum due to rounding:

        Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
        2025
    		   2024
    		   2025
    		   2024
    Earnings per share – basic (GAAP)   $ 0.20     $ 0.25     $ 0.30     $ 0.32  
    Add: equity-based compensation(1)     0.16       0.18       0.33       0.37  
    Add: impairment expense(2)     0.13       —       0.13       0.01  
    Adjusted EPS (non-GAAP)   $ 0.49     $ 0.43     $ 0.76     $ 0.70  
    (1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.0 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$6.6 million/ (24.7 million + 12.8 million)] for the three months ended June 30, 2024. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$12.3 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025 and [$14.0 million/ (24.9 million + 12.8 million)] for the six months ended June 30, 2024.
    (2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$4.7 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$4.7 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025. Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.9 million + 12.8 million)] for the six months ended June 30, 2024. No impairment was recorded for the three months ended June 30, 2024.
     
     
    Goosehead Insurance, Inc.
    Key Performance Indicators
                 
        June 30,
    2025    		   December 31,
    2024    		   June 30,
    2024
    Corporate sales agents < 1 year tenured     282       253       157  
    Corporate sales agents > 1 year tenured     197       164       156  
    Operating franchises < 1 year tenured     95       90       89  
    Operating franchises > 1 year tenured     980       1,013       1,033  
    Total Franchise Producers     2,085       2,092       1,995  
    QTD Corporate Agent Productivity < 1 Year(1)   $ 18,612     $ 12,787     $ 21,338  
    QTD Corporate Agent Productivity > 1 Year(1)   $ 30,709     $ 26,788     $ 32,146  
    QTD Franchise Productivity < 1 Year(2)   $ 17,837     $ 17,861     $ 23,401  
    QTD Franchise Productivity > 1 Year(2)   $ 36,287     $ 29,089     $ 30,433  
    Policies in Force     1,793,000       1,674,000       1,588,000  
    Client Retention     84 %     84 %     84 %
    Premium Retention     95 %     98 %     99 %
    QTD Written Premium (in thousands)   $ 1,175,909     $ 965,596     $ 998,874  
    Net Promoter Score (“NPS”)     84       89       91  
    (1) – Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.
    (2) – Franchise Productivity is New Business Production per Franchise: The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents, divided by the average number of franchises for the same period, prior to paying Royalty Fees to the Company.
     

    The MIL Network –

  • MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

    “Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

    Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

    Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

    Second Quarter 2025 Highlights

    • Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.
    • Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.
    • Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.
    • Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.
    • Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

       
      Financial Highlights
      (Dollars in Thousands Except Share and Per Share Data and Ratios)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Income statement:                  
    Net interest income $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
                       
    Per share data:                  
    Basic earnings (loss) per share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted earnings (loss) per share   0.47       0.54       (0.25 )     0.41       0.32  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   18.06       17.72       17.46       17.27       16.62  
    Market value – high   15.88       17.76       18.76       16.57       12.74  
    Market value – low   12.92       15.00       14.57       11.89       11.29  
    Weighted average shares outstanding – Basic   43,794,490       43,777,109       43,721,211       43,712,059       43,712,059  
    Weighted average shares outstanding – Diluted   44,034,663       43,954,164       43,721,211       44,112,321       43,987,187  
    Common shares outstanding (end of period)   43,801,507       43,785,932       43,722,086       43,712,059       43,712,059  
                       
    Key ratios:                  
    Return on average assets   1.08 %     1.25 %   (0.56 )%     0.92 %     0.73 %
    Return on average stockholders’ equity   13.24       12.44       (5.73 )     9.80       7.83  
    Total equity to total assets   10.34       10.18       9.79       9.52       9.18  
    Total loans to deposit ratio   87.52       85.21       87.75       83.92       85.70  
    Allowance for credit losses to HFI loans   1.09       1.07       1.07       1.10       1.08  
    Annualized net charge-offs of average total loans (1)   0.02       0.07       0.05       0.03       0.05  
    Efficiency ratio   59.48       57.16       185.89       67.22       67.29  
                       
    Key metrics (Non-GAAP) (2)                  
    Net FTE interest margin   3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
    Return on average tangible common equity   13.24       15.79       (7.35 )     12.65       10.18  
    Tangible common equity to tangible assets   8.37       8.19       7.83       7.58       7.22  
    Tangible book value per common share $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin1, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

    Provision for Credit Losses

    During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

    For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

    Non-Interest Income

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025   2024   2024
    		   2024
    Non-interest Income                  
    Service charges on deposit accounts $ 3,208     $ 3,208     $ 3,276     $ 3,320     $ 3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Loss on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss) $ 10,920     $ 16,499     $ (28,954 )   $ 11,511     $ 10,485  
                                           

    Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025
    		   2024
    		   2024
    		   2024
    Non-interest Expense                  
    Salaries and employee benefits $ 22,731     $ 22,414     $ 25,564     $ 21,829     $ 20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense $ 39,417     $ 39,306     $ 44,935     $ 39,272     $ 37,522  
                                           

    Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.   

    Income Taxes

    Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

    Balance Sheet Highlights

    Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

    Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,
      2025*   2025   2024   2024
    Consolidated Capital Ratios              
    Total capital (to risk-weighted assets)   14.48 %     14.26 %     13.91 %     13.45 %
    Tier 1 capital (to risk-weighted assets)   12.52       12.33       12.00       11.63  
    Common equity tier 1 capital (to risk-weighted assets)   11.52       11.32       11.00       10.68  
    Tier 1 capital (to average assets)   9.59       9.25       8.88       9.02  
    *Preliminary estimate – may be subject to change    
         

    As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

    Tangible common equity3 totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets1 was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

    Credit Quality

    As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

    As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

    Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025
    		   2025   2024   2024   2024
    Interest Income                  
    Loans receivable $ 78,618     $ 74,457     $ 76,747     $ 75,488     $ 71,880  
    Investment securities – taxable   5,941       6,039       6,814       8,133       7,986  
    Investment securities – tax-exempt   6,088       6,192       6,301       6,310       6,377  
    Other   830       2,487       3,488       957       738  
    Total interest income   91,477       89,175       93,350       90,888       86,981  
    Interest Expense                  
    Deposits   26,053       25,601       27,818       30,787       28,447  
    Borrowed funds   8,171       9,188       10,656       11,131       11,213  
    Subordinated notes   829       829       829       830       829  
    Junior subordinated debentures issued to capital trusts   1,070       1,290       920       1,230       1,213  
    Total interest expense   36,123       36,908       40,223       43,978       41,702  
    Net Interest Income   55,354       52,267       53,127       46,910       45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Net Interest Income after Provision for Credit Losses   52,892       50,891       51,956       45,866       42,910  
    Non-interest Income                  
    Service charges on deposit accounts   3,208       3,208       3,276       3,320       3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Gains (losses) on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest Expense                  
    Salaries and employee benefits   22,731       22,414       25,564       21,829       20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income (Loss) Before Income Taxes   24,395       28,084       (21,933 )     18,105       15,873  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
    Basic Earnings (Loss) Per Share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted Earnings (Loss) Per Share   0.47       0.54       (0.25 )     0.41       0.32  
                                           
      Condensed Consolidated Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended for the Period
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 2,024     $ —     $ —     $ 113,912     $ 34,453  
    Interest earning deposits   34,174       80,023       201,131       12,107       4,957  
    Interest earning time deposits   —       —       735       735       1,715  
    Federal Home Loan Bank stock   45,412       45,412       53,826       53,826       53,826  
    Investment securities, available for sale   231,999       231,431       233,677       541,170       527,054  
    Investment securities, held to maturity   1,819,087       1,843,851       1,867,690       1,888,379       1,904,281  
    Loans held for sale   2,994       3,253       67,597       2,069       2,440  
    Gross loans held for investment (HFI)   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840  
    Total Interest earning assets   7,121,272       7,113,784       7,271,696       7,416,194       7,351,566  
    Non-interest earning assets                  
    Allowance for credit losses   (54,399 )     (52,654 )     (51,980 )     (52,881 )     (52,215 )
    Cash   101,719       89,643       92,300       108,815       106,691  
    Cash value of life insurance   37,755       37,409       37,450       37,115       36,773  
    Other assets   148,773       143,675       152,635       119,026       165,656  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   8,592       9,407       10,223       11,067       11,910  
    Premises and equipment, net   93,398       93,499       93,864       93,544       93,695  
    Interest receivable   39,730       38,663       39,747       39,366       43,240  
    Total non-interest earning assets   530,779       514,855       529,450       511,263       560,961  
    Total assets $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,526  
    Liabilities                  
    Savings and money market deposits $ 3,385,413     $ 3,393,371     $ 3,446,681     $ 3,420,827     $ 3,364,726  
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389  
    Borrowings   880,336       812,218       1,142,340       1,142,744       1,229,165  
    Repurchase agreements   95,089       87,851       89,912       122,399       128,169  
    Subordinated notes   55,807       55,772       55,738       55,703       55,668  
    Junior subordinated debentures issued to capital trusts   57,583       57,531       57,477       57,423       57,369  
    Total interest earning liabilities   5,667,408       5,651,832       5,881,301       6,019,749       6,013,486  
    Non-interest bearing deposits   1,121,163       1,127,324       1,064,818       1,085,535       1,087,040  
    Interest payable   14,007       11,441       11,137       11,400       11,240  
    Other liabilities   58,621       61,981       80,308       55,951       74,096  
    Total liabilities   6,861,199       6,852,578       7,037,564       7,172,635       7,185,862  
    Stockholders’ Equity                  
    Preferred stock   —       —       —       —       —  
    Common stock   —       —       —       —       —  
    Additional paid-in capital   360,758       360,522       363,761       358,453       357,673  
    Retained earnings   466,497       452,945       436,122       454,050       442,977  
    Accumulated other comprehensive (loss)   (36,403 )     (37,406 )     (36,301 )     (57,681 )     (73,985 )
    Total stockholders’ equity   790,852       776,061       763,582       754,822       726,665  
    Total liabilities and stockholders’ equity $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,527  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025
    		   2025
    		   2024
    		   2024
    		   2024
    		   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Loans:                          
    Commercial real estate $ 2,321,951     $ 2,262,910     $ 2,202,858     $ 2,105,459     $ 2,117,772       3 %     10 %
    Commercial & Industrial   976,740       918,541       875,297       808,600       786,788       6 %     24 %
    Total commercial   3,298,691       3,181,451       3,078,155       2,914,059       2,904,560       4 %     14 %
    Residential Real estate   786,026       801,726       802,909       801,356       797,956       (2 )%     (1 )%
    Mortgage warehouse   —       —       —       80,437       68,917       — %     (100 )%
    Consumer   900,865       926,638       965,976       1,008,144       1,051,407       (3 )%     (14 )%
    Total loans held for investment   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840       2 %     3 %
    Loans held for sale   2,994       3,253       67,597       2,069       2,440       (8 )%     23 %
    Total loans $ 4,988,576     $ 4,913,068     $ 4,914,637     $ 4,806,065     $ 4,825,280       2 %     3 %
                               
    Deposits:                          
    Interest bearing deposits $ 1,713,058     $ 1,713,991     $ 1,767,983     $ 1,688,998     $ 1,653,508       — %     4 %
    Savings and money market deposits   1,672,355       1,679,380       1,678,697       1,731,830       1,711,218       — %     (2 )%
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389       (4 )%     1 %
    Total Interest bearing deposits   4,578,593       4,638,459       4,535,833       4,641,481       4,543,115       (1 )%     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,121,164       1,127,324       1,064,819       1,085,534       1,087,040       (1 )%     3 %
    Total deposits $ 5,699,757     $ 5,765,784     $ 5,600,652     $ 5,727,015     $ 5,630,155       (1 )%     1 %
                                                       
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      June 30, 2025 March 31, 2025 June 30, 2024
      Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)
    Assets                  
    Interest earning assets                  
    Interest earning deposits (incl. Fed Funds Sold) $ 72,993   $ 830     4.56 % $ 223,148   $ 2,487     4.52 % $ 55,467   $ 738     5.35 %
    Federal Home Loan Bank stock   45,412     1,075     9.49 %   51,769     1,012     7.93 %   53,827     1,521     11.36 %
    Investment securities – taxable (1)   959,238     4,867     2.03 %   974,109     5,027     2.09 %   1,309,305     6,465     1.99 %
    Investment securities – non-taxable (1)   1,100,731     7,706     2.81 %   1,120,249     7,838     2.84 %   1,132,065     8,072     2.87 %
    Total investment securities   2,059,969     12,573     2.45 %   2,094,358     12,865     2.49 %   2,441,370     14,537     2.39 %
    Loans receivable (2) (3)   4,947,093     79,000     6.41 %   4,865,449     74,840     6.24 %   4,662,124     72,208     6.23 %
    Total interest earning assets   7,125,467     93,478     5.26 %   7,234,724     91,204     5.11 %   7,212,788     89,004     4.96 %
    Non-interest earning assets                  
    Cash and due from banks   86,316         88,624         108,319      
    Allowance for credit losses   (52,560 )       (51,863 )       (50,334 )    
    Other assets   472,175         483,765         508,555      
    Total average assets $ 7,631,398       $ 7,755,250       $ 7,779,328      
                       
    Liabilities and Stockholders’ Equity                  
    Interest bearing liabilities                  
    Interest bearing demand deposits $ 1,727,713   $ 6,803     1.58 % $ 1,750,446   $ 6,491     1.50 % $ 1,656,523   $ 7,081     1.72 %
    Saving and money market deposits   1,651,866     8,200     1.99 %   1,674,590     8,263     2.00 %   1,677,967     9,733     2.33 %
    Time deposits   1,233,582     11,050     3.59 %   1,212,386     10,847     3.63 %   1,134,590     11,633     4.12 %
    Total Deposits   4,613,161     26,053     2.27 %   4,637,422     25,601     2.24 %   4,469,080     28,447     2.56 %
    Borrowings   847,862     7,777     3.68 %   971,496     8,772     3.66 %   1,184,172     10,278     3.49 %
    Repurchase agreements   88,058     394     1.79 %   88,469     416     1.91 %   125,144     935     3.00 %
    Subordinated notes   55,785     829     5.96 %   55,750     829     6.03 %   55,647     829     5.99 %
    Junior subordinated debentures issued to capital trusts   57,550     1,070     7.46 %   57,497     1,290     9.10 %   57,335     1,213     8.51 %
    Total interest bearing liabilities   5,662,416     36,123     2.56 %   5,810,634     36,908     2.58 %   5,891,378     41,702     2.85 %
    Non-interest bearing liabilities                  
    Demand deposits   1,114,982         1,085,826         1,080,676      
    Accrued interest payable and other liabilities   64,465         78,521         80,942      
    Stockholders’ equity   789,535         780,269         726,332      
    Total average liabilities and stockholders’ equity $ 7,631,398       $ 7,755,250       $ 7,779,328      
    Net FTE interest income (non-GAAP) (5)   $ 57,355       $ 54,296       $ 47,302    
    Less FTE adjustments (4)     2,001         2,029         2,023    
    Net Interest Income   $ 55,354       $ 52,267       $ 45,279    
    Net FTE interest margin (Non-GAAP) (4)(5)       3.23 %       3.04 %       2.64 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
    (6) Includes dividend income on Federal Home Loan Bank stock
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025   2025   2024   2024   2024   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Non-accrual loans                          
    Commercial $ 7,547     $ 8,172     $ 5,658     $ 6,830     $ 4,321       (8 )%     75 %
    Residential Real estate   9,525       12,763       11,215       9,529       8,489       (25 )%     12 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   7,222       7,875       8,919       7,208       5,453       (8 )%     32 %
    Total non-accrual loans   24,294       28,810       25,792       23,567       18,263       (16 )%     33 %
    90 days and greater delinquent – accruing interest   2,113       1,582       1,166       819       1,039       34 %     103 %
    Total non-performing loans $ 26,407     $ 30,392     $ 26,958     $ 24,386     $ 19,302       (13 )%     37 %
                               
    Other real estate owned                          
    Commercial $ 176     $ 360     $ 407     $ 1,158     $ 1,111       (51 )%     (84 )%
    Residential Real estate   463       641       —       —       —       — %     — %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   480       34       17       36       57       1311 %     742 %
    Total other real estate owned   1,119       1,035       424       1,194       1,168       8 %     (4 )%
                               
    Total non-performing assets $ 27,526     $ 31,427     $ 27,382     $ 25,580     $ 20,470       (12 )%     34 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 31,401     $ 19,034     $ 23,075     $ 18,087     $ 19,785       65 %     59 %
    Substandard loans   64,100       66,714       64,535       59,775       51,221       (4 )%     25 %
    Net charge-offs (recoveries)                          
    Commercial $ 84     $ (47 )   $ (32 )   $ (52 )   $ 57       (279 )%     47 %
    Residential Real estate   52       (47 )     (10 )     (9 )     (4 )     (211 )%     (1400 )%
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   118       963       668       439       534       (88 )%     (78 )%
    Total net charge-offs $ 254     $ 869     $ 626     $ 378     $ 587       (71 )%     (57 )%
                               
    Allowance for credit losses                          
    Commercial $ 34,413     $ 32,640     $ 30,953     $ 32,854     $ 31,941       5 %     8 %
    Residential Real estate   3,229       3,167       2,715       2,675       2,588       2 %     25 %
    Mortgage warehouse   —       —       —       862       736       — %     (100 )%
    Consumer   16,757       16,847       18,312       16,490       16,950       (1 )%     (1 )%
    Total allowance for credit losses $ 54,399     $ 52,654     $ 51,980     $ 52,881     $ 52,215       3 %     4 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.59 %     0.53 %     0.49 %     0.38 %        
    Non-performing assets to total assets   0.36 %     0.41 %     0.35 %     0.32 %     0.26 %        
    Annualized net charge-offs of average total loans   0.02 %     0.07 %     0.05 %     0.03 %     0.05 %        
    Allowance for credit losses to HFI loans   1.09 %     1.07 %     1.07 %     1.10 %     1.08 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Interest income (GAAP) (A)   $ 91,477     $ 89,175     $ 93,350     $ 90,888     $ 86,981  
    Taxable-equivalent adjustment:                      
    Investment securities – tax exempt (1)       1,619       1,646       1,675       1,677       1,695  
    Loan receivable (2)       382       383       395       340       328  
    Interest income (non-GAAP) (B)     93,478       91,204       95,420       92,905       89,004  
    Interest expense (GAAP) (C)     36,123       36,908       40,223       43,978       41,702  
    Net interest income (GAAP) (D) =(A) – (C)   $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   $ 57,355     $ 54,296     $ 55,197     $ 48,927     $ 47,302  
    Average interest earning assets (F)     7,125,467       7,234,724       7,396,178       7,330,263       7,212,788  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)     3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
                           
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
                           
    Net income (loss) (GAAP) (A)   $ 20,643     $ 23,941     $ (10,882 )   $ 18,180     $ 14,140  
                           
    Average stockholders’ equity (B)   $ 789,535     $ 780,269     $ 755,340     $ 738,372     $ 726,332  
    Average intangible assets (C)     164,320       165,138       165,973       166,819       167,659  
    Average tangible equity (Non-GAAP) (D) = (B) – (C)   $ 625,215     $ 615,131     $ 589,367     $ 571,553     $ 558,673  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)     13.24 %     15.48 %   (7.35 )%     12.65 %     10.18 %
    *Annualized                      
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
                           
    Total assets (GAAP) (D)   $ 7,652,051     $ 7,628,636     $ 7,801,146     $ 7,927,457     $ 7,912,527  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible assets (non-GAAP) (E) = (D) – (B)   $ 7,488,249     $ 7,464,018     $ 7,635,712     $ 7,761,179     $ 7,745,406  
                           
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)     8.37 %     8.19 %     7.83 %     7.58 %     7.22 %
                                               
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025
    		   2025
    		   2024
    		   2024
    		   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
    Common shares outstanding (D)     43,801,507       43,786,000       43,722,086       43,712,059       43,712,059  
                           
    Tangible book value per common share (non-GAAP) (E) = (C) / (D)   $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                                               
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: July 23, 2025

    The MIL Network –

  • MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

    “Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

    Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

    Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

    Second Quarter 2025 Highlights

    • Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.
    • Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.
    • Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.
    • Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.
    • Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

       
      Financial Highlights
      (Dollars in Thousands Except Share and Per Share Data and Ratios)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Income statement:                  
    Net interest income $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
                       
    Per share data:                  
    Basic earnings (loss) per share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted earnings (loss) per share   0.47       0.54       (0.25 )     0.41       0.32  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   18.06       17.72       17.46       17.27       16.62  
    Market value – high   15.88       17.76       18.76       16.57       12.74  
    Market value – low   12.92       15.00       14.57       11.89       11.29  
    Weighted average shares outstanding – Basic   43,794,490       43,777,109       43,721,211       43,712,059       43,712,059  
    Weighted average shares outstanding – Diluted   44,034,663       43,954,164       43,721,211       44,112,321       43,987,187  
    Common shares outstanding (end of period)   43,801,507       43,785,932       43,722,086       43,712,059       43,712,059  
                       
    Key ratios:                  
    Return on average assets   1.08 %     1.25 %   (0.56 )%     0.92 %     0.73 %
    Return on average stockholders’ equity   13.24       12.44       (5.73 )     9.80       7.83  
    Total equity to total assets   10.34       10.18       9.79       9.52       9.18  
    Total loans to deposit ratio   87.52       85.21       87.75       83.92       85.70  
    Allowance for credit losses to HFI loans   1.09       1.07       1.07       1.10       1.08  
    Annualized net charge-offs of average total loans (1)   0.02       0.07       0.05       0.03       0.05  
    Efficiency ratio   59.48       57.16       185.89       67.22       67.29  
                       
    Key metrics (Non-GAAP) (2)                  
    Net FTE interest margin   3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
    Return on average tangible common equity   13.24       15.79       (7.35 )     12.65       10.18  
    Tangible common equity to tangible assets   8.37       8.19       7.83       7.58       7.22  
    Tangible book value per common share $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin1, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

    Provision for Credit Losses

    During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

    For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

    Non-Interest Income

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025   2024   2024
    		   2024
    Non-interest Income                  
    Service charges on deposit accounts $ 3,208     $ 3,208     $ 3,276     $ 3,320     $ 3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Loss on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss) $ 10,920     $ 16,499     $ (28,954 )   $ 11,511     $ 10,485  
                                           

    Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025
    		   2024
    		   2024
    		   2024
    Non-interest Expense                  
    Salaries and employee benefits $ 22,731     $ 22,414     $ 25,564     $ 21,829     $ 20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense $ 39,417     $ 39,306     $ 44,935     $ 39,272     $ 37,522  
                                           

    Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.   

