NewzIntel.com

    • Checkout Page
    • Contact Us
    • Default Redirect Page
    • Frontpage
    • Home-2
    • Home-3
    • Lost Password
    • Member Login
    • Member LogOut
    • Member TOS Page
    • My Account
    • NewzIntel Alert Control-Panel
    • NewzIntel Latest Reports
    • Post Views Counter
    • Privacy Policy
    • Public Individual Page
    • Register
    • Subscription Plan
    • Thank You Page

Category: real estate

  • MIL-OSI United Kingdom: Appointment of Churches Conservation Trust members: 1 August 2025

    Source: United Kingdom – Government Statements

    Press release

    Appointment of Churches Conservation Trust members: 1 August 2025

    The King has approved the nomination of Trustees of the Board of the Churches Conservation Trust.

    The King has approved the nomination of Bishop Andrew Rumsey, Dr Ingrid Samuel OBE, Lord (Stephen) Parkinson of Whitley Bay, Michael Bithell JP, Vivienne King and Reverend Canon Timothy Goode.

    Andrew Rumsey read history at the University of Reading before training for ordination at Ridley Hall, Cambridge and doctoral studies at King’s College, London. Ordained in 1997, he has held a variety of parish posts in London and Southwark and was appointed Suffragan Bishop of Ramsbury in 2018. Andrew is the joint National Church of England Lead for Church and Cathedral Buildings, and is a writer, musician and champion for Anglican heritage.

    Dr Ingrid Helene Samuel OBE was educated at McGill University, Canada, obtaining BA in History, she then gained a M Litt and PhD in Modern History at Jesus College, Cambridge. In 2004 Ingrid was Head of Culture for the London Olympic Bid and between 2005 – 2011 has held several roles in the Department for Culture, Media and Sport including Head of Properties and Ceremonial Branch, Head of Heritage, and Head of Heritage and Architecture. Additionally, in 2011 she took up the role of Placemaking and Heritage Director with the National Trust.

    Lord Parkinson of Whitley Bay was educated at Emmanuel College, Cambridge, obtaining an MA in History. From 2021-2024 Stephen was Parliamentary Under-Secretary of State, Department for Culture, Media & Sport, and previously was Political Secretary to the Prime Minister and Special Adviser to the Home Secretary.

    Michael Bithell JP was educated at Magdalen College, Oxford, completing a MA in Engineering Science and post-graduate studies in Manufacture and Management at Cambridge University. Now retired, Michael was Group Finance Director of United Westminster and Grey Coat Foundation from 2015 to 2022. Previously, he worked for Deloitte LLP for 23 years, as Director, National Quality & Risk; and Director, Corporate Finance Government & Infrastructure. He has a number of voluntary and non-executive positions, including as a member of London Diocesan Synod, Finance Committee and Non-Property Investment Committee, as a Magistrate and an Honorary Steward of Westminster Abbey.

    Vivienne King was educated at Keele University obtaining a BSoc Sci in Law and Politics in 1983, subsequently completing a Legal Practice Course at the College of Law in 1985. In 2010 and 2012 she completed a Corporate Finance Programme with Cranfield University and in 2021 undertook Business Sustainability Management with the University of Cambridge Institute for Sustainability Leadership. After seven years as Real Estate Associate with Herbert Smith Freehills, Vivienne joined The Crown Estate in 1994 as a Senior Solicitor and was subsequently Director of Business Operations & General Counsel. She was CEO of the Soho Housing Association from 2016 to 2020, CEO of Revo and then Head of Real Estate Social Impact at The Good Economy. In March 2024 Vivienne founded Impactful Places, an independent sustainability consultancy.

    Timothy Goode has been the Canon for Congregational Discipleship and Nurture at York Minster since September 2023. Previously he was Rector of St Margaret’s Lee in South East London, and a member of General Synod and Archbishops’ Council. Tim is a member of the National Disability Task Group, which advises the Archbishops of Canterbury and York on disability issues and he led the first debate on disability at the General Synod in July 2022. Tim was a secondary school teacher at the Roehampton Institute and Director of Music of Homefield School from 1995-2007. He trained for ministry at Ripon College Cuddesdon and served his title at Croydon Minster, in the Diocese of Southwark and was ordained priest in 2010. From September 2012 to May 2018, he was Team Vicar of St Luke’s Whyteleafe and St Peter and St Paul, Chaldon, part of the Caterham Team ministry. From 2013 to 2021 he was additionally the Southwark Diocesan Disability Advisor. Tim was made an Honorary Canon of Southwark Cathedral in September 2020 and has been a trustee of the Churches Conservation Trust since November 2020. He has now been re-appointed in the role for a second term until October 2028.

    Share this page

    The following links open in a new tab

    • Share on Facebook (opens in new tab)
    • Share on Twitter (opens in new tab)

    Updates to this page

    Published 1 August 2025

    MIL OSI United Kingdom –

    August 5, 2025

  • MIL-OSI: Patria Reports Second Quarter 2025 Earnings Results

    Source: GlobeNewswire (MIL-OSI)

    GRAND CAYMAN, Cayman Islands, Aug. 01, 2025 (GLOBE NEWSWIRE) — Patria (Nasdaq:PAX) reported today its unaudited results for the second quarter ended June 30, 2025. The full detailed presentation of Patria’s second quarter 2025 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.

    Alex Saigh, Patria’s CEO, said: “In 2Q we made continued progress in leveraging and expanding the diversified platform we’ve built the past several years as fundraising was a solid $1.3 billion in the quarter, bringing our total fundraising over the first half of 2025 to ~$4.5 billion. Reflecting our strong fundraising momentum and confidence in our outlook, we now expect full-year fundraising to be 5%-10% higher than our initial $6 billion target. We also reported 2Q25 FRE of $46 million, or $0.29 per share, representing year-over-year growth of 17% and 11%, respectively. Also, FEAUM grew 6% sequentially and 20% year-over-year, and we generated over $600 million of organic net inflows. Over the first half of 2025 our annualized organic growth rate exceeded 8%.

    While a looming trade war and global economic concerns create potential headwinds, we believe we are well positioned to generate the $200 to $225 million of FRE we are targeting for 2025 as the increased diversification of our platform is paying off in terms of fundraising and profitable organic growth, enhancing our confidence in the three-year targets we introduced at our Investor Day back on December 9th.”

    Financial Highlights (reported in $ USD)

    IFRS results included $12.9 million of net income attributable to Patria in Q2 2025. Patria generated Fee Related Earnings of $46.1 million in Q2 2025, up 17% from $39.5 million in Q2 2024, with an FRE margin of 56.8%. Distributable Earnings were $38.8 million for Q2 2025, or $0.24 per share.

    Dividends

    Patria declared a quarterly dividend of $0.15 per share to record holders of common stock at the close of business on August 15th, 2025. This dividend will be paid on September 15th, 2025.

    Share Repurchase Program

    Patria’s board of directors has authorized a new share repurchase program. Under the repurchase program, Patria may repurchase up to 3 million of its outstanding Class A common shares in the open market, based on prevailing market prices, or in privately negotiated transactions, over a period beginning in August 2025 continuing until the earlier of the completion of the repurchase or August 2026, depending upon market conditions. Patria’s board of directors will review the repurchase program periodically and may authorize adjustments to its terms and size or suspend or discontinue the repurchase program. Such purchases may benefit from the safe harbors provided by Rule 10b-18 and/or Rule 10b5-1, promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. The actual timing, number and value of shares repurchased under the repurchase program will depend on several factors, including constraints specified in the Rule 10b-18 and/or Rule 10b5-1, price, general business and market conditions, and alternative investment opportunities. The repurchase program does not obligate Patria to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time.

    Conference Call

    Patria will host its second quarter 2025 earnings conference call via public webcast on August 1st, 2025, at 9:00 a.m. ET. To register and join, please use the following link:

    https://edge.media-server.com/mmc/p/rpv5tvp5

    For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Patria’s website at https://ir.patria.com/ shortly after the call’s completion.

    About Patria

    Patria is a global alternative asset management firm focused on the mid-market segment, specializing in resilient sectors across select regions. We are a leading asset manager in Latin America and have a strong presence in Europe through our extensive network of General Partners relationships. Our on-the-ground presence combines investment leaders, sector experts, company managers, and strategic relationships, allowing us to identify compelling investment opportunities accessible only to those with local proficiency. With 37 years of experience and over $48 billion in assets under management, we believe we consistently deliver attractive returns through long-term investments, while promoting inclusive and sustainable development in the regions where we operate. Further information is available at www.patria.com.

    Asset Classes: Private Equity, Solutions (GPMS), Credit, Real Estate, Infrastructure, and Public Equities

    Main sectors: Agribusiness, Power & Energy, Healthcare, Logistics & Transportations, Food & Beverage and Digital & Tech Services

    Investment Regions: Latin America, Europe and the U.S.

    Forward-Looking Statements

    This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words, among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Further information on these and other factors that could affect our financial results is included in filings we have made and will make with the U.S. Securities and Exchange Commission from time to time, including but not limited to those described under the section entitled “Risk Factors” in our most recent annual report on Form 20-F, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our periodic filings.

    Contact

    Patria Shareholder Relations
    E. PatriaShareholderRelations@patria.com
    T. +1 917 769 1611

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Middlefield Banc Corp. Announces Additions to Banking Team

    Source: GlobeNewswire (MIL-OSI)

    John Cunningham appointed Northeast Ohio Commercial Market Executive
    Thomas Young appointed Northeast Ohio Commercial Relationship Manager
    Nick Paradiso appointed Central Ohio Commercial Relationship Manager
    Middlefield also announces the retirement of Jack Gregorin Northeast Ohio Commercial Relationship Manager

    MIDDLEFIELD, Ohio, July 31, 2025 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today announced that John Cunningham has been appointed Northeast Ohio Commercial Market Executive, Thomas Young has been appointed Northeast Ohio Commercial Relationship Manager, and Nick Paradiso has been appointed Central Ohio Commercial Relationship Manager. These additions reflect Middlefield’s continued commitment to expanding its commercial banking capabilities and delivering strong relationship-driven services across its Ohio markets.

    The Company also announced the retirement of Jack Gregorin, after a 43-year banking career with the last seven years at Middlefield as the Company’s Northeast Ohio Commercial Relationship Manager.

    Ronald L. Zimmerly, Jr., President, and Chief Executive Officer, stated, “As we continue to invest in our commercial banking business, John, Tom, and Nick bring the experience, leadership, and deep community connections that will support our clients and strengthen our presence in our Northeast and Central Ohio markets. These appointments demonstrate our commitment to build high-performing teams across our Ohio communities and serve as a reliable financial partner to the region’s business community.”

    Zimmerly continued, “On behalf of the entire Middlefield family, I want to thank Jack for his years of service to the Bank. For 43 years, Jack has provided commercial customers throughout Ohio with integrity and proven financial advice. I wish Jack well on his next chapter.”

    John Cunningham Appointed SVP, Northeast Ohio Commercial Market Executive
    In this role, Cunningham will oversee Middlefield’s commercial growth strategy and relationship management across the Company’s Northeast Ohio footprint. With nearly 30 years of banking experience and a reputation for building high-performing teams, Cunningham brings significant expertise in commercial real estate and middle market banking. From 2021 to 2025, Cunningham was the SVP – Senior Managing Director, Commercial Real Estate at Premier Bank. Prior to this, he held positions at TCF Bank / Chemical Bank, The Home Saving and Loan Bank, Huntington National Bank, National City Bank, and Associates First Capital Corporation.

    As a Northeast Ohio native, Cunningham holds degrees from Miami University and Case Western Reserve University’s Weatherhead School of Business. Beyond banking, he’s a passionate supporter of the arts, having recently completed eight years of service as Trustee and Treasurer for the Valley Arts Center in Chagrin Falls.

    Thomas Young Appointed VP, Northeast Ohio Commercial Relationship Manager
    As VP, Northeast Ohio Commercial Relationship Manager, Young will focus on delivering strategic advice to business clients in the Northeast Ohio Region, helping them improve cash flow, finance key assets, and mitigate risk. With a strong analytical skillset and a passion for supporting business growth, Young has built a career helping clients navigate change and seize opportunity.   Most recently, he was VP, Senior Business Banking Relationship Manager at U.S. Bank from 2023 to 2025. His prior experience includes roles at First Federal of Lakewood, First National Bank of Pennsylvania, PNC Bank, FirstMerit Bank, Huntington National Bank, and KeyBank.

    Young holds degrees from Louisiana State University – Shreveport, and Myers University. He has also played a leadership role in local economic development, having served as Director and Past Board President of the Mentor Economic Assistance Corporation (MEACO).

    Nick Paradiso Appointed VP, Central Ohio Commercial Relationship Manager
    As VP, Central Ohio Commercial Relationship Manager, Paradiso will focus on delivering strategic advice to business clients within Central Ohio, helping them improve cash flow, finance key assets, and mitigate risk. With over 15 years of experience in banking, Paradiso is a seasoned commercial lender providing customized financing solutions to small and medium-sized businesses. Most recently, he was VP, Commercial Lending at Civista Bank from 2023 to 2025. His prior experience includes roles at LCNB National Bank, CFBank, Huntington National Bank, and Fifth Third Bank.

    Paradiso holds degrees from John Carroll University and the University of Dayton. He is active across the Columbus community and is currently a member of the Short North Rotary Club, Association for Corporate Growth, Columbus Italian Club, Franklinton Board of Trade, Ohio Business Brokers Association, and Columbus Chamber.

    About Middlefield Banc Corp.
    Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.92 billion at June 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

    Additional information is available at www.middlefieldbank.bank

    FORWARD-LOOKING STATEMENTS
    This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are a number of important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

    Company Contact: Investor and Media Contact:
    Ron Zimmerly
    President and Chief Executive Officer
    Middlefield Banc Corp.
    (419) 673-1217
    RZimmerly@middlefieldbank.com    		 Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/56766f6d-9249-44ca-8226-d735f1753dd7
    https://www.globenewswire.com/NewsRoom/AttachmentNg/9adb82cd-789f-4649-9e89-d04cfa08261b
    https://www.globenewswire.com/NewsRoom/AttachmentNg/e069967c-0af2-46c4-8ef6-d562ac773761

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Applied Releases Commercial Lines Premium Rate Index Findings for Q2 2025

    Source: GlobeNewswire (MIL-OSI)

    Toronto, ON, July 31, 2025 (GLOBE NEWSWIRE) — Applied Systems® today announced the second quarter 2025 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 3.63% in Q2 2025 down from 5.83% in Q2 2024. All lines of business saw decreases compared to the same quarter last year.
    Quarter over quarter, Q2 2025 results showed average renewal rate change decreased across many lines of the most commonly placed Commercial Lines categories, including Real Estate Property, Business and Professional Services, and Construction. Hospitality Services and Retail Services experienced an increase in average renewal rate change.
    Significant findings include:

    • Business and Professional Services: Q2 2025 premium renewal rate change average was 3.00%, down from the Q1 2025 average of 3.99%.
    • Construction, Erection, and Installation Services: Premium renewal rate change average was 3.56% for the quarter, down from the Q1 2025 average of 3.85%.
    • Hospitality Services: Q2 2025 premium renewal rate change average was 4.53%, up from the Q1 2025 average of 3.08%.
    • Real Estate Property: Premium renewal rate change average was 3.38% for the quarter, down from the Q1 2025 average of 3.58%.
    • Retail Services: Premium renewal rate change averaged 4.62%, up from the Q1 2025 average of 4.57%.

    “This quarter’s average premium renewal rate change continues to decrease across the most commonly placed commercial lines of business, except Hospitality Services which saw a spike,” said Steve Whitelaw, SVP and general manager, Canada, Applied Systems. “As we make our way into the second of the year, the Applied Commercial Index will shine light on how current macro trends such as US tariffs and others will affect rates.”
    Access the complete quarterly report here.                                                            

    # # #

    Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial Index.

    About Applied Systems
    Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Vancity reports strong Q2 results, early evidence of transformation to Vancity 2.0

    Source: GlobeNewswire (MIL-OSI)

    TERRITORIES OF MUSQUEAM, SQUAMISH AND TSLEIL-WAUTUTH NATIONS and VANCOUVER, British Columbia, July 31, 2025 (GLOBE NEWSWIRE) — Vancity delivered strong financial results at the end of the second quarter that ended on June 30, 2025, highlighting growth across key areas for the credit union. This solid performance reveals wins for a new strategy aimed at growing with impact and delivering exceptional member experience. 

    Core revenues climbed to $307.5 million by June 30th, representing a 24% increase compared to 2024 and marking continued growth in revenues and profitability in 2025. This includes $157.6 million added in the second quarter. Income before tax and distributions grew to $46.6 million year-to-date, with the second quarter adding $25.1 million. Member deposits increased by $97.8 million — $63.5 million in the second quarter — with a notable increase in both retail and commercial demand deposits, while net retail mortgage lending jumped by $387.2 million since the beginning of this year. This improving financial performance means more resources available to support people in these uncertain times, as 30% of Vancity’s net profits go back to members and communities.

    “Vancity 2.0 is our vision to be an industry leader delivering outstanding member experience, while staying fiercely committed to making a big difference in this world,” said Wellington Holbrook, President and CEO of Vancity. “These results are telling us our strategy is working — we’re restoring profitability after a challenging year in 2024 and building a stronger credit union to be an innovative leader for the future.” 

    Vancity’s work has also yielded real, positive impacts in 2025 on vital issues facing members and communities. Year-to-date growth in net retail mortgages supported more than 3000 families and individuals with their home-ownership needs, including 452 loans to help first-time home buyers enter the housing market. At the same time, in the first half of this year alone Vancity financed 900 units of affordable housing — that’s 900 more families who will be able to access a home they can afford.

    Vancity has also been focused on building a more resilient local economy in light of economic uncertainty and trade concerns. Reflecting this commitment, Vancity provided $689.7 million in financing for local businesses in 2025, as of June 30th. This includes support extended to 188 women or non-binary small-business owners with loans through its women’s entrepreneurship program in Q2, bringing the total to 320 so far this year. A partnership with WeBC that provides financing and wrap-around supports for women and non-binary entrepreneurs, this program means more people have fairer access to financing while also supporting the diversity of Canada’s economy at a critical time.

    “For Vancity, results aren’t just about numbers — they’re about people, “said Holbrook. “Strong financial results mean we can do more — fund more units of affordable housing, extend more support for the Indigenous economy, drive more investment back into communities, and support more entrepreneurs building local small businesses that make our economy more resilient. At a time when people need support more than ever, we’re here for them.”  

    This marks the first time Vancity has released its quarterly results, a move the credit union will replicate going forward as it continues its transformation.

    Amidst this strong performance, Vancity remains focused on connecting with members and communities in neighbourhoods across its service areas and beyond. In the second quarter, Vancity sponsored major events like the Vancouver Sun Run and Vancity Innovation House, a partnership with Frontier Collective during Web Summit Vancouver. Vancity branches participated in local community events across the lower mainland and on Vancouver Island, as well as participated in significant community celebrations like Surrey Vaisakhi, Vancouver Vaisakhi, Qmunity Pride Breakfast, and more.

    Vancity is also doubling down on serving and supporting members through uncertain times and re-investing in the experience of members as a central priority — including investing in a new digital platform expected to launch by the end of this year. This comes on the heels of enhancements in technology in 2024 to better serve members, from new products to improvements to existing services, as well as operational efficiencies to create smoother, member-centred experiences for everyone Vancity serves.

    About Vancity
    Vancity is a values-based financial co-operative serving the needs of its 570,000 member-owners and their communities, with offices and more than 50 branches located in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay, within the territories of the Coast Salish and Kwakwaka’wakw people. With $36 billion in assets plus assets under administration, Vancity is one of Canada’s largest credit unions. Vancity uses its assets to help improve the financial well-being of its members while at the same time helping to develop healthy communities that are socially, economically and environmentally sustainable.

    Media Relations | Vancity
    mediarelations@vancity.com
    T: 778-837-0394

    Forward-Looking Statements
    This news release contains forward-looking statements that reflect Vancity’s current expectations regarding future events, performance, and results. Those statements are based on assumptions, estimates, and projections that management considers reasonable in light of historical trends, current conditions, and expected future developments. However, forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Vancity’s control, including but not limited to changes in economic and geopolitical conditions, interest rates, regulatory requirements, and competitive factors. Actual results may differ from those expressed or implied in these statements. Vancity does not undertake any obligation to update or revise forward-looking statements, except as required by applicable laws. Readers are cautioned not to place undue reliance on these forward-looking statements. 

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Great Elm Group Announces Strategic Partnership with Kennedy Lewis Investment Management

    Source: GlobeNewswire (MIL-OSI)

    – Purchases 4.9% of Great Elm Group’s Common Stock; $150 Million Debt Investment in Monomoy Properties REIT to Accelerate Industrial Real Estate Platform Expansion –

    – Company to Host Conference Call at 8:30 a.m. ET on August 1, 2025 –

    Transaction Highlights:

    • Certain funds affiliated with Kennedy Lewis Investment Management LLC (“KLIM”) purchase 4.9% of Great Elm Group, Inc’s (“GEG”) outstanding common stock at market price, approximately $2.11 per share.
    • $150 million of term loans in total strategic financing for Monomoy Properties REIT, LLC (“Monomoy REIT”) from KLIM to catalyze growth across the Monomoy industrial real estate platform recently consolidated under Great Elm Real Estate Ventures, LLC (“Real Estate Ventures”)
    • KLIM appoints board representatives at both GEG and Monomoy REIT, underscoring its commitment to a long-term partnership

    PALM BEACH GARDENS, Fla., July 31, 2025 (GLOBE NEWSWIRE) —  Great Elm Group, Inc. (“we,” “us,” “our,” “GEG” or “Great Elm,”) (NASDAQ: GEG), a publicly traded alternative asset manager, today announced a transformational strategic partnership with KLIM, an institutional alternative investment firm focused on opportunistic credit strategies including real estate with over $30 billion in assets under management. This partnership delivers up to $150 million in leverageable capital to support continued growth across Great Elm’s real estate platform, which includes Monomoy REIT, Monomoy CRE (MCRE), Monomoy Construction Services (MCS), and Monomoy BTS (MBTS) (together “Monomoy”). Monomoy offers a full-service suite of project management, procurement, construction management, asset management, market analysis and feasibility services for its industrial real estate tenants.

    Under the terms of the transaction, KLIM is providing an initial $100 million term loan to Monomoy REIT, and the option for an additional $50 million in future capital. Additionally, KLIM is purchasing 4.9% of GEG’s common stock at market price, approximately $2.11 a share, and will hold an initial 15% profits interest (which may be increased to 20% under certain circumstances) in the newly formed Great Elm Real Estate Ventures, LLC, which consolidates GEG’s real estate subsidiaries: MCRE, MCS, and MBTS.

    “KLIM’s investment strengthens our position as a full-spectrum real estate enterprise,” said Jason Reese, Chief Executive Officer of Great Elm. “Their deep sector expertise, alignment with our long-term vision, and capital commitment empower us to deliver superior value to Monomoy’s tenants and clients as well as our shareholders.”

    KLIM is also appointing a board representative at each of Great Elm and Monomoy REIT, underscoring its role as a long-term partner.

    “We are excited to partner with Great Elm and support the continued expansion of its industrial real estate platform,” said David Chene, Co-Founder of KLIM. “The integrated strategy being executed through Monomoy is exactly the kind of scalable, opportunity-rich platform we seek to support. We look forward to working closely with the leadership team to unlock the full potential of this business.”

    About the Monomoy Platform

    Monomoy Properties REIT, LLC (REIT) is a private real estate investment trust with approximately $400 million of diversified net leased IOS assets. Backed by disciplined investment principles and a long-term view, the REIT provides investors with exposure to mission-critical facilities occupied by high-quality tenants. The REIT offers investors returns through dividends and long-term capital appreciation.

    Great Elm Real Estate Ventures (Real Estate Ventures), a newly created entity comprised of wholly owned subsidiaries of GEG, brings together a vertically integrated group of real estate-focused businesses, each playing a strategic role in delivering best-in-class industrial outdoor storage (IOS) properties across the United States. The wholly owned subsidiaries of GEG include the following:

    Monomoy CRE, LLC (MCRE) serves as the real estate asset manager at the core of the Monomoy platform. MCRE is responsible for executing Monomoy Properties REIT’s day-to-day investment strategy while also sourcing and identifying prime IOS real estate opportunities for development by BTS. With deep market expertise and a proactive approach, MCRE ensures seamless coordination across acquisition, development, and asset management functions.

    Monomoy BTS Corp. (BTS) focuses on acquiring land and developing custom-built IOS properties tailored to tenant needs. Each project is executed with precision, supporting business growth and operational efficiency for its clients.

    Monomoy Construction Services, LLC (MCS) offers full-service procurement and construction management. MCS serves the REIT, BTS, and select third-party clients, ensuring consistent delivery, quality, cost control, and timely execution.

    Together, these entities create a powerful, end-to-end real estate platform that combines deep market insight, professional asset management services investment expertise, and turnkey execution capabilities to generate long-term value for tenants and investors alike.

    Transforming Into a Full-Service Real Estate Platform

    This capital injection represents a major milestone in the continued growth and ongoing evolution of Great Elm’s real estate business. This structure enables Great Elm Real Estate Ventures to serve its tenants as a comprehensive, value-added real estate partner, enhancing delivery of real estate solutions from acquisition through development and management.

    Strategic and Financial Impact

    The KLIM financing substantially improves Monomoy REIT’s cost of capital and allows for the refinancing of existing convertible debt and repayment of key credit facilities. The capital will also be used to fund new acquisitions and further scale Monomoy’s operations.

    Great Elm Real Estate Ventures Conference Call & Webcast Information

    When: Friday, August 1, 2025, 8:30 a.m. Eastern Time (ET)

    Call: All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13755229 if asked.

    Webcast: The conference call will be webcast simultaneously and can be accessed here. A copy of the slide presentation accompanying the conference call, can be found here.

    About Kennedy Lewis Investment Management, LLC

    Kennedy Lewis is a credit focused alternative investment manager founded in 2017 by David K. Chene and Darren L. Richman with over $30 billion under management.   The firm and its affiliates manage private funds, a publicly traded REIT focused on landbanking (Millrose Properties, Inc.), a non-exchange traded business development company (Kennedy Lewis Capital Company), and collateralized loan obligations (Generate Advisors, LLC).

    About Great Elm Group, Inc.

    Great Elm Group, Inc. (NASDAQ: GEG) is an alternative asset manager focused on building a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. GEG manages Great Elm Capital Corp. (NASDAQ: GECC), a publicly-traded business development company, Monomoy Properties REIT, LLC, an industrial outdoor storage-focused real estate investment trust along with its growing real estate services platform through Monomoy CRE, MBTS, and MCS. Learn more at www.greatelmgroup.com.

    About Great Elm Real Estate Ventures

    Great Elm Real Estate Ventures, a wholly owned subsidiary of GEG, consolidates the Monomoy real estate platform comprised of Monomoy CRE, LLC (MCRE), Monomoy Construction Services, LLC (MCS), and Monomoy BTS Corp (MBTS). Great Elm Real Estate Ventures operates as a full-service industrial outdoor space (IOS) enterprise that provides solutions for our tenants through property management, real estate investments, construction and development. Through the Monomoy platform, Real Estate Ventures invests in build-to-suit and existing Class A, B, and C single-tenant industrial properties across the US, focusing on equipment rental, building supply, materials, manufacturing, warehousing, distribution, and logistics, while specifically targeting critical markets with economic growth.

    Cautionary Statement Regarding Forward-Looking Statements

    Statements in this press release that are “forward-looking” statements, including statements regarding expected benefits from the transaction, growth, profitability, acquisition opportunities involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent GEG’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and GEG’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from GEG’s expectations, please see GEG’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to GEG’s financial position and results of operations is also contained in GEG’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

    This press release does not constitute an offer of any securities for sale.

    Media & Investor Contact:
    Investor Relations
    geginvestorrelations@greatelm.com

    The MIL Network –

    August 5, 2025

  • MIL-OSI: QUAINT OAK BANCORP, INC. ANNOUNCES SECOND QUARTER EARNINGS

    Source: GlobeNewswire (MIL-OSI)

    Southampton, PA , July 31, 2025 (GLOBE NEWSWIRE) — Quaint Oak Bancorp, Inc. (the “Company”) (OTCQB: QNTO), the holding company for Quaint Oak Bank (the “Bank”), announced today net income for the quarter ended June 30, 2025 of $272,000, or $0.10 per basic and diluted share, compared to net income of $100,000, or $0.04 per basic and diluted share, for the same period in 2024. Net income for the six months ended June 30, 2025 was $189,000, or $0.07 per basic and diluted share, compared to net income of $973,000, or $0.39 per basic and diluted share, for the same period in 2024.

    Robert T. Strong, Chief Executive Officer stated, “I am pleased to report that our earnings for the second quarter ended June 30, 2025, were measurably improved over the prior quarter. We anticipate that we have generally stabilized expenses except for certain one-time costs expected to be incurred during the second half of 2025 as we rectify and complete the build out of our business lines.”

    Mr. Strong added, “Uncertainties in national and international economics continue. However, compared to our first quarter report, and despite the housing market still not thriving, our mortgage banking company improved in its performance. Our SBA production is now generally on target, along with commercial loan sales becoming more productive.”

    Mr. Strong continued, “Loan closings are more consistent while asset growth is well contained as a result of regular loan sales into a secondary market.”

    Mr. Strong commented, “We have been reporting weakness in the small business sector of our loan portfolio which still exists. However, our asset quality ratios have improved. Our non-performing assets as a percent of total assets are reported at 0.89%, our non-performing loans as a percentage of total loans receivable, net is reported at 1.10% both as of June 30, 2025. Additionally, our Texas Ratio is reported at 9.24% as of June 30, 2025.”

    Mr. Strong concluded, “As always, our current and continued business strategy focuses on long term profitability and maintaining healthy capital ratios both of which reflect our strong commitment to shareholder value.”

    Comparison of Quarter-over-Quarter Operating Results

    Net income amounted to $272,000 for the three months ended June 30, 2025, an increase of $172,000, or 172.0%, compared to net income of $100,000 for the three months ended June 30, 2024. The increase in net income on a comparative quarterly basis was primarily the result of a decrease in interest expense of $1.1 million, and an increase in non-interest income of $643,000, partially offset by a decrease in interest and dividend income of $703,000, an increase in the provision for credit losses of $478,000, an increase in non-interest expense of $297,000, and an increase in the net provision for income taxes from continuing operations of $127,000.

    The $703,000, or 6.5%, decrease in interest and dividend income for the quarter was primarily due to a $66.2 million decrease in the average balance of due from banks – interest earning, which decreased from $103.9 million for the three months ended June 30, 2024 to $37.7 million for the three months ended June 30, 2025, and had the effect of decreasing interest income $960,000, a decrease in the average balance of loans receivable, net, which decreased $15.9 million from $605.3 million for the three months ended June 30, 2024 to $589.4 million for the three months ended June 30, 2025 and had the effect of decreasing interest income $245,000, and a decrease in the average yield on due from banks – interest earning, which decreased from 5.80% for the three months ended June 30, 2024 to 4.21% for the three months ended June 30, 2025 and had the effect of decreasing interest income $150,000. Partially offsetting the decrease in interest and dividend income was a 42 basis point increase in the average yield on loans receivable, net from 6.16% for the three months ended June 30, 2024 to 6.58% for the three months ended June 30, 2025, and had the effect of increasing interest income $622,000.

    The $1.1 million, or 16.6%, decrease in interest expense for the three months ended June 30, 2025 over the comparable period in 2024 was driven by a $1.6 million, or 25.5%, decrease in interest expense on deposits, which was primarily attributable to a decrease in average balances of interest-bearing deposits as a result of reduced correspondent banking activity and reduction in a money market deposit through a deposit placement agreement. Also contributing to the decrease in interest expense for the three months ended June 30, 2025 was a $320,000, or 65.6%, decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by a $481,000, or 288.0%, increase in the interest expense on Federal Home Loan Bank borrowings due to a $38.3 million, or 212.1%, increase in the average balance of Federal Home Loan Bank borrowings which increased from $18.0 million for the three months ended June 30, 2024 to $56.3 million for the three months ended June 30, 2025, and a $275,000 increase in interest expense on senior debt. The average interest rate spread increased from 1.57% for the three months ended June 30, 2024 to 2.19% for the three months ended June 30, 2025 and the net interest margin increased from 2.28% for the three months ended June 30, 2024 to 2.85% for the three months ended June 30, 2025.

    The $478,000, or 1,165.9%, increase in the provision for credit losses for the three months ended June 30, 2025 over the three months ended June 30, 2024 was primarily due to an increase in charge-offs during the three months ended June 30, 2025, partially offset by a decrease in loans receivable, net.

    The $643,000, or 49.3%, increase in non-interest income for the three months ended June 30, 2025 over the comparable period in 2024 was primarily attributable to a $485,000, or 86.5%, increase in net gain on sale of loans, a $413,000, or 421.4%, increase in gain on sale of SBA loans, a $97,000, or 53.0%, increase in mortgage banking, equipment lending and title abstract fees, and a $20,000, or 11.4%, increase in insurance commissions. These increases were partially offset by a $359,000, or 149.6%, decrease in other fees and service charges, and a $16,000, or 100.0%, decrease in real estate sales commissions, net. The reduction in other fees and service charges is attributable to reduced correspondent banking activities.

    The $297,000, or 5.7%, increase in non-interest expense for the three months ended June 30, 2025 over the comparable period in 2024 was primarily due to a $152,000, or 39.8%, increase in other expense, a $128,000, or 41.2%, increase in data processing expense, a $27,000, or 37.0%, increase in advertising expense, an $18,000, or 11.5%, increase in professional fees, a $16,000, or 3.9%, increase in occupancy and equipment expense, and a $15,000, or 30.0%, increase in directors’ fees and expenses. These increases were partially offset by a $31,000, or 0.8%, decrease in salaries and employee benefits expense, and a $28,000, or 17.2%, decrease in FDIC deposit insurance assessment.

    The provision for income tax from continuing operations increased $127,000, or 153.01%, from $83,000 for the three months ended June 30, 2024 to $210,000 for the three months ended June 30, 2025 due primarily to an increase in pre-tax income.

    Comparison of Six-Month Operating Results

    Net income amounted to $189,000 for the six months ended June 30, 2025, a decrease of $784,000, or 80.6%, compared to net income of $973,000 for the six months ended June 30, 2024. The decrease in net income on a comparative quarterly basis was primarily the result of a decrease in interest and dividend income of $2.9 million, an increase in non-interest expense of $716,000, and a decrease in net income from discontinued operations of $406,000, partially offset by a decrease in interest expense of $2.1 million, an increase in non-interest income of $821,000, a decrease in the provision for credit losses of $217,000, and a decrease in the net provision for income taxes from continuing operations of $135,000.

    The $2.9 million, or 12.6%, decrease in interest and dividend income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $42.8 million from $631.9 million for the six months ended June 30, 2024 to $589.1 million for the six months ended June 30, 2025 and had the effect of decreasing interest income $1.4 million, a $49.7 million decrease in the average balance of due from banks – interest earning, which decreased from $86.8 million for the six months ended June 30, 2024 to $37.1 million for the six months ended June 30, 2025, and had the effect of decreasing interest income $1.3 million, and a 124 basis point decrease in the average yield on due from banks – interest earning from 5.27% for the six months ended June 30, 2024 to 4.03% for the six months ended June 30, 2025, and had the effect of decreasing interest income $230,000.

    The $2.1 million, or 15.2%, decrease in interest expense for the six months ended June 30, 2025 over the comparable period in 2024 was driven by a $2.8 million, or 23.3%, decrease in interest expense on deposits, which was primarily attributable to a decrease in the average balance of interest-bearing deposits as a result of reduced correspondent banking activity and reduction in a money market deposit through a deposit placement agreement. Also contributing to the decrease in interest expense for the six months ended June 30, 2025 was a $352,000, or 36.2% decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by $479,000 increase in the interest expense on Federal Home Loan Bank borrowings due to a $29.1 million, or 135.1%, increase in the average balance of Federal Home Loan Bank borrowings which increased from $21.6 million for the six months ended June 30, 2024 to $50.7 million for the six months ended June 30, 2025, and a $391,000 increase in interest expense on senior debt. The average interest rate spread increased from 1.81% for the six months ended June 30, 2024 to 2.13% for the six months ended June 30, 2025 while the net interest margin increased from 2.62% for the six months ended June 30, 2024 to 2.74% for the six months ended June 30, 2025.

    The $217,000, or 19.8%, decrease in the provision for credit losses for the six months ended June 30, 2025 over the six months ended June 30, 2024 was primarily due to a decrease in loans receivable, net, partially offset by an increase in charge-offs during the six months ended June 30, 2025.

    The $821,000, or 28.4%, increase in non-interest income for the six months ended June 30, 2025 over the comparable period in 2024 was primarily attributable to a $691,000, or 544.1%, increase in gain on sale of SBA loans, a $607,000, or 40.6%, increase in net gain on sale of loans, a $53,000, or 16.2%, increase in insurance commissions, and a $36,000, or 9.2%, increase in mortgage banking, equipment lending and title abstract fees. These increases were partially offset by a $553,000, or 118.7%, decrease in other fees and service charges, and a $20,000, or 100.0%, decrease in real estate sales commissions, net.

    The $716,000, or 6.9%, increase in non-interest expense for the six months ended June 30, 2025 over the comparable period in 2024 was primarily due to a $268,000, or 46.8%, increase in data processing expense, a $206,000, or 23.7%, increase in other expense, a $197,000, or 29.6%, increase in occupancy and equipment expense, a $100,000, or 33.7%, increase in professional fees, a $39,000, or 24.4%, increase in advertising expense, and a $29,000, or 28.7%, increase in directors’ fees and expenses. These increases were partially offset by an $80,000, or 23.8%, decrease in FDIC deposit insurance assessment, and a $43,000, or 0.6%, decrease in salaries and employee benefits expense.

    The provision for income tax from continuing operations decreased $135,000, or 38.9%, from $347,000 for the six months ended June 30, 2024 to $212,000 for the six months ended June 30, 2025 due primarily to a decrease in pre-tax income.

    Comparison of Financial Condition

    The Company’s total assets at June 30, 2025 were $670.8 million, a decrease of $14.4 million, or 2.1%, from $685.2 million at December 31, 2024. This decrease in total assets was primarily due to a $14.1 million, or 22.4%, decrease in cash and cash equivalents, an $8.3 million, or 12.9%, decrease in loans held for sale, and a $430,000, or 25.8%, decrease in investment securities available for sale. Also contributing to the decrease in assets was a $45,000, or 2.8%, decrease in premises and equipment, net, and a $24,000, or 31.2%, decrease in other intangible, net of accumulated amortization. Partially offsetting the decrease in total assets was a $7.0 million, or 1.3%, increase in loans receivable, net of allowance for credit losses, a $694,000, or 17.5%, increase in accrued interest receivable, a $477,000, or 21.5%, increase in investment in Federal Home Loan Bank stock, at cost, a $228,000, or 2.9%, increase in prepaid expenses and other assets, and a $61,000, or 1.4%, increase in bank-owned life insurance. The largest increases within the loan portfolio occurred in one-to-four family owner occupied loans which increased $10.9 million, or 42.0%, home equity loans which increased $3.0 million, or 52.1%, construction loans which increased $1.9 million, or 10.3%, and commercial real estate loans, which increased $372,000, or 0.1%. Partially offsetting these increases were multi-family residential loans which decreased $4.0, or 8.7%, commercial business loans which decreased $3.9 million, or 3.4%, and one-to-four family non-owner occupied loans which decreased $2.1 million, or 6.1%.

    Loans held for sale decreased $8.3 million, or 12.9%, from $64.3 million at December 31, 2024 to $56.0 million at June 30, 2025 as the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $55.3 million of one-to-four family residential loans during the six months ended June 30, 2025 and sold $51.2 million of loans in the secondary market. The Bank’s commercial real estate subsidiary, Oakmont Commercial, LLC, originated $19.0 million of commercial real estate loans during the six months ended June 30, 2025 and sold $28.7 million of loans in the secondary market during this same period. Additionally, the Bank originated $6.0 million of SBA loans and sold $8.7 of SBA loans in the secondary market in the same period.

    Total deposits decreased $21.1 million, or 3.8%, to $532.2 million at June 30, 2025 from $553.3 million at December 31, 2024. This decrease in deposits was primarily attributable to a decrease of $40.8 million, or 25.1%, in money market accounts, and a decrease of $22.8 million, or 47.7%, in interest bearing checking accounts as the Company exited one of its correspondent banking relationships. These decreases in deposits were partially offset by an increase of $29.6 million, or 10.5%, in certificates of deposit, an increase of $12.6 million, or 21.2%, in non-interest bearing checking accounts, and a $268,000, or 54.5%, increase in savings accounts.

    Total Federal Home Loan Bank (FHLB) borrowings increased $12.1 million, or 25.4%, to $60.0 million at June 30, 2025 from $47.9 million at December 31, 2024 as the Bank utilized a portion of its borrowing capacity for liquidity purposes.

    Senior debt, net of unamortized debt issuance costs, increased $9.5 million from none at December 31, 2024 as the Company entered into a Senior Unsecured Note Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued an aggregate of $9.75 million in aggregate principal amount of Fixed Rate Unsecured Senior Notes due March 1, 2028 (the “Senior Debt Notes”) in a private placement. The Company issued to an accredited individual investor an additional $250,000 in principal amount of the Senior Debt Notes as of March 4, 2025 for a total of $10.0 million in aggregate principal amount. The Senior Debt Notes bear interest at a fixed annual rate of 11.00%, payable semi-annually in arrears on March 1 and September 1 of each year, beginning September 1, 2025. The maturity date of the Senior Debt Notes is March 1, 2028.

    Subordinated debt, net of unamortized debt issuance costs, decreased $14.0 million, or 63.6%, to $8.0 million at June 30, 2025 from $22.0 million at December 31, 2024 as the Company used the net proceeds from the sale of the Senior Debt Notes to repay a portion of the outstanding $14.0 million aggregate principal amount of its 8.5% Fixed Rate Subordinated Notes upon their maturity on March 15, 2025.

    Total stockholders’ equity from continuing operations decreased $360,000, or 0.7%, to $52.3 million at June 30, 2025 from $52.6 million at December 31, 2024. Contributing to the decrease were dividends paid of $683,000, and purchase of treasury stock of $31,000. The decrease in stockholders’ equity was partially offset by net income for the six months ended June 30, 2025 of $189,000, amortization of stock awards and options under our stock compensation plans of $121,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $40,000, and other comprehensive income, net of $4,000.

    Non-performing loans at June 30, 2025 totaled $5.9 million, or 1.10%, of total loans receivable, net of allowance for credit losses, consisting of $4.8 million of loans on non-accrual status and $1.2 million of loans 90-days or more delinquent. Non-accrual loans consist of one one-to-four family residential owner occupied loan, nine commercial real estate loans, and 18 commercial business loans. Included in the 18 commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan, one one-to-four family residential non-owner occupied loan, and four commercial business loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the six months ended June 30, 2025, 16 commercial business loans totaling $1.0 million that were previously on non-accrual were charged-off through the allowance for credit losses. Non-performing loans at December 31, 2024 totaled $5.7 million, or 1.07%, of total loans receivable, net of allowance for credit losses, consisting of $3.9 million of loans on non-accrual status and $1.8 million of loans 90-days or more delinquent. Non-accrual loans consist of one commercial real estate loan, and ten commercial business loans. Included in the ten commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan and two commercial real estate loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the year ended December 31, 2024, 19 commercial business loans totaling $1.6 million, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses.

    Quaint Oak Bancorp, Inc., a Financial Services Company, is the parent company for the Quaint Oak Family of Companies. Quaint Oak Bank, a Pennsylvania-chartered stock savings bank and wholly-owned subsidiary of the Company, is headquartered in Southampton, Pennsylvania and conducts business through three regional offices located in the Delaware Valley, Lehigh Valley and Philadelphia markets. Quaint Oak Bank’s subsidiary companies include Quaint Oak Abstract, LLC, Quaint Oak Insurance Agency, LLC, Quaint Oak Mortgage, LLC, and Oakmont Commercial, LLC, a specialty commercial real estate financing company. All companies are multi-state operations.

    Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. Factors which could result in material variations include, but are not limited to, changes in interest rates which could affect net interest margins and net interest income, competitive factors which could affect net interest income and noninterest income, changes in demand for loans, deposits and other financial services in the Company’s market area; changes in asset quality, general economic conditions as well as other factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date on which such statements were made.

    In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loan, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.
      

    QUAINT OAK BANCORP, INC.
    Consolidated Balance Sheets
    (In Thousands)
          At June 30,       At December 31,  
          2025       2024  
          (Unaudited)       (Unaudited)  
    Assets                
      Cash and cash equivalents   $ 48,891     $ 62,989  
      Investment in interest-earning time deposits     912       912  
      Investment securities available for sale at fair value     1,236       1,666  
      Loans held for sale     56,013       64,281  
      Loans receivable, net of allowance for credit losses (2025: $6,326; 2024: $6,476)     541,690       534,693  
      Accrued interest receivable     4,655       3,961  
      Investment in Federal Home Loan Bank stock, at cost     2,691       2,214  
      Bank-owned life insurance     4,508       4,447  
      Premises and equipment, net     1,581       1,626  
      Goodwill     515       515  
      Other intangible, net of accumulated amortization     53       77  
      Prepaid expenses and other assets     8,015       7,787  
           Total Assets   $ 670,760     $ 685,168  
    Liabilities and Stockholders’ Equity                
    Liabilities                
      Non-interest bearing   $ 97,432     $ 59,783  
        Interest-bearing     434,744       493,469  
           Total deposits     532,176       553,252  
      Federal Home Loan Bank borrowings     60,000       47,855  
      Senior debt, net of unamortized costs     9,531       –  
      Subordinated debt     8,000       22,000  
      Accrued interest payable     1,026       937  
      Advances from borrowers for taxes and insurance     2,915       3,122  
      Accrued expenses and other liabilities     4,855       5,385  
              Total Liabilities     618,503       632,551  
    Total Stockholders’ Equity     52,257       52,617  
           Total Liabilities and Stockholders’ Equity   $ 670,760     $ 685,168  

    QUAINT OAK BANCORP, INC.
    Consolidated Statements of Income
    (In Thousands, except share data)

          For the Three       For the Six  
          Months Ended       Months Ended  
          June 30,       June 30,  
          2025       2024       2025       2024  
          (Unaudited)       (Unaudited)  
    Interest and Dividend Income                                
      Interest on loans, including fees   $ 9,695     $ 9,317     $ 19,218     $ 20,550  
      Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock     499       1,580       902       2,469  
        Total Interest and Dividend Income     10,194       10,897       20,120       23,019  
    Interest Expense                                
      Interest on deposits     4,598       6,168       9,328       12,154  
      Interest on FHLB borrowings     648       167       1,132       409  
      Interest on senior debt     275       –       391       –  
      Interest on subordinated debt     168       488       620       972  
        Total Interest Expense     5,689       6,823       11,471       13,535  
                                     
    Net Interest Income   $ 4,505     $ 4,074     $ 8,649     $ 9,484  
    Provision for Credit Losses – Loans     464       –       790       1,084  
    (Recovery of) Provision for Credit Losses – Unfunded Commitments     (27 )     (41 )     88       11  
       Total Provision for (Recovery of) Credit Losses     437       (41 )     878       1,095  
       Net Interest Income after Provision for Credit Losses     4,068       4,115       7,771       8,389  
                                     
    Non-Interest Income                                
      Mortgage banking, equipment lending and title abstract fees     280       183       426       390  
      Real estate sales commissions, net     –       16       –       20  
      Insurance commissions     196       176       381       328  
      Other fees and services charges     (119 )     240       (87 )     466  
      Net loan servicing income     1       2       5       3  
      Income from bank-owned life insurance     32       28       62       57  
      Net gain on sale of loans     1,046       561       2,102       1,495  
      Gain on the sale of SBA loans     511       98       818       127  
        Total Non-Interest Income     1,947       1,304       3,707       2,886  
                                     
    Non-Interest Expense                                
      Salaries and employee benefits     3,642       3,673       7,292       7,335  
      Directors’ fees and expenses     65       50       130       101  
      Occupancy and equipment     432       416       863       666  
      Data processing     439       311       841       573  
      Professional fees     174       156       397       297  
      FDIC deposit insurance assessment     135       163       256       336  
      Advertising     100       73       199       160  
      Amortization of other intangible     12       12       24       24  
      Other     534       382       1,075       869  
        Total Non-Interest Expense     5,533       5,236       11,077       10,361  
    Income from Continuing Operations Before Income Taxes   $ 482     $ 183     $ 401     $ 914  
    Income Taxes     210       83       212       347  
        Net Income from Continuing Operations   $ 272     $ 100     $ 189     $ 567  
    Income from Discontinued Operations     –       –       –       564  
    Income Taxes     –       –       –       158  
        Net Income from Discontinued Operations   $ –     $ –     $ –       406  
        Net Income   $ 272     $ 100     $ 189     $ 973  
                     
          Three Months Ended       Six Months Ended  
          June 30,       June 30,  
          2025       2024       2025       2024  
          (Unaudited)       (Unaudited)  
    Per Common Share Data:                                
     Earnings per share from continuing operations – basic   $ 0.10     $ 0.04     $ 0.07     $ 0.23  
     Earnings per share from discontinued operations – basic   $ –     $ –     $ –     $ 0.16  
     Earnings per share, net – basic   $ 0.10     $ 0.04     $ 0.07     $ 0.39  
     Average shares outstanding – basic     2,630,585       2,600,346       2,628,786       2,525,580  
     Earnings per share from continuing operations – diluted   $ 0.10     $ 0.04     $ 0.07     $ 0.23  
     Earnings per share from discontinued operations – diluted   $ –     $ –     $ –     $ 0.16  
     Earnings per share, net – diluted   $ 0.10     $ 0.04     $ 0.07     $ 0.39  
     Average shares outstanding – diluted     2,630,585       2,600,346       2,628,786       2,525,580  
     Book value per share, end of period   $ 19.83     $ 19.54     $ 19.83     $ 19.54  
     Shares outstanding, end of period     2,635,866       2,629,289       2,635,866       2,629,289  
        Three Months Ended
    June 30,    		     Six Months Ended
    June 30,    		  
        2025     2024     2025     2024  
        (Unaudited)     (Unaudited)  
    Selected Operating Ratios:                                
     Average yield on interest-earning assets     6.45 %     6.11 %     6.38 %     6.37 %
     Average rate on interest-bearing liabilities     4.26 %     4.54 %     4.25 %     4.55 %
     Average interest rate spread     2.19 %     1.57 %     2.13 %     1.81 %
     Net interest margin     2.85 %     2.28 %     2.74 %     2.62 %
     Average interest-earning assets to average interest-bearing liabilities     118.42 %     118.78 %     116.86 %     121.59 %
     Efficiency ratio     85.75 %     97.37 %     89.65 %     80.97 %
                                     
    Asset Quality Ratios (1):                                
     Non-performing loans as a percent of total loans receivable, net     1.10 %     1.46 %     1.10 %     1.46 %
     Non-performing assets as a percent of total assets     0.89 %     1.24 %     0.89 %     1.24 %
     Allowance for credit losses as a percent of non-performing loans     106.39 %     85.12 %     106.39 %     85.12 %
     Allowance for credit losses as a percent of total loans receivable, net     1.15 %     1.23 %     1.15 %     1.23 %
     Texas Ratio (2)     9.24 %     13.25 %     9.24 %     13.25 %

    (1) Asset quality ratios are end of period ratios.
    (2) Total non-performing assets divided by tangible common equity plus the allowance for loan losses.

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Bogota Financial Corp. Reports Results for the Three and Six Months Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    TEANECK, N.J., July 31, 2025 (GLOBE NEWSWIRE) — Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended June 30, 2025 of $224,000, or $0.02 per basic and diluted share, compared to a net loss of $432,000, or $0.03 per basic and diluted share, for the comparable prior year period. The Company reported net income for the six months ended June 30, 2025 of $955,000, or $0.08 per basic and diluted share, compared to a net loss of $873,000, or $0.07 per basic and diluted share, for the comparable prior year period. Income for the six months ended June 30, 2025 included a one-time death benefit from the Company’s bank-owned life insurance policy related to a former employee of approximately $543,000.

    Other Financial Highlights:

    • Total assets decreased $49.7 million, or 5.1%, to $921.8 million at June 30, 2025 from $971.5 million at December 31, 2024, due largely to a decrease in cash and cash equivalents and loans.
    • Cash and cash equivalents decreased $31.9 million, or 61.1%, to $20.3 million at June 30, 2025 from $52.2 million at December 31, 2024 due as excess funds were used to pay down borrowings.
    • Securities increased $4.3 million, or 3.1%, to $144.6 million at June 30, 2025 from $140.3 million at December 31, 2024.
    • Net loans decreased $18.5 million, or 2.6%, to $693.2 million at June 30, 2025 from $711.7 million at December 31, 2024, primarily due to decreases in residential mortgages and construction loans.
    • Total deposits at June 30, 2025 were $628.2 million, decreasing $14.0 million, or 2.2%, compared to $642.2 million at December 31, 2024, due to a $11.5 million decrease in certificates of deposit, a $2.8 million decrease in NOW accounts, a $2.3 million decrease in money market accounts and a $2.0 million decrease in noninterest bearing checking accounts. The decreases were offset by a $4.6 million increase in savings accounts. The average rate on deposits decreased 16 basis points to 3.75% for the first half of 2025 from 3.91% for the first half of 2024 due to lower interest rates and a lesser percentage of deposits consisting of higher-costing certificates of deposit.
    • Federal Home Loan Bank advances decreased $36.2 million, or 21.0% to $135.9 million at June 30, 2025 from $172.2 million as of December 31, 2024. The decrease in borrowings was largely attributable to advances that matured during the six months ended June 30, 2025.

    Kevin Pace, President and Chief Executive Officer, said, “The first half of 2025 has fallen in line with our projections. While loan demand has remained steady, we expect an uptick later this year and into early 2026. We remain dedicated to continued growth in our commercial portfolio while ensuring we limit risk to certain markets and property types. Growth in consumer and commercial deposits is another key initiative as we look to reduce cost of funds.”

    “We were able to complete our 5th stock buyback recently. Since the IPO, we have reduced our outstanding shares by 1,653,571 and improved our tangible book value per minority share from $22.04 to $29.10. We continue to focus efforts on improving shareholder value.”

    Income Statement Analysis

    Comparison of Operating Results for the Three Months Ended June 30, 2025 and June 30, 2024

    Net income increased $657,000, or 151.9%, to $224,000 for the three months ended June 30, 2025 from a net loss of $432,000 for the three months ended June 30, 2024. This increase was primarily due to an increase of $951,000 in net interest income, partially offset by a decrease of $229,000 in income tax benefit.

    Interest income increased $31,000, or 0.3%, to $10.5 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

    Interest income on cash and cash equivalents decreased $21,000, or 16.4%, to $106,000 for the three months ended June 30, 2025 from $127,000 for the three months ended June 30, 2024 due to a 164 basis point decrease in the average yield from 5.90% for the three months ended June 30, 2024 to 4.26% for the three months ended June 30, 2025 due to the lower interest rate environment. This was offset by a $1.3 million increase in the average balance to $9.9 million for the three months ended June 30, 2025 from $8.6 million for the three months ended June 30, 2024, reflecting loan and securities repayments, which were offset by a reduction of borrowings.

    Interest income on loans decreased $7,000, or 0.1%, as a seven basis point increase in the yield was offset by a $12.3 million decrease in the average balance of loans.

    Interest income on securities increased $86,000, or 4.6%, due to a 151 basis point increase in the average yield offset by a $44.4 million decrease in the average balance. The changes in the yield and average balance reflect that, in the fourth quarter of 2024, the Company sold approximately $66.0 million in amortized cost ($57.1 million in market value) of securities with a weighted average yield of 1.89% and reinvested $32.7 million of these proceeds into securities with a weighted average yield of 5.60%.

    Interest expense decreased $920,000, or 11.9%, from $7.7 million for the three months ended June 30, 2024 to $6.8 million for the three months ended June 30, 2025 due to lower average balances and costs on deposits and lower balances on borrowings. During the three months ended June 30, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank advances and brokered deposits by $186,000. At June 30, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. 

    Interest expense on interest-bearing deposits decreased $730,000, or 11.7%, to $5.5 million for the three months ended June 30, 2025 from $6.3 million for the three months ended June 30, 2024. The decrease was due to a 32 basis point decrease in the average cost of deposits to 3.67% for the three months ended June 30, 2025 from 3.99% for the three months ended June 30, 2024. The decrease in the average cost of deposits was due to the lower interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit decreased $35.4 million to $482.5 million for the three months ended June 30, 2025 from $517.9 million for the three months ended June 30, 2024 while the average balance of NOW/money market accounts and savings accounts increased $5.6 million and $4.7 million for the three months ended June 30, 2025, respectively, compared to the three months ended June 30, 2024.

    Interest expense on Federal Home Loan Bank advances decreased $190,000, or 12.9%, from $1.5 million for the three months ended June 30, 2024 to $1.3 million for the three months ended June 30, 2025. The decrease was primarily due to a decrease in the average balance of $40.0 million to $130.3 million for the three months ended June 30, 2025 from $170.3 million for the three months ended June 30, 2024. The decrease was offset by an increase in the average cost of borrowings of 47 basis points to 3.96% for the three months ended June 30, 2025 from 3.49% for the three months ended June 30, 2024 due to the new borrowings being shorter durations at higher rates.

    Net interest income increased $951,000, or 34.7%, to $3.7 million for the three months ended June 30, 2025 from $2.7 million for the three months ended June 30, 2024. The increase reflected a 48 basis point increase in our net interest rate spread to 1.20% for the three months ended June 30, 2025 from 0.72% for the three months ended June 30, 2024. Our net interest margin increased 53 basis points to 1.74% for the three months ended June 30, 2025 from 1.21% for the three months ended June 30, 2024.

    We did not record a provision for credit losses for the three months ended June 30, 2025 compared to a $35,000 provision for credit losses for the three-month period ended June 30, 2024.

    Non-interest income increased $29,000, or 9.4%, to $332,000 for the three months ended June 30, 2025 from $303,000 for the three months ended June 30, 2024. Bank-owned life insurance income increased $13,000, or 6.0%, due to higher balances during 2025, which was augmented by an increase in the gain on sale of loans of $9,000 and an increase in fee and service charge income of $11,000. 

    For the three months ended June 30, 2025, non-interest expense increased $129,000, or 3.5%, over the comparable 2024 period. Professional fees increased $112,000, or 43.2%, due to an increase in audit and consulting fees. Occupancy and equipment costs increased $274,000, or 74.6%, as a result of the lease-buyback transaction completed in the fourth quarter of 2024, which resulted in increased lease expense going forward. These were offset by a $83,000, or 3.9%, reduction in salaries and employee benefits, which decreased due to lower headcount, a $99,000, or 86.1%, decrease in advertising expenses and a $78,000, or 29.4%, decrease in other non-interest expense.

    Income tax expense increased $229,000, or 151.9%, to a benefit of $53,000 for the three months ended June 30, 2025 from a $281,000 benefit for the three months ended June 30, 2024. The decrease was due to an increase of $886,000 in net income. 

    Comparison of Operating Results for the Six Months Ended June 30, 2025 and June 30, 2024

    Net income increased by $1.8 million, or 209.4%, to a net income of $955,000 for the six months ended June 30, 2025 from a net loss of $873,000 for the six months ended June 30, 2024. This increase was primarily due to an increase of $1.9 million in net interest income, partially offset by an increase of $488,000 in income tax expense. Income for the six months ended June 30, 2025 included a one-time death benefit of approximately $543,000 from the Company’s bank-owned life insurance policy related to a former employee.

    Interest income increased $893,000, or 4.4%, from $20.5 million for the six months ended June 30, 2024 to $21.4 million for the six months ended June 30, 2025 due to higher yields on interest-earning assets and a decrease in the average balance of interest-earning assets. 

    Interest income on cash and cash equivalents increased $95,000, or 34.4%, to $371,000 for the six months ended June 30, 2025 from $276,000 for the six months ended June 30, 2024 due to a $4.8 million increase in the average balance to $13.3 million for the six months ended June 30, 2025 from $8.5 million for the six months ended June 30, 2024. This was partially offset by 92 basis point decrease in the average yield from 6.50% for the six months ended June 30, 2024 to 5.58% for the six months ended June 30, 2025.

    Interest income on loans increased $387,000, or 2.3%, to $16.9 million for the six months ended June 30, 2025 compared to $16.5 million for the six months ended June 30, 2024 due primarily to a 18 basis point increase in the average yield from 4.64% for the six months ended June 30, 2024 to 4.82% for the six months ended June 30, 2025, offset by a $10.3 million decrease in the average balance to $701.4 million for the six months ended June 30, 2025 from $711.7 million for the six months ended June 30, 2024.

    Interest income on securities increased $390,000, or 11.5%, to $3.8 million for the six months ended June 30, 2025 from $3.4 million for the six months ended June 30, 2024 primarily due to a 143 basis point increase in the average yield from 3.85% for the six months ended June 30, 2024 to 5.28% for the six months ended June 30, 2025, which was offset by a $32.9 million decrease in the average balance to $143.2 million for the six months ended June 30, 2025 from $176.1 million for the six months ended June 30, 2024. The decrease in the average balance and the increase in the yield was as a result of the balance sheet restructuring undertaken in the fourth quarter of 2024, where certain lower-yielding securities were sold, a portion of the proceeds were reinvested into higher-yielding securities and all remaining held to maturity securities were reclassified as available for sale.

    Interest expense decreased $1.0 million, or 6.6%, from $15.1 million for the six months ended June 30, 2024 to $14.1 million for the six months ended June 30, 2025 due to lower average balances on certificates of deposit and borrowings and a lower rate paid on certificates of deposit. During the six months ended June 30, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank advances and brokered deposits by $363,000. At June 30, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value. 

    Interest expense on interest-bearing deposits decreased $938,000, or 7.7%, to $11.3 million for the six months ended June 30, 2025 from $12.2 million for the six months ended June 30, 2024. The decrease was due to a 16 basis point decrease in the average cost of deposits to 3.75% for the six months ended June 30, 2025 from 3.91% for the six months ended June 30, 2024. The decrease in the average cost was driven by a 21 basis point decrease in the average cost of certificates of deposit to 4.13% for the six months ended June 30, 2025 from 4.34% for the six months ended June 30, 2024. The decrease in the average cost of deposits was due to the lower interest rate environment and a change in the composition of the deposit portfolio. The average balances of certificates of deposit decreased $33.8 million to $483.4 million for the six months ended June 30, 2025 from $517.2 million for the six months ended June 30, 2024 while average NOW/money market accounts and savings accounts increased $7.7 million and $3.6 million for the six months ended June 30, 2025, respectively, compared to the six months ended June 30, 2024.

    Interest expense on Federal Home Loan Bank advances decreased $62,000, or 2.1%. The decrease was primarily due to a decrease in the average balance of $16.2 million to $144.1 million for the six months ended June 30, 2025 from $160.3 million for the six months ended June 30, 2024. The decrease was offset by an increase in the average cost of borrowings of 33 basis points to 3.99% for the six months ended June 30, 2025 from 3.66% for the six months ended June 30, 2024 due to the new borrowings being for shorter durations at higher rates. 