    Income Taxes

    Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

    Balance Sheet Highlights

    Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

    Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,
      2025*   2025   2024   2024
    Consolidated Capital Ratios              
    Total capital (to risk-weighted assets)   14.48 %     14.26 %     13.91 %     13.45 %
    Tier 1 capital (to risk-weighted assets)   12.52       12.33       12.00       11.63  
    Common equity tier 1 capital (to risk-weighted assets)   11.52       11.32       11.00       10.68  
    Tier 1 capital (to average assets)   9.59       9.25       8.88       9.02  
    *Preliminary estimate – may be subject to change    
         

    As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

    Tangible common equity3 totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets1 was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

    Credit Quality

    As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

    As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

    Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025
    		   2025   2024   2024   2024
    Interest Income                  
    Loans receivable $ 78,618     $ 74,457     $ 76,747     $ 75,488     $ 71,880  
    Investment securities – taxable   5,941       6,039       6,814       8,133       7,986  
    Investment securities – tax-exempt   6,088       6,192       6,301       6,310       6,377  
    Other   830       2,487       3,488       957       738  
    Total interest income   91,477       89,175       93,350       90,888       86,981  
    Interest Expense                  
    Deposits   26,053       25,601       27,818       30,787       28,447  
    Borrowed funds   8,171       9,188       10,656       11,131       11,213  
    Subordinated notes   829       829       829       830       829  
    Junior subordinated debentures issued to capital trusts   1,070       1,290       920       1,230       1,213  
    Total interest expense   36,123       36,908       40,223       43,978       41,702  
    Net Interest Income   55,354       52,267       53,127       46,910       45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Net Interest Income after Provision for Credit Losses   52,892       50,891       51,956       45,866       42,910  
    Non-interest Income                  
    Service charges on deposit accounts   3,208       3,208       3,276       3,320       3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Gains (losses) on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest Expense                  
    Salaries and employee benefits   22,731       22,414       25,564       21,829       20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income (Loss) Before Income Taxes   24,395       28,084       (21,933 )     18,105       15,873  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
    Basic Earnings (Loss) Per Share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted Earnings (Loss) Per Share   0.47       0.54       (0.25 )     0.41       0.32  
                                           
      Condensed Consolidated Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended for the Period
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 2,024     $ —     $ —     $ 113,912     $ 34,453  
    Interest earning deposits   34,174       80,023       201,131       12,107       4,957  
    Interest earning time deposits   —       —       735       735       1,715  
    Federal Home Loan Bank stock   45,412       45,412       53,826       53,826       53,826  
    Investment securities, available for sale   231,999       231,431       233,677       541,170       527,054  
    Investment securities, held to maturity   1,819,087       1,843,851       1,867,690       1,888,379       1,904,281  
    Loans held for sale   2,994       3,253       67,597       2,069       2,440  
    Gross loans held for investment (HFI)   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840  
    Total Interest earning assets   7,121,272       7,113,784       7,271,696       7,416,194       7,351,566  
    Non-interest earning assets                  
    Allowance for credit losses   (54,399 )     (52,654 )     (51,980 )     (52,881 )     (52,215 )
    Cash   101,719       89,643       92,300       108,815       106,691  
    Cash value of life insurance   37,755       37,409       37,450       37,115       36,773  
    Other assets   148,773       143,675       152,635       119,026       165,656  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   8,592       9,407       10,223       11,067       11,910  
    Premises and equipment, net   93,398       93,499       93,864       93,544       93,695  
    Interest receivable   39,730       38,663       39,747       39,366       43,240  
    Total non-interest earning assets   530,779       514,855       529,450       511,263       560,961  
    Total assets $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,526  
    Liabilities                  
    Savings and money market deposits $ 3,385,413     $ 3,393,371     $ 3,446,681     $ 3,420,827     $ 3,364,726  
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389  
    Borrowings   880,336       812,218       1,142,340       1,142,744       1,229,165  
    Repurchase agreements   95,089       87,851       89,912       122,399       128,169  
    Subordinated notes   55,807       55,772       55,738       55,703       55,668  
    Junior subordinated debentures issued to capital trusts   57,583       57,531       57,477       57,423       57,369  
    Total interest earning liabilities   5,667,408       5,651,832       5,881,301       6,019,749       6,013,486  
    Non-interest bearing deposits   1,121,163       1,127,324       1,064,818       1,085,535       1,087,040  
    Interest payable   14,007       11,441       11,137       11,400       11,240  
    Other liabilities   58,621       61,981       80,308       55,951       74,096  
    Total liabilities   6,861,199       6,852,578       7,037,564       7,172,635       7,185,862  
    Stockholders’ Equity                  
    Preferred stock   —       —       —       —       —  
    Common stock   —       —       —       —       —  
    Additional paid-in capital   360,758       360,522       363,761       358,453       357,673  
    Retained earnings   466,497       452,945       436,122       454,050       442,977  
    Accumulated other comprehensive (loss)   (36,403 )     (37,406 )     (36,301 )     (57,681 )     (73,985 )
    Total stockholders’ equity   790,852       776,061       763,582       754,822       726,665  
    Total liabilities and stockholders’ equity $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,527  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025
    		   2025
    		   2024
    		   2024
    		   2024
    		   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Loans:                          
    Commercial real estate $ 2,321,951     $ 2,262,910     $ 2,202,858     $ 2,105,459     $ 2,117,772       3 %     10 %
    Commercial & Industrial   976,740       918,541       875,297       808,600       786,788       6 %     24 %
    Total commercial   3,298,691       3,181,451       3,078,155       2,914,059       2,904,560       4 %     14 %
    Residential Real estate   786,026       801,726       802,909       801,356       797,956       (2 )%     (1 )%
    Mortgage warehouse   —       —       —       80,437       68,917       — %     (100 )%
    Consumer   900,865       926,638       965,976       1,008,144       1,051,407       (3 )%     (14 )%
    Total loans held for investment   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840       2 %     3 %
    Loans held for sale   2,994       3,253       67,597       2,069       2,440       (8 )%     23 %
    Total loans $ 4,988,576     $ 4,913,068     $ 4,914,637     $ 4,806,065     $ 4,825,280       2 %     3 %
                               
    Deposits:                          
    Interest bearing deposits $ 1,713,058     $ 1,713,991     $ 1,767,983     $ 1,688,998     $ 1,653,508       — %     4 %
    Savings and money market deposits   1,672,355       1,679,380       1,678,697       1,731,830       1,711,218       — %     (2 )%
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389       (4 )%     1 %
    Total Interest bearing deposits   4,578,593       4,638,459       4,535,833       4,641,481       4,543,115       (1 )%     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,121,164       1,127,324       1,064,819       1,085,534       1,087,040       (1 )%     3 %
    Total deposits $ 5,699,757     $ 5,765,784     $ 5,600,652     $ 5,727,015     $ 5,630,155       (1 )%     1 %
                                                       
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      June 30, 2025 March 31, 2025 June 30, 2024
      Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)
    Assets                  
    Interest earning assets                  
    Interest earning deposits (incl. Fed Funds Sold) $ 72,993   $ 830     4.56 % $ 223,148   $ 2,487     4.52 % $ 55,467   $ 738     5.35 %
    Federal Home Loan Bank stock   45,412     1,075     9.49 %   51,769     1,012     7.93 %   53,827     1,521     11.36 %
    Investment securities – taxable (1)   959,238     4,867     2.03 %   974,109     5,027     2.09 %   1,309,305     6,465     1.99 %
    Investment securities – non-taxable (1)   1,100,731     7,706     2.81 %   1,120,249     7,838     2.84 %   1,132,065     8,072     2.87 %
    Total investment securities   2,059,969     12,573     2.45 %   2,094,358     12,865     2.49 %   2,441,370     14,537     2.39 %
    Loans receivable (2) (3)   4,947,093     79,000     6.41 %   4,865,449     74,840     6.24 %   4,662,124     72,208     6.23 %
    Total interest earning assets   7,125,467     93,478     5.26 %   7,234,724     91,204     5.11 %   7,212,788     89,004     4.96 %
    Non-interest earning assets                  
    Cash and due from banks   86,316         88,624         108,319      
    Allowance for credit losses   (52,560 )       (51,863 )       (50,334 )    
    Other assets   472,175         483,765         508,555      
    Total average assets $ 7,631,398       $ 7,755,250       $ 7,779,328      
                       
    Liabilities and Stockholders’ Equity                  
    Interest bearing liabilities                  
    Interest bearing demand deposits $ 1,727,713   $ 6,803     1.58 % $ 1,750,446   $ 6,491     1.50 % $ 1,656,523   $ 7,081     1.72 %
    Saving and money market deposits   1,651,866     8,200     1.99 %   1,674,590     8,263     2.00 %   1,677,967     9,733     2.33 %
    Time deposits   1,233,582     11,050     3.59 %   1,212,386     10,847     3.63 %   1,134,590     11,633     4.12 %
    Total Deposits   4,613,161     26,053     2.27 %   4,637,422     25,601     2.24 %   4,469,080     28,447     2.56 %
    Borrowings   847,862     7,777     3.68 %   971,496     8,772     3.66 %   1,184,172     10,278     3.49 %
    Repurchase agreements   88,058     394     1.79 %   88,469     416     1.91 %   125,144     935     3.00 %
    Subordinated notes   55,785     829     5.96 %   55,750     829     6.03 %   55,647     829     5.99 %
    Junior subordinated debentures issued to capital trusts   57,550     1,070     7.46 %   57,497     1,290     9.10 %   57,335     1,213     8.51 %
    Total interest bearing liabilities   5,662,416     36,123     2.56 %   5,810,634     36,908     2.58 %   5,891,378     41,702     2.85 %
    Non-interest bearing liabilities                  
    Demand deposits   1,114,982         1,085,826         1,080,676      
    Accrued interest payable and other liabilities   64,465         78,521         80,942      
    Stockholders’ equity   789,535         780,269         726,332      
    Total average liabilities and stockholders’ equity $ 7,631,398       $ 7,755,250       $ 7,779,328      
    Net FTE interest income (non-GAAP) (5)   $ 57,355       $ 54,296       $ 47,302    
    Less FTE adjustments (4)     2,001         2,029         2,023    
    Net Interest Income   $ 55,354       $ 52,267       $ 45,279    
    Net FTE interest margin (Non-GAAP) (4)(5)       3.23 %       3.04 %       2.64 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
    (6) Includes dividend income on Federal Home Loan Bank stock
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025   2025   2024   2024   2024   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Non-accrual loans                          
    Commercial $ 7,547     $ 8,172     $ 5,658     $ 6,830     $ 4,321       (8 )%     75 %
    Residential Real estate   9,525       12,763       11,215       9,529       8,489       (25 )%     12 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   7,222       7,875       8,919       7,208       5,453       (8 )%     32 %
    Total non-accrual loans   24,294       28,810       25,792       23,567       18,263       (16 )%     33 %
    90 days and greater delinquent – accruing interest   2,113       1,582       1,166       819       1,039       34 %     103 %
    Total non-performing loans $ 26,407     $ 30,392     $ 26,958     $ 24,386     $ 19,302       (13 )%     37 %
                               
    Other real estate owned                          
    Commercial $ 176     $ 360     $ 407     $ 1,158     $ 1,111       (51 )%     (84 )%
    Residential Real estate   463       641       —       —       —       — %     — %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   480       34       17       36       57       1311 %     742 %
    Total other real estate owned   1,119       1,035       424       1,194       1,168       8 %     (4 )%
                               
    Total non-performing assets $ 27,526     $ 31,427     $ 27,382     $ 25,580     $ 20,470       (12 )%     34 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 31,401     $ 19,034     $ 23,075     $ 18,087     $ 19,785       65 %     59 %
    Substandard loans   64,100       66,714       64,535       59,775       51,221       (4 )%     25 %
    Net charge-offs (recoveries)                          
    Commercial $ 84     $ (47 )   $ (32 )   $ (52 )   $ 57       (279 )%     47 %
    Residential Real estate   52       (47 )     (10 )     (9 )     (4 )     (211 )%     (1400 )%
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   118       963       668       439       534       (88 )%     (78 )%
    Total net charge-offs $ 254     $ 869     $ 626     $ 378     $ 587       (71 )%     (57 )%
                               
    Allowance for credit losses                          
    Commercial $ 34,413     $ 32,640     $ 30,953     $ 32,854     $ 31,941       5 %     8 %
    Residential Real estate   3,229       3,167       2,715       2,675       2,588       2 %     25 %
    Mortgage warehouse   —       —       —       862       736       — %     (100 )%
    Consumer   16,757       16,847       18,312       16,490       16,950       (1 )%     (1 )%
    Total allowance for credit losses $ 54,399     $ 52,654     $ 51,980     $ 52,881     $ 52,215       3 %     4 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.59 %     0.53 %     0.49 %     0.38 %        
    Non-performing assets to total assets   0.36 %     0.41 %     0.35 %     0.32 %     0.26 %        
    Annualized net charge-offs of average total loans   0.02 %     0.07 %     0.05 %     0.03 %     0.05 %        
    Allowance for credit losses to HFI loans   1.09 %     1.07 %     1.07 %     1.10 %     1.08 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Interest income (GAAP) (A)   $ 91,477     $ 89,175     $ 93,350     $ 90,888     $ 86,981  
    Taxable-equivalent adjustment:                      
    Investment securities – tax exempt (1)       1,619       1,646       1,675       1,677       1,695  
    Loan receivable (2)       382       383       395       340       328  
    Interest income (non-GAAP) (B)     93,478       91,204       95,420       92,905       89,004  
    Interest expense (GAAP) (C)     36,123       36,908       40,223       43,978       41,702  
    Net interest income (GAAP) (D) =(A) – (C)   $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   $ 57,355     $ 54,296     $ 55,197     $ 48,927     $ 47,302  
    Average interest earning assets (F)     7,125,467       7,234,724       7,396,178       7,330,263       7,212,788  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)     3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
                           
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
                           
    Net income (loss) (GAAP) (A)   $ 20,643     $ 23,941     $ (10,882 )   $ 18,180     $ 14,140  
                           
    Average stockholders’ equity (B)   $ 789,535     $ 780,269     $ 755,340     $ 738,372     $ 726,332  
    Average intangible assets (C)     164,320       165,138       165,973       166,819       167,659  
    Average tangible equity (Non-GAAP) (D) = (B) – (C)   $ 625,215     $ 615,131     $ 589,367     $ 571,553     $ 558,673  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)     13.24 %     15.48 %   (7.35 )%     12.65 %     10.18 %
    *Annualized                      
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
                           
    Total assets (GAAP) (D)   $ 7,652,051     $ 7,628,636     $ 7,801,146     $ 7,927,457     $ 7,912,527  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible assets (non-GAAP) (E) = (D) – (B)   $ 7,488,249     $ 7,464,018     $ 7,635,712     $ 7,761,179     $ 7,745,406  
                           
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)     8.37 %     8.19 %     7.83 %     7.58 %     7.22 %
                                               
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025
    		   2025
    		   2024
    		   2024
    		   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
    Common shares outstanding (D)     43,801,507       43,786,000       43,722,086       43,712,059       43,712,059  
                           
    Tangible book value per common share (non-GAAP) (E) = (C) / (D)   $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                                               
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: July 23, 2025

    The MIL Network –

  • MIL-OSI: Mobile Infrastructure Announces Timing of Second Quarter 2025 Earnings Release and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    CINCINNATI, July 23, 2025 (GLOBE NEWSWIRE) — Mobile Infrastructure Corporation [Nasdaq: BEEP], owners of a diversified portfolio of parking assets throughout the United States, will issue its second quarter 2025 earnings release after the U.S. market closes on Tuesday, August 12, 2025.

    You are invited to participate in the Company’s conference call hosted by senior management on Tuesday, August 12, 2025, at 4:30 PM Eastern Time.

    Q2 2025 Conference Call Date & Time:
    Tuesday, August 12, 2025, at 4:30 PM Eastern Time

    Participants who wish to access the live conference call may do so by registering here. Upon registration, a dial-in and unique PIN will be provided to join the call.

    A live, listen-only webcast of the conference call may be accessed from the Investor Relations section of the Company’s website, or by registering here.

    For those who are unable to listen to the live broadcast, a replay of the webcast will be available in the “News & Events” section of the Investor Relations website under “IR Calendar” for one year.

    About Mobile Infrastructure Corporation

    Mobile Infrastructure Corporation, headquartered in Cincinnati, Ohio, focuses on acquiring, owning, and optimizing parking facilities and related infrastructure, including parking lots, parking garages, and other parking structures throughout the United States. The Company was recently added to the Russell 2000® Index, reflecting its growing presence in the public markets. For more information, visit mobileit.com.

    Contact:

    Stephanie Hogue
    President
    646-471-0056

    Lynn Morgen
    Casey Kotary
    ADVISIRY Partners
    212-750-5800

    The MIL Network –

  • MIL-OSI: Open Lending to Announce Second Quarter 2025 Results on August 6, 2025

    Source: GlobeNewswire (MIL-OSI)

    AUSTIN, Texas, July 23, 2025 (GLOBE NEWSWIRE) — Open Lending Corporation (NASDAQ: LPRO) (“Open Lending” or the “Company”), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced that the Company plans to issue a press release containing results for the second quarter 2025 after the market closes on Wednesday, August 6, 2025. The Company plans to host a conference call to discuss these results on Wednesday, August 6, 2025, at 5:00 PM ET.

    The conference call will be webcast live from the Company’s investor relations website at https://investors.openlending.com/ under the “Events” section. The conference call can also be accessed live over the phone by dialing (800) 343-4136, or for international callers (203) 518-9843 using access code LENDING. An archive of the webcast will be available at the same location on the website shortly after the call has concluded.

    About Open Lending

    Open Lending (NASDAQ: LPRO) provides loan analytics, risk-based pricing, risk modeling, and default insurance to auto lenders throughout the United States. For over 20 years, we have been empowering financial institutions to create profitable auto loan portfolios with less risk and more reward. For more information, please visit www.openlending.com.

    Contact information:

    Investor Relations Inquiries:
    InvestorRelations@openlending.com

    Source: Open Lending Corporation

    The MIL Network –

  • MIL-OSI: Fusion Fuel Green PLC Announces $4.3 Million Private Placement and Noteholder Agreements

    Source: GlobeNewswire (MIL-OSI)

    DUBLIN, July 23, 2025 (GLOBE NEWSWIRE) — Fusion Fuel Green PLC (Nasdaq: HTOO) (“Fusion Fuel” or the “Company”), a provider of integrated energy solutions, today announced that it has entered into a definitive agreement for a private placement (the “PIPE”) with investors for aggregate gross proceeds of $4.3 million.

    Under the Securities Purchase Agreement, dated July 22, 2025 (the “Securities Purchase Agreement”), Fusion Fuel will issue and sell:

    • 269,459 Class A Ordinary Shares;
    • Pre-funded warrants to purchase 541,706 Class A Ordinary Shares at a nominal exercise price of $0.0035 per share, which can be converted at any time;
    • Warrants to purchase 1,622,330 Class A Ordinary Shares at an exercise price of $4.926 per share, with a three-year exercise window; and
    • Warrants to purchase 811,165 Class A Ordinary Shares at an exercise price of $9.852 per share, with a three-year exercise window.

    The Securities Purchase Agreement requires Fusion Fuel to use the net proceeds from the offering to fully repay any indebtedness under its outstanding Senior Convertible Notes dated January 10, 2025 and March 3, 2025 (collectively, the “2025 Notes”). The remaining funds will support general corporate and working capital purposes, as well as transaction-related costs.

    In connection with the PIPE, the Company also entered into agreements with holders of the 2025 Notes, providing for:

    • Redemption of any unconverted or unpaid 2025 Notes, which had been converted in full as of July 22, 2025;
    • Cancellation of previously issued warrants to the noteholders and an exchange for new warrants to purchase an aggregate of 294,658 Class A Ordinary Shares pursuant to Section 3(a)(9) under the U.S. Securities Act of 1933, as amended (the “Securities Act”); and
    • waivers and releases from noteholders regarding certain rights and obligations under prior agreements.

    The PIPE was conducted as a private placement exempt from registration under Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder. Fusion Fuel has agreed to file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) within 15 days of the closing to register the resale of the securities issued in the PIPE.

    John-Paul Backwell, CEO of Fusion Fuel, commented, “This transaction significantly simplifies our capital structure, allowing us to make important headway on several legacy items while maintaining strong forward momentum. With a cleaner and simplified cap table and funding terms, as well as greater financial flexibility, we are well-positioned to continue delivering on our ambitious growth plans for 2025 and beyond.”

    About Fusion Fuel Green PLC

    Fusion Fuel Green PLC (NASDAQ: HTOO) provides integrated energy engineering, distribution, and green hydrogen solutions through its Al Shola Gas and BrightHy Solutions platforms. With operations spanning LPG supply to hydrogen solutions, the Company supports decarbonization across industrial, residential, and commercial sectors.

    Forward-Looking Statements

    This press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance. In some cases, you can identify these statements because they contain words such as “may,” “will,” “believes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “should,” “seeks,” “future,” “continue,” “plan,” “target,” “predict,” “potential,” or the negative of such terms, or other comparable terminology that concern the Company’s expectations, strategy, plans, or intentions. Forward-looking statements relating to expectations about future results or events are based upon information available to the Company as of today’s date and are not guarantees of the future performance of the Company, and actual results may vary materially from the results and expectations discussed. The Company’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, without limitation, the risks and uncertainties described under Item 3. “Key Information – D. Risk Factors” and elsewhere in the Company’s Annual Report on Form 20-F filed with the SEC, on May 9, 2025 (the “Annual Report”), and other filings with the SEC. Should any of these risks or uncertainties materialize, or should the underlying assumptions about the Company’s business and the commercial markets in which the Company operates prove incorrect, actual results may vary materially from those described as anticipated, estimated or expected in the Annual Report. All subsequent written and oral forward-looking statements concerning the Company or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The Company does not undertake any obligation to publicly update any of these forward-looking statements to reflect events or circumstances that may arise after the date hereof, except as required by law.

    Investor Relations Contact
    ir@fusion-fuel.eu 
    www.fusion-fuel.eu

    The MIL Network –

  • MIL-OSI: LiveRamp to Discuss First Quarter FY26 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, July 23, 2025 (GLOBE NEWSWIRE) — LiveRamp® (NYSE: RAMP), the leading global data collaboration platform, today announced that its fiscal 2026 first quarter financial results will be released on Wednesday, August 6, 2025 after the financial markets close. A conference call to discuss the results will be held on the same day at 1:30 p.m. PT.

    A live webcast of the conference call can be accessed on the LiveRamp Investor Relations website.

    Additionally, the conference call can be accessed via the telephone by dialing (800) 715-9871 or (646) 307-1963. The conference call ID is 5883383.

    To automatically receive LiveRamp financial news by email, please visit the company’s Investor Relations website and subscribe to email alerts.

    About LiveRamp

    LiveRamp is a leading data collaboration technology company, empowering marketers and media owners to deliver and measure marketing performance everywhere it matters. LiveRamp’s data collaboration network seamlessly unites data across advertisers, platforms, publishers, data providers, and commerce media networks—unlocking deep insights, delivering transformational consumer experiences, and driving measurable growth.

    Built on a foundation of strict neutrality, interoperability, and global scale, LiveRamp enables organizations to maximize the value of their data while accelerating innovation. Trusted by many of the world’s leading brands, retailers, financial services providers, and healthcare innovators, LiveRamp is helping shape the future of responsible data collaboration in an AI-driven, outcomes-focused world where advertisers reach intended audiences and consumers receive more relevant advertising messages.

    LiveRamp is headquartered in San Francisco, California, with offices worldwide. Learn more at LiveRamp.com.

    For more information, contact:
    Drew Borst
    LiveRamp Investor Relations
    Investor.Relations@LiveRamp.com

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Second Quarter 2025 Highlights:

    • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
    • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
    • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
    • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
    • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
    • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
    • The efficiency ratio totaled 53.99% for the quarter.

    “Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

    Second Quarter Financial Results:

    First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

    Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

    Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

    Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

    Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

    Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

    Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

    The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) June 30,
        2025       2024  
    ASSETS      
    Cash and due from banks $ 81,567     $ 105,372  
    Interest-bearing deposits   223,343       168,528  
    Investment securities available for sale   1,358,130       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,134,195  
    Loans held for sale   28,783       32,292  
    Loans   13,296,759       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (189,537 )
    Net loans   13,101,443       12,450,113  
    Premises and equipment   122,808       133,245  
    Federal Home Loan Bank stock   47,290       41,738  
    Interest receivable   93,258       97,546  
    Goodwill   712,002       712,002  
    Other intangibles   16,797       23,371  
    Cash surrender value of life insurance   305,695       306,379  
    Other real estate owned   177       4,824  
    Tax asset, deferred and receivable   97,749       107,080  
    Other assets   380,909       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,303,423  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,197,416     $ 2,303,313  
    Interest-bearing   12,600,162       12,265,757  
    Total Deposits   14,797,578       14,569,070  
    Borrowings:      
    Federal funds purchased   85,000       147,229  
    Securities sold under repurchase agreements   114,758       100,451  
    Federal Home Loan Bank advances   898,702       832,703  
    Subordinated debentures and other borrowings   62,617       93,589  
    Total Borrowings   1,161,077       1,173,972  
    Interest payable   16,174       18,554  
    Other liabilities   269,996       329,302  
    Total Liabilities   16,244,825       16,090,898  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,272,433 and 58,045,653 shares   7,159       7,256  
    Additional paid-in capital   1,163,170       1,191,193  
    Retained earnings   1,342,473       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,303,423  
           
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Six Months Ended
    (Dollars In Thousands, Except Per Share Amounts) June 30,   June 30,
        2025       2024       2025       2024  
    INTEREST INCOME              
    Loans:              
    Taxable $ 195,173     $ 201,413     $ 382,901     $ 399,436  
    Tax-exempt   10,805       8,430       21,337       16,620  
    Investment securities:              
    Taxable   8,266       9,051       16,638       17,799  
    Tax-exempt   12,516       13,613       25,033       27,224  
    Deposits with financial institutions   1,892       2,995       4,264       9,488  
    Federal Home Loan Bank stock   1,083       879       2,080       1,714  
    Total Interest Income   229,735       236,381       452,253       472,281  
    INTEREST EXPENSE              
    Deposits   84,241       99,151       164,788       197,436  
    Federal funds purchased   965       126       1,777       126  
    Securities sold under repurchase agreements   663       645       1,405       1,677  
    Federal Home Loan Bank advances   9,714       6,398       19,078       13,171  
    Subordinated debentures and other borrowings   1,138       1,490       1,921       4,237  
    Total Interest Expense   96,721       107,810       188,969       216,647  
    NET INTEREST INCOME   133,014       128,571       263,284       255,634  
    Provision for credit losses   5,600       24,500       9,800       26,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414       104,071       253,484       229,134  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,566       8,214       16,638       16,121  
    Fiduciary and wealth management fees   8,831       8,825       17,475       17,025  
    Card payment fees   4,932       4,739       9,458       9,239  
    Net gains and fees on sales of loans   5,849       5,141       10,871       8,395  
    Derivative hedge fees   831       489       1,235       752  
    Other customer fees   401       460       816       887  
    Earnings on cash surrender value of life insurance   1,913       1,929       4,092       3,521  
    Net realized losses on sales of available for sale securities   (1 )     (49 )     (8 )     (51 )
    Other income (loss)   (19 )     1,586       774       2,083  
    Total Noninterest Income   31,303       31,334       61,351       57,972  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   54,527       52,214       109,509       110,507  
    Net occupancy   6,845       6,746       14,061       14,058  
    Equipment   6,927       6,599       13,935       12,825  
    Marketing   1,997       1,773       3,350       2,971  
    Outside data processing fees   7,107       7,072       13,036       13,961  
    Printing and office supplies   272       354       619       707  
    Intangible asset amortization   1,505       1,771       3,031       3,728  
    FDIC assessments   3,552       3,278       7,200       7,565  
    Other real estate owned and foreclosure expenses   29       373       629       907  
    Professional and other outside services   3,741       3,822       7,002       7,774  
    Other expenses   7,096       7,411       14,128       13,345  
    Total Noninterest Expenses   93,598       91,413       186,500       188,348  
    INCOME BEFORE INCOME TAX   65,119       43,992       128,335       98,758  
    Income tax expense   8,287       4,067       16,164       10,892  
    NET INCOME   56,832       39,925       112,171       87,866  
    Preferred stock dividends   469       469       938       938  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363     $ 39,456     $ 111,233     $ 86,928  
                   
                   
    PER SHARE DATA:              
    Basic Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.93     $ 1.48  
    Diluted Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.92     $ 1.48  
    Cash Dividends Paid to Common Stockholders $ 0.36     $ 0.35     $ 0.71     $ 0.69  
    Tangible Common Book Value Per Share $ 27.90     $ 25.10     $ 27.90     $ 25.10  
    Average Diluted Common Shares Outstanding (in thousands)   57,773       58,328       58,005       58,800  
                                   
    FINANCIAL HIGHLIGHTS              
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   June 30,
       2025    2024    2025    2024
    NET CHARGE-OFFS $ 2,315       $ 39,644       $ 7,241       $ 41,897    
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,508,785       $ 18,332,159       $ 18,425,723       $ 18,381,340    
    Total Loans   13,211,729         12,620,530         13,077,288         12,548,798    
    Total Earning Assets   17,158,984         17,013,984         17,060,278         17,068,917    
    Total Deposits   14,632,113         14,895,867         14,526,314         14,888,536    
    Total Stockholders’ Equity   2,340,010         2,203,361         2,340,440         2,222,750    
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.23   %     0.87   %     1.22   %     0.96   %
    Return on Average Stockholders’ Equity   9.63         7.16         9.51         7.82    
    Return on Tangible Common Stockholders’ Equity   14.49         11.29         14.30         12.26    
    Average Earning Assets to Average Assets   92.71         92.81         92.59         92.86    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.50         1.47         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         1.26         0.11         0.67    
    Average Stockholders’ Equity to Average Assets   12.64         12.02         12.70         12.09    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.69         5.45         5.67    
    Interest Expense/Average Earning Assets   2.25         2.53         2.22         2.54    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.16         3.23         3.13    
    Efficiency Ratio   53.99         53.84         54.26         56.47    
                   
    ASSET QUALITY                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    Nonaccrual Loans $ 67,358       $ 81,922       $ 73,773       $ 59,088       $ 61,906    
    Other Real Estate Owned and Repossessions   177         4,966         4,948         5,247         4,824    
    Nonperforming Assets (NPA)   67,535         86,888         78,721         64,335         66,730    
    90+ Days Delinquent   4,443         4,280         5,902         14,105         1,686    
    NPAs & 90 Day Delinquent $ 71,978       $ 91,168       $ 84,623       $ 78,440       $ 68,416    
                       
    Allowance for Credit Losses – Loans $ 195,316       $ 192,031       $ 192,757       $ 187,828       $ 189,537    
    Quarterly Net Charge-offs   2,315         4,926         771         6,709         39,644    
    NPAs / Actual Assets %   0.36   %     0.47   %     0.43   %     0.35   %     0.36   %
    NPAs & 90 Day / Actual Assets %   0.39   %     0.49   %     0.46   %     0.43   %     0.37   %
    NPAs / Actual Loans and OREO %   0.51   %     0.67   %     0.61   %     0.51   %     0.53   %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.47   %     1.47   %     1.50   %     1.48   %     1.50   %
    Quarterly Net Charge-offs as % of Average Loans (Annualized)   0.07   %     0.15   %     0.02   %     0.21   %     1.26   %
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $ 81,567     $ 86,113     $ 87,616     $ 84,719     $ 105,372  
    Interest-bearing deposits   223,343       331,534       298,891       359,126       168,528  
    Investment securities available for sale   1,358,130       1,378,489       1,386,475       1,553,496       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,048,632       2,074,220       2,108,649       2,134,195  
    Loans held for sale   28,783       23,004       18,663       40,652       32,292  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    Net loans   13,101,443       12,812,874       12,661,602       12,458,980       12,450,113  
    Premises and equipment   122,808       128,749       129,743       129,582       133,245  
    Federal Home Loan Bank stock   47,290       45,006       41,690       41,716       41,738  
    Interest receivable   93,258       88,352       91,829       92,055       97,546  
    Goodwill   712,002       712,002       712,002       712,002       712,002  
    Other intangibles   16,797       18,302       19,828       21,599       23,371  
    Cash surrender value of life insurance   305,695       304,918       304,906       304,613       306,379  
    Other real estate owned   177       4,966       4,948       5,247       4,824  
    Tax asset, deferred and receivable   97,749       87,665       92,387       86,732       107,080  
    Other assets   380,909       369,181       387,169       348,384       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,197,416     $ 2,185,057     $ 2,325,579     $ 2,334,197     $ 2,303,313  
    Interest-bearing   12,600,162       12,276,921       12,196,047       12,030,903       12,265,757  
    Total Deposits   14,797,578       14,461,978       14,521,626       14,365,100       14,569,070  
    Borrowings:                  
    Federal funds purchased   85,000       185,000       99,226       30,000       147,229  
    Securities sold under repurchase agreements   114,758       122,947       142,876       124,894       100,451  
    Federal Home Loan Bank advances   898,702       972,478       822,554       832,629       832,703  
    Subordinated debentures and other borrowings   62,617       62,619       93,529       93,562       93,589  
    Total Borrowings   1,161,077       1,343,044       1,158,185       1,081,085       1,173,972  
    Deposits and other liabilities held for sale   —       —       —       288,476       —  
    Interest payable   16,174       13,304       16,102       18,089       18,554  
    Other liabilities   269,996       289,247       311,073       292,429       329,302  
    Total Liabilities   16,244,825       16,107,573       16,006,986       16,045,179       16,090,898  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,159       7,226       7,247       7,265       7,256  
    Additional paid-in capital   1,163,170       1,183,263       1,188,768       1,192,683       1,191,193  
    Retained earnings   1,342,473       1,306,911       1,272,528       1,229,125       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (190,311 )     (188,685 )     (151,825 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,332,214       2,304,983       2,302,373       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 195,173       $ 187,728       $ 197,536       $ 206,680       $ 201,413    
    Tax-exempt   10,805         10,532         9,020         8,622         8,430    
    Investment securities:                  
    Taxable   8,266         8,372         9,024         9,263         9,051    
    Tax-exempt   12,516         12,517         12,754         13,509         13,613    
    Deposits with financial institutions   1,892         2,372         5,350         2,154         2,995    
    Federal Home Loan Bank stock   1,083         997         958         855         879    
    Total Interest Income   229,735         222,518         234,642         241,083         236,381    
    INTEREST EXPENSE                  
    Deposits   84,241         80,547         89,835         98,856         99,151    
    Federal funds purchased   965         812         26         329         126    
    Securities sold under repurchase agreements   663         742         680         700         645    
    Federal Home Loan Bank advances   9,714         9,364         8,171         8,544         6,398    
    Subordinated debentures and other borrowings   1,138         783         1,560         1,544         1,490    
    Total Interest Expense   96,721         92,248         100,272         109,973         107,810    
    NET INTEREST INCOME   133,014         130,270         134,370         131,110         128,571    
    Provision for credit losses   5,600         4,200         4,200         5,000         24,500    
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414         126,070         130,170         126,110         104,071    
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,566         8,072         8,124         8,361         8,214    
    Fiduciary and wealth management fees   8,831         8,644         8,665         8,525         8,825    
    Card payment fees   4,932         4,526         4,957         5,121         4,739    
    Net gains and fees on sales of loans   5,849         5,022         5,681         6,764         5,141    
    Derivative hedge fees   831         404         1,594         736         489    
    Other customer fees   401         415         316         344         460    
    Earnings on cash surrender value of life insurance   1,913         2,179         2,188         2,755         1,929    
    Net realized losses on sales of available for sale securities   (1 )       (7 )       (11,592 )       (9,114 )       (49 )  
    Gain on branch sale   —         —         19,983         —         —    
    Other income (loss)   (19 )       793         2,826         1,374         1,586    
    Total Noninterest Income   31,303         30,048         42,742         24,866         31,334    
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   54,527         54,982         55,437         55,223         52,214    
    Net occupancy   6,845         7,216         7,335         6,994         6,746    
    Equipment   6,927         7,008         7,028         6,949         6,599    
    Marketing   1,997         1,353         2,582         1,836         1,773    
    Outside data processing fees   7,107         5,929         6,029         7,150         7,072    
    Printing and office supplies   272         347         377         378         354    
    Intangible asset amortization   1,505         1,526         1,771         1,772         1,771    
    FDIC assessments   3,552         3,648         3,744         3,720         3,278    
    Other real estate owned and foreclosure expenses   29         600         227         942         373    
    Professional and other outside services   3,741         3,261         3,777         3,035         3,822    
    Other expenses   7,096         7,032         7,982         6,630         7,411    
    Total Noninterest Expenses   93,598         92,902         96,289         94,629         91,413    
    INCOME BEFORE INCOME TAX   65,119         63,216         76,623         56,347         43,992    
    Income tax expense   8,287         7,877         12,274         7,160         4,067    
    NET INCOME   56,832         55,339         64,349         49,187         39,925    
    Preferred stock dividends   469         469         469         468         469    
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456    
                       
                       
    PER SHARE DATA:                  
    Basic Net Income Available to Common Stockholders $ 0.98       $ 0.95       $ 1.10       $ 0.84       $ 0.68    
    Diluted Net Income Available to Common Stockholders $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68    
    Cash Dividends Paid to Common Stockholders $ 0.36       $ 0.35       $ 0.35       $ 0.35       $ 0.35    
    Tangible Common Book Value Per Share $ 27.90       $ 27.34       $ 26.78       $ 26.64       $ 25.10    
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328    
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.23   %     1.21   %     1.39   %     1.07   %     0.87   %
    Return on Average Stockholders’ Equity   9.63         9.38         11.05         8.66         7.16    
    Return on Tangible Common Stockholders’ Equity   14.49         14.12         16.75         13.39         11.29    
    Average Earning Assets to Average Assets   92.71         92.47         92.48         92.54         92.81    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.47         1.50         1.48         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         0.15         0.02         0.21         1.26    
    Average Stockholders’ Equity to Average Assets   12.64         12.76         12.51         12.26         12.02    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.39         5.63         5.82         5.69    
    Interest Expense/Average Earning Assets   2.25         2.17         2.35         2.59         2.53    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.22         3.28         3.23         3.16    
    Efficiency Ratio   53.99         54.54         48.48         53.76         53.84    
    LOANS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Commercial and industrial loans $ 4,440,924     $ 4,306,597     $ 4,114,292     $ 4,041,217     $ 3,949,817  
    Agricultural land, production and other loans to farmers   265,172       243,864       256,312       238,743       239,926  
    Real estate loans:                  
    Construction   836,033       793,175       792,144       814,704       823,267  
    Commercial real estate, non-owner occupied   2,171,092       2,177,869       2,274,016       2,251,351       2,323,533  
    Commercial real estate, owner occupied   1,226,797       1,214,739       1,157,944       1,152,751       1,174,195  
    Residential   2,397,094       2,389,852       2,374,729       2,366,943       2,370,905  
    Home equity   673,961       650,499       659,811       641,188       631,104  
    Individuals’ loans for household and other personal expenditures   141,045       140,954       166,028       158,480       162,089  
    Public finance and other commercial loans   1,144,641       1,087,356       1,059,083       981,431       964,814  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    NET LOANS $ 13,101,443     $ 12,812,874     $ 12,661,602     $ 12,458,980     $ 12,450,113  
                       
                       
    DEPOSITS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Demand deposits $ 7,798,695     $ 7,786,554     $ 7,980,061     $ 7,678,510     $ 7,757,679  
    Savings deposits   4,984,659       4,791,874       4,522,758       4,302,236       4,339,161  
    Certificates and other time deposits of $100,000 or less   617,857       625,203       692,068       802,949       889,949  
    Certificates and other time deposits of $100,000 or more   891,139       896,143       1,043,068       1,277,833       1,415,131  
    Brokered certificates of deposits1   505,228       362,204       283,671       303,572       167,150  
    TOTAL DEPOSITS $ 14,797,578     $ 14,461,978     $ 14,521,626     $ 14,365,100     $ 14,569,070  
                       
    1 – Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.
                       