    Net interest income increased $1.9 million, or 35.1%, to $7.3 million for the six months ended June 30, 2025 from $5.4 million for the six months ended June 30, 2024. The increase reflected a 47 basis point increase in our net interest rate spread to 1.15% for the six months ended June 30, 2025 from 0.68% for the six months ended June 30, 2024. Our net interest margin increased 50 basis points to 1.70% for the six months ended June 30, 2025 from 1.20% for the six months ended June 30, 2024.

    We recorded a $80,000 recovery of credit losses for the six months ended June 30, 2025 compared to a $70,000 provision for credit losses for the six-month period ended June 30, 2024. The decrease in the allowance for credit losses was due to the decrease in loans and held-to-maturity securities.

    Non-interest income increased $619,000, or 102.7%, to $1.2 million for the six months ended June 30, 2025 from $602,000 for the six months ended June 30, 2024. Bank-owned life insurance income increased $564,000, or 132.0%, due to a death benefit related to a former employee and higher balances during 2025. In addition to the death benefit, gains on sale of loans also increased by $38,000 when compared to the comparable period in 2024.

    For the six months ended June 30, 2025, non-interest expense increased $345,000, or 4.7%, over the comparable 2024 period. Professional fees increased $114,000, or 25.0%, due to higher audit and consulting expense. Occupancy and equipment costs increased $574,000, or 77.8%, as a result of the lease-buyback transaction completed in the fourth quarter of 2024, which resulted in increased lease expense going forward. These were offset by a $162,000, or 3.8%, reduction in salaries and employee benefit, which decreased due to lower headcount, advertising expense, which decreased by $104,000, or 46.0%, and other non-interest expense, which decreased $102,000, or 20.0%.

    Income tax expense increased $488,000, or 85.8%, to a benefit of $81,000 for the six months ended June 30, 2025 from a $568,000 benefit for the six months ended June 30, 2024. The decrease was due to an increase of $2.3 million in income. 

    Balance Sheet Analysis

    Total assets were $921.8 million at June 30, 2025, representing a decrease of $49.7 million, or 5.1%, from December 31, 2024. Cash and cash equivalents decreased $31.9 million during the period primarily due to the paydown of borrowings. Net loans decreased $18.5 million, or 2.6%, due to $32.0 million in repayments, partially offset by new production of $15.5 million. This resulted in a $14.5 million decrease in the balance of residential loans and a $17.4 million decrease in construction loans, offset by a $7.3 million and $8.0 million of commercial real estate and multi-family loans, respectively. Due to the interest rate environment, we have seen a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities available for sale increased $4.3 million or 3.1%, due to new purchases of mortgage-backed securities. 

    Delinquent loans increased $6.1 million to $20.4 million, or 2.94% of total loans, at June 30, 2025, compared to $14.3 million at December 31, 2024. The increase was primarily due to one commercial real estate loan with a balance of $7.1 million, which is considered well-secured, accruing and in the process of collection. During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.50% of total assets at June 30, 2025. No loans were charged-off during the three or six months ended June 30, 2025 or June 30, 2024. The Company’s allowance for credit losses related to loans was 0.37% of total loans and 18.69% of non-performing loans at June 30, 2025 compared to 0.37% of total loans and 18.77% of non-performing loans at December 31, 2024. The Bank does not have any exposure to commercial real estate loans secured by office space. At June 30, 2025, the Company had no allowance for credit losses related to held-to-maturity securities, as the Company did not hold any held-to-maturity securities at June 30, 2025 or at December 31, 2024. 

    Total liabilities decreased $50.8 million, or 6.1%, to $783.4 million mainly due to a $13.9 million decrease in deposits and by a $36.2 million decrease in borrowings. Total deposits decreased $14.0 million, or 2.2%, to $628.2 million at June 30, 2025 from $642.2 million at December 31, 2024. The decrease in deposits reflected a decrease in certificate of deposit accounts, which decreased by $11.5 million to $481.8 million from $493.3 million at December 31, 2024, a decrease in NOW deposit accounts, which decreased by $2.8 million to $52.6 million from $55.4 million at December 31, 2024, a decrease in money market deposit accounts, which decreased by $2.3 million to $11.7 million from $14.0 million at December 31, 2024, and by a decrease in noninterest bearing demand accounts, which decreased by $2.0 million from $32.7 million at December 31, 2024 to $30.7 million at June 30, 2025. At June 30, 2025, brokered deposits were $108.0 million or 17.2% of deposits and municipal deposits were $25.4 million or 4.1% of deposits. At June 30, 2025, uninsured deposits represented 9.1% of the Bank’s total deposits. Federal Home Loan Bank advances decreased $36.2 million, or 21.0%, due to paydown of existing borrowings. Short-term borrowings increased $10.5 million, or 35.6%, to $40.0 million at June 30, 2025 from $29.5 million at December 31, 2024, while long-term borrowings decreased $46.7 million, or 32.8%, to $95.9 million at June 30, 2025 from $142.7 million at December 31, 2024. Total borrowing capacity at the Federal Home Loan Bank is $241.3 million of which $139.0 million has been advanced.

    Total stockholders’ equity increased $1.2 million to $138.4 million, primarily due to net income of $955,000. At June 30, 2025, the Company’s ratio of average stockholders’ equity-to-total assets was 14.96%, compared to 13.99% at December 31, 2024.

    About Bogota Financial Corp.

    Bogota Financial Corp. is a Maryland corporation organized as the mid-tier holding company of Bogota Savings Bank and is the majority-owned subsidiary of Bogota Financial, MHC. Bogota Savings Bank is a New Jersey chartered stock savings bank that has served the banking needs of its customers in northern and central New Jersey since 1893. It operates from seven offices located in Bogota, Hasbrouck Heights, Upper Saddle River, Newark, Oak Ridge, Parsippany and Teaneck, New Jersey and operates a loan production office in Spring Lake, New Jersey.

    Forward-Looking Statements

    This press release contains certain forward-looking statements about the Company and the Bank. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include increased competitive pressures, changes in the interest rate environment, inflation, general economic conditions or conditions within the securities markets, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, real estate market values in the Bank’s lending area, changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; the availability of low-cost funding; our continued reliance on brokered and municipal deposits; demand for loans in our market area; changes in the quality of our loan and security portfolios, economic assumptions or changes in our methodology, either of which may impact our allowance for credit losses calculation, increases in non-performing and classified loans, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees and legislative, accounting and regulatory changes that could adversely affect the business in which the Company and the Bank are engaged.

    The Company undertakes no obligation to revise these forward-looking statements or to reflect events or circumstances after the date of this press release.

    BOGOTA FINANCIAL CORP.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (unaudited)
                 
        As of     As of  
        June 30,
    2025    		     December 31,
    2024    		  
    Assets                
    Cash and due from banks   $ 9,471,838     $ 18,020,527  
    Interest-bearing deposits in other banks     10,861,717       34,211,681  
    Cash and cash equivalents     20,333,555       52,232,208  
    Securities available for sale, at fair value     144,602,468       140,307,447  
    Loans, net of allowance for credit losses of $2,590,950 and $2,620,949, respectively     693,211,303       711,716,236  
    Premises and equipment, net     4,561,786       4,727,302  
    Federal Home Loan Bank (FHLB) stock and other restricted securities     7,204,900       8,803,000  
    Accrued interest receivable     4,225,196       4,232,563  
    Core deposit intangibles     129,255       152,893  
    Bank-owned life insurance     31,329,401       31,859,604  
    Right of use asset     10,506,417       10,776,596  
    Other assets     5,730,379       6,682,035  
    Total Assets   $ 921,834,660     $ 971,489,884  
    Liabilities and Equity                
    Non-interest bearing deposits   $ 30,696,810     $ 32,681,963  
    Interest bearing deposits     597,532,976       609,506,079  
    Total deposits     628,229,786       642,188,042  
    FHLB advances-short term     40,000,000       29,500,000  
    FHLB advances-long term     95,944,439       142,673,182  
    Advance payments by borrowers for taxes and insurance     3,223,479       2,809,205  
    Lease liabilities     10,579,107       10,780,363  
    Other liabilities     5,418,148       6,249,932  
    Total liabilities     783,394,959       834,200,724  
                     
    Stockholders’ Equity                
    Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at June 30, 2025 and December 31, 2024     —       —  
    Common stock $0.01 par value, 30,000,000 shares authorized, 13,008,389 issued and outstanding at June 30, 2025 and 13,059,175 at December 31, 2024     130,083       130,592  
    Additional paid-in capital     55,260,550       55,269,962  
    Retained earnings     90,961,990       90,006,648  
    Unearned ESOP shares (369,670 shares at June 30, 2025 and 382,933 shares at December 31, 2024)     (4,369,992 )     (4,520,594 )
    Accumulated other comprehensive loss     (3,542,930 )     (3,597,448 )
    Total stockholders’ equity     138,439,701       137,289,160  
    Total liabilities and stockholders’ equity   $ 921,834,660     $ 971,489,884  
    BOGOTA FINANCIAL CORP.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (unaudited)
                 
        Three Months Ended     Six Months Ended  
        June 30,     June 30,  
        2025     2024     2025     2024  
    Interest income                                
    Loans, including fees   $ 8,291,923     $ 8,299,404     $ 16,895,052     $ 16,506,796  
    Securities                                
    Taxable     1,943,360       1,846,717       3,773,754       3,363,060  
    Tax-exempt     2,894       13,124       5,789       26,272  
    Other interest-earning assets     266,987       314,964       754,158       639,268  
    Total interest income     10,505,164       10,474,209       21,428,753       20,535,396  
    Interest expense                                
    Deposits     5,524,138       6,253,895       11,286,462       12,223,776  
    FHLB advances     1,286,421       1,476,600       2,854,448       2,916,669  
    Total interest expense     6,810,559       7,730,495       14,140,910       15,140,445  
    Net interest income     3,694,605       2,743,714       7,287,843       5,394,951  
    (Recovery) provision for credit losses     —       35,000       (80,000 )     70,000  
    Net interest income after (recovery) provision for credit losses     3,694,605       2,708,714       7,367,843       5,324,951  
    Non-interest income                                
    Fees and service charges     59,755       49,203       115,574       107,790  
    Gain on sale of loans     8,768       —       37,830       —  
    Bank-owned life insurance     228,392       215,056       990,623       427,015  
    Other     34,795       38,945       77,055       67,477  
    Total non-interest income     331,710       303,204       1,221,082       602,282  
    Non-interest expense                                
    Salaries and employee benefits     2,059,942       2,143,388       4,140,141       4,301,953  
    Occupancy and equipment     640,444       366,908       1,311,913       738,025  
    FDIC insurance assessment     103,934       106,716       210,520       207,313  
    Data processing     305,034       318,520       620,731       622,125  
    Advertising     16,000       115,100       121,500       225,200  
    Director fees     170,812       151,549       330,256       307,249  
    Professional fees     372,364       260,112       571,094       456,897  
    Other     185,972       263,490       408,017       510,112  
    Total non-interest expense     3,854,502       3,725,783       7,714,172       7,368,874  
    Income (loss) before income taxes     171,813       (713,865 )     874,753       (1,441,641 )
    Income tax benefit     (52,582 )     (281,386 )     (80,589 )     (568,182 )
    Net income (loss)   $ 224,395     $ (432,479 )   $ 955,342     $ (873,459 )
    Earnings (loss) per Share – basic   $ 0.02     $ (0.03 )   $ 0.08     $ (0.07 )
    Earnings (loss) per Share – diluted   $ 0.02     $ (0.03 )   $ 0.08     $ (0.07 )
    Weighted average shares outstanding – basic     12,635,990       12,803,925       12,642,744       12,828,428  
    Weighted average shares outstanding – diluted     12,641,179       12,803,925       12,644,701       12,828,428  
    BOGOTA FINANCIAL CORP.
    SELECTED RATIOS
    (unaudited)
                 
        At or For the Three Months     At or for the Six Months  
        Ended June 30,     Ended June 30,  
        2025     2024     2025     2024  
    Performance Ratios (1):                                
    Return (loss) on average assets (2)     0.02 %     (0.18 )%     0.10 %     (0.18 )%
    Return (loss) on average equity (3)     0.16 %     (1.32 )%     0.10 %     (1.32 )%
    Interest rate spread (4)     1.20 %     0.72 %     1.15 %     0.68 %
    Net interest margin (5)     1.74 %     1.21 %     1.70 %     1.20 %
    Efficiency ratio (6)     95.73 %     122.28 %     90.66 %     122.87 %
    Average interest-earning assets to average interest-bearing liabilities     116.49 %     114.12 %     115.24 %     114.56 %
    Net loans to deposits     110.34 %     109.02 %     110.34 %     109.02 %
    Average equity to average assets (7)     15.02 %     13.48 %     14.88 %     14.71 %
    Capital Ratios:                                
    Tier 1 capital to average assets                     15.32 %     13.52 %
    Asset Quality Ratios:                                
    Allowance for credit losses as a percent of total loans                     0.37 %     0.39 %
    Allowance for credit losses as a percent of non-performing loans                     18.69 %     21.20 %
    Net charge-offs to average outstanding loans during the period                     0.00 %     0.00 %
    Non-performing loans as a percent of total loans                     2.00 %     1.82 %
    Non-performing assets as a percent of total assets                     1.50 %     1.33 %
    (1 ) Certain performance ratios for the three and six months ended June 30, 2025 and 2024 are annualized.
    (2 ) Represents net income (loss) divided by average total assets.
    (3 ) Represents net income (loss) divided by average stockholders’ equity.
    (4 ) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2025 and 2024.
    (5 ) Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2025 and 2024.
    (6 ) Represents non-interest expenses divided by the sum of net interest income and non-interest income.
    (7 ) Represents average stockholders’ equity divided by average total assets.


    LOANS

    Loans are summarized as follows at June 30, 2025 and December 31, 2024:

        June 30,     December 31,  
        2025     2024  
        (unaudited)  
    Real estate:                
    Residential First Mortgage   $ 458,212,962     $ 472,747,542  
    Commercial Real Estate     125,349,129       118,008,866  
    Multi-Family Real Estate     82,118,178       74,152,418  
    Construction     25,766,387       43,183,657  
    Commercial and Industrial     4,282,269       6,163,747  
    Consumer     73,328       80,955  
    Total loans     695,802,253       714,337,185  
    Allowance for credit losses     (2,590,950 )     (2,620,949 )
    Net loans   $ 693,211,303     $ 711,716,236  

    The following tables set forth the distribution of total deposit accounts, by account type, at the dates indicated:

        At June 30,     At December 31,  
        2025     2024  
        Amount     Percent     Average Rate     Amount     Percent     Average Rate  
                                                     
        (unaudited)  
    Noninterest bearing demand accounts   $ 30,696,810       4.89 %     — %   $ 32,681,963       5.09 %     — %
    NOW accounts     52,611,377       8.37 %     2.64       55,378,051       8.62 %     2.53  
    Money market accounts     11,677,716       1.86 %     0.48       13,996,460       2.18 %     0.58  
    Savings accounts     51,419,664       8.18 %     2.02       46,851,793       7.30 %     1.90  
    Certificates of deposit     481,824,219       76.70 %     3.88       493,279,775       76.81 %     4.37  
    Total   $ 628,229,786       100.00 %     3.37 %   $ 642,188,042       100.00 %     3.42 %


    Average Balance Sheets and Related Yields and Rates

    The following tables present information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances have been calculated using daily balances. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material.

        Three Months Ended June 30,  
        2025     2024  
        Average Balance     Interest and Dividends     Yield/ Cost     Average Balance     Interest and Dividends     Yield/ Cost  
        (Dollars in thousands)  
    Assets:   (unaudited)  
    Cash and cash equivalents   $ 9,976     $ 106       4.26 %   $ 8,644     $ 127       5.90 %
    Loans     697,792       8,292       4.77 %     710,058       8,299       4.70 %
    Securities     141,141       1,946       5.52 %     185,497       1,860       4.01 %
    Other interest-earning assets     7,085       161       9.09 %     8,689       188       8.66 %
    Total interest-earning assets     855,994       10,505       4.92 %     912,888       10,474       4.61 %
                                                     
    Non-interest-earning assets     65,094                       58,933                  
    Total assets   $ 921,088                     $ 971,821                  
    Liabilities and equity:                                                
    NOW and money market accounts   $ 73,261     $ 447       2.44 %   $ 67,687     $ 329       1.96 %
    Savings accounts     48,751       249       2.05 %     44,093       205       1.87 %
    Certificates of deposit (1)     482,516       4,828       4.01 %     517,882       5,720       4.44 %
    Total interest-bearing deposits     604,528       5,524       3.67 %     629,662       6,254       3.99 %
                                                     
    Federal Home Loan Bank advances (1)     130,277       1,286       3.96 %     170,295       1,476       3.49 %
    Total interest-bearing liabilities     734,805       6,810       3.72 %     799,957       7,730       3.89 %
    Non-interest-bearing deposits     32,076                       39,162                  
    Other non-interest-bearing liabilities     15,894                       1,654                  
    Total liabilities     782,775                       840,773                  
                                                     
    Total equity     138,313                       131,048                  
    Total liabilities and equity   $ 921,088                     $ 971,821                  
    Net interest income           $ 3,695                     $ 2,744          
    Interest rate spread (2)                     1.20 %                     0.72 %
    Net interest margin (3)                     1.74 %                     1.21 %
    Average interest-earning assets to average interest-bearing liabilities     116.49 %                     114.12 %                
    1. Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended June 30, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $186,000 and $461,000, respectively.
    2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
    3. Net interest margin represents net interest income divided by average total interest-earning assets.
        Six Months Ended June 30,  
        2025     2024  
        Average Balance     Interest and Dividends     Yield/ Cost     Average Balance     Interest and Dividends     Yield/ Cost  
        (Dollars in thousands)  
    Assets:                                                
    Cash and cash equivalents   $ 13,270     $ 371       5.58 %   $ 8,505     $ 276       6.50 %
    Loans     701,423       16,894       4.82 %     711,744       16,507       4.64 %
    Securities     143,199       3,779       5.28 %     176,081       3,389       3.85 %
    Other interest-earning assets     7,692       384       9.97 %     8,395       363       8.65 %
    Total interest-earning assets     865,584       21,428       4.95 %     904,725       20,535       4.54 %
    Non-interest-earning assets     61,323                       59,313                  
    Total assets   $ 926,907                     $ 964,038                  
    Liabilities and equity:                                                
    NOW and money market accounts   $ 76,313     $ 904       2.39 %   $ 68,569     $ 664       1.95 %
    Savings accounts     47,299       475       2.02 %     43,720       403       1.85 %
    Certificates of deposit (1)     483,380       9,907       4.13 %     517,189       11,157       4.34 %
    Total interest-bearing deposits     606,992       11,286       3.75 %     629,478       12,224       3.91 %
    Federal Home Loan Bank advances (1)     144,120       2,854       3.99 %     160,282       2,916       3.66 %
    Total interest-bearing liabilities     751,112       14,140       3.80 %     789,760       15,140       3.86 %
    Non-interest-bearing deposits     32,425                       38,425                  
    Other non-interest-bearing liabilities     5,420                       2,763                  
    Total liabilities     788,957                       830,948                  
    Total equity     137,950                       133,090                  
    Total liabilities and equity   $ 926,907                     $ 964,038                  
    Net interest income           $ 7,288                     $ 5,395          
    Interest rate spread (2)                     1.15 %                     0.68 %
    Net interest margin (3)                     1.70 %                     1.20 %
    Average interest-earning assets to average interest-bearing liabilities     115.24 %                     114.56 %                
    1. Cash flow hedges are used to manage interest rate risk. During the six months ended June 30, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $363,000 and $749,000, respectively.
       
    2. Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
       
    3. Net interest margin represents net interest income divided by average total interest-earning assets


    Rate/Volume Analysis

    The following table sets forth the effects of changing rates and volumes on net interest income. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume that cannot be segregated have been allocated proportionally based on the changes due to rate and the changes due to volume.

        Three Months Ended June 30, 2025     Six Months Ended June 30, 2025  
        Compared to     Compared to  
        Three Months Ended June 30, 2024     Six Months Ended June 30, 2024  
        Increase (Decrease) Due to     Increase (Decrease) Due to  
        Volume     Rate     Net     Volume     Rate     Net  
        (In thousands)  
    Interest income:   (unaudited)  
    Cash and cash equivalents   $ 94     $ (114 )   $ (21 )   $ 201     $ (106 )   $ 95  
    Loans receivable     (534 )     526       (7 )     (592 )     979       387  
    Securities     (2,142 )     2,228       86       (1,554 )     1,944       390  
    Other interest earning assets     (80 )     53       (27 )     (71 )     92       21  
    Total interest-earning assets     (2,662 )     2,693       31       (2,017 )     2,910       893  
                                                     
    Interest expense:                                                
    NOW and money market accounts     29       89       118       79       161       240  
    Savings accounts     23       21       44       34       38       72  
    Certificates of deposit     (368 )     (524 )     (892 )     (718 )     (532 )     (1,250 )
    Federal Home Loan Bank advances     (1,138 )     948       (190 )     (591 )     529       (62 )
    Total interest-bearing liabilities     (1,454 )     534       (920 )     (1,197 )     197       (1,000 )
    Net (decrease) increase in net interest income   $ (1,208 )   $ 2,159     $ 951     $ (820 )   $ 2,713     $ 1,893  

    Contacts
    Kevin Pace – President & CEO, 201-862-0660 ext. 1110

    The MIL Network –

    August 5, 2025

  • MIL-OSI: Credit Agricole Sa: Results for the second quarter and first half 2025 – The Group is accelerating its development

    Source: GlobeNewswire (MIL-OSI)

    THE GROUP IS ACCELERATING ITS DEVELOPMENT  
               
      CRÉDIT AGRICOLE S.A. CRÉDIT AGRICOLE GROUP    
    €m Q2 2025 Change Q2/Q2 Q2 2025 Change Q2/Q2  
    Revenues 7,006 +3.1% 9,808 +3.2%  
    Expenses -3,700 +2.2% -5,872 +3.2%  
    Gross Operating Income 3,306 +4.1% 3,936 +3.1%  
    Cost of risk -441 +4.2% -840 -3.7%  
    Net income group share 2,390 +30.7% 2,638 +30.1%  
    C/I ratio 52.8% -0.5 pp 59.9% +0.0 pp  
    STRONG ACTIVITY IN ALL BUSINESS LINES

    • Confirmation of the upturn of loan production in France, international credit activity still strong and consumer finance at a higher level
    • Record net inflows in life insurance, high net inflows in asset management (driven by the medium/long-term and JVs); in insurance, revenues at a higher level driven by all activities
    • CIB: record half year and strong quarter

    CONTINUOUS FLOW OF STRATEGIC OPERATIONS

    • Gradual achievement of synergies in the ongoing integrations: progress of around 60% for RBC IS Europe and 25% for Degroof Petercam in Belgium
    • Transactions concluded this quarter: launch of partnership with Victory Capital in the United States, increased stake in Banco BPM in Italy, acquisition of Merca Leasing in Germany and Petit-fils and Comwatt in France and acquisition of Santander’s 30.5% stake in CACEIS1
    • New projects initiated: Acquisitions of Banque Thaler in Switzerland, Comwatt and Milleis in France, partnership with the Crelan Group in Belgium and development of Indosuez Wealth Management in Monaco

    HALF-YEARLY AND QUARTERLY RESULTS AT THEIR HIGHEST

    • High profitability (Return on Tangible Equity of 16.6%), driven by high and growing revenues, a low cost/income ratio (53.9% in the first half) and a stable cost of risk (34 basis points on outstandings)
    • Results especially benefiting from the capital gain related to the deconsolidation of Amundi US

    HIGH SOLVENCY RATIOS

    • Crédit Agricole S.A.’s phased-in CET1 at 11.9% and CA Group phased-in CET1 at 17.6%

    CONTINUOUS SUPPORT FOR TRANSITIONS, WITH AN AWARD FROM EUROMONEY

    • Continued withdrawal from fossil energies and reallocation to low-carbon energy sources
    • Support for the transition of households and corporates
    • Crédit Agricole named World’s Best Bank for Sustainable Finance at the Euromoney Awards for Excellence 2025

    PRESENTATION OF THE MEDIUM-TERM PLAN ON 18 NOVEMBER 2025
     

    Dominique Lefebvre,
    Chairman of SAS Rue La Boétie and Chairman of the Crédit Agricole S.A. Board of Directors

    “The high-level results we are publishing this quarter serve our usefulness to the economy and European sovereignty.” ‍
     
     

    Olivier Gavalda,
    Chief Executive Officer of Crédit Agricole S.A.

    “With this high level of results, we are confident in Crédit Agricole S.A.’s ability to achieve a net profit in 2025 higher than 2024, excluding the corporate tax surcharge. These results constitute a solid foundation for Crédit Agricole S.A.’s medium-term strategic plan, which will be unveiled on November 18, 2025.”

    		  

    This press release comments on the results of Crédit Agricole S.A. and those of Crédit Agricole Group, which comprises the Crédit Agricole S.A. entities and the Crédit Agricole Regional Banks, which own 63.5% of Crédit Agricole S.A.

    All financial data are now presented stated for Crédit Agricole Group, Crédit Agricole S.A. and the business lines results, both for the income statement and for the profitability ratios.

    Crédit Agricole Group

    Group activity

    The Group’s commercial activity during the quarter continued at a steady pace across all business lines, with a good level of customer capture. In the second quarter of 2025, the Group recorded +493,000 new customers in retail banking. More specifically, over the year, the Group gained 391,000 new customers for Retail Banking in France and 102,000 new International Retail Banking customers (Italy and Poland). At 30 June 2025, in retail banking, on-balance sheet deposits totalled €838 billion, up +0.6% year-on-year in France and Italy (+0.7% for Regional Banks and LCL and +0.3% in Italy). Outstanding loans totalled €885 billion, up +1.4% year-on-year in France and Italy (+1.4% for Regional Banks and LCL and +1.6% in Italy). Housing loan production continued its upturn in France compared to the low point observed at the start of 2024, with an increase of +28% for Regional Banks and +24% for LCL compared to the second quarter of 2024. For CA Italia, loan production was down -8.1% compared to the high second quarter of 2024. The property and casualty insurance equipment rate (2) rose to 44.2% for the Regional Banks (+0.7 percentage points compared to the second quarter of 2024), 28.4% for LCL (+0.6 percentage point) and 20.6% for CA Italia (+0.9 percentage point).

    In Asset Management, quarterly inflows were very high at +€20 billion, fuelled by medium/long-term assets (+€11 billion) and JVs (+€10 billion). In insurance, savings/retirement gross inflows rose to a record €9.9 billion over the quarter (+22% year-on-year), with the unit-linked rate in production staying at a high 32%. Net inflows were at a record level at +€4.2 billion, spread evenly between euro-denominated funds and unit-linked contracts. The strong performance in property and casualty insurance was driven by price changes and portfolio growth (16.9 million contracts at end-June 2025, +3% year-on-year). Assets under management stood at €2,905 billion, up +5.2% year on year for the three business segments: in asset management at €2,267 billion (+5.2% year on year) despite a negative scope effect linked to the deconsolidation of Amundi US and the integration of Victory, in life insurance at €359 billion (+6.4% year on year) and in wealth management (Indosuez Wealth Management and LCL Private Banking) at €279 billion (+3.7% year on year).

    Business in the SFS division showed strong activity. At CAPFM, consumer finance outstandings increased to €121.0 billion, up +4.5% compared with end-June 2024, with car loans representing 53% (3) of total outstandings, and new loan production up by +2.4% compared with the second quarter of 2024 (+12.4% compared to the first quarter of 2025), driven by traditional consumer finance, but with the automotive market remaining complex in Europe and China. Regarding Crédit Agricole Leasing & Factoring (CAL&F), lease financing outstandings are up +5.0% compared to June 2024 to €20.8 billion; however, production is down -19.4% compared to the second quarter of 2024, mainly in France. Factoring activity remains very strong, with a production of +26.6% year on year.

    Momentum is strong in Large Customers, which again posted record revenues for the half-year in Corporate and Investment Banking and a high-level quarter. Capital markets and investment banking showed a high level of revenues driven by capital markets, especially from trading and primary credit activities, which partially offset the drop in revenues from structured equity activities. Financing activities are fuelled by structured financing with strong momentum in the renewable energy sector, and by CLF activities, driven by the acquisition financing sector. Lastly, Asset Servicing recorded a high level of assets under custody of €5,526 billion and assets under administration of €3,468 billion (+11% and +1.2%, respectively, compared with the end of June 2024), with good sales momentum and positive market effects over the quarter.

    Continued support for the energy transition

    The Group is continuing the mass roll-out of financing and investment to promote the transition. Thus, the exposure of Crédit Agricole Group (4) has increased 2.4 fold between 2020 and 2024 with €26.3 billion at 31 December 2024. Investments in low-carbon energy (5) increased 2.8 fold between end-2020 and June 2025, and represented €6.1 billion at 30 June 2025.

    At the same time, as a universal bank, Crédit Agricole is supporting the transition of all its customers. Thus, outstandings related to the environmental transition (6) amounted to €111 billion at 31 March 2025, including €83 billion for energy-efficient property and €6 billion for “clean” transport and mobility.

    In addition, the Group is continuing to move away from carbon energy financing; the Group’s phased withdrawal from financing fossil fuel extraction resulted in a -40% decrease in exposure in the period 2020 to 2024, equating to €5.6 billion at 31 December 2024. 

    In the field of sustainable finance, Crédit Agricole was named World’s Best Bank for Sustainable Finance at the Euromoney Awards for Excellence 2025. 

    Group results

    In the second quarter of 2025, Crédit Agricole Group’s net income Group share came to €2,638 million, up +30.1% compared to the second quarter of 2024, and up +14.8% excluding capital gains related to the deconsolidation of Amundi US.

    In the second quarter of 2025, revenues amounted to €9,808 million, up +3.2% compared to the second quarter of 2024. Operating expenses were up +3.2% in the second quarter of 2025, totalling -€5,872 million. Overall, Credit Agricole Group saw its cost/income ratio reach 59.9% in the second quarter of 2025, stable compared to the second quarter of 2024. As a result, the gross operating income stood at €3,936 million, up +3.1% compared to the second quarter of 2024.

    The cost of credit risk stood at -€840 million, a decrease of -3.7% compared to the second quarter of 2024. It includes a reversal of +€24 million on performing loans (stage 1 and 2) linked to reversals for model updates which offset the updating of macroeconomic scenarios and the migration to default of some loans. The cost of proven risk shows an addition to provisions of -€845 million (stage 3). There was also an addition of -€18 million for other risks. The provisioning levels were determined by taking into account several weighted economic scenarios and by applying some flat-rate adjustments on sensitive portfolios. The weighted economic scenarios for the second quarter were updated, with a central scenario (French GDP at +0.8% in 2025, +1.4% in 2026) an unfavourable scenario (French GDP at +0.0% in 2025 and +0.6% in 2026) and an adverse scenario (French GDP at -1.9% in 2025 and -1.4% in 2026). The cost of risk/outstandings (7)reached 27 basis points over a four rolling quarter period and 28 basis points on an annualised quarterly basis (8).

    Pre-tax income stood at €3,604 million, a year-on-year increase of +19.6% compared to second quarter 2024. This includes the contribution from equity-accounted entities of €56 million (down -24.0%) and net income on other assets, which came to +€452 million this quarter, due to a capital gain of €453 million on the deconsolidation of Amundi US. The tax charge was -€615 million, down +€147 million, or -19.3% over the period.

    Net income before non-controlling interests was up +32.8% to reach €2,990 million. Non-controlling interests increased by +57%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.

    Net income Group share in first half 2025 amounted to €4,803 million, compared with €4,412 million in first half 2024, an increase of +8.9%.

    Revenues totalled €19,856 million, up +4.3% in first half 2025 compared with first half 2024.

    Operating expenses amounted to -€11,864 million up +5.2% compared to the first half of 2024, especially due to support for business development, IT expenditure and the integration of scope effects. The cost/income ratio for the first half of 2025 was 59.8%, up +0.5 percentage points compared to the first half of 2024.

    Gross operating income totalled €7,992 million, up +3.0% compared to the first half of 2024.

    Cost of risk for the half-year rose moderately to -€1,575 million (of which -€23 million in cost of risk on performing loans (stage 1 and 2), -€1,522 million in cost of proven risk, and +€29 million in other risks, i.e. an increase of +3.4% compared to first half 2024.

    As at 30 June 2025, risk indicators confirm the high quality of Crédit Agricole Group’s assets and risk coverage level. The prudent management of these loan loss reserves has enabled the Crédit Agricole Group to have an overall coverage ratio for doubtful loans (83.3% at the end of June 2025).

    Net income on other assets stood at €456 million in first half 2025, vs. -€14 million in first half 2024. Pre-tax income before discontinued operations and non-controlling interests rose by +10.1% to €7,004 million. The tax charge stood at -€1,66 million, a +9.1% increase. This change is related to the exceptional corporate income tax for -€250 million (corresponding to an estimation of -€330 million in 2025, assuming the 2025 fiscal result being equal to 2024 fiscal result).

    Underlying net income before non-controlling interests was therefore up by +10.4%. Non-controlling interests stood at -€545 million in the first half of 2024, up +26.1%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.

    Credit Agricole Group, Income statement Q2 and H1 2025

    En m€ Q2-25 Q2-24 ∆ Q2/Q2   H1-25 H1-24 ∆ H1/H1
    Revenues 9,808 9,507 +3.2%   19,856 19,031 +4.3%
    Operating expenses (5,872) (5,687) +3.2%   (11,864) (11,276) +5.2%
    Gross operating income 3,936 3,819 +3.1%   7,992 7,755 +3.0%
    Cost of risk (840) (872) (3.7%)   (1,575) (1,523) +3.4%
    Equity-accounted entities 56 74 (24.0%)   131 142 (7.9%)
    Net income on other assets 452 (7) n.m.   456 (14) n.m.
    Change in value of goodwill – – n.m.   – – n.m.
    Income before tax 3,604 3,014 +19.6%   7,004 6,361 +10.1%
    Tax (615) (762) (19.3%)   (1,656) (1,517) +9.1%
    Net income from discontinued or held-for-sale ope. 0 – n.m.   0 – n.m.
    Net income 2,990 2,252 +32.8%   5,348 4,843 +10.4%
    Non controlling interests (352) (224) +57.0%   (545) (432) +26.1%
    Net income Group Share 2,638 2,028 +30.1%   4,803 4,412 +8.9%
    Cost/Income ratio (%) 59.9% 59.8% +0.0 pp   59.8% 59.2% +0.5 pp

    Regional banks

    Gross customer capture stands at +285,000 new customers. The percentage of customers using their current accounts as their main account is increasing and the share of customers using digital tools remains at a high level. Credit market share (total credits) stood at 22.6% (at the end of March 2025, source: Banque de France), stable compared to March 2024. Loan production is up +18.8% compared to the second quarter of 2024, linked to the confirmed upturn in housing loans, up +28.3% compared to the second quarter of 2024 and +10% compared to the first quarter of 2025, and also driven by specialised markets up +13.4% compared to the second quarter of 2024. The average lending production rate for home loans stood at 3.02% (9), -16 basis points lower than in the first quarter of 2025. By contrast, the global loan stock rate improved compared to the second quarter of 2024 (+7 basis points). Outstanding loans totalled €652 billion at the end of June 2025, up by +1.2% year-on-year across all markets and up slightly by +0.5% over the quarter. Customer assets were up +2.8% year-on-year to reach €923.3 billion at the end of June 2025. This growth was driven both by on-balance sheet deposits, which reached €606.1 billion (+0.8% year-on-year), and off-balance sheet deposits, which reached €317.2 billion (+7.1% year-on-year) benefiting from strong inflows in life insurance. Over the quarter, demand deposits drove customer assets with an increase of +2.0% compared to the first quarter of 2025, while term deposits decreased by -0.4%. The market share of on-balance sheet deposits is up compared to last year and stands at 20.2% (Source Banque de France, data at the end of March 2025, i.e. +0.1 percentage points compared to March 2024). The equipment rate for property and casualty insurance (10) was 44.2% at the end of June 2025 and is continuing to rise (up +0.7 percentage points compared to the end of June 2024). In terms of payment instruments, the number of cards rose by +1.5% year-on-year, as did the percentage of premium cards in the stock, which increased by 2.2 percentage points year-on-year to account for 17.8% of total cards.

    In the second quarter of 2025, the Regional Banks’ consolidated revenues including the SAS Rue La Boétie dividend stood at €5,528 million, up +4.2% compared to the second quarter of 2024, including the reversal of Home Purchase Saving Plans provisions in the second quarter of 2025 for €16.3 million and in the second quarter of 2024 for +€22 million (11). Excluding this item, revenues were up +4.3% compared to the second quarter of 2024, fuelled by the increase in fee and commission income (+1.9%), driven by insurance, account management and payment instruments, and by portfolio revenues (+9.2%) benefiting from the increase in dividends traditionally paid in the second quarter of each year. In addition, the intermediation margin was slightly down over one year (-2.5%) but remained stable compared to the first quarter of 2025. Operating expenses were up +5.1%, especially relating to IT expenditure. Gross operating income was up year-on-year (+3.4%). The cost of risk was down -13.3% compared with the second quarter of 2024 to -€397 million. The cost of risk/outstandings (over four rolling quarters) was stable compared to the first quarter of 2025, at a controlled level of 21 basis points. Thus, the net pre-tax income was up +7.3% and stood at €2,482 million. The consolidated net income of the Regional Banks stood at €2,375 million, up +5.0% compared with the second quarter of 2024. Lastly, the Regional Banks’ contribution to net income Group share was €182 million in the second quarter of 2025, down -12.7% compared to the second quarter of 2024.

    In the first half 2025, revenues including the dividend from SAS Rue La Boétie were up (+3.1%) compared to the first half of 2024. Operating expenses rose by +3.4%, and gross operating income consequently grew by +2.6% over the first half. Finally, with a cost of risk up slightly by +1.4%, the Regional banks’ net income Group share, including the SAS Rue La Boétie dividend, amounted to €2,721 million, up +0.7% compared to the first half of 2024. Finally, the Regional Banks’ contribution to the results of Crédit Agricole Group in first half 2025 amounted to €523 million (-19.6%) with revenues of €6,716 million (+2.2%) and a cost of risk of -€717 million (+3.7%).

    Crédit Agricole S.A.

    Results

    Crédit Agricole S.A.’s Board of Directors, chaired by Dominique Lefebvre, met on 30 July 2025 to examine the financial statements for the second quarter of 2025.

    In the second quarter of 2025, Crédit Agricole S.A.’s net income Group share amounted to €2,390 million, an increase of +30.7% from the second quarter of 2024. The results of the second quarter of 2025 are based on high revenues, a cost/income ratio maintained at a low level and a controlled cost of risk. They were also favourably impacted by the change in corporate income tax, and the capital gain related to the deconsolidation of Amundi US.

    Revenues are at a high level and increasing. Revenues totalled €7,006 million, up +3.1% compared to the second quarter of 2024. The growth in the Asset Gathering division (+1.3%) is related to strong activity in Insurance, the impact of volatility and risk aversion of customers for Amundi, the deconsolidation of Amundi US (-€89 million) and the integration of Degroof Petercam (+€96 million). Revenues for Large Customers are stable and stood at a high level both for Crédit Agricole CIB and CACEIS. Specialised Financial Services division revenues (-1.0%) were impacted by a positive price effect in the Personal Finance and Mobility business line and by a cyclical drop in margins on factoring. Revenues for Retail Banking in France (-0.3%) were impacted by an unfavourable base effect on the interest margin, offset by good momentum in fee and commission income. Finally, international retail banking revenues (-1.9%) were mainly impacted by the reduction in the intermediation margin in Italy, partially offset by good momentum in fee and commission income over all the entities of the scope. Corporate Centre revenues were up +€214 million, positively impacted by Banco BPM (+€109 million, mainly related to the increase in dividends received).

    Operating expenses totalled -€3,700 million in the second quarter of 2025, an increase of +2.2% compared to the second quarter of 2024. The -€80 million increase in expenses between the second quarter of 2024 and the second quarter of 2025 was mainly due to -€25 million in scope effect and integration costs, (especially including -€51 million related to the deconsolidation of Amundi US, +€89 million related to the integration of Degroof Petercam and -€20 million related to the reduction in ISB integration costs into CACEIS) and +€58 million due to a positive base effect related to the contribution on the DGS (deposit guarantee fund in Italy).

    The cost/income ratio thus stood at 52.8% in the second quarter of 2025, an improvement of -0.5 percentage point compared to second quarter 2024. Gross operating income in the second quarter of 2025 stood at €3,306 million, an increase of +4.1% compared to the second quarter of 2024.

    As at 30 June 2025, risk indicators confirm the high quality of Crédit Agricole S.A.’s assets and risk coverage level. The Non Performing Loans ratio showed little change from the previous quarter and remained low at 2.3%. The coverage ratio (12) was high at 72.2%, down -2.8 percentage points over the quarter. Loan loss reserves amounted to €9.4 billion for Crédit Agricole S.A., relatively unchanged from the end of March 2025. Of these loan loss reserves, 35.3% were for provisioning for performing loans.

    The cost of risk was a net charge of -€441 million, up +4.2% compared to the second quarter of 2024, and came mainly from a provision for non-performing loans (level 3) of -€524 million (compared to a provision of -€491 million in the second quarter of 2024). Net provisioning on performing loans (stages 1 and 2) is a reversal of +€91 million, compared to a reversal of +€31 million in the second quarter of 2024, and includes reversals for model effects and the migration to default of some loans, which offset the prudential additions to provisions for updating macroeconomic scenarios. Also noteworthy is an addition to provisions of -€8 million for other items (legal provisions) versus a reversal of +€37 million in the second quarter of 2024. By business line, 53% of the net addition for the quarter came from Specialised Financial Services (50% at end-June 2024), 21% from LCL (22% at end-June 2024), 14% from International Retail Banking (17% at end-June 2024), 4% from Large Customers (9% at end-June 2024) and 5% from the Corporate Centre (1% at end-June 2024). The provisioning levels were determined by taking into account several weighted economic scenarios and by applying some flat-rate adjustments on sensitive portfolios. The weighted economic scenarios for the second quarter were updated, with a central scenario (French GDP at +0.8% in 2025, +1.4% in 2026) an unfavourable scenario (French GDP at +0.0% in 2025 and +0.6% in 2026) and an adverse scenario (French GDP at -1.9% in 2025 and -1.4% in 2026). In the second quarter of 2025, the cost of risk/outstandings remained stable at 34 basis points over a rolling four quarter period (13) and 32 basis points on an annualised quarterly basis (14).

    The contribution of equity-accounted entities stood at €30 million in second quarter 2025, down -€17 million compared to second quarter 2024, or -35.1%. This drop is related to the impairment of goodwill of a stake in CAL&F and non-recurring items especially the drop in remarketing revenues at CAPFM, offset by the impact of the first consolidation of Victory Capital (+€20 million). The net income on other assets was €455 million in the second quarter of 2025 and includes the capital gain related to the deconsolidation of Amundi US of €453 million. Pre-tax income, discontinued operations and non-controlling interests therefore increased by +19% to €3,350 million.

    The tax charge was -€541 million, versus -€704 million for the second quarter 2024. This quarter’s tax includes positive elements, especially the non-taxation of the capital gain linked to the deconsolidation of Amundi US. The tax charge for the quarter remains estimated and will be reassessed by the end of the year.

    Net income before non-controlling interests was up +33.1% to €2,809 million. Non-controlling interests stood at -€420 million in the second quarter of 2025, up +48.7%, a share of the capital gain on the deconsolidation of Amundi US being reversed to non-controlling interests.

    Stated net income Group share in the first half of 2024 amounted to €4,213 million, compared with €3,731 million in the first half of 2024, an increase of +12.9%.

    Revenues increased +4.9% compared to the first half of 2024, driven by the performance of the Asset Gathering, Large Customers, and Specialised Financial Services business lines and the Corporate Centre. Operating expenses were up +5.5% compared to the first half of 2024, especially in connection with supporting the development of business lines and the integration of scope effects. The cost/income ratio for the first half of the year was 53.9%, an improvement of 0.3 percentage points compared to first half 2024. Gross operating income totalled €6,571 million, up +4.1% compared to first half 2024. The cost of risk increased by +3.8% over the period, to -€-855 million, versus -€824 million for first half 2024.

    The contribution of equity-accounted entities stood at €77 million in first half 2025, down -€13 million compared to first half 2024, or -14.1%. Net income from other assets was €456 million in the first half of 2025. Pre-tax income, discontinued operations and non-controlling interests therefore increased by +11.9% to €6,250 million. The tax charge was -€1,368 million, versus -€1,315 million for first half 2024. This includes the exceptional corporate income tax of -€152 million, corresponding to an estimation of -€200 million in 2025 (assuming 2025 fiscal result being equal to 2024 fiscal result). Net income before non-controlling interests was up +14.3% to €4,882 million. Non-controlling interests stood at -€669 million in first half 2025, up +23.5% compared to first half 2024.

    Earnings per share stood at €0.74 per share in the second quarter 2025, versus €0.58 in the second quarter 2024.

    RoTE (15), which is calculated on the basis of an annualised net income Group share (16) and IFRIC charges, additional corporate tax charge and the capital gain on deconsolidation of Amundi US linearised over the year, net of annualised Additional Tier 1 coupons (return on equity Group share excluding intangibles) and net of foreign exchange impact on reimbursed AT1, and restated for certain volatile items recognised in equity (including unrealised gains and/or losses), reached 16.7% in the first half of 2024, up +1.3 percentage points compared to the first half of 2024.

    Crédit Agricole S.A. – Income statement, Q2 and H1-25

    En m€ Q2-25 Q2-24 ∆ Q2/Q2   H1-25 H1-24 ∆ H1/H1
    Revenues 7,006 6,796 +3.1%   14,263 13,602 +4.9%
    Operating expenses (3,700) (3,621) +2.2%   (7,691) (7,289) +5.5%
    Gross operating income 3,306 3,175 +4.1%   6,571 6,312 +4.1%
    Cost of risk (441) (424) +4.2%   (855) (824) +3.8%
    Equity-accounted entities 30 47 (35.2%)   77 90 (14.1%)
    Net income on other assets 455 15 x 29.4   456 9 x 50.7
    Change in value of goodwill – – n.m.   – – n.m.
    Income before tax 3,350 2,814 +19.0%   6,250 5,587 +11.9%
    Tax (541) (704) (23.2%)   (1,368) (1,315) +4.0%
    Net income from discontinued or held-for-sale ope. 0 – n.m.   0 – n.m.
    Net income 2,809 2,110 +33.1%   4,882 4,273 +14.3%
    Non-controlling interests (420) (282) +48.7%   (669) (542) +23.5%
    Net income Group Share 2,390 1,828 +30.7%   4,213 3,731 +12.9%
    Earnings per share (€) 0.74 0.58 +29.1%   1.30 1.08 +20.3%
    Cost/Income ratio (%) 52.8% 53.3% -0.5 pp   53.9% 53.6% +0.3 pp

    Analysis of the activity and the results of Crédit Agricole S.A.’s divisions and business lines

    Activity of the Asset Gathering division

    At end-June 2025, the assets under management of the Asset Gathering (AG) division stood at €2,905 billion, up +€27 billion over the quarter (i.e. +1%), mainly due to positive net inflows in asset management, and insurance, and a positive market and foreign exchange effect over the period. Over the year, assets under management rose by +5.2%.

    Insurance activity (Crédit Agricole Assurances) was very strong, with total revenues at a high level of €12.7 billion, up +17.9% compared to second quarter 2024.

    In Savings/Retirement, second quarter 2025 revenues reached €9.9 billion, up +22.3% compared to second quarter 2024, in a buoyant environment, especially in France. Unit-linked rate in gross inflows(17) is stable year-on-year at 32.0%. The net inflows reached a record +€4.2 billion (+€2.7 billion compared to the second quarter of 2024), comprised of +€2.4 billion net inflows from euro funds and +€1.8 billion from unit-linked contracts.

    Assets under management (savings, retirement and funeral insurance) continued to grow and came to €359.4 billion (up +€21.5 billion year-on-year, or +6.4%). The growth in outstandings was driven by the very high level of quarterly net inflows and favourable market effects. Unit-linked contracts accounted for 30.2% of outstandings, up +0.6 percentage points compared to the end of June 2024.

    In property and casualty insurance, premium income stood at €1.4 billion in the second quarter of 2025, up +9.3% compared to the second quarter of 2024. Growth stemmed from a price effect, with the increase in the average premium benefiting from revised rates induced by climate change and inflation in repair costs as well as changes in the product mix, and a volume effect, with a portfolio of over €16.9 million (18) policies at the end of June 2025 (or +2.8% over the year). Lastly, the combined ratio at the end of June 2025 stood at 94.7% (19), stable year-on-year and an improvement of +1.4 percentage points compared to the last quarter.

    In death & disability/creditor insurance/group insurance, premium income for the second quarter of 2025 stood at €1.4 billion, down slightly by -0.6% compared to the second quarter of 2024. Individual death & disability showed growth of +7.1% related to the increase in the average amount of guarantees. Creditor insurance showed a drop in activity of -4.3% over the period, especially related to international consumer finance. Group insurance was slightly up at +2.2%.

    In Asset Management (Amundi), assets under management by Amundi increased by +0.9% and +5.2% respectively over the quarter and the year, reaching a new record of €2,267 billion at the end of June 2025. They take into account the first integration of Victory Capital over the quarter with a scope effect of -€9.7 billion (effect of the deconsolidation of Amundi US for -€70 billion and the integration of Victory for +€60 billion). US business assets amount to €94 billion at end-June 2025, including €36 billion of assets distributed by Amundi to non-US customers (fully integrated) and €58 billion of assets distributed by Victory to US customers (26% share). In addition to the scope effect, assets benefited from a high level of inflows over the quarter (+€20.5 billion) a positive market effect of +€57 billion, and a strong negative exchange rate impact of -€48 billion related to the drop in the US dollar and Indian rupee. Net inflows are balanced between medium/long term assets (+€11 billion) and JVs (+€10 billion). The Institutionals segment also recorded net inflows of +€8.7 billion over the quarter, driven by strong seasonal activity in employee savings (+€4 billion in MLT assets). The JV segment showed net inflows of €10.3 billion over the period, with an upturn of inflows in India and a confirmed recovery in China. Finally, the retail segment showed net inflows of €1.4 billion over the quarter.

    In Wealth management, total assets under management (CA Indosuez Wealth Management and LCL Private Banking) amounted to €279 billion at the end of June 2025, and were up +3.7% compared to June 2024 and stable compared to March 2025.

    For Indosuez Wealth Management assets under management at the end of June stood at €214 billion (20), up +0.4% compared to the end of March 2025, with slightly negative net inflows of -€0.1 billion. Production is supported by structured products and mandates, partially offsetting the outflow especially linked to liquidity events of large customers. The market and foreign exchange impact of the quarter is positive at €1 billion. Compared to end-June 2024, assets are up by +€9 billion, or +4.5%. Also noteworthy is the announcement of the Banque Thaler acquisition project in Switzerland on 4 April 2025 and that of the plan to acquire the Wealth Management customers of BNP Paribas Group in Monaco on 23 June 2025.

    Results of the Asset Gathering division

    In the second quarter of 2025, Asset Gathering generated €1,970 million of revenues, up +1.3% compared to the second quarter of 2024. Expenses increased +6.2% to -€864 million and gross operating income came to €1,106 million, -2.2% compared to the second quarter of 2024. The cost/income ratio for the second quarter of 2025 stood at 43.8%, up +2.0 percentage points compared to the same period in 2024. Equity-accounted entities showed a contribution of €58 million, up +77.4%, especially in relation to the first integration of the contribution of Victory Capital of 26% over this quarter in the Asset Management division for €20 million. The net income on other assets is impacted by the recognition of a capital gain of €453 million also related to the partnership with Victory Capital. Consequently, pre-tax income was up by +40.1% and stood at €1,610 million in the second quarter of 2025. The net income Group share showed an increase of +49.3% to €1,100 million.

    In the first semester of 2025, the Asset Gathering division generated revenues of €4,028 million, up +7.9% compared to first half 2024. Expenses increased by +14.8%. As a result, the cost/income ratio stood at 44.7%, up +2.7 percentage points compared to the first half of 2024. Gross operating income stood at €2,229 million, a increase of +2.9% compared to first half 2024. Equity-accounted entities showed a contribution of €86 million, up +39.4%, especially in relation to the first integration of the contribution of Victory Capital of 26% over the second quarter of 2025 in the Asset Management division. The net income on other assets is impacted by the recognition of a capital gain of €453 million also related to the partnership with Victory Capital in second quarter 2025. Taxes stood at €601 million, a +19.8% increase. Net income Group share of the Asset Gathering division includes the additional corporate tax charge in France and amounted to €1,780 million, up +22.5% compared to the first half of 2024. The increase affected all the business lines of the division, (+66.1% for Asset Management, +0.8% for Insurance and +92.3% for Wealth Management).

    In the second quarter of 2025, the Asset Gathering division contributed by 41% to the net income Group share of the Crédit Agricole S.A. core businesses and 28% to revenues (excluding the Corporate Centre division).

    As at 30 June 2025, equity allocated to the division amounted to €13.2 billion, including €10.6 billion for Insurance, €1.9 billion for Asset Management, and €0.7 billion for Wealth Management. The division’s risk weighted assets amounted to €51.4 billion, including €24.0 billion for Insurance, €19.7 billion for Asset Management and €7.7 billion for Wealth Management.

    Insurance results

    In the second quarter of 2025, insurance revenues amounted to €790 million, up +2.1% compared to the second quarter of 2024. They are supported by Savings/Retirement in relation to the growth in activity and a positive financial result over the period, Property & Casualty which benefits from a good level of activity and financial results, and by the performance of Death & Disability, which offsets a tightening of technical margins in creditor. Revenues for the quarter included €587 million from savings/retirement and funeral insurance (21), €89 million from personal protection (22) and €114 million from property and casualty insurance (23).

    The Contractual Service Margin (CSM) totalled €26.8 billion at the end of June 2025, an increase of +6.3% compared to the end of December 2024. It benefited from a contribution of new business greater than the CSM allocation and a positive market effect. The annualised CSM allocation factor was 8.0% at end-June 2025.

    Non-attributable expenses for the quarter stood at -€87 million, down -0.9% over the second quarter of 2024. As a result, gross operating income reached €703 million, up +2.5% compared to the same period in 2024. The net pre-tax income was up +2.2% and stood at €703 million. The tax charge totalled €143 million, down -19.9% during the period. Net income Group share stood at €557 million, up +12.6% compared to the second quarter of 2024.

    Revenues from insurance in the first half of 2025 came to €1,517 million, up +1.5% compared to the first half of 2024. Gross operating income stood at €1,335 million, up +1.4% compared to the first half of 2024. Non-attributable expenses came to €182 million, i.e. an increase of +2.0%. The cost/income ratio is thus 12.0%, below the target ceiling set by the Medium-Term Plan of 15%. The net income Group share includes the additional corporate tax charge in France and reached €997 million, up +0.8% compared to first half 2024.

    Insurance contributed 23% to the net income Group share of Crédit Agricole S.A.’s business lines (excluding the Corporate Centre division) at end-June 2025 and 10% to their revenues (excluding the Corporate Centre division).

    Asset Management results

    In the second quarter of 2025, revenues amounted to €771 million, showing a fall of -10.8% compared to the second quarter of 2024. The deconsolidation of Amundi US (previously fully consolidated) and the integration of Victory Capital (at 26% on the equity-accounted entities line) took effect this quarter. As a result, restated for this scope effect,(24), revenues were stable (-0.6%) compared with the second half of 2024. Net management fee and commission income was up +1.0% (25) compared with second quarter 2024. Amundi Technology’s revenues recorded a significant increase and rose +50% over the second quarter of 2024, thanks to the integration of Aixigo (the European leader in Wealth Tech, the acquisition of which was finalised in November 2024) which amplified the continued strong organic growth. Performance fee income fell -29%25 from the second quarter of 2024 due to market volatility and financial revenues fell in connection with the drop in rates. Operating expenses amounted to -€429 million, a decline of -8.8% from the second quarter of 2024. Excluding the scope effect related to the Victory Capital partnership24, they were up +2.2% over the period. The cost/income ratio was up at 55.7% (+1.2 percentage points compared to second quarter 2024). Gross operating income stood at €341 million, down -13.2% compared to the second quarter of 2024. The contribution of the equity-accounted entities, carrying the contribution of Amundi’s Asian joint ventures as well as the new contribution of Victory Capital starting this quarter, was €58 million (+€20 million of which for Victory Capital, whose contribution is recognised with an offset of one quarter, so excluding the synergies already realised in the second quarter of 2025; the contribution of the joint ventures rose sharply to +16.6%, particularly in India), an increase of +77.4% over the second quarter of 2024. Net income on other assets was impacted by the recognition of a non-monetary capital gain of €453 million, also related to the partnership with Victory Capital, over the second quarter of 2025. Consequently, pre-tax income came to €850 million, double the second quarter of 2024. Non-controlling interests were impacted by the partnership with Victory Capital and amounted to €249 million over the quarter. Net income Group share amounted to €506 million, up sharply (x2.3) compared to the second quarter of 2024, taking account of the impact of the partnership with Victory Capital.

    Over the first half of 2025, revenues remained stable at €1,663 million (-0.3%). Excluding the scope effect related to the partnership with Victory Capital in the second quarter of 2025, it would represent an increase of +5.3% over the period. Operating expenses posted a slight increase of +0.7%. Excluding the scope effect related to the partnership with Victory Capital, they would increase +5.3% over the period. The cost/income ratio was 55.7%, an increase of +0.5 percentage points compared to first half 2024. This resulted in a -1.5% decline in gross operating income from the first half of 2024. The income of the equity-accounted entities rose +39.4%, primarily reflecting the first integration of the Victory Capital contribution over second quarter 2025. Net income on other assets was impacted by the recognition of a non-monetary capital gain of €453 million also related to the partnership with Victory Capital over the second quarter of 2025. In total, net income Group share for the half includes the additional corporate tax charge in France and stood at €689 million, an increase of +66.1%.

    Asset management contributed 16% to the underlying net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end June 2025 and by 12% to their underlying revenues.

    At 30 June 2025, equity allocated to the Asset Management business line amounted to €1.9 billion, while risk weighted assets totalled €19.7 billion.

    Wealth Management results (26)

    In the second quarter of 2025, revenues from wealth management amounted to €409 million, up +33.3% compared to the second quarter of 2024, benefiting from the impact of the integration of Degroof Petercam in June 2024. Excluding this effect, (27) revenues were sustained by the positive momentum of transactional income and the good resilience of the net interest margin, despite falling rates. Expenses for the quarter amounted to -€348 million, up +36.4% compared to the second quarter of 2024, impacted by a Degroof Petercam scope effect27 and -€22.5 million in integration costs in the second quarter of 2025 (28). Excluding these impacts, expenses rose slightly at +1.7% compared to the second quarter of 2024. The cost/income ratio for the second quarter of 2025 stood at 85%, up +1.9 percentage points compared to the same period in 2024. Excluding integration costs, it amounted to 79.5%. Gross operating income reached €61 million, an increase of (+18.3%) compared to the second quarter of 2024. Cost of risk remained moderate at -€5 million. Net income Group share amounted to €36 million, up +52.7% compared to the second quarter of 2024.

    In the first half of 2025, wealth management revenues rose by +48.6% over the first half of 2024, notably benefiting from the integration of Degroof Petercam(29) in June 2024 to reach €848 million. Expenses rose by +47.5% due to the impact of the integration of Degroof Petercam29 in June 2024 and integration costs. Gross operating income was therefore up +54.0% at €156 million. Net income on other assets was nil in the first half of 2025 compared with -€20 million in the first half of 2024, corresponding to Degroof Petercam acquisition costs. Net income Group share was €94 million over the first half, up +92.3% from first half 2024. The additional net income Group share target of +€150 million to +€200 million in 2028 following the integration of Degroof Petercam is confirmed and the rate of progression in synergies realised was approximately 25%.

    Wealth Management contributed 2% to the net income Group share of Crédit Agricole S.A.’s business lines (excluding the Corporate Centre division) at end-June 2025 and 6% of their revenues (excluding the Corporate Centre division).

    At 30 June 2025, equity allocated to Wealth Management was €0.7 billion and risk weighted assets totalled €7.7 billion.

    Activity of the Large Customers division

    The large customers division posted good activity in the second quarter of 2025, thanks to good performance from Corporate and Investment banking (CIB) and strong activity in asset servicing.

    In the second quarter of 2025, revenues from Corporate and Investment Banking were stable at €1,705 million, which is -0.1% compared to second quarter 2024 (+5% excluding FVA/DVA volatile elements and foreign exchange impact). Capital Markets and Investment Banking activity was down -2.7% from second quarter 2024 (+3% excluding non-recurring items and foreign exchange impact), but remained at a high level at €860 million, supported in part by a new progression in revenues from Capital Market activities (+2.8% over second quarter 2024, +10% excluding FVA/DVA volatile items and foreign exchange impact) particularly on the trading and primary credit activities that partially offset the decline in structured equity revenues. Revenues from financing activities rose to €845 million, an increase of +2.8% compared to the second quarter of 2024 (+7% excluding non-recurring items and foreign exchange impact). This mainly reflects the performance of structured financing, where revenues rose +6.8% compared to the second quarter of 2024, primarily explained by the dynamism of the renewable energy sector (increase in production on wind and solar projects). Commercial Banking was up +0.7% versus second quarter 2024, driven by the activities of Corporate & Leveraged Finance, boosted by the acquisition financing sector.

    Financing activities consolidated its leading position in syndicated loans (#1 in France (30) and #2 in EMEA30). Crédit Agricole CIB reaffirmed its strong position in bond issues (#2 All bonds in EUR Worldwide30) and was ranked #1 in Green, Social & Sustainable bonds in EUR (31). Average regulatory VaR stood at €11.1 million in the second quarter of 2025, up from €10.5 million in the first quarter of 2025, reflecting changes in positions and financial markets. It remained at a level that reflected prudent risk management.

    For Asset Servicing, business growth was supported by strong commercial activity and favourable market effects.

    Assets under custody rose by +1.1% at the end of June 2025 compared to the end of March 2025 and increased by +11.3% compared to the end of June 2024, to reach €5,526 billion. Assets under administration fell by
    -3.0% over the quarter because of a planned customer withdrawal, and were up +1.2% year-on-year, totalling €3,468 billion at end-June 2025.

    On 4 July 2025, Crédit Agricole S.A. announced the finalisation of the buyback of the 30.5% interest held by Santander in CACEIS.

    Results of the Large Customers division

    In the second quarter of 2025, revenues of the Large Customers division once again reached a record level at €2,224 million (stable from second quarter 2024), buoyed by an excellent performance in the Corporate and Investment Banking and Asset Servicing business lines.

    Operating expenses increased by +4.4% due to IT investments and business line development. As a result, the division’s gross operating income was down -5.1% from the second quarter of 2024, standing at €967 million. The division recorded a limited addition for provision of the cost of risk of -€20 million integrating the update of economic scenarios and benefiting from favourable model effects, to be compared with an addition of -€39 million in the second quarter of 2024. Pre-tax income amounted to €958 million, down -3.3% compared to the second quarter of 2024. The tax charge amounted to -€149 million in second quarter 2025. Finally, net income Group share totalled €752 million in the second quarter of 2025, an increase of +8.3% over the second quarter of 2024.

    In first half 2025, the revenues of the Large Customers business line amounted to a historic high of €4,632 million (+3.2% compared to first half 2024). Operating expenses rose +4.6% compared to first half 2024 to €2,617 million, largely related to staff costs and IT investments. Gross operating income for first half of 2025 therefore totalled €2,015 million, up +1.4% from first half 2024. The cost of risk ended the first half of 2025 with a net provision to provisions of -€5 million, which was stable compared with the first half of 2024. The business line’s contribution to underlying net income Group share was at €1,475 million, up +4.1% compared to first half 2024.