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Three Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate     		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 252,613     $ 1,892     3.00   %   $ 322,647     $ 2,995     3.71   %
    Federal Home Loan Bank stock   46,598       1,083     9.30         41,749       879     8.42    
    Investment Securities: (1)                      
    Taxable   1,605,718       8,266     2.06         1,788,749       9,051     2.02    
    Tax-exempt (2)   2,042,326       15,843     3.10         2,240,309       17,232     3.08    
    Total Investment Securities   3,648,044       24,109     2.64         4,029,058       26,283     2.61    
    Loans held for sale   25,411       389     6.12         28,585       431     6.03    
    Loans: (3)                      
    Commercial   9,006,650       154,108     6.84         8,691,746       160,848     7.40    
    Real estate mortgage   2,200,521       25,062     4.56         2,150,591       23,799     4.43    
    HELOC and installment   834,901       15,614     7.48         823,417       16,335     7.94    
    Tax-exempt (2)   1,144,246       13,677     4.78         926,191       10,670     4.61    
    Total Loans   13,211,729       208,850     6.32         12,620,530       212,083     6.72    
    Total Earning Assets   17,158,984       235,934     5.50   %     17,013,984       242,240     5.69   %
    Total Non-Earning Assets   1,349,801               1,318,175          
    TOTAL ASSETS $ 18,508,785             $ 18,332,159          
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,545,158     $ 35,303     2.55   %   $ 5,586,549     $ 40,994     2.94   %
    Money market deposits   3,613,952       28,714     3.18         3,036,398       27,230     3.59    
    Savings deposits   1,282,951       2,513     0.78         1,508,734       3,476     0.92    
    Certificates and other time deposits   2,003,682       17,711     3.54         2,414,967       27,451     4.55    
    Total Interest-Bearing Deposits   12,445,743       84,241     2.71         12,546,648       99,151     3.16    
    Borrowings   1,250,519       12,480     3.99         885,919       8,659     3.91    
    Total Interest-Bearing Liabilities   13,696,262       96,721     2.82         13,432,567       107,810     3.21    
    Noninterest-bearing deposits   2,186,370               2,349,219          
    Other liabilities   286,143               347,012          
    Total Liabilities   16,168,775               16,128,798          
    STOCKHOLDERS’ EQUITY   2,340,010               2,203,361          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,508,785             $ 18,332,159          
    Net Interest Income (FTE)     $ 139,213             $ 134,430      
    Net Interest Spread (FTE) (4)         2.68   %           2.48   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.50   %           5.69   %
    Interest Expense / Average Earning Assets         2.25   %           2.53   %
    Net Interest Margin (FTE) (5)         3.25   %           3.16   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate    		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 273,200     $ 4,264     3.12   %   $ 449,173     $ 9,488     4.22   %
    Federal Home Loan Bank stock   45,296       2,080     9.18         41,757       1,714     8.21    
    Investment Securities: (1)                      
    Taxable   1,620,005       16,638     2.05         1,785,903       17,799     1.99    
    Tax-exempt (2)   2,044,489       31,687     3.10         2,243,286       34,461     3.07    
    Total Investment Securities   3,664,494       48,325     2.64         4,029,189       52,260     2.59    
    Loans held for sale   23,190       708     6.11         25,184       759     6.03    
    Loans: (3)                      
    Commercial   8,889,119       301,880     6.79         8,644,927       320,057     7.40    
    Real estate mortgage   2,195,988       49,508     4.51         2,140,769       46,156     4.31    
    HELOC and installment   831,904       30,805     7.41         822,616       32,464     7.89    
    Tax-exempt (2)   1,137,087       27,009     4.75         915,302       21,038     4.60    
    Total Loans   13,077,288       409,910     6.27         12,548,798       420,474     6.70    
    Total Earning Assets   17,060,278       464,579     5.45   %     17,068,917       483,936     5.67   %
    Total Non-Earning Assets   1,365,445               1,312,423          
    TOTAL ASSETS $ 18,425,723             $ 18,381,340          
    LIABILITIES                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,533,858     $ 69,909     2.53   %   $ 5,503,185     $ 80,484     2.92   %
    Money market deposits   3,526,461       54,666     3.10         3,040,938       54,613     3.59    
    Savings deposits   1,291,133       4,958     0.77         1,534,305       7,277     0.95    
    Certificates and other time deposits   1,975,923       35,255     3.57         2,421,413       55,062     4.55    
    Total Interest-Bearing Deposits   12,327,375       164,788     2.67         12,499,841       197,436     3.16    
    Borrowings   1,256,688       24,181     3.85         948,866       19,211     4.05    
    Total Interest-Bearing Liabilities   13,584,063       188,969     2.78         13,448,707       216,647     3.22    
    Noninterest-bearing deposits   2,198,939               2,388,695          
    Other liabilities   302,281               321,188          
    Total Liabilities   16,085,283               16,158,590          
    STOCKHOLDERS’ EQUITY   2,340,440               2,222,750          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,425,723             $ 18,381,340          
    Net Interest Income (FTE)     $ 275,610             $ 267,289      
    Net Interest Spread (FTE) (4)         2.67   %           2.45   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.45   %           5.67   %
    Interest Expense / Average Earning Assets         2.22   %           2.54   %
    Net Interest Margin (FTE) (5)         3.23   %           3.13   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances. 
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Income Available to Common Stockholders – GAAP $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   1         7         11,592         9,114         49         8         51    
    Gain on branch sale   —         —         (19,983 )       —         —         —         —    
    Non-core expenses1,2   —         —         762         —         —         —         3,481    
    Tax on adjustments   —         (2 )       1,851         (2,220 )       (12 )       (2 )       (860 )  
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 56,364       $ 54,875       $ 58,102       $ 55,613       $ 39,493       $ 111,239       $ 89,600    
                               
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328         58,005         58,800    
                               
    Diluted Earnings Per Common Share – GAAP $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68       $ 1.92       $ 1.48    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   —         —         0.20         0.15         —         —         —    
    Gain on branch sale   —         —         (0.34 )       —         —         —         —    
    Non-core expenses1,2   —         —         0.01         —         —         —         0.06    
    Tax on adjustments   —         —         0.03         (0.04 )       —         —         (0.01 )  
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 0.98       $ 0.94       $ 1.00       $ 0.95       $ 0.68       $ 1.92       $ 1.53    
                               
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               
                               
    NET INTEREST MARGIN (“NIM”), ADJUSTED
    (Dollars in Thousands)
      Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Fully Taxable Equivalent (“FTE”) Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income (FTE) (non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Average Earning Assets (GAAP) $ 17,158,984       $ 16,960,475       $ 17,089,198       $ 16,990,358       $ 17,013,984       $ 17,060,278       $ 17,068,917    
    Net Interest Margin (GAAP)   3.10   %     3.07   %     3.15   %     3.09   %     3.02   %     3.09   %     3.00   %
    FTE Adjustment   0.15   %     0.15   %     0.13   %     0.14   %     0.14   %     0.14   %     0.13   %
    Net Interest Margin (FTE) (non-GAAP)   3.25   %     3.22   %     3.28   %     3.23   %     3.16   %     3.23   %     3.13   %
                               
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Total Average Stockholders’ Equity (GAAP) $ 2,340,010       $ 2,340,874       $ 2,312,270       $ 2,251,547       $ 2,203,361       $ 2,340,440       $ 2,222,750    
    Less: Average Preferred Stock   (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )  
    Less: Average Intangible Assets, Net of Tax   (725,813 )       (726,917 )       (728,218 )       (729,581 )       (730,980 )       (726,362 )       (731,706 )  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,589,072       $ 1,588,832       $ 1,558,927       $ 1,496,841       $ 1,447,256       $ 1,588,953       $ 1,465,919    
                               
    Net Income Available to Common Stockholders (GAAP) $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Plus: Intangible Asset Amortization, Net of Tax   1,188         1,206         1,399         1,399         1,399         2,394         2,945    
    Tangible Net Income (Non-GAAP) $ 57,551       $ 56,076       $ 65,279       $ 50,118       $ 40,855       $ 113,627       $ 89,873    
                               
    Return on Tangible Common Equity (Non-GAAP)   14.49   %     14.12   %     16.75   %     13.39   %     11.29   %     14.30   %     12.26   %
                               
                               
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Noninterest Expense (GAAP) $ 93,598       $ 92,902       $ 96,289       $ 94,629       $ 91,413       $ 186,500       $ 188,348    
    Less: Intangible Asset Amortization   (1,505 )       (1,526 )       (1,771 )       (1,772 )       (1,771 )       (3,031 )       (3,728 )  
    Less: OREO and Foreclosure Expenses   (29 )       (600 )       (227 )       (942 )       (373 )       (629 )       (907 )  
                                                                         
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
                               
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Plus: Fully Taxable Equivalent Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Noninterest Income (GAAP) $ 31,303       $ 30,048       $ 42,742       $ 24,866       $ 31,334       $ 61,351       $ 57,972    
    Less: Investment Securities (Gains) Losses   1         7         11,592         9,114         49         8         51    
    Adjusted Noninterest Income (Non-GAAP) $ 31,304       $ 30,055       $ 54,334       $ 33,980       $ 31,383       $ 61,359       $ 58,023    
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     48.48   %     53.76   %     53.84   %     54.26   %     56.47   %
                               
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
    Less: Non-core Expenses1,2   —         —         (762 )       —         —         —         (3,481 )  
    Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $ 92,064       $ 90,776       $ 93,529       $ 91,915       $ 89,269       $ 182,840       $ 180,232    
                               
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Less: Gain on Branch Sale   —         —         (19,983 )       —         —         —         —    
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 170,517       $ 166,452       $ 174,509       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
                                                                         
    Adjusted Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     53.60   %     53.76   %     53.84   %     54.26   %     55.40   %
     
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               


    For more information, contact:
    Nicole M. Weaver, First Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Second Quarter 2025 Highlights:

    • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
    • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
    • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
    • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
    • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
    • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
    • The efficiency ratio totaled 53.99% for the quarter.

    “Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

    Second Quarter Financial Results:

    First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

    Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

    Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

    Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

    Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

    Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

    Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

    The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) June 30,
        2025       2024  
    ASSETS      
    Cash and due from banks $ 81,567     $ 105,372  
    Interest-bearing deposits   223,343       168,528  
    Investment securities available for sale   1,358,130       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,134,195  
    Loans held for sale   28,783       32,292  
    Loans   13,296,759       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (189,537 )
    Net loans   13,101,443       12,450,113  
    Premises and equipment   122,808       133,245  
    Federal Home Loan Bank stock   47,290       41,738  
    Interest receivable   93,258       97,546  
    Goodwill   712,002       712,002  
    Other intangibles   16,797       23,371  
    Cash surrender value of life insurance   305,695       306,379  
    Other real estate owned   177       4,824  
    Tax asset, deferred and receivable   97,749       107,080  
    Other assets   380,909       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,303,423  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,197,416     $ 2,303,313  
    Interest-bearing   12,600,162       12,265,757  
    Total Deposits   14,797,578       14,569,070  
    Borrowings:      
    Federal funds purchased   85,000       147,229  
    Securities sold under repurchase agreements   114,758       100,451  
    Federal Home Loan Bank advances   898,702       832,703  
    Subordinated debentures and other borrowings   62,617       93,589  
    Total Borrowings   1,161,077       1,173,972  
    Interest payable   16,174       18,554  
    Other liabilities   269,996       329,302  
    Total Liabilities   16,244,825       16,090,898  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,272,433 and 58,045,653 shares   7,159       7,256  
    Additional paid-in capital   1,163,170       1,191,193  
    Retained earnings   1,342,473       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,303,423  
           
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Six Months Ended
    (Dollars In Thousands, Except Per Share Amounts) June 30,   June 30,
        2025       2024       2025       2024  
    INTEREST INCOME              
    Loans:              
    Taxable $ 195,173     $ 201,413     $ 382,901     $ 399,436  
    Tax-exempt   10,805       8,430       21,337       16,620  
    Investment securities:              
    Taxable   8,266       9,051       16,638       17,799  
    Tax-exempt   12,516       13,613       25,033       27,224  
    Deposits with financial institutions   1,892       2,995       4,264       9,488  
    Federal Home Loan Bank stock   1,083       879       2,080       1,714  
    Total Interest Income   229,735       236,381       452,253       472,281  
    INTEREST EXPENSE              
    Deposits   84,241       99,151       164,788       197,436  
    Federal funds purchased   965       126       1,777       126  
    Securities sold under repurchase agreements   663       645       1,405       1,677  
    Federal Home Loan Bank advances   9,714       6,398       19,078       13,171  
    Subordinated debentures and other borrowings   1,138       1,490       1,921       4,237  
    Total Interest Expense   96,721       107,810       188,969       216,647  
    NET INTEREST INCOME   133,014       128,571       263,284       255,634  
    Provision for credit losses   5,600       24,500       9,800       26,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414       104,071       253,484       229,134  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,566       8,214       16,638       16,121  
    Fiduciary and wealth management fees   8,831       8,825       17,475       17,025  
    Card payment fees   4,932       4,739       9,458       9,239  
    Net gains and fees on sales of loans   5,849       5,141       10,871       8,395  
    Derivative hedge fees   831       489       1,235       752  
    Other customer fees   401       460       816       887  
    Earnings on cash surrender value of life insurance   1,913       1,929       4,092       3,521  
    Net realized losses on sales of available for sale securities   (1 )     (49 )     (8 )     (51 )
    Other income (loss)   (19 )     1,586       774       2,083  
    Total Noninterest Income   31,303       31,334       61,351       57,972  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   54,527       52,214       109,509       110,507  
    Net occupancy   6,845       6,746       14,061       14,058  
    Equipment   6,927       6,599       13,935       12,825  
    Marketing   1,997       1,773       3,350       2,971  
    Outside data processing fees   7,107       7,072       13,036       13,961  
    Printing and office supplies   272       354       619       707  
    Intangible asset amortization   1,505       1,771       3,031       3,728  
    FDIC assessments   3,552       3,278       7,200       7,565  
    Other real estate owned and foreclosure expenses   29       373       629       907  
    Professional and other outside services   3,741       3,822       7,002       7,774  
    Other expenses   7,096       7,411       14,128       13,345  
    Total Noninterest Expenses   93,598       91,413       186,500       188,348  
    INCOME BEFORE INCOME TAX   65,119       43,992       128,335       98,758  
    Income tax expense   8,287       4,067       16,164       10,892  
    NET INCOME   56,832       39,925       112,171       87,866  
    Preferred stock dividends   469       469       938       938  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363     $ 39,456     $ 111,233     $ 86,928  
                   
                   
    PER SHARE DATA:              
    Basic Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.93     $ 1.48  
    Diluted Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.92     $ 1.48  
    Cash Dividends Paid to Common Stockholders $ 0.36     $ 0.35     $ 0.71     $ 0.69  
    Tangible Common Book Value Per Share $ 27.90     $ 25.10     $ 27.90     $ 25.10  
    Average Diluted Common Shares Outstanding (in thousands)   57,773       58,328       58,005       58,800  
                                   
    FINANCIAL HIGHLIGHTS              
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   June 30,
       2025    2024    2025    2024
    NET CHARGE-OFFS $ 2,315       $ 39,644       $ 7,241       $ 41,897    
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,508,785       $ 18,332,159       $ 18,425,723       $ 18,381,340    
    Total Loans   13,211,729         12,620,530         13,077,288         12,548,798    
    Total Earning Assets   17,158,984         17,013,984         17,060,278         17,068,917    
    Total Deposits   14,632,113         14,895,867         14,526,314         14,888,536    
    Total Stockholders’ Equity   2,340,010         2,203,361         2,340,440         2,222,750    
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.23   %     0.87   %     1.22   %     0.96   %
    Return on Average Stockholders’ Equity   9.63         7.16         9.51         7.82    
    Return on Tangible Common Stockholders’ Equity   14.49         11.29         14.30         12.26    
    Average Earning Assets to Average Assets   92.71         92.81         92.59         92.86    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.50         1.47         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         1.26         0.11         0.67    
    Average Stockholders’ Equity to Average Assets   12.64         12.02         12.70         12.09    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.69         5.45         5.67    
    Interest Expense/Average Earning Assets   2.25         2.53         2.22         2.54    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.16         3.23         3.13    
    Efficiency Ratio   53.99         53.84         54.26         56.47    
                   
    ASSET QUALITY                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    Nonaccrual Loans $ 67,358       $ 81,922       $ 73,773       $ 59,088       $ 61,906    
    Other Real Estate Owned and Repossessions   177         4,966         4,948         5,247         4,824    
    Nonperforming Assets (NPA)   67,535         86,888         78,721         64,335         66,730    
    90+ Days Delinquent   4,443         4,280         5,902         14,105         1,686    
    NPAs & 90 Day Delinquent $ 71,978       $ 91,168       $ 84,623       $ 78,440       $ 68,416    
                       
    Allowance for Credit Losses – Loans $ 195,316       $ 192,031       $ 192,757       $ 187,828       $ 189,537    
    Quarterly Net Charge-offs   2,315         4,926         771         6,709         39,644    
    NPAs / Actual Assets %   0.36   %     0.47   %     0.43   %     0.35   %     0.36   %
    NPAs & 90 Day / Actual Assets %   0.39   %     0.49   %     0.46   %     0.43   %     0.37   %
    NPAs / Actual Loans and OREO %   0.51   %     0.67   %     0.61   %     0.51   %     0.53   %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.47   %     1.47   %     1.50   %     1.48   %     1.50   %
    Quarterly Net Charge-offs as % of Average Loans (Annualized)   0.07   %     0.15   %     0.02   %     0.21   %     1.26   %
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $ 81,567     $ 86,113     $ 87,616     $ 84,719     $ 105,372  
    Interest-bearing deposits   223,343       331,534       298,891       359,126       168,528  
    Investment securities available for sale   1,358,130       1,378,489       1,386,475       1,553,496       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,048,632       2,074,220       2,108,649       2,134,195  
    Loans held for sale   28,783       23,004       18,663       40,652       32,292  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    Net loans   13,101,443       12,812,874       12,661,602       12,458,980       12,450,113  
    Premises and equipment   122,808       128,749       129,743       129,582       133,245  
    Federal Home Loan Bank stock   47,290       45,006       41,690       41,716       41,738  
    Interest receivable   93,258       88,352       91,829       92,055       97,546  
    Goodwill   712,002       712,002       712,002       712,002       712,002  
    Other intangibles   16,797       18,302       19,828       21,599       23,371  
    Cash surrender value of life insurance   305,695       304,918       304,906       304,613       306,379  
    Other real estate owned   177       4,966       4,948       5,247       4,824  
    Tax asset, deferred and receivable   97,749       87,665       92,387       86,732       107,080  
    Other assets   380,909       369,181       387,169       348,384       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,197,416     $ 2,185,057     $ 2,325,579     $ 2,334,197     $ 2,303,313  
    Interest-bearing   12,600,162       12,276,921       12,196,047       12,030,903       12,265,757  
    Total Deposits   14,797,578       14,461,978       14,521,626       14,365,100       14,569,070  
    Borrowings:                  
    Federal funds purchased   85,000       185,000       99,226       30,000       147,229  
    Securities sold under repurchase agreements   114,758       122,947       142,876       124,894       100,451  
    Federal Home Loan Bank advances   898,702       972,478       822,554       832,629       832,703  
    Subordinated debentures and other borrowings   62,617       62,619       93,529       93,562       93,589  
    Total Borrowings   1,161,077       1,343,044       1,158,185       1,081,085       1,173,972  
    Deposits and other liabilities held for sale   —       —       —       288,476       —  
    Interest payable   16,174       13,304       16,102       18,089       18,554  
    Other liabilities   269,996       289,247       311,073       292,429       329,302  
    Total Liabilities   16,244,825       16,107,573       16,006,986       16,045,179       16,090,898  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,159       7,226       7,247       7,265       7,256  
    Additional paid-in capital   1,163,170       1,183,263       1,188,768       1,192,683       1,191,193  
    Retained earnings   1,342,473       1,306,911       1,272,528       1,229,125       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (190,311 )     (188,685 )     (151,825 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,332,214       2,304,983       2,302,373       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 195,173       $ 187,728       $ 197,536       $ 206,680       $ 201,413    
    Tax-exempt   10,805         10,532         9,020         8,622         8,430    
    Investment securities:                  
    Taxable   8,266         8,372         9,024         9,263         9,051    
    Tax-exempt   12,516         12,517         12,754         13,509         13,613    
    Deposits with financial institutions   1,892         2,372         5,350         2,154         2,995    
    Federal Home Loan Bank stock   1,083         997         958         855         879    
    Total Interest Income   229,735         222,518         234,642         241,083         236,381    
    INTEREST EXPENSE                  
    Deposits   84,241         80,547         89,835         98,856         99,151    
    Federal funds purchased   965         812         26         329         126    
    Securities sold under repurchase agreements   663         742         680         700         645    
    Federal Home Loan Bank advances   9,714         9,364         8,171         8,544         6,398    
    Subordinated debentures and other borrowings   1,138         783         1,560         1,544         1,490    
    Total Interest Expense   96,721         92,248         100,272         109,973         107,810    
    NET INTEREST INCOME   133,014         130,270         134,370         131,110         128,571    
    Provision for credit losses   5,600         4,200         4,200         5,000         24,500    
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414         126,070         130,170         126,110         104,071    
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,566         8,072         8,124         8,361         8,214    
    Fiduciary and wealth management fees   8,831         8,644         8,665         8,525         8,825    
    Card payment fees   4,932         4,526         4,957         5,121         4,739    
    Net gains and fees on sales of loans   5,849         5,022         5,681         6,764         5,141    
    Derivative hedge fees   831         404         1,594         736         489    
    Other customer fees   401         415         316         344         460    
    Earnings on cash surrender value of life insurance   1,913         2,179         2,188         2,755         1,929    
    Net realized losses on sales of available for sale securities   (1 )       (7 )       (11,592 )       (9,114 )       (49 )  
    Gain on branch sale   —         —         19,983         —         —    
    Other income (loss)   (19 )       793         2,826         1,374         1,586    
    Total Noninterest Income   31,303         30,048         42,742         24,866         31,334    
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   54,527         54,982         55,437         55,223         52,214    
    Net occupancy   6,845         7,216         7,335         6,994         6,746    
    Equipment   6,927         7,008         7,028         6,949         6,599    
    Marketing   1,997         1,353         2,582         1,836         1,773    
    Outside data processing fees   7,107         5,929         6,029         7,150         7,072    
    Printing and office supplies   272         347         377         378         354    
    Intangible asset amortization   1,505         1,526         1,771         1,772         1,771    
    FDIC assessments   3,552         3,648         3,744         3,720         3,278    
    Other real estate owned and foreclosure expenses   29         600         227         942         373    
    Professional and other outside services   3,741         3,261         3,777         3,035         3,822    
    Other expenses   7,096         7,032         7,982         6,630         7,411    
    Total Noninterest Expenses   93,598         92,902         96,289         94,629         91,413    
    INCOME BEFORE INCOME TAX   65,119         63,216         76,623         56,347         43,992    
    Income tax expense   8,287         7,877         12,274         7,160         4,067    
    NET INCOME   56,832         55,339         64,349         49,187         39,925    
    Preferred stock dividends   469         469         469         468         469    
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456    
                       
                       
    PER SHARE DATA:                  
    Basic Net Income Available to Common Stockholders $ 0.98       $ 0.95       $ 1.10       $ 0.84       $ 0.68    
    Diluted Net Income Available to Common Stockholders $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68    
    Cash Dividends Paid to Common Stockholders $ 0.36       $ 0.35       $ 0.35       $ 0.35       $ 0.35    
    Tangible Common Book Value Per Share $ 27.90       $ 27.34       $ 26.78       $ 26.64       $ 25.10    
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328    
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.23   %     1.21   %     1.39   %     1.07   %     0.87   %
    Return on Average Stockholders’ Equity   9.63         9.38         11.05         8.66         7.16    
    Return on Tangible Common Stockholders’ Equity   14.49         14.12         16.75         13.39         11.29    
    Average Earning Assets to Average Assets   92.71         92.47         92.48         92.54         92.81    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.47         1.50         1.48         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         0.15         0.02         0.21         1.26    
    Average Stockholders’ Equity to Average Assets   12.64         12.76         12.51         12.26         12.02    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.39         5.63         5.82         5.69    
    Interest Expense/Average Earning Assets   2.25         2.17         2.35         2.59         2.53    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.22         3.28         3.23         3.16    
    Efficiency Ratio   53.99         54.54         48.48         53.76         53.84    
    LOANS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Commercial and industrial loans $ 4,440,924     $ 4,306,597     $ 4,114,292     $ 4,041,217     $ 3,949,817  
    Agricultural land, production and other loans to farmers   265,172       243,864       256,312       238,743       239,926  
    Real estate loans:                  
    Construction   836,033       793,175       792,144       814,704       823,267  
    Commercial real estate, non-owner occupied   2,171,092       2,177,869       2,274,016       2,251,351       2,323,533  
    Commercial real estate, owner occupied   1,226,797       1,214,739       1,157,944       1,152,751       1,174,195  
    Residential   2,397,094       2,389,852       2,374,729       2,366,943       2,370,905  
    Home equity   673,961       650,499       659,811       641,188       631,104  
    Individuals’ loans for household and other personal expenditures   141,045       140,954       166,028       158,480       162,089  
    Public finance and other commercial loans   1,144,641       1,087,356       1,059,083       981,431       964,814  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    NET LOANS $ 13,101,443     $ 12,812,874     $ 12,661,602     $ 12,458,980     $ 12,450,113  
                       
                       
    DEPOSITS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Demand deposits $ 7,798,695     $ 7,786,554     $ 7,980,061     $ 7,678,510     $ 7,757,679  
    Savings deposits   4,984,659       4,791,874       4,522,758       4,302,236       4,339,161  
    Certificates and other time deposits of $100,000 or less   617,857       625,203       692,068       802,949       889,949  
    Certificates and other time deposits of $100,000 or more   891,139       896,143       1,043,068       1,277,833       1,415,131  
    Brokered certificates of deposits1   505,228       362,204       283,671       303,572       167,150  
    TOTAL DEPOSITS $ 14,797,578     $ 14,461,978     $ 14,521,626     $ 14,365,100     $ 14,569,070  
                       
    1 – Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.
                       