    The business line contributed 34% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end-June 2025 and 32% to revenues excluding the Corporate Centre.

    At 30 June 2025, the equity allocated to the division was €12.8 billion and its risk weighted assets were €134.7 billion.

    Corporate and Investment Banking results

    In the second quarter of 2025, revenues from Corporate and Investment Banking posted a strong performance at €1,705 million (stable in relation to second quarter 2024, +5% excluding FVA/DVA volatile items and foreign exchange impact).

    Operating expenses rose by +6.7% to -€895 million, mainly due to IT investments and the development of business line activities. Gross operating income declined -6.6% compared to second quarter 2024 and recorded a high level of +€810 million. Cost/income ratio was 52.5%, an improvement of +3.3 percentage points for the period. Cost of risk recorded a limited net provision of -€19 million integrating the update of economic scenarios and benefiting from positive model effects. Pre-tax income in second quarter 2025 stands at €793 million, down -5.7% compared to the second quarter of 2024. Lastly, stated net income Group share was up +6.7% to €659 million in the second quarter of 2025.

    In first half 2025, stated revenues rose by +3.7% compared to first half 2024, to €3,591 million, the highest historical half-year level ever. Operating expenses rose +7.1%, mainly due to variable compensation and IT investments to support the development of the business lines. As a result, gross operating income was €1,704 million and stable compared to first half 2024. The cost of risk recorded a net reversal of +€4 million in the first half of 2025, compared to a reversal of +€7 million in the first half of 2024. The income tax charge stood at -€376 million, down -9.3%. Lastly, stated net income Group share for first half 2025 stood at €1,307 million, an increase of +3.0% over the period.

    Risk weighted assets at end-June 2025 were down -€6.6 billion compared to end-March 2025, to €123.6 billion, mainly explained by model effects.

    Asset servicing results

    In the second quarter of 2025, revenues for Asset Servicing remained stable compared to second quarter 2024 at €519 million, as the solid performance of the net interest margin was offset by a drop in fee and commission income (notably on foreign exchange). Operating expenses were down by -1.1% to -€361 million, due to the decrease in ISB integration costs compared to the second quarter of 2024 (32). Apart from this effect, expenses were up slightly pending the acceleration of synergies. As a result, gross operating income was up by +3.8% to €158 million in the second quarter of 2025. The cost/income ratio for the second quarter of 2025 stood at 69.6%, down -1.0 percentage points compared to the same period in 2024. Consequently, pre-tax income was up by +8.8% and stood at €165 million in the second quarter of 2025. Net income Group share rose +21.1% compared to second quarter 2024.

    Stated revenues for first half 2025 were up +1.5% compared with first half 2024, buoyed by the strong commercial momentum and a favourable trend in the interest margin over the period. Expenses declined -1.3% and included -€13.7 million in integration costs related to the acquisition of ISB’s activities (versus -€44.3 million in integration costs in the first half of 2024). Gross operating income rose +8.8% increase compared to first half 2024.
    The cost/income ratio stood at 70.1%, down 2.0 points compared to the second half of 2024. The additional net income target (33)of +€100 million in 2026 following the integration of ISB is confirmed and the rate of progression in synergies realised is approximately 60%.

    Finally, the contribution of the business line to net income Group share in the first half of 2025 was €168 million, representing a +13.9% increase compared to the first half of 2024.

    Specialised financial services activity

    Crédit Agricole Personal Finance & Mobility’s (CAPFM) commercial production totalled €12.4 billion in second quarter 2025, an increase of +2.4% from second quarter 2024, and an increase of +12.4% compared to first quarter 2025. This increase was carried by traditional consumer finance, while the automobile activity remained stable in a still complex market in Europe and China. The share of automotive financing (34) in quarterly new business production stood at 49.6%. The average customer rate for production was down slightly by -9 basis points from the first quarter of 2025. CAPFM assets under management stood at €121.0 billion at end-June 2025, up +4.5% from end-June 2024, over all scopes (Automotive +6.6% (35), LCL and Regional Banks +4.2%, Other Entities +2.5%), benefiting from the expansion of the management portfolio with the Regional Banks and the promising development of car rental with Leasys and Drivalia. Lastly, consolidated outstandings totalled €68.0 billion at end-June 2025, down -0.9% from end-June 2024.

    The commercial production of Crédit Agricole Leasing & Factoring (CAL&F) was down -19.4% from second quarter 2024 in leasing, primarily in France in an unfavourable market context (36). In International, production was up, particularly in Poland. Leasing outstandings rose +5.0% year-on-year, both in France (+4.1%) and internationally (+8.6%), to reach €20.8 billion at end-June 2025 (of which €16.4 billion in France and €4.5 billion internationally). Commercial production in factoring was up +26.6% versus second quarter 2024, carried by France, which rose +83.8%, which benefited from the signing of a significant contract; international fell by -27.0%, mainly in Germany. Factoring outstandings at end-June 2025 were up +3.7% compared to end-June 2024, and factored revenues were up by +5.0% compared to the same period in 2024.

    Specialised financial services’ results

    In the second quarter of 2025, revenues of the Specialised Financial Services division were €881 million, down -1.0% compared to the second quarter of 2024. Expenses stood at -€438 million, down -1.0% compared to the second quarter of 2024. The cost/income ratio stood at 49.8%, stable compared to the same period in 2024. Gross operating income thus stood at €442 million, down -1.0% compared to the second quarter of 2024. Cost of risk amounted to -€235 million, up +11.7% compared to the second quarter of 2024. Income for the equity-accounted entities amounted to -€13 million, a significant decline from second quarter 2024 which was €29 million, mainly linked to the drop in remarketing revenues for CAPFM as well as a depreciation of goodwill for CAL&F. Pre-tax income for the division amounted to €194 million, down -26.7% compared to the same period in 2024. Net income Group share amounted to €114 million, down -38.9% compared to the same period in 2024.

    In the first half of 2025, revenues for the Specialised Financial Services division were €1,749 million, which was up +0.8% from first half 2024. Operating expenses were up +1.7% from first half 2024 at -€912 million. Gross operating income amounted to €837 million, stable (-0.2%) in relation to first half 2024. The cost/income ratio stood at 52.1%, up +0.5 percentage points compared to the same period in 2024. The cost of risk increased by +12.8% compared to the first quarter of 2024 to -€484 million. The contribution of the equity-accounted entities dropped -62.2% from the same period in 2024, mainly linked to the decline in remarketing revenues CAPFM and a depreciation of goodwill for CAL&F (in the second quarter of 2025). Net income Group share includes the corporate tax additional charge in France and amounted to €263 million, down -20.3% compared to the same period in 2024.

    The business line contributed 6% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) at end-June 2025 and 12% to revenues excluding the Corporate Centre.

    At 30 June 2025, the equity allocated to the division was €7.7 billion and its risk weighted assets were €80.7 billion.

    Personal Finance and Mobility results

    In the second quarter of 2025, CAPFM revenues totalled €697 million, up +0.3% from the second quarter of 2024, with a positive price effect benefiting from the improvement in the production margin rate, which rose +35 basis points compared to second quarter 2024 (and which was down -7 basis points from first quarter 2025), partially absorbed by the increase in subordinated debt (37). Expenses totalled -€339 million, a drop of -1.1% and the jaws effect was positive over the quarter at +1.3 percentage points. Gross operating income thus stood at €358 million, an increase of +1.5% compared to the second quarter of 2024. The cost/income ratio stood at 48.7%, up -0.6 percentage points compared to the same period in 2024. The cost of risk stood at -€228 million, up +19.6% from the second quarter of 2024. The cost of risk/outstandings thus stood at 135 basis points(38), a slight deterioration of +5 basis points compared to the first quarter of 2025, especially in international activities. The Non Performing Loans ratio was 4.6% at end-June 2025, slightly up by +0.1 percentage points compared to end-March 2025, while the coverage ratio reached 73.2%, down -0.2 percentage points compared to end-March 2025. The contribution from the equity-accounted entities fell by -71.4% compared to the same period in 2024, related mainly to the drop in remarketing revenues. Pre-tax income amounted to €140 million, down -27.1% compared to the same period in 2024. Net income Group share amounted to €81 million, down -38.4% compared to the previous year.

    In the first half of 2025, CAPFM revenues reached €1,380 million, i.e. +1.1% over the first half of 2024, benefiting from volume and positive price effects partially offset by the increase in subordinated debt37. The expenses came to -€709 million, up +1.7% compared to the first half of 2024, related primarily to employee expenses and IT expenses. Gross operating income stood at €671 million, up +0.6%. The cost/income ratio stood at 51.4%, up +0.3 percentage points compared to the same period in 2024. The cost of risk rose by +16.3% over the first half of 2024 to -€453 million, notably related to a slight degradation on the international subsidiaries. The contribution from equity-accounted entities fell by -25.9% compared to the same period in 2024, primarily due to the decline in remarketing revenues. Therefore, net income Group share, which includes the additional corporate tax charge in France, amounted to €188 million, down -18.7% from the first half of 2024.

    Leasing & Factoring results

    In the second quarter of 2025, CAL&F revenues totalled €183 million, down -5.4% from second quarter 2024 due to the decline in factoring margins (related to the rate decrease). Revenues were up in leasing. Operating expenses stood at -€99 million, down -0.8% over the quarter, and the cost/income ratio stood at 54.0%, an improvement of +2.6 percentage points compared to the second quarter of 2024. Gross operating income stood at €84 million, down -10.4% compared to the second quarter of 2024. The cost of risk includes a provision reversal on performing loans of +€20 million and thus amounted to -€7 million over the quarter, a drop of -63.9% from the same period in 2024. Cost of risk/outstandings stood at 21 basis points38, down -4 basis points compared to second quarter 2024. Income of the equity-accounted entities totalled -€22 million in second quarter 2025, a sharp decline from second quarter 2024 at -€2 million, due to a depreciation of goodwill. Pre-tax income amounted to €54 million, down -25.4% compared to the same period in 2024. Net income Group share includes the corporate tax additional charge in France and amounted to €33 million, down -40.2% compared to the previous year.

    In the first half of 2025, revenues were stable (-0.6%) from first half 2024 at €369 million with an increase on leasing absorbed by a decrease in factoring margins because of the decrease in rates. Operating expenses increased by +1.9% to -€203 million. Gross operating income was down -3.5% from the first half of 2024 to total €166 million. The cost/income ratio stood at 55.0%, up +1.3 percentage points compared to first half 2024. The cost of risk declined from the first half of 2024 (-21.8%) because of a provision reversal of +€20 million on performing loans in the second quarter of 2025. The contribution of the equity-accounted entities amounted to -€24 million in the first half of 2025, down sharply from the first half of 2024 at -€4 million due to a depreciation of goodwill in first half 2025. Finally, net income Group share includes the additional corporate tax charge in France and amounted to €75 million, down -24.1% from the first half of 2024.

    Crédit Agricole S.A. Retail Banking activity

    In Retail Banking at Crédit Agricole S.A. this quarter, loan production in France continued its upturn compared to the second quarter of 2024. It was down in Italy in a very competitive housing market. The number of customers with insurance is progressing.

    Retail banking activity in France

    In the second quarter of 2025, activity was steady, with an upturn in loan activity, especially real estate loans, compared with the second quarter of 2024, and an increase in inflows. Customer acquisition remained dynamic, with 68,000 new customers this quarter.

    The equipment rate for car, multi-risk home, health, legal, all mobile phones or personal accident insurance rose by +0.6 percentage points to stand at 28.4% at end-June 2025.

    Loan production totalled €6.8 billion, representing a year-on-year increase of +14%. Second quarter 2025 recorded an increase in the production of real estate loans (+24% over second quarter 2024). The average production rate for home loans came to 3.07%, down -11 basis points from the first quarter of 2025 and -77 basis points year on year. The home loan stock rate improved by +3 basis points over the quarter and by +18 basis points year on year. The strong momentum continued in the corporate market (+10% year on year) and the small business market (+15% year on year) and remains up in the consumer finance segment (+2%).

    Outstanding loans stood at €171.5 billion at end-June 2025, representing a quarter-on-quarter increase (+0.5%) and year-on-year (+2.0%, including +1.8% for home loans, +1.7% for loans to small businesses, and +3.4% for corporate loans). Customer assets totalled €256.0 billion at end-June 2025, up +1.7% year on year, driven by off-balance sheet funds and with a slight increase of on-balance sheet deposits. Over the quarter, customer assets remained stable at -0.2% in relation to end-March 2025, with an increase of demand deposits for +2.6% while term deposits dropped -8.5% over the quarter in an environment that remains uncertain. Off-balance sheet deposits benefited from a positive year-on-year market effect and on the quarter and positive net inflows in life insurance.

    Retail banking activity in Italy

    In the second quarter of 2025, CA Italia posted gross customer capture of 54,000.

    Loans outstanding at CA Italia at the end of June 2025 stood at €62.0 billion (39), up +1.6% compared with end-June 2024, in an Italian market up slightly (40), driven by the retail market, which posted an increase in outstandings of +2.8%. The loan stock rate declined by -96 basis points against the second quarter of 2024 and by -24 basis points from the first quarter of 2025. Loan production for the quarter was down -8.1% compared with a high second quarter 2024, in a very competitive home market in the second quarter of 2025. Loan production for the half rose by +1.3% compared with the first half of 2024.

    Customer assets at end-June 2025 totalled €120.5 billion, up +3.2% compared with end-June 2024; on-balance sheet deposits were relatively unchanged (+0.3%) from end-June 2024. Finally, off-balance sheet deposits increased by +6.9% over the same period and benefited from net flows and a positive market effect.

    CA Italia’s equipment rate in car, multi-risk home, health, legal, all mobile phones or personal accident insurance was 20.6%, up +0.9 percentage points over the second quarter of 2024.

    International Retail Banking activity excluding Italy

    For International Retail Banking excluding Italy, loan outstandings were €7.4 billion, up +5.2% at current exchange rates at end-June 2025 compared with end-June 2024 (+6.6% at constant exchange rates). Customer assets rose by +€11.7 billion and were up +6.4% over the same period at current exchange rates (+9.7% at constant exchange rates).

    In Poland in particular, loan outstandings increased by +5.2% compared to end-June 2024 (+3.6% at constant exchange rates) driven by the retail segment and on-balance sheet deposits of +8.2% (+6.6% at constant exchange rates). Loan production in Poland rose this quarter compared to the second quarter of 2024 (+7.9% at current exchange rates and +6.5% at constant exchange rates). In addition, gross customer capture in Poland reached 48,000 new customers this quarter.

    In Egypt, commercial activity was strong in all markets. Loans outstanding rose +6.8% between end-June 2025 and end-June 2024 (+20.9% at constant exchange rates). Over the same period, on-balance sheet deposits increased by +9.0%% and were up +23.3% at constant exchange rates.

    Liquidity is still very strong with a net surplus of deposits over loans in Poland and Egypt amounting to +€2.0 billion at 30 June 2025, and reached €3.5 billion including Ukraine.

    French retail banking results

    In the second quarter of 2025, LCL revenues amounted to €976 million, stable from the second quarter of 2024. The increase in fee and commission income (+3.1% over second quarter 2024) was driven by the strong momentum in insurance (life and non-life). NIM was down -3.4%, under the impact of an unfavourable base effect, but improved compared to the first quarter of 2025 (+7.8%), thanks to the progressive repricing of loans and the decrease in the cost of customer-related funds (which benefited from a positive change in the deposit mix) and of refinancing, offset by a lower contribution from macro-hedging.

    Expenses were up slightly by +1.0% and stood at -€597 million linked to ongoing investments. The cost/income ratio stood at 61.1%, an increase by 0.8 percentage points compared to second quarter 2024. Gross operating income fell by -2.4% to €380 million.

    The cost of risk was stable (-0.3% compared with second quarter 2024) and amounted to -€95 million (including an addition to provisions of -€104 million on proven risk and a reversal of +€10 million on healthy loans, incorporating the impact of the scenario update offset by the model update. The cost of risk/outstandings was stable at 20 basis points, with its level still high in the professional market. The coverage ratio still remains at a high level and was 60.9% at the end of June 2025. The Non Performing Loans ratio was 2.1% at the end of June 2025.

    Finally, pre-tax income stood at €286 million, down -3.4% compared to the second quarter of 2024, and net income Group share was down -5.7% from the second quarter of 2024.

    In the first half of 2025, LCL revenues were stable, up +0.3% compared to first half 2024 and totalled €1,939 million. The net interest margin was down (-2.6%), benefiting from gradual loan repricing and lower funding and refinancing costs, although the impact of macro-hedging remained positive, though less favourable, and there was an unfavourable base effect in the second quarter. Fee and commission income rose +3.4% compared to first half 2024, particularly on insurance. Expenses rose by +2.4% over the period and the cost/income ratio remained under control (+1.3 percentage points compared with first half 2024) at 63.0%. Gross operating income fell by -3.1% and the cost of risk improved by -12.9%. Lastly, the business line’s contribution to net income Group share includes the additional corporate tax charge in France and amounted to €337 million (-14.4% compared to the first half of 2024).

    In the end, the business line contributed 8% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) in the second quarter of 2025 and 13% to revenues excluding the Corporate Centre division.

    At 30 June 2025, the equity allocated to the business line stood at €5.3 billion and risk weighted assets amounted to €55.7 billion.

    International Retail Banking results (41)

    In the second quarter of 2025, revenues for International Retail Banking totalled €1,007 million, down compared with the second quarter of 2024 (-1.9% at current exchange rates, -1.3% at constant exchange rates). Operating expenses amounted to -€520 million, down -6.3% (-6.0% at constant exchange rates), and benefited from the end of the contribution to the DGS in 2025, which was recorded for -€58 million in the second quarter of 2024. Gross operating income consequently totalled €487 million, up +3.2% (+4.3% at constant exchange rates) for the period. Cost of risk amounted to -€61 million, down -15.5% compared to second quarter 2024 (-19.8% at constant exchange rates). All in all, net income Group share for CA Italia, CA Egypt, CA Poland and CA Ukraine amounted to €238 million in the second quarter of 2025, up +4.3% (and +6.4% at constant exchange rates).

    In first half 2025, International Retail Banking revenues fell by -2.5% to €2,033 million (-0.7% at constant exchange rates). Operating expenses totalled -€1,035 million, down -2.4% (-4% at constant exchange rates) from the first half of 2024, and benefited from the end of the contribution to the DGS in 2025, which had been recorded for -€58 million in the second quarter of 2024. Gross operating income totalled €998 million, down -2.6% (+2.9% at constant exchange rates). The cost of risk fell by -17.3% (-14.2% at constant exchange rates) to -€128 million compared to first half 2024. Ultimately, net income Group share of International Retail Banking was €483 million, stable in comparison with €485 million in the first half of 2024.

    At 30 June 2025, the capital allocated to International Retail Banking was €4.3 billion and risk weighted assets totalled €44.9 billion.

    Results in Italy

    In the second quarter of 2025, Crédit Agricole Italia’s revenues amounted to €767 million, down -2.2% from second quarter 2024, due to the decline in the net interest margin (-4.4% compared with the second quarter of 2024 related to the decrease in rates). The net interest margin was up +2% compared to first quarter 2025. Fee and commission income on managed assets rose significantly by +11.6% compared to second quarter 2024. Operating expenses were -€398 million, down -9.5% from second quarter 2024, due to the end of the contribution to the DGS in 2025, whereas an amount of -€58 million had been recognised in this respect in the second quarter of 2024. Excluding the DGS, expenses rose by +4.3% compared to the second quarter of 2024 because of employee and IT expenses to support the growth of the business lines.

    The cost of risk was -€45 million in the second quarter of 2025, a decrease of -26.4% from second quarter 2024, and continues to fall with an improvement in the quality of the assets and the coverage ratio. In effect, the cost of risk/outstandings (42) is 36 basis points, an improvement of 3 basis points versus the first quarter of 2025; the Non Performing Loans ratio is 2.7% and is improved from the first quarter of 2025, just like the coverage ratio which is 81.0% (+3.1 percentage points over the first quarter of 2025). This translates into a net income Group share of €172 million for CA Italia, up +12.3% compared to the second quarter of 2024.

    In first half 2025, revenues for Crédit Agricole Italia fell by -0.9% to €1,545 million. Operating expenses amounted to -€781 million, down -4.8% from the first half of 2024, and an increase of +2.4% excluding the DGS for -€58 million in the second quarter of 2024. This took gross operating income to €763 million, up +3.4% compared to first half 2024. The cost of risk amounted to -€102 million, down -17.2% compared to the first half of 2024. As a result, net income Group share of CA Italia totalled €350 million, an increase of +5.2% compared to first half 2024.

    Results for Crédit Agricole Group in Italy (43)

    In the first half of 2025, the net income Group share of entities in Italy amounted to €652 million, down -1.1% compared to the first half of 2024. The breakdown by business line is as follows: Retail Banking 54%; Specialised Financial Services 14%; Asset Gathering and Insurance 19%; and Large Customers 13%. Lastly, Italy’s contribution to net income Group share of Crédit Agricole S.A. in first half 2025 was 15%.

    International Retail Banking results – excluding Italy

    In the second quarter of 2025, revenues for International Retail Banking excluding Italy totalled €240 million, down -1.1% (+1.7% at constant exchange rates) compared to the second quarter of 2024. Revenues in Poland were up +9.5% in the second quarter of 2024 (+8.3% at constant exchange rates), boosted by net interest margin and fee and commission income. Revenues in Egypt were down -9.2% (-4.8% at constant exchange rates) with a residual base effect related to the exceptional foreign exchange activity of the second quarter of 2024. The increase in fee and commission income does not offset the slight decline in net interest margin. Operating expenses for International Retail Banking excluding Italy amounted to -€123 million, up +6.0% compared to the second quarter of 2024 (+7.5% at constant exchange rates) due to the effect of employee expenses and taxes in Poland as well as employee expenses and IT expenses in Egypt. At constant exchange rates, the jaws effect was positive by +2.6 percentage points in Poland. Gross operating income amounted to €117 million, down -7.5% (-3.6% at constant exchange rates) compared to the second quarter of 2024. The cost of risk is low at -€16 million, compared with -€11 million in the second quarter of 2024. Furthermore, at end-June 2025, the coverage ratio for loan outstandings remained high in Poland and Egypt, at 124% and 135%, respectively. In Ukraine, the local coverage ratio remains prudent (558%). All in all, the contribution of International Retail Banking excluding Italy to net income Group share was €66 million, down -11.9% compared with the second quarter of 2024 (-6.5% at constant exchange rates).

    In the first half of 2025, revenues for International Retail Banking excluding Italy totalled €488 million, down -7.1% (-1.1% at constant exchange rates) compared to the first half of 2024. Operating expenses amounted to -€254 million, up +5.9% compared to the first half of 2024 (+8.4% at constant exchange rates). The cost/income ratio stood at 52.0% at the end of June 2025, decreasing by 6.4 percentage points compared to the first half of 2024. Gross operating income amounted to €235 million, down -17.9% (-9.7% at constant exchange rates) compared to the first half of 2024. Cost of risk amounted to -€26 million, down -17.8% (-19.7% at constant exchange rates) compared to the first half of 2024. All in all, International Retail Banking excluding Italy contributed €133 million to net income Group share.

    At 30 June 2025, the entire Retail Banking business line contributed 19% to the net income Group share of Crédit Agricole S.A.’s core businesses (excluding the Corporate Centre division) and 28% to revenues excluding the Corporate Centre.

    At 30 June 2025, the division’s equity amounted to €9.6 billion. Its risk weighted assets totalled €100.6 billion.

    Corporate Centre results

    The net income Group share of the Corporate Centre was -€22 million in second quarter 2025, up +€217 million compared to second quarter 2024. The contribution of the Corporate Centre division can be analysed by distinguishing between the “structural” contribution (-€60 million) and other items (+€39 million).
    The contribution of the “structural” component (-€60 million) was up by +€184 million compared with the second quarter of 2024 and can be broken down into three types of activity:

    • The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution was -€287 million in the second quarter of 2025, up +€45 million.
    • The businesses that are not part of the business lines, such as CACIF (Private equity), CA Immobilier, CATE and BforBank (equity-accounted), and other investments. Their contribution, at +€217 million in the second quarter of 2025, was up +€140 million compared to the second quarter of 2024, including the positive impact of the Banco BPM dividend linked to an increased stake of 19.8% combined with a rise in the value of the securities (+€143 million).
    • Group support functions. Their contribution amounted to +€9 million this quarter (unchanged compared with the second quarter of 2024).

    The contribution from “other items” amounted to +€39 million, up +€32 million compared to the second quarter of 2024, mainly due to ESTER/BOR volatility factors.

    The underlying net income Group share of the Corporate Centre division in first half 2025 was -€124 million, up +€221 million compared to first half 2024. The structural component contributed -€114 million, while the division’s other items contributed -€10 million over the half-year.
    The “structural” component contribution was up +€237 million compared to first half 2024 and can be broken down into three types of activity:

    • The activities and functions of the Corporate Centre of the Crédit Agricole S.A. Parent Company. This contribution amounted to -€601 million for first half 2025, up +€26 million compared to first half 2024;
    • Business lines not attached to the core businesses, such as Crédit Agricole CIF (private equity) and CA Immobilier, BforBank and other investments: their contribution, which stood at +€469 million in first half 2025, an increase compared to the first half of 2024 (+€207 million).
    • The Group’s support functions: their contribution for the first half of 2025 was +€18 million, up +€4 million compared to the first half of 2024.

    The contribution of “other items” was down -€15 million compared to first half 2024.

    At 30 June 2025, risk weighted assets stood at €38.3 billion.

    Financial strength

    Crédit Agricole Group has the best level of solvency among European Global Systemically Important Banks.

    Capital ratios for Crédit Agricole Group are well above regulatory requirements. At 30 June 2025, the phased Common Equity Tier 1 ratio (CET1) for Crédit Agricole Group stood at 17.6%, or a substantial buffer of 7.7 percentage points above regulatory requirements. Over the quarter, the CET1 ratio remained stable, reflecting the increase in retained earnings of +31 basis points (bp), -29 bp of organic growth in the business lines, +5 bp of methodological impact and -13 bp of M&A transactions, OCI and other items.

    Crédit Agricole S.A., in its capacity as the corporate centre of the Crédit Agricole Group, fully benefits from the internal legal solidarity mechanism as well as the flexibility of capital circulation within the Crédit Agricole Group. Its phased-in CET1 ratio as at 30 June 2025 stood at 11.9%, 3.2 percentage points above the regulatory requirement, -20 bp compared to the March 2025. The change over the quarter was due to the retained earnings of +28 bp, business lines’ organic growth of -23 bp, +4 bp from methodology impacts and -33 bp from M&A transactions, OCI and other44. The proforma CET1 ratio Including M&A transactions completed after 30 June 2025 would be 11.6%.

    The breakdown of the change in Crédit Agricole S.A.’s risk weighted assets by business line is the combined result of:  +€3.4 billion for the Retail Banking divisions linked to changes in the business lines, -€0.3 billion for Asset Gathering, taking into account the increase in insurance dividends, +€1.7 billion for Specialised Financial Services, -€7.0 billion for Large Customers, linked to favourable methodology and FX impact and moderate business line growth, and  +€3.2 billion for the Corporate Centre division, notably linked to the impact of the increase in the Banco BPM stake to 19.8%.

    For the Crédit Agricole Group, the Regional Banks’ risk weighted assets increased by +€6.9 billion. The evolution of the other businesses follows the same trend as for Crédit Agricole S.A.

    Crédit Agricole Group’s financial structure

        Crédit Agricole Group   Crédit Agricole S.A.
        30/06/25 31/03/25 Exigences 30/06/25   30/06/25 31/03/25 Exigences 30/06/25
    Phased-in CET1 ratio45   17.6% 17.6% 9.88%   11.9% 12.1% 8.71%
    Tier1 ratio45   18.9% 19.0% 11.72%   14.0% 14.3% 10.52%
    Total capital ratio45   21.4% 21.8% 14.17%   17.8% 18.4% 12.94%
    Risk-weighted assets (€bn)   649 641     406 405  
    Leverage ratio   5.6% 5.6% 3.5%   3.9% 4.0% 3.0%
    Leverage exposure (€bn)   2,191 2,173     1,445 1,434  
    TLAC ratio (% RWA)45,46   27.6% 28.5% 22.4%        
    TLAC ratio (% LRE)46   8.2% 8.4% 6.75%        
    Subordinated MREL ratio (% RWA)45   27.6% 28.5% 21.6%        
    Subordinated MREL ratio (% LRE)   8.2% 8.4% 6.25%        
    Total MREL ratio (% RWA)45   32.7% 34.0% 26.2%        
    Total MREL ratio (% LRE)   9.7% 10.0% 6.25%        
    Distance to the distribution restriction trigger (€bn)47   46 46     13 14  

    For Crédit Agricole S.A., the distance to the trigger for distribution restrictions is the distance to the MDA trigger48, i.e. 318 basis points, or €13 billion of CET1 capital at 30 June 2025. Crédit Agricole S.A. is not subject to either the L-MDA (distance to leverage ratio buffer requirement) or the M-MDA (distance to MREL requirements).

    For Crédit Agricole Group, the distance to the trigger for distribution restrictions is the distance to the L-MDA trigger at 30 June 2025. Crédit Agricole Group posted a buffer of 209 basis points above the L-MDA trigger, i.e. €46 billion in Tier 1 capital.

    At 30 June 2025, Crédit Agricole Group’s TLAC and MREL ratios are well above requirements49. Crédit Agricole Group posted a buffer of 530 basis points above the M-MDA trigger, i.e. €34 billion in CET1 capital. At this date, the distance to the M-MDA trigger corresponds to the distance between the TLAC ratio and the corresponding requirement. The Crédit Agricole Group’s 2025 target is to maintain a TLAC ratio greater than or equal to 26% of RWA excluding eligible senior preferred debt.

    Liquidity and Funding

    Liquidity is measured at Crédit Agricole Group level.

    As of 31 December 2024, changes have been made to the presentation of the Group’s liquidity position (liquidity reserves and balance sheet, breakdown of long-term debt). These changes are described in the 2024 Universal Registration Document.

    Diversified and granular customer deposits remain stable compared to March 2025 (€1,147 billion at end-June 2025).

    The Group’s liquidity reserves, at market value and after haircuts50, amounted to €471 billion at 30 June 2025, down -€16 billion compared to 31 March 2025.

    Liquidity reserves covered more than twice the short-term debt net of treasury assets.

    This change in liquidity reserves is notably explained by:

    • The decrease in the securities portfolio (HQLA and non-HQLA) for -€7 billion;
    • The decrease in collateral already pledged to Central Banks and unencumbered for -€13 billion, linked to the decline in self-securitisations for -€7 billion and the decrease in receivables eligible for central bank for -€6 billion;
    • The increase in central bank deposits for +€4 billion.

    Crédit Agricole Group also continued its efforts to maintain immediately available reserves (after recourse to ECB financing). Central bank eligible non-HQLA assets after haircuts amounted to €131 billion.

    Standing at €1,696 billion at 30 June 2025, the Group’s liquidity balance sheet shows a surplus of stable funding resources over stable application of funds of €179 billion, down -€18 billion compared with end-March 2025. This surplus remains well above the Medium-Term Plan target of €110bn-€130bn.

    Long term debt was €316 billion at 30 June 2025, slightly up compared with end-March 2025. This included:

    • Senior secured debt of €93 billion, up +€4 billion;
    • Senior preferred debt of €162 billion;
    • Senior non-preferred debt of €38 billion, down -€2 billion due to the MREL/TLAC eligible debt;
    • And Tier 2 securities of €23 billion, down -€1 billion.

    Credit institutions are subject to a threshold for the LCR ratio, set at 100% on 1 January 2018.

    At 30 June 2025, the average LCR ratios (calculated on a rolling 12-month basis) were 137% for Crédit Agricole Group (representing a surplus of €87 billion) and 142% for Crédit Agricole S.A. (representing a surplus of €84 billion). They were higher than the Medium-Term Plan target (around 110%).

    In addition, the NSFR of Crédit Agricole Group and Crédit Agricole S.A. exceeded 100%, in accordance with the regulatory requirement applicable since 28 June 2021 and above the Medium-Term Plan target (>100%).

    The Group continues to follow a prudent policy as regards medium-to-long-term refinancing, with a very diversified access to markets in terms of investor base and products.

    At 30 June 2025, the Group’s main issuers raised the equivalent of €21.3 billion51in medium-to-long-term debt on the market, 84% of which was issued by Crédit Agricole S.A.

    In particular, the following amounts are noted for the Group excluding Crédit Agricole S.A.:

    • Crédit Agricole Assurances issued €750 million in RT1 perpetual NC10.75 year;
    • Crédit Agricole Personal Finance & Mobility issued:
      • €1 billion in EMTN issuances through Crédit Agricole Auto Bank (CAAB);
      • €420 million in securitisations through Agos;
    • Crédit Agricole Italia issued one senior secured debt issuance for a total of €1 billion;
    • Crédit Agricole next bank (Switzerland) issued two tranches in senior secured format for a total of 200 million Swiss francs, of which 100 million Swiss francs in Green Bond format.

    At 30 June 2025, Crédit Agricole S.A. raised the equivalent of €16.5 billion through the market 51,52.

    The bank raised the equivalent of €16.5 billion, of which €7.3 billion in senior non-preferred debt and €2.8 billion in Tier 2 debt, as well as €1.7 billion in senior preferred debt and €4.7 billion in senior secured debt at end-June. The financing comprised a variety of formats and currencies, including:

    • €2.75 billion 52,53 ;
    • 5.4 billion US dollars (€5.1 billion equivalent);
    • 1.6 billion pounds sterling (€1.9 billion equivalent);
    • 179.3 billion Japanese yen (€1.1 billion equivalent);
    • 0.4 billion Singapore dollars (€0.3 billion equivalent);
    • 0.6 billion Australian dollars (€0.4 billion equivalent);
    • 0.3 billion Swiss francs (€0.3 billion equivalent).

    At end-June, Crédit Agricole S.A. had issued 77%52,53 of its funding plan in currencies other than the euro.

    In addition, on 13 February 2025, Crédit Agricole S.A. issued a PerpNC10 AT1 bond for €1.5 billion at an initial rate of 5.875% and announced on 30 April 2025 the regulatory call exercise for the AT1 £ with £103m outstanding (XS1055037920) – ineligible, grandfathered until 28/06/2025 – redeemed on 30/06/2025.

    The 2025 MLT market funding programme was set at €20 billion, with a balanced distribution between senior preferred or senior secured debt and senior non-preferred or Tier 2 debt.

    The programme was 82% completed at 30 June 2025, with:

    • €4.7 billion in senior secured debt;
    • €1.7 billion equivalent in senior preferred debt;
    • €7.3 billion equivalent in senior non-preferred debt;
    • €2.8 billion equivalent in Tier 2 debt.

    Economic and financial environment

    Review of the first half of 2025

    An even more conflict-ridden and unpredictable environment, causing a slowdown

    The first half of the year took place in an even more conflict-ridden and unpredictable environment, marked by open wars and powerful geopolitical and trade tensions. The war in Ukraine remained a major unresolved issue: President Trump’s initiatives aimed at ending the conflict proved fruitless, while signalling a strategic shift in US policy, notably away from protecting European territory. President Trump’s statements on NATO (demanding that military spending be increased to 5% of GDP) forced Europe to accelerate the overhaul of its defence strategy, as evidenced by the announcement of a white paper detailing defence support measures worth €800 billion. With the Israeli-Palestinian conflict continuing without any lasting political solution in sight, international tensions peaked in June with Israel’s attack on Iran, quickly joined by its US ally. After twelve days of clashes, a ceasefire was announced on 24 June.

    Donald Trump’s return to the US presidency has obviously resulted in a protectionist offensive of unexpected violence. This offensive culminated in “Liberation Day” on 2 April, when “reciprocal” tariffs were imposed on all of the United States’ trading partners. While China was particularly targeted, the European Union was also severely affected; even the countries participating in the North American Free Trade Agreement (NAFTA, United States, Canada, Mexico) were not spared, as they were subject to sector-specific tariffs applicable everywhere (steel, aluminium, automobiles, semiconductors). However, these announcements were followed by a presidential U-turn on 9 April, with reciprocal tariffs being lowered to 10% and a 90-day truce agreed upon to allow for the negotiation of bilateral trade agreements. At the end of this pause (9 July), the US president decided to extend it (to 1 August), offering hope to major trading partners (the European Union, Japan and South Korea) that agreements could be reached to reduce tariffs, while leaving economic players in uncertainty about international trade conditions. Only the United Kingdom, China and Vietnam have signed an agreement.

    The unpredictability of US trade policy, characterised by dramatic announcements followed by partial reversals, has created ongoing uncertainty. In the first half of the year, this was reflected in mixed economic and financial performances across countries, suggesting a more pronounced global slowdown. The IMF has therefore revised its global growth forecast for 2025 downwards to 2.8% (a decrease of -0.5 percentage points (pp) compared to its January forecast and the growth observed in 2024).

    The US economy has shown early signs of slowing down, hit by weaker consumer spending and, above all, a sharp rise in imports as companies seek to build up stocks ahead of the entry into force of new tariffs. GDP contracted by 0.5% in the first quarter (annualised quarter-on-quarter change). After moderating but remaining above the Federal Reserve’s (Fed) 2% target, inflation (year-on-year) stood at 2.7% in June (after 2.4% in May). Core inflation (excluding volatile components, food and energy) reached 2.9%; the increase in tariffs (although not yet finalised) already seems to be visible in the cost of certain goods (furniture, textiles and clothing, household appliances). Despite this turbulence, the job market has stayed relatively strong (unemployment rate at 4.2% in May, still within the narrow range it has been in since May 2024), providing some stability for an otherwise fragile economy.

    In China, despite a very difficult external environment and punitive US tariffs, growth (5.4% and 5.2% in the first and second quarters) stabilised above the official target of 5% for 2025. While consumption is sluggish, a weakness reflected in the absence of inflation (which has not exceeded 1% year-on-year since February 2024), exports have continued to accelerate, making a surprising contribution to growth. At 2.1 percentage points in the first quarter of 2025, the contribution from net external demand reached an historic high (excluding Covid), reflecting China’s undisputed dominance in global manufacturing, although temporary positive effects (anticipation of US tariffs at the beginning of the year) should not be overlooked.

    In an unfavourable environment, the eurozone held up well, with growth initially estimated at 0.3% (quarter-on-quarter) and then revised upwards (0.6%, or 1.5% year-on-year). Growth in the eurozone was mainly driven by investment, followed by net external demand and finally household consumption (with respective contributions to growth of 0.4 pp, 0.3 pp and 0.1 pp), while inventories subtracted 0.1 pp from growth and final public expenditure was “neutral”. This overall performance continued to mask varying national fortunes: among the largest member countries, Spain continued to post very strong growth (0.6%) and Germany saw an upturn (0.4%), while Italy and France posted fairly sustained (0.3%) and weak (0.1%) growth rates, respectively. Continued disinflation (to 1.9% year-on-year in May after 2.2% in April and 2.6% in May 2024) and anchored expectations made it possible for the ECB to continue its monetary easing, reassured by the convergence of inflation towards its 2% target.

    In France, in particular, after benefiting from the boost provided by the Paris Olympic and Paralympic Games in the third quarter of 2024 (+0.4% quarter-on-quarter), activity declined slightly in the last quarter of last year (-0.1%) due to after-effects. It picked up again in the first quarter of 2025, but growth remained weak (+0.1%). Domestic demand, which contributed negatively to growth, is largely responsible for this sluggishness. Household consumption declined (-0.2%), undermined by a record savings rate (18% of household disposable income, compared with 15.4% in the eurozone) for 45 years (excluding the Covid period), while public consumption slowed (+0.2% after +0.4%). Investment continued to stagnate, reflecting the fact that companies in France are more indebted than in the rest of the eurozone (making them more vulnerable to past interest rate hikes) and the budgetary efforts of public administrations to reduce the public deficit. As a result, domestic demand weighed on growth in the first quarter (-0.1 pp). However, it was mainly foreign trade that undermined growth (-0.8 pp) due to the collapse of exports, particularly in the aerospace sector. Unlike its European peers, France did not benefit from the sharp rise in global trade in the first quarter (+1.7%) in anticipation of US tariffs.

    In terms of monetary policy, the first half of 2025 was marked by a notable divergence between the status quo of the Federal Reserve (Fed) and the continued easing by the European Central Bank (ECB). The ECB cut interest rates four times by 25 basis points (bp) each, bringing the cumulative reduction in the deposit rate (2% since 11 June) to 200 bp since the start of easing (June 2024). However, after cutting its policy rate by 100 bp in 2024 (to 4.50%), the Fed kept rates unchanged due to overly modest progress on inflation, even though growth did not appear to be definitively at risk. Inflationary risks linked to tariffs led it to adopt a very cautious stance, which was widely criticised by President Trump.
    The financial markets, while remaining subject to bouts of nervousness prompted by geopolitical events, generally kept pace with Donald Trump’s stated ambitions, their feasibility and his U-turns. Thus, the theme of the American exception at the beginning of the year (growth exceeding potential, resilience despite interest rates set to rise, the privileged status of the dollar, unlimited capacity to borrow and shift risks to the rest of the world) has been supplanted by disenchantment with US assets following “Liberation Day”. Following the president’s backtracking and announcement of a 90-day pause, serious doubts were raised about his ability to truly deliver on his domestic and international commitments. Periods marked by exaggerated negativity have therefore alternated with periods dominated by equally exaggerated positivity.

    Bond markets therefore experienced mixed movements. During the first half of the year, in the United States, the decline in yields (54) on short maturities was ultimately quite sharp (nearly 60 bp for the two-year swap rate to nearly 3.50%) and exceeded that of the ten-year swap rate (down 38 bp to 3.69%), giving the curve a steeper slope. Despite Moody’s rating downgrade, the yield on 10-year sovereign bonds (US Treasuries) fell in line with the swap rate for the same maturity, which it now exceeds by more than 50 bp (at 4.23%). In the eurozone, the steepening effect was less pronounced and unfolded differently: there was a less marked decline in the two-year swap rate (from 22 bp to 1.90%) and an increase in the ten-year swap rate (from 23 bp to 2.57%). Under the influence of the Merz government’s expansionary budget programme, the German 10-year yield (Bund) rose (24 bp to 2.61%) and exceeded the swap rate for the same maturity by a few basis points. Ten-year swap spreads on benchmark European sovereign bonds narrowed in the first half of the year, with Italy posting the strongest performance (spread down 27 bp to 90 bp). This improvement reflects a more favourable perception of Italy’s public finances and a degree of political stability, in contrast to the turbulence of previous years. Italian growth also showed unexpected resilience in the face of trade tensions. Penalised since the dissolution of parliament in June 2024 by a damaging lack of a parliamentary majority and severely deteriorated public finances, the French spread nevertheless narrowed during the half-year, falling from a high level (85 bp) to 71 bp. It now exceeds the Spanish spread (at 67 bp).

    On the equity markets, European indexes outperformed their US counterparts, with the Euro Stoxx 50 up 10% since the start of the year (and a spectacular rise of nearly 25% for the banking sector), while the S&P 500, which was much more volatile over the period, rose by nearly 7%, buoyed by high-tech stocks. The US dollar lost some of its lustre amid economic and international policy uncertainty, with the euro appreciating by 14% against the dollar and 6% in nominal effective terms. Finally, the price of gold rose by 26% in the first half of the year, reaching a record high of US$3,426 per ounce in April, confirming its status as a preferred safe haven during this period of intense uncertainty.

    2025–2026 Outlook

    An anxiety-inducing context, some unprecedented resistance

    The economic and financial scenario, which has already had to contend with the volatility and unpredictability of US economic policy, is unfolding against an even more uncertain international backdrop, in which the risk of disruptive events (blockade of the Strait of Hormuz, incidents affecting infrastructure in the Gulf etc.) cannot be entirely ruled out.

    Our economic scenario for the United States has always been based on a two-step sequence in line with the pace of the economic policy planned by Donald Trump: a positive impact on inflation but a negative impact on growth from tariffs (which fall within the president’s prerogatives), followed by a positive but delayed effect from aggressive budgetary policy (which requires congressional approval). Although our forecasts for 2025 have been revised slightly downwards, our US scenario remains on track, in line with the timetable for economic policy measures: while avoiding recession, growth is expected to slow sharply in 2025, coupled with a pick-up in inflation, before regaining momentum in 2026.

    Even with the recent de-escalation, tariff rates remain significantly higher than they were before Donald Trump’s second election. The negative impact of the new trade policy is the main driver of the decline in the growth forecast for 2025 (1.5% after 2.8% in 2024), while more favourable aspects (the “One Big Beautiful Bill”, tax cuts and deregulation) should contribute to the expected upturn in 2026 (2.2%). The possibility of a recession in 2025 has been ruled out due to solid fundamentals, including lower sensitivity to interest rates, very healthy household finances and a labour market that remains relatively robust, even if there are signs of deterioration. Despite the expected slowdown in growth, our inflation forecasts have been revised upwards. Tariffs are expected to cause year-on-year inflation to rise by around 80 basis points (bp) at peak impact. Although this effect is temporary, inflation (annual average) is expected to reach 2.9% in 2025 and 2.7% in 2026. It is therefore expected to continue to exceed 2%, with underlying inflation stabilising at around 2.5% at the end of 2026.

    In a conflict-ridden and unpredictable external environment, Europe is expected to find salvation in domestic demand, allowing it to better withstand the global slowdown. Two alternative scenarios, between which the balance is delicate, are likely to unfold: a scenario of resilience in the eurozone economy based on an increase in private spending but also, and perhaps above all, in public spending on defence and infrastructure; a scenario of stagnating activity under the effect of a series of negative shocks: competitiveness shocks linked to higher tariffs, appreciation of the euro and the negative impact of uncertainty on private confidence.

    We favour the scenario of resilience against a backdrop of a buoyant labour market, a healthy economic and financial situation for the private sector and a favourable credit cycle. The effective implementation of additional public spending, particularly the “German bazooka”(55), certainly needs to be confirmed. However, this spending could provide the eurozone with growth driven by stronger domestic demand at a time when global growth is slowing. It would offer a type of exceptionalism, especially compared to the past decade, which would put eurozone growth above its medium-term potential. Average annual growth in the eurozone is expected to accelerate slightly in 2025 to 0.9% and strengthen to 1.3% in 2026. Average inflation is expected to continue to moderate, reaching 2.1% and 1.8% in 2025 and 2026, respectively.

    In Germany, the sluggish economy should return to robust growth. Although more exposed than its partners to protectionist policies, the economy should be boosted by the public investment plan. This plan and the removal of barriers to financing infrastructure and defence investment that had previously seemed insurmountable give hope for a significant, albeit not immediate, recovery. While the effects are likely to be minimal in 2025 due to implementation delays, a significant flow of funds is expected in 2026, with positive spillover effects for Germany’s European neighbours and the eurozone as a whole. German growth could recover significantly, rising from -0.2% in 2024 to 0.1% in 2025 and, above all, 1.2% in 2026. In France, growth is expected to remain sluggish in the second quarter of 2025, before accelerating slightly in the second half of the year. The real upturn would not come until 2026, driven by a recovery in investment and the initial favourable impact of German government measures. The risks remain mainly on the downside for activity in the short term. Our scenario assumes growth rates of 0.6% and 1.2% in 2025 and 2026, respectively (after 1.1% in 2024). In Italy, incomplete catching-up and a recent decline in purchasing power, despite strong employment, are likely to limit the potential for a recovery in household consumption. Positive surprises on the investment front are likely to continue, thanks to improved financing conditions and subsidies for the energy and digital transitions. While the recent weakness in industrial orders may weigh on productive investment, construction is holding up well. However, doubts remain about growth potential, with post-pandemic sector allocation favouring less productive sectors. Growth is expected to reach 0.6% in 2025 and 0.7% in 2026 (after 0.7% in 2024).

    The central scenario for the eurozone (developed and quantified in June) assumes that the tariff dispute with the United States will remain unchanged as of 4 June, i.e. a general increase in tariffs to 10% (except for exempted products), 25% on cars and 50% on steel. The risks associated with this central scenario are bearish. The stagnation scenario could materialise if the trade dispute with the United States were to escalate, if competitive pressures were to intensify, if private confidence were to deteriorate significantly and, finally, if fiscal stimulus were to be implemented more gradually than anticipated.

    Such an uncertain environment, characterised by global slowdown and shrinking export opportunities, would certainly have led in the past (and not so long ago) to underperformance by emerging economies, which are further hampered by risk aversion in the markets, higher interest rates and pressure on their currencies. However, despite tariffs (the effects of which will obviously vary greatly from one economy to another), our scenario remains broadly optimistic for the major emerging countries. These countries could show unprecedented resilience thanks to support measures that are likely to partially cushion the impact of an unfavourable environment: relatively strong labour markets, fairly solid domestic demand, monetary easing (with a few exceptions), and a limited slowdown in China (after holding up well in the first half of the year, growth is expected to approach 4.5% in 2025 due to the anticipated slowdown in the second half linked to the trade war). Finally, emerging market currencies have held up well and the risk of defensive rate hikes, which would weigh heavily on growth, is lower than might have been feared. However, these relatively positive prospects are accompanied by higher-than-usual risks due to the unpredictability of US policy.

    In terms of monetary policy, the end of the easing cycles is drawing nearer. In the US, the scenario (a sharp slowdown in 2025, an upturn in 2026 and inflation continuing to significantly exceed the target) and the uncertainties surrounding it should encourage the Fed to remain patient, despite Donald Trump’s calls for a more accommodative policy. The Fed is likely to proceed with a slight easing followed by a long pause. Our scenario still assumes two cuts in 2025, but pushes them back by one quarter (to September and December, from June and September previously). After these two cuts, the Fed is likely to keep rates unchanged with a maximum upper limit of 4% throughout 2026.

    As for the ECB, although it refuses to rule out any future rate cuts, it may well have reached the end of its easing cycle due to an expected recovery in growth and inflation on target. Of course, a deterioration in the economic environment would justify further easing: the ECB stands ready to cut rates if necessary. Our scenario assumes that the deposit rate will remain at 2% in 2026.

    On the interest rate front, in the United States, persistent inflationary risks and a budgetary trajectory deemed unsustainable, a compromised AAA rating, the volatility of economic decisions and heightened investor concerns are exerting upward pressure. Our scenario assumes a 10-year US Treasury yield of around 4.70% at the end of 2025 and 4.95% at the end of 2026. In the eurozone, resilient growth that is expected to accelerate, inflation on target and the ECB believed to have almost completed its easing cycle point to a slight rise in interest rates and a stabilisation or even tightening of sovereign spreads. The German 10-year yield (Bund) could thus approach 2.90% at the end of 2025 and 2.95% at the end of 2026. For the same maturity, the spread offered by France relative to the Bund would fluctuate around 60/65 bp, while Italy’s would narrow to 90 bp by the end of 2026.

    Finally, the US dollar continues to lose ground. The inconsistency and unpredictability of Donald Trump’s economic policies, the deteriorating US budget outlook and speculation about official plans to devalue the dollar, combined with resistance from other economies, are all factors putting pressure on the dollar, although this does not necessarily spell the end of its status as a key reserve currency in the short term. The euro/dollar exchange rate is expected to settle at 1.17 in the fourth quarter of 2025, before depreciating in 2026 (1.10).

    Appendix 1 – Crédit Agricole Group: income statement by business line

    Credit Agricole Group – Results par by business line, Q2-25 and Q2-24

      Q2-25
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 3,364 976 1,031 1,967 881 2,224 (635) 9,808
    Operating expenses (2,690) (597) (540) (864) (438) (1,257) 514 (5,872)
    Gross operating income 674 380 491 1,104 442 967 (121) 3,936
    Cost of risk (397) (95) (61) (7) (235) (20) (26) (840)
    Equity-accounted entities 1 – – 58 (13) 10 – 56
    Net income on other assets 1 1 0 449 1 0 0 452
    Income before tax 278 286 430 1,604 194 958 (147) 3,604
    Tax (96) (69) (130) (249) (58) (149) 136 (615)
    Net income from discontinued or held-for-sale ope. – – 0 – – – 0 0
    Net income 182 218 300 1,356 136 810 (11) 2,990
    Non-controlling interests (0) (0) (40) (247) (22) (43) 1 (352)
    Net income Group Share 182 217 260 1,108 114 767 (10) 2,638
      Q2-24
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 3,255 979 1,051 1,946 889 2,223 (837) 9,507
    Operating expenses (2,560) (591) (573) (813) (443) (1,204) 497 (5,687)
    Gross operating income 694 389 477 1,133 447 1,019 (340) 3,819
    Cost of risk (444) (95) (75) (2) (211) (39) (6) (872)
    Equity-accounted entities 2 – – 33 29 10 – 74
    Net income on other assets 1 2 0 (12) (1) 2 (0) (7)
    Income before tax 253 296 402 1,152 265 993 (347) 3,014
    Tax (44) (65) (117) (282) (54) (248) 48 (762)
    Net income from discontinued or held-for-sale ope. – – – – – – – –
    Net income 209 231 285 870 210 745 (299) 2,252
    Non-controlling interests (1) (0) (38) (124) (23) (36) (2) (224)
    Net income Group Share 208 231 247 746 187 710 (300) 2,028

    Credit Agricole Group – Results par by business line, H1-25 and H1-24

      H1-25
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 6,716 1,939 2,079 4,016 1,749 4,632 (1,275) 19,856
    Operating expenses (5,220) (1,222) (1,075) (1,799) (912) (2,617) 982 (11,864)
    Gross operating income 1,496 717 1,003 2,217 837 2,015 (293) 7,992
    Cost of risk (717) (186) (128) (17) (484) 5 (48) (1,575)
    Equity-accounted entities 7 – – 86 23 16 – 131
    Net income on other assets 3 2 0 449 1 0 0 456
    Income before tax 790 533 875 2,734 376 2,036 (341) 7,004
    Tax (267) (181) (267) (599) (71) (453) 182 (1,656)
    Net income from discontinued or held-for-sale ope. – – 0 – – – – 0
    Net income 523 352 608 2,135 305 1,583 (159) 5,348
    Non-controlling interests (0) (0) (82) (348) (43) (78) 7 (545)
    Net income Group Share 523 352 526 1,787 263 1,504 (151) 4,803
      H1-24
    €m RB LCL IRB AG SFS LC CC Total
                     
    Revenues 6,568 1,933 2,131 3,739 1,736 4,489 (1,565) 19,031
    Operating expenses (5,044) (1,193) (1,098) (1,567) (897) (2,501) 1,024 (11,276)
    Gross operating income 1,524 740 1,033 2,172 839 1,988 (541) 7,755
    Cost of risk (691) (214) (159) (5) (429) (5) (20) (1,523)
    Equity-accounted entities 7 – – 61 59 14 – 142
    Net income on other assets 3 4 (0) (20) (1) 2 (2) (14)
    Income before tax 842 530 875 2,208 468 1,999 (563) 6,361
    Tax (191) (119) (260) (501) (97) (482) 133 (1,517)
    Net income from discontinued or held-for-sale ope. – – – – – – – –
    Net income 651 412 615 1,707 372 1,517 (430) 4,843
    Non-controlling interests (1) (0) (89) (236) (42) (69) 6 (432)
    Net income Group Share 650 412 525 1,471 330 1,448 (424) 4,412

    Appendix 2 – Crédit Agricole S.A.: ‍ Income statement by business line

    Crédit Agricole S.A. – Results par by business line, Q2-25 and Q2-24

      Q2-25
    €m AG LC SFS FRB (LCL) IRB CC Total
                   
    Revenues 1,970 2,224 881 976 1,007 (51) 7,006
    Operating expenses (864) (1,257) (438) (597) (520) (25) (3,700)
    Gross operating income 1,106 967 442 380 487 (76) 3,306
    Cost of risk (7) (20) (235) (95) (61) (24) (441)
    Equity-accounted entities 58 10 (13) – – (24) 30
    Net income on other assets 453 0 1 1 0 0 455
    Income before tax 1,610 958 194 286 426 (125) 3,350
    Tax (249) (149) (58) (69) (129) 113 (541)
    Net income from discontinued or held-for-sale operations – – – – 0 – 0
    Net income 1,361 810 136 218 297 (12) 2,809
    Non-controlling interests (261) (58) (22) (10) (59) (10) (420)
    Net income Group Share 1,100 752 114 208 238 (22) 2,390
      Q2-24  
    €m AG LC SFS FRB (LCL) IRB CC Total  
                   
    Revenues 1,944 2,223 889 979 1,027 (267) 6,796
    Operating expenses (813) (1,204) (443) (591) (555) (15) (3,621)
    Gross operating income 1,131 1,019 447 389 472 (283) 3,175
    Cost of risk (2) (39) (211) (95) (72) (5) (424)
    Equity-accounted entities 33 10 29 – – (25) 47
    Net income on other assets (12) 2 (1) 2 0 24 15
    Income before tax 1,150 993 265 296 400 (289) 2,814
    Tax (283) (248) (54) (65) (117) 63 (704)
    Net income from discontinued or held-for-sale operations – – – – – – –
    Net income 867 745 210 231 283 (226) 2,110
    Non-controlling interests (131) (51) (23) (10) (55) (12) (282)
    Net income Group Share 736 694 187 220 228 (238) 1,828

    Crédit Agricole S.A. – Results par by business line, H1-25 and H1-24

      H1-25
    €m AG LC SFS FRB (LCL) IRB CC Total
                   
    Revenues 4,028 4,632 1,749 1,939 2,033 (118) 14,263
    Operating expenses (1,799) (2,617) (912) (1,222) (1,035) (106) (7,691)
    Gross operating income 2,229 2,015 837 717 998 (224) 6,571
    Cost of risk (17) 5 (484) (186) (128) (45) (855)
    Equity-accounted entities 86 16 23 – – (47) 77
    Net income on other assets 453 0 1 2 0 0 456
    Income before tax 2,749 2,037 376 533 870 (316) 6,250
    Tax (601) (454) (71) (181) (266) 205 (1,368)
    Net income from discontinued or held-for-sale operations – – – – 0 – 0
    Net income 2,148 1,583 305 352 604 (111) 4,882
    Non-controlling interests (368) (108) (43) (16) (121) (13) (669)
    Net income Group Share 1,780 1,475 263 337 483 (124) 4,213
      H1-24  
    €m AG LC SFS FRB (LCL) IRB CC Total  
                   
    Revenues 3,733 4,489 1,736 1,933 2,085 (374) 13,602
    Operating expenses (1,567) (2,501) (897) (1,193) (1,060) (71) (7,289)
    Gross operating income 2,166 1,988 839 740 1,024 (445) 6,312
    Cost of risk (5) (5) (429) (214) (154) (16) (824)
    Equity-accounted entities 61 14 59 – – (46) 90
    Net income on other assets (20) 2 (1) 4 (0) 24 9
    Income before tax 2,203 1,999 468 530 870 (483) 5,587
    Tax (502) (482) (97) (119) (259) 144 (1,315)
    Net income from discontinued or held-for-sale operations – – – – – – –
    Net income 1,701 1,517 372 412 610 (339) 4,273
    Non-controlling interests (248) (101) (42) (18) (126) (7) (542)
    Net income Group Share 1,453 1,416 330 393 485 (345) 3,731

    Appendix 3 – Data per share

    Credit Agricole S.A. – Earnings p/share, net book value p/share and ROTE
                   
    €m   Q2-25 Q2-24   H1-25 H1-24  
    Net income Group share   2,390 1,828   4,213 3,731  
    – Interests on AT1, including issuance costs, before tax   (141) (83)   (270) (221)  
    – Foreign exchange impact on reimbursed AT1   4 –   4 (247)  
    NIGS attributable to ordinary shares [A] 2,252 1,745   3,947 3,263  
    Average number shares in issue, excluding treasury shares (m) [B] 3,025 3,025   3,025 3,008  
    Net earnings per share [A]/[B] 0.74 € 0.58 €   1.30 € 1.08 €  
                   
    €m         30/06/25 30/06/24  
    Shareholder’s equity Group share         75,528 70,396  
    – AT1 issuances         (8,612) (7,164)  
    – Unrealised gains and losses on OCI – Group share         872 1,305  
    Net book value (NBV), not revaluated, attributable to ordin. sh. [D]       67,787 64,537  
    – Goodwill & intangibles** – Group share         (18,969) (17,775)  
    Tangible NBV (TNBV), not revaluated attrib. to ordinary sh. [E]       48,818 46,763  
    Total shares in issue, excluding treasury shares (period end, m) [F]       3,025 3,025  
    NBV per share, after deduction of dividend to pay (€) [D]/[F]       22.4 € 21.3 €  
    TNBV per share, after deduction of dividend to pay (€) [G]=[E]/[F]       16.1 € 15.5 €  
    ** y compris les écarts d’acquisition dans les participations ne donnant pas le contrôle             
    €m         H1-25 H1-24  
    Net income Group share       4,213 3,731  
    Added value Amundi US         304 0  
    Additionnal corporate tax         -129 0  
    IFRIC         -173 -110  
    NIGS annualised (1) [N]       8,382 7,572  
    Interests on AT1, including issuance costs, before tax, foreign exchange impact, annualised [O]       -536 -689  
    Result adjusted [P] = [N]+[O]       7,846 6,884    
    Tangible NBV (TNBV), not revaluated attrib. to ord. shares – average*** (2) [J]       47,211 44,710    
    ROTE adjusted (%) = [P] / [J]       16.6% 15.4%  
    *** including assumption of dividend for the current exercise         0,0%    
                 

    (1)ROTE calculated on the basis of an annualised underlying net income Group share and linearised IFRIC costs over the year
    (2)Average of the NTBV not revalued attributable to ordinary shares. calculated between 31/12/2024 and 30/06/2025 (line [E]), restated with an assumption of dividend for current exercises

    Alternative Performance Indicators56

    NBV Net Book Value (not revalued)
    The Net Book Value not revalued corresponds to the shareholders’ equity Group share from which the amount of the AT1 issues, the unrealised gains and/or losses on OCI Group share and the pay-out assumption on annual results have been deducted.

    NBV per share Net Book Value per share – NTBV Net Tangible Book Value per share
    One of the methods for calculating the value of a share. This represents the Net Book Value divided by the number of shares in issue at end of period, excluding treasury shares.

    Net Tangible Book Value per share represents the Net Book Value after deduction of intangible assets and goodwill, divided by the number of shares in issue at end of period, excluding treasury shares.

    EPS Earnings per Share
    This is the net income Group share, from which the AT1 coupon has been deducted, divided by the average number of shares in issue excluding treasury shares. It indicates the portion of profit attributable to each share (not the portion of earnings paid out to each shareholder, which is the dividend). It may decrease, assuming the net income Group share remains unchanged, if the number of shares increases.

    Cost/income ratio
    The cost/income ratio is calculated by dividing operating expenses by revenues, indicating the proportion of revenues needed to cover operating expenses.

    Cost of risk/outstandings
    Calculated by dividing the cost of credit risk (over four quarters on a rolling basis) by outstandings (over an average of the past four quarters, beginning of the period). It can also be calculated by dividing the annualised cost of credit risk for the quarter by outstandings at the beginning of the quarter. Similarly, the cost of risk for the period can be annualised and divided by the average outstandings at the beginning of the period.

    Since the first quarter of 2019, the outstandings taken into account are the customer outstandings, before allocations to provisions.

    The calculation method for the indicator is specified each time the indicator is used.