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Three Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate     		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 252,613     $ 1,892     3.00   %   $ 322,647     $ 2,995     3.71   %
    Federal Home Loan Bank stock   46,598       1,083     9.30         41,749       879     8.42    
    Investment Securities: (1)                      
    Taxable   1,605,718       8,266     2.06         1,788,749       9,051     2.02    
    Tax-exempt (2)   2,042,326       15,843     3.10         2,240,309       17,232     3.08    
    Total Investment Securities   3,648,044       24,109     2.64         4,029,058       26,283     2.61    
    Loans held for sale   25,411       389     6.12         28,585       431     6.03    
    Loans: (3)                      
    Commercial   9,006,650       154,108     6.84         8,691,746       160,848     7.40    
    Real estate mortgage   2,200,521       25,062     4.56         2,150,591       23,799     4.43    
    HELOC and installment   834,901       15,614     7.48         823,417       16,335     7.94    
    Tax-exempt (2)   1,144,246       13,677     4.78         926,191       10,670     4.61    
    Total Loans   13,211,729       208,850     6.32         12,620,530       212,083     6.72    
    Total Earning Assets   17,158,984       235,934     5.50   %     17,013,984       242,240     5.69   %
    Total Non-Earning Assets   1,349,801               1,318,175          
    TOTAL ASSETS $ 18,508,785             $ 18,332,159          
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,545,158     $ 35,303     2.55   %   $ 5,586,549     $ 40,994     2.94   %
    Money market deposits   3,613,952       28,714     3.18         3,036,398       27,230     3.59    
    Savings deposits   1,282,951       2,513     0.78         1,508,734       3,476     0.92    
    Certificates and other time deposits   2,003,682       17,711     3.54         2,414,967       27,451     4.55    
    Total Interest-Bearing Deposits   12,445,743       84,241     2.71         12,546,648       99,151     3.16    
    Borrowings   1,250,519       12,480     3.99         885,919       8,659     3.91    
    Total Interest-Bearing Liabilities   13,696,262       96,721     2.82         13,432,567       107,810     3.21    
    Noninterest-bearing deposits   2,186,370               2,349,219          
    Other liabilities   286,143               347,012          
    Total Liabilities   16,168,775               16,128,798          
    STOCKHOLDERS’ EQUITY   2,340,010               2,203,361          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,508,785             $ 18,332,159          
    Net Interest Income (FTE)     $ 139,213             $ 134,430      
    Net Interest Spread (FTE) (4)         2.68   %           2.48   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.50   %           5.69   %
    Interest Expense / Average Earning Assets         2.25   %           2.53   %
    Net Interest Margin (FTE) (5)         3.25   %           3.16   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate    		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 273,200     $ 4,264     3.12   %   $ 449,173     $ 9,488     4.22   %
    Federal Home Loan Bank stock   45,296       2,080     9.18         41,757       1,714     8.21    
    Investment Securities: (1)                      
    Taxable   1,620,005       16,638     2.05         1,785,903       17,799     1.99    
    Tax-exempt (2)   2,044,489       31,687     3.10         2,243,286       34,461     3.07    
    Total Investment Securities   3,664,494       48,325     2.64         4,029,189       52,260     2.59    
    Loans held for sale   23,190       708     6.11         25,184       759     6.03    
    Loans: (3)                      
    Commercial   8,889,119       301,880     6.79         8,644,927       320,057     7.40    
    Real estate mortgage   2,195,988       49,508     4.51         2,140,769       46,156     4.31    
    HELOC and installment   831,904       30,805     7.41         822,616       32,464     7.89    
    Tax-exempt (2)   1,137,087       27,009     4.75         915,302       21,038     4.60    
    Total Loans   13,077,288       409,910     6.27         12,548,798       420,474     6.70    
    Total Earning Assets   17,060,278       464,579     5.45   %     17,068,917       483,936     5.67   %
    Total Non-Earning Assets   1,365,445               1,312,423          
    TOTAL ASSETS $ 18,425,723             $ 18,381,340          
    LIABILITIES                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,533,858     $ 69,909     2.53   %   $ 5,503,185     $ 80,484     2.92   %
    Money market deposits   3,526,461       54,666     3.10         3,040,938       54,613     3.59    
    Savings deposits   1,291,133       4,958     0.77         1,534,305       7,277     0.95    
    Certificates and other time deposits   1,975,923       35,255     3.57         2,421,413       55,062     4.55    
    Total Interest-Bearing Deposits   12,327,375       164,788     2.67         12,499,841       197,436     3.16    
    Borrowings   1,256,688       24,181     3.85         948,866       19,211     4.05    
    Total Interest-Bearing Liabilities   13,584,063       188,969     2.78         13,448,707       216,647     3.22    
    Noninterest-bearing deposits   2,198,939               2,388,695          
    Other liabilities   302,281               321,188          
    Total Liabilities   16,085,283               16,158,590          
    STOCKHOLDERS’ EQUITY   2,340,440               2,222,750          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,425,723             $ 18,381,340          
    Net Interest Income (FTE)     $ 275,610             $ 267,289      
    Net Interest Spread (FTE) (4)         2.67   %           2.45   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.45   %           5.67   %
    Interest Expense / Average Earning Assets         2.22   %           2.54   %
    Net Interest Margin (FTE) (5)         3.23   %           3.13   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances. 
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Income Available to Common Stockholders – GAAP $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   1         7         11,592         9,114         49         8         51    
    Gain on branch sale   —         —         (19,983 )       —         —         —         —    
    Non-core expenses1,2   —         —         762         —         —         —         3,481    
    Tax on adjustments   —         (2 )       1,851         (2,220 )       (12 )       (2 )       (860 )  
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 56,364       $ 54,875       $ 58,102       $ 55,613       $ 39,493       $ 111,239       $ 89,600    
                               
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328         58,005         58,800    
                               
    Diluted Earnings Per Common Share – GAAP $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68       $ 1.92       $ 1.48    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   —         —         0.20         0.15         —         —         —    
    Gain on branch sale   —         —         (0.34 )       —         —         —         —    
    Non-core expenses1,2   —         —         0.01         —         —         —         0.06    
    Tax on adjustments   —         —         0.03         (0.04 )       —         —         (0.01 )  
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 0.98       $ 0.94       $ 1.00       $ 0.95       $ 0.68       $ 1.92       $ 1.53    
                               
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               
                               
    NET INTEREST MARGIN (“NIM”), ADJUSTED
    (Dollars in Thousands)
      Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Fully Taxable Equivalent (“FTE”) Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income (FTE) (non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Average Earning Assets (GAAP) $ 17,158,984       $ 16,960,475       $ 17,089,198       $ 16,990,358       $ 17,013,984       $ 17,060,278       $ 17,068,917    
    Net Interest Margin (GAAP)   3.10   %     3.07   %     3.15   %     3.09   %     3.02   %     3.09   %     3.00   %
    FTE Adjustment   0.15   %     0.15   %     0.13   %     0.14   %     0.14   %     0.14   %     0.13   %
    Net Interest Margin (FTE) (non-GAAP)   3.25   %     3.22   %     3.28   %     3.23   %     3.16   %     3.23   %     3.13   %
                               
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Total Average Stockholders’ Equity (GAAP) $ 2,340,010       $ 2,340,874       $ 2,312,270       $ 2,251,547       $ 2,203,361       $ 2,340,440       $ 2,222,750    
    Less: Average Preferred Stock   (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )  
    Less: Average Intangible Assets, Net of Tax   (725,813 )       (726,917 )       (728,218 )       (729,581 )       (730,980 )       (726,362 )       (731,706 )  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,589,072       $ 1,588,832       $ 1,558,927       $ 1,496,841       $ 1,447,256       $ 1,588,953       $ 1,465,919    
                               
    Net Income Available to Common Stockholders (GAAP) $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Plus: Intangible Asset Amortization, Net of Tax   1,188         1,206         1,399         1,399         1,399         2,394         2,945    
    Tangible Net Income (Non-GAAP) $ 57,551       $ 56,076       $ 65,279       $ 50,118       $ 40,855       $ 113,627       $ 89,873    
                               
    Return on Tangible Common Equity (Non-GAAP)   14.49   %     14.12   %     16.75   %     13.39   %     11.29   %     14.30   %     12.26   %
                               
                               
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Noninterest Expense (GAAP) $ 93,598       $ 92,902       $ 96,289       $ 94,629       $ 91,413       $ 186,500       $ 188,348    
    Less: Intangible Asset Amortization   (1,505 )       (1,526 )       (1,771 )       (1,772 )       (1,771 )       (3,031 )       (3,728 )  
    Less: OREO and Foreclosure Expenses   (29 )       (600 )       (227 )       (942 )       (373 )       (629 )       (907 )  
                                                                         
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
                               
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Plus: Fully Taxable Equivalent Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Noninterest Income (GAAP) $ 31,303       $ 30,048       $ 42,742       $ 24,866       $ 31,334       $ 61,351       $ 57,972    
    Less: Investment Securities (Gains) Losses   1         7         11,592         9,114         49         8         51    
    Adjusted Noninterest Income (Non-GAAP) $ 31,304       $ 30,055       $ 54,334       $ 33,980       $ 31,383       $ 61,359       $ 58,023    
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     48.48   %     53.76   %     53.84   %     54.26   %     56.47   %
                               
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
    Less: Non-core Expenses1,2   —         —         (762 )       —         —         —         (3,481 )  
    Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $ 92,064       $ 90,776       $ 93,529       $ 91,915       $ 89,269       $ 182,840       $ 180,232    
                               
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Less: Gain on Branch Sale   —         —         (19,983 )       —         —         —         —    
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 170,517       $ 166,452       $ 174,509       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
                                                                         
    Adjusted Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     53.60   %     53.76   %     53.84   %     54.26   %     55.40   %
     
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               


    For more information, contact:
    Nicole M. Weaver, First Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI: Brookline Bancorp Announces Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $22.0 million, EPS of $0.25

    Quarterly Dividend of $0.135

    BOSTON, July 23, 2025 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, and $16.4 million, or $0.18 per basic and diluted share, for the second quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $22.4 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, and $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024.

    Commenting on the second quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the second quarter of the year led by growth in our C&I portfolio and deposits. Our dedicated team of bankers continue to provide exceptional service to the communities we serve. As a result of these efforts, our net interest margin expanded again this quarter despite intentional contraction in our commercial real estate portfolio.”

    BALANCE SHEET

    Total assets at June 30, 2025 were $11.6 billion, representing an increase of $48.9 million from $11.5 billion at March 31, 2025, primarily driven by an increase in cash and cash equivalents partially offset by a reduction of loans and leases. Total assets decreased $66.5 million from June 30, 2024.

    At June 30, 2025, total loans and leases were $9.6 billion, representing a decrease of $60.3 million from March 31, 2025, and a decrease of $138.8 million from June 30, 2024.

    Total investment securities at June 30, 2025 decreased $15.7 million to $866.7 million from $882.4 million at March 31, 2025, and increased $10.3 million from $856.4 million at June 30, 2024. Total cash and cash equivalents at June 30, 2025 increased $149.2 million to $506.7 million from $357.5 million at March 31, 2025, and increased $163.6 million from $343.1 million at June 30, 2024. As of June 30, 2025, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets, compared to 10.8 percent and 10.3 percent as of March 31, 2025 and June 30, 2024, respectively.

    Total deposits at June 30, 2025 increased $49.8 million to $9.0 billion from March 31, 2025, primarily driven by an increase of $58.3 million in customer deposits partially offset by a decline of $8.5 million in brokered deposits. Total deposits increased $224.2 million from $8.7 billion at June 30, 2024, primarily driven by an increase of $391.2 million in customer deposits partially offset by a decline of $167.0 million in brokered deposits.

    Total borrowed funds at June 30, 2025 remained flat at $1.2 billion compared to March 31, 2025, and decreased $274.4 million from $1.4 billion at June 30, 2024.

    The ratio of stockholders’ equity to total assets was 10.84 percent at June 30, 2025, as compared to 10.77 percent at March 31, 2025, and 10.30 percent at June 30, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.82 percent at June 30, 2025, as compared to 8.73 percent at March 31, 2025, and 8.23 percent at June 30, 2024. Tangible book value per common share (non-GAAP) increased $0.17 from $11.03 at March 31, 2025 to $11.20 at June 30, 2025, and increased $0.67 from $10.53 at June 30, 2024.

    NET INTEREST INCOME

    Net interest income increased $2.9 million to $88.7 million during the second quarter of 2025 from $85.8 million for the quarter ended March 31, 2025. The net interest margin increased 10 basis points to 3.32 percent for the three months ended June 30, 2025 from 3.22 percent for the three months ended March 31, 2025, primarily driven by lower funding costs and higher yields on loans and leases.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended June 30, 2025 increased $0.3 million to $6.0 million from $5.7 million for the quarter ended March 31, 2025. The increase was primarily driven by an increase of $0.2 million in gain on sales of loans and leases.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $7.0 million for the quarter ended June 30, 2025, compared to $6.0 million for the quarter ended March 31, 2025. The increase in provision was driven by a combination of continued stress in the Boston office sector as well as additional specific reserves on two large Eastern Funding credits.

    Total net charge-offs for the second quarter of 2025 were $5.1 million, compared to $7.6 million in the first quarter of 2025. The $5.1 million in net charge-offs was driven by two commercial real estate loans that were sold during the quarter resulting in a combined $3.5 million in net charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 21 basis points for the second quarter of 2025 from 31 basis points for the first quarter of 2025.

    The allowance for loan and lease losses represented 1.32 percent of total loans and leases at June 30, 2025, compared to 1.29 percent at March 31, 2025, and 1.25 percent at June 30, 2024.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at June 30, 2025, flat compared to March 31, 2025. Total nonaccrual loans and leases decreased $0.8 million to $62.3 million at June 30, 2025 from $63.1 million at March 31, 2025, driven by the sale of two commercial real estate loans. The ratio of nonperforming assets to total assets was 0.55 percent at June 30, 2025, a decrease from 0.56 percent at March 31, 2025. Total nonperforming assets decreased $0.4 million to $63.6 million at June 30, 2025 from $64.0 million at March 31, 2025.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended June 30, 2025 decreased $1.9 million to $58.1 million from $60.0 million for the quarter ended March 31, 2025. The decrease was primarily driven by decreases of $0.7 million in compensation and employee benefits expense, $0.5 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. (“Berkshire”), and $0.4 million in occupancy expense, partially offset by an increase of $0.5 million in advertising and marketing expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.6 percent and 25.3 percent for the three and six months ended June 30, 2025 compared to 25.0 percent for the three months ended March 31, 2025 and 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.77 percent during the second quarter 2025 from 0.66 percent for the first quarter of 2025.

    The annualized return on average stockholders’ equity increased to 7.04 percent during the second quarter of 2025 from 6.19 percent for the first quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 8.85 percent for the second quarter of 2025 from 7.82 percent for the first quarter of 2025.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2025. The dividend will be paid on August 22, 2025 to stockholders of record on August 8, 2025.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 24, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/149362707. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 673409). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 916742.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.6 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction), or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact: Carl M. Carlson
      Brookline Bancorp, Inc.
      Co-President and Chief Financial and Strategy Officer
      (617) 425-5331
      carl.carlson@brkl.com
    BROOKLINE BANCORP, INC AND SUBSIDIARIES
    Selected Financial Highlights (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 Data)
    Earnings Data:                            
    Net interest income $ 88,685     $ 85,830     $ 84,988     $ 83,008     $ 80,001  
    Provision for credit losses on loans 6,997     5,974     4,141     4,832     5,607  
    Provision (recovery) of credit losses on investments 3     12     (104)     (172)     (39)  
    Non-interest income 5,970     5,660     6,587     6,348     6,396  
    Non-interest expense 58,061     60,022     63,719     57,948     59,184  
    Income before provision for income taxes 29,594     25,482     23,819     26,748     21,645  
    Net income 22,026     19,100     17,536     20,142     16,372  
                                 
    Performance Ratios:                            
    Net interest margin (1) 3.32 %   3.22 %   3.12 %   3.07 %   3.00 %
    Interest-rate spread (1) 2.57 %   2.38 %   2.35 %   2.26 %   2.14 %
    Return on average assets (annualized) 0.77 %   0.66 %   0.61 %   0.70 %   0.57 %
    Return on average tangible assets (annualized) (non-GAAP) 0.79 %   0.68 %   0.62 %   0.72 %   0.59 %
    Return on average stockholders’ equity (annualized) 7.04 %   6.19 %   5.69 %   6.63 %   5.49 %
    Return on average tangible stockholders’ equity (annualized) (non-GAAP) 8.85 %   7.82 %   7.21 %   8.44 %   7.04 %
    Efficiency ratio (2) 61.34 %   65.60 %   69.58 %   64.85 %   68.50 %
                                 
    Per Common Share Data:                            
    Net income — Basic $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Net income — Diluted 0.25     0.21     0.20     0.23     0.18  
    Cash dividends declared 0.135     0.135     0.135     0.135     0.135  
    Book value per share (end of period) 14.08     13.92     13.71     13.81     13.48  
    Tangible book value per share (end of period) (non-GAAP) 11.20     11.03     10.81     10.89     10.53  
    Stock price (end of period) 10.55     10.90     11.80     10.09     8.35  
                                 
    Balance Sheet:                            
    Total assets $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    Total loans and leases 9,582,374     9,642,722     9,779,288     9,755,236     9,721,137  
    Total deposits 8,961,202     8,911,452     8,901,644     8,732,271     8,737,036  
    Total stockholders’ equity 1,254,171     1,240,182     1,221,939     1,230,362     1,198,480  
                                 
    Asset Quality:                            
    Nonperforming assets $ 63,596     $ 64,021     $ 70,452     $ 72,821     $ 62,683  
    Nonperforming assets as a percentage of total assets 0.55 %   0.56 %   0.59 %   0.62 %   0.54 %
    Allowance for loan and lease losses $ 126,725     $ 124,145     $ 125,083     $ 127,316     $ 121,750  
    Allowance for loan and lease losses as a percentage of total loans and leases 1.32 %   1.29 %   1.28 %   1.31 %   1.25 %
    Net loan and lease charge-offs $ 5,127     $ 7,597     $ 7,252     $ 3,808     $ 8,387  
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.21 %   0.31 %   0.30 %   0.16 %   0.35 %
                                 
    Capital Ratios:                            
    Stockholders’ equity to total assets 10.84 %   10.77 %   10.26 %   10.54 %   10.30 %
    Tangible stockholders’ equity to tangible assets (non-GAAP) 8.82 %   8.73 %   8.27 %   8.50 %   8.23 %
                                 
    (1) Calculated on a fully tax-equivalent basis.                            
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.                            
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)
               