    Doubtful loan
    A doubtful loan is a loan in default. The debtor is considered to be in default when at least one of the following two conditions has been met:

    • a payment generally more than 90 days past due, unless specific circumstances point to the fact that the delay is due to reasons independent of the debtor’s financial situation.
    • the entity believes that the debtor is unlikely to settle its credit obligations unless it avails itself of certain measures such as enforcement of collateral security right.

    Impaired loan
    Loan which has been provisioned due to a risk of non-repayment.

    Impaired (or non-performing) loan coverage ratio 
    This ratio divides the outstanding provisions by the impaired gross customer loans.

    Impaired (or non-performing) loan ratio 
    This ratio divides the impaired gross customer loans on an individual basis, before provisions, by the total gross customer loans.

    Net income Group share
    Net income/(loss) for the financial year (after corporate income tax). Equal to net income Group share, less the share attributable to non-controlling interests in fully consolidated subsidiaries.

    Net income Group share attributable to ordinary shares
    The net income Group share attributable to ordinary shares represents the net income Group share from which the AT1 coupon has been deducted, including issuance costs before tax.

    RoTE Return on Tangible Equity
    The RoTE (Return on Tangible Equity) measures the return on tangible capital by dividing the Net income Group share annualised by the Group’s NBV net of intangibles and goodwill. The annualised Net income Group share corresponds to the annualisation of the Net income Group share (Q1x4; H1x2; 9Mx4/3) excluding impairments of intangible assets and restating each period of the IFRIC impacts in order to linearise them over the year.

    Disclaimer

    The financial information on Crédit Agricole S.A. and Crédit Agricole Group for second quarter and first half 2025 comprises this presentation and the attached appendices and press release which are available on the website: https://www.credit-agricole.com/finance/publications-financieres.

    This presentation may include prospective information on the Group, supplied as information on trends. This data does not represent forecasts within the meaning of EU Delegated Act 2019/980 of 14 March 2019 (Chapter 1, article 1, d).

    This information was developed from scenarios based on a number of economic assumptions for a given competitive and regulatory environment. Therefore, these assumptions are by nature subject to random factors that could cause actual results to differ from projections. Likewise, the financial statements are based on estimates, particularly in calculating market value and asset impairment.

    Readers must take all these risk factors and uncertainties into consideration before making their own judgement.

    Applicable standards and comparability

    The figures presented for the six-month period ending 30 June 2025 have been prepared in accordance with IFRS as adopted in the European Union and applicable at that date, and with the applicable regulations in force. This financial information does not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

    Note: The scopes of consolidation of the Crédit Agricole S.A. and Crédit Agricole groups have not changed materially since the Crédit Agricole S.A. 2024 Universal Registration Document and its A.01 update (including all regulatory information about the Crédit Agricole Group) were filed with the AMF (the French Financial Markets Authority).

    The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding.

    Financial Agenda

    30 October 2025                Publication of the 2025 third quarter and first nine months results
    18 November 2025        Presentation of the Medium-Term Plan
    4 February 2026                Publication of the 2025 fourth quarter and full year results
    30 April 2026                Publication of the 2026 first quarter results
    20 May 2026                2026 General Meeting
    31 July 2026                Publication of the 2026 second quarter and the first half-year results
    30 October 2026                Publication of the 2026 third quarter and first nine months results

    Contacts

    CREDIT AGRICOLE PRESS CONTACTS

    CRÉDIT AGRICOLE S.A. INVESTOR RELATIONS CONTACTS

    Institutional investors   investor.relations@credit-agricole-sa.fr
    Individual shareholders + 33 800 000 777 (freephone number – France only) relation@actionnaires.credit-agricole.com
         
    Cécile Mouton + 33 1 57 72 86 79 cecile.mouton@credit-agricole-sa.fr
     

    Equity investor relations:

    		    
    Jean-Yann Asseraf
    Fethi Azzoug    		 + 33 1 57 72 23 81
    + 33 1 57 72 03 75    		 jean-yann.asseraf@credit-agricole-sa.fr fethi.azzoug@credit-agricole-sa.fr
    Oriane Cante + 33 1 43 23 03 07 oriane.cante@credit-agricole-sa.fr
    Nicolas Ianna + 33 1 43 23 55 51 nicolas.ianna@credit-agricole-sa.fr
    Leila Mamou + 33 1 57 72 07 93 leila.mamou@credit-agricole-sa.fr
    Anna Pigoulevski + 33 1 43 23 40 59 anna.pigoulevski@credit-agricole-sa.fr
         
         
    Debt investor and rating agency relations:  
    Gwenaëlle Lereste + 33 1 57 72 57 84 gwenaelle.lereste@credit-agricole-sa.fr
    Florence Quintin de Kercadio + 33 1 43 23 25 32 florence.quintindekercadio@credit-agricole-sa.fr
    Yury Romanov + 33 1 43 23 86 84 yury.romanov@credit-agricole-sa.fr
         
         
         

    See all our press releases at: www.credit-agricole.com – www.creditagricole.info

             

    1 Closing at 4thof July
    (2)Car, home, health, legal, all mobile phones or personal accident insurance.
    (3)CA Auto Bank, automotive JVs and automotive activities of other entities        
    (4)Low-carbon energy exposures made up of renewable energy produced by the clients of all Crédit Agricole Group entities, including nuclear energy exposures for Crédit Agricole CIB.
    (5)CAA outstandings (listed investments managed directly, listed investments managed under mandate and unlisted investments managed directly) and Amundi Transition Energétique.
    (6)Crédit Agricole Group outstandings, directly or via the EIB, dedicated to the environmental transition according to the Group’s internal sustainable assets framework, as of 31/03/2025. Change of method on property compared with the outstandings reported at 30/09/2024: with the same method, the outstandings at 31/03/2025 would be €85.9 billion.
    (7)The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
    (8)The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
    (9)Average rate of loans to monthly production for April to May 2025
    (10)Equipment rate – Home-Car-Health policies, Legal, All Mobile/Portable or personal accident insurance
    (11)Reversal of the provision for Home Purchase Saving Plans: +€16.3m in Q2-25 vs. +€22m in Q2-24 in revenues (+€12.1m in Q2-25 vs. +€17m in Q2-24 in net income Group share)

    (12)Provisioning rate calculated with outstandings in Stage 3 as denominator, and the sum of the provisions recorded in Stages 1, 2 and 3 as numerator.
    (13)The cost of risk/outstandings (in basis points) on a four-quarter rolling basis is calculated on the cost of risk of the past four quarters divided by the average outstandings at the start of each of the four quarters
    (14)The cost of risk/outstandings (in basis points) on an annualised basis is calculated on the cost of risk of the quarter multiplied by four and divided by the outstandings at the start of the quarter
    (15)See Appendixes for details on the calculation of the RoTE (return on tangible equity)
    (16)The annualised net income Group share corresponds to the annualisation of the net income Group share (Q1x4; H1x2; 9Mx4/3) by restating each period for IFRIC impacts, the effects of the additional corporate tax charge and the capital gain related to the deconsolidation of Amundi US to linearise them over the year.
    (17)In local standards
    (18)Scope: property and casualty in France and abroad
    (19)Combined property & casualty ratio in France (Pacifica) including discounting and excluding undiscounting, net of reinsurance: (claims + operating expenses + fee and commission income)/gross premiums earned. Undiscounted ratio: 97.4% (+0.1 pp over the year)
    (20)Excluding assets under custody for institutional clients
    (21)Amount of allocation of Contractual Service Margin (CSM), loss component and Risk Adjustment (RA), and operating variances net of reinsurance, in particular
    (22)Amount of allocation of CSM, loss component and RA, and operating variances net of reinsurance, in particular.
    (23)Net of reinsurance cost, including financial results
    (24)Pro forma scope effect of deconsolidated Amundi US in Q2 2024: €89m in revenues and €51m in expenses.
    (25)Excluding scope effect
    (26)Indosuez Wealth Management scope
    (27)Degroof Petercam scope effect April/May 2025: Revenues of €96m and expenses of -€71m
    (28)Q2-25 Integration costs: -€22.5m vs -€5.4m in Q2-24
    (29)Degroof Petercam scope effect over H1-25: reminder of figures for Degroof Petercam scope effect of Q1-25 revenues of €164m and expenses of -€115m
    (30)Refinitiv LSEG
    (31)Bloomberg in EUR
    (32)ISB integration costs: -€5m in Q2-25 (vs -€24.4m in Q2-24)
    (33)Net income becomes net income Group share following the purchase of minority shares in Santander by Crédit Agricole S.A.
    (34)CA Auto Bank, automotive JVs and auto activities of other entities
    (35)CA Auto Bank and automotive JVs
    (36)Lease financing of corporate and professional equipment investments in France: -7.5% in Q1-25 (source: ASF)
    (37)Increase in RWA of around +€7G primarily connected to the consolidation of the leasing activities in Q4-24
    (38)Cost of risk for the last four quarters as a proportion of the average outstandings at the beginning of the period for the last four quarters.
    (39)Net of POCI outstandings
    (40)Source: Abi Monthly Outlook, July 2025: +0.9% June/June for all loans
    (41)At 30 June 2025 this scope includes the entities CA Italia, CA Polska, CA Egypt and CA Ukraine.

    (42) Over a rolling four quarter period.
    (43)At 30 June 2025, this scope corresponds to the aggregation of all Group entities present in Italy: CA Italia, CAPFM (Agos, Leasys, CA Auto Bank), CAA (CA Vita, CACI, CA Assicurazioni), Amundi, Crédit Agricole CIB, CAIWM, CACEIS, CALEF.
    (44)Banco BPM stake -21 bps; Stake in Victory Capital: – 8 bps or –1 bp including capital gain from the deconsolidation of Amundi US; Additional threshold excess for other financial participations: -7 bps.

    (48)
    (49)

    (54)This refers to the change between the value at 30 June 2025 and the value at 1 (or 2) January 2025; the latter is the value of the variable concerned at 30 June 2025.
    (55)In March, Parliament approved the creation of a €500 billion infrastructure investment fund over 12 years. The first phase of the reform of the debt brake was also approved, allowing regions to run a structural deficit of up to 0.35% of GDP. Finally, defence spending above 1% of GDP will be exempt from the deficit calculation. The adoption of these measures has broken down barriers to financing infrastructure and defence investment that had previously seemed insurmountable.
    (56)APMs are financial indicators not presented in the financial statements or defined in accounting standards but used in the context of financial communications, such as net income Group share or RoTE. They are used to facilitate the understanding of the company’s actual performance. Each APM indicator is matched in its definition to accounting data.

    Attachment

    • CASA_PR_2025-Q2

    The MIL Network –

    July 31, 2025

  • MIL-OSI: EfTEN Real Estate Fund AS unaudited results for 2nd quarter and 1st half-year 2025

    Source: GlobeNewswire (MIL-OSI)

    Fund Manager’s Commentary

    In Q2 2025, the Baltic commercial real estate market continued to reflect similar trends as in previous quarters. Transaction activity remained very low, primarily due to a lack of equity capital, and modest economic growth did not bring new major tenants to the market. On a positive side, the decline in EURIBOR continued, resulting in reduced borrowing costs.

    Despite intense competition in the tenant market, EfTEN Real Estate Fund AS managed to decrease portfolio’s vacancy by 0.7 percentage points during the quarter, down to 3.7%. New tenants were added in the retail segment, and after a long pause, the first faintly positive signs were also observed in the Estonian office segment. On the other hand, the high volume of new developments in recent years continues to pressure the Vilnius office market. In Q2, the Paemurru logistics center within the fund’s portfolio was completed, and construction of Block C at the Valkla elderly home was finalized. As a result, the fund’s sales revenue increased by 4.5% compared to Q1 and by 3.1% year-on-year.

    The fund’s subsidiaries have floating interest rate bank loans. With the rapid decline in EURIBOR, interest expenses have decreased significantly. However, euro interest rates have now reached a level where further substantial decrease is unlikely. In this context, the fund has started fixing interest rates—one subsidiary entered into an interest rate swap agreement in June with a nominal value of €11.6 million at a rate of 1.995%. Given favourable swap terms, the fund plans to continue fixing interest rates for up to half of its loan portfolio.

    Financial Performance Overview

    EfTEN Real Estate Fund AS earned consolidated sales revenue of €8.210 million for Q2 2025 (Q2 2024: €7.957 million), and consolidated revenue for H1 2025 was €16.068 million (H1 2024: €15.918 million). This represents a 3.1% year-on-year increase for Q2 and a 1.0% increase for H1. Revenue increase was primarily driven by new investments in the logistics and elderly care sectors.

    The fund’s consolidated net operating income (NOI) for H1 2025 was €14.845 million (H1 2024: €14.781 million), reflecting a 0.4% increase. The NOI margin was 92% in H1 (2024: 93%), indicating that direct property-related costs (including land tax, insurance, maintenance and improvement works), along with marketing expenses, accounted for 8% of the fund’s revenue (2024: 7%).

    In Q2 2025, the fund earned a consolidated net profit of €4.025 million (Q2 2024: €2.442 million). The increase in net profit was primarily due to the positive change in the fair value of investment properties, which amounted to €546 thousand in June 2025, compared to a revaluation loss of €1.454 million in the same period in 2024. Additionally, the decrease in interest expenses resulting from the decline in EURIBOR had a positive impact on quarterly net profit—interest costs totalled €1.697 million in Q2 2025, down from €2.237 million a year earlier.

    The consolidated net profit for H1 2025 was €8.192 million (H1 2024: €6.250 million). Interest expenses decreased by €973 thousand, or 22%, year-on-year.

    As of 30 June 2025, the Group’s total assets amounted to €399.517 million (31 December 2024: €398.763 million), of which the fair value of investment properties accounted for 95.6% (31 December 2024: 93.7%).
     

    Real estate portfolio

    As of 30 June 2025, the Group held 37 (31 December 2024: 36) commercial real estate investments with a fair value of €382.018 million (31 December 2024: €373.815 million) and an acquisition cost of €378.218 million (31 December 2024: €370.561 million). In addition to the investment properties owned by the fund’s subsidiaries, the Group also holds a 50% interest in a joint venture that owns the Palace Hotel in Tallinn, with a fair value of €8.630 million as of 30 June 2025 (31 December 2024: €8.630 million).

    In the first half of 2025, the Group invested a total of €7.657 million in both new properties and the development of the existing real estate portfolio.

    In March, the Group’s subsidiary EfTEN Hiiu OÜ acquired a property located at Hiiu 42 in Tallinn for €4 million. Under an existing lease agreement, the North Estonia Medical Centre Foundation continues to occupy part of the property, while a long-term (10 + 10 years) lease was signed for the remaining space with Hiiu Südamekodu OÜ, a company within the Südamekodud AS group. In cooperation with the tenant and Südamekodud AS, the building will be partially redeveloped into a general elderly home called “Nõmme Südamekodu,” which will eventually accommodate up to 170 residents.

    In H1 2025, construction of Block C at the Valkla care home was completed, and phase II construction began at the Ermi elderly home in Tartu.

    In April 2025, the Paemurru logistics center—acquired in autumn of the previous year—was completed, with an additional €1.743 million invested in the property during the first half of the year.

    In the first six months of 2025, the Group earned a total of €15.571 million in rental income, representing a 1% increase compared to the same period in 2024.

    As of 30 June 2025, the vacancy rate for the Group’s investment properties stood at 3.7% (31 December 2024: 2.6%). The highest vacancy was in the office segment at 16.2%, where leasing of vacant space has taken longer than in previous periods. Compared to the end of last year, the most notable increase in vacancy occurred in the office building at Pärnu mnt 102 in Tallinn, where an additional 2.2 thousand sqm of space became vacant.

    EfTEN Real Estate Fund AS conducts regular valuations of its investment properties twice a year—as of 30 June and 31 December. Based on the valuations carried out by Colliers International in June 2025, the fair value of the investment properties increased by 0.1%, resulting in a revaluation gain of €0.5 million for the fund.

    Financing

    In April 2025, subsidiaries of EfTEN Real Estate Fund AS increased their total bank loan commitments by €7.32 million, reflecting improved financial capacity. Additionally, bank financing totalling €2.67 million was used in the first half of the year for the construction of the Valkla elderly home and the Paemurru logistics center. In April, the fund’s subsidiary EfTEN Hiiu OÜ entered into a loan agreement of €3.25 million to finance the redevelopment of the building at Hiiu 42. As of the end of June, this loan had not yet been drawn down.

    Over the next 12 months, loan agreements of eleven subsidiaries will mature, with a total outstanding balance of €40.641 million as of 30 June 2025. The LTV (Loan-to-Value) ratios of these maturing loans range from 37% to 46%, and the related investment properties generate stable rental cash flows. Therefore, management of the Fund does not foresee any obstacles to refinancing.

    As of 30 June 2025, the Group’s weighted average interest rate on loan agreements was 3.95% (31 December 2024: 4.89%), and the overall LTV stood at 41% (31 December 2024: 40%). All loan agreements of the fund’s subsidiaries are based on floating interest rates. To mitigate interest rate risk, one of the Group’s subsidiaries entered into an interest rate swap agreement in June 2025 with a notional amount of €11.6 million, fixing the 1-month EURIBOR at 1.995%.

    As of 30 June 2025, the fund’s interest coverage ratio (ICR) was 3.7 (30 June 2024: 2.9), with the improvement primarily driven by the decrease in EURIBOR.


    Share information

    As of 30 June 2025, the registered share capital of EfTEN Real Estate Fund AS was €114,403 thousand (31 December 2024: unchanged). The share capital consisted of 11,440,340 shares (31 December 2024: unchanged), each with a nominal value of €10 (31 December 2024: unchanged).

    The net asset value (NAV) per share of EfTEN Real Estate Fund AS was €19.98 as of 30 June 2025 (31 December 2024: €20.37), reflecting a 1.9% decrease during the first half of 2025. Excluding dividend distributions, the fund’s NAV would have increased by 4.1% over the same period.

    As of 30 June 2025, 32.18% of the shares belonged to the fund’s board and management members and persons associated with them.

    CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME 

        2nd quarter 6 months
        2025 2024 2025 2024
    € thousands          
    Sales revenue   8 210 7 957 16 068 15 918
    Cost of services sold   -389 -341 -895 -759
    Gross profit   7 821 7 616 15 173 15 159
               
    Marketing costs   -187 -178 -328 -378
    General and administrative expenses   -941 -880 -1 947 -1 819
    Profit / loss from investment properties fair value changes   546 -1 454 546 -1 454
    Other operating income and expense   15 44 -22 86
    Operating profit   7 254 5 148 13 422 11 594
               
    Profit/-loss from joint ventures   87 -204 29 -254
    Interest income   35 64 118 165
    Other finance income and expense   -1 739 -2 238 -3 542 -4 473
    Profit before income tax   5 637 2 770 10 027 7 032
               
    Income tax expense   -1 612 -328 -1 835 -782
    Net profit of the financial year   4025 2442 8 192 6 250
    Total comprehensive income for the period   4 025 2 442 8 192 6 250
    Earnings per share          
    – basic   0,35 0,23 0,72 0,58
    – diluted   0,35 0,23 0,72 0,58

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION 
                    

        30.06.2025 31.12.2024
    € thousands      
    ASSETS      
    Cash and cash equivalents   13 449 18 415
    Short-term deposits   0 2 092
    Receivables and accrued income   1 671 2 055
    Prepaid expenses   137 138
    Total current assets   15 257 22 700
           
    Long-term receivables   133 154
    Shares in joint ventures   1 989 1 960
    Investment property   382 018 373 815
    Property, plant and equipment   120 134
    Total non-current assets   384 260 376 063
    TOTAL ASSETS   399 517 398 763
           
    LIABILITIES AND EQUITY      
    Borrowings   45 418 30 300
    Derivatives   42 0
    Liabilities and prepayments   2 705 3 245
    Total current liabilities   48 165 33 545
           
    Borrowings   110 688 119 120
    Other long-term liabilities   2 090 1 928
    Deferred income tax liability   10 008 11 097
    Total non-current liabilities   122 786 132 145
    TOTAL LIABILITIES   170 951 165 690
           
    Share capital   114 403 114 403
    Share premium   90 306 90 306
    Statutory reserve capital   4 156 2 799
    Retained earnings   19 701 25 565
    TOTAL EQUITY   228 566 233 073
    TOTAL LIABILITIES AND EQUITY   399 517 398 763

    Marilin Hein
    CFO
    Phone +372 6559 515
    E-mail: marilin.hein@eften.ee

    Attachment

    • EREF_6kuud_vahearuanne_2025_ENG

    The MIL Network –

    July 31, 2025

  • MIL-OSI United Kingdom: Cultural programme announced for Japan Week in Manchester this September

    Source: City of Manchester

    The programme has been announced for a fantastic free cultural festival this September that will see a six-day Japanese culture takeover of Manchester as part of Japan Week 2025.

    The festival is being held in Manchester from 4 – 9 September after the city was chosen by the International Friendship Foundation as host city for the prestigious annual Japan Week event, that takes place each year in a different world city. 
    First held in Florence and after that in other major cities around the globe including Seville, Boston, and Athens, this year’s festival in Manchester promises to be extra special as 2025 marks the 50th anniversary of the event that first took place in 1975.

    The annual festival showcases traditional and contemporary Japanese culture through arts, music, fashion and sports, and will see a whole host of activities taking place at venues right across the city – all of them free to attend on a first come, first served basis, although some activities will require free-of-charge tickets to be booked in advance.

    Through a diverse range of events, workshops, exhibitions and interactive experiences, hosted at iconic venues across the city, the festival promises a glimpse into the beauty and uniqueness of Japanese arts, traditions and more.

    From traditional tea ceremonies and calligraphy, to music, arts and grass roots cultural exchange, there will be something for people of all ages to enjoy and appreciate.

    The programme includes theatre and stage performances at HOME, traditional tea ceremonies at Manchester Museum, workshops, exhibitions and demonstrations at Aviva Studios and Manchester Central Library, plus a full day of activity with the Hallé showcasing the Hallé Youth Orchestra, Japan Archives, and Japanese instruments.

    The week also includes the first UK performance of BLOOM – a brand-new production that fuses music, fashion and dance in a unique celebration of Greater Manchester’s contemporary creative scene.  It has been created by composer and DJ Afrodeutsche, dance company Company Chameleon, and queer-led fashion brand Belladonis.  The live performance will also feature a string ensemble from the world-renowned Hallé orchestra, including virtuosa violinist Roberto Ruisi.

    Centred on the theme of metamorphosis and change, BLOOM was created as a unique gift from Greater Manchester to Japan, marking a landmark year of cultural exchange between the two regions – with its debut performance taking place at EXPO Osaka back in June, ahead of performances in Manchester during Japan Week.

    Away from central Manchester local community venues in the north and south of the city will also be hosting Japan Week activity with plans currently being finalised for activity to take place at Gorton Hub, Wythenshawe Forum, and Abraham Moss Library and Leisure Centre.

    Mr Hiroyuki Ishizaki of the International Friendship Federation, Japan said: “It is a great pleasure to bring artists and performers from across Japan to the wonderful city of Manchester for an extra special programme celebrating the 50th anniversary.” 

    Manchester and the wider city region has a longstanding relationship with Japan, dating back to the 1800s and the industrial revolution, with Japan Week 2025 set to showcase this 200-year history and friendship.

    The city’s bid to host Japan Week came off the back of a successful Greater Manchester trade mission to Osaka and Tokyo in December 2023, led by GMCA Mayor Andy Burnham and Leader of Manchester City Council, Bev Craig.

    The city region’s relationship with Japan has continued to go from strength to strength since then, with a further delegation from Greater Manchester having recently undertaken a follow-up trade mission with partners in Tokyo and Osaka.

    Councillor Bev Craig, Leader of Manchester City Council, said: “Manchester and Japan have historic links, going all the way back to the 1800s, when Japanese students came to Greater Manchester to take home the lessons of industry and our connections have been forged ever since. As a proudly international city, our city has always been shaped by people and businesses who have chosen Manchester to live, to work and to invest in.

    “Culture has an important part to play in this, helping forge a mutual understanding between cities and countries that in turn helps create the right foundations for joint working and for successfully doing business with each other.

    “It is particularly special that Manchester has been chosen to host the landmark 50th celebration of International Japan Week.  

    “The programme of free cultural activity for September will allow people from across the city come and experience these unique events and gain insights into Japanese culture for the week. We are looking forward to hosting an important delegation of Japanese dignitaries, businesses and cultural institutions in our city.”

    The festival is being delivered in partnership with HOME, Aviva Studios, Manchester Central Library, First Street, and Manchester Museum, with activities also taking place at Hallé St Peter’s and esea contemporary in the Northern Quarter.

    Partner quotes:

    Karen O’Neil, CEO of HOME, said: “HOME is honoured to be part of welcoming so many amazing artists from Japan to Manchester for what we are sure will be an exciting week of events and shared experiences. Japan Week clearly shows Manchester’s commitment to being an international city with a thriving cultural sector.”

    John McGrath, Artistic Director and Chief Executive of Factory International, said: “It’s a pleasure to be part of Japan Week as the annual celebration of culture comes to Manchester. Having welcomed the great Japanese artist Yayoi Kusama as the very first person to exhibit in Factory International’s new home at Aviva Studios with You, Me and the Balloons in 2023, we look forward to welcoming more great artists from Japan to the city this September and building cultural ties alongside our partners. Visitors to Aviva Studios will have the opportunity to experience exhibitions, food and drink samplings and workshops showcasing Japanese art, innovation, and tradition.”

    Ciaron Wilkinson, Head of External Relations at Manchester Museum said: “Manchester Museum has a long history of celebrating Japanese cultural heritage so we’re excited to continue building on that tradition and the cherished relationships that come with it. Our own mission is to build understanding between cultures and Japan Week has incredible potential to do just that.”

    Thomas Ingham, Director of Place and Marketing, First Street and Ask Real Estate, said: “First Street and Ask Real Estate have a strong track record of supporting and enabling cultural activations in Manchester. And as First Street marks its 10th birthday this year, we look forward to welcoming guests from all around the world for the 50th anniversary of Japan Week.” 

    David Butcher, Chief Executive, The Hallé, said: “Japan Week is such an exciting opportunity to explore and enjoy cultural exchange in Manchester, and the Hallé is thrilled to be joining partners to deliver something special for the city. As Manchester’s cultural ambassador, international engagement is deeply rooted in our work, and we are looking forward to sharing the results of our most recent collaboration, BLOOM, which premiered at EXPO 2025 in Osaka, marking a new city partnership between Manchester and Osaka. Alongside this performance and much more at Hallé St Peter’s in Ancoats, audiences are in for a treat with such an incredible range of events across the city and we look forward to joining in the celebrations.”

    Xiaowen Zhu, Director of esea contemporary, said: ” ‘From Tokyo to Manchester: Weekend Festival’ reflects our commitment to fostering meaningful cultural dialogue across geographies. As a proud venue partner for the 50th anniversary of Japan Week—supported by Manchester City Council—we are honoured to contribute to this landmark citywide celebration. Through boundary-pushing music, experimental moving image, and shared creative experience, the festival captures the vitality of Japan’s contemporary arts and culture while resonating with Manchester’s spirit of openness, innovation, and inclusivity. It is a joyful invitation to connect—across disciplines, communities, and generations.” 

    Japan Week in Manchester is proudly sponsored by Calbee, Mizkan, Manchester Airport, KAJI, and First Street and Ask Real Estate who have together made the exciting free programme of cultural events possible. 

    Find out more information about what’s on during Japan Week in Manchester and get tickets  

    MIL OSI United Kingdom –

    July 31, 2025

  • MIL-OSI: KOZII: Real-World Yield Meets Blockchain as IEO Launches on Coinstore

    Source: GlobeNewswire (MIL-OSI)

    Singapore, July 30, 2025 (GLOBE NEWSWIRE) — KOZII, a pioneering real estate-backed Web3 project, is proud to announce the launch of its Initial Exchange Offering (IEO), marking a significant step toward making real estate investment accessible, transparent, and rewarding. Built on tangible income-generating assets and powered by blockchain technology, KOZII merges decentralized finance (DeFi) with student housing in Indonesia to create a sustainable and scalable ecosystem.

    Bridging Real Estate with DeFi

    KOZII transforms traditional real estate investment by allowing users to purchase fractional ownership of verified properties through KOZII tokens. These tokens are backed by real-world rental income, offering investors both immediate yield and long-term growth potential. This model is designed to provide genuine utility, not speculation.

    Key features include:
    Fixed 8% APY for staked tokens during the first 18 months
    Upcoming options for ownership of fractional shares in student-focused apartments
    Transparent, blockchain-based tracking of rental performance
    Profit-sharing through KOZII’s growing property portfolio in Phase 2.

    Token Overview
    ●  Token name:  KOZII token
    ●  Token symbol: KOZII
    ●  Total issue supply: 1,000,000,000
    ●  Total circulation supply: 100,000,000

    What Sets KOZII Apart

    Phase 1: Guaranteed 8% APY from Kozii ecosystem rewards for 18 months
    Phase 2: 3% of KOZII’s net annual profit distributed to token holders
    Seamless, borderless property access and ownership
    Full transparency and security through audited smart contracts

    Property Listings
    KOZII’s initial listings include premium, tokenized residential and service apartments in Jakarta, specifically selected to meet the growing demand for student accommodations. Locations include Java Island and Kuningan.

    Looking Ahead
    KOZII’s mission is to redefine how the world interacts with property investment， transforming it from a high-barrier, paperwork-heavy process into an accessible, decentralized experience backed by real assets and real yield. The project is built to deliver long-term returns, aligned with user success.

    As real-world asset (RWA) narratives gain traction in the Web3 space, KOZII offers a concrete use case and a sustainable model at the intersection of blockchain and real estate.

    KOZII Official Media
    Website | Twitter  | Telegram 

    About Coinstore
    Accessibility. Security. Equity.
    As a leading global platform for cryptocurrency and blockchain technology, Coinstore seeks to build an ecosystem that grants everyone access to digital assets and blockchain technology. With over 10 million users worldwide, Coinstore aims to become the preferred cryptocurrency trading platform and digital service provider worldwide.
    Coinstore Social Media
    Twitter | LinkedIn | Youtube | Tiktok | Telegram Announcement | Telegram Events Announcement

    The MIL Network –

    July 31, 2025

  • MIL-OSI Europe: Spain: Regional Resilience Fund provides €230 million to finance agreement signed by EIB with A&G and Urbania Alpha to promote affordable housing, urban development and sustainable tourism

    Source: European Investment Bank

    EIB

    • The two financing agreements have been signed thanks to the backing of the Regional Resilience Fund financed by NextGenerationEU and implemented by the Spanish Ministry of Economy, Trade and Enterprise with EIB support.
    • The EIB will allocate €130 million to A&G and €100 million to Urbania Alpha (which holds the AEXX Capital brand) for investments throughout Spain.
    • These agreements mark a further step forward in rolling out the Regional Resilience Fund – specifically the instrument designed to promote urban development and sustainable tourism – with €640 million already signed to support investments under this instrument.

    The European Investment Bank (EIB) has signed agreements with A&G and Urbania Alpha (which holds the AEXX Capital brand) to channel a total of €230 million to new urban development projects (including those promoting affordable housing) and others related to sustainable tourism.

    The agreements were made possible by a contribution from the Regional Resilience Fund, part of Spain’s Recovery, Transformation and Resilience Plan, and financed by NextGenerationEU. More specifically, this was facilitated by the new instrument launched by the EIB to channel financing via financial intermediaries. Thanks to this instrument, agreements totalling €640 million have already been signed to back investments in urban development and sustainable tourism.

    As with the first agreements signed by the EIB under this instrument, A&G Banco and Urbania Alpha/AEXX Capital will assess investment opportunities across the country to promote projects in areas such as affordable housing, education, healthcare, social and cultural infrastructure, sustainable mobility, waste and water management, energy efficiency and sustainable tourism.

    A&G has been allocated €130 million by the EIB, which it will channel through A&G Real Estate Sustainable Developments, SICC SA. Urbania Alpha/AEXX Capital has been allocated €100 million to be channelled through AEXX Impact Investments I, SICC SA. Both are regulated vehicles set up specifically for this purpose. A&G will invest in equity, while Urbania Alpha/AEXX Capital will finance projects through equity and loans, or a combination of both. The maximum allocation per project is €22 million while maximum recovery periods are 15 years for equity investments and 20 years for debt. The investment period runs until December 2030.

    “With these two new financing agreements, the EIB continues to accelerate the deployment of the Regional Resilience Fund while boosting investment in urban development, affordable housing, and sustainable tourism in Spain. Public-private partnerships—such as those signed today with A&G and Urbania Alpha/AEXX Capital—help unlock the capital needed to make housing more accessible, foster an environmentally responsible tourism model, and adapt our cities to the evolving needs of citizens.” said EIB Director General – Head of Lending and Advisory Operations within the European Union Jean-Christophe Laloux

    “The signing of these agreements consolidates the implementation of the Regional Resilience Fund’s intermediated instrument, extending its scope to new specialised financial intermediaries. This is an important step in continuing to channel European funding towards projects with a real impact in key areas such as affordable housing, urban regeneration and sustainable tourism,’ said Inés Carpio, Director General of International Financing at the Treasury, Spanish Ministry of Economy, Trade and Enterprise

    Alejandro Nuñez, Managing Partner of Alternative Investments at A&G added, “We appreciate the trust placed in us by an investor of such exceptional prestige as the EIB to mobilize a significant portion of the Regional Resilience Fund. We believe that A&G is in a privileged position to manage public-private capital that effectively contributes to urban regeneration and sustainable tourism projects in Spain. Over the last few years, A&G has managed to create a highly regarded real estate investment platform in Spain. The mandate granted by the EIB gives us the opportunity to channel key resources into promoting affordable rental housing, while also supporting sustainable initiatives and local job creation.”

    Background information

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

    All projects financed by the EIB Group are in line with the Paris Agreement, as pledged in its Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

    In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024. This financing is contributing to the country’s green and digital transition, economic growth, competitiveness and improved services for residents.

    High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

    Regional Resilience Fund

    The Regional Resilience Fund (RRF) was created to facilitate access to NextGenerationEU loans from the Spanish Recovery, Transformation and Resilience Plan for the autonomous communities, with the aim of boosting investments and developing projects in eight priority areas: social and affordable housing; urban renewal; transport and sustainable tourism; the energy transition; water and waste management; the care economy; research, development and innovation; and the competitiveness of industry and SMEs.

    The fund is led by the Ministry of Economy, Trade and Enterprise, which takes input from the autonomous communities and cities for investment decision-making and looks to the EIB Group as a strategic management partner.

    The initial phase of the RRF includes the activation of up to €3.4 billion in financing via:

    • a direct financing mechanism, to co-finance EIB-supported operations in sectors like renewable energy, clean transport and sustainable infrastructure;
    • an intermediated mechanism managed by financial intermediaries selected by the EIB, to support projects in urban development and sustainable tourism;
    • two instruments intermediated by the European Investment Fund that will facilitate SME financing for innovation, sustainability and competitiveness.

    About A&G and A&G Global Investors

    A&G was founded in 1987 and is a leading independent financial services group with offices in Spain and Luxembourg. At the end of June 2025, the group’s total assets under management (AuMs) exceeded €15.5 billion. The group’s capabilities in alternative investments are focused on real estate, energy transition (with strategies dedicated to investing in infrastructure assets and growing technology companies) and private equity investments, grouped under the A&G Global Investors brand.

    www.aygglobalinvestors.com

    Urbania Alpha/AEXX Capital

    Urbania Alpha/AEXX Capital is a European alternative asset management platform. The firm provides debt, equity, and hybrid capital solutions to address a broad range of financing needs for real asset owners. To execute this strategy, AEXX has developed deep geographic and asset-class expertise across European markets through its offices in Spain, Italy, the UK, Germany, and Portugal.

    MIL OSI Europe News –

    July 31, 2025

  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., July 30, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $12.3 million, or $0.12 per basic and diluted share, for the quarter ended June 30, 2025, as compared to $4.5 million, or $0.04 per basic and diluted share, for the quarter ended June 30, 2024. Earnings for the quarter ended June 30, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, higher non-interest income and a decrease in non-interest expense, partially offset by higher income tax expense.

    For the six months ended June 30, 2025, the Company reported net income of $21.2 million, or $0.21 per basic and diluted share, as compared to $3.4 million, or $0.03 per basic and diluted share, for the six months ended June 30, 2024. Earnings for the six months ended June 30, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, a decrease in provision for credit losses and higher non-interest income, and a decrease in non-interest expense, partially offset by higher income tax expense.

    Mr. Thomas J. Kemly, President and Chief Executive Officer commented: “We are pleased with our results for the second quarter of 2025, which reflect a substantial increase in earnings and the continued expansion of our net interest margin resulting from our previously announced strategies. During the quarter, we also experienced solid loan growth, complemented by the purchase of approximately $130.9 million in commercial equipment finance loans. Assets and deposits continued to increase throughout the 2025 period, and we reduced our overall operating costs.”

    Results of Operations for the Three Months Ended June 30, 2025 and June 30, 2024

    Net income of $12.3 million was recorded for the quarter ended June 30, 2025, an increase of $7.8 million, as compared to net income of $4.5 million for the quarter ended June 30, 2024. The increase in net income was primarily attributable to a $9.6 million increase in net interest income, a $993,000 increase in non-interest income and a $1.3 million decrease in non-interest expense, partially offset by a $3.9 million increase in income tax expense.

    Net interest income was $53.7 million for the quarter ended June 30, 2025, an increase of $9.6 million, or 21.8%, from $44.1 million for the quarter ended June 30, 2024. The increase in net interest income was primarily attributable to a $3.2 million increase in interest income and a $6.4 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the quarter ended June 30, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to lower interest rates paid on new and repricing deposits and borrowings during the quarter ended June 30, 2025. Prepayment penalties, which are included in interest income on loans, totaled $615,000 for the quarter ended June 30, 2025, compared to $436,000 for the quarter ended June 30, 2024.

    The average yield on loans for the quarter ended June 30, 2025 increased 3 basis points to 4.96%, as compared to 4.93% for the quarter ended June 30, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the quarter ended June 30, 2025 increased 66 basis points to 3.55%, as compared to 2.89% for the quarter ended June 30, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024 being replaced with higher yielding securities purchased in 2024 and throughout the six months ended June 30, 2025. The average yield on other interest-earning assets for the quarter ended June 30, 2025 decreased 114 basis points to 5.16%, as compared to 6.30% for the quarter ended June 30, 2024, mainly due to a 150 basis point decrease in the dividend rate received on Federal Home Loan Bank stock.

    Total interest expense was $62.8 million for the quarter ended June 30, 2025, a decrease of $6.4 million, or 9.3%, from $69.2 million for the quarter ended June 30, 2024. The decrease in interest expense was primarily attributable to a 19 basis point decrease in the average cost of interest-bearing deposits along with a 52 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings, partially offset by an increase in the average balance of interest-bearing deposits. Interest expense on deposits decreased $482,000, or 1.0%, and interest expense on borrowings decreased $5.9 million, or 30.6% for the quarter ended June 30, 2025 as compared to the quarter ended June 30, 2024.

    The Company’s net interest margin for the quarter ended June 30, 2025 increased 38 basis points to 2.19% when compared to 1.81%, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 11 basis points to 4.75% for the quarter ended June 30, 2025 as compared to 4.64% for the quarter ended June 30, 2024. The average cost of interest-bearing liabilities decreased 31 basis points to 3.18% for the quarter ended June 30, 2025 as compared to 3.49% for the quarter ended June 30, 2024.

    Non-interest income was $10.2 million for the quarter ended June 30, 2025, an increase of $993,000, or 10.8%, from $9.2 million for the quarter ended June 30, 2024. The increase was primarily attributable to an increase of $425,000 in demand deposit account fees mainly related to commercial account treasury services, an increase of $366,000 in loan fees and service charges related to swap income, gains on securities transactions of $336,000, and a $281,000 gain on the sale of real estate owned, partially offset by a decrease of $693,000 in other non-interest income. The gain on the sale of other real estate owned resulted from the sale of a commercial real estate property acquired by foreclosure in 2024 with a book value of $1.3 million which was sold in June 2025.

    Non-interest expense was $44.9 million for the quarter ended June 30, 2025, a decrease of $1.3 million, or 2.9%, from $46.2 million for the quarter ended June 30, 2024. The decrease was primarily attributable to a decrease in professional fees of $1.0 million, as legal, regulatory, and compliance-related costs were higher in the 2024 period, a decrease in merger-related expenses of $692,000, and a decrease in other non-interest expense of $798,000.

    Income tax expense was $4.2 million for the quarter ended June 30, 2025, an increase of $3.9 million, as compared to income tax expense of $279,000 for the quarter ended June 30, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.4% and 5.8% for the quarters ended June 30, 2025 and 2024, respectively. The effective tax rate for the 2024 period was primarily impacted by permanent income tax differences.

    Results of Operations for the Six Months Ended June 30, 2025 and June 30, 2024

    Net income of $21.2 million was recorded for the six months ended June 30, 2025, an increase of $17.8 million, or 526.4%, compared to net income of $3.4 million for the six months ended June 30, 2024. The increase in net income was primarily attributable to a $17.7 million increase in net interest income, a $2.1 million decrease in provision for credit losses, a $2.0 million increase in non-interest income and a $3.2 million decrease in non-interest expense, partially offset by a $7.2 million increase in income tax expense.

    Net interest income was $104.0 million for the six months ended June 30, 2025, an increase of $17.7 million, or 20.6%, from $86.3 million for the six months ended June 30, 2024. The increase in net interest income was primarily attributable to a $6.7 million increase in interest income and a $11.0 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in the average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the six months ended June 30, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to a decrease in interest rates paid on new and repricing deposits and borrowings during the six months ended June 30, 2025. The decrease in interest expense on borrowings was also impacted by a decrease in the average balance of borrowings and the decrease in the cost of new borrowings. Prepayment penalties, which are included in interest income on loans, totaled $872,000 for the six months ended June 30, 2025, compared to $703,000 for the six months ended June 30, 2024.

    The average yield on loans for the six months ended June 30, 2025 increased 6 basis points to 4.92%, as compared to 4.86% for the six months ended June 30, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the six months ended June 30, 2025 increased 73 basis points to 3.50%, as compared to 2.77% for the six months ended June 30, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024 being replaced with higher yielding securities purchased in 2024 and throughout the six months ended June 30, 2025. The average yield on other interest-earning assets for the six months ended June 30, 2025 decreased 72 basis points to 5.47%, as compared to 6.19% for the six months ended June 30, 2024, due to lower dividends received on Federal Home Loan Bank stock.

    Total interest expense was $124.6 million for the six months ended June 30, 2025, a decrease of $11.0 million, or 8.1%, from $135.6 million for the six months ended June 30, 2024. The decrease in interest expense was primarily attributable to a 10 basis point decrease in the average cost of interest-bearing deposits along with a 53 basis point decrease in the average cost of borrowings coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $1.2 million, or 1.3%, and interest expense on borrowings decreased $12.3 million, or 32.8% for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024.

    The Company’s net interest margin for the six months ended June 30, 2025 increased 37 basis points to 2.15%, when compared to 1.78% for the six months ended June 30, 2024. The net interest margin increased for the six months ended June 30, 2025, due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 15 basis points to 4.72% for the six months ended June 30, 2025, as compared to 4.57% for the six months ended June 30, 2024. The average cost of interest-bearing liabilities decreased 25 basis points to 3.19% for the six months ended June 30, 2025, as compared to 3.44% for the six months ended June 30, 2024.

    The provision for credit losses for the six months ended June 30, 2025 was $5.4 million, a decrease of $2.1 million, or 27.7% from $7.5 million for the six months ended June 30, 2024. The decrease in provision for credit losses was primarily attributable to a decrease in net charge-offs, which totaled $4.1 million for the six months ended June 30, 2025 as compared to $5.5 million for the six months ended June 30, 2024, and a decrease in quantitative loss rates based on the evaluation of current and projected economic conditions.

    Non-interest income was $18.6 million for the six months ended June 30, 2025, an increase of $2.0 million, or 12.1%, from $16.6 million for the six months ended June 30, 2024. The increase was primarily attributable to an increase in gain on securities transactions of $1.6 million, an increase of $900,000 in demand deposit account fees mainly related to commercial account treasury services, an increase of $461,000 in loan fees and service charges related to swap income and a $281,000 gain on the sale of real estate owned, partially offset by a decrease of $2.0 million in other non-interest income.

    Non-interest expense was $88.8 million for the six months ended June 30, 2025, a decrease of $3.2 million, or 3.4% from $91.9 million for the six months ended June 30, 2024. The decrease was primarily attributable to a decrease in federal deposit insurance premiums of $615,000, a decrease in professional fees of $3.1 million, a decrease in merger-related expenses of $714,000 and a decrease in other non-interest expense of $1.3 million, partially offset by an increase in compensation and employee benefits expense of $2.3 million. Professional fees for legal, regulatory and compliance-related costs decreased in the 2025 period.

    Income tax expense was $7.3 million for the six months ended June 30, 2025, an increase of $7.2 million, as compared to income tax expense of $150,000 for the six months ended June 30, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.6% and 4.2% for the six months ended June 30, 2025 and 2024, respectively. The effective tax rate for the 2024 period was impacted by permanent income tax differences.

    Balance Sheet Summary

    Total assets increased $263.5 million, or 2.5%, to $10.7 billion at June 30, 2025 as compared to $10.5 billion at December 31, 2024. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $31.0 million, and an increase in loans receivable, net, of $254.1 million, partially offset by a decrease in cash and cash equivalents of $41.0 million.

    Cash and cash equivalents decreased $41.0 million, or 14.2%, to $248.2 million at June 30, 2025 from $289.2 million at December 31, 2024. The decrease was primarily attributable to purchases of securities of $159.3 million, purchases of loans of $150.9 million and the origination of loans receivable, partially offset by proceeds from principal repayments on securities of $98.5 million, and repayments on loans receivable.

    Debt securities available for sale increased $31.0 million, or 3.0%, to $1.1 billion at June 30, 2025 from $1.0 billion at December 31, 2024. The increase was attributable to purchases of securities of $126.0 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in the gross unrealized loss on securities of $22.1 million, partially offset by maturities on securities of $28.5 million, repayments on securities of $73.6 million, and the sale of securities of $15.7 million.

    Loans receivable, net, increased $254.1 million, or 3.2%, to $8.1 billion at June 30, 2025 from $7.9 billion at December 31, 2024. Multifamily loans, commercial real estate loans and commercial business loans increased $118.1 million, $177.8 million, and $104.5 million, respectively, partially offset by decreases in one-to-four family real estate loans, construction loans and home equity loans and advances of $81.6 million, $58.2 million, and $2.6 million, respectively. The increase in commercial business loans was primarily due to the purchase of $130.9 million in equipment finance loans from a third party in May 2025, at a $3.2 million discount, which included $5.1 million of purchased credit deteriorated loans (“PCD”). The principal balance of the PCD loans was charged-off by $3.2 million. The allowance for credit losses for loans increased $4.5 million to $64.5 million at June 30, 2025 from $60.0 million at December 31, 2024, primarily due to an increase in the outstanding balance of loans.

    Total liabilities increased $223.2 million, or 2.4%, to $9.6 billion at June 30, 2025 from $9.4 billion at December 31, 2024. The increase was primarily attributable to an increase in total deposits of $39.3 million, or 0.5%, and an increase in borrowings of $192.0 million, or 17.8%, partially offset by a decrease in other liabilities of $12.2 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, money market accounts and certificates of deposit of $1.9 million, $114.0 million, and $80.2 million, respectively, partially offset by decreases in interest-bearing demand deposits and savings and club accounts of $149.0 million and $7.7 million, respectively. The $192.0 million increase in borrowings was driven by a net increase in short-term borrowings of $122.0 million, coupled with new long-term borrowings of $130.0 million, partially offset by repayments of $60.0 million in maturing long-term borrowings. Proceeds from borrowings were utilized to fund the purchase of $130.9 million in equipment finance loans from a third party in May 2025.

    Total stockholders’ equity increased $40.3 million, or 3.7%, with a balance of $1.1 billion at both June 30, 2025 and December 31, 2024. The increase in total stockholders’ equity was primarily attributable to net income of $21.2 million, and an increase of $15.3 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income.

    Asset Quality

    The Company’s non-performing loans at June 30, 2025 totaled $39.5 million, or 0.49% of total gross loans, as compared to $21.7 million, or 0.28% of total gross loans, at December 31, 2024. The $17.8 million increase in non-performing loans was primarily attributable to a $5.9 million construction loan designated as non-performing during the 2025 period, an increase in non-performing one-to-four family real estate loans of $2.6 million, an increase in non-performing commercial real estate loans of $7.5 million, and an increase in non-performing commercial business loans of $1.3 million. The $5.9 million non-performing construction loan represents the construction of a mixed use five-story building with both commercial space and apartments. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 32 non-performing loans at December 31, 2024 to 43 loans at June 30, 2025. The increase in non-performing commercial real estate loans was due to an increase in the number of loans from four non-performing loans at December 31, 2024 to 14 loans at June 30, 2025. The increase in non-performing commercial business loans was due to an increase in the number of loans from 11 non-performing loans at December 31, 2024 to 16 loans at June 30, 2025. Non-performing assets as a percentage of total assets totaled 0.37% at June 30, 2025, as compared to 0.22% at December 31, 2024.

    For the quarter ended June 30, 2025, net charge-offs totaled approximately $3.2 million, as compared to $533,000 in net charge-offs recorded for the quarter ended June 30, 2024. For the six months ended June 30, 2025, net charge-offs totaled $4.1 million as compared to $5.5 million in net charge-offs recorded for the six months ended June 30, 2024. Charge-offs for the three and six months ended June 30, 2025 included $3.2 million in charge-offs related to PCD loans included in the equipment finance loan purchase noted above.

    The Company’s allowance for credit losses on loans was $64.5 million, or 0.79% of total gross loans, at June 30, 2025, compared to $60.0 million, or 0.76% of total gross loans, at December 31, 2024. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
           
      June 30,   December 31,
      2025   2024
    Assets (Unaudited)    
    Cash and due from banks $ 248,113     $ 289,113  
    Short-term investments   111       110  
    Total cash and cash equivalents   248,224       289,223  
           
    Debt securities available for sale, at fair value   1,056,950       1,025,946  
    Debt securities held to maturity, at amortized cost (fair value of $368,232, and $350,153 at June 30, 2025 and December 31, 2024, respectively)   402,159       392,840  
    Equity securities, at fair value   7,253       6,673  
    Federal Home Loan Bank stock   68,663       60,387  
           
    Loans receivable   8,175,499       7,916,928  
    Less: allowance for credit losses   64,467       59,958  
    Loans receivable, net   8,111,032       7,856,970  
           
    Accrued interest receivable   41,161       40,383  
    Office properties and equipment, net   82,176       81,772  
    Bank-owned life insurance   278,756       274,908  
    Goodwill and intangible assets   120,003       121,008  
    Other real estate owned   —       1,334  
    Other assets   322,651       324,049  
    Total assets $ 10,739,028     $ 10,475,493  
           
    Liabilities and Stockholders’ Equity      
    Liabilities:      
    Deposits $ 8,135,483     $ 8,096,149  
    Borrowings   1,272,578       1,080,600  
    Advance payments by borrowers for taxes and insurance   49,525       45,453  
    Accrued expenses and other liabilities   160,734       172,915  
    Total liabilities   9,618,320       9,395,117  
           
    Stockholders’ equity:      
    Total stockholders’ equity   1,120,708       1,080,376  
    Total liabilities and stockholders’ equity $ 10,739,028     $ 10,475,493  
           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
           
      Three Months Ended
    June 30,    		   Six Months Ended
    June 30,
      2025   2024   2025   2024
    Interest income: (Unaudited)   (Unaudited)
    Loans receivable $ 99,646     $ 95,252     $ 194,756     $ 188,201  
    Debt securities available for sale and equity securities   10,301       9,241       20,043       17,026  
    Debt securities held to maturity   2,922       2,502       5,733       4,871  
    Federal funds and interest-earning deposits   2,443       4,459       5,301       8,022  
    Federal Home Loan Bank stock dividends   1,179       1,832       2,821       3,793  
    Total interest income   116,491       113,286       228,654       221,913  
    Interest expense:              
    Deposits   49,344       49,826       99,489       98,244  
    Borrowings   13,444       19,380       25,137       37,389  
    Total interest expense   62,788       69,206       124,626       135,633  
                   
    Net interest income   53,703       44,080       104,028       86,280  
                   
    Provision for credit losses   2,468       2,194       5,401       7,472  
                   
    Net interest income after provision for credit losses   51,235       41,886       98,627       78,808  
                   
    Non-interest income:              
    Demand deposit account fees   2,015       1,590       3,903       3,003  
    Bank-owned life insurance   1,990       1,804       3,849       3,584  
    Title insurance fees   861       744       1,507       1,247  
    Loan fees and service charges   1,744       1,378       2,800       2,339  
    Gain (loss) on securities transactions   336       —       336       (1,256 )
    Change in fair value of equity securities   272       101       580       452  
    (Loss) gain on sale of loans   (15 )     181       500       366  
    Gain on sale of other real estate owned   281       —       281       —  
    Other non-interest income   2,689       3,382       4,888       6,897  
    Total non-interest income   10,173       9,180       18,644       16,632  
                   
    Non-interest expense:              
    Compensation and employee benefits   28,933       27,659       57,516       55,172  
    Occupancy   5,968       6,054       12,153       12,027  
    Federal deposit insurance premiums   1,739       1,879       3,619       4,234  
    Advertising   563       661       1,094       1,287  
    Professional fees   3,519       4,509       6,034       9,143  
    Data processing and software expenses   4,103       3,914       8,164       7,881  
    Merger-related expenses   —       692       —       714  
    Other non-interest expense, net   81       879       171       1,447  
    Total non-interest expense   44,906       46,247       88,751       91,905  
                   
    Income before income tax expense   16,502       4,819       28,520       3,535  
                   
    Income tax expense   4,197       279       7,315       150  
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
                   
    Earnings per share-basic $ 0.12     $ 0.04     $ 0.21     $ 0.03  
    Earnings per share-diluted $ 0.12     $ 0.04     $ 0.21     $ 0.03  
    Weighted average shares outstanding-basic   101,985,784       101,651,511       101,898,636       101,699,126  
    Weighted average shares outstanding-diluted   101,985,784       101,651,511       101,898,636       101,804,386  
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Three Months Ended June 30,
      2025   2024
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 8,059,332     $ 99,646       4.96 %   $ 7,774,052     $ 95,252       4.93 %
    Securities   1,493,913       13,223       3.55 %     1,633,801       11,743       2.89 %
    Other interest-earning assets   281,611       3,622       5.16 %     401,633       6,291       6.30 %
    Total interest-earning assets   9,834,856       116,491       4.75 %     9,809,486       113,286       4.64 %
    Non-interest-earning assets   860,948               871,525          
    Total assets $ 10,695,804             $ 10,681,011          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,938,459     $ 10,898       2.25 %   $ 1,948,389     $ 13,708       2.83 %
    Money market accounts   1,332,835       9,424       2.84 %     1,220,774       8,323       2.74 %
    Savings and club deposits   645,167       1,114       0.69 %     674,793       1,370       0.82 %
    Certificates of deposit   2,788,547       27,908       4.01 %     2,545,967       26,425       4.17 %
    Total interest-bearing deposits   6,705,008       49,344       2.95 %     6,389,923       49,826       3.14 %
    FHLB advances   1,218,442       13,303       4.38 %     1,576,514       19,219       4.90 %
    Junior subordinated debentures   7,045       141       8.03 %     7,023       161       9.22 %
    Total borrowings   1,225,487       13,444       4.40 %     1,583,537       19,380       4.92 %
    Total interest-bearing liabilities   7,930,495     $ 62,788       3.18 %     7,973,460     $ 69,206       3.49 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,443,627               1,416,047          
    Other non-interest-bearing liabilities   215,390               260,107          
    Total liabilities   9,589,512               9,649,614          
    Total stockholders’ equity   1,106,292               1,031,397          
    Total liabilities and stockholders’ equity $ 10,695,804             $ 10,681,011          
                           
    Net interest income     $ 53,703             $ 44,080      
    Interest rate spread           1.57 %             1.15 %
    Net interest-earning assets $ 1,904,361             $ 1,836,026          
    Net interest margin           2.19 %             1.81 %
    Ratio of interest-earning assets to interest-bearing liabilities   124.01 %             123.03 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
       
      For the Six Months Ended June 30,
      2025   2024
      Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost   Average
    Balance    		   Interest
    and
    Dividends    		   Yield / Cost
      (Dollars in thousands)
    Interest-earnings assets:                      
    Loans $ 7,977,402     $ 194,756       4.92 %   $ 7,788,459     $ 188,201       4.86 %
    Securities   1,485,771       25,776       3.50 %     1,588,767       21,897       2.77 %
    Other interest-earning assets   299,424       8,122       5.47 %     383,989       11,815       6.19 %
    Total interest-earning assets   9,762,597       228,654       4.72 %     9,761,215       221,913       4.57 %
    Non-interest-earning assets   866,499               861,632          
    Total assets $ 10,629,096             $ 10,622,847          
                           
    Interest-bearing liabilities:                      
    Interest-bearing demand $ 1,999,157     $ 22,438       2.26 %   $ 1,973,569     $ 27,092       2.76 %
    Money market accounts   1,307,676       18,662       2.88 %     1,227,857       17,093       2.80 %
    Savings and club deposits   647,201       2,221       0.69 %     681,664       2,607       0.77 %
    Certificates of deposit   2,772,808       56,168       4.08 %     2,531,145       51,452       4.09 %
    Total interest-bearing deposits   6,726,842       99,489       2.98 %     6,414,235       98,244       3.08 %
    FHLB advances   1,140,113       24,857       4.40 %     1,511,830       37,067       4.93 %
    Junior subordinated debentures   7,041       280       8.02 %     7,020       322       9.22 %
    Total borrowings   1,147,154       25,137       4.42 %     1,518,850       37,389       4.95 %
    Total interest-bearing liabilities   7,873,996     $ 124,626       3.19 %     7,933,085     $ 135,633       3.44 %
                           
    Non-interest-bearing liabilities:                      
    Non-interest-bearing deposits   1,438,262               1,404,161          
    Other non-interest-bearing liabilities   218,314               248,514          
    Total liabilities   9,530,572               9,585,760          
    Total stockholders’ equity   1,098,524               1,037,087          
    Total liabilities and stockholders’ equity $ 10,629,096             $ 10,622,847          
                           
    Net interest income     $ 104,028             $ 86,280      
    Interest rate spread           1.53 %             1.13 %
    Net interest-earning assets $ 1,888,601             $ 1,828,130          
    Net interest margin           2.15 %             1.78 %
    Ratio of interest-earning assets to interest-bearing liabilities   123.99 %             123.04 %        
                                   
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
       
      Average Yields/Costs by Quarter
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
    Yield on interest-earning assets:                  
    Loans   4.96 %     4.89 %     4.88 %     5.00 %     4.93 %
    Securities   3.55       3.45       2.99       2.90       2.89  
    Other interest-earning assets   5.16       5.75       6.00       6.72       6.30  
    Total interest-earning assets   4.75 %     4.69 %     4.61 %     4.70 %     4.64 %
                       
    Cost of interest-bearing liabilities:                  
    Total interest-bearing deposits   2.95 %     3.01 %     3.13 %     3.21 %     3.14 %
    Total borrowings   4.40       4.44       4.65       4.87       4.92  
    Total interest-bearing liabilities   3.18 %     3.21 %     3.38 %     3.52 %     3.49 %
                       
    Interest rate spread   1.57 %     1.48 %     1.23 %     1.18 %     1.15 %
    Net interest margin   2.19 %     2.11 %     1.88 %     1.84 %     1.81 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities   124.01 %     123.96 %     124.02 %     123.06 %     123.03 %
                                           
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
       
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
    SELECTED FINANCIAL RATIOS (1):                  
    Return on average assets   0.46 %     0.34 %   (0.79 )%     0.23 %     0.17 %
    Core return on average assets   0.47 %     0.35 %     0.42 %     0.23 %     0.20 %
    Return on average equity   4.46 %     3.31 %   (7.86 )%     2.32 %     1.77 %
    Core return on average equity   4.58 %     3.37 %     4.09 %     2.29 %     2.06 %
    Core return on average tangible equity   5.14 %     3.78 %     4.74 %     2.58 %     2.34 %
    Interest rate spread   1.57 %     1.48 %     1.23 %     1.18 %     1.15 %
    Net interest margin   2.19 %     2.11 %     1.88 %     1.84 %     1.81 %
    Non-interest income to average assets   0.38 %     0.33 %   (0.88 )%     0.33 %     0.35 %
    Non-interest expense to average assets   1.68 %     1.68 %     1.73 %     1.60 %     1.74 %
    Efficiency ratio   70.30 %     74.57 %     205.17 %     78.95 %     86.83 %
    Core efficiency ratio   69.41 %     74.20 %     73.68 %     79.14 %     85.34 %
    Average interest-earning assets to average interest-bearing liabilities   124.01 %     123.96 %     124.02 %     123.06 %     123.03 %
    Net charge-offs to average outstanding loans (2)   0.04 %     0.04 %     0.07 %     0.14 %     0.03 %
                       
    (1) Ratios are annualized when appropriate.
    (2) The June 30, 2025 ratio includes $3.2 million of non-annualized PCD charge-offs related to the purchased commercial equipment finance loans.
     