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		  
    ASSETS (In Thousands Except Share Data)
    Cash and due from banks $ 87,386     $ 78,741     $ 64,673     $ 82,168     $ 60,067  
    Short-term investments   419,362       278,805       478,997       325,721       283,017  
    Total cash and cash equivalents   506,748       357,546       543,670       407,889       343,084  
    Investment securities available-for-sale   866,684       882,353       895,034       855,391       856,439  
    Total investment securities   866,684       882,353       895,034       855,391       856,439  
    Allowance for investment security losses   (97 )     (94 )     (82 )     (186 )     (359 )
    Net investment securities   866,587       882,259       894,952       855,205       856,080  
    Loans and leases:          
    Commercial real estate loans   5,485,546       5,580,982       5,716,114       5,779,290       5,782,111  
    Commercial loans and leases   2,520,347       2,512,912       2,506,664       2,453,038       2,443,530  
    Consumer loans   1,576,481       1,548,828       1,556,510       1,522,908       1,495,496  
    Total loans and leases   9,582,374       9,642,722       9,779,288       9,755,236       9,721,137  
    Allowance for loan and lease losses   (126,725 )     (124,145 )     (125,083 )     (127,316 )     (121,750 )
    Net loans and leases   9,455,649       9,518,577       9,654,205       9,627,920       9,599,387  
    Restricted equity securities   66,481       67,537       83,155       82,675       78,963  
    Premises and equipment, net of accumulated depreciation   83,963       84,439       86,781       86,925       88,378  
    Right-of-use asset operating leases   42,415       44,144       43,527       41,934       35,691  
    Deferred tax asset   52,325       52,176       56,620       50,827       60,032  
    Goodwill   241,222       241,222       241,222       241,222       241,222  
    Identified intangible assets, net of accumulated amortization   14,600       16,030       17,461       19,162       20,830  
    Other real estate owned and repossessed assets   1,288       917       1,103       1,579       1,974  
    Other assets   237,467       255,022       282,630       261,383       309,651  
    Total assets $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Deposits:          
    Demand checking accounts $ 1,726,933     $ 1,664,629     $ 1,692,394     $ 1,681,858     $ 1,638,378  
    NOW accounts   650,707       625,492       617,246       637,374       647,370  
    Savings accounts   1,795,761       1,793,852       1,721,247       1,736,989       1,735,857  
    Money market accounts   2,153,709       2,183,855       2,116,360       2,041,185       2,073,557  
    Certificate of deposit accounts   1,877,661       1,878,665       1,885,444       1,819,353       1,718,414  
    Brokered deposit accounts   756,431       764,959       868,953       815,512       923,460  
    Total deposits   8,961,202       8,911,452       8,901,644       8,732,271       8,737,036  
    Borrowed funds:          
    Advances from the FHLB   934,669       957,848       1,355,926       1,345,003       1,265,079  
    Subordinated debentures and notes   84,397       84,362       84,328       84,293       84,258  
    Other borrowed funds   135,985       113,617       79,592       68,251       80,125  
    Total borrowed funds   1,155,051       1,155,827       1,519,846       1,497,547       1,429,462  
    Operating lease liabilities   43,528       45,330       44,785       43,266       37,102  
    Mortgagors’ escrow accounts   15,289       15,264       15,875       14,456       17,117  
    Reserve for unfunded credits   4,586       5,296       5,981       6,859       11,400  
    Accrued expenses and other liabilities   134,918       146,518       195,256       151,960       204,695  
    Total liabilities   10,314,574       10,279,687       10,683,387       10,446,359       10,436,812  
    Stockholders’ equity:          
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively   970       970       970       970       970  
    Additional paid-in capital   904,697       903,696       902,584       901,562       904,775  
    Retained earnings   475,781       465,898       458,943       453,555       445,560  
    Accumulated other comprehensive income   (39,378 )     (42,498 )     (52,882 )     (38,081 )     (61,693 )
    Treasury stock, at cost;          
    7,039,136, 7,037,610, 7,019,384, 7,015,843, and 7,373,009 shares, respectively   (87,899 )     (87,884 )     (87,676 )     (87,644 )     (91,132 )
    Total stockholders’ equity   1,254,171       1,240,182       1,221,939       1,230,362       1,198,480  
    Total liabilities and stockholders’ equity $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
               
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (In Thousands Except Share Data)
    Interest and dividend income:          
    Loans and leases $ 143,933     $ 143,309     $ 147,436     $ 149,643     $ 145,585  
    Debt securities   6,691       6,765       6,421       6,473       6,480  
    Restricted equity securities   1,062       1,203       1,460       1,458       1,376  
    Short-term investments   2,386       2,451       2,830       1,986       1,914  
    Total interest and dividend income   154,072       153,728       158,147       159,560       155,355  
    Interest expense:          
    Deposits   52,682       53,478       56,562       59,796       59,721  
    Borrowed funds   12,705       14,420       16,597       16,756       15,633  
    Total interest expense   65,387       67,898       73,159       76,552       75,354  
    Net interest income   88,685       85,830       84,988       83,008       80,001  
    Provision for credit losses on loans   6,997       5,974       4,141       4,832       5,607  
    Provision (recovery) of credit losses on investments   3       12       (104 )     (172 )     (39 )
    Net interest income after provision for credit losses   81,685       79,844       80,951       78,348       74,433  
    Non-interest income:          
    Deposit fees   2,472       2,361       2,297       2,353       3,001  
    Loan fees   472       393       439       464       702  
    Loan level derivative income (loss)   (4 )     70       1,115       —       106  
    Gain on sales of loans and leases held-for-sale   264       24       406       415       130  
    Other   2,766       2,812       2,330       3,116       2,457  
    Total non-interest income   5,970       5,660       6,587       6,348       6,396  
    Non-interest expense:          
    Compensation and employee benefits   35,147       35,853       37,202       35,130       34,762  
    Occupancy   5,349       5,721       5,393       5,343       5,551  
    Equipment and data processing   6,841       7,012       6,780       6,831       6,732  
    Professional services   1,471       1,726       1,345       2,143       1,745  
    FDIC insurance   1,880       2,037       2,017       2,118       2,025  
    Advertising and marketing   1,371       868       1,303       859       1,504  
    Amortization of identified intangible assets   1,431       1,430       1,701       1,668       1,669  
    Merger and restructuring expense   439       971       3,378       —       823  
    Other   4,132       4,404       4,600       3,856       4,373  
    Total non-interest expense   58,061       60,022       63,719       57,948       59,184  
    Income before provision for income taxes   29,594       25,482       23,819       26,748       21,645  
    Provision for income taxes   7,568       6,382       6,283       6,606       5,273  
    Net income $ 22,026     $ 19,100     $ 17,536     $ 20,142     $ 16,372  
    Earnings per common share:          
    Basic $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Diluted $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Weighted average common shares outstanding during the period:        
    Basic   89,104,605       89,103,510       89,098,443       89,033,463       88,904,692  
    Diluted   89,612,781       89,567,747       89,483,964       89,319,611       89,222,315  
    Dividends paid per common share $ 0.135     $ 0.135     $ 0.135     $ 0.135     $ 0.135  
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
       
      Six Months Ended June 30,
        2025       2024  
      (In Thousands Except Share Data)
    Interest and dividend income:    
    Loans and leases $ 287,242     $ 290,850  
    Debt securities   13,456       13,358  
    Restricted equity securities   2,265       2,868  
    Short-term investments   4,837       3,738  
    Total interest and dividend income   307,800       310,814  
    Interest expense:    
    Deposits   106,160       116,605  
    Borrowed funds   27,125       32,620  
    Total interest expense   133,285       149,225  
    Net interest income   174,515       161,589  
    Provision for credit losses on loans   12,971       13,030  
    Provision (credit) for credit losses on investments   15       (83 )
    Net interest income after provision for credit losses   161,529       148,642  
    Non-interest income:    
    Deposit Fees   4,833       5,898  
    Loan Fees   865       1,491  
    Loan level derivative income, net   66       543  
    Gain on sales of loans and leases held-for-sale   288       130  
    Other   5,578       4,618  
    Total non-interest income   11,630       12,680  
    Non-interest expense:    
    Compensation and employee benefits   71,000       71,391  
    Occupancy   11,070       11,320  
    Equipment and data processing   13,853       13,763  
    Professional services   3,197       3,645  
    FDIC insurance   3,917       3,909  
    Advertising and marketing   2,239       3,078  
    Amortization of identified intangible assets   2,861       3,377  
    Merger and restructuring expense   1,410       823  
    Other   8,536       8,892  
    Total non-interest expense   118,083       120,198  
    Income before provision for income taxes   55,076       41,124  
    Provision for income taxes   13,950       10,087  
    Net income $ 41,126     $ 31,037  
    Earnings per common share:    
    Basic $ 0.46     $ 0.35  
    Diluted $ 0.46     $ 0.35  
    Weighted average common shares outstanding during the period:  
    Basic   89,104,060       88,899,635  
    Diluted   89,590,267       89,201,912  
    Dividends paid per common share $ 0.270     $ 0.270  
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (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)
    NONPERFORMING ASSETS:          
    Loans and leases accounted for on a nonaccrual basis:          
    Commercial real estate mortgage $ 987     $ 10,842     $ 11,525     $ 11,595     $ 11,659  
    Multi-family mortgage   1,433       6,576       6,596       1,751       —  
    Total commercial real estate loans   2,420       17,418       18,121       13,346       11,659  
               
    Commercial   8,687       7,415       14,676       15,734       16,636  
    Equipment financing   46,067       32,975       31,509       37,223       27,128  
    Total commercial loans and leases   54,754       40,390       46,185       52,957       43,764  
               
    Residential mortgage   3,572       3,962       3,999       3,862       4,495  
    Home equity   1,561       1,333       1,043       1,076       790  
    Other consumer   1       1       1       1       1  
    Total consumer loans   5,134       5,296       5,043       4,939       5,286  
               
    Total nonaccrual loans and leases   62,308       63,104       69,349       71,242       60,709  
               
    Other real estate owned   700       700       700       780       780  
    Other repossessed assets   588       217       403       799       1,194  
    Total nonperforming assets $ 63,596     $ 64,021     $ 70,452     $ 72,821     $ 62,683  
               
    Loans and leases past due greater than 90 days and still accruing $ 24,899     $ 3,009     $ 811     $ 16,091     $ 4,994  
               
    Nonperforming loans and leases as a percentage of total loans and leases   0.65 %     0.65 %     0.71 %     0.73 %     0.62 %
    Nonperforming assets as a percentage of total assets   0.55 %     0.56 %     0.59 %     0.62 %     0.54 %
               
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
    Allowance for loan and lease losses at beginning of period $ 124,145     $ 125,083     $ 127,316     $ 121,750     $ 120,124  
    Charge-offs   (5,601 )     (9,073 )     (8,414 )     (4,183 )     (8,823 )
    Recoveries   474       1,476       1,162       375       436  
    Net charge-offs   (5,127 )     (7,597 )     (7,252 )     (3,808 )     (8,387 )
    Provision for loan and lease losses excluding unfunded commitments *   7,707       6,659       5,019       9,374       10,013  
    Allowance for loan and lease losses at end of period $ 126,725     $ 124,145     $ 125,083     $ 127,316     $ 121,750  
               
    Allowance for loan and lease losses as a percentage of total loans and leases   1.32 %     1.29 %     1.28 %     1.31 %     1.25 %
               
    NET CHARGE-OFFS:          
    Commercial real estate loans $ 3,524     $ —     $ —     $ —     $ 3,819  
    Commercial loans and leases   1,640       7,647       7,257       3,797       4,571  
    Consumer loans   (37 )     (50 )     (5 )     11       (3 )
    Total net charge-offs $ 5,127     $ 7,597     $ 7,252     $ 3,808     $ 8,387  
               
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.21 %     0.31 %     0.30 %     0.16 %     0.35 %
               
    *Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.7 million), $(0.9 million), $(4.5 million), and $(4.4 million) for credit losses on unfunded commitments during the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.          
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Three Months Ended
      June 30,
    2025
    		   March 31,
    2025    		   June 30,
    2024
      Average Balance   Interest (1)   Average Yield/ Cost   Average Balance   Interest (1)   Average Yield/ Cost
    		   Average Balance   Interest (1)   Average Yield/ Cost
      (Dollars in Thousands)
    Assets:                                                                      
    Interest-earning assets:                                                                      
    Investments:                                                                      
    Debt securities (2) $ 874,212     $ 6,752       3.09 %   $ 888,913     $ 6,814       3.07 %   $ 846,469     $ 6,510       3.08 %
    Restricted equity securities (2)   65,724       1,062       6.46 %     69,784       1,204       6.90 %     71,696       1,375       7.67 %
    Short-term investments   215,982       2,386       4.42 %     202,953       2,451       4.83 %     143,800       1,914       5.33 %
    Total investments   1,155,918       10,200       3.53 %     1,161,650       10,469       3.60 %     1,061,965       9,799       3.69 %
    Loans and Leases:                            
    Commercial real estate loans (3)   5,533,208       77,136       5.51 %     5,651,390       77,243       5.47 %     5,754,901       81,565       5.61 %
    Commercial loans (3)   1,286,908       20,757       6.38 %     1,237,078       19,698       6.37 %     1,069,154       17,672       6.54 %
    Equipment financing (3)   1,240,128       25,069       8.09 %     1,281,425       25,965       8.11 %     1,374,217       26,255       7.64 %
    Consumer loans (3)   1,556,254       21,437       5.51 %     1,548,973       20,861       5.41 %     1,488,587       20,291       5.46 %
    Total loans and leases   9,616,498       144,399       6.01 %     9,718,866       143,767       5.92 %     9,686,859       145,783       6.02 %
    Total interest-earning assets   10,772,416       154,599       5.74 %     10,880,516       154,236       5.67 %     10,748,824       155,582       5.79 %
    Non-interest-earning assets   630,518               662,814             704,570          
    Total assets $ 11,402,934             $ 11,543,330           $ 11,453,394          
                                 
    Liabilities and Stockholders’ Equity:                            
    Interest-bearing liabilities:                            
    Deposits:                            
    NOW accounts $ 637,786       1,034       0.65 %   $ 628,346       1,005       0.65 %   $ 659,351       1,111       0.68 %
    Savings accounts   1,780,838       10,692       2.41 %     1,743,688       10,173       2.37 %     1,731,388       11,874       2.76 %
    Money market accounts   2,189,373       13,990       2.56 %     2,187,581       13,587       2.52 %     2,026,780       15,520       3.08 %
    Certificates of deposit   1,879,749       18,437       3.93 %     1,886,386       19,593       4.21 %     1,699,510       18,717       4.43 %
    Brokered deposit accounts   748,205       8,529       4.57 %     767,275       9,120       4.82 %     958,146       12,499       5.25 %
    Total interest-bearing deposits   7,235,951       52,682       2.92 %     7,213,276       53,478       3.01 %     7,075,175       59,721       3.39 %
    Borrowings                            
    Advances from the FHLB   904,399       10,422       4.56 %     1,007,508       11,847       4.70 %     1,049,609       12,894       4.86 %
    Subordinated debentures and notes   84,380       1,718       8.14 %     84,345       1,701       8.07 %     84,241       1,375       6.53 %
    Other borrowed funds   46,086       565       4.93 %     71,462       872       4.95 %     103,753       1,364       5.29 %
    Total borrowings   1,034,865       12,705       4.86 %     1,163,315       14,420       4.96 %     1,237,603       15,633       5.00 %
    Total interest-bearing liabilities   8,270,816       65,387       3.17 %     8,376,591       67,898       3.29 %     8,312,778       75,354       3.65 %
    Non-interest-bearing liabilities:                            
    Demand checking accounts   1,654,594               1,680,527             1,646,869          
    Other non-interest-bearing liabilities   225,469               251,011             300,362          
    Total liabilities   10,150,879               10,308,129             10,260,009          
    Stockholders’ equity   1,252,055               1,235,201             1,193,385          
    Total liabilities and equity $ 11,402,934             $ 11,543,330           $ 11,453,394          
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)       89,212       2.57 %       86,338       2.38 %       80,228       2.14 %
    Less adjustment of tax-exempt income       527             508           227      
    Net interest income     $ 88,685           $ 85,830         $ 80,001      
    Net interest margin (5)           3.32 %           3.22 %           3.00 %
                                 
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest (1)   Average Yield/
    Cost
    		   Average
    Balance    		   Interest (1)   Average Yield/
    Cost          
      (Dollars in Thousands)
    Assets:                                              
    Interest-earning assets:                                              
    Investments:                                              
    Debt securities (2) $ 881,522     $ 13,566       3.08 %   $ 869,848     $ 13,437       3.09 %
    Restricted equity securities (2)   67,743       2,266       6.69 %     74,015       2,868       7.75 %
    Short-term investments   209,503       4,837       4.62 %     137,284       3,738       5.45 %
    Total investments   1,158,768       20,669       3.57 %     1,081,147       20,043       3.71 %
    Loans and Leases:                  
    Commercial real estate loans (3)   5,591,973       154,379       5.49 %     5,758,318       162,614       5.59 %
    Commercial loans (3)   1,262,130       40,455       6.38 %     1,047,810       35,179       6.64 %
    Equipment financing (3)   1,260,663       51,034       8.10 %     1,374,322       53,150       7.73 %
    Consumer loans (3)   1,552,633       42,298       5.46 %     1,485,702       40,269       5.43 %
    Total loans and leases   9,667,399       288,166       5.96 %     9,666,152       291,212       6.03 %
    Total interest-earning assets   10,826,167       308,835       5.71 %     10,747,299       311,255       5.79 %
    Non-interest-earning assets   646,577             684,343        
    Total assets $ 11,472,744           $ 11,431,642        
                       
    Liabilities and Stockholders’ Equity:                  
    Interest-bearing liabilities:                  
    Deposits:                  
    NOW accounts $ 633,092       2,039       0.65 %   $ 665,632       2,372       0.72 %
    Savings accounts   1,762,366       20,865       2.39 %     1,712,804       23,226       2.73 %
    Money market accounts   2,188,482       27,577       2.54 %     2,051,542       31,474       3.09 %
    Certificates of deposit   1,883,049       38,030       4.07 %     1,661,814       35,389       4.28 %
    Brokered deposit accounts   757,687       17,649       4.70 %     927,465       24,144       5.23 %
    Total interest-bearing deposits   7,224,676       106,160       2.96 %     7,019,257       116,605       3.34 %
    Borrowings                  
    Advances from the FHLB   955,669       22,269       4.63 %     1,107,071       27,527       4.92 %
    Subordinated debentures and notes   84,363       3,419       8.11 %     84,223       2,752       6.54 %
    Other borrowed funds   58,704       1,437       4.94 %     98,406       2,341       4.78 %
    Total borrowings   1,098,736       27,125       4.91 %     1,289,700       32,620       5.00 %
    Total interest-bearing liabilities   8,323,412       133,285       3.23 %     8,308,957       149,225       3.61 %
    Non-interest-bearing liabilities:                  
        Demand checking accounts   1,667,489             1,635,690        
        Other non-interest-bearing liabilities   238,169             289,351        
    Total liabilities   10,229,070             10,233,998        
    Stockholders’ equity   1,243,674             1,197,644        
    Total liabilities and equity $ 11,472,744           $ 11,431,642        
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)       175,550       2.48 %         162,030       2.18 %
    Less adjustment of tax-exempt income       1,035             441    
    Net interest income     $ 174,515           $ 161,589    
    Net interest margin (5)           3.27 %             3.03 %
                       
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
      At and for the Three Months Ended
    March 31,    		   At and for the Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Reconciliation Table – Non-GAAP Financial Information (Dollars in Thousands Except Share Data)   (Dollars in Thousands Except Share Data)
                   
    Reported Pretax Income $ 29,594     $ 21,645     $ 55,076     $ 41,124  
    Add:              
    Merger and restructuring expense   439       823       1,410       823  
    Operating Pretax Income $ 30,033     $ 22,468     $ 56,486     $ 41,947  
    Effective tax rate   25.3 %     24.4 %     24.8 %     24.5 %
    Provision for income taxes   7,590       5,473       14,008       10,289  
    Operating earnings after tax $ 22,443     $ 16,995     $ 42,478     $ 31,658  
                   
    Operating earnings per common share:              
    Basic $ 0.25     $ 0.19     $ 0.48     $ 0.36  
    Diluted $ 0.25     $ 0.19     $ 0.47     $ 0.35  
                   
    Weighted average common shares outstanding during the period:              
    Basic   89,104,605       88,904,692       89,104,060       88,899,635  
    Diluted   89,612,781       89,222,315       89,590,267       89,201,912  
                   
    Return on average assets *   0.77 %     0.57 %     0.72 %     0.54 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.01 %     0.02 %     0.02 %     0.01 %
    Operating return on average assets *   0.78 %     0.59 %     0.74 %     0.55 %
                   
    Return on average tangible assets *   0.79 %     0.59 %     0.73 %     0.56 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.01 %     0.02 %     0.02 %     0.01 %
    Operating return on average tangible assets *   0.80 %     0.61 %     0.75 %     0.57 %
                   
                   
    Return on average stockholders’ equity *   7.04 %     5.49 %     6.61 %     5.18 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.10 %     0.21 %     0.17 %     0.10 %
    Operating return on average stockholders’ equity *   7.14 %     5.70 %     6.78 %     5.28 %
                   
                   
    Return on average tangible stockholders’ equity *   8.85 %     7.04 %     8.34 %     6.65 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.13 %     0.27 %     0.21 %     0.13 %
    Operating return on average tangible stockholders’ equity *   8.98 %     7.31 %     8.55 %     6.78 %
                   
    * Ratios at and for the three months and six months ended are annualized.              
      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)
                     
    Net income, as reported $ 22,026   $ 19,100     $ 17,536     $ 20,142     $ 16,372  
                     
    Average total assets $ 11,402,934   $ 11,543,330     $ 11,580,572     $ 11,451,338     $ 11,453,394  
    Less: Average goodwill and average identified intangible assets, net   256,508     257,941       259,496       261,188       262,859  
    Average tangible assets $ 11,146,426   $ 11,285,389     $ 11,321,076     $ 11,190,150     $ 11,190,535  
                     
    Return on average tangible assets (annualized)   0.79 %   0.68 %     0.62 %     0.72 %     0.59 %
                     
    Average total stockholders’ equity $ 1,252,055   $ 1,235,201     $ 1,232,527     $ 1,216,037     $ 1,193,385  
    Less: Average goodwill and average identified intangible assets, net   256,508     257,941       259,496       261,188       262,859  
    Average tangible stockholders’ equity $ 995,547   $ 977,260     $ 973,031     $ 954,849     $ 930,526  
                     
    Return on average tangible stockholders’ equity (annualized)   8.85 %   7.82 %     7.21 %     8.44 %     7.04 %
                     
    Total stockholders’ equity $ 1,254,171   $ 1,240,182     $ 1,221,939     $ 1,230,362     $ 1,198,480  
    Less:                
    Goodwill   241,222     241,222       241,222       241,222       241,222  
    Identified intangible assets, net   14,600     16,030       17,461       19,162       20,830  
    Tangible stockholders’ equity $ 998,349   $ 982,930     $ 963,256     $ 969,978     $ 936,428  
                     
    Total assets $ 11,568,745   $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    Less:                
    Goodwill   241,222     241,222       241,222       241,222       241,222  
    Identified intangible assets, net   14,600     16,030       17,461       19,162       20,830  
    Tangible assets $ 11,312,923   $ 11,262,617     $ 11,646,643     $ 11,416,337     $ 11,373,240  
                     
    Tangible stockholders’ equity to tangible assets   8.82 %   8.73 %     8.27 %     8.50 %     8.23 %
                     
    Tangible stockholders’ equity $ 998,349   $ 982,930     $ 963,256     $ 969,978     $ 936,428  
                     
    Number of common shares issued   96,998,075     96,998,075       96,998,075       96,998,075       96,998,075  
    Less:                
    Treasury shares   7,039,136     7,037,610       7,019,384       7,015,843       7,373,009  
    Unvested restricted shares   854,334     855,860       880,248       883,789       713,443  
    Number of common shares outstanding   89,104,605     89,104,605       89,098,443       89,098,443       88,911,623  
                     
    Tangible book value per common share $ 11.20   $ 11.03     $ 10.81     $ 10.89     $ 10.53  

    PDF available: http://ml.globenewswire.com/Resource/Download/713b7b8a-a804-4b26-a467-f10b0d266b1b 

    The MIL Network –

  • MIL-OSI: Brookline Bancorp Announces Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    Net Income of $22.0 million, EPS of $0.25

    Quarterly Dividend of $0.135

    BOSTON, July 23, 2025 (GLOBE NEWSWIRE) — Brookline Bancorp, Inc. (NASDAQ: BRKL) (the “Company”) today announced net income of $22.0 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to net income of $19.1 million, or $0.21 per basic and diluted share, for the first quarter of 2025, and $16.4 million, or $0.18 per basic and diluted share, for the second quarter of 2024. The Company reported operating earnings after tax (non-GAAP) of $22.4 million, or $0.25 per basic and diluted share, for the second quarter of 2025, compared to operating earnings after tax (non-GAAP) of $20.0 million, or $0.22 per basic and diluted share, for the first quarter of 2025, and $17.0 million, or $0.19 per basic and diluted share, for the second quarter of 2024.