    ASSET QUALITY DATA:  
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (Dollars in thousands)
                       
    Non-accrual loans $ 39,545     $ 24,856     $ 21,701     $ 28,014     $ 25,281  
    90+ and still accruing   —       —       —       —       —  
    Non-performing loans   39,545       24,856       21,701       28,014       25,281  
    Real estate owned   —       1,334       1,334       1,974       1,974  
    Total non-performing assets $ 39,545     $ 26,190     $ 23,035     $ 29,988     $ 27,255  
                       
    Non-performing loans to total gross loans   0.49 %     0.31 %     0.28 %     0.36 %     0.33 %
    Non-performing assets to total assets   0.37 %     0.25 %     0.22 %     0.28 %     0.25 %
    Allowance for credit losses on loans (“ACL”) $ 64,467     $ 62,034     $ 59,958     $ 58,495     $ 57,062  
    ACL to total non-performing loans   163.02 %     249.57 %     276.29 %     208.81 %     225.71 %
    ACL to gross loans   0.79 %     0.78 %     0.76 %     0.75 %     0.73 %
                                           
    LOAN DATA:  
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      (In thousands)
    Real estate loans:          
    One-to-four family $ 2,629,372     $ 2,676,566     $ 2,710,937     $ 2,737,190     $ 2,764,177  
    Multifamily   1,578,733       1,567,862       1,460,641       1,399,000       1,409,316  
    Commercial real estate   2,517,693       2,429,429       2,339,883       2,312,759       2,316,252  
    Construction   415,403       437,081       473,573       510,439       462,880  
    Commercial business loans   726,526       614,049       622,000       586,447       554,768  
    Consumer loans:                  
    Home equity loans and advances   256,384       253,439       259,009       261,041       260,427  
    Other consumer loans   2,602       2,547       3,404       2,877       2,689  
    Total gross loans   8,126,713       7,980,973       7,869,447       7,809,753       7,770,509  
    Purchased credit deteriorated loans   11,998       10,395       11,686       11,795       12,150  
    Net deferred loan costs, fees and purchased premiums and discounts   36,788       35,940       35,795       35,642       36,352  
    Allowance for credit losses   (64,467 )     (62,034 )     (59,958 )     (58,495 )     (57,062 )
    Loans receivable, net $ 8,111,032     $ 7,965,274     $ 7,856,970     $ 7,798,695     $ 7,761,949  
                                           
      At June 30, 2025
      (Dollars in thousands)
      Balance   % of Gross Loans   Weighted Average
    Loan to Value Ratio    		   Weighted
    Average
    Debt Service
    Coverage
    Multifamily Real Estate $ 1,578,733       19.8 %     59.0 %     1.86 x
                       
    Owner Occupied Commercial Real Estate $ 686,005       8.6 %     53.1 %     2.23 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers $ 544,476       6.8 %     54.2 %     1.45 x
    Mixed Use   209,619       2.6       58.5       2.52  
    Industrial / Warehouse   435,261       5.5       54.4       1.60  
    Non-Medical Office   167,986       2.1       51.6       1.69  
    Medical Office   98,801       1.2       61.0       1.49  
    Single Purpose   43,332       0.5       60.7       1.44  
    Other   332,213       4.2       50.4       1.85  
    Total $ 1,831,688       23.0 %     54.3 %     1.70 x
                       
    Total Multifamily and Commercial Real Estate Loans $ 4,096,426       51.3 %     55.9 %     1.85  
                                   
    DEPOSIT DATA:  
      June 30, 2025   March 31, 2025   December 31, 2024
      Balance   Weighted
    Average Rate    		   Balance   Weighted
    Average Rate    		   Balance   Weighted
    Average Rate
      (Dollars in thousands)
           
    Non-interest-bearing demand $ 1,439,951       — %   $ 1,490,243       — %   $ 1,438,030       — %
    Interest-bearing demand   1,872,265       2.03       1,935,384       2.08       2,021,312       2.19  
    Money market accounts   1,355,682       2.79       1,333,668       2.84       1,241,691       2.82  
    Savings and club deposits   644,761       0.70       651,713       0.70       652,501       0.75  
    Certificates of deposit   2,822,824       3.96       2,783,927       4.08       2,742,615       4.24  
    Total deposits $ 8,135,483       2.36 %   $ 8,194,935       2.40 %   $ 8,096,149       2.47 %
                                                   
    CAPITAL RATIOS:      
      June 30,   December 31,
      2025 (1)   2024
    Company:      
    Total capital (to risk-weighted assets)   14.18 %     14.20 %
    Tier 1 capital (to risk-weighted assets)   13.35 %     13.40 %
    Common equity tier 1 capital (to risk-weighted assets)   13.27 %     13.31 %
    Tier 1 capital (to adjusted total assets)   10.37 %     10.02 %
           
    Columbia Bank:      
    Total capital (to risk-weighted assets)   14.40 %     14.41 %
    Tier 1 capital (to risk-weighted assets)   13.53 %     13.56 %
    Common equity tier 1 capital (to risk-weighted assets)   13.53 %     13.56 %
    Tier 1 capital (to adjusted total assets)   9.95 %     9.64 %
           
    (1) Estimated ratios at June 30, 2025      
           
    Reconciliation of GAAP to Non-GAAP Financial Measures
           
    Book and Tangible Book Value per Share
      June 30,   December 31,
      2025   2024
      (Dollars in thousands)
       
    Total stockholders’ equity $ 1,120,708     $ 1,080,376  
    Less: goodwill   (110,715 )     (110,715 )
    Less: core deposit intangible   (7,933 )     (8,964 )
    Total tangible stockholders’ equity $ 1,002,060     $ 960,697  
           
    Shares outstanding   104,927,137       104,759,185  
           
    Book value per share $ 10.68     $ 10.31  
    Tangible book value per share $ 9.55     $ 9.17  
                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Reconciliation of Core Net Income              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (In thousands)
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
    Less/add: (gain) loss on securities transactions, net of tax   (251 )     —       (251 )     1,130  
    Add: FDIC special assessment, net of tax   —       97       —       490  
    Add: severance expense, net of tax   354       —       517       67  
    Add: merger-related expenses, net of tax   —       652       —       672  
    Add: litigation expenses, net of tax   242       —       242       —  
    Core net income $ 12,650     $ 5,289     $ 21,713     $ 5,744  
                                   
    Return on Average Assets              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Net income $ 12,305     $ 4,540     $ 21,205     $ 3,385  
                   
    Average assets $ 10,695,804     $ 10,681,011     $ 10,629,096     $ 10,622,847  
                   
    Return on average assets   0.46 %     0.17 %     0.40 %     0.06 %
                   
    Core net income $ 12,650     $ 5,289     $ 21,713     $ 5,744  
                   
    Core return on average assets   0.47 %     0.20 %     0.41 %     0.11 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Return on Average Equity              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,106,292     $ 1,031,397     $ 1,098,524     $ 1,037,087  
    Less/add: (gain)loss on securities transactions, net of tax   (251 )     —       (251 )     1,130  
    Add: FDIC special assessment, net of tax   —       97       —       490  
    Add: severance expense, net of tax   354       —       517       67  
    Add: merger-related expenses, net of tax   —       652       —       672  
    Add: litigation expenses, net of tax   242       —       242       —  
    Core average stockholders’ equity $ 1,106,637     $ 1,032,146     $ 1,099,032     $ 1,039,446  
                   
    Return on average equity   4.46 %     1.77 %     3.89 %     0.66 %
                   
    Core return on core average equity   4.58 %     2.06 %     3.98 %     1.11 %
                                   
    Return on Average Tangible Equity        
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Total average stockholders’ equity $ 1,106,292     $ 1,031,397     $ 1,098,524     $ 1,037,087  
    Less: average goodwill   (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible   (8,241 )     (10,381 )     (8,511 )     (10,668 )
    Total average tangible stockholders’ equity $ 987,336     $ 910,301     $ 979,298     $ 915,704  
                   
    Core return on average tangible equity   5.14 %     2.34 %     4.47 %     1.26 %
                                   
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
                   
    Efficiency Ratios              
      Three Months Ended June 30,   Six Months Ended June 30,
      2025   2024   2025   2024
      (Dollars in thousands)
                   
    Net interest income $ 53,703     $ 44,080     $ 104,028     $ 86,280  
    Non-interest income   10,173       9,180       18,644       16,632  
    Total income $ 63,876     $ 53,260     $ 122,672     $ 102,912  
                   
    Non-interest expense $ 44,906     $ 46,247     $ 88,751     $ 91,905  
                   
    Efficiency ratio   70.30 %     86.83 %     72.35 %     89.30 %
                   
    Non-interest income $ 10,173     $ 9,180     $ 18,644     $ 16,632  
    Less /add: (gain) loss on securities transactions   (336 )     —       (336 )     1,256  
    Core non-interest income $ 9,837     $ 9,180     $ 18,308     $ 17,888  
                   
    Non-interest expense $ 44,906     $ 46,247     $ 88,751     $ 91,905  
    Less: FDIC special assessment, net   —       (103 )     —       (565 )
    Less: severance expense   (475 )     —       (695 )     (74 )
    Less: merger-related expenses   —       (692 )     —       (714 )
    Less: litigation expenses   (325 )     —       (325 )     —  
    Core non-interest expense $ 44,106     $ 45,452     $ 87,731     $ 90,552  
                   
    Core efficiency ratio   69.41 %     85.34 %     71.71 %     86.93 %
                                   

    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Enact Reports Second Quarter 2025 Results; Announces $0.21 Per Share Quarterly Dividend

    Source: GlobeNewswire (MIL-OSI)

    GAAP Net Income of $168 million, or $1.11 per diluted share
    Adjusted Operating Income of $174 million, or $1.15 per diluted share
    Return on Equity of 13.0% and Adjusted Operating Return on Equity of 13.4%
    Primary Insurance in-force of $270 billion, a 1% increase from second quarter 2024
    PMIERs Sufficiency of 165% or approximately $2.0 billion
    Book Value Per Share of $35.20 and Book Value Per Share excluding AOCI of $35.90
    Increased Full-Year Capital Return Guidance to Approximately $400 million

    RALEIGH, N.C., July 30, 2025 (GLOBE NEWSWIRE) — Enact Holdings, Inc. (Nasdaq: ACT) today announced financial results for the second quarter of 2025.

    “Our strong second quarter results underscore the resilience of our business model and the consistency of our execution,” stated Rohit Gupta, President and CEO of Enact. “We continue to navigate an evolving market, grow our insurance in-force, maintain robust risk and expense management and deliver strong capital returns while also investing in our business. As we look ahead, we remain confident in the fundamentals of the housing market and our ability to deliver long-term value for all stakeholders while helping more people responsibly achieve and sustain homeownership.”

    Key Financial Highlights

    (In millions, except per share data or otherwise noted) 2Q25 1Q25 2Q24
    Net Income (loss) $168 $166 $184
    Diluted Net Income (loss) per share $1.11 $1.08 $1.16
    Adjusted Operating Income (loss) $174 $169 $201
    Adj. Diluted Operating Income (loss) per share $1.15 $1.10 $1.27
    NIW ($B) $13 $10 $14
    Primary Persistency Rate 82% 84% 83%
    Primary IIF ($B) $270 $268 $266
    Net Premiums Earned $245 $245 $245
    Losses Incurred $25 $31 $(17)
    Loss Ratio 10% 12% (7)%
    Operating Expenses $53 $53 $56
    Expense Ratio 22% 21% 23%
    Net Investment Income $66 $63 $60
    Net Investment gains (losses) $(7) $(3) $(8)
    Return on Equity 13.0% 13.1% 15.4%
    Adjusted Operating Return on Equity 13.4% 13.4% 16.9%
    PMIERs Sufficiency ($) $1,961 $1,966 $2,057
    PMIERs Sufficiency (%) 165% 165% 169%
           

    Second Quarter 2025 Financial and Operating Highlights

    • Net income was $168 million, or $1.11 per diluted share, compared with $166 million, or $1.08 per diluted share, for the first quarter of 2025 and $184 million, or $1.16 per diluted share, for the second quarter of 2024. Adjusted operating income was $174 million, or $1.15 per diluted share, compared with $169 million, or $1.10 per diluted share, for the first quarter of 2025 and $201 million, or $1.27 per diluted share, for the second quarter of 2024.
    • New insurance written (NIW) was approximately $13 billion, up 35% from the first quarter of 2025, primarily from seasonality in the purchase origination market, and modestly down from the second quarter of 2024. NIW for the current quarter was comprised of 96% monthly premium policies and 93% purchase originations.
    • Persistency remained elevated at 82%, down from 84% in the first quarter of 2025 and down from 83% in the second quarter of 2024. Approximately 7% of the mortgages in our portfolio had rates at least 50 basis points above June 2025’s average mortgage rate of 6.8%.
    • Primary insurance in-force (IIF) was $270 billion, up approximately 1% from $268 billion in the first quarter of 2025 and up approximately  1% from $266 billion in the second quarter of 2024.
    • Net premiums earned were $245 million, approximately flat from the first quarter of 2025 and modestly increased from the second quarter of 2024. The year-over-year increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force, mostly offset by higher ceded premiums.
    • Losses incurred for the second quarter of 2025 were $25 million and the loss ratio was 10%, compared to $31 million and 12%, respectively, in the first quarter of 2025 and $(17) million and (7)%, respectively, in the second quarter of 2024. The current quarter’s reserve release of $48 million from favorable cure performance and loss mitigation activities compares to a reserve release of $47 million and $77 million in the first quarter of 2025 and second quarter of 2024, respectively. The reserve release in the second quarter of 2024 benefited from reduction of claim rate from 10% to 9%.
    • Operating expenses in the current quarter were $53 million, and the expense ratio was 22%. This compared to $53 million and 21%, respectively, in the first quarter of 2025 and $56 million and 23%, respectively in the second quarter of 2024. The year-over-year decrease was primarily driven by the prior year restructuring costs of $3 million from a voluntary separation program.
    • Net investment income was $66 million, up from $63 million in the first quarter of 2025 and up from $60 million in the second quarter of 2024, driven by the continuation of elevated interest rates and higher average invested assets.
    • Net investment gains (losses) in the quarter were $(7) million, as compared to $(3) million sequentially and $(8) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.
    • Annualized return on equity for the second quarter of 2025 was 13.0% and annualized adjusted operating return on equity was 13.4%. This compares to the first quarter of 2025 results of 13.1% and 13.4%, respectively, and to second quarter 2024 results of 15.4% and 16.9%, respectively.

    Capital and Liquidity

    • We paid approximately $31 million, or $0.21 per share, dividend in the second quarter.
    • EMICO completed a dividend of approximately $130 million in the second quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.
    • Enact Holdings, Inc. held $345 million in cash and cash equivalents plus $306 million of invested assets as of June 30, 2025. Combined cash and invested assets decreased $3 million from the prior quarter, primarily due to  share buybacks, our quarterly dividend and interest payment on our debt mostly offset by the contribution from EMICO.
    • PMIERs sufficiency was 165% and $2.0 billion above the PMIERs requirements, compared to 165% and $2.0 billion above the PMIERs requirements in the first quarter of 2025.

    Recent Events

    • We repurchased approximately 2.4 million shares at an average price of $35.45 for a total of approximately $85 million in the quarter. Additionally, through July 25, 2025, we repurchased 0.8 million shares at an average price of $35.86 for a total of $30 million. During the quarter we completed our $250 million share repurchase authorization announced May 1, 2024,  and as of July 25, 2025, there was approximately $262 million remaining of our previously announced $350 million repurchase authorization.
    • We announced today that the Board of Directors declared a quarterly dividend of $0.21 per share, payable on September 8, 2025, to shareholders of record on August 18, 2025.
    • We now anticipate a total 2025 capital return of approximately  $400 million; the final amount and form of capital returned to shareholders will depend on business performance, market conditions, and regulatory approvals.

    Conference Call and Financial Supplement Information
    This press release, the second quarter 2025 financial supplement and earnings presentation are now posted on the Company’s website, https://ir.enactmi.com. Investors are encouraged to review these materials.

    Enact will discuss second quarter financial results in a conference call tomorrow, Thursday, July 31, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN.  It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call.  If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

    The webcast will also be archived on the Company’s website for one year.

    About Enact
    Enact (Nasdaq: ACT), operating principally through its wholly owned subsidiary Enact Mortgage Insurance Corporation since 1981, is a leading U.S. private mortgage insurance provider committed to helping more people achieve the dream of homeownership. Building on a deep understanding of lenders’ businesses and a legacy of financial strength, we partner with lenders to bring best-in class service, leading underwriting expertise, and extensive risk and capital management to the mortgage process, helping to put more people in homes and keep them there. By empowering customers and their borrowers, Enact seeks to positively impact the lives of those in the communities in which it serves in a sustainable way. Enact is headquartered in Raleigh, North Carolina.

    Safe Harbor Statement
    This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, our expected financial and operational results, the related assumptions underlying our expected results, guidance concerning the future return of capital and the quotations of management. These forward-looking statements are distinguished by use of words such as “will,” “may,” “would,” “anticipate,” “expect,” “believe,” “designed,” “plan,” “predict,” “project,” “target,” “could,” “should,” or “intend,” the negative of these terms, and similar references to future periods. These views involve risks and uncertainties that are difficult to predict and, accordingly, our actual results may differ materially from the results discussed in our forward-looking statements. Our forward-looking statements contained herein speak only as of the date of this press release. Factors or events that we cannot predict, including risks related to an economic downturn or a recession in the United States and in other countries around the world; changes in political, business, regulatory, and economic conditions; changes in or to Fannie Mae and Freddie Mac (the “GSEs”), whether through Federal legislation, restructurings or a shift in business practices; failure to continue to meet the mortgage insurer eligibility requirements of the GSEs; competition for customers; lenders or investors seeking alternatives to private mortgage insurance; an increase in the number of loans insured through Federal government mortgage insurance programs, including those offered by the Federal Housing Administration; and other factors described in the risk factors contained in our most recent Annual Report on Form 10-K and other filings with the SEC, may cause our actual results to differ from those expressed in forward-looking statements. Although Enact believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, Enact can give no assurance that its expectations will be achieved and it undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise, except as required by applicable law.

    GAAP/Non-GAAP Disclosure Discussion
    This communication includes the non-GAAP financial measures entitled “adjusted operating income (loss),” “adjusted operating income (loss) per share,” and “adjusted operating return on equity.” Enact Holdings, Inc. (the “Company”) defines adjusted operating income (loss) as net income (loss) excluding the after-tax effects of net investment gains (losses), restructuring costs and infrequent or unusual non-operating items, and gain (loss) on the extinguishment of debt. The Company excludes net investment gains (losses), gains (losses) on the extinguishment of debt and infrequent or unusual non-operating items because the Company does not consider them to be related to the operating performance of the Company and other activities. The recognition of realized investment gains or losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual securities sales due to such factors as market opportunities or exposure management. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these realized gains and losses. We do not view them to be indicative of our fundamental operating activities. Therefore, these items are excluded from our calculation of adjusted operating income. In addition, adjusted operating income (loss) per share is derived from adjusted operating income (loss) divided by shares outstanding. Adjusted operating return on equity is calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity.

    While some of these items may be significant components of net income (loss) in accordance with U.S. GAAP, the Company believes that adjusted operating income (loss) and measures that are derived from or incorporate adjusted operating income (loss), including adjusted operating income (loss) per share on a basic and diluted basis and adjusted operating return on equity, are appropriate measures that are useful to investors because they identify the income (loss) attributable to the ongoing operations of the business. Management also uses adjusted operating income (loss) as a basis for determining awards and compensation for senior management and to evaluate performance on a basis comparable to that used by analysts. Adjusted operating income (loss) and adjusted operating income (loss) per share on a basic and diluted basis are not substitutes for net income (loss) available to Enact Holdings, Inc.’s common stockholders or net income (loss) available to Enact Holdings, Inc.’s common stockholders per share on a basic and diluted basis determined in accordance with U.S. GAAP. In addition, the Company’s definition of adjusted operating income (loss) may differ from the definitions used by other companies.

    Adjustments to reconcile net income (loss) available to Enact Holdings, Inc.’s common stockholders to adjusted operating income (loss) assume a 21% tax rate.

    The tables at the end of this press release provide a reconciliation of net income (loss) to adjusted operating income (loss) and U.S. GAAP return on equity to adjusted operating return on equity for the three months ended June 30, 2025 and 2024, as well as for the three months ended March 31, 2025.

    Exhibit A: Consolidated Statements of Income (amounts in thousands, except per share amounts)

      2Q25 1Q25 2Q24
    REVENUES:      
    Premiums $245,289 $244,786 $244,567
    Net investment income 65,884 63,037 59,773
    Net investment gains (losses) (7,343) (3,243) (7,713)
    Other income 1,060 2,196 2,207
    Total revenues 304,890 306,776 298,834
           
    LOSSES AND EXPENSES:      
    Losses incurred 25,289 30,541 (16,821)
    Acquisition and operating expenses, net of deferrals 50,598 50,094 53,960
    Amortization of deferred acquisition costs and intangibles 2,205 2,429 2,292
    Interest expense 12,296 12,291 13,644
    Loss on debt extinguishment 0 0 10,930
    Total losses and expenses 90,388 95,355 64,005
           
    INCOME BEFORE INCOME TAXES 214,502 211,421 234,829
    Provision for income taxes 46,694 45,643 51,156
    NET INCOME $167,808 $165,778 $183,673
           
    Net investment (gains) losses 7,343 3,243 7,713
    Costs associated with reorganization (24) 629 3,435
    Loss on debt extinguishment 0 0 10,930
    Taxes on adjustments (1,537) (813) (4,636)
    Adjusted Operating Income $173,590 $168,837 $201,115
           
    Loss ratio(1) 10% 12% (7)%
    Expense ratio(2) 22% 21% 23%
    Earnings Per Share Data:      
    Net Income per share      
    Basic $1.12 $1.09 $1.17
    Diluted $1.11 $1.08 $1.16
    Adj operating income per share      
    Basic $1.16 $1.11 $1.28
    Diluted $1.15 $1.10 $1.27
    Weighted-average common shares outstanding      
    Basic 149,940 151,831 157,193
    Diluted 150,729 152,907 158,571
           
    (1)The ratio of losses incurred to net earned premiums.
    (2)The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by zero percentage points for the three-month periods ended June 30, 2025 and March 31, 2025, one percentage point for the three-month period ended June 30, 2024.
     

    Exhibit B: Consolidated Balance Sheets (amounts in thousands, except per share amounts)

    Assets 2Q25 1Q25 2Q24
    Investments:      
    Fixed maturity securities available-for-sale, at fair value $5,896,818 $5,815,337 $5,331,345
    Short term investments 3,001 3,696 12,313
    Total investments 5,899,819 5,819,033 5,343,658
    Cash and cash equivalents 612,967 635,269 699,035
    Accrued investment income 53,259 49,654 45,317
    Deferred acquisition costs 22,910 23,322 24,619
    Premiums receivable 44,091 46,451 48,698
    Other assets 107,882 103,351 98,929
    Deferred tax asset 32,545 44,440 89,116
    Total assets $6,773,473 $6,721,520 $6,349,372
           
    Liabilities and Shareholders’ Equity      
    Liabilities:      
    Loss reserves $551,940 $542,528 $508,138
    Unearned premiums 101,205 107,519 129,870
    Other liabilities 153,447 208,667 143,167
    Long-term borrowings 743,753 743,399 742,368
    Total liabilities 1,550,345 1,602,113 1,523,543
    Equity:      
    Common stock 1,484 1,508 1,561
    Additional paid-in capital 1,927,372 2,007,776 2,220,903
    Accumulated other comprehensive income (104,342) (152,482) (236,305)
    Retained earnings 3,398,614 3,262,605 2,839,670
    Total equity 5,223,128 5,119,407 4,825,829
    Total liabilities and equity $6,773,473 $6,721,520 $6,349,372
           
    Book value per share $35.20 $33.96 $30.91
    Book value per share excluding AOCI $35.90 $34.97 $32.43
           
    U.S. GAAP ROE(1) 13.0% 13.1% 15.4%
    Net investment (gains) losses 0.6% 0.3% 0.6%
    Costs associated with reorganization 0.0% 0.0% 0.3%
    (Gains) losses on early extinguishment of debt 0.0% 0.0% 0.9%
    Taxes on adjustments (0.1)% (0.1)% (0.4)%
    Adjusted Operating ROE(2) 13.4% 13.4% 16.9%
           
    Debt to Capital Ratio 12% 13% 13%
           
    (1)Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
    (2)Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
     

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

    The MIL Network –

    July 31, 2025

  • MIL-OSI: Giants Protocol Powers Tokenization of Real Estate for The Assembly Place, Backed by Singapore’s Sovereign Wealth Fund

    Source: GlobeNewswire (MIL-OSI)

    SINGAPORE, July 29, 2025 (GLOBE NEWSWIRE) — Giants Protocol, a pioneer in AI-powered real-world asset (RWA) tokenization, has announced a landmark collaboration with Singapore-based co-living operator The Assembly Place (TAP) to tokenize real estate assets. This strategic move showcases the protocol’s ability to transform physical infrastructure into on-chain, yield-generating opportunities. The announcement marks a key milestone in Giants’ journey, having been backed by Singapore’s Sovereign Wealth Fund since inception and now delivering tangible use cases in Asia’s fast-evolving tokenization landscape.

    At the Forefront of the RWA Revolution

    As the tokenization of real-world assets shifts from experimentation to full-scale adoption, Giants Protocol is delivering the AI-powered infrastructure to lead this next wave. Giants transforms traditionally complex investment products into seamless, on-chain, yield-generating opportunities.

     Key Features:

    • AI-Driven Intelligence: Giants multi-agent AI monitors RWA asset performance, market conditions, and risk exposures across jurisdictions to enable smart, compliant execution.
    • Automated Optimization: Strategies for yield, collateral, and liquidity management are dynamically adjusted by AI 24/7, reducing manual intervention and human error.
    • Cross-Chain Deployment at Scale: Giant’s modular design enables frictionless integration across ecosystems like Sonic, Hyperliquid, Cosmos, and more. Scaling RWA access to global participants.

    By embedding AI at the core, Giants Protocol is redefining how real-world assets are brought on-chain efficiently, compliantly, and at scale.

    Leading the RWA Compliance Surge

    1. Regulatory Alignment
    Giants aligns closely with Regional regulatory frameworks, working alongside policy experts to ensure compliant deployment of tokenized bonds, credit, and real estate assets. As part of 2MR Labs, the team prioritizes legal enforceability and cross-border interoperability from day one.

    2. Infrastructure Breakthroughs
    Through its AI agents and modular architecture, Giants automates key processes in RWA tokenization in pricing, collateral management, and multi-chain movement. Removing the need for manual oversight.

    3. Market Acceleration
    With the RWA market expected to exceed $40 trillion by 2030, Giants is positioning itself as the gateway for institutional-grade tokenized assets in Asia. Backed by sovereign support and regional asset managers, the protocol has begun piloting treasury-backed and real estate-linked RWAs.

    4. Addressing Bottlenecks
    Giants tackles the toughest RWA hurdles, liquidity fragmentation and legal complexity. Through zk-proof attestations, stablecoin-backed settlements, and programmable legal agreements. Its AI system ensures real-time monitoring and compliance across jurisdictions.

    Real-World Impact: Helping The Assembly Place Enter the Web3 Economy

    One of Giants Protocol’s flagship collaborations is with The Assembly Place (TAP), Singapore’s leading co-living space operator.

    Through this partnership, Giants:

    • Enabled Tokenization of Real Estate Assets
      By helping TAP explore converting its co-living properties into tokenized, yield-generating digital assets, Giants opened up new funding models for physical infrastructure and empowering a vibrant global community culture for digital natives.
    • Offered Strategic Advisory and AI Tools
      Giants provided RWA, Web3 strategy and optimizing digital assets tailored to TAP’s business model.
    • Drove Go-To-Market and Community Engagement
      Giants played a vital role in building the bridge between TAP and the crypto-native community, creating narratives and GTM strategies that connected both traditional and Web3 audiences.

    TAP is a testament to how Giants Protocol supports asset-rich, cash-constrained businesses in unlocking new liquidity through intelligent tokenization and building a globalized community living.

    Institutional Credibility

    Giants Protocol stands as one of the most institutionally trusted RWA infrastructure builders in the ecosystem.

    Additional backers include:
    Plug and Play VC, BreederDAO (by a16z), Trinity Ventures, Eden Ventures, LucidBlue Ventures, PG Capital, Brinc, Digital Consensus Fund, CSP DAO, London Real Ventures.

    About Giants Protocol

    Giants Protocol is a real-world asset (RWA) tokenization platform powered by a multi-agent AI system, developed by 2MR Labs. It integrates AI-driven investment infrastructure, compliance tooling, and seamless multi-chain access to streamline and scale the tokenization process. Invested by Singapore’s Sovereign Wealth Fund since day one and top global investors, Giants Protocol is building the foundation for the next phase of asset innovation.

    Contact:

    ARTHUR LIN, CEO
    arthur.lin@2mrlabs.com

    Disclaimer: This content is provided by Giants Protocol. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

    Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d943c7ac-1880-4ec1-be6b-499a94d9d5ab

    The MIL Network –

    July 30, 2025

  • MIL-OSI: Lakeland Financial Reports Record Second Quarter Performance; Net Income Grows by 20% to $27.0 Million, as Net Interest Income Expands by 14%

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Ind., July 25, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $27.0 million for the three months ended June 30, 2025, which represents an increase of $4.4 million, or 20%, compared with net income of $22.5 million for the three months ended June 30, 2024. Diluted earnings per share were $1.04 for the second quarter of 2025 and increased $0.17, or 20%, compared to $0.87 for the second quarter of 2024. On a linked quarter basis, net income increased $6.9 million, or 34%, from $20.1 million. Diluted earnings per share increased $0.26, or 33%, from $0.78 on a linked quarter basis.

    Pretax pre-provision earnings, which is a non-GAAP measure, were $35.9 million for the three months ended June 30, 2025, an increase of $528,000, or 1%, compared to $35.4 million for the three months ended June 30, 2024. Adjusted core operational profitability, a non-GAAP measure that excludes the impact of certain non-routine operating events that occurred during 2024, improved by $7.8 million, or 41%, from $19.2 million to $27.0 million for the three months ended June 30, 2024 and 2025, respectively.

    The company further reported net income of $47.1 million for the six months ended June 30, 2025, versus $46.0 million for the comparable period of 2024, an increase of $1.1 million, or 2%. Diluted earnings per share also increased 2% to $1.82 for the six months ended June 30, 2025, versus $1.78 for the comparable period of 2024. Pretax pre-provision earnings were $67.0 million for the six months ended June 30, 2025, an increase of $2.2 million, or 3%, compared to $64.7 million for the six months ended June 30, 2024. Adjusted core operational profitability improved by $5.2 million, or 12%, from $41.8 million to $47.1 million for the six months ended June 30, 2024 and 2025, respectively.

    “We are pleased to report strong earnings momentum for the second quarter of 2025, which has benefited from double digit growth of net interest income and contributed to good overall performance in the first half of 2025,” observed David M. Findlay, Chairman and CEO. “Importantly, our Lake City Bank Team continues to generate healthy loan and deposit growth. It’s been a rewarding first six months of 2025 with this strong financial performance, healthy balance sheet growth and continued success on the business development front for all of our revenue producing teams.”

    Quarterly Financial Performance

    Second Quarter 2025 versus Second Quarter 2024 highlights:

    • Return on average equity of 15.52%, compared to 14.19%
    • Return on average assets of 1.57%, compared to 1.37%
    • Tangible book value per share grew by $2.14, or 8%, to $27.48
    • Average loans grew by $194.8 million, or 4%, to $5.23 billion
    • Core deposits grew by $423.9 million, or 8%, to $6.03 billion
    • Net interest margin improved 25 basis points to 3.42% versus 3.17%
    • Net interest income increased by $6.6 million, or 14%
    • Provision expense of $3.0 million, compared to $8.5 million
    • Watch list loans as a percentage of total loans improved to 3.67% from 5.31%
    • Nonaccrual loans declined 46% to $30.6 million compared to $57.1 million
    • Common equity tier 1 capital ratio improved to 14.73%, compared to 14.28%
    • Total risk-based capital ratio improved to 15.86%, compared to 15.53%
    • Tangible capital ratio improved to 10.15%, compared to 9.91%
    • Average equity increased by $58.0 million, or 9%

    Second Quarter 2025 versus First Quarter 2025 highlights:

    • Return on average equity of 15.52%, compared to 11.70%
    • Return on average assets of 1.57%, compared to 1.20%
    • Average loans grew by $43.7 million, or 1%, to $5.23 billion
    • Core deposits grew by $191.6 million, or 3%, to $6.03 billion
    • Net interest margin improved 2 basis points to 3.42% versus 3.40%
    • Net interest income increased by $2.0 million, or 4%
    • Pretax, pre-provision earnings increased $4.9 million, or 16%
    • Provision expense of $3.0 million, compared to $6.8 million
    • Nonaccrual loans declined 47% to $30.6 million compared to $57.4 million
    • Watch list loans as a percentage of total loans improved to 3.67% from 4.13%
    • Common equity tier 1 capital ratio of 14.73%, compared to 14.51%
    • Total risk-based capital ratio of 15.86%, compared to 15.77%
    • Tangible capital ratio of 10.15%, compared to 10.09%

    Capital Strength

    The company’s total capital as a percentage of risk-weighted assets improved to 15.86% at June 30, 2025, compared to 15.53% at June 30, 2024 and 15.77% at March 31, 2025. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

    The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.15% at June 30, 2025, compared to 9.91% at June 30, 2024 and 10.09% at March 31, 2025. Unrealized losses from available-for-sale investment securities were $185.3 million at June 30, 2025, compared to $194.9 million at June 30, 2024 and $188.3 million at March 31, 2025. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, was 12.17% at June 30, 2025, compared to 12.18% at June 30, 2024, and 12.19% at March 31, 2025.

    As announced on July 8, 2025, the board of directors approved a cash dividend for the second quarter of $0.50 per share, payable on August 5, 2025, to shareholders of record as of July 25, 2025. The second quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the second quarter of 2024.

    The company utilized its share repurchase program during the second quarter of 2025 and repurchased 30,300 shares of its common stock for $1.7 million at a weighted average price per share of $55.94. The company has $28.3 million of remaining availability under the board-approved share repurchase program.

    “Our capital position is strong and provides capacity for continued organic growth of our balance sheet as well as continued growth of our common stock dividend to shareholders,” stated Kristin L. Pruitt, President. “While we did utilize our share repurchase program during the second quarter, our priority for capital is to continue capital retention to support loan growth in our Indiana markets and provide for continued balance sheet growth opportunities.”

    Loan Portfolio

    Average total loans of $5.23 billion in the second quarter of 2025 increased $194.8 million, or 4%, from $5.03 billion for the second quarter of 2024 and increased $43.7 million, or 1%, from $5.19 billion for the first quarter of 2025. Average total loans for the six months ended June 30, 2025 were $5.21 billion, an increase of $205.0 million, or 4%, from $5.00 billion for the six months ended June 30, 2024.

    Total loans, excluding deferred fees and costs, increased by $173.8 million, or 3%, from $5.06 billion as of June 30, 2024, to $5.23 billion as of June 30, 2025. The increase in loans occurred across much of the portfolio, with our commercial real estate and multi-family residential loan portfolio growing by $177.0 million, or 7%, our consumer 1-4 family mortgage loan portfolio growing by $46.2 million, or 10%, and our other consumer loan portfolio growing by $6.0 million, or 6%. These increases were offset by contractions to our commercial and industrial loan portfolio of $32.5 million, or 2%, and our agri-business and agricultural loan portfolio of $21.6 million, or 6%. On a linked quarter basis, total loans, excluding deferred fees and costs, increased by $3.4 million, or less than 1%, from $5.23 billion at March 31, 2025. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $59.6 million, or 2%, and growth in total consumer loans of $17.5 million, or 3%. This growth was offset by contractions in total agri-business and agricultural loans of $44.3 million, or 12%, and total commercial and industrial loans of $29.8 million, or 2%.

    Commercial loan originations for the second quarter included approximately $390.0 million in loan originations, offset by approximately $404.0 million in commercial loan pay downs. Line of credit usage increased to 44% as of June 30, 2025, compared to 41% at June 30, 2024 and 43% as of March 31, 2025. Total available lines of credit contracted by $48.0 million, or 1%, as compared to a year ago, and line usage increased by $100.0 million, or 5%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $106.9 million for this sector represented 2% of total loans at June 30, 2025, an increase of $6.4 million, or 6%, from March 31, 2025. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 221% of total risk-based capital at June 30, 2025.

    “We are pleased that commercial line utilization continues to improve with a utilization rate of 44% at the end of the second quarter 2025,” added Findlay. “This marks the highest line utilization rate since 2020, and we are encouraged that borrower demand for working lines of capital has increased. During the second quarter, construction loans migrated as planned to the CRE multi-family segment. In addition, loan payoffs received during the second quarter impacted the owner occupied CRE and Agriculture segments.”

    Diversified Deposit Base

    The bank’s diversified deposit base has grown on a year-over-year basis and on a linked quarter basis.

    (in thousands) June 30, 2025   March 31, 2025   June 30, 2024
    Retail $ 1,755,750   28.4 %   $ 1,787,992   30.0 %   $ 1,724,777   29.9 %
    Commercial   2,256,620   36.6       2,336,910   39.2       2,150,127   37.3  
    Public funds   2,014,047   32.6       1,709,883   28.7       1,727,593   30.0  
    Core deposits   6,026,417   97.6       5,834,785   97.9       5,602,497   97.2  
    Brokered deposits   150,416   2.4       125,409   2.1       161,040   2.8  
    Total $ 6,176,833   100.0 %   $ 5,960,194   100.0 %   $ 5,763,537   100.0 %
     

    Total deposits increased $413.3 million, or 7%, from $5.76 billion as of June 30, 2024, to $6.18 billion as of June 30, 2025. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $423.9 million, or 8%. Total core deposits at June 30, 2025 were $6.03 billion and represented 98% of total deposits, as compared to $5.60 billion and 97% of total deposits at June 30, 2024.

    The increase in core deposits since June 30, 2024, reflects growth in all three core deposit segments. Public funds deposits grew annually by $286.5 million, or 17%, to $2.01 billion. Public funds deposits as a percentage of total deposits were 33%, up from 30% a year ago. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Commercial deposits grew annually by $106.5 million, or 5%, to $2.26 billion and remained at 37% as a percentage of total deposits. Retail deposits grew by $31.0 million, or 2%, to $1.76 billion. Retail deposits as a percentage of total deposits was 28% of total deposits, down from 30% a year ago.

    On a linked quarter basis, total deposits increased $216.6 million, or 4%, from $5.96 billion at March 31, 2025, to $6.18 billion at June 30, 2025. Core deposits increased by $191.6 million, or 3%, while brokered deposits increased by $25.0 million, or 20%. The linked quarter growth in core deposits, was positively impacted by the addition of new public funds customers. Offsetting this increase was a decrease in commercial deposits of $80.3 million, or 3%, and a decrease in retail deposits of $32.2 million, or 2%.

    Average total deposits were $6.10 billion for the second quarter of 2025, an increase of $276.5 million, or 5%, from $5.82 billion for the second quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $263.4 million, or 6%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $492.4 million, or 15%. Offsetting this increase was a reduction in average time deposits of $225.9 million, or 22%, and a decrease to average savings deposits of $3.2 million, or 1%. Average noninterest-bearing demand deposits increased by $13.2 million, or 1% to $1.2 billion.

    On a linked quarter basis, average total deposits increased by $221.8 million, or 4%, from $5.87 billion for the first quarter of 2025 to $6.10 billion for the second quarter of 2025. Average interest bearing deposits drove the increase to total average deposits, which increased by $236.1 million, or 5%. Average interest bearing checking accounts were responsible for the increase, growing by $281.5 million, or 8%. Offsetting this increase were decreases to total average time deposits of $47.4 million, or 6%, and average noninterest bearing demand deposits decreased by $14.3 million, or 1%.

    Checking account trends as of June 30, 2025 compared to June 30, 2024 include growth of $352.1 million, or 23%, in aggregate public fund checking account balances, growth of $93.4 million, or 5%, in aggregate commercial checking account balances, and growth of $52.2 million, or 6%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 9% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during the prior twelve months.

    “Deposit growth is strong in many measurable ways. All deposit segments have grown on a year over year basis, and the bank continues to add new public fund customers and their operating accounts,” commented Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer.

    Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 59% as of June 30, 2025, compared to 57% at March 31, 2025, and 58% at June 30, 2024, reflecting growth in public fund deposits over those periods. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund, which insures public funds deposits in Indiana, were 27% of total deposits at June 30, 2025, compared to 29% at March 31, 2025, and 29% at June 30, 2024. At June 30, 2025, 98% of deposit accounts had deposit balances less than $250,000.

    Net Interest Margin

    Net interest margin was 3.42% for the second quarter of 2025, representing a 25 basis point increase from 3.17% for the second quarter of 2024. This improvement was driven by a reduction in the company’s funding costs, with interest expense as a percentage of average earning assets falling by 49 basis points from 2.90% for the second quarter of 2024 to 2.41% for the second quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 24 basis points from 6.07% for the second quarter of 2024 to 5.83% for the second quarter of 2025. During the second quarter of 2025, the company recorded a prepayment fee of $541,000 from the early payment of a fixed rate commercial loan, which was recorded as part of interest income. The prepayment fee benefited net interest margin by 3 basis points for the second quarter. Excluding the impact of the prepayment penalty, net interest margin improved by 22 basis points. The easing of monetary policy by the Federal Reserve Bank, which began in September of 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing as compared to the prior year quarter.

    Net interest margin expanded by 2 basis points to 3.42% for the second quarter of 2025, compared to 3.40% for the linked first quarter of 2025. Average earning asset yields increased by 6 basis points from 5.77% to 5.83% on a linked quarter basis and interest expense as a percentage of average earning assets increased 4 basis points from 2.37% to 2.41%. Excluding the impact of the prepayment penalty, net interest margin contracted by 1 basis point compared to the linked first quarter.

    The cumulative loan beta for the current rate-easing cycle that began in September 2024 is 29% compared to the deposit beta of 50% and has resulted in net interest margin expansion which has benefited net interest income. Net interest income was $54.9 million for the second quarter of 2025, representing an increase of $6.6 million, or 14%, as compared to $48.3 million for the second quarter of 2024. On a linked quarter basis, net interest income increased $2.0 million, or 4%, from $52.9 million for the first quarter of 2025. Net interest income increased by $12.0 million, or 13%, from $95.7 million for the six months ended June 30, 2024, to $107.8 million for the six months ended June 30, 2025.

    O’Neill noted, “We are pleased to report healthy net interest margin expansion of 25 basis points as compared to a year ago. In this higher-for-longer interest rate environment, we continue to benefit from fixed rate loan repricing and new loan origination activity. In addition, we are pleased that our core deposits represent 98% of our total funding needs compared to 97% a year ago. Core deposit growth has outpaced our loan growth in 2025, which has strengthened our liquidity position. We have begun to reinvest some maturing investment securities into higher yielding investment securities with short duration, which is also benefiting net interest margin.”

    Asset Quality

    The company recorded a provision for credit losses of $3.0 million in the second quarter of 2025, a decrease of $5.5 million as compared to $8.5 million in the second quarter of 2024. On a linked quarter basis, the provision expense decreased by $3.8 million, from $6.8 million for the first quarter of 2025. Provision expense for the second quarter and for the six months ended June 30, 2025, was primarily driven by an increase in the specific allocation for a previously disclosed $43.3 million nonperforming credit for an industrial company in Northern Indiana as well as loan growth. During the second quarter of 2025, the non-performing borrower reached an agreement to sell and liquidate the business to two unrelated entities. The transactions are expected to close in the third quarter of 2025. As a result of the pending sale and liquidation, the company recognized a charge off of $28.6 million during the second quarter, which was fully allocated at the time of the charge off. The company expects to collect the remainder of the outstanding principal balance from sale and liquidation proceeds and proceeds from the personal guarantee from the borrower.

    The ratio of allowance for credit losses to total loans was 1.27% at June 30, 2025, down from 1.60% at June 30, 2024, and 1.77% at March 31, 2025. The decrease in the allowance coverage was due to a significant reduction of 46%, or $26.5 million, in nonaccrual loans, which were $30.6 million at June 30, 2025 versus $57.1 million at June 30, 2024. Net charge offs in the second quarter of 2025 were $28.9 million, compared to $949,000 in the second quarter of 2024 and $327,000 during the linked first quarter of 2025. Annualized net charge offs to average loans were 2.22% for the second quarter of 2025, compared to 0.08% for the second quarter of 2024 and 0.03% for the linked first quarter of 2025. Annualized net charge offs to average loans were 1.13% for the six months ended June 30, 2025 compared to 0.05% for the six months ended June 30, 2024.

    Nonperforming assets decreased $26.5 million, or 46%, to $31.1 million as of June 30, 2025, versus $57.6 million as of June 30, 2024. On a linked quarter basis, nonperforming assets decreased $26.8 million, or 46%, compared to $57.9 million as of March 31, 2025. The ratio of nonperforming assets to total assets at June 30, 2025 decreased to 0.45% from 0.88% at June 30, 2024, and decreased from 0.84% at March 31, 2025.

    Total individually analyzed and watch list loans decreased by $76.6 million, or 29%, to $191.6 million as of June 30, 2025, versus $268.3 million as of June 30, 2024. On a linked quarter basis, total individually analyzed and watch list loans decreased by $23.9 million, or 11%, from $215.6 million at March 31, 2025. Watch list loans as a percentage of total loans were 3.67% at June 30, 2025, a decrease of 164 basis points compared to 5.31% at June 30, 2024, and 46 basis points from 4.13% at March 31, 2025.

    “We are pleased to have reached a resolution on the nonperforming loan that we have been working through for the past several quarters,” stated Findlay. “Importantly, our semi-annual loan portfolio reviews with all loan officers of the bank affirmed that asset quality is stable and that economic conditions in our footprint are contributing to new business development opportunities. We continue to monitor the impact of tariffs on our borrowers. It is too early to quantify the impact of U.S. trade policy on our borrowers’ businesses, although there appears to be less concern on the impact of tariffs that we heard from borrowing clients previously.”

    Investment Portfolio Overview

    Total investment securities were $1.13 billion at June 30, 2025, reflecting an increase of $5.5 million, or less than 1%, as compared to $1.12 billion at June 30, 2024. Investment securities represented 16% of total assets on June 30, 2025, as compared to 17% and June 30, 2024 and March 31, 2025. The company anticipates receiving principal and interest cash flows of approximately $54.5 million during the remainder of 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as to fund reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at June 30, 2025, compared to 6.5 years at June 30, 2024 and unchanged from 5.9 years at March 31, 2025.

    Noninterest Income

    The company’s noninterest income decreased $9.0 million, or 44%, to $11.5 million for the second quarter of 2025, compared to $20.4 million for the second quarter of 2024. Noninterest income was elevated during the second quarter of 2024 as compared to the second quarter of 2025 as a result of the net gain on Visa shares of $9.0 million that was recorded in the second quarter of 2024. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effect of the net gain on Visa shares and an insurance recovery, increased $58,000, or less than 1%, from $11.4 million during the second quarter of 2024. Bank owned life insurance income increased $150,000, or 17%, primarily as a result of increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Mortgage banking income increased $101,000 due to growth in the company’s mortgage pipeline, which favorably impacted secondary market loan sale gains and mortgage rate lock income. Wealth advisory fees increased $70,000, or 3%, driven by continued growth in customers and assets under management. Investment brokerage fees increased $72,000, or 15%, due to increased volume and product mix. Offsetting these increases was a decrease to other income of $296,000, or 43%, primarily driven by reduced limited partnership investment income.

    Noninterest income for the second quarter of 2025 increased by $558,000, or 5%, on a linked quarter basis from $10.9 million during the first quarter of 2025. Bank owned life insurance income increased $718,000, or 223%, primarily as a result of improved market performance of the bank’s variable owned life insurance policies and increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Loan and service fee income increased $122,000, or 4%, from increased interchange fee income. Mortgage banking income increased $175,000, as a result of income derived from secondary mortgage sales and pipeline growth. Investment brokerage fees income increased $98,000, or 22%. Offsetting these increases was a decrease to other income of $460,000, or 54%, primarily a result of reduced limited partnership investment income. Wealth advisory fees, which benefited in the linked first quarter of 2025 from significant estate settlement fee income decreased $200,000, or 7%.

    “The linked quarter improvement of noninterest income of 5% is encouraging as we continue to focus on growing our fee-based businesses,” noted Findlay. “We are particularly pleased with the continued growth of our Wealth Advisory Management area, which has recently added revenue generating employees in our footprint with a focus in Indianapolis. Assets under management in this area have reached nearly $3.0 billion at quarter end.”

    Noninterest income decreased by $10.6 million, or 32%, to $22.4 million for the six months ended June 30, 2025, compared to $33.1 million for the prior year six-month period. Noninterest income was elevated during the first six months of 2024 as compared to the comparable period of 2025 primarily because of the net gain on Visa shares of $9.0 million and a $1.0 million insurance recovery. Adjusted core noninterest income, a non-GAAP financial measure that excludes the impact of these non-routine events, declined $626,000, or 3%, from $23.0 million for the six months ended June 30, 2024. Other income decreased $1.6 million, or 56%, as other income during the first six months of 2024 benefited from the $1.0 million insurance recovery. Reduced limited partnership investment income further contributed to the decline between the periods. Bank owned life insurance income decreased $564,000, or 29%, primarily as a result of reduced market performance from the bank’s variable bank owned life insurance policies, which correlate to returns in the equities markets. Offsetting these decreases were increases to wealth advisory fees of $482,000, or 10%, and service charges on deposit accounts of $104,000, or 2%. The increase in wealth advisory fees was primarily driven by continued growth in customers and assets under management.

    Noninterest Expense

    Noninterest expense decreased $2.9 million, or 9%, to $30.4 million for the second quarter of 2025, compared to $33.3 million during the second quarter of 2024. Noninterest expense was elevated during the second quarter of 2024 as compared to 2025 due to a $4.5 million accrual that was recorded from the resolution of a legal matter. Adjusted core noninterest expense, which excludes the impact of the legal accrual, increased $1.6 million, or 6%, from $28.8 million for the second quarter of 2024. Salaries and benefits expense increased by $938,000, or 6%. The primary drivers for the increase to salaries and benefits expense were increased salaries expense of $756,000 and increased health insurance expense of $127,000. Additionally, data processing fees and supplies expense increased $340,000, or 9%, from continued investment in customer-facing and operational technology solutions. Offsetting these increases were decreases to other expense of $3.8 million, or 62%, professional fees of $417,000, or 20%, and corporate and business development expense of $105,000, or 8%. The decrease to other expense was driven by the legal accrual recorded during the second quarter of 2024. The decrease to professional fees was primarily driven by reduced technology implementation consulting fees and swap collateral fees. Corporate and business development expense decreased primarily as a result of lower advertising expense.

    On a linked quarter basis, noninterest expense decreased by $2.3 million, or 7%, from $32.8 million during the first quarter of 2025. The primary drivers for the decrease to noninterest expense was a decrease to salaries and employee benefits of $806,000, or 5%, due to a reduction in HSA contributions expense of $441,000, resulting from the timing of the annual employer contribution to employee accounts, and a reduction in performance-based compensation accruals. Professional fees decreased $674,000, or 28%, and were primarily driven by reduced technology implementation consulting fees and swap collateral interest expense. Other expense decreased $353,000, or 13%, as other expense was elevated in the linked first quarter of 2025 from the timing of semiannual director share awards. Corporate and business development expense decreased by $246,000, or 18%, due to reduced advertising expense, primarily driven by the timing of when advertisement television spots were purchased and utilized. Net occupancy expense decreased $233,000, or 12%, due to reductions in seasonal expenses. Data processing fees and supplies expense decreased $113,000, or 3%.

    Noninterest expense decreased by $843,000, or 1%, for the six months ended June 30, 2025 to $63.2 million compared to $64.0 million for the six months ended June 30, 2024. Adjusted core noninterest expense, which excludes the impact of the $4.5 million legal accrual, increased $3.7 million, or 6%, from $59.5 million for the six months ended June 30, 2024. Salaries and benefits expense increased by $2.0 million, or 6%. Data processing fees and supplies and expense increased $766,000, or 10%. Net occupancy expense increased $289,000, or 8%, as a result of increased occupancy expense from the continued expansion of the company’s branch network and improvements to existing facilities. Offsetting these increases were decreases to other expense of $3.4 million, or 41%, and professional fees of $500,000, or 11%.

    The company’s efficiency ratio was 45.9% for the second quarter of 2025, compared to 48.5% for the second quarter of 2024 and 51.4% for the linked first quarter of 2025. The company’s adjusted core efficiency ratio, a non-GAAP financial measure, was 48.2% for the second quarter of 2024.

    The company’s efficiency ratio was 48.6% for the six months ended June 30, 2025, compared to 49.7% for the comparable period in 2024. The company’s adjusted core efficiency ratio was 50.1% for the six months ended June 30, 2024.

    Findlay added, “We are pleased with the improvement in our efficiency ratio, which has benefited from strong core revenue growth of 10% on a year-over-year basis. Our growth in noninterest expense is focused on continued investments in human capital, technology solutions and organic expansion of our banking footprint, particularly in Indianapolis.”

    Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $7.0 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

    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,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. 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. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

     

    LAKELAND FINANCIAL CORPORATION
    SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS
     
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30,
    END OF PERIOD BALANCES   2025       2025       2024       2025       2024  
    Assets $ 6,964,301     $ 6,851,178     $ 6,568,807     $ 6,964,301     $ 6,568,807  
    Investments   1,129,346       1,132,854       1,123,803       1,129,346       1,123,803  
    Loans   5,226,827       5,223,221       5,052,341       5,226,827       5,052,341  
    Allowance for Credit Losses   66,552       92,433       80,711       66,552       80,711  
    Deposits   6,176,833       5,960,194       5,763,537       6,176,833       5,763,537  
    Brokered Deposits   150,416       125,409       161,040       150,416       161,040  
    Core Deposits (1)   6,026,417       5,834,785       5,602,497       6,026,417       5,602,497  
    Total Equity   709,987       694,509       654,590       709,987       654,590  
    Goodwill Net of Deferred Tax Assets   3,803       3,803       3,803       3,803       3,803  
    Tangible Common Equity (2)   706,184       690,706       650,787       706,184       650,787  
    Adjusted Tangible Common
    Equity (2)    		   866,758       854,585       820,534       866,758       820,534  
    AVERAGE BALANCES                  
    Total Assets $ 6,904,681     $ 6,762,970     $ 6,642,954     $ 6,834,217     $ 6,598,711  
    Earning Assets   6,570,607       6,430,804       6,295,281       6,501,092       6,256,105  
    Investments   1,125,597       1,136,404       1,118,776       1,130,970       1,138,639  
    Loans   5,229,646       5,185,918       5,034,851       5,207,903       5,002,935  
    Total Deposits   6,096,504       5,874,725       5,819,962       5,986,227       5,725,196  
    Interest Bearing Deposits   4,852,446       4,616,381       4,589,059       4,735,066       4,472,693  
    Interest Bearing Liabilities   4,886,943       4,716,465       4,666,136       4,802,175       4,599,136  
    Total Equity   696,976       696,053       638,999       696,517       642,003  
    INCOME STATEMENT DATA                  
    Net Interest Income $ 54,876     $ 52,875     $ 48,296     $ 107,751     $ 95,712  
    Net Interest Income-Fully Tax Equivalent   55,986       53,983       49,493       109,970       98,176  
    Provision for Credit Losses   3,000       6,800       8,480       9,800       10,000  
    Noninterest Income   11,486       10,928       20,439       22,414       33,051  
    Noninterest Expense   30,432       32,763       33,333       63,195       64,038  
    Net Income   26,966       20,085       22,549       47,051       45,950  
    Pretax Pre-Provision Earnings (2)   35,930       31,040       35,402       66,970       64,725  
    PER SHARE DATA                  
    Basic Net Income Per Common Share $ 1.05     $ 0.78     $ 0.88     $ 1.83     $ 1.79  
    Diluted Net Income Per
    Common Share    		   1.04       0.78       0.87       1.82       1.78  
    Cash Dividends Declared Per Common Share   0.50       0.50       0.48       1.00       0.96  
    Dividend Payout   48.08 %     64.10 %     55.17 %     54.95 %     53.93 %
    Book Value Per Common Share (equity per share issued) $ 27.63     $ 26.99     $ 25.49     $ 27.63     $ 25.49  
    Tangible Book Value Per Common Share (2)   27.48       26.85       25.34       27.48       25.34  
    Market Value – High $ 62.39     $ 71.77     $ 66.62     $ 71.77     $ 73.22  
    Market Value – Low   50.00       58.24       57.59       50.00       57.59  
                       
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30,
    KEY RATIOS   2025       2025       2024       2025       2024  
    Basic Weighted Average Common Shares Outstanding   25,707,233       25,714,818       25,678,231       25,711,004       25,667,647  
    Diluted Weighted Average Common Shares Outstanding   25,776,205       25,802,865       25,742,871       25,782,817       25,746,773  
    Return on Average Assets   1.57 %     1.20 %     1.37 %     1.39 %     1.40 %
    Return on Average Total Equity   15.52       11.70       14.19       13.62       14.39  
    Average Equity to Average Assets   10.09       10.29       9.62       10.19       9.73  
    Net Interest Margin   3.42       3.40       3.17       3.41       3.16  
    Efficiency (Noninterest Expense/Net Interest Income
    plus Noninterest Income)    		   45.86       51.35       48.49       48.55       49.73  
    Loans to Deposits   84.62       87.64       87.66       84.62       87.66  
    Investment Securities to Total Assets   16.22       16.54       17.11       16.22       17.11  
    Tier 1 Leverage (3)   12.21       12.30       11.98       12.21       11.98  
    Tier 1 Risk-Based Capital (3)   14.73       14.51       14.28       14.73       14.28  
    Common Equity Tier 1 (CET1) (3)   14.73       14.51       14.28       14.73       14.28  
    Total Capital (3)   15.86       15.77       15.53       15.86       15.53  
    Tangible Capital (2)   10.15       10.09       9.91       10.15       9.91  
    Adjusted Tangible Capital (2)   12.17       12.19       12.18       12.17       12.18  
    ASSET QUALITY                  
    Loans Past Due 30 – 89 Days $ 1,648     $ 4,288     $ 1,615     $ 1,648     $ 1,615  
    Loans Past Due 90 Days or More   7       7       26       7       26  
    Nonaccrual Loans   30,627       57,392       57,124       30,627       57,124  
    Nonperforming Loans   30,634       57,399       57,150       30,634       57,150  
    Other Real Estate Owned   284       284       384       284       384  
    Other Nonperforming Assets   183       193       90       183       90  
    Total Nonperforming Assets   31,101       57,876       57,624       31,101       57,624  
    Individually Analyzed Loans   52,069       81,346       78,533       52,069       78,533  
    Non-Individually Analyzed Watch List Loans   139,548       134,218       189,726       139,548       189,726  
    Total Individually Analyzed and Watch List Loans   191,617       215,564       268,259       191,617       268,259  
    Gross Charge Offs   29,111       508       1,076       29,619       1,580  
    Recoveries   230       181       127       411       319  
    Net Charge Offs/(Recoveries)   28,881       327       949       29,208       1,261  
    Net Charge Offs/(Recoveries) to Average Loans   2.22 %     0.03 %     0.08 %     1.13 %     0.05 %
    Credit Loss Reserve to Loans   1.27       1.77       1.60       1.27       1.60  
    Credit Loss Reserve to Nonperforming Loans   217.25       161.04       141.23       217.25       141.23  
    Nonperforming Loans to Loans   0.59       1.10       1.13       0.59       1.13  
    Nonperforming Assets to Assets   0.45       0.84       0.88       0.45       0.88  
    Total Individually Analyzed and Watch List Loans to Total Loans   3.67 %     4.13 %     5.31 %     3.67 %     5.31 %
                       
                       
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30
    KEY RATIOS   2025       2025       2024       2025       2024,  
    OTHER DATA                  
    Full Time Equivalent Employees   675       647       653       675       653  
    Offices   54       54       53       54       53  
    (1 ) Core deposits equals deposits less brokered deposits.
    (2 ) Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
    (3 ) Capital ratios for June 30, 2025 are preliminary until the Call Report is filed.
       