    Commenting on the second quarter’s performance, Mr. Perrault stated, “We are pleased to report solid earnings for the second quarter of the year led by growth in our C&I portfolio and deposits. Our dedicated team of bankers continue to provide exceptional service to the communities we serve. As a result of these efforts, our net interest margin expanded again this quarter despite intentional contraction in our commercial real estate portfolio.”

    BALANCE SHEET

    Total assets at June 30, 2025 were $11.6 billion, representing an increase of $48.9 million from $11.5 billion at March 31, 2025, primarily driven by an increase in cash and cash equivalents partially offset by a reduction of loans and leases. Total assets decreased $66.5 million from June 30, 2024.

    At June 30, 2025, total loans and leases were $9.6 billion, representing a decrease of $60.3 million from March 31, 2025, and a decrease of $138.8 million from June 30, 2024.

    Total investment securities at June 30, 2025 decreased $15.7 million to $866.7 million from $882.4 million at March 31, 2025, and increased $10.3 million from $856.4 million at June 30, 2024. Total cash and cash equivalents at June 30, 2025 increased $149.2 million to $506.7 million from $357.5 million at March 31, 2025, and increased $163.6 million from $343.1 million at June 30, 2024. As of June 30, 2025, total investment securities and total cash and cash equivalents represented 11.9 percent of total assets, compared to 10.8 percent and 10.3 percent as of March 31, 2025 and June 30, 2024, respectively.

    Total deposits at June 30, 2025 increased $49.8 million to $9.0 billion from March 31, 2025, primarily driven by an increase of $58.3 million in customer deposits partially offset by a decline of $8.5 million in brokered deposits. Total deposits increased $224.2 million from $8.7 billion at June 30, 2024, primarily driven by an increase of $391.2 million in customer deposits partially offset by a decline of $167.0 million in brokered deposits.

    Total borrowed funds at June 30, 2025 remained flat at $1.2 billion compared to March 31, 2025, and decreased $274.4 million from $1.4 billion at June 30, 2024.

    The ratio of stockholders’ equity to total assets was 10.84 percent at June 30, 2025, as compared to 10.77 percent at March 31, 2025, and 10.30 percent at June 30, 2024. The ratio of tangible stockholders’ equity to tangible assets (non-GAAP) was 8.82 percent at June 30, 2025, as compared to 8.73 percent at March 31, 2025, and 8.23 percent at June 30, 2024. Tangible book value per common share (non-GAAP) increased $0.17 from $11.03 at March 31, 2025 to $11.20 at June 30, 2025, and increased $0.67 from $10.53 at June 30, 2024.

    NET INTEREST INCOME

    Net interest income increased $2.9 million to $88.7 million during the second quarter of 2025 from $85.8 million for the quarter ended March 31, 2025. The net interest margin increased 10 basis points to 3.32 percent for the three months ended June 30, 2025 from 3.22 percent for the three months ended March 31, 2025, primarily driven by lower funding costs and higher yields on loans and leases.

    NON-INTEREST INCOME

    Total non-interest income for the quarter ended June 30, 2025 increased $0.3 million to $6.0 million from $5.7 million for the quarter ended March 31, 2025. The increase was primarily driven by an increase of $0.2 million in gain on sales of loans and leases.

    PROVISION FOR CREDIT LOSSES

    The Company recorded a provision for credit losses of $7.0 million for the quarter ended June 30, 2025, compared to $6.0 million for the quarter ended March 31, 2025. The increase in provision was driven by a combination of continued stress in the Boston office sector as well as additional specific reserves on two large Eastern Funding credits.

    Total net charge-offs for the second quarter of 2025 were $5.1 million, compared to $7.6 million in the first quarter of 2025. The $5.1 million in net charge-offs was driven by two commercial real estate loans that were sold during the quarter resulting in a combined $3.5 million in net charge-offs. The ratio of net loan and lease charge-offs to average loans and leases on an annualized basis decreased to 21 basis points for the second quarter of 2025 from 31 basis points for the first quarter of 2025.

    The allowance for loan and lease losses represented 1.32 percent of total loans and leases at June 30, 2025, compared to 1.29 percent at March 31, 2025, and 1.25 percent at June 30, 2024.

    ASSET QUALITY

    The ratio of nonperforming loans and leases to total loans and leases was 0.65 percent at June 30, 2025, flat compared to March 31, 2025. Total nonaccrual loans and leases decreased $0.8 million to $62.3 million at June 30, 2025 from $63.1 million at March 31, 2025, driven by the sale of two commercial real estate loans. The ratio of nonperforming assets to total assets was 0.55 percent at June 30, 2025, a decrease from 0.56 percent at March 31, 2025. Total nonperforming assets decreased $0.4 million to $63.6 million at June 30, 2025 from $64.0 million at March 31, 2025.

    NON-INTEREST EXPENSE

    Non-interest expense for the quarter ended June 30, 2025 decreased $1.9 million to $58.1 million from $60.0 million for the quarter ended March 31, 2025. The decrease was primarily driven by decreases of $0.7 million in compensation and employee benefits expense, $0.5 million in merger and acquisition expense related to the previously announced proposed merger of the Company with Berkshire Hills Bancorp, Inc. (“Berkshire”), and $0.4 million in occupancy expense, partially offset by an increase of $0.5 million in advertising and marketing expense.

    PROVISION FOR INCOME TAXES

    The effective tax rate was 25.6 percent and 25.3 percent for the three and six months ended June 30, 2025 compared to 25.0 percent for the three months ended March 31, 2025 and 24.4 percent and 24.5 percent for the three and six months ended June 30, 2024.

    RETURNS ON AVERAGE ASSETS AND AVERAGE EQUITY

    The annualized return on average assets increased to 0.77 percent during the second quarter 2025 from 0.66 percent for the first quarter of 2025.

    The annualized return on average stockholders’ equity increased to 7.04 percent during the second quarter of 2025 from 6.19 percent for the first quarter of 2025. The annualized return on average tangible stockholders’ equity (non-GAAP) increased to 8.85 percent for the second quarter of 2025 from 7.82 percent for the first quarter of 2025.

    DIVIDEND DECLARED

    The Company’s Board of Directors approved a dividend of $0.135 per share for the quarter ended June 30, 2025. The dividend will be paid on August 22, 2025 to stockholders of record on August 8, 2025.

    CONFERENCE CALL

    The Company will conduct a conference call/webcast at 1:30 PM Eastern Time on Thursday, July 24, 2025 to discuss the results for the quarter, business highlights and outlook. A copy of the Earnings Presentation is available on the Company’s website, www.brooklinebancorp.com. To listen to the call and view the Company’s Earnings Presentation, please join the call via https://events.q4inc.com/attendee/149362707. To listen to the call without access to the slides, interested parties may dial 833-470-1428 (United States) or 404-975-4839 (internationally) and ask for the Brookline Bancorp, Inc. conference call (Access Code 673409). A recorded playback of the call will be available for one week following the call on the Company’s website under “Investor Relations” or by dialing 866-813-9403 (United States) or 929-458-6194 (internationally) and entering the passcode: 916742.

    ABOUT BROOKLINE BANCORP, INC.

    Brookline Bancorp, Inc., a bank holding company with $11.6 billion in assets and branch locations in Massachusetts, Rhode Island, and the Lower Hudson Valley of New York State, is headquartered in Boston, Massachusetts and operates as the holding company for Brookline Bank, Bank Rhode Island, and PCSB Bank (the “banks”). The Company provides commercial and retail banking services, cash management and investment services to customers throughout Central New England and the Lower Hudson Valley of New York State. More information about Brookline Bancorp, Inc. and its banks can be found at the following websites: www.brooklinebank.com, www.bankri.com and www.pcsb.com.

    FORWARD-LOOKING STATEMENTS

    Certain statements contained in this press release that are not historical facts may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We may also make forward-looking statements in other documents we file with the Securities and Exchange Commission (“SEC”), in our annual reports to shareholders, in press releases and other written materials, and in oral statements made by our officers, directors or employees. You can identify forward looking statements by the use of the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “assume,” “outlook,” “will,” “should,” and other expressions that predict or indicate future events and trends and which do not relate to historical matters, including statements regarding the Company’s business, credit quality, financial condition, liquidity and results of operations. Forward-looking statements may differ, possibly materially, from what is included in this press release due to factors and future developments that are uncertain and beyond the scope of the Company’s control. These include, but are not limited to, the occurrence of any event, change or other circumstances that could give rise to the right of the Company or Berkshire to terminate the merger agreement; the outcome of any legal proceedings that may be instituted against Berkshire or Company; delays in completing the proposed transaction with Berkshire; the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction), or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all, including the ability of Berkshire and the Company to meet expectations regarding the timing, completion and accounting and tax treatments of the proposed transaction; the impact of certain restrictions during the pendency of the proposed transaction on the parties’ ability to pursue certain business opportunities and strategic transactions; diversion of management’s attention from ongoing business operations and opportunities; potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; changes in interest rates; general economic conditions (including the impact of actual or threatened tariffs imposed by the U.S. and foreign governments, inflation, and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ongoing turbulence in the capital and debt markets; competitive pressures from other financial institutions; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in the value of securities and other assets in the Company’s investment portfolio; increases in loan and lease default and charge-off rates; the adequacy of allowances for loan and lease losses; decreases in deposit levels that necessitate increases in borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters, and future pandemics; changes in regulation; the possibility that future credit losses may be higher than currently expected due to changes in economic assumptions and adverse economic developments; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; and changes in assumptions used in making such forward-looking statements. Forward-looking statements involve risks and uncertainties which are difficult to predict. The Company’s actual results could differ materially from those projected in the forward-looking statements as a result of, among others, the risks outlined in the Company’s Annual Report on Form 10-K, as updated by its Quarterly Reports on Form 10-Q and other filings submitted to the SEC. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made.

    BASIS OF PRESENTATION

    The Company’s consolidated financial statements have been prepared in conformity with generally accepted accounting principles (“GAAP”) as set forth by the Financial Accounting Standards Board in its Accounting Standards Codification and through the rules and interpretive releases of the SEC under the authority of federal securities laws. Certain amounts previously reported have been reclassified to conform to the current period’s presentation.

    NON-GAAP FINANCIAL MEASURES

    The Company uses certain non-GAAP financial measures, such as operating earnings after tax, operating earnings per common share, operating return on average assets, operating return on average tangible assets, operating return on average stockholders’ equity, operating return on average tangible stockholders’ equity, tangible book value per common share, tangible stockholders’ equity to tangible assets, return on average tangible assets (annualized) and return on average tangible stockholders’ equity (annualized). These non-GAAP financial measures provide information for investors to effectively analyze financial trends of ongoing business activities, and to enhance comparability with peers across the financial services sector. A detailed reconciliation table of the Company’s GAAP to the non-GAAP measures is attached.

    INVESTOR RELATIONS:

    Contact: Carl M. Carlson
      Brookline Bancorp, Inc.
      Co-President and Chief Financial and Strategy Officer
      (617) 425-5331
      carl.carlson@brkl.com
    BROOKLINE BANCORP, INC AND SUBSIDIARIES
    Selected Financial Highlights (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 Data)
    Earnings Data:                            
    Net interest income $ 88,685     $ 85,830     $ 84,988     $ 83,008     $ 80,001  
    Provision for credit losses on loans 6,997     5,974     4,141     4,832     5,607  
    Provision (recovery) of credit losses on investments 3     12     (104)     (172)     (39)  
    Non-interest income 5,970     5,660     6,587     6,348     6,396  
    Non-interest expense 58,061     60,022     63,719     57,948     59,184  
    Income before provision for income taxes 29,594     25,482     23,819     26,748     21,645  
    Net income 22,026     19,100     17,536     20,142     16,372  
                                 
    Performance Ratios:                            
    Net interest margin (1) 3.32 %   3.22 %   3.12 %   3.07 %   3.00 %
    Interest-rate spread (1) 2.57 %   2.38 %   2.35 %   2.26 %   2.14 %
    Return on average assets (annualized) 0.77 %   0.66 %   0.61 %   0.70 %   0.57 %
    Return on average tangible assets (annualized) (non-GAAP) 0.79 %   0.68 %   0.62 %   0.72 %   0.59 %
    Return on average stockholders’ equity (annualized) 7.04 %   6.19 %   5.69 %   6.63 %   5.49 %
    Return on average tangible stockholders’ equity (annualized) (non-GAAP) 8.85 %   7.82 %   7.21 %   8.44 %   7.04 %
    Efficiency ratio (2) 61.34 %   65.60 %   69.58 %   64.85 %   68.50 %
                                 
    Per Common Share Data:                            
    Net income — Basic $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Net income — Diluted 0.25     0.21     0.20     0.23     0.18  
    Cash dividends declared 0.135     0.135     0.135     0.135     0.135  
    Book value per share (end of period) 14.08     13.92     13.71     13.81     13.48  
    Tangible book value per share (end of period) (non-GAAP) 11.20     11.03     10.81     10.89     10.53  
    Stock price (end of period) 10.55     10.90     11.80     10.09     8.35  
                                 
    Balance Sheet:                            
    Total assets $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    Total loans and leases 9,582,374     9,642,722     9,779,288     9,755,236     9,721,137  
    Total deposits 8,961,202     8,911,452     8,901,644     8,732,271     8,737,036  
    Total stockholders’ equity 1,254,171     1,240,182     1,221,939     1,230,362     1,198,480  
                                 
    Asset Quality:                            
    Nonperforming assets $ 63,596     $ 64,021     $ 70,452     $ 72,821     $ 62,683  
    Nonperforming assets as a percentage of total assets 0.55 %   0.56 %   0.59 %   0.62 %   0.54 %
    Allowance for loan and lease losses $ 126,725     $ 124,145     $ 125,083     $ 127,316     $ 121,750  
    Allowance for loan and lease losses as a percentage of total loans and leases 1.32 %   1.29 %   1.28 %   1.31 %   1.25 %
    Net loan and lease charge-offs $ 5,127     $ 7,597     $ 7,252     $ 3,808     $ 8,387  
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized) 0.21 %   0.31 %   0.30 %   0.16 %   0.35 %
                                 
    Capital Ratios:                            
    Stockholders’ equity to total assets 10.84 %   10.77 %   10.26 %   10.54 %   10.30 %
    Tangible stockholders’ equity to tangible assets (non-GAAP) 8.82 %   8.73 %   8.27 %   8.50 %   8.23 %
                                 
    (1) Calculated on a fully tax-equivalent basis.                            
    (2) Calculated as non-interest expense as a percentage of net interest income plus non-interest income.                            
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Balance Sheets (Unaudited)
               
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		  
    ASSETS (In Thousands Except Share Data)
    Cash and due from banks $ 87,386     $ 78,741     $ 64,673     $ 82,168     $ 60,067  
    Short-term investments   419,362       278,805       478,997       325,721       283,017  
    Total cash and cash equivalents   506,748       357,546       543,670       407,889       343,084  
    Investment securities available-for-sale   866,684       882,353       895,034       855,391       856,439  
    Total investment securities   866,684       882,353       895,034       855,391       856,439  
    Allowance for investment security losses   (97 )     (94 )     (82 )     (186 )     (359 )
    Net investment securities   866,587       882,259       894,952       855,205       856,080  
    Loans and leases:          
    Commercial real estate loans   5,485,546       5,580,982       5,716,114       5,779,290       5,782,111  
    Commercial loans and leases   2,520,347       2,512,912       2,506,664       2,453,038       2,443,530  
    Consumer loans   1,576,481       1,548,828       1,556,510       1,522,908       1,495,496  
    Total loans and leases   9,582,374       9,642,722       9,779,288       9,755,236       9,721,137  
    Allowance for loan and lease losses   (126,725 )     (124,145 )     (125,083 )     (127,316 )     (121,750 )
    Net loans and leases   9,455,649       9,518,577       9,654,205       9,627,920       9,599,387  
    Restricted equity securities   66,481       67,537       83,155       82,675       78,963  
    Premises and equipment, net of accumulated depreciation   83,963       84,439       86,781       86,925       88,378  
    Right-of-use asset operating leases   42,415       44,144       43,527       41,934       35,691  
    Deferred tax asset   52,325       52,176       56,620       50,827       60,032  
    Goodwill   241,222       241,222       241,222       241,222       241,222  
    Identified intangible assets, net of accumulated amortization   14,600       16,030       17,461       19,162       20,830  
    Other real estate owned and repossessed assets   1,288       917       1,103       1,579       1,974  
    Other assets   237,467       255,022       282,630       261,383       309,651  
    Total assets $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    LIABILITIES AND STOCKHOLDERS’ EQUITY          
    Deposits:          
    Demand checking accounts $ 1,726,933     $ 1,664,629     $ 1,692,394     $ 1,681,858     $ 1,638,378  
    NOW accounts   650,707       625,492       617,246       637,374       647,370  
    Savings accounts   1,795,761       1,793,852       1,721,247       1,736,989       1,735,857  
    Money market accounts   2,153,709       2,183,855       2,116,360       2,041,185       2,073,557  
    Certificate of deposit accounts   1,877,661       1,878,665       1,885,444       1,819,353       1,718,414  
    Brokered deposit accounts   756,431       764,959       868,953       815,512       923,460  
    Total deposits   8,961,202       8,911,452       8,901,644       8,732,271       8,737,036  
    Borrowed funds:          
    Advances from the FHLB   934,669       957,848       1,355,926       1,345,003       1,265,079  
    Subordinated debentures and notes   84,397       84,362       84,328       84,293       84,258  
    Other borrowed funds   135,985       113,617       79,592       68,251       80,125  
    Total borrowed funds   1,155,051       1,155,827       1,519,846       1,497,547       1,429,462  
    Operating lease liabilities   43,528       45,330       44,785       43,266       37,102  
    Mortgagors’ escrow accounts   15,289       15,264       15,875       14,456       17,117  
    Reserve for unfunded credits   4,586       5,296       5,981       6,859       11,400  
    Accrued expenses and other liabilities   134,918       146,518       195,256       151,960       204,695  
    Total liabilities   10,314,574       10,279,687       10,683,387       10,446,359       10,436,812  
    Stockholders’ equity:          
    Common stock, $0.01 par value; 200,000,000 shares authorized; 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, 96,998,075 shares issued, and 96,998,075 shares issued, respectively   970       970       970       970       970  
    Additional paid-in capital   904,697       903,696       902,584       901,562       904,775  
    Retained earnings   475,781       465,898       458,943       453,555       445,560  
    Accumulated other comprehensive income   (39,378 )     (42,498 )     (52,882 )     (38,081 )     (61,693 )
    Treasury stock, at cost;          
    7,039,136, 7,037,610, 7,019,384, 7,015,843, and 7,373,009 shares, respectively   (87,899 )     (87,884 )     (87,676 )     (87,644 )     (91,132 )
    Total stockholders’ equity   1,254,171       1,240,182       1,221,939       1,230,362       1,198,480  
    Total liabilities and stockholders’ equity $ 11,568,745     $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
               