    CONSOLIDATED BALANCE SHEETS (in thousands, except share data)      
    ​ June 30,
    2025    		   December 31,
    2024
    ​ (Unaudited)   ​
    ASSETS      
    Cash and due from banks $ 97,413     $ 71,733  
    Short-term investments   212,767       96,472  
    Total cash and cash equivalents   310,180       168,205  
    Securities available-for-sale, at fair value   996,957       991,426  
    Securities held-to-maturity, at amortized cost (fair value of $107,979 and $113,107, respectively)   132,389       131,568  
    Real estate mortgage loans held-for-sale   1,637       1,700  
    Loans, net of allowance for credit losses of $66,552 and $85,960   5,160,275       5,031,988  
    Land, premises and equipment, net   61,449       60,489  
    Bank owned life insurance   127,399       113,320  
    Federal Reserve and Federal Home Loan Bank stock   21,420       21,420  
    Accrued interest receivable   29,109       28,446  
    Goodwill   4,970       4,970  
    Other assets   118,516       124,842  
    Total assets $ 6,964,301     $ 6,678,374  
    ​      
    LIABILITIES      
    Noninterest bearing deposits $ 1,261,740     $ 1,297,456  
    Interest bearing deposits   4,915,093       4,603,510  
    Total deposits   6,176,833       5,900,966  
           
    Borrowings      
    Federal Home Loan Bank advance   1,200       0  
    Other borrowings   5,000     0  
    Total borrowings   6,200       0  
           
    Accrued interest payable   9,996       15,117  
    Other liabilities   61,285       78,380  
    Total liabilities   6,254,314       5,994,463  
    ​      
    STOCKHOLDERS’ EQUITY      
    Common stock: 90,000,000 shares authorized, no par value      
    26,016,494 shares issued and 25,525,105 outstanding as of June 30, 2025      
    25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024   130,664       129,664  
    Retained earnings   757,739       736,412  
    Accumulated other comprehensive income (loss)   (161,121 )     (166,500 )
    Treasury stock, at cost (491,389 shares and 469,239 shares as of June 30, 2025 and December 31, 2024, respectively)   (17,384 )     (15,754 )
    Total stockholders’ equity   709,898       683,822  
    Noncontrolling interest   89       89  
    Total equity   709,987       683,911  
    Total liabilities and equity $ 6,964,301     $ 6,678,374  
     
    CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
    ​ Three Months Ended June 30,   Six Months Ended June 30,  
    ​   2025     2024     2025     2024    
    NET INTEREST INCOME                
    Interest and fees on loans                
    Taxable $ 84,418   $ 84,226   $ 166,158   $ 166,268    
    Tax exempt   291     632     583     1,532    
    Interest and dividends on securities                
    Taxable   3,457     3,104     6,846     6,143    
    Tax exempt   3,917     3,932     7,827     7,879    
    Other interest income   2,302     1,842     3,426     2,948    
    Total interest income   94,385     93,736     184,840     184,770    
    ​ ​   ​   ​   ​  
    Interest on deposits   39,111     44,363     75,569     85,527    
    Interest on short-term borrowings   398     1,077     1,520     3,531    
    Total interest expense   39,509     45,440     77,089     89,058    
    ​ ​   ​   ​   ​  
    NET INTEREST INCOME   54,876     48,296     107,751     95,712    
    ​ ​   ​   ​   ​  
    Provision for credit losses   3,000     8,480     9,800     10,000    
    ​ ​   ​   ​   ​  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   51,876     39,816     97,951     85,712    
    ​ ​   ​   ​   ​  
    NONINTEREST INCOME                
    Wealth advisory fees   2,667     2,597     5,534     5,052    
    Investment brokerage fees   550     478     1,002     1,000    
    Service charges on deposit accounts   2,827     2,806     5,601     5,497    
    Loan and service fees   3,006     3,048     5,890     5,900    
    Merchant and interchange fee income   854     892     1,676     1,755    
    Bank owned life insurance income   1,040     890     1,362     1,926    
    Interest rate swap fee income   20     0     20     0    
    Mortgage banking income (loss)   124     23     73     75    
    Net securities gains (losses)   0     0     0     (46 )  
    Net gain on Visa shares   0     9,011     0     9,011    
    Other income   398     694     1,256     2,881    
    Total noninterest income   11,486     20,439     22,414     33,051    
    ​ ​   ​   ​   ​  
    NONINTEREST EXPENSE                
    Salaries and employee benefits   17,096     16,158     34,998     32,991    
    Net occupancy expense   1,747     1,698     3,727     3,438    
    Equipment costs   1,437     1,343     2,819     2,755    
    Data processing fees and supplies   4,152     3,812     8,417     7,651    
    Corporate and business development   1,160     1,265     2,566     2,646    
    FDIC insurance and other regulatory fees   839     816     1,639     1,605    
    Professional fees   1,706     2,123     4,086     4,586    
    Other expense   2,295     6,118     4,943     8,366    
    Total noninterest expense   30,432     33,333     63,195     64,038    
    ​ ​   ​   ​   ​  
    INCOME BEFORE INCOME TAX EXPENSE   32,930     26,922     57,170     54,725    
    Income tax expense   5,964     4,373     10,119     8,775    
    NET INCOME $ 26,966   $ 22,549   $ 47,051   $ 45,950    
    ​ ​   ​   ​   ​  
    BASIC WEIGHTED AVERAGE COMMON SHARES   25,707,233     25,678,231     25,711,004     25,667,647    
    ​ ​   ​   ​   ​  
    BASIC EARNINGS PER COMMON SHARE $ 1.05   $ 0.88   $ 1.83   $ 1.79    
    ​                
    DILUTED WEIGHTED AVERAGE COMMON SHARES   25,776,205     25,742,871     25,782,817     25,746,773    
    ​                
    DILUTED EARNINGS PER COMMON SHARE $ 1.04   $ 0.87   $ 1.82   $ 1.78    
     

     

    LAKELAND FINANCIAL CORPORATION
    LOAN DETAIL
    (unaudited, in thousands)
     
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Commercial and industrial loans:                      
    Working capital lines of credit loans $ 717,484     13.7 %   $ 716,522     13.7 %   $ 697,754     13.8 %
    Non-working capital loans   776,278     14.9       807,048     15.5       828,523     16.4  
    Total commercial and industrial loans   1,493,762     28.6       1,523,570     29.2       1,526,277     30.2  
              ​            
    Commercial real estate and multi-family residential loans:                      
    Construction and land development loans   552,998     10.6       623,905     12.0       658,345     13.0  
    Owner occupied loans   780,285     14.9       804,933     15.4       830,018     16.4  
    Nonowner occupied loans   869,196     16.6       852,033     16.3       762,365     15.1  
    Multifamily loans   477,910     9.1       339,946     6.5       252,652     5.0  
    Total commercial real estate and multi-family residential loans   2,680,389     51.2       2,620,817     50.2       2,503,380     49.5  
              ​            
    Agri-business and agricultural loans:                      
    Loans secured by farmland   150,934     2.9       156,112     3.0       161,410     3.2  
    Loans for agricultural production   188,501     3.6       227,659     4.3       199,654     4.0  
    Total agri-business and agricultural loans   339,435     6.5       383,771     7.3       361,064     7.2  
              ​            
    Other commercial loans   95,442     1.8       94,927     1.8       96,703     1.9  
    Total commercial loans   4,609,028     88.1       4,623,085     88.5       4,487,424     88.8  
              ​            
    Consumer 1-4 family mortgage loans:                      
    Closed end first mortgage loans   273,287     5.2       265,855     5.1       259,094     5.1  
    Open end and junior lien loans   226,114     4.4       217,981     4.2       197,861     3.9  
    Residential construction and land development loans   16,667     0.3       16,359     0.3       12,952     0.3  
    Total consumer 1-4 family mortgage loans   516,068     9.9       500,195     9.6       469,907     9.3  
      ​       ​            
    Other consumer loans   103,880     2.0       102,254     1.9       97,895     1.9  
    Total consumer loans   619,948     11.9       602,449     11.5       567,802     11.2  
    Subtotal   5,228,976     100.0 %     5,225,534     100.0 %     5,055,226     100.0 %
    Less:  Allowance for credit losses   (66,552 )         (92,433 )   ​     (80,711 )   ​
    Net deferred loan fees   (2,149 )         (2,313 )   ​     (2,885 )   ​
    Loans, net $ 5,160,275         $ 5,130,788     ​   $ 4,971,630     ​
     

     

    LAKELAND FINANCIAL CORPORATION
    DEPOSITS AND BORROWINGS
    (unaudited, in thousands)
     
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Noninterest bearing demand deposits $ 1,261,740   $ 1,296,907   $ 1,212,989
    Savings and transaction accounts:          
    Savings deposits   283,976     293,768     283,809
    Interest bearing demand deposits   3,841,703     3,554,310     3,274,179
    Time deposits:          
    Deposits of $100,000 or more   584,165     602,577     776,314
    Other time deposits   205,249     212,632     216,246
    Total deposits $ 6,176,833   $ 5,960,194   $ 5,763,537
    FHLB advances and other borrowings   6,200     108,200     55,000
    Total funding sources $ 6,183,033   $ 6,068,394   $ 5,818,537
     

     

    LAKELAND FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
    (UNAUDITED)
     
        Three Months Ended June 30, 2025   Three Months Ended March 31, 2025   Three Months Ended June 30, 2024
    (fully tax equivalent basis, dollars in thousands)   Average Balance   Interest Income   Yield (1)/
    Rate    		   Average Balance   Interest Income   Yield (1)/
    Rate    		   Average Balance   Interest Income   Yield (1)/
    Rate
    Earning Assets                                    
    Loans:                                    
    Taxable (2)(3)   $ 5,204,006     $ 84,418   6.51 %   $ 5,160,031     $ 81,740   6.42 %   $ 4,993,270     $ 84,226   6.78 %
    Tax exempt (1)     25,640       359   5.62       25,887       361   5.66       41,581       783   7.57  
    Investments: (1)                                    
    Securities     1,125,597       8,416   3.00       1,136,404       8,338   2.98       1,118,776       8,082   2.91  
    Short-term investments     2,832       28   3.97       2,964       28   3.83       2,836       35   4.96  
    Interest bearing deposits     212,532       2,274   4.29       105,518       1,096   4.21       138,818       1,807   5.24  
    Total earning assets   $ 6,570,607     $ 95,495   5.83 %   $ 6,430,804     $ 91,563   5.77 %   $ 6,295,281     $ 94,933   6.07 %
    Less:  Allowance for credit losses     (93,644 )             (87,477 )             (74,166 )        
    Nonearning Assets                                    
    Cash and due from banks     66,713               71,004               64,518          
    Premises and equipment     61,280               60,523               58,702          
    Other nonearning assets     299,725               288,116               298,619          
    Total assets   $ 6,904,681             $ 6,762,970             $ 6,642,954          
                                         
    Interest Bearing Liabilities                                    
    Savings deposits   $ 285,944     $ 43   0.06 %   $ 283,888     $ 42   0.06 %   $ 289,107     $ 48   0.07 %
    Interest bearing checking accounts     3,767,903       31,499   3.35       3,486,447       28,075   3.27       3,275,502       33,323   4.09  
    Time deposits:                                    
    In denominations under $100,000     208,770       1,745   3.35       212,934       1,832   3.49       217,146       1,871   3.47  
    In denominations over $100,000     589,829       5,824   3.96       633,112       6,509   4.17       807,304       9,121   4.54  
    Other short-term borrowings     33,297       398   4.79       99,830       1,122   4.56       77,077       1,077   5.62  
    Long-term borrowings     1,200       0   0.00       254       0   0.00       0       0   0.00  
    Total interest bearing liabilities   $ 4,886,943     $ 39,509   3.24 %   $ 4,716,465     $ 37,580   3.23 %   $ 4,666,136     $ 45,440   3.92 %
    Noninterest Bearing Liabilities                                    
    Demand deposits     1,244,058               1,258,344               1,230,903          
    Other liabilities     76,704               92,108               106,916          
    Stockholders’ Equity     696,976               696,053               638,999          
    Total liabilities and stockholders’ equity   $ 6,904,681             $ 6,762,970             $ 6,642,954          
    Interest Margin Recap                                    
    Interest income/average earning assets         95,495   5.83 %         91,563   5.77 %         94,933   6.07 %
    Interest expense/average earning assets         39,509   2.41           37,580   2.37           45,440   2.90  
    Net interest income and margin       $ 55,986   3.42 %       $ 53,983   3.40 %       $ 49,493   3.17 %
    (1 ) Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.20 million in the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
    (2 ) Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, are included as taxable loan interest income.
    (3 ) Nonaccrual loans are included in the average balance of taxable loans.
       

    Reconciliation of Non-GAAP Financial Measures

    Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Six Months Ended
      Jun. 30, 2025   Mar. 31, 2025   Jun. 30, 2024   Jun. 30, 2025   Jun. 30, 2024
    Total Equity $ 709,987     $ 694,509     $ 654,590     $ 709,987     $ 654,590  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Common Equity   706,184       690,706       650,787       706,184       650,787  
    Market Value Adjustment in AOCI   160,574       163,879       169,747       160,574       169,747  
    Adjusted Tangible Common Equity   866,758       854,585       820,534       866,758       820,534  
                       
    Assets $ 6,964,301     $ 6,851,178     $ 6,568,807     $ 6,964,301     $ 6,568,807  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Assets   6,960,498       6,847,375       6,565,004       6,960,498       6,565,004  
    Market Value Adjustment in AOCI   160,574       163,879       169,747       160,574       169,747  
    Adjusted Tangible Assets   7,121,072       7,011,254       6,734,751       7,121,072       6,734,751  
                       
    Ending Common Shares Issued   25,697,093       25,727,393       25,679,066       25,697,093       25,679,066  
                       
    Tangible Book Value Per Common Share $ 27.48     $ 26.85     $ 25.34     $ 27.48     $ 25.34  
                       
    Tangible Common Equity/Tangible Assets   10.15 %     10.09 %     9.91 %     10.15 %     9.91 %
    Adjusted Tangible Common Equity/Adjusted Tangible Assets   12.17 %     12.19 %     12.18 %     12.17 %     12.18 %
                       
    Net Interest Income $ 54,876     $ 52,875     $ 48,296     $ 107,751     $ 95,712  
    Plus:  Noninterest Income   11,486       10,928       20,439       22,414       33,051  
    Minus:  Noninterest Expense   (30,432 )     (32,763 )     (33,333 )     (63,195 )     (64,038 )
    Pretax Pre-Provision Earnings $ 35,930     $ 31,040     $ 35,402     $ 66,970     $ 64,725  
     

    Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual and 2023 wire fraud loss insurance recoveries for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Six Months Ended
      Jun. 30, 2025   Mar. 31, 2025   Jun. 30, 2024   Jun. 30, 2025   Jun. 30, 2024
    Noninterest Income $ 11,486     $ 10,928     $ 20,439     $ 22,414     $ 33,051  
    Less: Net Gain on Visa Shares   0       0       (9,011 )     0       (9,011 )
    Less: Insurance Recovery   0       0       0       0       (1,000 )
    Adjusted Core Noninterest Income $ 11,486     $ 10,928     $ 11,428     $ 22,414     $ 23,040  
                       
    Noninterest Expense $ 30,432     $ 32,763     $ 33,333     $ 63,195     $ 64,038  
    Less: Legal Accrual   0       0       (4,537 )     0       (4,537 )
    Adjusted Core Noninterest Expense $ 30,432     $ 32,763     $ 28,796     $ 63,195     $ 59,501  
                       
    Earnings Before Income Taxes $ 32,930     $ 24,240     $ 26,922     $ 57,170     $ 54,725  
    Adjusted Core Impact:                  
    Noninterest Income   0       0       (9,011 )     0       (10,011 )
    Noninterest Expense   0       0       4,537       0       4,537  
    Total Adjusted Core Impact   0       0       (4,474 )     0       (5,474 )
    Adjusted Earnings Before Income Taxes   32,930       24,240       22,448       57,170       49,251  
    Tax Effect   (5,964 )     (4,155 )     (3,261 )     (10,119 )     (7,414 )
    Core Operational Profitability (1) $ 26,966     $ 20,085     $ 19,187     $ 47,051     $ 41,837  
                       
    Diluted Earnings Per Common Share $ 1.04     $ 0.78     $ 0.87     $ 1.82     $ 1.78  
    Impact of Adjusted Core Items   0.00       0.00       (0.13 )     0.00       (0.16 )
    Core Operational Diluted Earnings Per Common Share $ 1.04     $ 0.78     $ 0.74     $ 1.82     $ 1.62  
                       
    Adjusted Core Efficiency Ratio   45.86 %     51.35 %     48.22 %     48.55 %     50.11 %
    (1 ) Core operational profitability was $3.4 million lower than reported net income for the three months ended June 30, 2024 and $4.1 million lower for the six months ended June 30, 2024.
       


    Contact     Lisa M. O’Neill
    Executive Vice President and Chief Financial Officer
    (574) 267-9125
    lisa.oneill@lakecitybank.com

    The MIL Network –

    July 25, 2025

  • MIL-OSI: Southside Bancshares, Inc. Announces Financial Results for the Second Quarter Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    • Second quarter net income of $21.8 million;
    • Second quarter earnings per diluted common share of $0.72;
    • Tax-equivalent net interest margin(1)linked quarter increased nine basis points to 2.95%;
    • Annualized return on second quarter average assets of 1.07%;
    • Annualized return on second quarter average tangible common equity of 14.38%(1); and
    • Nonperforming assets remain low at 0.39% of total assets.

    TYLER, Texas, July 25, 2025 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended June 30, 2025. Southside reported net income of $21.8 million for the three months ended June 30, 2025, a decrease of $2.9 million, or 11.6%, compared to $24.7 million for the same period in 2024. Earnings per diluted common share decreased $0.09, or 11.1%, to $0.72 for the three months ended June 30, 2025, from $0.81 for the same period in 2024. The annualized return on average shareholders’ equity for the three months ended June 30, 2025 was 10.73%, compared to 12.46% for the same period in 2024. The annualized return on average assets was 1.07% for the three months ended June 30, 2025, compared to 1.19% for the same period in 2024.

    “We reported excellent financial results for the second quarter ended June 30, 2025, which included earnings per share of $0.72, a return on average assets of 1.07%, and a return on average tangible common equity of 14.38%,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter, the net interest margin(1) increased nine basis points to 2.95%, net interest income increased $414,000 to $54.3 million, and deposits net of public fund and brokered deposits increased $90.1 million. The linked quarter total loans increased $35 million, while average loans decreased $106 million due primarily to heavy payoffs during the first two months of the quarter. Total loan growth during the month of June was $104 million. Our loan pipeline is solid and we currently anticipate three to four percent loan growth for all of 2025. During the quarter we expensed $1.2 million related to the write-off and demolition of an existing branch that was replaced with a new building.”

    Operating Results for the Three Months Ended June 30, 2025

    Net income was $21.8 million for the three months ended June 30, 2025, compared to $24.7 million for the same period in 2024, a decrease of $2.9 million, or 11.6%. Earnings per diluted common share were $0.72 for the three months ended June 30, 2025, compared to $0.81 for the same period in 2024, a decrease of 11.1%. The decrease in net income was a result of increases in noninterest expense and provision for credit losses, partially offset by increases in net interest income and noninterest income and a decrease in income tax expense. Annualized returns on average assets and average shareholders’ equity for the three months ended June 30, 2025 were 1.07% and 10.73%, respectively, compared to 1.19% and 12.46%, respectively, for the three months ended June 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 55.67% and 53.70%, respectively, for the three months ended June 30, 2025, compared to 54.90% and 52.71%, respectively, for the three months ended June 30, 2024, and 57.04% and 55.04%, respectively, for the three months ended March 31, 2025.

    Net interest income for the three months ended June 30, 2025 was $54.3 million, an increase of $0.7 million, or 1.2%, compared to the same period in 2024. The increase in net interest income was due to decreases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by decreases in the average yield of and average balance of our interest earning assets. Linked quarter, net interest income increased $0.4 million, or 0.8%, compared to $53.9 million for the three months ended March 31, 2025, due to the decrease in the average balance of interest bearing liabilities, the increase in the average yield on our interest earning assets and the decrease in the rate paid on interest bearing liabilities, partially offset by the decrease in the average balance of our interest earning assets.

    Our net interest margin and tax-equivalent net interest margin(1) increased to 2.82% and 2.95%, respectively, for the three months ended June 30, 2025, compared to 2.74% and 2.87%, respectively, for the same period in 2024. Linked quarter, net interest margin and tax-equivalent net interest margin(1) increased from 2.74% and 2.86%, respectively, for the three months ended March 31, 2025.

    Noninterest income was $12.1 million for the three months ended June 30, 2025, an increase of $0.6 million, or 5.1%, compared to $11.6 million for the same period in 2024. The increase was primarily due to a decrease in net loss on sale of securities available for sale (“AFS”) and increases in other noninterest income and trust fees, partially offset by a decrease in bank owned life insurance income (“BOLI”). On a linked quarter basis, noninterest income increased $1.9 million, or 18.8%, compared to the three months ended March 31, 2025. The increase was primarily due to an increase in other noninterest income, a decrease in net loss on sale of securities AFS, and increases in deposit services income, trust income and brokerage services income. The increase in other noninterest income was primarily due to an increase in swap fee income for the three months ended June 30, 2025.

    Noninterest expense increased $3.5 million, or 9.8%, to $39.3 million for the three months ended June 30, 2025, compared to $35.8 million for the same period in 2024, primarily due to increases in other noninterest expense, professional fees and salaries and employee benefits expense. On a linked quarter basis, noninterest expense increased by $2.2 million, or 5.8%, compared to the three months ended March 31, 2025, due to increases in other noninterest expense and net occupancy expense. The increase in other noninterest expense was primarily due to a one-time charge of $1.2 million on the demolition of an old branch facility following completion of the new branch during the three months ended June 30, 2025.

    Income tax expense decreased $0.5 million, or 9.5%, for the three months ended June 30, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense remained the same at $4.7 million. Our effective tax rate (“ETR”) increased slightly to 17.8% for the three months ended June 30, 2025, compared to 17.4% for the three months ended June 30, 2024, and decreased slightly from 18.0% for the three months ended March 31, 2025. The higher ETR for the three months ended June 30, 2025 compared to the same period in 2024, was primarily due to an increase in state income tax expense.

    Operating Results for the Six Months Ended June 30, 2025

    Net income was $43.3 million for the six months ended June 30, 2025, compared to $46.2 million for the same period in 2024, a decrease of $2.9 million, or 6.2%. Earnings per diluted common share were $1.42 for the six months ended June 30, 2025, compared to $1.52 for the same period in 2024, a decrease of 6.6%. The decrease in net income was a result of increases in noninterest expense and provision for credit losses, partially offset by increases in net interest income and noninterest income and a decrease in income tax expense. Returns on average assets and average shareholders’ equity for the six months ended June 30, 2025 were 1.05% and 10.65%, respectively, compared to 1.11% and 11.74%, respectively, for the six months ended June 30, 2024. Our efficiency ratio and tax-equivalent efficiency ratio(1) were 56.34% and 54.36%, respectively, for the six months ended June 30, 2025, compared to 56.41% and 54.11%, respectively, for the six months ended June 30, 2024.

    Net interest income was $108.1 million for the six months ended June 30, 2025, compared to $107.0 million for the same period in 2024, an increase of $1.2 million, or 1.1%, due to decreases in the average rate paid on and average balance of our interest bearing liabilities, partially offset by the decrease in the average yield of interest earning assets.

    Our net interest margin and tax-equivalent net interest margin(1) were 2.78% and 2.91%, respectively, for the six months ended June 30, 2025, compared to 2.73% and 2.87%, respectively, for the same period in 2024.

    Noninterest income was $22.4 million for the six months ended June 30, 2025, an increase of $1.1 million, or 5.1%, compared to $21.3 million for the same period in 2024. The increase was primarily due to increases in trust fees, other noninterest income and gain on sale of loans, partially offset by a decrease in BOLI income.

    Noninterest expense was $76.3 million for the six months ended June 30, 2025, compared to $72.6 million for the same period in 2024, an increase of $3.7 million, or 5.1%. The increase was primarily due to increases in other noninterest expense and professional fees, partially offset by a decrease in salaries and employee benefits expense.

    Income tax expense decreased $0.4 million, or 4.0%, for the six months ended June 30, 2025, compared to the same period in 2024. Our ETR was approximately 17.9% and 17.6% for the six months ended June 30, 2025 and 2024, respectively. The higher ETR for the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to an increase in state income tax expense.

    Balance Sheet Data

    At June 30, 2025, Southside had $8.34 billion in total assets, compared to $8.52 billion at December 31, 2024 and $8.36 billion at June 30, 2024.

    Loans at June 30, 2025 were $4.60 billion, an increase of $12.6 million, or 0.3%, compared to $4.59 billion at June 30, 2024. Linked quarter, loans increased $34.7 million, or 0.8%, due to increases of $28.8 million in commercial real estate loans, $12.3 million in construction loans and $9.0 million in commercial loans. These increases were partially offset by decreases of $7.5 million in municipal loans, $5.3 million in 1-4 family residential loans and $2.5 million in loans to individuals.

    Securities at June 30, 2025 were $2.73 billion, an increase of $18.1 million, or 0.7%, compared to $2.71 billion at June 30, 2024. Linked quarter, securities decreased $6.2 million, or 0.2%, from $2.74 billion at March 31, 2025.

    Deposits at June 30, 2025 were $6.63 billion, an increase of $136.0 million, or 2.1%, compared to $6.50 billion at June 30, 2024. Linked quarter, deposits increased $41.1 million, or 0.6%, from $6.59 billion at March 31, 2025.

    At June 30, 2025, we had 178,970 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 38.5% of total deposits as of June 30, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 21.1% as of June 30, 2025. Our noninterest bearing deposits represent approximately 20.6% of total deposits. Linked quarter, our cost of interest bearing deposits decreased one basis point from 2.83% in the prior quarter to 2.82%. Linked quarter, our cost of total deposits remained at 2.26%.

    Our cost of interest bearing deposits decreased 16 basis points, from 2.99% for the six months ended June 30, 2024, to 2.83% for the six months ended June 30, 2025. Our cost of total deposits decreased 11 basis points, from 2.37% for the six months ended June 30, 2024, to 2.26% for the six months ended June 30, 2025.

    Capital Resources and Liquidity

    Our capital ratios and contingent liquidity sources remain solid. During the second quarter ended June 30, 2025, we purchased 424,435 shares of the Company’s common stock at an average price of $28.13 per share, pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. Subsequent to June 30, 2025, and through July 23, 2025, we purchased 2,443 shares of common stock at an average price of $30.29 pursuant to the Stock Repurchase Plan.

    As of June 30, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.33 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

    Asset Quality

    Nonperforming assets at June 30, 2025 were $32.9 million, or 0.39% of total assets, an increase of $26.0 million, or 375.7%, compared to $6.9 million, or 0.08% of total assets, at June 30, 2024, due primarily to an increase of $27.4 million in restructured loans. The increase in restructured loans was due to the extension of maturity in the first quarter of 2025 on a $27.5 million commercial real estate loan to allow for an extended lease up period. Linked quarter, nonperforming assets increased $0.7 million, or 2.2%, from $32.2 million at March 31, 2025.

    The allowance for loan losses totaled $44.4 million, or 0.97% of total loans, at June 30, 2025, compared to $44.6 million, or 0.98% of total loans, at March 31, 2025. The allowance for loan losses was $42.4 million, or 0.92% of total loans, at June 30, 2024. The increase in allowance as a percentage of total loans compared to June 30, 2024 was primarily due to an increase in economic uncertainty forecasted in the CECL model.

    For the three months ended June 30, 2025, we recorded a provision for credit losses for loans of $0.7 million, compared to a reversal of provision of $0.9 million and a provision of $42,000 for the three months ended June 30, 2024 and March 31, 2025, respectively. Net charge-offs were $0.9 million for the three months ended June 30, 2025, compared to net charge-offs of $0.3 million for the three months ended June 30, 2024 and March 31, 2025. Net charge-offs were $1.2 million for the six months ended June 30, 2025, compared to net charge-offs of $0.6 million for the six months ended June 30, 2024.

    We recorded a reversal of provision for credit losses on off-balance-sheet credit exposures of $19,000 for the three months ended June 30, 2025, compared to provision for losses on off-balance-sheet credit exposures of $0.4 million and $0.7 million for the three months ended June 30, 2024 and March 31, 2025, respectively. We recorded a provision for losses on off-balance-sheet credit exposures of $0.6 million for the six months ended June 30, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures of $0.7 million for the six months ended June 30, 2024. The balance of the allowance for off-balance-sheet credit exposures was $3.8 million and $3.2 million at June 30, 2025 and 2024, respectively, and is included in other liabilities.

    Dividend

    Southside Bancshares, Inc. declared a second quarter cash dividend of $0.36 per share on May 8, 2025, which was paid on June 5, 2025, to all shareholders of record as of May 22, 2025.

    _______________

    (1) Refer to “Non-GAAP Financial Measures” below and to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for more information and for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
       

    Conference Call

    Southside’s management team will host a conference call to discuss its second quarter ended June 30, 2025 financial results on Friday, July 25, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

    Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register-conf.media-server.com/register/BIad8374913fda48e3a6a27e230e7c4225 to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

    For those unable to attend the live event, a webcast recording will be available on the company website, https://investors.southside.com, for at least 30 days, beginning approximately two hours following the conference call.

    Non-GAAP Financial Measures

    Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the following fully taxable-equivalent measures (“FTE”): (i) Net interest income (FTE), (ii) net interest margin (FTE), (iii) net interest spread (FTE), and (iv) efficiency ratio (FTE), which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis. Interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments.

    Net interest income (FTE), net interest margin (FTE) and net interest spread (FTE). Net interest income (FTE) is a non-GAAP measure that adjusts for the tax-favored status of net interest income from certain loans and investments and is not permitted under GAAP in the consolidated statements of income. We believe that this measure is the preferred industry measurement of net interest income and that it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin (FTE) is the ratio of net interest income (FTE) to average earning assets. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread (FTE) is the difference in the average yield on average earning assets on a tax-equivalent basis and the average rate paid on average interest bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

    Efficiency ratio (FTE). The efficiency ratio (FTE) is a non-GAAP measure that provides a measure of productivity in the banking industry. This ratio is calculated to measure the cost of generating one dollar of revenue. The ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue. We calculate this ratio by dividing noninterest expense, excluding amortization expense on intangibles and certain nonrecurring expense by the sum of net interest income (FTE) and noninterest income, excluding net gain (loss) on sale of securities available for sale and certain nonrecurring impairments. The most directly comparable financial measure calculated in accordance with GAAP is our efficiency ratio.

    These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently. Whenever we present a non-GAAP financial measure in an SEC filing, we are also required to present the most directly comparable financial measure calculated and presented in accordance with GAAP and reconcile the differences between the non-GAAP financial measure and such comparable GAAP measure.

    Management believes adjusting net interest income, net interest margin and net interest spread to a fully taxable-equivalent basis is a standard practice in the banking industry as these measures provide useful information to make peer comparisons. Tax-equivalent adjustments are reflected in the respective earning asset categories as listed in the “Average Balances with Average Yields and Rates” tables.

    A reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

    About Southside Bancshares, Inc.

    Southside Bancshares, Inc. is a bank holding company with approximately $8.34 billion in assets as of June 30, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 71 ATMs/ITMs.

    To learn more about Southside Bancshares, Inc., please visit our investor relations website at https://investors.southside.com. Our investor relations site provides a detailed overview of our activities, financial information and historical stock price data. To receive email notification of company news, events and stock activity, please register on the website under Resources and Investor Email Alerts. Questions or comments may be directed to Lindsey Bailes at (903) 630-7965, or lindsey.bailes@southside.com.

    Forward-Looking Statements

    Certain statements of other than historical fact that are contained in this press release and in other written materials, documents and oral statements issued by or on behalf of the Company may be considered to be “forward-looking statements” within the meaning of and subject to the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. These statements may include words such as “expect,” “estimate,” “project,” “anticipate,” “appear,” “believe,” “could,” “should,” “may,” “might,” “will,” “would,” “seek,” “intend,” “probability,” “risk,” “goal,” “target,” “objective,” “plans,” “potential,” and similar expressions. Forward-looking statements are statements with respect to the Company’s beliefs, plans, expectations, objectives, goals, anticipations, assumptions, estimates, intentions and future performance and are subject to significant known and unknown risks and uncertainties, which could cause the Company’s actual results to differ materially from the results discussed in the forward-looking statements. For example, benefits of the Share Repurchase Plan, trends in asset quality, capital, liquidity, the Company’s ability to sell nonperforming assets, expense reductions, planned operational efficiencies and earnings from growth and certain market risk disclosures, including the impact of interest rates and our expectations regarding rate changes, tax reform, inflation, tariffs, the impacts related to or resulting from other economic factors are based upon information presently available to management and are dependent on choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market risk disclosures are only estimates and could be materially different from what actually occurs in the future. Accordingly, our results could materially differ from those that have been estimated. The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of higher inflation levels, interest rate fluctuations, including the impact of changes in interest rates on our financial projections, models and guidance, and general economic and recessionary concerns, as well as the effects of declines in the real estate market, tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment and increasing insurance costs, as well as the financial stress to borrowers as a result of the foregoing, all of which could impact economic growth and could cause a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, and our ability to manage liquidity in a rapidly changing and unpredictable market.

    Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under “Part I – Item 1. Forward Looking Information” and “Part I – Item 1A. Risk Factors” and in the Company’s other filings with the Securities and Exchange Commission. The Company disclaims any obligation to update any factors or to announce publicly the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

    Southside Bancshares, Inc.
    Consolidated Financial Summary (Unaudited)
    (Dollars in thousands)
     
      As of
        2025       2024  
      Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30,
    ASSETS                  
    Cash and due from banks $ 109,669     $ 103,359     $ 91,409     $ 130,147     $ 114,283  
    Interest earning deposits   260,357       293,364       281,945       333,825       272,469  
    Federal funds sold   20,069       34,248       52,807       22,325       65,244  
    Securities available for sale, at estimated fair value   1,457,124       1,457,939       1,533,894       1,408,437       1,405,944  
    Securities held to maturity, at net carrying value   1,272,906       1,278,330       1,279,234       1,288,403       1,305,975  
    Total securities   2,730,030       2,736,269       2,813,128       2,696,840       2,711,919  
    Federal Home Loan Bank stock, at cost   24,384       34,208       33,818       40,291       32,991  
    Loans held for sale   428       903       1,946       768       1,352  
    Loans   4,601,933       4,567,239       4,661,597       4,578,048       4,589,365  
    Less: Allowance for loan losses   (44,421 )     (44,623 )     (44,884 )     (44,276 )     (42,407 )
    Net loans   4,557,512       4,522,616       4,616,713       4,533,772       4,546,958  
    Premises & equipment, net   147,263       142,245       141,648       138,811       138,489  
    Goodwill   201,116       201,116       201,116       201,116       201,116  
    Other intangible assets, net   1,333       1,531       1,754       2,003       2,281  
    Bank owned life insurance   138,826       137,962       138,313       137,489       136,903  
    Other assets   148,979       135,479       142,851       124,876       133,697  
    Total assets $ 8,339,966     $ 8,343,300     $ 8,517,448     $ 8,362,263     $ 8,357,702  
                       
    LIABILITIES AND SHAREHOLDERS’ EQUITY                  
    Noninterest bearing deposits $ 1,368,453     $ 1,379,641     $ 1,357,152     $ 1,377,022     $ 1,366,924  
    Interest bearing deposits   5,263,511       5,211,210       5,297,096       5,058,680       5,129,008  
    Total deposits   6,631,964       6,590,851       6,654,248       6,435,702       6,495,932  
    Other borrowings and Federal Home Loan Bank borrowings   611,367       691,417       808,352       865,856       763,700  
    Subordinated notes, net of unamortized debt
    issuance costs    		   92,115       92,078       92,042       92,006       91,970  
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,277       60,276       60,274       60,273       60,272  
    Other liabilities   137,043       92,055       90,590       103,172       144,858  
    Total liabilities   7,532,766       7,526,677       7,705,506       7,557,009       7,556,732  
    Shareholders’ equity   807,200       816,623       811,942       805,254       800,970  
    Total liabilities and shareholders’ equity $ 8,339,966     $ 8,343,300     $ 8,517,448     $ 8,362,263     $ 8,357,702  
     
    Southside Bancshares, Inc.
    Consolidated Financial Summary (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
        2025       2024  
      Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30,
    Income Statement:                  
    Total interest and dividend income $ 98,562     $ 100,288     $ 101,689     $ 105,703     $ 104,186  
    Total interest expense   44,296       46,436       47,982       50,239       50,578  
    Net interest income   54,266       53,852       53,707       55,464       53,608  
    Provision for (reversal of) credit losses   622       758       1,384       2,389       (485 )
    Net interest income after provision for (reversal of) credit losses   53,644       53,094       52,323       53,075       54,093  
    Noninterest income                  
    Deposit services   6,125       5,829       6,084       6,199       6,157  
    Net gain (loss) on sale of securities available for sale   —       (554 )     —       (1,929 )     (563 )
    Gain (loss) on sale of loans   99       55       138       115       220  
    Trust fees   1,879       1,765       1,773       1,628       1,456  
    Bank owned life insurance   833       799       848       857       1,767  
    Brokerage services   1,219       1,120       1,054       1,068       1,081  
    Other   1,990       1,209       2,384       233       1,439  
    Total noninterest income   12,145       10,223       12,281       8,171       11,557  
    Noninterest expense                  
    Salaries and employee benefits   22,272       22,382       22,960       22,233       21,984  
    Net occupancy   3,621       3,404       3,629       3,613       3,750  
    Advertising, travel & entertainment   950       924       884       734       795  
    ATM expense   405       378       378       412       368  
    Professional fees   1,401       1,520       1,645       1,206       1,075  
    Software and data processing   3,027       2,839       2,931       2,951       2,860  
    Communications   342       383       320       423       410  
    FDIC insurance   955       947       931       939       977  
    Amortization of intangibles   198       223       249       278       307  
    Other   6,086       4,089       4,232       3,543       3,239  
    Total noninterest expense   39,257       37,089       38,159       36,332       35,765  
    Income before income tax expense   26,532       26,228       26,445       24,914       29,885  
    Income tax expense   4,719       4,721       4,659       4,390       5,212  
    Net income $ 21,813     $ 21,507     $ 21,786     $ 20,524     $ 24,673  
                       
    Common Share Data:      
    Weighted-average basic shares outstanding   30,234       30,390       30,343       30,286       30,280  
    Weighted-average diluted shares outstanding   30,308       30,483       30,459       30,370       30,312  
    Common shares outstanding end of period   30,082       30,410       30,379       30,308       30,261  
    Earnings per common share                  
    Basic $ 0.72     $ 0.71     $ 0.72     $ 0.68     $ 0.81  
    Diluted   0.72       0.71       0.71       0.68       0.81  
    Book value per common share   26.83       26.85       26.73       26.57       26.47  
    Tangible book value per common share   20.10       20.19       20.05       19.87       19.75  
    Cash dividends paid per common share   0.36       0.36       0.36       0.36       0.36  
                       
    Selected Performance Ratios:                  
    Return on average assets   1.07 %     1.03 %     1.03 %     0.98 %     1.19 %
    Return on average shareholders’ equity   10.73       10.57       10.54       10.13       12.46  
    Return on average tangible common equity (1)   14.38       14.14       14.12       13.69       16.90  
    Average yield on earning assets (FTE) (1)   5.25       5.23       5.24       5.51       5.45  
    Average rate on interest bearing liabilities   2.98       3.03       3.12       3.28       3.32  
    Net interest margin (FTE) (1)   2.95       2.86       2.83       2.95       2.87  
    Net interest spread (FTE) (1)   2.27       2.20       2.12       2.23       2.13  
    Average earning assets to average interest bearing liabilities   129.33       128.10       129.55       128.51       128.62  
    Noninterest expense to average total assets   1.92       1.78       1.80       1.73       1.72  
    Efficiency ratio (FTE) (1)   53.70       55.04       54.00       51.90       52.71  
    (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
       
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
        2025       2024  
      Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30,
    Nonperforming Assets: $ 32,909     $ 32,193     $ 3,589     $ 7,656     $ 6,918  
    Nonaccrual loans   4,998       4,254       3,185       7,254       6,110  
    Accruing loans past due more than 90 days   —       —       —       —       —  
    Restructured loans   27,512       27,505       2       —       145  
    Other real estate owned   380       388       388       388       648  
    Repossessed assets   19       46       14       14       15  
                       
    Asset Quality Ratios:                  
    Ratio of nonaccruing loans to:                  
    Total loans   0.11 %     0.09 %     0.07 %     0.16 %     0.13 %
    Ratio of nonperforming assets to:                  
    Total assets   0.39       0.39       0.04       0.09       0.08  
    Total loans   0.72       0.70       0.08       0.17       0.15  
    Total loans and OREO   0.72       0.70       0.08       0.17       0.15  
    Ratio of allowance for loan losses to:                  
    Nonaccruing loans   888.78       1,048.97       1,409.23       610.37       694.06  
    Nonperforming assets   134.98       138.61       1,250.60       578.32       613.00  
    Total loans   0.97       0.98       0.96       0.97       0.92  
    Net charge-offs (recoveries) to average loans outstanding   0.08       0.03       0.08       0.04       0.02  
                       
    Capital Ratios:                  
    Shareholders’ equity to total assets   9.68       9.79       9.53       9.63       9.58  
    Common equity tier 1 capital   13.36       13.44       13.04       13.07       12.72  
    Tier 1 risk-based capital   14.41       14.49       14.07       14.12       13.76  
    Total risk-based capital   16.91       17.01       16.49       16.59       16.16  
    Tier 1 leverage capital   10.03       9.73       9.67       9.61       9.40  
    Period end tangible equity to period end tangible assets (1)   7.43       7.54       7.33       7.38       7.33  
    Average shareholders’ equity to average total assets   9.94       9.75       9.76       9.67       9.52  

     

    (1) Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
       
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
        2025       2024  
    Loan Portfolio Composition Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30,
    Real Estate Loans:                  
    Construction $ 470,380     $ 458,101     $ 537,827     $ 585,817     $ 546,040  
    1-4 Family Residential   736,108       741,432       740,396       755,406       738,037  
    Commercial   2,606,072       2,577,229       2,579,735       2,422,612       2,472,771  
    Commercial Loans   380,612       371,643       363,167       358,854       359,807  
    Municipal Loans   363,746       371,271       390,968       402,041       416,986  
    Loans to Individuals   45,015       47,563       49,504       53,318       55,724  
    Total Loans $ 4,601,933     $ 4,567,239     $ 4,661,597     $ 4,578,048     $ 4,589,365  
                       
    Summary of Changes in Allowances:                  
    Allowance for Securities Held to Maturity                  
    Balance at beginning of period $ 64     $ —     $ —     $ —     $ —  
    Provision for (reversal of) securities held to maturity   (9 )     64       —       —       —  
    Balance at end of period $ 55     $ 64     $ —     $ —     $ —  
                       
    Allowance for Loan Losses                  
    Balance at beginning of period $ 44,623     $ 44,884     $ 44,276     $ 42,407     $ 43,557  
    Loans charged-off   (1,194 )     (613 )     (1,232 )     (773 )     (721 )
    Recoveries of loans charged-off   342       310       277       365       444  
    Net loans (charged-off) recovered   (852 )     (303 )     (955 )     (408 )     (277 )
    Provision for (reversal of) loan losses   650       42       1,563       2,277       (873 )
    Balance at end of period $ 44,421     $ 44,623     $ 44,884     $ 44,276     $ 42,407  
                       
    Allowance for Off-Balance-Sheet Credit Exposures                  
    Balance at beginning of period $ 3,793     $ 3,141     $ 3,320     $ 3,208     $ 2,820  
    Provision for (reversal of) off-balance-sheet credit exposures   (19 )     652       (179 )     112       388  
    Balance at end of period $ 3,774     $ 3,793     $ 3,141     $ 3,320     $ 3,208  
    Total Allowance for Credit Losses $ 48,250     $ 48,480     $ 48,025     $ 47,596     $ 45,615  
     
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Six Months Ended
      June 30,
        2025       2024  
    Income Statement:      
    Total interest and dividend income $ 198,850     $ 206,944  
    Total interest expense   90,732       99,988  
    Net interest income   108,118       106,956  
    Provision for (reversal of) credit losses   1,380       (427 )
    Net interest income after provision for (reversal of) credit losses   106,738       107,383  
    Noninterest income      
    Deposit services   11,954       12,142  
    Net gain (loss) on sale of securities available for sale   (554 )     (581 )
    Gain (loss) on sale of loans   154       (216 )
    Trust fees   3,644       2,792  
    Bank owned life insurance   1,632       2,551  
    Brokerage services   2,339       2,095  
    Other   3,199       2,498  
    Total noninterest income   22,368       21,281  
    Noninterest expense      
    Salaries and employee benefits   44,654       45,097  
    Net occupancy   7,025       7,112  
    Advertising, travel & entertainment   1,874       1,745  
    ATM expense   783       693  
    Professional fees   2,921       2,229  
    Software and data processing   5,866       5,716  
    Communications   725       859  
    FDIC insurance   1,902       1,920  
    Amortization of intangibles   421       644  
    Other   10,175       6,631  
    Total noninterest expense   76,346       72,646  
    Income before income tax expense   52,760       56,018  
    Income tax expense   9,440       9,834  
    Net income $ 43,320     $ 46,184  
    Common Share Data:      
    Weighted-average basic shares outstanding   30,311       30,271  
    Weighted-average diluted shares outstanding   30,397       30,310  
    Common shares outstanding end of period   30,082       30,261  
    Earnings per common share      
    Basic $ 1.43     $ 1.52  
    Diluted   1.42       1.52  
    Book value per common share   26.83       26.47  
    Tangible book value per common share   20.10       19.75  
    Cash dividends paid per common share   0.72       0.72  
           
    Selected Performance Ratios:      
    Return on average assets   1.05 %     1.11 %
    Return on average shareholders’ equity   10.65       11.74  
    Return on average tangible common equity (1)   14.26       15.99  
    Average yield on earning assets (FTE) (1)   5.24       5.42  
    Average rate on interest bearing liabilities   3.01       3.27  
    Net interest margin (FTE) (1)   2.91       2.87  
    Net interest spread (FTE) (1)   2.23       2.15  
    Average earning assets to average interest bearing liabilities   128.71       128.16  
    Noninterest expense to average total assets   1.85       1.74  
    Efficiency ratio (FTE) (1)   54.36       54.11  

     

    (1) Refer to “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
       
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Six Months Ended
      June 30,
        2025       2024  
    Nonperforming Assets: $ 32,909     $ 6,918  
    Nonaccrual loans   4,998       6,110  
    Accruing loans past due more than 90 days   —       —  
    Restructured loans   27,512       145  
    Other real estate owned   380       648  
    Repossessed assets   19       15  
           
    Asset Quality Ratios:      
    Ratio of nonaccruing loans to:      
    Total loans   0.11 %     0.13 %
    Ratio of nonperforming assets to:      
    Total assets   0.39       0.08  
    Total loans   0.72       0.15  
    Total loans and OREO   0.72       0.15  
    Ratio of allowance for loan losses to:      
    Nonaccruing loans   888.78       694.06  
    Nonperforming assets   134.98       613.00  
    Total loans   0.97       0.92  
    Net charge-offs (recoveries) to average loans outstanding   0.05       0.02  
           
    Capital Ratios:      
    Shareholders’ equity to total assets   9.68       9.58  
    Common equity tier 1 capital   13.36       12.72  
    Tier 1 risk-based capital   14.41       13.76  
    Total risk-based capital   16.91       16.16  
    Tier 1 leverage capital   10.03       9.40  
    Period end tangible equity to period end tangible assets (1)   7.43       7.33  
    Average shareholders’ equity to average total assets   9.84       9.43  
    (1)  Refer to the “Non-GAAP Reconciliation” at the end of the financial statement tables in this Earnings Release for a reconciliation of this non-GAAP financial measure to the nearest GAAP financial measure.
       
    Southside Bancshares, Inc.
    Consolidated Financial Highlights (Unaudited)
    (Dollars in thousands)
     
      Six Months Ended
      June 30,
    Loan Portfolio Composition   2025       2024  
    Real Estate Loans:      
    Construction $ 470,380     $ 546,040  
    1-4 Family Residential   736,108       738,037  
    Commercial   2,606,072       2,472,771  
    Commercial Loans   380,612       359,807  
    Municipal Loans   363,746       416,986  
    Loans to Individuals   45,015       55,724  
    Total Loans $ 4,601,933     $ 4,589,365  
           
    Summary of Changes in Allowances:      
    Allowance for Securities Held to Maturity      
    Balance at beginning of period $ —     $ —  
    Provision for (reversal of) securities held to maturity   55       —  
    Balance at end of period $ 55     $ —  
           
    Summary of Changes in Allowances:      
    Allowance for Loan Losses      
    Balance at beginning of period $ 44,884     $ 42,674  
    Loans charged-off   (1,807 )     (1,355 )
    Recoveries of loans charged-off   652       791  
    Net loans (charged-off) recovered   (1,155 )     (564 )
    Provision for (reversal of) loan losses   692       297  
    Balance at end of period $ 44,421     $ 42,407  
           
    Allowance for Off-Balance-Sheet Credit Exposures      
    Balance at beginning of period $ 3,141     $ 3,932  
    Provision for (reversal of) off-balance-sheet credit exposures   633       (724 )
    Balance at end of period $ 3,774     $ 3,208  
    Total Allowance for Credit Losses $ 48,250     $ 45,615  
     

    The tables that follow show average earning assets and interest bearing liabilities together with the average yield on the earning assets and the average rate of the interest bearing liabilities for the periods presented. The interest and related yields presented are on a fully taxable-equivalent basis and are therefore non-GAAP measures. See “Non-GAAP Financial Measures” and “Non-GAAP Reconciliation” for more information.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      June 30, 2025   March 31, 2025
      Average Balance   Interest   Average Yield/Rate (3)   Average Balance   Interest   Average Yield/Rate (3)
    ASSETS                      
    Loans (1) $ 4,519,668     $ 67,798   6.02 %   $ 4,625,902     $ 68,160   5.98 %
    Loans held for sale   1,108       16   5.79 %     752       11   5.93 %
    Securities:                      
    Taxable investment securities (2)   735,669       6,205   3.38 %     749,155       6,363   3.44 %
    Tax-exempt investment securities (2)   1,130,903       10,351   3.67 %     1,134,590       10,253   3.66 %
    Mortgage-backed and related securities (2)   1,003,887       13,040   5.21 %     1,041,038       13,523   5.27 %
    Total securities   2,870,459       29,596   4.14 %     2,924,783       30,139   4.18 %
    Federal Home Loan Bank stock, at cost, and equity investments   31,169       524   6.74 %     43,285       483   4.53 %
    Interest earning deposits   259,617       2,753   4.25 %     319,889       3,370   4.27 %
    Federal funds sold   27,778       308   4.45 %     43,813       478   4.42 %
    Total earning assets   7,709,799       100,995   5.25 %     7,958,424       102,641   5.23 %
    Cash and due from banks   84,419               89,703          
    Accrued interest and other assets   452,573               457,948          
    Less: Allowance for loan losses   (44,747 )             (45,105 )        
    Total assets $ 8,202,044             $ 8,460,970          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 596,125       1,451   0.98 %   $ 593,953       1,429   0.98 %
    Certificates of deposit   1,407,017       14,905   4.25 %     1,336,815       14,406   4.37 %
    Interest bearing demand accounts   3,311,330       21,071   2.55 %     3,406,342       21,412   2.55 %
    Total interest bearing deposits   5,314,472       37,427   2.82 %     5,337,110       37,247   2.83 %
    Federal Home Loan Bank borrowings   394,119       3,721   3.79 %     614,897       5,837   3.85 %
    Subordinated notes, net of unamortized debt issuance costs   92,097       935   4.07 %     92,060       932   4.11 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,276       1,015   6.75 %     60,275       1,014   6.82 %
    Repurchase agreements   72,295       634   3.52 %     75,291       666   3.59 %
    Other borrowings   28,022       564   8.07 %     33,061       740   9.08 %
    Total interest bearing liabilities   5,961,281       44,296   2.98 %     6,212,694       46,436   3.03 %
    Noninterest bearing deposits   1,339,463               1,334,933          
    Accrued expenses and other liabilities   85,827               88,450          
    Total liabilities   7,386,571               7,636,077          
    Shareholders’ equity   815,473               824,893          
    Total liabilities and shareholders’ equity $ 8,202,044             $ 8,460,970          
    Net interest income (FTE)     $ 56,699           $ 56,205    
    Net interest margin (FTE)         2.95 %           2.86 %
    Net interest spread (FTE)         2.27 %           2.20 %
    (1) Interest on loans includes net fees on loans that are not material in amount.
    (2) For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
    (3) Yield/rate includes the impact of applicable derivatives.
       

    Note: As of June 30, 2025 and March 31, 2025, loans totaling $5.0 million and $4.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      December 31, 2024   September 30, 2024
      Average Balance   Interest   Average Yield/Rate (3)   Average Balance   Interest   Average Yield/Rate (3)
    ASSETS                      
    Loans (1) $ 4,604,175     $ 70,155   6.06 %   $ 4,613,028     $ 72,493   6.25 %
    Loans held for sale   1,562       23   5.86 %     871       11   5.02 %
    Securities:                      
    Taxable investment securities (2)   784,321       6,949   3.52 %     791,914       7,150   3.59 %
    Tax-exempt investment securities (2)   1,138,271       10,793   3.77 %     1,174,445       11,825   4.01 %
    Mortgage-backed and related securities (2)   1,031,187       12,043   4.65 %     886,325       11,976   5.38 %
    Total securities   2,953,779       29,785   4.01 %     2,852,684       30,951   4.32 %
    Federal Home Loan Bank stock, at cost, and equity investments   37,078       591   6.34 %     41,159       582   5.63 %
    Interest earning deposits   273,656       3,160   4.59 %     281,313       3,798   5.37 %
    Federal funds sold   43,121       508   4.69 %     33,971       488   5.71 %
    Total earning assets   7,913,371       104,222   5.24 %     7,823,026       108,323   5.51 %
    Cash and due from banks   102,914               100,578          
    Accrued interest and other assets   454,387               455,091          
    Less: Allowance for loan losses   (44,418 )             (42,581 )        
    Total assets $ 8,426,254             $ 8,336,114          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 594,196       1,456   0.97 %   $ 598,116       1,490   0.99 %
    Certificates of deposit   1,187,800       13,537   4.53 %     1,087,613       12,647   4.63 %
    Interest bearing demand accounts   3,459,122       23,468   2.70 %     3,409,911       24,395   2.85 %
    Total interest bearing deposits   5,241,118       38,461   2.92 %     5,095,640       38,532   3.01 %
    Federal Home Loan Bank borrowings   572,993       5,557   3.86 %     618,708       6,488   4.17 %
    Subordinated notes, net of unamortized debt issuance costs   92,024       945   4.09 %     91,988       937   4.05 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,274       1,095   7.23 %     60,273       1,180   7.79 %
    Repurchase agreements   80,891       782   3.85 %     83,297       899   4.29 %
    Other borrowings   61,196       1,142   7.42 %     137,482       2,203   6.37 %
    Total interest bearing liabilities   6,108,496       47,982   3.12 %     6,087,388       50,239   3.28 %
    Noninterest bearing deposits   1,383,204               1,344,165          
    Accrued expenses and other liabilities   112,320               98,331          
    Total liabilities   7,604,020               7,529,884          
    Shareholders’ equity   822,234               806,230          
    Total liabilities and shareholders’ equity $ 8,426,254             $ 8,336,114          
    Net interest income (FTE)     $ 56,240           $ 58,084    
    Net interest margin (FTE)         2.83 %           2.95 %
    Net interest spread (FTE)         2.12 %           2.23 %
    (1) Interest on loans includes net fees on loans that are not material in amount.
    (2) For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
    (3) Yield/rate includes the impact of applicable derivatives.
       

    Note: As of December 31, 2024 and September 30, 2024, loans totaling $3.2 million and $7.3 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Three Months Ended
      June 30, 2024
      Average Balance   Interest   Average Yield/Rate (3)
    ASSETS          
    Loans (1) $ 4,595,980     $ 70,293   6.15 %
    Loans held for sale   1,489       24   6.48 %
    Securities:          
    Taxable investment securities (2)   783,856       7,009   3.60 %
    Tax-exempt investment securities (2)   1,254,097       12,761   4.09 %
    Mortgage-backed and related securities (2)   830,504       11,084   5.37 %
    Total securities   2,868,457       30,854   4.33 %
    Federal Home Loan Bank stock, at cost, and equity investments   40,467       573   5.69 %
    Interest earning deposits   300,047       4,105   5.50 %
    Federal funds sold   75,479       1,021   5.44 %
    Total earning assets   7,881,919       106,870   5.45 %
    Cash and due from banks   110,102          
    Accrued interest and other assets   424,323          
    Less: Allowance for loan losses   (43,738 )        
    Total assets $ 8,372,606          
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Savings accounts $ 604,753       1,454   0.97 %
    Certificates of deposit   1,020,099       11,630   4.59 %
    Interest bearing demand accounts   3,513,068       25,382   2.91 %
    Total interest bearing deposits   5,137,920       38,466   3.01 %
    Federal Home Loan Bank borrowings   606,851       6,455   4.28 %
    Subordinated notes, net of unamortized debt issuance costs   92,017       936   4.09 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,271       1,171   7.81 %
    Repurchase agreements   88,007       955   4.36 %
    Other borrowings   143,169       2,595   7.29 %
    Total interest bearing liabilities   6,128,235       50,578   3.32 %
    Noninterest bearing deposits   1,346,274          
    Accrued expenses and other liabilities   101,399          
    Total liabilities   7,575,908          
    Shareholders’ equity   796,698          
    Total liabilities and shareholders’ equity $ 8,372,606          
    Net interest income (FTE)     $ 56,292    
    Net interest margin (FTE)         2.87 %
    Net interest spread (FTE)         2.13 %

     

    (1) Interest on loans includes net fees on loans that are not material in amount.
    (2) For the purpose of calculating the average yield, the average balance of securities do not include unrealized gains and losses on AFS securities.
    (3) Yield/rate includes the impact of applicable derivatives.
       

    Note: As of June 30, 2024, loans totaling $6.1 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    Southside Bancshares, Inc.
    Average Balances and Average Yields and Rates (Annualized) (Unaudited)
    (Dollars in thousands)
     
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    ASSETS                      
    Loans (1) $ 4,572,492     $ 135,958   6.00 %   $ 4,577,791     $ 139,142   6.11 %
    Loans held for sale   931       27   5.85 %     5,162       42   1.64 %
    Securities:                      
    Taxable investment securities (2)   742,375       12,568   3.41 %     782,139       13,976   3.59 %
    Tax-exempt investment securities (2)   1,132,736       20,604   3.67 %     1,270,010       25,929   4.11 %
    Mortgage-backed and related securities (2)   1,022,360       26,563   5.24 %     797,608       21,203   5.35 %
    Total securities   2,897,471       59,735   4.16 %     2,849,757       61,108   4.31 %
    Federal Home Loan Bank stock, at cost, and equity investments   37,194       1,007   5.46 %     40,265       906   4.52 %
    Interest earning deposits   289,586       6,123   4.26 %     340,114       9,307   5.50 %
    Federal funds sold   35,751       786   4.43 %     69,039       1,859   5.41 %
    Total earning assets   7,833,425       203,636   5.24 %     7,882,128       212,364   5.42 %
    Cash and due from banks   87,046               112,241          
    Accrued interest and other assets   455,245               432,904          
    Less: Allowance for loan losses   (44,925 )             (43,356 )        
    Total assets $ 8,330,791             $ 8,383,917          
    LIABILITIES AND SHAREHOLDERS’ EQUITY                      
    Savings accounts $ 595,045       2,880   0.98 %   $ 604,641       2,878   0.96 %
    Certificates of deposit   1,372,110       29,311   4.31 %     981,023       21,971   4.50 %
    Interest bearing demand accounts   3,358,573       42,483   2.55 %     3,574,001       51,815   2.92 %
    Total interest bearing deposits   5,325,728       74,674   2.83 %     5,159,665       76,664   2.99 %
    Federal Home Loan Bank borrowings   503,898       9,558   3.83 %     606,942       12,405   4.11 %
    Subordinated notes, net of unamortized debt issuance costs   92,079       1,867   4.09 %     92,956       1,892   4.09 %
    Trust preferred subordinated debentures, net of unamortized debt issuance costs   60,275       2,029   6.79 %     60,271       2,346   7.83 %
    Repurchase agreements   73,785       1,300   3.55 %     90,092       1,922   4.29 %
    Other borrowings   30,528       1,304   8.61 %     140,228       4,759   6.82 %
    Total interest bearing liabilities   6,086,293       90,732   3.01 %     6,150,154       99,988   3.27 %
    Noninterest bearing deposits   1,337,210               1,342,329          
    Accrued expenses and other liabilities   87,131               100,558          
    Total liabilities   7,510,634               7,593,041          
    Shareholders’ equity   820,157               790,876          
    Total liabilities and shareholders’ equity $ 8,330,791             $ 8,383,917          
    Net interest income (FTE)     $ 112,904           $ 112,376    
    Net interest margin (FTE)         2.91 %           2.87 %
    Net interest spread (FTE)         2.23 %           2.15 %
    (1) Interest on loans includes net fees on loans that are not material in amount.
    (2) For the purpose of calculating the average yield, the average balance of securities is presented at historical cost.
       

    Note: As of June 30, 2025 and 2024, loans totaling $5.0 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

    The following tables set forth the reconciliation of return on average common equity to return on average tangible common equity, book value per share to tangible book value per share, net interest income to net interest income adjusted to a fully taxable-equivalent basis assuming a 21% marginal tax rate for interest earned on tax-exempt assets such as municipal loans and investment securities, along with the calculation of total revenue, adjusted noninterest expense, efficiency ratio (FTE), net interest margin (FTE) and net interest spread (FTE) for the applicable periods presented.

    Southside Bancshares, Inc.
    Non-GAAP Reconciliation (Unaudited)
    (Dollars and shares in thousands, except per share data)
     
        Three Months Ended   Six Months Ended
          2025       2024       2025       2024  
        Jun 30,   Mar 31,   Dec 31,   Sep 30,   Jun 30,   Jun 30,   Jun 30,
    Reconciliation of return on average common equity to return on average tangible common equity:                            
    Net income   $ 21,813     $ 21,507     $ 21,786     $ 20,524     $ 24,673     $ 43,320     $ 46,184  
    After-tax amortization expense     157       176       196       220       243       333       509  
    Adjusted net income available to common shareholders   $ 21,970     $ 21,683     $ 21,982     $ 20,744     $ 24,916     $ 43,653     $ 46,693  
                                 
    Average shareholders’ equity   $ 815,473     $ 824,893     $ 822,234     $ 806,230     $ 796,698     $ 820,157     $ 790,876  
    Less: Average intangibles for the period     (202,569 )     (202,784 )     (203,020 )     (203,288 )     (203,581 )     (202,676 )     (203,745 )
    Average tangible shareholders’ equity   $ 612,904     $ 622,109     $ 619,214     $ 602,942     $ 593,117     $ 617,481     $ 587,131  
                                 
    Return on average tangible common equity     14.38 %     14.14 %     14.12 %     13.69 %     16.90 %     14.26 %     15.99 %
                                 
    Reconciliation of book value per share to tangible book value per share:                            
    Common equity at end of period   $ 807,200     $ 816,623     $ 811,942     $ 805,254     $ 800,970     $ 807,200     $ 800,970  
    Less: Intangible assets at end of period     (202,449 )     (202,647 )     (202,870 )     (203,119 )     (203,397 )     (202,449 )     (203,397 )
    Tangible common shareholders’ equity at end of period   $ 604,751     $ 613,976     $ 609,072     $ 602,135     $ 597,573     $ 604,751     $ 597,573  
                                 
    Total assets at end of period   $ 8,339,966     $ 8,343,300     $ 8,517,448     $ 8,362,263     $ 8,357,702     $ 8,339,966     $ 8,357,702  
    Less: Intangible assets at end of period     (202,449 )     (202,647 )     (202,870 )     (203,119 )     (203,397 )     (202,449 )     (203,397 )
    Tangible assets at end of period   $ 8,137,517     $ 8,140,653     $ 8,314,578     $ 8,159,144     $ 8,154,305     $ 8,137,517     $ 8,154,305  
                                 
    Period end tangible equity to period end tangible assets     7.43 %     7.54 %     7.33 %     7.38 %     7.33 %     7.43 %     7.33 %
                                 
    Common shares outstanding end of period     30,082       30,410       30,379       30,308       30,261       30,082       30,261  
    Tangible book value per common share   $ 20.10     $ 20.19     $ 20.05     $ 19.87     $ 19.75     $ 20.10     $ 19.75  
                                 
    Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):                            
    Net interest income (GAAP)   $ 54,266     $ 53,852     $ 53,707     $ 55,464     $ 53,608     $ 108,118     $ 106,956  
    Tax-equivalent adjustments:                            
    Loans     565       581       598       608       633       1,146       1,289  
    Tax-exempt investment securities     1,868       1,772       1,935       2,012       2,051       3,640       4,131  
    Net interest income (FTE) (1)     56,699       56,205       56,240       58,084       56,292       112,904       112,376  
    Noninterest income     12,145       10,223       12,281       8,171       11,557       22,368       21,281  
    Nonrecurring income (2)     —       554       (25 )     2,797       (576 )     554       (558 )
    Total revenue   $ 68,844     $ 66,982     $ 68,496     $ 69,052     $ 67,273     $ 135,826     $ 133,099  
                                 
    Noninterest expense   $ 39,257     $ 37,089     $ 38,159     $ 36,332     $ 35,765     $ 76,346     $ 72,646  
    Pre-tax amortization expense     (198 )     (223 )     (249 )     (278 )     (307 )     (421 )     (644 )
    Nonrecurring expense (3)     (2,090 )     (1 )     (919 )     (219 )     2       (2,091 )     19  
    Adjusted noninterest expense   $ 36,969     $ 36,865     $ 36,991     $ 35,835     $ 35,460     $ 73,834     $ 72,021  
                                 
    Efficiency ratio     55.67 %     57.04 %     56.08 %     53.94 %     54.90 %     56.34 %     56.41 %
    Efficiency ratio (FTE) (1)     53.70 %     55.04 %     54.00 %     51.90 %     52.71 %     54.36 %     54.11 %
                                 
    Average earning assets   $ 7,709,799     $ 7,958,424     $ 7,913,371     $ 7,823,026     $ 7,881,919     $ 7,833,425     $ 7,882,128  
                                 
    Net interest margin     2.82 %     2.74 %     2.70 %     2.82 %     2.74 %     2.78 %     2.73 %
    Net interest margin (FTE) (1)     2.95 %     2.86 %     2.83 %     2.95 %     2.87 %     2.91 %     2.87 %
                                 
    Net interest spread     2.15 %     2.08 %     1.99 %     2.10 %     2.00 %     2.11 %     2.01 %
    Net interest spread (FTE) (1)     2.27 %     2.20 %     2.12 %     2.23 %     2.13 %     2.23 %     2.15 %
    (1) These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
    (2) These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
    (3) These adjustments may include foreclosure expenses, branch closure expenses and other miscellaneous expense, in the periods where applicable.

    The MIL Network –

    July 25, 2025

  • MIL-OSI China: Loan data points to stabilizing realty sector

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

    This aerial panoramic photo taken on Jan. 10, 2023 shows a view of Lujiazui area in the China (Shanghai) Pilot Free Trade Zone in east China’s Shanghai. [Photo/Xinhua]

    The latest lending data showing a rebound in property-related loans indicates early signs of stabilization in China’s real estate market, signaling a gradual recovery in financing activity and a renewed sense of confidence among developers and homebuyers, industry experts said on Thursday.

    They said that more supportive measures are expected to be rolled out to restore momentum in the property market while existing policies gradually take effect, which will further boost market confidence and pave the way for overall market stabilization in the coming months.

    Data released on Tuesday by the People’s Bank of China, the nation’s central bank, shows that as of the end of the second quarter of 2025, outstanding renminbi real estate loans amounted to 53.33 trillion yuan ($7.45 trillion), up 0.4 percent year-on-year, an increase of 0.6 percentage point over the end of 2024.

    In the first half of the year, real estate loans increased by 416.6 billion yuan, while property development loans rose 292.6 billion yuan, reaching 13.81 trillion yuan, up 0.3 percent year-on-year.

    The data also showed that outstanding individual housing loans stood at 37.74 trillion yuan, down 0.1 percent year-on-year, but the decline narrowed by 1.2 percentage points from the end of 2024.

    “This is a clear and encouraging sign that the real estate market is gradually stabilizing. Consecutive quarters of positive loan growth suggest that financing is flowing more smoothly again — both for developers and homebuyers,” said Shaun Brodie, head of research content for China with Cushman & Wakefield, a global real estate services company.

    “It also reflects improving confidence among financial institutions and a more supportive policy environment. These factors collectively indicate that the market is transitioning from a correction phase toward a more balanced and sustainable footing,” Brodie said.

    Yao Yao, head of research at JLL China, said the growth tendency is more evident in property development loans.

    “Although property loan growth is still subdued, it has posted year on-year gains for a second straight quarter, with development loan balances rising even faster. That momentum has been largely echoed by stronger land auction results in core cities since the start of the year, backed by a rising supply of prime land,” said Yao.

    Ding Zuyu, chairman of China Real Estate Information Corp, said that since June, while the central government has actively worked to boost domestic demand and stimulate consumption, local governments have also continued to strengthen market-stabilizing policies.

    “Notable examples are Guangdong province’s Shen­zhen and Zhuhai promoting mutual recognition of housing provident fund loans; Hangzhou allowing the use of provident fund savings for down payments; and Binhu district of Jiangsu province’s Wuxi launching a “SuChao” (Jiangsu Football City League) ticket stub subsidy program offering up to 50,000 yuan for homebuyers,” said Ding.

    In the first half of this year, local governments rolled out over 340 measures, primarily focusing on optimizing housing provident fund policies, offering home purchase subsidies and adjusting land supply, according to media reports.

    Yan Yuejin, deputy head of the Shanghai-based E-House China R&D Institute, said that in the first half of 2025, China’s real estate market showed positive momentum, reflecting both the effective impact of supportive housing policies and strong underlying demand.

    This upward trend has laid a solid foundation for further market recovery in the second half of the year, Yan said, adding that with supply and demand having undergone substantial adjustments, the sector is well-positioned for more balanced and sustainable growth moving forward.

    MIL OSI China News –

    July 25, 2025

  • MIL-OSI: Logansport Financial Corp. Reports Net Earnings for the Quarter Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    LOGANSPORT, Ind., July 24, 2025 (GLOBE NEWSWIRE) — Logansport Financial Corp., (OTCQB, LOGN), parent company of Logansport Savings Bank, reported net earnings for the quarter ended June 30, 2025 of $413,000 or $0.67 per diluted share, compared to earnings in 2024 of $349,000 or $0.57 per diluted share. Year to date the company reported net earnings of $790,000 for 2025 compared to $617,000 for 2024. Diluted earnings per share for the six months ended June 30, 2025 were $1.45 compared to $1.01 for the six months ended June 30, 2024. Total assets at June 30, 2025 were $260.2 million compared to total assets at June 30, 2024 of $249.6 million. Total Deposits at June 30, 2025 were $223.8 million compared to total deposits of $211.7 million at June 30, 2024. The company paid a total of $0.90 per share in dividends in the first half of 2025 compared to $0.90 in 2024.

    The statements contained in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involves a number of risks and uncertainties. A number of factors could cause results to differ materially from the objectives and estimates expressed in such forward-looking statements. These factors include, but are not limited to, changes in the financial condition of issuers of the Company’s investments and borrowers, changes in economic conditions in the Company’s market area, changes in policies of regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, changes in the position of banking regulators on the adequacy of our allowance for loan losses, and competition, all, or some of which could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These factors should be considered in evaluation of any forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

    Logansport Financial Corp.  
    Selected Financial Data  
    (Dollars in thousands except for share data)  
                 
               
        6/30/2025
    		 6/30/2024
    		        
                 
    Total Assets   $ 260,221 $ 249,611        
                 
    Loans receivable, net     173,350   170,147        
    Allowance for loan losses     1,872   2,885        
    Cash and cash equivalents     1,445   1,289        
    Interest Bearing Time Deposits in banks     11,581   5,914        
    Securities available for sale     52,550   56,270        
    Federal Home Loan Bank stock     3,150   3,150        
    Deposits     223,764   211,739        
    FHLB borrowings and note payable     15,000   15,000        
    Shareholders’ equity     20,479   20,870        
    Shares Issued and Outstanding     612,953   611,822        
    Nonperforming loans     3,395   392        
    Real Estate Owned     –   –        
                 
                 
        Quarter ended 6/30
    		     Six months ended 6/30
    		  
          2025   2024       2025   2024  
                 
    Interest income   $ 3,421 $ 3,130     $ 6,688 $ 6,042  
    Interest expense     1,680   1,613       3,200   3,087  
    Net interest income     1,741   1,517       3,488   2,955  
    Provision for loan losses     –   (49 )     –   (49 )
    Net interest income after provision     1,741   1,566       3,488   3,004  
    Gain on sale of loans     76   110       129   161  
    Other income     341   468       706   885  
    General, admin. & other expense     1,710   1,786       3,466   3,440  
    Earnings before income taxes     448   358       857   610  
    Income tax expense     35   9       67   (7 )
    Net earnings   $ 413 $ 349     $ 790 $ 617  
    Earnings per share   $ 0.67 $ 0.57     $ 1.45 $ 1.01  
    Weighted avg. shares o/s-diluted     612,953   611,822       612,953   611,822  
                             

    Contact: Kristie Richey
    Chief Financial Officer
    Phone-574-722-3855
    Fax-574-722-3857

    The MIL Network –

    July 25, 2025

  • MIL-OSI USA: Tuberville Introduces Huntsville’s Bill Roark During HELP Hearing

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville
    WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL)introduced Mr. Bill Roark of Huntsville, Alabama, as a witness appearing before the Senate Health, Education, Labor, and Pensions (HELP) Committee. The hearing was about empowering workers by expanding employee ownership.
    Read excerpts from the hearing below or watch on YouTube or Rumble.
    INTRODUCTION:
    TUBERVILLE: “I’m proud to introduce an Auburn man and a constituent, Mr. Bill Roark. Mr. Roark is the Co-founder of Torch Technologies Inc., Founder and Executive Chairman of the Board of Starfish Holdings, Inc., and Founder and Chair of the Board of Freedom Real Estate and Capital LLC, so he stays pretty busy. He’s a champion for employee ownership, and he has led multiple companies to national recognition [thanks] to his core values.
    As CEO of Torch Technologies, Mr. Rourke implemented an employee-owned ownership program from the company’s inception with the goal of becoming a 100% S corp employee stock ownership plan. His company achieved that goal in just under 10 years. Torch and Mr. Roark gained national attention for being named on the inaugural list of best of America’s best small companies by Forbes. During his tenure, Torch received multiple business awards and was named the number one fastest-growing, privately-held defense contractor in the southeast region. Torch Technologies provides superior research development and engineering services to the Department of Defense. Mr. Roark recently led Torch to become a certified evergreen company, achieving its long-term commitment to 100% employee ownership and its pledge to remain privately held to ensure enduring stability and opportunity for its workforce. This milestone came as Torch celebrated its 20th anniversary. 
    A true believer in company culture and employee well-being, Mr. Rourke has prioritized top-tier benefits and working conditions throughout his career. Mr. Rourke also founded Starfish Holdings Incorporated, a holding company that provides beneficial ownerships to employees across all its portfolios through an ESOP structure. Starfish Holdings companies now include Torch Technologies Inc., Freedom Real Estate and Capital LLC, and SIMVANA [LLC]. Mr. Roark has a proven track record with a common denominator of building companies where employees can thrive, retire with dignity, and find lasting purpose in their work.
    Thank you for being here today, Mr. Roark.”
    ON THE IMPORTANCE OF WORKPLACE DIGNITY:
    TUBERVILLE: “Important topic. Mister Roark, it’s got to be pretty mind calming to know if you work in an ESOP and you have some of the owners exit the company that everybody’s not gonna lose their job. So, what kind of security does an ESOP structure have for all employees? What that you’ve seen? Some examples.”
    ROARK: “Well, you know, we work real hard to build a succession plan in that it prepares our employees as people retire to step forward. You know, that is a challenge. One of the biggest challenges we’ve had is the success of the ESOP has led to people retiring early, so we have to work that problem a little harder and be training people ready to step into the role. The departure of employees that are retiring actually creates lots of opportunities for the other employees to accelerate in their careers quicker. So, a successful ESOP actually creates a lot of successful careers.
    It also creates the ability for employees to retire with dignity. In fact, the announcement of this hearing went out on our social media last night and one of the posts this morning, I’ll quote for you. […] Jim Deal, one of our retiring employees seven or eight years ago, he says, ‘Tell them how much you helped us retire with dignity.’ That is to me the essence of why I wanted to do this. You know, some 25 years ago, a company bought the company I worked for. And a few months after it was bought, I’d had a successful career. I went from being an entry level person to an executive. I was president of an operating segment. In that time, I’d had one of the most successful careers of anyone at that company. As that acquisition evolved and I was there, I was shortly thereafter, walked to the door and asked, told as I was handed my severance check that ‘We’ll pack your office and send your stuff home.’
    When I started this company, at the core of what I wanted is I wanted people to retire with dignity. When I walked out and stood on that corner, I didn’t feel very dignified. When I meet an employee in the grocery store, I want them to come hug me, not run from me. With the ESOP, I get lots of hugs. Every year when the ESOP statements come out, I get lots of hugs.This is a different way of doing business. I never wanna see an employee walk through the door in such an undignified manner. I put my whole life into that company. Several times, I worked 24 hours straight to get a delivery out on time.Was that respected? No. My stuff showed up in boxes with a bunch of crap that I didn’t really want, was not dignified at all. I hope that answers your question, Coach.”
    TUBERVILLE: “So, how can we help on the federal level to make ESOP structure more viable for that?”
    ROARK: “No. I think there’s lots of ideas being proposed here in in several of these bills, you know, making this easier, making it clearer in what we’re supposed to do. There’s a lot of murkiness in the bills, you know, one of the things for us in the last few years, we’ve been in a position where we could contribute more than the maximum allowable to our employees, and that creates an issue with the ESOP itself. Rf the limit is at 25%, I can only give 25%. If it were higher, we in some cases would have given higher, including this year. So, there are some pieces there where we could just fine tune some things. The ESOP is a wonderful tool and it provides stability for the employees and provides a retirement path for them as well. So, I think the more that we can refine the regulations around it to encourage people to be able to do this, clear up the rules on how the evaluations are done so that it’s clear what needs to be done. I think those would be great helps.”
    TUBERVILLE: “Thank you. Thank you, Mr. Chairman.”
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

    July 25, 2025

  • MIL-OSI USA: Schatz: National Housing Shortage Is A Problem The Government Has Created; We Can Fix It

    US Senate News:

    Source: United States Senator for Hawaii Brian Schatz

    WASHINGTON – U.S. Senator Brian Schatz (D-Hawai‘i) spoke on the Senate floor today about the national housing shortage in the United States and the urgent need to cut onerous regulations that stand in the way of building more housing. Schatz introduced three bipartisan housing bills this week, including the Build More Housing Near Transit Act and the YIMBY Act. The Build More Housing Near Transit Act incentivizes local governments to build housing near federally-funded transit projects. The YIMBY Act encourages localities to cut regulations and adopt pro-housing policies.

    “When it comes to one of the most basic necessities in life for people – housing – both political parties have failed,” said Senator Schatz. “This crisis was not inevitable. It is a problem that the government has created. There is not enough housing in this country because we have made it virtually impossible to build housing. But the good news is this if the government got us into this mess in the first place, it can help to get us out. And mainly that means getting out of our own way and not preventing the very things that we say that we like.

    Senator Schatz added, “We can and we do disagree about almost everything. But on this we should all be able to agree: in the richest country in the history of the world, people should not have to worry about having a roof over their heads. We can fix this, and we must.”

    A transcript of Senator Schatz’s remarks is below. Video is available here.

    When it comes to one of the most basic necessities in life for people – housing – both political parties have failed. Housing costs more than ever today, with the median home costing five times as much as the median income for your average American. First time home buyers are fewer and older than ever. 1 in 4 renters are being forced to spend more than half of their income on rent, and homelessness is plaguing more people than ever before.

    This crisis was not inevitable. It is a problem that the government has created. There is not enough housing in this country because we have made it virtually impossible to build housing. Ask anyone who has tried to build anything a shed, a patio, or an accessory dwelling unit for their in-laws. They will tell you that the moment you try to do something, there are endless procedural hurdles and regulatory barriers that immediately get in the way. Exclusionary zoning. Minimum lot sizes. Height restrictions. Requirements for multiple staircases, environmental reviews, dozens of public meetings where the grouchiest people in your neighborhood can stop the most virtuous project in your neighborhood. Extensive permitting paperwork. Yearslong battles with community organizations and boards. And if you want to expedite your permit. You can pay a permit expediter. If you’ve got ten grand, they’ll put your thing on the top of the pile.

    Nobody should like this system. I cannot think of something so essential to American life: housing. Whether you rent or you want to own, so essential to American life, where the government has created the shortage on purpose. And then it strokes its chin, confused as to why there is a shortage there is a shortage. There is a shortage because of the government itself, making it hard to construct the thing that we all say we want.

    But the good news is this if the government got us into this mess in the first place, it can help to get us out. And mainly that means getting out of our own way and not preventing the very things that we say that we like. A lot of progressives in my own party like to say we’re for housing, we’re for clean energy, we’re for transit and infrastructure. But you can’t be for something if you don’t want it near you. If you’re for housing, you’ve got to see the housing. If you’re for clean energy, you’re going to see a windmill or a wind farm or a nuclear power plant somewhere. As we envision a just and sustainable and wealthy country, we have to actually make the things that make us more sustainable and wealthy.

    There is nothing progressive about preventing a nurse, or a firefighter, or a teacher, or a small business owner from actually living in the community in which they work. There is nothing progressive about making people drive an hour to work or in Hawaii, forcing people to leave the state. Lawn sizes and building heights don’t make neighborhoods – people do.

    And yet, you’ll often hear people who oppose new housing say things like, ‘Well, we want to preserve the unique character of the neighborhood.’ And this is something that I’m embarrassed to say I didn’t know until I came to the United States Senate. Understand what those words mean and where they came from. They are echoing a dark time in American history: the Jim Crow era. It was a time when communities specifically codified into law language that prohibited Black people and other racial minorities from moving into certain neighborhoods. The racial covenants would literally say, “No lot covered by this indenture, or any part thereof, shall ever be sold, resold, conveyed, granted, devised, leased or rented to or occupied by, or in any way used by, any person or persons not of the Caucasian Race.” That’s from a covenant in St. Louis from 1949. And there were contracts just like that one in neighborhoods all across the country.

    And then racial covenants were outlawed. But their legacy continues today, because what happened was the racists, after this was outlawed, figured out a proxy for race. Figured out a way to keep people separated and figured out a way to keep people out of their neighborhoods. Figured out a way to make housing more constrained. And that’s exclusionary zoning. That’s minimum lot sizes. That means you need interior staircases. All of these things that sound virtuous: safety, sanitation, environmental review, historic preservation – all of those things actually matter. But understand that they are being weaponized against the working class.

    And I’m not sure if this is permissible under the rules, but I’m looking at a bunch of Senate pages, all 16 years old, trying to figure out: ‘Where am I going to live when I get a job? Do I have to live with my folks? And for how long? Am I going to be able to move to a suburb, or a city, or stay in my hometown? Where am I going to live?’

    So how do we fix it? First of all, government has a role that is not just getting out of the way. On the financing side, on the public housing stock side, on vouchers, on Section 8, on HUD-VASH – there are lots of programs that work. A lot of government – things that we do – that have helped and can help more.

    But the truth is that the throughput capacity of the system is being constrained by the government itself. We could allocate $3 trillion to affordable housing. And if it’s still hard to build a house in an individual neighborhood, all that money would get stuck. Actually, the state of California tried that. They allocated an enormous amount of money to housing, and they didn’t get very much built. The County of Maui many years ago said no new housing unless it’s affordable. Which kind of lands on the ears in a wonderful way, right? No new housing unless it’s affordable. You know what happened? There was no new housing at all for a full decade.

    The reason I care about this is because I think it is the single most impactful economic policy that we can implement to make it easier to build housing for working people, for students, for the disabled, for the elderly, for the entrepreneurs, for cities, for towns, for rural neighborhoods. This is important because I care about that. Now, if you are a conservative, the basic principle is almost even more simple, which is it’s your damn property. You should be permitted to do what you want with your property, within certain safety boundaries and all the rest of it. But if it’s your property and if you’ve got a quarter of an acre and you want to build an accessory dwelling unit for your kids because they’re adults and they just had a baby, you should be allowed to do pretty much whatever you want with your property.

    But we have inverted the presumption so that it’s your neighbors that get to decide what you get to do with your property. So if you’re a private property rights person, you should love the idea of deregulating the housing market. And if you are a progressive and you see how much people are struggling right now, you should love the idea of deregulating the housing market. We need to reform land use laws for upzoning to allow higher density, reduce minimum lot sizes, deploy manufactured homes, enable single room occupancy development wherever multifamily housing is allowed. And we know all of this works because it’s working in certain places.

    It’s hard to keep any issue out of the partisan crossfire, where everyone retreats to their own corner and starts talking past each other and trying to light the algorithm on fire. Our ability to come together, use common sense, and find a way forward will affect how people live and succeed for generations to come. Just this week, Senator Banks and I introduced legislation to incentivize local governments to build more housing near federally funded transit projects. Senator Young and I introduced the YIMBY Act – the Yes in My Backyard Act – which encourages localities to cut onerous regulations and adopt pro-housing policies.

    We can and we do disagree about almost everything. But on this we should all be able to agree: in the richest country in the history of the world, people should not have to worry about having a roof over their heads. We can fix this, and we must.

    MIL OSI USA News –

    July 25, 2025

  • MIL-OSI Analysis: Dealing with wildfires requires a whole-of-society approach

    Source: The Conversation – Canada – By Kevin Kriese, Senior Wildfire and Land Use Analyst, Centre for Global Studies, University of Victoria

    As the summer heat intensifies, people across Canada are facing the full brunt of wildfire season. Communities are being evacuated and properties are being destroyed as fires grow in size.

    Over the past decade, wildfires in Canada have broken numerous records, including the area burned in the largest single fire in recent history.

    More frequent fires are unsettling communities, causing rapid changes to ecosystems and having a negative impact on society and our economy.

    Increased wildfire risk is driven by a variety of factors, including more extreme fire weather (high temperatures, low humidity and powerful winds) made worse by climate change, fire deficits, the accumulation of fuels like trees and other organic materials on the landscape and changing land-use and settlement patterns.

    Our new research from the POLIS Wildfire Resilience Project at the University of Victoria explores how beneficial fires — fire that maximizes ecological benefits and minimizes risks to communities — can help build wildfire resilience.

    What are beneficial fires?

    Fire is a natural, necessary and inevitable part of many ecosystems in Canada. Historically, wildfire created a mosaic of diverse ecosystems and habitat conditions, which supported healthy watersheds and contributed to the cultures and livelihoods of Indigenous Peoples.

    Beneficial fire typically includes Indigenous cultural burning, prescribed fire and managed wildfire. These fires are managed for their ecological, cultural and community benefits, while minimizing adverse effects.

    One reason we’re seeing more catastrophic fires now is because of a history of widespread wildfire suppression, which can allow fuels to accumulate. When fuels accumulate, the risk from wildfire increases.

    In certain places and contexts, suppression remains the appropriate approach. It will continue to play a critical role in keeping communities safe and conserving ecosystem services like clean water and special places. But suppression alone is not viable or desirable. Instead, a suite of proactive actions from a variety of stakeholders is required.

    In British Columbia, Indigenous communities are returning cultural burning to their territories. A burn by the ʔaq̓am First Nation, with support from the BC Wildfire Service and local fire departments, was credited with helping save lives and homes from the St. Mary’s wildfire in summer 2024.

    Later in 2024, portions of a wildfire near the Wet’suwet’en community of Witset were allowed to burn while firefighting efforts focused on the part of the fire that threatened the community. This approach protected the village of Witset while still allowing the fire to create ecological benefits.

    Despite increasing awareness that some fires are beneficial, community opposition to cultural and prescribed fires — as well as to letting wildfires burn — persists. This opposition stems from a longstanding fears of fire and the very real threats posed to communities, people and property.

    A whole-of-society approach

    Until people feel safe from wildfire, the ability to return fire to the landscape will be limited and pressure for maximum suppression will likely continue. However, when people feel safe in their homes and communities, they may be more likely to accept more beneficial fire on the landscape.

    Risk reduction programs, such as FireSmart, take a holistic approach to wildfire resilience and include practical measures proven to reduce property loss.

    Homeowners who live near fire-prone ecosystems (referred to as the wildland-urban interface) can take simple actions, such as removing flammable material within 1.5 metres of buildings, while communities can plan effective evacuation routes.

    Experience in other jurisdictions indicates that voluntary measures, like FireSmart, are more effective when combined with mandatory minimum standards for fire-resistant building construction, vegetation management and landscaping.

    Reducing risk and increasing beneficial fires requires co-ordinated action from a diverse array of parties. For example, creating home-hardening requirements demands updated provincial building codes and local government plans that consider wildfire resilience.

    When a diverse array of entities is required to work towards a common goal, co-ordination and collaboration are vital and a whole-of-society approach is required. This type of approach fosters innovation, local agency and broader accountability — ultimately resulting in better outcomes on the ground.

    There are calls for this approach at national and international levels. Recent examples include the Canadian Council of Forest Ministers’ Canadian Wildland Fire Prevention and Mitigation Strategy and the G7 Kananaskis Wildfire Charter.

    Diverse actions needed

    Crown governments have historically worked in a top-down wildfire management model: provincial and territorial governments are in charge and select partners, such as industry, have been engaged to carry out specific actions.

    We are beginning to see a shift to greater sharing of responsibilities, partnerships, recognition of Indigenous authorities and increased local action. For example, B.C. has committed to “integrate traditional practices and cultural uses of fire into wildfire prevention and land management practices and support the reintroduction of strategized burning.”

    As Canadians face another intense wildfire season, in which we’ve already experienced loss of life and property, meaningful action across all of society is essential.

    Provincial governments must work in collaboration with Indigenous, local and federal governments, as well as industry, civil society, practitioners, local experts and communities.

    Individuals can take action to reduce the risk to their homes by managing the vegetation around their homes and using more fire-resistant building materials. Communities can engage in risk reduction and resilience planning. And governments at all levels can facilitate changes in how we manage our landscape to increase beneficial fires.

    Taken together, these diverse actions across all of society will be crucial for protecting people and ecosystems as we all learn to live with fire.

    Kevin Kriese is a member of the Liberal Party of Canada.

    Andrea Barnett receives funding from the Gordon and Betty Moore Foundation.

    Oliver Brandes receives funding from Gordon and Betty Moore Foundation and the BC Real Estate Foundation.

    – ref. Dealing with wildfires requires a whole-of-society approach – https://theconversation.com/dealing-with-wildfires-requires-a-whole-of-society-approach-260568

    MIL OSI Analysis –

    July 25, 2025

  • MIL-OSI: Goosehead Insurance and Baird & Warner Real Estate Forge Strategic Franchise Partnership to Accelerate the Homebuying Experience

    Source: GlobeNewswire (MIL-OSI)

    WESTLAKE, Texas and CHICAGO, July 24, 2025 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc., (NASDAQ: GSHD), a rapidly growing and innovative independent personal lines insurance agency, has formed a strategic franchise partnership with Baird & Warner Real Estate, one of the largest privately held real estate companies in the United States and the leading independent broker in Illinois. This franchise collaboration, which has been named Adaptive Insurance Agency, redefines the real estate and insurance landscape by seamlessly integrating the option of purchasing insurance services into the homebuying process, delivering unparalleled convenience and value to clients.

    Now directly built into client offerings during the real estate transaction process through the Adaptive brand name, Goosehead Insurance’s solutions provide Baird & Warner clients with the choice to purchase insurance through access to a broad portfolio of insurance carriers, along with expert guidance to secure the right coverage at the right price.

    “This partnership with Baird & Warner builds on the foundation of our business, putting the client at the center of our universe,” said Mark Jones Jr., Chief Financial Officer at Goosehead Insurance. “By combining our proprietary tools and technology with their trusted real estate expertise, we’re delivering a streamlined homebuying experience for clients in Illinois — removing a major pain point in the process.”

    This integration significantly eases the burden on homebuyers by offering a convenient, one-stop solution for comparing and purchasing home insurance. By making it more streamlined to shop for and buy home insurance directly within the homebuying process, clients can save time, reduce stress and make informed decisions with greater ease.

    “Our focus has always been on providing exceptional, client-first solutions and making the process of buying and selling a home easier,” said Dave Mueller, a Senior Vice President within the Baird & Warner organization. “Goosehead Insurance mirrors our commitment to innovation and client advocacy. Our ability to offer their extensive array of insurance options, combined with their high-touch approach through Adaptive, brings a unique and indispensable value to our agents and their clients.”

    To learn more, visit Adaptive Insurance Agency

    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.

    About Baird & Warner Real Estate
    Established in 1855, family-owned Baird & Warner is Chicagoland’s largest independent real estate services company. The Baird & Warner brand has been synonymous with making real estate easier through experience, innovation and integrity for more than 170 years. Steve Baird, the firm’s fifth-generation owner, has been consistently recognized among the industry’s most influential leaders. Baird & Warner is a 10-time Chicago Tribune Top Workplace award winner, and with more than 2,000 broker associates in 25 offices and comprehensive mortgage, title, insurance, and relocation services, it ranks among the nation’s top real estate firms. Learn more at BairdWarner.com.

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

    The MIL Network –

    July 25, 2025

  • MIL-OSI: Goosehead Insurance and Baird & Warner Real Estate Forge Strategic Franchise Partnership to Accelerate the Homebuying Experience

    Source: GlobeNewswire (MIL-OSI)

    WESTLAKE, Texas and CHICAGO, July 24, 2025 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc., (NASDAQ: GSHD), a rapidly growing and innovative independent personal lines insurance agency, has formed a strategic franchise partnership with Baird & Warner Real Estate, one of the largest privately held real estate companies in the United States and the leading independent broker in Illinois. This franchise collaboration, which has been named Adaptive Insurance Agency, redefines the real estate and insurance landscape by seamlessly integrating the option of purchasing insurance services into the homebuying process, delivering unparalleled convenience and value to clients.

    Now directly built into client offerings during the real estate transaction process through the Adaptive brand name, Goosehead Insurance’s solutions provide Baird & Warner clients with the choice to purchase insurance through access to a broad portfolio of insurance carriers, along with expert guidance to secure the right coverage at the right price.

    “This partnership with Baird & Warner builds on the foundation of our business, putting the client at the center of our universe,” said Mark Jones Jr., Chief Financial Officer at Goosehead Insurance. “By combining our proprietary tools and technology with their trusted real estate expertise, we’re delivering a streamlined homebuying experience for clients in Illinois — removing a major pain point in the process.”

    This integration significantly eases the burden on homebuyers by offering a convenient, one-stop solution for comparing and purchasing home insurance. By making it more streamlined to shop for and buy home insurance directly within the homebuying process, clients can save time, reduce stress and make informed decisions with greater ease.

    “Our focus has always been on providing exceptional, client-first solutions and making the process of buying and selling a home easier,” said Dave Mueller, a Senior Vice President within the Baird & Warner organization. “Goosehead Insurance mirrors our commitment to innovation and client advocacy. Our ability to offer their extensive array of insurance options, combined with their high-touch approach through Adaptive, brings a unique and indispensable value to our agents and their clients.”

    To learn more, visit Adaptive Insurance Agency

    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.

    About Baird & Warner Real Estate
    Established in 1855, family-owned Baird & Warner is Chicagoland’s largest independent real estate services company. The Baird & Warner brand has been synonymous with making real estate easier through experience, innovation and integrity for more than 170 years. Steve Baird, the firm’s fifth-generation owner, has been consistently recognized among the industry’s most influential leaders. Baird & Warner is a 10-time Chicago Tribune Top Workplace award winner, and with more than 2,000 broker associates in 25 offices and comprehensive mortgage, title, insurance, and relocation services, it ranks among the nation’s top real estate firms. Learn more at BairdWarner.com.

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

    The MIL Network –

    July 25, 2025

  • MIL-OSI Banking: Mortgage Rate and Home Price Growth Forecasts Revised Lower

    Source: Fannie Mae

    WASHINGTON, DC – Mortgage rates are expected to end 2025 and 2026 at 6.4 percent and 6.0 percent, respectively, downward revisions compared with last month’s forecast of 6.5 percent and 6.1 percent, according to the July 2025 Economic and Housing Outlook from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. The ESR Group also updated its home price growth forecast this month and now projects annual home price growth, on a Q4/Q4 basis, of 2.8 percent in 2025 and 1.1 percent in 2026. These are downward revisions compared with the previously projected 4.1 percent and 2.0 percent. Total home sales are forecast at 4.85 million units in 2025 and 5.35 million units in 2026.

    Visit Fannie Mae’s Data and Insights page to read the full July 2025 Economic and Housing Outlook, including the Economic Developments Commentary, Economic Forecast, and Housing Forecast. To receive email updates with other housing market research from Fannie Mae’s Economic and Strategic Research Group, please click here.

    Opinions, analyses, estimates, forecasts, beliefs, and other views of Fannie Mae’s Economic and Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, beliefs, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, beliefs, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

    About the ESR Group
    Fannie Mae’s Economic and Strategic Research Group, led by Chief Economist Mark Palim, studies current data, analyzes historical and emerging trends, and conducts surveys of consumers and mortgage lenders to inform forecasts and analyses on the economy, housing, and mortgage markets.

    MIL OSI Global Banks –

    July 25, 2025

  • MIL-OSI Europe: Christine Lagarde, Luis de Guindos: Monetary policy statement

    Source: European Central Bank

    Christine Lagarde, President of the ECB,
    Luis de Guindos, Vice-President of the ECB

    Frankfurt am Main, 24 July 2025

    Good afternoon, the Vice-President and I welcome you to our press conference.

    The Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation is currently at our two per cent medium-term target. The incoming information is broadly in line with our previous assessment of the inflation outlook. Domestic price pressures have continued to ease, with wages growing more slowly. Partly reflecting our past interest rate cuts, the economy has so far proven resilient overall in a challenging global environment. At the same time, the environment remains exceptionally uncertain, especially because of trade disputes.

    We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.

    The decisions taken today are set out in a press release available on our website.

    I will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions.

    Economic activity

    In the first quarter the economy grew more strongly than expected. This was partly because firms frontloaded exports ahead of expected tariff hikes. But growth was also bolstered by stronger private consumption and investment.

    Recent surveys point to an overall modest expansion in both the manufacturing and services sectors. At the same time, higher actual and expected tariffs, the stronger euro and persistent geopolitical uncertainty are making firms more hesitant to invest.

    The robust labour market, rising real incomes and solid private sector balance sheets continue to support consumption. Unemployment stood at 6.3 per cent in May, close to its lowest level since the introduction of the euro. Easier financing conditions are underpinning domestic demand, including in the housing market. Over time, higher public investment in defence and infrastructure should also support growth.

    More than ever, the Governing Council considers it crucial to urgently strengthen the euro area and its economy in the present geopolitical environment. Fiscal and structural policies should make the economy more productive, competitive and resilient. Governments should prioritise growth-enhancing structural reforms and strategic investment, while ensuring sustainable public finances. It is important to complete the savings and investments union and the banking union, following a clear and ambitious timetable, and to rapidly establish the legislative framework for the potential introduction of a digital euro. The Governing Council welcomes the Eurogroup’s commitment to improve the effectiveness, quality and composition of public spending and supports the efforts by European authorities to preserve the mutual benefits of global trade.

    Inflation

    Annual inflation stood at 2.0 per cent in June, after 1.9 per cent in May. Energy prices went up in June but are still lower than a year ago. Food price inflation eased slightly to 3.1 per cent. Goods inflation edged down to 0.5 per cent in June, whereas services inflation ticked up to 3.3 per cent, from 3.2 per cent in May.

    Indicators of underlying inflation are overall consistent with our two per cent medium-term target. Labour costs have continued to moderate. Year-on-year growth in compensation per employee slowed to 3.8 per cent in the first quarter, down from 4.1 per cent in the previous quarter. Combined with stronger productivity growth, this led to slower growth in unit labour costs. Forward-looking indicators, including the ECB’s wage tracker and surveys on wage expectations of firms, consumers and professional forecasters, point to a further decline in wage growth.

    Short-term consumer inflation expectations declined in both May and June, reversing the uptick observed in previous months. Most measures of longer-term inflation expectations continue to stand at around 2 per cent, supporting the stabilisation of inflation around our target.

    Risk assessment

    Risks to economic growth remain tilted to the downside. Among the main risks are a further escalation in global trade tensions and associated uncertainties, which could dampen exports and drag down investment and consumption. A deterioration in financial market sentiment could lead to tighter financing conditions and greater risk aversion, and make firms and households less willing to invest and consume. Geopolitical tensions, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, remain a major source of uncertainty. By contrast, if trade and geopolitical tensions were resolved swiftly, this could lift sentiment and spur activity. Higher defence and infrastructure spending, together with productivity-enhancing reforms, would add to growth. An improvement in business confidence would also stimulate private investment.

    The outlook for inflation is more uncertain than usual, as a result of the volatile global trade policy environment. A stronger euro could bring inflation down further than expected. Moreover, inflation could turn out to be lower if higher tariffs lead to lower demand for euro area exports and induce countries with overcapacity to reroute their exports to the euro area. Trade tensions could lead to greater volatility and risk aversion in financial markets, which would weigh on domestic demand and would thereby also lower inflation. By contrast, inflation could turn out to be higher if a fragmentation of global supply chains pushed up import prices and added to capacity constraints in the domestic economy. A boost in defence and infrastructure spending could also raise inflation over the medium term. Extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected.

    Financial and monetary conditions

    Market interest rates have increased since our last meeting, especially at longer maturities. At the same time, our past interest rate cuts continue to make corporate borrowing less expensive. The average interest rate on new loans to firms declined to 3.7 per cent in May, from 3.8 per cent in April. The cost of issuing market-based debt also came down, falling to 3.6 per cent in May. While the growth rate of loans to firms moderated to 2.5 per cent in May, corporate bond issuance was stronger, growing at a rate of 3.4 per cent in annual terms.

    Credit standards for business loans were broadly unchanged in the second quarter, as reported in our latest bank lending survey for the euro area. While banks’ concerns about the economic risks faced by their customers had a tightening impact on credit standards, this was broadly offset by stronger competition among lenders. Meanwhile, firms’ demand for credit increased slightly, benefiting from lower interest rates, but they remained cautious because of global uncertainty and trade tensions.

    The average interest rate on new mortgages has barely changed since the start of the year and stood at 3.3 per cent in May. Growth in mortgage lending edged up to 2.0 per cent in May, in the context of a strong increase in demand, while credit standards tightened slightly in the second quarter.

    Conclusion

    The Governing Council today decided to keep the three key ECB interest rates unchanged. We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.

    In any case, we stand ready to adjust all of our instruments within our mandate to ensure that inflation stabilises sustainably at our medium-term target and to preserve the smooth functioning of monetary policy transmission.

    We are now ready to take your questions.

    MIL OSI Europe News –

    July 25, 2025

  • MIL-OSI: First Northwest Bancorp Reports Second Quarter 2025 Improved Profitability

    Source: GlobeNewswire (MIL-OSI)

    PORT ANGELES, Wash., July 24, 2025 (GLOBE NEWSWIRE) — First Northwest Bancorp (Nasdaq: FNWB) (“First Northwest” or the “Company”), the holding company for First Fed Bank (“First Fed” or the “Bank”), today reported net income of $3.7 million for the second quarter of 2025, compared to a net loss of $9.0 million for the first quarter of 2025 and a net loss of $2.2 million for the second quarter of 2024. Basic and diluted income per share were $0.42 for the second quarter of 2025, compared to basic and diluted loss per share of $1.03 for the first quarter of 2025 and basic and diluted loss per share of $0.25 for the second quarter of 2024. 

    In the second quarter of 2025, the Company recorded Adjusted Pre-Tax, Pre-Provision Net Revenue (“PPNR”)(1) of $2.1 million, compared to $1.5 million for the preceding quarter and $530,000 for the second quarter of 2024.

    The Board of Directors of First Northwest has elected not to declare a dividend for this quarter as part of a prudent approach to capital management. The Company remains committed to maintaining a strong balance sheet and will continue to evaluate future dividend decisions in light of the Company’s long-term strategic objectives.

    Quote from Cindy Finnie, First Northwest Board Chair:
    “As previously disclosed, the Board has begun a search process for the next full time Chief Executive Officer. We also continue to strongly dispute the allegations contained in the legal proceedings disclosed in our June 13, 2025, 8-K and intend to vigorously defend against them. Despite the volatility of the past few quarters, the Board remains focused on the strategic objectives of the Bank, building on the positive core trends from the past few quarters.”

    Quote from Geraldine Bullard, First Northwest Interim CEO:
    “Our second quarter included continued modest improvement in several important performance measures, including seven basis points of net interest margin expansion and our fifth consecutive quarter of growing Adjusted PPNR. Commercial business loan recoveries totaling $1.1 million drove a modest provision release during the quarter. The Bank continues to show core customer growth, with loans growing 3% annualized compared to the preceding quarter and total deposits only down modestly despite a $31.0 million reduction in brokered time deposits during the quarter.”

    Key Points for the Second Quarter

    Positive Trends:

    • Return on average assets increased to 0.68% for the current quarter from -1.69% in the preceding quarter.
    • Net interest margin increased to 2.83% for the current quarter compared to 2.76% in the first quarter of 2025, as a result of an increase in the yield on interest-earning assets and a decrease in the rate paid on interest-bearing liabilities.
    • Efficiency ratio improved to 78.0% for the current quarter from 113.5% in the preceding quarter due to the recognition of a payroll tax credit in the current quarter while the preceding quarter included higher expenses related to the legal reserve recorded.
    • Customer deposits increased $19.6 million to $1.55 billion at June 30, 2025 from $1.53 billion at March 31, 2025.
    • Recorded a $296,000 recapture of provision for credit losses on loans in the second quarter of 2025, compared to provisions for credit losses on loans of $7.8 million for the preceding quarter and $8.7 million for the second quarter of 2024.

    Other significant events:

    • In the second quarter of 2025, the statute of limitations expired on employee retention credit (“ERC”) payments received for the first and second quarters of 2021. As a result, the Bank recorded $2.6 million as a reduction to compensation and benefits. A related contingent ERC consulting expense of $528,000 was recorded in professional fees, partially offsetting the credit. The Bank anticipates recording the remaining reserved ERC of $2.0 million in 2028.
    • During the second quarter of 2025, the Bank consolidated the operations of its Bellevue and Fremont business centers into a new location, the Seattle business center. This consolidation resulted in a one-time increase to other expense of $599,000 for the early termination of the Bellevue business center lease and write-off of remaining leasehold improvements. No additional costs were incurred for closing the Fremont business center. The Bank estimates the consolidation will reduce annual rent expense by $130,000 going forward.
    • The Company disclosed in its Current Report on Form 8-K filed on July 21, 2025, that a settlement agreement was reached in the previously disclosed legal matter discussed in Part II, Item 1 of the Company’s Form 10-Q for the quarter ended March 31, 2025. The Bank continues to vigorously defend itself in the separate legal proceedings disclosed in the Company’s Current Report on Form 8-K filed on June 13, 2025.

    (1)  See reconciliation of Non-GAAP Financial Measures later in this release.

    Selected Quarterly Financial Ratios:

        As of or For the Quarter Ended     As of or For the Six Months
    Ended June 30,    		  
        June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     2025     2024  
    Performance ratios: (1)                                                        
    Return on average assets     0.68 %     -1.69 %     -0.51 %     -0.36 %     -0.40 %     -0.50 %     -0.17 %
    Adjusted PPNR return on average assets (2)     0.39       0.27       0.26       0.17       0.10       0.33       0.16  
    Return on average equity     10.00       -23.42       -6.92       -4.91       -5.47       -7.15       -2.26  
    Net interest margin (3)     2.83       2.76       2.73       2.70       2.76       2.80       2.76  
    Efficiency ratio (4)     78.0       113.5       92.2       100.3       72.3       96.40       79.35  
    Equity to total assets     6.82       6.75       6.89       7.13       7.17       6.82       7.17  
    Book value per common share   $ 15.85     $ 15.52     $ 16.45     $ 17.17     $ 16.81     $ 15.85     $ 16.81  
    Tangible performance ratios: (1)                                                        
    Tangible common equity to tangible assets (2)     6.76 %     6.68 %     6.83 %     7.06 %     7.10 %     6.76 %     7.10 %
    Return on average tangible common equity (2)     10.10       -23.65       -6.99       -4.96       -5.53       -7.22       -2.28  
    Tangible book value per common share (2)   $ 15.70     $ 15.36     $ 16.29     $ 17.00     $ 16.64     $ 15.70     $ 16.64  
    Capital ratios (First Fed): (5)                                                        
    Tier 1 leverage     9.2 %     9.0 %     9.4 %     9.4 %     9.4 %     9.2 %     9.4 %
    Common equity Tier 1     12.1       12.1       12.4       12.2       12.4       12.1       12.4  
    Total risk-based     13.1       13.4       13.6       13.4       13.5       13.1       13.5  
    (1 ) Performance ratios are annualized, where appropriate.
    (2 ) See reconciliation of Non-GAAP Financial Measures later in this release.
    (3 ) Net interest income divided by average interest-earning assets.
    (4 ) Total noninterest expense as a percentage of net interest income and total other noninterest income.
    (5 ) Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.
         

    Adjusted Pre-tax, Pre-Provision Net Revenue (1)

    Adjusted PPNR for the second quarter of 2025 increased $616,000 to $2.1 million, compared to $1.5 million for the preceding quarter, and increased $1.6 million from $530,000 in the second quarter one year ago.

        For the Quarter Ended     For the Six Months Ended  
    (Dollars in thousands)   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
    Net interest income (GAAP)   $ 14,193     $ 13,847     $ 14,137     $ 14,020     $ 14,235     $ 28,040     $ 28,163  
    Total noninterest income (GAAP)     2,170       3,777       1,300       1,779       7,347       5,947       9,535  
    Total revenue (GAAP)     16,363       17,624       15,437       15,799       21,582       33,987       37,698  
    Total noninterest expense (GAAP)     12,765       20,000       14,233       15,848       15,609       32,765       29,912  
    PPNR (Non-GAAP) (1)     3,598       (2,376 )     1,204       (49 )     5,973       1,222       7,786  
    Less selected nonrecurring adjustments to PPNR (Non-GAAP):                                                        
    Employee retention credit (“ERC”) included in compensation and benefits     2,640       —       —       —       —       2,640       —  
    ERC consulting expense included in professional fees     (528 )     —       —       —       —       (528 )     —  
    Costs associated with early termination of Bellevue Business Center lease included in other expense     (599 )     —       —       —       —       (599 )     —  
    Bank-owned life insurance (“BOLI”) death benefit     —       1,059       1,536       —       —       1,059       —  
    Gain on extinguishment of subordinated debt included in other income     —       846       —       —       —       846       —  
    Legal reserve     —       (5,750 )     —       —       —       (5,750 )     —  
    Equity investment repricing adjustment     —       —       (1,762 )     —       —       —       651  
    One-time compensation payouts related to reduction in force     —       —       —       (996 )     —       —       —  
    Net gain on sale of premises and equipment     —       —       —       —       7,919       —       7,919  
    Sale leaseback taxes and assessments included in occupancy and equipment     —       —       —       —       (359 )     —       (359 )
    Net loss on sale of investment securities     —       —       —       —       (2,117 )     —       (2,117 )
    Adjusted PPNR (Non-GAAP) (1)   $ 2,085     $ 1,469     $ 1,430     $ 947     $ 530     $ 3,554     $ 1,692  

    (1)  See reconciliation of Non-GAAP Financial Measures later in this release.

    • Total interest income increased $308,000 to $27.1 million for the second quarter of 2025, compared to $26.8 million for the preceding quarter, and decreased $1.5 million compared to $28.6 million in the second quarter of 2024. Interest income increased in the second quarter of 2025 primarily due to an increase in the yields earned on loans receivable, partially offset by a decrease in both the yield earned and average volume of investment securities. Average real estate and commercial business loan balances decreased while average consumer loan balances increased over the preceding quarter.
    • Total interest expense decreased $38,000 to $12.9 million for the second quarter of 2025, compared to $13.0 million for the preceding quarter, and decreased $1.4 million compared to $14.4 million in the second quarter of 2024. Interest expense decreased in the second quarter of 2025 primarily due to a reduced volume of brokered certificates of deposit (“CDs”) and decreases in interest paid on customer CDs, brokered CDs and demand deposits. These decreases were partially offset by increases in the volume and interest paid on money market and savings accounts and an increase in the rate paid on advances during the current quarter.
    • The net interest margin increased to 2.83% for the second quarter of 2025, from 2.76% for both the preceding quarter and the second quarter of 2024.
    • Noninterest income decreased $1.6 million to $2.2 million for the second quarter of 2025, from $3.8 million for the preceding quarter. The first quarter of 2025 was higher due to nonrecurring income items including a $1.1 million BOLI death benefit payment received due to the passing of a former employee and a $846,000 gain on extinguishment of debt.
    • Noninterest expense decreased $7.2 million to $12.8 million for the second quarter of 2025, compared to $20.0 million for the preceding quarter. Compensation and benefits was lower primarily due to the ERC recorded during the current quarter. Other expense for the preceding quarter included the previously disclosed $5.8 million legal reserve.

    Allowance for Credit Losses on Loans (“ACLL”) and Credit Quality

    The allowance for credit losses on loans (“ACLL”) decreased $2.2 million to $18.4 million at June 30, 2025, from $20.6 million at March 31, 2025. The ACLL as a percentage of total loans was 1.10% at June 30, 2025, a decrease from 1.24% at March 31, 2025, and from 1.14% one year earlier. A release of $2.6 million reserves on individually evaluated loans, partially offset by net loan charge-offs totaling $1.9 million and a small increase to the pooled loan reserve, resulted in a recapture of provision expense of $296,000 for the quarter ended June 30, 2025.

    Nonperforming loans totaled $20.4 million at both June 30, 2025 and March 31, 2025. Current quarter activity included an increase due to a $4.1 million commercial real estate loan transitioning into nonperforming status, large principal payments received totaling $3.6 million and charged-off balances totaling $1.3 million. ACLL to nonperforming loans decreased to 90% at June 30, 2025, from 101% at March 31, 2025, and increased from 82% at June 30, 2024. This ratio increased in the first quarter of 2025 with decreases in balances due to principal payments and charge-offs on loans with appropriate reserves.

    Classified loans decreased $663,000 to $30.9 million at June 30, 2025, from $31.6 million at March 31, 2025, primarily due to payments received of $3.2 million and commercial business loan net charge-offs totaling $1.5 million, partially offset by the downgrade of a $4.1 million commercial real estate loan that was adversely impacted by reduced cross-border traffic during the second quarter. Four collateral dependent loans totaling $23.8 million account for 77% of the classified loan balance at June 30, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in the largest of these four collateral-dependent relationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 11 loans totaling $562,000 included in classified loans at June 30, 2025, and four additional loans totaling $686,000 included in the special mention risk grading category.

        For the Quarter Ended  
    ACLL ($ in thousands)   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		  
                                             
    Balance at beginning of period   $ 20,569     $ 20,449     $ 21,970     $ 19,343     $ 17,958  
    Charge-offs:                                        
    Commercial real estate     (15 )     (5,571 )     —       —       —  
    Construction and land     —       (374 )     (411 )     —       (3,978 )
    Auto and other consumer     (273 )     (243 )     (364 )     (492 )     (832 )
    Commercial business     (2,823 )     (1,513 )     (4,596 )     (24 )     (2,643 )
    Total charge-offs     (3,111 )     (7,701 )     (5,371 )     (516 )     (7,453 )
    Recoveries:                                        
    One-to-four family     —       —       —       42       —  
    Commercial real estate     20       6       2       —       —  
    Construction and land     5       —       —       —       —  
    Auto and other consumer     74       43       52       24       198  
    Commercial business     1,084       2       36       —       —  
    Total recoveries     1,183       51       90       66       198  
    Net loan charge-offs     (1,928 )     (7,650 )     (5,281 )     (450 )     (7,255 )
    (Recapture of) provision for credit losses     (296 )     7,770       3,760       3,077       8,640  
    Balance at end of period   $ 18,345     $ 20,569     $ 20,449     $ 21,970     $ 19,343  
                                             
    Average total loans   $ 1,658,723     $ 1,662,164     $ 1,708,232     $ 1,718,402     $ 1,717,830  
    Annualized net charge-offs to average outstanding loans     0.47 %     1.87 %     1.23 %     0.10 %     1.70 %
    Asset Quality ($ in thousands)   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		  
    Nonaccrual loans:                                        
    One-to-four family   $ 2,274     $ 1,404     $ 1,477     $ 1,631     $ 1,750  
    Multi-family     —       —       —       —       708  
    Commercial real estate     4,095       4       5,598       5,634       14  
    Construction and land     13,063       15,280       19,544       19,382       19,292  
    Home equity     10       54       55       116       118  
    Auto and other consumer     410       710       700       894       746  
    Commercial business     514       2,903       3,141       2,719       1,003  
    Total nonaccrual loans     20,366       20,355       30,515       30,376       23,631  
    Other real estate owned     1,297       —       —       —       —  
    Total nonperforming assets   $ 21,663     $ 20,355     $ 30,515     $ 30,376     $ 23,631  
                                             
    Nonaccrual loans as a % of total loans (1)     1.22 %     1.23 %     1.80 %     1.75 %     1.39 %
    Nonperforming assets as a % of total assets (2)     0.99       0.94       1.37       1.35       1.07  
    ACLL as a % of total loans     1.10       1.24       1.21       1.27       1.14  
    ACLL as a % of nonaccrual loans     90.08       101.05       67.01       72.33       81.85  
    Total past due loans to total loans     1.17       1.36       1.98       1.92       1.45  
    (1 ) Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
    (2 ) Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.
         

    Financial Condition and Capital

    Investment securities decreased $11.9 million, or 3.8%, to $303.5 million at June 30, 2025, compared to $315.4 million three months earlier, and decreased $3.2 million compared to $306.7 million at June 30, 2024. Maturities totaling $11.8 million and regular principal payments totaling $5.7 million were partially offset by purchases totaling $5.5 million during the current quarter. Net unrealized losses were flat for the second quarter of 2025. The estimated average life of the securities portfolio was approximately 7.6 years at June 30, 2025, 6.9 years at the preceding quarter end and 7.8 years at the end of the second quarter of 2024. The effective duration of the portfolio was approximately 4.9 years at June 30, 2025, compared to 4.3 years at the preceding quarter end and 4.3 years at the end of the second quarter of 2024.

    Investment Securities ($ in thousands)     June 30,
    2025    		       March 31,
    2025    		       June 30,
    2024    		       Three Month
    % Change    		       One Year %
    Change    		  
    Available for Sale at Fair Value                                        
    Municipal bonds   $ 77,324     $ 78,295     $ 78,825       -1.2 %     -1.9 %
    U.S. government agency issued asset-backed securities (ABS agency)     12,298       12,643       13,982       -2.7       -12.0  
    Corporate issued asset-backed securities (ABS corporate)     13,105       15,671       16,483       -16.4       -20.5  
    Corporate issued debt securities (Corporate debt)     55,760       55,067       52,892       1.3       5.4  
    U.S. Small Business Administration securities (SBA)     7,504       8,061       9,772       -6.9       -23.2  
    Mortgage-backed securities:                                        
    U.S. government agency issued mortgage-backed securities (MBS agency)     96,014       96,642       77,301       -0.6       24.2  
    Non-agency issued mortgage-backed securities (MBS non-agency)     41,510       49,054       57,459       -15.4       -27.8  
    Total securities available for sale   $ 303,515     $ 315,433     $ 306,714       -3.8       -1.0  

    Net loans, excluding loans held for sale, increased $9.6 million, or 0.6%, to $1.65 billion at June 30, 2025, from $1.64 billion at March 31, 2025, and decreased $30.6 million, or 1.8%, from $1.68 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $6.0 million. New loan funding totaling $47.2 million and draws on existing loans totaling $23.9 million outpaced loan payoffs of $34.1 million, regular payments of $28.4 million and charge-offs totaling $2.4 million.

    Loans ($ in thousands)     June 30,
    2025    		       March 31,
    2025    		       June 30,
    2024    		       Three Month
    % Change    		       One Year %
    Change    		  
    Real Estate:                                        
    One-to-four family   $ 387,459     $ 394,428     $ 389,934       -1.8 %     -0.6 %
    Multi-family     329,696       338,147       350,076       -2.5       -5.8  
    Commercial real estate     391,362       387,312       375,511       1.0       4.2  
    Construction and land     72,538       64,877       107,273       11.8       -32.4  
    Total real estate loans     1,181,055       1,184,764       1,222,794       -0.3       -3.4  
    Consumer:                                        
    Home equity     84,927       79,151       72,613       7.3       17.0  
    Auto and other consumer     280,877       273,878       285,623       2.6       -1.7  
    Total consumer loans     365,804       353,029       358,236       3.6       2.1  
    Commercial business     117,843       119,783       117,094       -1.6       0.6  
    Total loans receivable     1,664,702       1,657,576       1,698,124       0.4       -2.0  
    Less:                                        
    Derivative basis adjustment     (860 )     (566 )     1,017       -51.9       -184.6  
    Allowance for credit losses on loans     18,345       20,569       19,343       -10.8       -5.2  
    Total loans receivable, net   $ 1,647,217     $ 1,637,573     $ 1,677,764       0.6       -1.8  

    The Bank invested $9.1 million into a new bank-owned life insurance policy in the second quarter of 2025 to replace a policy surrendered in the preceding quarter. The Bank received the return of the surrendered funds early in the third quarter of 2025.

    Total deposits decreased $11.4 million to $1.65 billion at June 30, 2025, compared to $1.67 billion at March 31, 2025, and decreased $53.7 million compared to $1.71 billion one year prior. During the second quarter of 2025, total customer deposit balances increased $19.6 million and brokered deposit balances decreased $31.0 million. Overall, the current rate environment continues to contribute to competition for deposits leading to increased volumes and higher rates paid on money market and savings accounts during the current quarter. The deposit mix compared to June 30, 2024, also reflects a shift in volume to money market and customer CD accounts while the volume and rate paid on brokered CDs decreased.

    Deposits ($ in thousands)     June 30,
    2025    		       March 31,
    2025    		       June 30,
    2024    		       Three Month
    % Change    		       One Year %
    Change    		  
    Noninterest-bearing demand deposits   $ 240,051     $ 247,890     $ 276,543       -3.2 %     -13.2 %
    Interest-bearing demand deposits     144,409       169,912       162,201       -15.0       -11.0  
    Money market accounts     484,787       424,469       423,047       14.2       14.6  
    Savings accounts     227,968       235,188       224,631       -3.1       1.5  
    Certificates of deposit, customer     450,494       450,663       398,161       0.0       13.1  
    Certificates of deposit, brokered     106,927       137,946       223,705       -22.5       -52.2  
    Total deposits   $ 1,654,636     $ 1,666,068     $ 1,708,288       -0.7       -3.1  

    Total shareholders’ equity increased to $149.7 million at June 30, 2025, compared to $146.5 million three months earlier, due to net income of $3.7 million and an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $128,000, partially offset by dividends declared of $661,000 and a decrease in the after-tax fair market values of derivatives of $197,000.

    Capital levels for both the Company and the Bank remain in excess of applicable regulatory requirements and the Bank was categorized as “well-capitalized” at June 30, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at June 30, 2025, were 12.1% and 13.1%, respectively.

    First Northwest continued to provide a return on capital to our shareholders through cash dividends during the second quarter of 2025. The Company paid cash dividends totaling $650,000 in the second quarter of 2025. No shares of common stock were repurchased under the Company’s April 2024 Stock Repurchase Plan (the “Repurchase Plan”) during the quarter ended June 30, 2025. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

    2025 Awards/Recognition
    Forbes Best-in-State Banks
                     


    About the Company
    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 17 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

    Forward-Looking Statements
    Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as “believes,” “expects,” “anticipates,” “estimates,” or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, costs of living, unemployment levels, interest rates, supply chain difficulties and inflationary pressures, among other things; legislative, regulatory, and policy changes; legal proceedings regulatory investigations and their resolutions; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled “Risk Factors,” and other filings with the Securities and Exchange Commission (“SEC”),which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.

    Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

    For More Information Contact:
    Geraldine Bullard, Interim Chief Executive Officer, Chief Operating Officer and EVP
    Phyllis Nomura, Chief Financial Officer and EVP
    IRGroup@ourfirstfed.com
    360-457-0461

       
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, except share data) (Unaudited)    		  
       
        June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		  
    ASSETS                                        
    Cash and due from banks   $ 18,487     $ 18,911     $ 16,811     $ 17,953     $ 19,184  
    Interest-earning deposits in banks     69,376       51,412       55,637       64,769       63,995  
    Investment securities available for sale, at fair value (amortized cost at each period end of $336,206, $348,249, $376,265, $341,011 and $344,941)     303,515       315,433       340,344       310,860       306,714  
    Loans held for sale     1,557       2,940       472       378       1,086  
    Loans receivable (net of allowance for credit losses on loans at each period end of $18,345, $20,569, $20,449, $21,970, and $19,343)     1,647,217       1,637,573       1,675,186       1,714,416       1,677,764  
    Federal Home Loan Bank (FHLB) stock, at cost     14,906       13,106       14,435       14,435       13,086  
    Accrued interest receivable     8,305       8,319       8,159       8,939       9,466  
    Premises and equipment, net     8,999       9,870       10,129       10,436       10,714  
    Servicing rights on sold loans, at fair value     3,220       3,301       3,281       3,584       3,740  
    Bank-owned life insurance (“BOLI”), net     41,380       31,786       41,150       41,429       41,113  
    Equity and partnership investments     14,811       15,026       13,229       14,912       15,085  
    Goodwill and other intangible assets, net     1,081       1,082       1,082       1,083       1,084  
    Deferred tax asset, net     14,266       14,304       13,738       10,802       12,216  
    Right-of-use (“ROU”) asset, net     15,772       16,687       17,001       17,315       17,627  
    Prepaid expenses and other assets     32,471       31,680       21,352       24,175       23,088  
    Total assets   $ 2,195,363     $ 2,171,430     $ 2,232,006     $ 2,255,486     $ 2,215,962  
                                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                        
    Deposits   $ 1,654,636     $ 1,666,068     $ 1,688,026     $ 1,711,641     $ 1,708,288  
    Borrowings     344,108       307,091       336,014       334,994       302,575  
    Accrued interest payable     1,514       2,163       3,295       2,153       3,143  
    Lease liability, net     16,257       17,266       17,535       17,799       18,054  
    Accrued expenses and other liabilities     27,790       29,767       31,770       25,625       23,717  
    Advances from borrowers for taxes and insurance     1,325       2,583       1,484       2,485       1,304  
    Total liabilities     2,045,630       2,024,938       2,078,124       2,094,697       2,057,081  
                                             
    Shareholders’ Equity                                        
    Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding     —       —       —       —       —  
    Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,444,963; 9,440,618; 9,353,348; 9,365,979; and 9,453,247     94       94       93       94       94  
    Additional paid-in capital     93,595       93,450       93,357       93,218       93,985  
    Retained earnings     90,506       87,506       97,198       100,660       103,322  
    Accumulated other comprehensive loss, net of tax     (28,198 )     (28,129 )     (30,172 )     (26,424 )     (31,597 )
    Unearned employee stock ownership plan (ESOP) shares     (6,264 )     (6,429 )     (6,594 )     (6,759 )     (6,923 )
    Total shareholders’ equity     149,733       146,492       153,882       160,789       158,881  
    Total liabilities and shareholders’ equity   $ 2,195,363     $ 2,171,430     $ 2,232,006     $ 2,255,486     $ 2,215,962  
       
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands, except per share data) (Unaudited)    		  
       
        For the Quarter Ended     For the Six Months Ended  
        June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
    INTEREST INCOME                                                        
    Interest and fees on loans receivable   $ 22,814     $ 22,231     $ 23,716     $ 23,536     $ 23,733     $ 45,045     $ 46,500  
    Interest on investment securities     3,466       3,803       3,658       3,786       3,949       7,269       7,581  
    Interest on deposits in banks     520       482       550       582       571       1,002       1,216  
    FHLB dividends     331       307       273       302       358       638       640  
    Total interest income     27,131       26,823       28,197       28,206       28,611       53,954       55,937  
    INTEREST EXPENSE                                                        
    Deposits     9,552       9,737       11,175       10,960       10,180       19,289       20,292  
    Borrowings     3,386       3,239       2,885       3,226       4,196       6,625       7,482  
    Total interest expense     12,938       12,976       14,060       14,186       14,376       25,914       27,774  
    Net interest income     14,193       13,847       14,137       14,020       14,235       28,040       28,163  
    PROVISION FOR CREDIT LOSSES                                                        
    (Recapture of) provision for credit losses on loans     (296 )     7,770       3,760       3,077       8,640       7,474       9,879  
    (Recapture of) provision for credit losses on unfunded commitments     (64 )     15       (105 )     57       99       (49 )     (170 )
    (Recapture of) provision for credit losses     (360 )     7,785       3,655       3,134       8,739       7,425       9,709  
    Net interest income after (recapture of) provision for credit losses     14,553       6,062       10,482       10,886       5,496       20,615       18,454  
    NONINTEREST INCOME                                                        
    Loan and deposit service fees     1,095       1,106       1,054       1,059       1,076       2,201       2,178  
    Sold loan servicing fees and servicing rights mark-to-market     92       195       (115 )     10       74       287       293  
    Net gain on sale of loans     44       11       52       58       150       55       202  
    Net loss on sale of investment securities     —       —       —       —       (2,117 )     —       (2,117 )
    Net gain on sale of premises and equipment     —       —       —       —       7,919       —       7,919  
    Increase in BOLI cash surrender value     485       372       328       315       293       857       536  
    Income from BOLI death benefit, net     —       1,059       1,536       —       —       1,059       —  
    Other income (loss)     454       1,034       (1,555 )     337       (48 )     1,488       524  
    Total noninterest income     2,170       3,777       1,300       1,779       7,347       5,947       9,535  
    NONINTEREST EXPENSE                                                        
    Compensation and benefits     4,698       7,715       7,367       8,582       8,588       12,413       16,716  
    Data processing     1,926       2,011       2,065       2,085       2,008       3,937       3,952  
    Occupancy and equipment     1,507       1,592       1,559       1,553       1,799       3,099       3,039  
    Supplies, postage, and telephone     346       298       296       360       317       644       610  
    Regulatory assessments and state taxes     501       479       460       548       457       980       970  
    Advertising     299       265       362       409       377       564       686  
    Professional fees     1,449       777       813       698       684       2,226       1,594  
    FDIC insurance premium     463       434       491       533       473       897       859  
    Other expense     1,576       6,429       820       1,080       906       8,005       1,486  
    Total noninterest expense     12,765       20,000       14,233       15,848       15,609       32,765       29,912  
    Income (loss) before provision (benefit) for income taxes     3,958       (10,161 )     (2,451 )     (3,183 )     (2,766 )     (6,203 )     (1,923 )
    Provision (benefit) for income taxes     297       (1,125 )     359       (1,203 )     (547 )     (828 )     (100 )
    Net income (loss)   $ 3,661     $ (9,036 )   $ (2,810 )   $ (1,980 )   $ (2,219 )   $ (5,375 )   $ (1,823 )
                                                             
    Basic and diluted earnings (loss) per common share   $ 0.42     $ (1.03 )   $ (0.32 )   $ (0.23 )   $ (0.25 )   $ (0.61 )   $ (0.21 )
       
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)    		  
       
    Selected Loan Detail   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		  
    Construction and land loans breakout                                        
    1-4 Family construction   $ 39,040     $ 42,371     $ 39,319     $ 43,125     $ 56,514  
    Multifamily construction     14,728       9,223       15,407       29,109       43,341  
    Nonresidential construction     12,832       7,229       16,857       17,500       1,015  
    Land and development     5,938       6,054       6,527       5,975       6,403  
    Total construction and land loans   $ 72,538     $ 64,877     $ 78,110     $ 95,709     $ 107,273  
                                             
    Auto and other consumer loans breakout                                        
    Triad Manufactured Home loans   $ 135,537     $ 134,740     $ 128,231     $ 129,600     $ 110,510  
    Woodside auto loans     127,828       118,972       117,968       126,129       131,151  
    First Help auto loans     11,221       13,012       14,283       15,971       17,427  
    Other auto loans     1,016       1,313       1,647       2,064       2,690  
    Other consumer loans     5,275       5,841       6,747       7,434       23,845  
    Total auto and other consumer loans   $ 280,877     $ 273,878     $ 268,876     $ 281,198     $ 285,623  
                                             
    Commercial business loans breakout                                        
    Northpointe Bank MPP   $ –     $ –     $ 36,230     $ 38,155     $ 9,150  
    Secured lines of credit     41,043       39,986       35,701       37,686       28,862  
    Unsecured lines of credit     2,551       2,030       1,717       1,571       1,133  
    SBA loans     6,618       6,889       7,044       7,219       7,146  
    Other commercial business loans     67,631       70,878       70,801       70,696       70,803  
    Total commercial business loans   $ 117,843     $ 119,783     $ 151,493     $ 155,327     $ 117,094  
    Loans by Collateral and Unfunded Commitments   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		  
                                             
    One-to-four family construction   $ 40,509     $ 38,221     $ 44,468     $ 51,607     $ 49,440  
    All other construction and land     36,129       30,947       34,290       45,166       58,346  
    One-to-four family first mortgage     420,847       428,081       466,046       469,053       434,840  
    One-to-four family junior liens     20,116       15,155       15,090       14,701       13,706  
    One-to-four family revolving open-end     57,502       51,832       51,481       48,459       44,803  
    Commercial real estate, owner occupied:                                        
    Health care     29,091       29,386       29,129       29,407       29,678  
    Office     19,116       19,363       17,756       17,901       19,215  
    Warehouse     7,432       9,272       14,948       11,645       14,613  
    Other     74,364       74,915       78,170       64,535       56,292  
    Commercial real estate, non-owner occupied:                                        
    Office     42,198       41,885       49,417       49,770       50,158  
    Retail     51,708       50,737       49,591       49,717       50,101  
    Hospitality     64,308       62,226       61,919       62,282       62,628  
    Other     93,505       93,549       81,640       82,573       84,428  
    Multi-family residential     330,784       339,217       333,419       354,118       350,382  
    Commercial business loans     73,403       75,628       77,381       86,904       79,055  
    Commercial agriculture and fishing loans     22,443       22,914       21,833       15,369       14,411  
    State and political subdivision obligations     369       369       369       404       405  
    Consumer automobile loans     139,992       133,209       133,789       144,036       151,121  
    Consumer loans secured by other assets     138,378       137,619       131,429       132,749       129,293  
    Consumer loans unsecured     2,508       3,051       3,658       4,411       5,209  
    Total loans   $ 1,664,702     $ 1,657,576     $ 1,695,823     $ 1,734,807     $ 1,698,124  
                                             
    Unfunded commitments under lines of credit or existing loans   $ 166,589     $ 175,100     $ 163,827     $ 166,446     $ 155,005  
       
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    NET INTEREST MARGIN ANALYSIS
    (Dollars in thousands) (Unaudited)    		  
       
        Three Months Ended June 30,  
        2025     2024  
        Average     Interest             Average     Interest          
        Balance     Earned/     Yield/     Balance     Earned/     Yield/  
        Outstanding     Paid     Rate     Outstanding     Paid     Rate  
        (Dollars in thousands)  
    Interest-earning assets:                                                
    Loans receivable, net (1) (2)   $ 1,639,236     $ 22,814       5.58 %   $ 1,698,777     $ 23,733       5.62 %
    Total investment securities     311,078       3,466       4.47       316,878       3,949       5.01  
    FHLB dividends     13,313       331       9.97       15,175       358       9.49  
    Interest-earning deposits in banks     46,807       520       4.46       41,450       571       5.54  
    Total interest-earning assets (3)     2,010,434       27,131       5.41       2,072,280       28,611       5.55  
    Noninterest-earning assets     154,145                       147,090                  
    Total average assets   $ 2,164,579                     $ 2,219,370                  
    Interest-bearing liabilities:                                                
    Interest-bearing demand deposits   $ 164,475     $ 240       0.59     $ 165,212     $ 193       0.47  
    Money market accounts     444,135       2,660       2.40       405,393       2,420       2.40  
    Savings accounts     228,901       884       1.55       227,650       915       1.62  
    Certificates of deposit, customer     451,712       4,396       3.90       400,197       4,079       4.10  
    Certificates of deposit, brokered     124,383       1,372       4.42       209,566       2,573       4.94  
    Total interest-bearing deposits (4)     1,413,606       9,552       2.71       1,408,018       10,180       2.91  
    Advances     275,176       3,041       4.43       315,375       3,801       4.85  
    Subordinated debt     34,600       345       4.00       39,465       395       4.03  
    Total interest-bearing liabilities     1,723,382       12,938       3.01       1,762,858       14,376       3.28  
    Noninterest-bearing deposits (4)     243,655                       251,442                  
    Other noninterest-bearing liabilities     50,685                       41,991                  
    Total average liabilities     2,017,722                       2,056,291                  
    Average equity     146,857                       163,079                  
    Total average liabilities and equity   $ 2,164,579                     $ 2,219,370                  
                                                     
    Net interest income           $ 14,193                     $ 14,235          
    Net interest rate spread                     2.40                       2.27  
    Net earning assets   $ 287,052                     $ 309,422                  
    Net interest margin (5)                     2.83                       2.76  
    Average interest-earning assets to average interest-bearing liabilities     116.7 %                     117.6 %                
    (1) The average loans receivable, net balances include nonaccrual loans.
    (2) Interest earned on loans receivable includes net deferred (costs) fees of ($148,000) and $34,000 for the three months ended June 30, 2025 and 2024, respectively.
    (3) Includes interest-earning deposits (cash) at other financial institutions.
    (4) Cost of all deposits, including noninterest-bearing demand deposits, was 2.31% and 2.47% for the three months ended June 30, 2025 and 2024, respectively.
    (5) Net interest income divided by average interest-earning assets.
       