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
      Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (In Thousands Except Share Data)
    Interest and dividend income:          
    Loans and leases $ 143,933     $ 143,309     $ 147,436     $ 149,643     $ 145,585  
    Debt securities   6,691       6,765       6,421       6,473       6,480  
    Restricted equity securities   1,062       1,203       1,460       1,458       1,376  
    Short-term investments   2,386       2,451       2,830       1,986       1,914  
    Total interest and dividend income   154,072       153,728       158,147       159,560       155,355  
    Interest expense:          
    Deposits   52,682       53,478       56,562       59,796       59,721  
    Borrowed funds   12,705       14,420       16,597       16,756       15,633  
    Total interest expense   65,387       67,898       73,159       76,552       75,354  
    Net interest income   88,685       85,830       84,988       83,008       80,001  
    Provision for credit losses on loans   6,997       5,974       4,141       4,832       5,607  
    Provision (recovery) of credit losses on investments   3       12       (104 )     (172 )     (39 )
    Net interest income after provision for credit losses   81,685       79,844       80,951       78,348       74,433  
    Non-interest income:          
    Deposit fees   2,472       2,361       2,297       2,353       3,001  
    Loan fees   472       393       439       464       702  
    Loan level derivative income (loss)   (4 )     70       1,115       —       106  
    Gain on sales of loans and leases held-for-sale   264       24       406       415       130  
    Other   2,766       2,812       2,330       3,116       2,457  
    Total non-interest income   5,970       5,660       6,587       6,348       6,396  
    Non-interest expense:          
    Compensation and employee benefits   35,147       35,853       37,202       35,130       34,762  
    Occupancy   5,349       5,721       5,393       5,343       5,551  
    Equipment and data processing   6,841       7,012       6,780       6,831       6,732  
    Professional services   1,471       1,726       1,345       2,143       1,745  
    FDIC insurance   1,880       2,037       2,017       2,118       2,025  
    Advertising and marketing   1,371       868       1,303       859       1,504  
    Amortization of identified intangible assets   1,431       1,430       1,701       1,668       1,669  
    Merger and restructuring expense   439       971       3,378       —       823  
    Other   4,132       4,404       4,600       3,856       4,373  
    Total non-interest expense   58,061       60,022       63,719       57,948       59,184  
    Income before provision for income taxes   29,594       25,482       23,819       26,748       21,645  
    Provision for income taxes   7,568       6,382       6,283       6,606       5,273  
    Net income $ 22,026     $ 19,100     $ 17,536     $ 20,142     $ 16,372  
    Earnings per common share:          
    Basic $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Diluted $ 0.25     $ 0.21     $ 0.20     $ 0.23     $ 0.18  
    Weighted average common shares outstanding during the period:        
    Basic   89,104,605       89,103,510       89,098,443       89,033,463       88,904,692  
    Diluted   89,612,781       89,567,747       89,483,964       89,319,611       89,222,315  
    Dividends paid per common share $ 0.135     $ 0.135     $ 0.135     $ 0.135     $ 0.135  
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Consolidated Statements of Income (Unaudited)
       
      Six Months Ended June 30,
        2025       2024  
      (In Thousands Except Share Data)
    Interest and dividend income:    
    Loans and leases $ 287,242     $ 290,850  
    Debt securities   13,456       13,358  
    Restricted equity securities   2,265       2,868  
    Short-term investments   4,837       3,738  
    Total interest and dividend income   307,800       310,814  
    Interest expense:    
    Deposits   106,160       116,605  
    Borrowed funds   27,125       32,620  
    Total interest expense   133,285       149,225  
    Net interest income   174,515       161,589  
    Provision for credit losses on loans   12,971       13,030  
    Provision (credit) for credit losses on investments   15       (83 )
    Net interest income after provision for credit losses   161,529       148,642  
    Non-interest income:    
    Deposit Fees   4,833       5,898  
    Loan Fees   865       1,491  
    Loan level derivative income, net   66       543  
    Gain on sales of loans and leases held-for-sale   288       130  
    Other   5,578       4,618  
    Total non-interest income   11,630       12,680  
    Non-interest expense:    
    Compensation and employee benefits   71,000       71,391  
    Occupancy   11,070       11,320  
    Equipment and data processing   13,853       13,763  
    Professional services   3,197       3,645  
    FDIC insurance   3,917       3,909  
    Advertising and marketing   2,239       3,078  
    Amortization of identified intangible assets   2,861       3,377  
    Merger and restructuring expense   1,410       823  
    Other   8,536       8,892  
    Total non-interest expense   118,083       120,198  
    Income before provision for income taxes   55,076       41,124  
    Provision for income taxes   13,950       10,087  
    Net income $ 41,126     $ 31,037  
    Earnings per common share:    
    Basic $ 0.46     $ 0.35  
    Diluted $ 0.46     $ 0.35  
    Weighted average common shares outstanding during the period:  
    Basic   89,104,060       88,899,635  
    Diluted   89,590,267       89,201,912  
    Dividends paid per common share $ 0.270     $ 0.270  
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Asset Quality Analysis (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)
    NONPERFORMING ASSETS:          
    Loans and leases accounted for on a nonaccrual basis:          
    Commercial real estate mortgage $ 987     $ 10,842     $ 11,525     $ 11,595     $ 11,659  
    Multi-family mortgage   1,433       6,576       6,596       1,751       —  
    Total commercial real estate loans   2,420       17,418       18,121       13,346       11,659  
               
    Commercial   8,687       7,415       14,676       15,734       16,636  
    Equipment financing   46,067       32,975       31,509       37,223       27,128  
    Total commercial loans and leases   54,754       40,390       46,185       52,957       43,764  
               
    Residential mortgage   3,572       3,962       3,999       3,862       4,495  
    Home equity   1,561       1,333       1,043       1,076       790  
    Other consumer   1       1       1       1       1  
    Total consumer loans   5,134       5,296       5,043       4,939       5,286  
               
    Total nonaccrual loans and leases   62,308       63,104       69,349       71,242       60,709  
               
    Other real estate owned   700       700       700       780       780  
    Other repossessed assets   588       217       403       799       1,194  
    Total nonperforming assets $ 63,596     $ 64,021     $ 70,452     $ 72,821     $ 62,683  
               
    Loans and leases past due greater than 90 days and still accruing $ 24,899     $ 3,009     $ 811     $ 16,091     $ 4,994  
               
    Nonperforming loans and leases as a percentage of total loans and leases   0.65 %     0.65 %     0.71 %     0.73 %     0.62 %
    Nonperforming assets as a percentage of total assets   0.55 %     0.56 %     0.59 %     0.62 %     0.54 %
               
    PROVISION AND ALLOWANCE FOR LOAN AND LEASE LOSSES:      
    Allowance for loan and lease losses at beginning of period $ 124,145     $ 125,083     $ 127,316     $ 121,750     $ 120,124  
    Charge-offs   (5,601 )     (9,073 )     (8,414 )     (4,183 )     (8,823 )
    Recoveries   474       1,476       1,162       375       436  
    Net charge-offs   (5,127 )     (7,597 )     (7,252 )     (3,808 )     (8,387 )
    Provision for loan and lease losses excluding unfunded commitments *   7,707       6,659       5,019       9,374       10,013  
    Allowance for loan and lease losses at end of period $ 126,725     $ 124,145     $ 125,083     $ 127,316     $ 121,750  
               
    Allowance for loan and lease losses as a percentage of total loans and leases   1.32 %     1.29 %     1.28 %     1.31 %     1.25 %
               
    NET CHARGE-OFFS:          
    Commercial real estate loans $ 3,524     $ —     $ —     $ —     $ 3,819  
    Commercial loans and leases   1,640       7,647       7,257       3,797       4,571  
    Consumer loans   (37 )     (50 )     (5 )     11       (3 )
    Total net charge-offs $ 5,127     $ 7,597     $ 7,252     $ 3,808     $ 8,387  
               
    Net loan and lease charge-offs as a percentage of average loans and leases (annualized)   0.21 %     0.31 %     0.30 %     0.16 %     0.35 %
               
    *Provision for loan and lease losses does not include (credit) provision of $(0.7 million), $(0.7 million), $(0.9 million), $(4.5 million), and $(4.4 million) for credit losses on unfunded commitments during the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.          
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Three Months Ended
      June 30,
    2025
    		   March 31,
    2025    		   June 30,
    2024
      Average Balance   Interest (1)   Average Yield/ Cost   Average Balance   Interest (1)   Average Yield/ Cost
    		   Average Balance   Interest (1)   Average Yield/ Cost
      (Dollars in Thousands)
    Assets:                                                                      
    Interest-earning assets:                                                                      
    Investments:                                                                      
    Debt securities (2) $ 874,212     $ 6,752       3.09 %   $ 888,913     $ 6,814       3.07 %   $ 846,469     $ 6,510       3.08 %
    Restricted equity securities (2)   65,724       1,062       6.46 %     69,784       1,204       6.90 %     71,696       1,375       7.67 %
    Short-term investments   215,982       2,386       4.42 %     202,953       2,451       4.83 %     143,800       1,914       5.33 %
    Total investments   1,155,918       10,200       3.53 %     1,161,650       10,469       3.60 %     1,061,965       9,799       3.69 %
    Loans and Leases:                            
    Commercial real estate loans (3)   5,533,208       77,136       5.51 %     5,651,390       77,243       5.47 %     5,754,901       81,565       5.61 %
    Commercial loans (3)   1,286,908       20,757       6.38 %     1,237,078       19,698       6.37 %     1,069,154       17,672       6.54 %
    Equipment financing (3)   1,240,128       25,069       8.09 %     1,281,425       25,965       8.11 %     1,374,217       26,255       7.64 %
    Consumer loans (3)   1,556,254       21,437       5.51 %     1,548,973       20,861       5.41 %     1,488,587       20,291       5.46 %
    Total loans and leases   9,616,498       144,399       6.01 %     9,718,866       143,767       5.92 %     9,686,859       145,783       6.02 %
    Total interest-earning assets   10,772,416       154,599       5.74 %     10,880,516       154,236       5.67 %     10,748,824       155,582       5.79 %
    Non-interest-earning assets   630,518               662,814             704,570          
    Total assets $ 11,402,934             $ 11,543,330           $ 11,453,394          
                                 
    Liabilities and Stockholders’ Equity:                            
    Interest-bearing liabilities:                            
    Deposits:                            
    NOW accounts $ 637,786       1,034       0.65 %   $ 628,346       1,005       0.65 %   $ 659,351       1,111       0.68 %
    Savings accounts   1,780,838       10,692       2.41 %     1,743,688       10,173       2.37 %     1,731,388       11,874       2.76 %
    Money market accounts   2,189,373       13,990       2.56 %     2,187,581       13,587       2.52 %     2,026,780       15,520       3.08 %
    Certificates of deposit   1,879,749       18,437       3.93 %     1,886,386       19,593       4.21 %     1,699,510       18,717       4.43 %
    Brokered deposit accounts   748,205       8,529       4.57 %     767,275       9,120       4.82 %     958,146       12,499       5.25 %
    Total interest-bearing deposits   7,235,951       52,682       2.92 %     7,213,276       53,478       3.01 %     7,075,175       59,721       3.39 %
    Borrowings                            
    Advances from the FHLB   904,399       10,422       4.56 %     1,007,508       11,847       4.70 %     1,049,609       12,894       4.86 %
    Subordinated debentures and notes   84,380       1,718       8.14 %     84,345       1,701       8.07 %     84,241       1,375       6.53 %
    Other borrowed funds   46,086       565       4.93 %     71,462       872       4.95 %     103,753       1,364       5.29 %
    Total borrowings   1,034,865       12,705       4.86 %     1,163,315       14,420       4.96 %     1,237,603       15,633       5.00 %
    Total interest-bearing liabilities   8,270,816       65,387       3.17 %     8,376,591       67,898       3.29 %     8,312,778       75,354       3.65 %
    Non-interest-bearing liabilities:                            
    Demand checking accounts   1,654,594               1,680,527             1,646,869          
    Other non-interest-bearing liabilities   225,469               251,011             300,362          
    Total liabilities   10,150,879               10,308,129             10,260,009          
    Stockholders’ equity   1,252,055               1,235,201             1,193,385          
    Total liabilities and equity $ 11,402,934             $ 11,543,330           $ 11,453,394          
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)       89,212       2.57 %       86,338       2.38 %       80,228       2.14 %
    Less adjustment of tax-exempt income       527             508           227      
    Net interest income     $ 88,685           $ 85,830         $ 80,001      
    Net interest margin (5)           3.32 %           3.22 %           3.00 %
                                 
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Average Yields / Costs (Unaudited)
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest (1)   Average Yield/
    Cost
    		   Average
    Balance    		   Interest (1)   Average Yield/
    Cost          
      (Dollars in Thousands)
    Assets:                                              
    Interest-earning assets:                                              
    Investments:                                              
    Debt securities (2) $ 881,522     $ 13,566       3.08 %   $ 869,848     $ 13,437       3.09 %
    Restricted equity securities (2)   67,743       2,266       6.69 %     74,015       2,868       7.75 %
    Short-term investments   209,503       4,837       4.62 %     137,284       3,738       5.45 %
    Total investments   1,158,768       20,669       3.57 %     1,081,147       20,043       3.71 %
    Loans and Leases:                  
    Commercial real estate loans (3)   5,591,973       154,379       5.49 %     5,758,318       162,614       5.59 %
    Commercial loans (3)   1,262,130       40,455       6.38 %     1,047,810       35,179       6.64 %
    Equipment financing (3)   1,260,663       51,034       8.10 %     1,374,322       53,150       7.73 %
    Consumer loans (3)   1,552,633       42,298       5.46 %     1,485,702       40,269       5.43 %
    Total loans and leases   9,667,399       288,166       5.96 %     9,666,152       291,212       6.03 %
    Total interest-earning assets   10,826,167       308,835       5.71 %     10,747,299       311,255       5.79 %
    Non-interest-earning assets   646,577             684,343        
    Total assets $ 11,472,744           $ 11,431,642        
                       
    Liabilities and Stockholders’ Equity:                  
    Interest-bearing liabilities:                  
    Deposits:                  
    NOW accounts $ 633,092       2,039       0.65 %   $ 665,632       2,372       0.72 %
    Savings accounts   1,762,366       20,865       2.39 %     1,712,804       23,226       2.73 %
    Money market accounts   2,188,482       27,577       2.54 %     2,051,542       31,474       3.09 %
    Certificates of deposit   1,883,049       38,030       4.07 %     1,661,814       35,389       4.28 %
    Brokered deposit accounts   757,687       17,649       4.70 %     927,465       24,144       5.23 %
    Total interest-bearing deposits   7,224,676       106,160       2.96 %     7,019,257       116,605       3.34 %
    Borrowings                  
    Advances from the FHLB   955,669       22,269       4.63 %     1,107,071       27,527       4.92 %
    Subordinated debentures and notes   84,363       3,419       8.11 %     84,223       2,752       6.54 %
    Other borrowed funds   58,704       1,437       4.94 %     98,406       2,341       4.78 %
    Total borrowings   1,098,736       27,125       4.91 %     1,289,700       32,620       5.00 %
    Total interest-bearing liabilities   8,323,412       133,285       3.23 %     8,308,957       149,225       3.61 %
    Non-interest-bearing liabilities:                  
        Demand checking accounts   1,667,489             1,635,690        
        Other non-interest-bearing liabilities   238,169             289,351        
    Total liabilities   10,229,070             10,233,998        
    Stockholders’ equity   1,243,674             1,197,644        
    Total liabilities and equity $ 11,472,744           $ 11,431,642        
    Net interest income (tax-equivalent basis) /Interest-rate spread (4)       175,550       2.48 %         162,030       2.18 %
    Less adjustment of tax-exempt income       1,035             441    
    Net interest income     $ 174,515           $ 161,589    
    Net interest margin (5)           3.27 %             3.03 %
                       
    (1) Tax-exempt income on debt securities, equity securities and revenue bonds included in commercial real estate loans is included on a tax-equivalent basis.
    (2) Average balances include unrealized gains (losses) on investment securities. Dividend payments may not be consistent and average yield on equity securities may vary from month to month.
    (3) Loans on nonaccrual status are included in the average balances.
    (4) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income (tax-equivalent basis) divided by average interest-earning assets on an actual/actual basis.
    BROOKLINE BANCORP, INC. AND SUBSIDIARIES
    Non-GAAP Financial Information (Unaudited)
      At and for the Three Months Ended
    March 31,    		   At and for the Six Months Ended
    June 30,
        2025       2024       2025       2024  
    Reconciliation Table – Non-GAAP Financial Information (Dollars in Thousands Except Share Data)   (Dollars in Thousands Except Share Data)
                   
    Reported Pretax Income $ 29,594     $ 21,645     $ 55,076     $ 41,124  
    Add:              
    Merger and restructuring expense   439       823       1,410       823  
    Operating Pretax Income $ 30,033     $ 22,468     $ 56,486     $ 41,947  
    Effective tax rate   25.3 %     24.4 %     24.8 %     24.5 %
    Provision for income taxes   7,590       5,473       14,008       10,289  
    Operating earnings after tax $ 22,443     $ 16,995     $ 42,478     $ 31,658  
                   
    Operating earnings per common share:              
    Basic $ 0.25     $ 0.19     $ 0.48     $ 0.36  
    Diluted $ 0.25     $ 0.19     $ 0.47     $ 0.35  
                   
    Weighted average common shares outstanding during the period:              
    Basic   89,104,605       88,904,692       89,104,060       88,899,635  
    Diluted   89,612,781       89,222,315       89,590,267       89,201,912  
                   
    Return on average assets *   0.77 %     0.57 %     0.72 %     0.54 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.01 %     0.02 %     0.02 %     0.01 %
    Operating return on average assets *   0.78 %     0.59 %     0.74 %     0.55 %
                   
    Return on average tangible assets *   0.79 %     0.59 %     0.73 %     0.56 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.01 %     0.02 %     0.02 %     0.01 %
    Operating return on average tangible assets *   0.80 %     0.61 %     0.75 %     0.57 %
                   
                   
    Return on average stockholders’ equity *   7.04 %     5.49 %     6.61 %     5.18 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.10 %     0.21 %     0.17 %     0.10 %
    Operating return on average stockholders’ equity *   7.14 %     5.70 %     6.78 %     5.28 %
                   
                   
    Return on average tangible stockholders’ equity *   8.85 %     7.04 %     8.34 %     6.65 %
    Add:              
    Merger and restructuring expense (after-tax) *   0.13 %     0.27 %     0.21 %     0.13 %
    Operating return on average tangible stockholders’ equity *   8.98 %     7.31 %     8.55 %     6.78 %
                   
    * Ratios at and for the three months and six months ended are annualized.              
      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)
                     
    Net income, as reported $ 22,026   $ 19,100     $ 17,536     $ 20,142     $ 16,372  
                     
    Average total assets $ 11,402,934   $ 11,543,330     $ 11,580,572     $ 11,451,338     $ 11,453,394  
    Less: Average goodwill and average identified intangible assets, net   256,508     257,941       259,496       261,188       262,859  
    Average tangible assets $ 11,146,426   $ 11,285,389     $ 11,321,076     $ 11,190,150     $ 11,190,535  
                     
    Return on average tangible assets (annualized)   0.79 %   0.68 %     0.62 %     0.72 %     0.59 %
                     
    Average total stockholders’ equity $ 1,252,055   $ 1,235,201     $ 1,232,527     $ 1,216,037     $ 1,193,385  
    Less: Average goodwill and average identified intangible assets, net   256,508     257,941       259,496       261,188       262,859  
    Average tangible stockholders’ equity $ 995,547   $ 977,260     $ 973,031     $ 954,849     $ 930,526  
                     
    Return on average tangible stockholders’ equity (annualized)   8.85 %   7.82 %     7.21 %     8.44 %     7.04 %
                     
    Total stockholders’ equity $ 1,254,171   $ 1,240,182     $ 1,221,939     $ 1,230,362     $ 1,198,480  
    Less:                
    Goodwill   241,222     241,222       241,222       241,222       241,222  
    Identified intangible assets, net   14,600     16,030       17,461       19,162       20,830  
    Tangible stockholders’ equity $ 998,349   $ 982,930     $ 963,256     $ 969,978     $ 936,428  
                     
    Total assets $ 11,568,745   $ 11,519,869     $ 11,905,326     $ 11,676,721     $ 11,635,292  
    Less:                
    Goodwill   241,222     241,222       241,222       241,222       241,222  
    Identified intangible assets, net   14,600     16,030       17,461       19,162       20,830  
    Tangible assets $ 11,312,923   $ 11,262,617     $ 11,646,643     $ 11,416,337     $ 11,373,240  
                     
    Tangible stockholders’ equity to tangible assets   8.82 %   8.73 %     8.27 %     8.50 %     8.23 %
                     
    Tangible stockholders’ equity $ 998,349   $ 982,930     $ 963,256     $ 969,978     $ 936,428  
                     
    Number of common shares issued   96,998,075     96,998,075       96,998,075       96,998,075       96,998,075  
    Less:                
    Treasury shares   7,039,136     7,037,610       7,019,384       7,015,843       7,373,009  
    Unvested restricted shares   854,334     855,860       880,248       883,789       713,443  
    Number of common shares outstanding   89,104,605     89,104,605       89,098,443       89,098,443       88,911,623  
                     
    Tangible book value per common share $ 11.20   $ 11.03     $ 10.81     $ 10.89     $ 10.53  

    PDF available: http://ml.globenewswire.com/Resource/Download/713b7b8a-a804-4b26-a467-f10b0d266b1b 

    The MIL Network –

  • MIL-OSI: ARKO to Report Second Quarter 2025 Financial Results on August 6, 2025

    Source: GlobeNewswire (MIL-OSI)

    RICHMOND, Va., July 23, 2025 (GLOBE NEWSWIRE) — ARKO Corp. (Nasdaq: ARKO) (the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced that the Company will host a conference call on Wednesday, August 6, 2025 at 5:00 p.m. Eastern Time to discuss its financial results for the second quarter ended June 30, 2025.

    ARKO Corp.’s management team will host the conference call, followed by a question-and-answer period. The Company will provide its financial results in a press release prior to the call.

    Date: Wednesday, August 6, 2025
    Time: 5:00 p.m. Eastern Time
    Toll-free dial-in number: (877) 605-1792
    International dial-in number: (201) 689-8728
    Webcast: ARKO’s Q2 2025 Earnings Call

    A telephonic replay will be available approximately three hours after the call concludes through Friday, September 5, 2025.

    Toll-free replay number: (877) 660-6853
    International replay number: (201) 612-7415
    Replay ID: 13754740

    A link to the live webcast and replay will also be available at https://www.arkocorp.com/news-events/ir-calendar. We encourage all participants to register at least 15 minutes prior to the 5:00 p.m. ET start time. If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    About ARKO Corp.

    ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

    Company Contact
    Jordan Mann
    ARKO Corp.
    investors@gpminvestments.com

    Investor Contact
    Sean Mansouri, CFA
    Elevate IR
    (720) 330-2829
    ARKO@elevate-ir.com

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