    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)

    Non-GAAP Financial Measures
    This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

    Calculations Based on PPNR and Adjusted PPNR:

        For the Quarter Ended     For the Six Months Ended  
    (Dollars in thousands)   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
                                                             
    Net income (loss) (GAAP)   $ 3,661     $ (9,036 )   $ (2,810 )   $ (1,980 )   $ (2,219 )   $ (5,375 )   $ (1,823 )
    Plus: (recapture of) provision for credit losses (GAAP)     (360 )     7,785       3,655       3,134       8,739       7,425       9,709  
    Provision (benefit) for income taxes (GAAP)     297       (1,125 )     359       (1,203 )     (547 )     (828 )     (100 )
    PPNR (Non-GAAP) (1)     3,598       (2,376 )     1,204       (49 )     5,973       1,222       7,786  
    Less selected nonrecurring adjustments to PPNR (Non-GAAP):                                                        
    Employee retention credit (“ERC”) included in compensation and benefits     2,640       —       —       —       —       2,640       —  
    ERC consulting expense included in professional fees     (528 )     —       —       —       —       (528 )     —  
    Costs associated with early termination of Bellevue Business Center lease included in other expense     (599 )     —       —       —       —       (599 )     —  
    Bank-owned life insurance (“BOLI”) death benefit     —       1,059       1,536       —       —       1,059       —  
    Gain on extinguishment of subordinated debt included in other income     —       846       —       —       —       846       —  
    Legal reserve     —       (5,750 )     —       —       —       (5,750 )     —  
    Equity investment repricing adjustment     —       —       (1,762 )     —       —       —       651  
    One-time compensation payouts related to reduction in force     —       —       —       (996 )     —       —       —  
    Net gain on sale of premises and equipment     —       —       —       —       7,919       —       7,919  
    Sale leaseback taxes and assessments included in occupancy and equipment     —       —       —       —       (359 )     —       (359 )
    Net loss on sale of investment securities     —       —       —       —       (2,117 )     —       (2,117 )
    Adjusted PPNR (Non-GAAP) (1)   $ 2,085     $ 1,469     $ 1,430     $ 947     $ 530     $ 3,554     $ 1,692  
                                                             
    Average total assets (GAAP)   $ 2,164,579     $ 2,174,748     $ 2,205,502     $ 2,209,333     $ 2,219,370     $ 2,169,621     $ 2,192,779  
    GAAP Ratio:                                                        
    Return on average assets (GAAP)     0.68 %     -1.69 %     -0.51 %     -0.36 %     -0.40 %     -0.50 %     -0.17 %
    Non-GAAP Ratios:                                                        
    PPNR return on average assets (Non-GAAP) (1)     0.67 %     -0.44 %     0.22 %     -0.01 %     1.08 %     0.11 %     0.71 %
    Adjusted PPNR return on average assets (Non-GAAP) (1)     0.39 %     0.27 %     0.26 %     0.17 %     0.10 %     0.33 %     0.16 %
    (1) PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue.
       
    FIRST NORTHWEST BANCORP AND SUBSIDIARY
    ADDITIONAL INFORMATION
    (Dollars in thousands) (Unaudited)    		  
       
    Calculations Based on Tangible Common Equity:  
            
        For the Quarter Ended     For the Six Months Ended  
    (Dollars in thousands, except per share data)   June 30,
    2025    		     March 31,
    2025    		     December 31,
    2024    		     September 30,
    2024    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
                                                             
    Total shareholders’ equity   $ 149,733     $ 146,492     $ 153,882     $ 160,789     $ 158,881     $ 149,733     $ 158,881  
    Less: Goodwill and other intangible assets     1,081       1,082       1,082       1,083       1,084       1,081       1,084  
    Disallowed non-mortgage loan servicing rights     372       415       423       489       517       372       517  
    Total tangible common equity   $ 148,280     $ 144,995     $ 152,377     $ 159,217     $ 157,280     $ 148,280     $ 157,280  
                                                             
    Total assets   $ 2,195,363     $ 2,171,430     $ 2,232,006     $ 2,255,486     $ 2,215,962     $ 2,195,363     $ 2,215,962  
    Less: Goodwill and other intangible assets     1,081       1,082       1,082       1,083       1,084       1,081       1,084  
    Disallowed non-mortgage loan servicing rights     372       415       423       489       517       372       517  
    Total tangible assets   $ 2,193,910     $ 2,169,933     $ 2,230,501     $ 2,253,914     $ 2,214,361     $ 2,193,910     $ 2,214,361  
                                                             
    Average shareholders’ equity   $ 146,857     $ 156,470     $ 161,560     $ 160,479     $ 163,079     $ 151,620     $ 162,473  
    Less: Average goodwill and other intangible assets     1,081       1,082       1,083       1,084       1,085       1,082       1,085  
    Average disallowed non-mortgage loan servicing rights     415       423       489       517       489       419       485  
    Total average tangible common equity   $ 145,361     $ 154,965     $ 159,988     $ 158,878     $ 161,505     $ 150,119     $ 160,903  
                                                             
    Net income (loss)   $ 3,661     $ (9,036 )   $ (2,810 )   $ (1,980 )   $ (2,219 )   $ (5,375 )   $ (1,823 )
    Common shares outstanding     9,444,963       9,440,618       9,353,348       9,365,979       9,453,247       9,444,963       9,453,247  
    GAAP Ratios:                                                        
    Equity to total assets     6.82 %     6.75 %     6.89 %     7.13 %     7.17 %     6.82 %     7.17 %
    Return on average equity     10.00 %     -23.42 %     -6.92 %     -4.91 %     -5.47 %     -7.15 %     -2.26 %
    Book value per common share   $ 15.85     $ 15.52     $ 16.45     $ 17.17     $ 16.81     $ 15.85     $ 16.81  
    Non-GAAP Ratios:                                                        
    Tangible common equity to tangible assets (1)     6.76 %     6.68 %     6.83 %     7.06 %     7.10 %     6.76 %     7.10 %
    Return on average tangible common equity (1)     10.10 %     -23.65 %     -6.99 %     -4.96 %     -5.53 %     -7.22 %     -2.28 %
    Tangible book value per common share (1)   $ 15.70     $ 15.36     $ 16.29     $ 17.00     $ 16.64     $ 15.70     $ 16.64  
    (1 ) We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.
         

    Photos accompanying this announcement are available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/c85e4dc5-66aa-4a20-9353-c1b9da5ac869

    https://www.globenewswire.com/NewsRoom/AttachmentNg/e8d326aa-0fde-4c3c-954f-bb809e7c276c

    https://www.globenewswire.com/NewsRoom/AttachmentNg/f24035e8-5a6e-4f39-a0db-93ca11dc39d5

    https://www.globenewswire.com/NewsRoom/AttachmentNg/c29167d1-36df-44c1-9e51-889b5be4fb96

    https://www.globenewswire.com/NewsRoom/AttachmentNg/ae6ceb7f-9f7a-4a77-b835-146a0638be30

    https://www.globenewswire.com/NewsRoom/AttachmentNg/5ba4f507-769e-4e54-acdb-4aed9253c967

    https://www.globenewswire.com/NewsRoom/AttachmentNg/66e51144-1d2d-4c3f-ae91-2192cc90a887

    The MIL Network –

    July 24, 2025

  • MIL-OSI: Univest Financial Corporation Reports Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (UVSP – ER)

     
    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    June 30, 2025
    (Dollars in thousands)                                    
                                         
    Balance Sheet (Period End)   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24                
    ASSETS                                    
    Cash and due from banks   $ 76,624     $ 73,319     $ 75,998     $ 78,346     $ 66,808                  
    Interest-earning deposits with other banks     83,741       95,815       252,846       426,354       124,103                  
    Cash and cash equivalents     160,365       169,134       328,844       504,700       190,911                  
    Investment securities held-to-maturity     128,455       130,889       134,111       137,681       140,112                  
    Investment securities available for sale, net of allowance for credit losses     366,421       364,503       357,361       354,100       342,776                  
    Investments in equity securities     1,801       1,667       2,506       2,406       2,995                  
    Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost     36,482       35,732       38,980       40,235       37,438                  
    Loans held for sale     17,774       13,150       16,653       17,131       28,176                  
    Loans and leases held for investment     6,801,185       6,833,037       6,826,583       6,730,734       6,684,837                  
    Less: Allowance for credit losses, loans and leases     (86,989 )     (87,790 )     (87,091 )     (86,041 )     (85,745 )                
    Net loans and leases held for investment     6,714,196       6,745,247       6,739,492       6,644,693       6,599,092                  
    Premises and equipment, net     47,140       47,175       46,671       47,411       48,174                  
    Operating lease right-of-use assets     27,278       27,182       28,531       29,260       29,985                  
    Goodwill     175,510       175,510       175,510       175,510       175,510                  
    Other intangibles, net of accumulated amortization     7,967       8,061       8,309       7,158       7,701                  
    Bank owned life insurance     140,086       139,482       139,351       138,744       137,823                  
    Accrued interest and other assets     115,581       117,435       112,098       106,708       114,753                  
    Total assets   $ 7,939,056     $ 7,975,167     $ 8,128,417     $ 8,205,737     $ 7,855,446                  
                                         
    LIABILITIES                                    
    Noninterest-bearing deposits   $ 1,461,189     $ 1,433,995     $ 1,414,635     $ 1,323,953     $ 1,397,308                  
    Interest-bearing deposits:     5,121,471       5,224,503       5,344,624       5,530,195       5,098,014                  
    Total deposits     6,582,660       6,658,498       6,759,259       6,854,148       6,495,322                  
    Short-term borrowings     6,271       4,031       11,181       8,256       11,781                  
    Long-term debt     200,000       175,000       225,000       225,000       250,000                  
    Subordinated notes     149,511       149,386       149,261       149,136       149,011                  
    Operating lease liabilities     30,106       30,062       31,485       32,246       33,015                  
    Accrued expenses and other liabilities     53,775       54,718       64,930       59,880       62,180                  
    Total liabilities     7,022,323       7,071,695       7,241,116       7,328,666       7,001,309                  
                                         
    SHAREHOLDERS’ EQUITY                                    
    Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued     157,784       157,784       157,784       157,784       157,784                  
    Additional paid-in capital     301,640       300,634       302,829       301,262       300,166                  
    Retained earnings     555,403       541,776       525,780       512,938       500,482                  
    Accumulated other comprehensive loss, net of tax benefit     (34,969 )     (37,922 )     (43,992 )     (41,623 )     (54,124 )                
    Treasury stock, at cost     (63,125 )     (58,800 )     (55,100 )     (53,290 )     (50,171 )                
    Total shareholders’ equity     916,733       903,472       887,301       877,071       854,137                  
    Total liabilities and shareholders’ equity   $ 7,939,056     $ 7,975,167     $ 8,128,417     $ 8,205,737     $ 7,855,446                  
                                         
                                         
        For the three months ended,   For the six months ended,
    Balance Sheet (Average)   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24   06/30/25   06/30/24
    Assets     7,979,475     $ 7,981,043     $ 8,163,347     $ 8,005,265     $ 7,721,540     $ 7,980,254     $ 7,709,058  
    Investment securities, net of allowance for credit losses     497,214       500,078       500,748       493,334       493,140       498,638       497,061  
    Loans and leases, gross     6,846,938       6,856,503       6,758,649       6,730,791       6,640,536       6,851,694       6,608,950  
    Deposits     6,633,250       6,617,653       6,804,483       6,641,324       6,353,752       6,625,494       6,328,804  
    Shareholders’ equity     908,536       896,811       880,237       864,406       844,572       902,706       843,559  
                                 
    Univest Financial Corporation
    Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
    June 30, 2025
    (Dollars in thousands)                                    
                                         
    Summary of Major Loan and Lease Categories (Period End)   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24                
    Commercial, financial and agricultural   $ 1,052,246     $ 1,034,361     $ 1,037,835     $ 1,044,043     $ 1,055,332                  
    Real estate-commercial     3,485,615       3,546,402       3,530,451       3,442,083       3,373,889                  
    Real estate-construction     302,424       281,785       274,483       285,616       313,229                  
    Real estate-residential secured for business purpose     535,210       536,082       536,095       530,674       532,628                  
    Real estate-residential secured for personal purpose     984,166       992,767       994,972       969,562       952,665                  
    Real estate-home equity secured for personal purpose     195,014       189,119       186,836       182,901       179,150                  
    Loans to individuals     14,069       16,930       21,250       26,794       26,430                  
    Lease financings     232,441       235,591       244,661       249,061       251,514                  
    Total loans and leases held for investment, net of deferred income     6,801,185       6,833,037       6,826,583       6,730,734       6,684,837                  
    Less: Allowance for credit losses, loans and leases     (86,989 )     (87,790 )     (87,091 )     (86,041 )     (85,745 )                
    Net loans and leases held for investment   $ 6,714,196     $ 6,745,247     $ 6,739,492     $ 6,644,693     $ 6,599,092          
                                 
                                 
    Asset Quality Data (Period End)   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24        
    Nonaccrual loans and leases, including nonaccrual loans held for sale   $ 27,909     $ 11,126     $ 12,667     $ 15,319     $ 16,200          
    Accruing loans and leases 90 days or more past due     125       322       321       310       205          
    Total nonperforming loans and leases     28,034       11,448       12,988       15,629       16,405          
    Other real estate owned     22,471       22,433       20,141       20,915       20,007          
    Repossessed assets     80       79       76       79       149          
    Total nonperforming assets   $ 50,585     $ 33,960     $ 33,205     $ 36,623     $ 36,561          
    Nonaccrual loans and leases / Loans and leases held for investment     0.41 %     0.16 %     0.19 %     0.23 %     0.24 %        
    Nonperforming loans and leases / Loans and leases held for investment     0.41 %     0.17 %     0.19 %     0.23 %     0.25 %        
    Nonperforming assets / Total assets     0.64 %     0.43 %     0.41 %     0.45 %     0.47 %        
                                 
    Allowance for credit losses, loans and leases   $ 86,989     $ 87,790     $ 87,091     $ 86,041     $ 85,745          
    Allowance for credit losses, loans and leases / Loans and leases held for investment     1.28 %     1.28 %     1.28 %     1.28 %     1.28 %        
    Allowance for credit losses, loans and leases / Nonaccrual loans and leases     311.69 %     789.05 %     687.54 %     561.66 %     529.29 %        
    Allowance for credit losses, loans and leases / Nonperforming loans and leases     310.30 %     766.86 %     670.55 %     550.52 %     522.68 %        
                                 
                                 
        For the three months ended,   For the six months ended,
        06/30/25   03/31/25   12/31/24   09/30/24   06/30/24   06/30/25   06/30/24
    Net loan and lease charge-offs   $ 7,807     $ 1,686     $ 767     $ 820     $ 809     $ 9,493     $ 2,215  
    Net loan and lease charge-offs (annualized)/Average loans and leases     0.46 %     0.10 %     0.05 %     0.05 %     0.05 %     0.28 %     0.07 %
                                 
    Univest Financial Corporation  
    Consolidated Selected Financial Data (Unaudited)  
    June 30, 2025  
    (Dollars in thousands, except per share data)                              
        For the three months ended,   For the six months ended,  
    For the period:   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24   06/30/25   06/30/24  
    Interest income   $ 105,706   $ 103,416   $ 107,476   $ 106,438   $ 99,832   $ 209,122   $ 198,441  
    Interest expense     46,165     46,635     52,004     53,234     48,805     92,800     95,947  
    Net interest income     59,541     56,781     55,472     53,204     51,027     116,322     102,494  
    Provision for credit losses     5,694     2,311     2,380     1,414     707     8,005     2,139  
    Net interest income after provision for credit losses     53,847     54,470     53,092     51,790     50,320     108,317     100,355  
    Noninterest income:                              
    Trust fee income     2,146     2,161     2,265     2,110     2,008     4,307     4,116  
    Service charges on deposit accounts     2,258     2,194     2,192     2,037     1,982     4,452     3,853  
    Investment advisory commission and fee income     5,460     5,613     5,457     5,319     5,238     11,073     10,432  
    Insurance commission and fee income     5,261     6,889     4,743     5,238     5,167     12,150     12,368  
    Other service fee income     3,147     2,707     3,473     1,815     3,044     5,854     9,459  
    Bank owned life insurance income     1,012     1,959     1,012     921     1,086     2,971     1,928  
    Net gain on sales of investment securities     –     –     –     18     –     –     –  
    Net gain on mortgage banking activities     981     647     1,320     1,296     1,710     1,628     2,649  
    Other income     1,236     245     868     1,396     745     1,481     1,770  
    Total noninterest income     21,501     22,415     21,330     20,150     20,980     43,916     46,575  
    Noninterest expense:                              
    Salaries, benefits and commissions     31,536     30,826     31,518     30,702     30,187     62,362     61,525  
    Net occupancy     2,739     2,853     2,751     2,723     2,679     5,592     5,551  
    Equipment     1,043     1,122     1,147     1,107     1,088     2,165     2,199  
    Data processing     4,408     4,364     4,146     4,154     4,161     8,772     8,656  
    Professional fees     1,597     1,797     1,669     1,579     1,466     3,394     3,154  
    Marketing and advertising     498     353     552     490     715     851     1,131  
    Deposit insurance premiums     1,074     1,151     1,102     1,097     1,098     2,225     2,233  
    Intangible expenses     131     130     155     164     188     261     375  
    Other expense     7,306     6,732     7,618     6,536     7,126     14,038     13,958  
    Total noninterest expense     50,332     49,328     50,658     48,552     48,708     99,660     98,782  
    Income before taxes     25,016     27,557     23,764     23,388     22,592     52,573     48,148  
    Income tax expense     5,038     5,162     4,823     4,810     4,485     10,200     9,736  
    Net income   $ 19,978   $ 22,395   $ 18,941   $ 18,578   $ 18,107   $ 42,373   $ 38,412  
    Net income per share:                              
    Basic   $ 0.69   $ 0.77   $ 0.65   $ 0.64   $ 0.62   $ 1.46   $ 1.31  
    Diluted   $ 0.69   $ 0.77   $ 0.65   $ 0.63   $ 0.62   $ 1.45   $ 1.30  
    Dividends declared per share   $ 0.22   $ 0.21   $ 0.21   $ 0.21   $ 0.21   $ 0.43   $ 0.42  
    Weighted average shares outstanding     28,859,348     29,000,567     29,070,039     29,132,948     29,246,977     28,929,123     29,330,488  
    Period end shares outstanding     28,810,805     28,962,648     29,045,877     29,081,108     29,190,640     28,810,805     29,190,640  
     
    Univest Financial Corporation
    Consolidated Selected Financial Data (Unaudited)
    June 30, 2025
                                 
                                 
                                 
        For the three months ended,   For the six months ended,
    Profitability Ratios (annualized)   06/30/25   03/31/25   12/31/24   09/30/24   06/30/24   06/30/25   06/30/24
                                 
    Return on average assets     1.00 %     1.14 %     0.92 %     0.92 %     0.94 %     1.07 %     1.00 %
    Return on average shareholders’ equity     8.82 %     10.13 %     8.56 %     8.55 %     8.62 %     9.47 %     9.16 %
    Return on average tangible common equity (1)(3)     11.02 %     12.69 %     10.79 %     10.84 %     11.01 %     11.84 %     11.69 %
    Net interest margin (FTE)     3.20 %     3.09 %     2.88 %     2.82 %     2.84 %     3.14 %     2.86 %
    Efficiency ratio (2)     61.6 %     61.6 %     65.5 %     65.7 %     67.1 %     61.6 %     65.8 %
                                 
    Capitalization Ratios                            
                                 
    Dividends declared to net income     31.8 %     27.2 %     32.2 %     33.0 %     33.9 %     29.4 %     32.1 %
    Shareholders’ equity to assets (Period End)     11.55 %     11.33 %     10.92 %     10.69 %     10.87 %     11.55 %     10.87 %
    Tangible common equity to tangible assets (1)     9.52 %     9.31 %     8.92 %     8.71 %     8.81 %     9.52 %     8.81 %
    Common equity book value per share   $ 31.82     $ 31.19     $ 30.55     $ 30.16     $ 29.26     $ 31.82     $ 29.26  
    Tangible common equity book value per share (1)   $ 25.66     $ 25.06     $ 24.43     $ 24.05     $ 23.17     $ 25.66     $ 23.17  
                                 
    Regulatory Capital Ratios (Period End)                            
    Tier 1 leverage ratio     9.94 %     9.80 %     9.51 %     9.53 %     9.74 %     9.94 %     9.74 %
    Common equity tier 1 risk-based capital ratio     11.19 %     10.97 %     10.85 %     10.88 %     10.72 %     11.19 %     10.72 %
    Tier 1 risk-based capital ratio     11.19 %     10.97 %     10.85 %     10.88 %     10.72 %     11.19 %     10.72 %
    Total risk-based capital ratio     14.58 %     14.35 %     14.19 %     14.27 %     14.09 %     14.58 %     14.09 %
                                 
    (1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
    (2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
    (3) Net income before amortization of intangibles to average tangible common equity.
       
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
        For the Three Months Ended,      
    Tax Equivalent Basis June 30, 2025   March 31, 2025  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 131,391   $ 1,371 4.19 % $ 119,997   $ 1,360 4.60 %
    Obligations of state and political subdivisions*   –     – –     879     4 1.85  
    Other debt and equity securities   497,214     3,962 3.20     499,199     4,019 3.27  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   36,711     671 7.33     37,561     687 7.42  
    Total interest-earning deposits, investments and other interest-earning assets   665,316     6,004 3.62     657,636     6,070 3.74  
                     
    Commercial, financial, and agricultural loans   1,005,784     17,686 7.05     990,860     17,020 6.97  
    Real estate—commercial and construction loans   3,692,262     54,165 5.88     3,704,232     52,676 5.77  
    Real estate—residential loans   1,727,381     21,772 5.06     1,729,146     21,542 5.05  
    Loans to individuals   15,575     337 8.68     19,438     393 8.20  
    Tax-exempt loans and leases   228,856     2,966 5.20     230,133     2,861 5.04  
    Lease financings   177,080     3,192 7.23     182,694     3,240 7.19  
    Gross loans and leases   6,846,938     100,118 5.86     6,856,503     97,732 5.78  
    Total interest-earning assets   7,512,254     106,122 5.67     7,514,139     103,802 5.60  
    Cash and due from banks   55,335           56,690        
    Allowance for credit losses, loans and leases   (88,127 )         (87,822 )      
    Premises and equipment, net   47,299           46,852        
    Operating lease right-of-use assets   26,948           27,761        
    Other assets   425,766           423,423        
    Total assets $ 7,979,475         $ 7,981,043        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,216,909   $ 7,800 2.57 % $ 1,222,012   $ 7,075 2.35 %
    Money market savings   1,754,428     16,945 3.87     1,840,194     18,035 3.97  
    Regular savings   700,762     749 0.43     702,543     763 0.44  
    Time deposits   1,541,008     16,261 4.23     1,476,495     16,106 4.42  
    Total time and interest-bearing deposits   5,213,107     41,755 3.21     5,241,244     41,979 3.25  
                     
    Short-term borrowings   5,254     1 0.08     6,909     14 0.82  
    Long-term debt   200,549     2,128 4.26     217,500     2,361 4.40  
    Subordinated notes   149,444     2,281 6.12     149,319     2,281 6.20  
    Total borrowings   355,247     4,410 4.98     373,728     4,656 5.05  
    Total interest-bearing liabilities   5,568,354     46,165 3.33     5,614,972     46,635 3.37  
    Noninterest-bearing deposits   1,420,143           1,376,409        
    Operating lease liabilities   29,802           30,675        
    Accrued expenses and other liabilities   52,640           62,176        
    Total liabilities   7,070,939           7,084,232        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   6,988,497     2.65     6,991,381     2.71  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   301,016           302,653        
    Retained earnings and other equity   449,736           436,374        
    Total shareholders’ equity   908,536           896,811        
    Total liabilities and shareholders’ equity $ 7,979,475         $ 7,981,043        
    Net interest income   $ 59,957       $ 57,167    
                     
    Net interest spread     2.34       2.23  
    Effect of net interest-free funding sources     0.86       0.86  
    Net interest margin     3.20 %     3.09 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   134.91 %         133.82 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $689 thousand and $554 thousand for the three months ended June 30, 2025 and March 31, 2025, respectively.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and March 31, 2025 have been calculated using the Corporation’s federal applicable rate of 21.0%.  
                     
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
        For the Three Months Ended June 30,      
    Tax Equivalent Basis 2025   2024  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 131,391   $ 1,371 4.19 % $ 84,546   $ 1,108 5.27 %
    Obligations of state and political subdivisions*   –     – –     1,269     7 2.22  
    Other debt and equity securities   497,214     3,962 3.20     491,871     3,741 3.06  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   36,711     671 7.33     37,286     700 7.55  
    Total interest-earning deposits, investments and other interest-earning assets   665,316     6,004 3.62     614,972     5,556 3.63  
                     
    Commercial, financial, and agricultural loans   1,005,784     17,686 7.05     983,615     17,447 7.13  
    Real estate—commercial and construction loans   3,692,262     54,165 5.88     3,549,206     50,577 5.73  
    Real estate—residential loans   1,727,381     21,772 5.06     1,660,489     20,413 4.94  
    Loans to individuals   15,575     337 8.68     26,821     542 8.13  
    Tax-exempt loans and leases   228,856     2,966 5.20     230,495     2,476 4.32  
    Lease financings   177,080     3,192 7.23     189,910     3,105 6.58  
    Gross loans and leases   6,846,938     100,118 5.86     6,640,536     94,560 5.73  
    Total interest-earning assets   7,512,254     106,122 5.67     7,255,508     100,116 5.55  
    Cash and due from banks   55,335           56,387        
    Allowance for credit losses, loans and leases   (88,127 )         (86,293 )      
    Premises and equipment, net   47,299           48,725        
    Operating lease right-of-use assets   26,948           30,344        
    Other assets   425,766           416,869        
    Total assets $ 7,979,475         $ 7,721,540        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,216,909   $ 7,800 2.57 % $ 1,094,150   $ 7,311 2.69 %
    Money market savings   1,754,428     16,945 3.87     1,692,759     19,131 4.55  
    Regular savings   700,762     749 0.43     759,960     929 0.49  
    Time deposits   1,541,008     16,261 4.23     1,422,113     16,134 4.56  
    Total time and interest-bearing deposits   5,213,107     41,755 3.21     4,968,982     43,505 3.52  
                     
    Short-term borrowings   5,254     1 0.08     29,506     242 2.30  
    Long-term debt   200,549     2,128 4.26     250,000     2,777 4.47  
    Subordinated notes   149,444     2,281 6.12     148,943     2,281 6.16  
    Total borrowings   355,247     4,410 4.98     428,449     5,300 4.98  
    Total interest-bearing liabilities   5,568,354     46,165 3.33     5,397,431     48,805 3.64  
    Noninterest-bearing deposits   1,420,143           1,384,770        
    Operating lease liabilities   29,802           33,382        
    Accrued expenses and other liabilities   52,640           61,385        
    Total liabilities   7,070,939           6,876,968        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   6,988,497     2.65     6,782,201     2.89  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   301,016           299,426        
    Retained earnings and other equity   449,736           387,362        
    Total shareholders’ equity   908,536           844,572        
    Total liabilities and shareholders’ equity $ 7,979,475         $ 7,721,540        
    Net interest income   $ 59,957       $ 51,311    
                     
    Net interest spread     2.34       1.91  
    Effect of net interest-free funding sources     0.86       0.93  
    Net interest margin     3.20 %     2.84 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   134.91 %         134.43 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $689 thousand and $698 thousand for the three months ended June 30, 2025 and 2024, respectively.  
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.
       
    Univest Financial Corporation  
    Average Balances and Interest Rates (Unaudited)  
        For the Six Months Ended June 30,    
    Tax Equivalent Basis 2025   2024  
      Average Income/ Average   Average Income/ Average  
    (Dollars in thousands) Balance Expense Rate   Balance Expense Rate  
    Assets:                
    Interest-earning deposits with other banks $ 125,725   $ 2,731 4.38 % $ 102,696   $ 2,717 5.32 %
    Obligations of state and political subdivisions*   437     4 1.85     1,610     19 2.37  
    Other debt and equity securities   498,201     7,981 3.23     495,451     7,388 3.00  
    Federal Home Loan Bank, Federal Reserve Bank and other stock   37,134     1,358 7.37     38,201     1,424 7.50  
    Total interest-earning deposits, investments and other interest-earning assets   661,497     12,074 3.68     637,958     11,548 3.64  
                     
    Commercial, financial, and agricultural loans   998,363     34,706 7.01     959,132     33,970 7.12  
    Real estate—commercial and construction loans   3,698,214     106,841 5.83     3,562,174     101,218 5.71  
    Real estate—residential loans   1,728,259     43,314 5.05     1,639,339     39,968 4.90  
    Loans to individuals   17,495     730 8.41     27,068     1,090 8.10  
    Tax-exempt loans and leases   229,491     5,827 5.12     231,437     4,940 4.29  
    Lease financings   179,872     6,432 7.21     189,800     6,274 6.65  
    Gross loans and leases   6,851,694     197,850 5.82     6,608,950     187,460 5.70  
    Total interest-earning assets   7,513,191     209,924 5.63     7,246,908     199,008 5.52  
    Cash and due from banks   56,009           55,628        
    Allowance for credit losses, loans and leases   (87,975 )         (86,394 )      
    Premises and equipment, net   47,076           49,659        
    Operating lease right-of-use assets   27,352           30,733        
    Other assets   424,601           412,524        
    Total assets $ 7,980,254         $ 7,709,058        
                     
    Liabilities:                
    Interest-bearing checking deposits $ 1,219,446   $ 14,875 2.46 % $ 1,137,423   $ 15,529 2.75 %
    Money market savings   1,797,074     34,980 3.93     1,699,025     38,351 4.54  
    Regular savings   701,648     1,512 0.43     764,943     1,834 0.48  
    Time deposits   1,508,930     32,367 4.33     1,330,496     29,764 4.50  
    Total time and interest-bearing deposits   5,227,098     83,734 3.23     4,931,887     85,478 3.49  
                     
    Short-term borrowings   6,076     15 0.50     19,816     247 2.51  
    Long-term debt   208,978     4,489 4.33     271,243     5,660 4.20  
    Subordinated notes   149,382     4,562 6.16     148,881     4,562 6.16  
    Total borrowings   364,436     9,066 5.02     439,940     10,469 4.79  
    Total interest-bearing liabilities   5,591,534     92,800 3.35     5,371,827     95,947 3.59  
    Noninterest-bearing deposits   1,398,396           1,396,917        
    Operating lease liabilities   30,236           33,774        
    Accrued expenses and other liabilities   57,382           62,981        
    Total liabilities   7,077,548           6,865,499        
    Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)   6,989,930     2.68     6,768,744     2.85  
                     
    Shareholders’ Equity:                
    Common stock   157,784           157,784        
    Additional paid-in capital   301,830           300,052        
    Retained earnings and other equity   443,092           385,723        
    Total shareholders’ equity   902,706           843,559        
    Total liabilities and shareholders’ equity $ 7,980,254         $ 7,709,058        
    Net interest income   $ 117,124       $ 103,061    
                     
    Net interest spread     2.28       1.93  
    Effect of net interest-free funding sources     0.86       0.93  
    Net interest margin     3.14 %     2.86 %
    Ratio of average interest-earning assets to average interest-bearing liabilities   134.37 %         134.91 %      
                     
    * Obligations of states and political subdivisions are tax-exempt earning assets.          
    Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
    Net interest income includes net deferred costs amortization of $1.2 million for the six months ended June 30, 2025 and 2024.
    Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.
                     
    Univest Financial Corporation
    Loan Portfolio Overview (Unaudited)
    June 30, 2025
             
    (Dollars in thousands)        
    Industry Description Total Outstanding Balance   % of Commercial Loan Portfolio  
    CRE – Retail $ 453,445   8.4 %
    Animal Production   401,946   7.5  
    CRE – Multi-family   360,345   6.7  
    CRE – 1-4 Family Residential Investment   279,322   5.2  
    CRE – Office   262,374   4.9  
    Hotels & Motels (Accommodation)   222,878   4.1  
    CRE – Industrial / Warehouse   222,234   4.1  
    Specialty Trade Contractors   197,138   3.7  
    Nursing and Residential Care Facilities   167,978   3.1  
    Homebuilding (tract developers, remodelers)   154,166   2.9  
    Merchant Wholesalers, Durable Goods   140,876   2.6  
    Repair and Maintenance   135,318   2.5  
    Motor Vehicle and Parts Dealers   132,852   2.5  
    Crop Production   113,684   2.1  
    CRE – Mixed-Use – Residential   113,422   2.1  
    Wood Product Manufacturing   99,041   1.8  
    Food Services and Drinking Places   88,822   1.7  
    Real Estate Lenders, Secondary Market Financing   87,750   1.6  
    Administrative and Support Services   86,092   1.6  
    Professional, Scientific, and Technical Services   85,567   1.6  
    Merchant Wholesalers, Nondurable Goods   81,836   1.5  
    Private Equity & Special Purpose Entities (except 52592)   76,957   1.4  
    CRE – Mixed-Use – Commercial   76,067   1.4  
    Fabricated Metal Product Manufacturing   72,635   1.4  
    Amusement, Gambling, and Recreation Industries   69,971   1.3  
    Education   65,839   1.2  
    Religious Organizations, Advocacy Groups   65,568   1.2  
    Personal and Laundry Services   63,886   1.2  
    Miniwarehouse / Self-Storage   63,531   1.2  
    Food Manufacturing   53,682   1.0  
    Industries with >$50 million in outstandings $ 4,495,222   83.6 %
    Industries with <$50 million in outstandings $ 880,273   16.4 %
    Total Commercial Loans $ 5,375,495   100.0 %
             
             
    Consumer Loans and Lease Financings Total Outstanding Balance      
    Real Estate-Residential Secured for Personal Purpose   984,166      
    Real Estate-Home Equity Secured for Personal Purpose   195,014      
    Loans to Individuals   14,069      
    Lease Financings   232,441      
    Total – Consumer Loans and Lease Financings $ 1,425,690      
             
    Total $ 6,801,185      
             
    Univest Financial Corporation
    Non-GAAP Reconciliation
    June 30, 2025
     
    Non-GAAP to GAAP Reconciliation
    Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.
                               
      As of or for the three months ended,   As of or for the six months ended,
    (Dollars in thousands) 06/30/25   03/31/25   12/31/24   09/30/24   06/30/24   06/30/25   06/30/24
    Net income $ 19,978     $ 22,395     $ 18,941     $ 18,578     $ 18,107     $ 42,373     $ 38,412  
    Amortization of intangibles, net of tax   103       103       122       130       149       206       296  
    Net income before amortization of intangibles $ 20,081     $ 22,498     $ 19,063     $ 18,708     $ 18,256     $ 42,579     $ 38,708  
                               
    Shareholders’ equity $ 916,733     $ 903,472     $ 887,301     $ 877,071     $ 854,137     $ 916,733     $ 854,137  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (a)   (2,040 )     (2,104 )     (2,263 )     (2,147 )     (2,157 )     (2,040 )     (2,157 )
    Tangible common equity $ 739,183     $ 725,858     $ 709,528     $ 699,414     $ 676,470     $ 739,183     $ 676,470  
                               
    Total assets $ 7,939,056     $ 7,975,167     $ 8,128,417     $ 8,205,737     $ 7,855,446     $ 7,939,056     $ 7,855,446  
    Goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Other intangibles (a)   (2,040 )     (2,104 )     (2,263 )     (2,147 )     (2,157 )     (2,040 )     (2,157 )
    Tangible assets $ 7,761,506     $ 7,797,553     $ 7,950,644     $ 8,028,080     $ 7,677,779     $ 7,761,506     $ 7,677,779  
                               
    Average shareholders’ equity $ 908,536     $ 896,811     $ 880,237     $ 864,406     $ 844,572     $ 902,706     $ 843,559  
    Average goodwill   (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )     (175,510 )
    Average other intangibles (a)   (2,068 )     (2,162 )     (2,146 )     (2,086 )     (2,222 )     (2,114 )     (2,271 )
    Average tangible common equity $ 730,958     $ 719,139     $ 702,581     $ 686,810     $ 666,840     $ 725,082     $ 665,778  
                               
    (a) Amount does not include mortgage servicing rights

    The MIL Network –

    July 24, 2025

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

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter Performance Highlights

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

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

    Earnings Summary for the Quarter Ended June 30, 2025

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

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

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

    Earnings Summary for the Six Months Ended June 30, 2025

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

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

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

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

    Balance Sheet Highlights

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

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

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

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

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

    Loan Portfolio

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

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

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

    Commercial Real Estate Statistics

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

    Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule   Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   #
    Loans    		   Total O/S
    ($000’s
    omitted)    		   Avg O/S
    ($000’s
    omitted)    		   Avg Interest
    Rate    		   Calendar Period   #
    Loans    		   Total O/S
    ($000’s
    omitted)    		   Avg O/S
    ($000’s
    omitted)    		   Avg Interest
    Rate
                                                                         
    2025     7     $ 8,609     $ 1,230       5.29 %   2025     8     $ 14,950     $ 1,869       4.54 %
    2026     36       117,249       3,257       3.66 %   2026     20       42,310       2,115       3.67 %
    2027     70       185,157       2,645       4.41 %   2027     51       122,901       2,410       4.22 %
    2028     16       21,310       1,332       6.20 %   2028     12       10,117       843       7.14 %
    2029     6       4,924       821       7.70 %   2029     4       4,313       1,078       6.38 %
    2030+     3       6,667       2,222       3.68 %   2030+     4       1,099       275       6.04 %
    Fixed Rate     138       343,916       2,492       4.32 %   Fixed Rate     99       195,690       1,977       4.34 %
    Floating Rate     2       347       174       9.50 %   Floating Rate     —       —       —       — %
    Total     140     $ 344,263     $ 2,459       4.33 %   Total     99     $ 195,690     $ 1,977       4.34 %
                                                                         
    CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s
    omitted)    		   Avg O/S ($000’s
    omitted)    		   Avg Interest
    Rate
                                     
    2025     25     $ 33,503     $ 1,340       7.28 %
    2026     30       35,702       1,190       4.90 %
    2027     89       156,924       1,763       4.86 %
    2028     28       30,868       1,102       6.65 %
    2029     4       2,336       584       7.04 %
    2030+     15       8,999       600       6.46 %
    Fixed Rate     191       268,332       1,405       5.45 %
    Floating Rate     6       11,905       1,984       9.50 %
    Total CRE-Inv.     197     $ 280,237     $ 1,423       5.62 %
                                     

    Stabilized Multi-Family Pro Forma Stress Results

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

    Multi-Family Stabilized Rent Portfolio
    DSCR Range        # Loans      Total O/S
    ($000’s omitted)    		    % of Total
    MF
    Portfolio    		   Current
    Weighted 
    Average
    LTV    		   Projected
    Weighted 
    Average
    LTV
                                     
    < 1.0   10     $ 18,153     3 %   61 %   95 %
    1.0 < x  < 1.2   24       69,751     13 %   65 %   74 %
    1.2 < x  < 1.3   20       34,897     6 %   62 %   67 %
    1.3 < x  < 1.5   15       38,547     7 %   63 %   61 %
    1.5 < x  < 2.0   18       25,805     5 %   58 %   53 %
    x  > 2.0   12       8,537     2 %   43 %   33 %
     Total                 99     $    195,690           36 %           62 %           67 %
                                     

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

    Rental breakdown of Multi-Family portfolio

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

    Multi-Family Loan Portfolio – Loans by Rent Type
    Rent Type   # of Notes
    		   Outstanding
    Loan Balance    		   % of Total
    Multi-Family    		   Avg Loan
    Size    		   LTV   Current
    DSCR
    		   Avg #
    of Units
                ($000’s omitted)           ($000’s omitted)                        
                                                             
    Market               140     $        344,263                   64 %   $         2,459       61.8 %          1.41               11  
    Location                                                        
    Manhattan     7     $ 10,251       2 %   $ 1,464       49.4 %     1.88       14  
    Other NYC     92     $ 254,515       47 %   $ 2,766       61.7 %     1.40       10  
    Outside NYC     41     $ 79,497       15 %   $ 1,939       63.9 %     1.36       14  
                                                             
    Stabilized                  99     $        195,690                   36 %   $         1,977       61.8 %          1.44               12  
    Location                                                        
    Manhattan     7     $ 10,459       2 %   $ 1,494       48.2 %     1.71       19  
    Other NYC     81     $ 168,044       31 %   $ 2,075       62.6 %     1.42       11  
    Outside NYC     11     $ 17,187       3 %   $ 1,562       63.1 %     1.54       14  
                                                             

    Office Property Exposure

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

    Asset Quality and Allowance for Credit Losses

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

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

    Net Interest Margin

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

    About Hanover Community Bank and Hanover Bancorp, Inc.

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

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

    Non-GAAP Disclosure

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

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

    Forward-Looking Statements

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

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

               
    HANOVER BANCORP, INC.          
    STATEMENTS OF CONDITION (unaudited)
    (dollars in thousands)
                 
        June 30,   March 31,   December 31,
        2025   2025   2024
    Assets            
    Cash and cash equivalents $ 164,535     $ 160,234     $ 162,857  
    Securities-available for sale, at fair value   102,636       93,197       83,755  
    Investments-held to maturity   3,594       3,671       3,758  
    Loans held for sale   10,593       16,306       12,404  
                 
    Loans, net of deferred loan fees and costs   1,966,452       1,960,674       1,985,524  
    Less: allowance for credit losses   -21,571       -22,925       -22,779  
    Loans, net   1,944,881       1,937,749       1,962,745  
                 
    Goodwill   19,168       19,168       19,168  
    Premises & fixed assets   14,388       14,511       15,337  
    Operating lease assets   10,890       8,484       8,337  
    Other assets   41,291       38,207       43,749  
      Assets $ 2,311,976     $ 2,291,527     $ 2,312,110  
                 
    Liabilities and stockholders’ equity          
    Core deposits $ 1,439,656     $ 1,418,209     $ 1,456,513  
    Time deposits   511,625       518,229       497,770  
    Total deposits   1,951,281       1,936,438       1,954,283  
                 
    Borrowings   107,805       107,805       107,805  
    Subordinated debentures   24,716       24,702       24,689  
    Operating lease liabilities   11,565       9,144       9,025  
    Other liabilities   17,724       16,795       19,670  
      Liabilities   2,113,091       2,094,884       2,115,472  
                 
    Stockholders’ equity   198,885       196,643       196,638  
      Liabilities and stockholders’ equity $ 2,311,976     $ 2,291,527     $ 2,312,110  
                 
    HANOVER BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (dollars in thousands, except per share data)
                     
        Three Months Ended   Six Months Ended
        6/30/2025   6/30/2024   6/30/2025   6/30/2024
                     
    Interest income $ 32,049     $ 33,420     $ 64,886     $ 65,852  
    Interest expense   17,254       20,173       35,462       39,670  
      Net interest income   14,795       13,247       29,424       26,182  
    Provision for credit losses   2,357       4,040       2,957       4,340  
      Net interest income after provision for credit losses   12,438       9,207       26,467       21,842  
                     
    Loan servicing and fee income   1,083       836       2,164       1,749  
    Service charges on deposit accounts   162       114       279       210  
    Gain on sale of loans held-for-sale   2,298       2,586       4,650       5,092  
    Gain on sale of investments   –       4       –       4  
    Other operating income   18       82       200       143  
      Non-interest income   3,561       3,622       7,293       7,198  
                     
    Compensation and benefits   7,003       6,499       14,235       12,061  
    Conversion expenses   –       –       3,180       –  
    Occupancy and equipment   1,910       1,843       3,746       3,613  
    Data processing   508       495       1,101       1,013  
    Professional fees   878       717       1,665       1,535  
    Federal deposit insurance premiums   365       365       702       683  
    Other operating expenses   1,952       1,751       3,983       3,569  
      Non-interest expense   12,616       11,670       28,612       22,474  
                     
      Income before income taxes   3,383       1,159       5,148       6,566  
    Income tax expense   940       315       1,184       1,661  
                     
      Net income $ 2,443     $ 844     $ 3,964     $ 4,905  
                     
    Earnings per share (“EPS”):(1)              
    Basic $ 0.33     $ 0.11     $ 0.53     $ 0.66  
    Diluted $ 0.33     $ 0.11     $ 0.53     $ 0.66  
                     
    Average shares outstanding for basic EPS (1)(2)   7,500,871       7,399,816       7,482,307       7,388,021  
    Average shares outstanding for diluted EPS (1)(2)   7,506,584       7,449,110       7,488,226       7,438,234  
                     
    (1) Calculation includes common stock and Series A preferred stock.
    (2) Average shares outstanding before subtracting participating securities.
                     
    HANOVER BANCORP, INC.
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    QUARTERLY TREND
    (dollars in thousands, except per share data)
     
        Three Months Ended
        6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
                         
    Interest income $ 32,049     $ 32,837     $ 33,057     $ 34,113     $ 33,420  
    Interest expense   17,254       18,208       19,249       21,011       20,173  
      Net interest income   14,795       14,629       13,808       13,102       13,247  
    Provision for credit losses   2,357       600       400       200       4,040  
      Net interest income after provision for credit losses   12,438       14,029       13,408       12,902       9,207  
                         
    Loan servicing and fee income   1,083       1,081       981       960       836  
    Service charges on deposit accounts   162       117       136       123       114  
    Gain on sale of loans held-for-sale   2,298       2,352       3,014       2,834       2,586  
    Gain on sale of investments   –       –       27       –       4  
    Other operating income   18       182       29       37       82  
      Non-interest income   3,561       3,732       4,187       3,954       3,622  
                         
    Compensation and benefits   7,003       7,232       6,699       6,840       6,499  
    Conversion expenses   –       3,180       –       –       –  
    Occupancy and equipment   1,910       1,836       1,810       1,799       1,843  
    Data processing   508       593       536       547       495  
    Professional fees   878       787       782       762       717  
    Federal deposit insurance premiums   365       337       375       360       365  
    Other operating expenses   1,952       2,031       2,198       1,930       1,751  
      Non-interest expense   12,616       15,996       12,400       12,238       11,670  
                         
      Income before income taxes   3,383       1,765       5,195       4,618       1,159  
    Income tax expense   940       244       1,293       1,079       315  
                         
      Net income $ 2,443     $ 1,521     $ 3,902     $ 3,539     $ 844  
                         
    Earnings per share (“EPS”):(1)                  
    Basic $ 0.33     $ 0.20     $ 0.53     $ 0.48     $ 0.11  
    Diluted $ 0.33     $ 0.20     $ 0.52     $ 0.48     $ 0.11  
                         
    Average shares outstanding for basic EPS (1)(2)   7,500,871       7,463,537       7,427,583       7,411,064       7,399,816  
    Average shares outstanding for diluted EPS (1)(2)   7,506,584       7,469,489       7,456,471       7,436,068       7,449,110  
                         
    (1) Calculation includes common stock and Series A preferred stock.
    (2) Average shares outstanding before subtracting participating securities.
                         
    HANOVER BANCORP, INC.
    CONSOLIDATED NON-GAAP FINANCIAL INFORMATION (1)(unaudited)
    (dollars in thousands, except per share data)
                   
      Three Months Ended   Six Months Ended
      6/30/2025   6/30/2024   6/30/2025   6/30/2024
                   
    ADJUSTED NET INCOME:              
    Net income, as reported $ 2,443     $ 844     $ 3,964     $ 4,905  
    Adjustments:              
    Conversion expenses   –       –       3,180       –  
    Total adjustments, before income taxes   –       –       3,180       –  
    Adjustment for reported effective income tax rate   –       –       608       –  
    Total adjustments, after income taxes   –       –       2,572       –  
    Adjusted net income $ 2,443     $ 844     $ 6,536     $ 4,905  
    Basic earnings per share – adjusted $ 0.33     $ 0.11     $ 0.87     $ 0.66  
    Diluted earnings per share – adjusted $ 0.33     $ 0.11     $ 0.87     $ 0.66  
                   
    ADJUSTED OPERATING EFFICIENCY RATIO:              
    Operating efficiency ratio, as reported   68.73 %     69.18 %     77.93 %     67.33 %
    Adjustments:              
    Conversion expenses   0.00 %     0.00 %     -8.66 %     0.00 %
    Adjusted operating efficiency ratio   68.73 %     69.18 %     69.27 %     67.33 %
                   
    ADJUSTED RETURN ON AVERAGE ASSETS   0.44 %     0.15 %     0.59 %     0.44 %
    ADJUSTED RETURN ON AVERAGE EQUITY   4.93 %     1.77 %     6.63 %     5.20 %
    ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY   5.46 %     1.97 %     7.35 %     5.80 %
                   
    (1)  A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.
                   
    Note: Prior period information has been adjusted to conform to current period presentation.
             
    HANOVER BANCORP, INC.
    SELECTED FINANCIAL DATA (unaudited)
    (dollars in thousands)
                   
      Three Months Ended   Six Months Ended
      6/30/2025   6/30/2024   6/30/2025   6/30/2024
    Profitability:              
    Return on average assets   0.44 %     0.15 %     0.36 %     0.44 %
    Return on average equity (1)   4.93 %     1.77 %     4.02 %     5.20 %
    Return on average tangible equity (1)   5.46 %     1.97 %     4.46 %     5.80 %
    Pre-provision net revenue return on assets   1.04 %     0.94 %     0.73 %     0.99 %
    Yield on average interest-earning assets   5.98 %     6.22 %     5.99 %     6.12 %
    Cost of average interest-bearing liabilities   3.94 %     4.48 %     3.98 %     4.41 %
    Net interest rate spread (2)   2.04 %     1.74 %     2.01 %     1.71 %
    Net interest margin (3)   2.76 %     2.46 %     2.72 %     2.43 %
    Non-interest expense to average assets   2.29 %     2.11 %     2.57 %     2.03 %
    Operating efficiency ratio (4)   68.73 %     69.18 %     77.93 %     67.33 %
                   
    Average balances:              
    Interest-earning assets $ 2,148,782     $ 2,162,250     $ 2,182,757     $ 2,162,543  
    Interest-bearing liabilities   1,756,316       1,809,991       1,798,958       1,810,195  
    Loans   1,978,535       2,014,820       1,984,135       1,999,448  
    Deposits   1,838,947       1,773,205       1,878,969       1,807,924  
    Borrowings   142,733       231,473       138,224       196,950  
                   
    (1) Includes common stock and Series A preferred stock.
    (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (3) Represents net interest income divided by average interest-earning assets.
    (4) Represents non-interest expense divided by the sum of net interest income and non-interest income.
                   
    Note: Prior period information has been adjusted to conform to current period presentation.
             
    HANOVER BANCORP, INC.
    SELECTED FINANCIAL DATA (unaudited)
    (dollars in thousands, except share and per share data)
                   
      At or For the Three Months Ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024
    Asset quality:              
    Provision for credit losses – loans (1) $ 2,170     $ 600     $ 400     $ 200  
    Net (charge-offs)/recoveries   (3,524 )     (454 )     (1,027 )     (438 )
    Allowance for credit losses   21,571       22,925       22,779       23,406  
    Allowance for credit losses to total loans (2)   1.10 %     1.17 %     1.15 %     1.17 %
    Non-performing loans $ 12,651     $ 11,697     $ 16,368     $ 15,365  
    Non-performing loans/total loans   0.64 %     0.60 %     0.82 %     0.77 %
    Non-performing loans/total assets   0.55 %     0.51 %     0.71 %     0.66 %
    Allowance for credit losses/non-performing loans   170.51 %     195.99 %     139.17 %     152.33 %
                                   
    Capital (Bank only):                              
    Tier 1 Capital $ 203,322     $ 201,925     $ 201,744     $ 198,196  
    Tier 1 leverage ratio   9.29 %     8.95 %     9.13 %     8.85 %
    Common equity tier 1 capital ratio   13.16 %     13.37 %     13.32 %     12.99 %
    Tier 1 risk based capital ratio   13.16 %     13.37 %     13.32 %     12.99 %
    Total risk based capital ratio   14.41 %     14.62 %     14.58 %     14.24 %
                                   
    Equity data:                              
    Shares outstanding (3)   7,499,243       7,503,731       7,427,127       7,428,366  
    Stockholders’ equity $ 198,885     $ 196,643     $ 196,638     $ 192,339  
    Book value per share (3)   26.52       26.21       26.48       25.89  
    Tangible common equity (3)   179,495       177,239       177,220       172,906  
    Tangible book value per share (3)   23.94       23.62       23.86       23.28  
    Tangible common equity (“TCE”) ratio (3)   7.83 %     7.80 %     7.73 %     7.49 %
                   
    (1) Excludes $187 thousand, $0, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 6/30/25, 3/31/25, 12/31/24 and 9/30/24, respectively.
    (2) Calculation excludes loans held for sale.
    (3) Includes common stock and Series A preferred stock.
                   
    HANOVER BANCORP, INC.
    STATISTICAL SUMMARY
    QUARTERLY TREND
    (unaudited, dollars in thousands, except share data)
                   
      6/30/2025   3/31/2025   12/31/2024   9/30/2024
                   
    Loan distribution (1):              
    Residential mortgages $ 715,418     $ 708,649     $ 702,832     $ 719,037  
    Multifamily   539,573       535,429       550,570       557,634  
    Commercial real estate – OO   267,223       264,855       261,223       246,458  
    Commercial real estate – NOO   271,552       280,345       298,517       305,536  
    Commercial & industrial   148,907       146,050       145,457       149,853  
    Home equity   23,361       24,914       26,422       26,825  
    Consumer   418       432       503       470  
                   
    Total loans $ 1,966,452     $ 1,960,674     $ 1,985,524     $ 2,005,813  
                   
    Sequential quarter growth rate   0.29 %     -1.25 %     -1.01 %     -0.35 %
                   
    CRE concentration ratio   368 %     369 %     385 %     397 %
                   
    Loans sold during the quarter $ 46,045     $ 46,649     $ 53,499     $ 43,537  
                   
    Funding distribution:              
    Demand $ 243,664     $ 215,569     $ 211,656     $ 206,327  
    N.O.W.   655,333       698,297       692,890       621,880  
    Savings   42,860       46,275       48,885       53,024  
    Money market   497,799       458,068       503,082       572,213  
    Total core deposits   1,439,656       1,418,209       1,456,513       1,453,444  
    Time   511,625       518,229       497,770       504,100  
    Total deposits   1,951,281       1,936,438       1,954,283       1,957,544  
    Borrowings   107,805       107,805       107,805       125,805  
    Subordinated debentures   24,716       24,702       24,689       24,675  
                   
    Total funding sources $ 2,083,802     $ 2,068,945     $ 2,086,777     $ 2,108,024  
                   
    Sequential quarter growth rate – total deposits   0.77 %     -0.91 %     -0.17 %     0.80 %
                   
    Period-end core deposits/total deposits ratio   73.78 %     73.24 %     74.53 %     74.25 %
                   
    Period-end demand deposits/total deposits ratio   12.49 %     11.13 %     10.83 %     10.54 %
                   
    (1) Excluding loans held for sale
                   
    Note: Prior period information has been adjusted to conform to current period presentation.      
                   
    HANOVER BANCORP, INC.
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)(unaudited)
    (dollars in thousands, except share and per share amounts)
                       
      6/30/2025   3/31/2025   12/31/2024   9/30/2024   6/30/2024
    Tangible common equity                  
    Total equity (2) $ 198,885     $ 196,643     $ 196,638     $ 192,339     $ 190,072  
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )
    Less: core deposit intangible   (222 )     (236 )     (250 )     (265 )     (279 )
    Tangible common equity (2) $ 179,495     $ 177,239     $ 177,220     $ 172,906     $ 170,625  
                       
    Tangible common equity (“TCE”) ratio                
    Tangible common equity (2) $ 179,495     $ 177,239     $ 177,220     $ 172,906     $ 170,625  
    Total assets   2,311,976       2,291,527       2,312,110       2,327,814       2,331,098  
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )
    Less: core deposit intangible   (222 )     (236 )     (250 )     (265 )     (279 )
    Tangible assets $ 2,292,586     $ 2,272,123     $ 2,292,692     $ 2,308,381     $ 2,311,651  
    TCE ratio (2)   7.83 %     7.80 %     7.73 %     7.49 %     7.38 %
                       
    Tangible book value per share                  
    Tangible equity (2) $ 179,495     $ 177,239     $ 177,220     $ 172,906     $ 170,625  
    Shares outstanding (2)   7,499,243       7,503,731       7,427,127       7,428,366       7,402,163  
    Tangible book value per share (2) $ 23.94     $ 23.62     $ 23.86     $ 23.28     $ 23.05  
                       
    (1)  A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.
                       
    (2)  Includes common stock and Series A preferred stock.
     
    HANOVER BANCORP, INC.
    NET INTEREST INCOME ANALYSIS
    For the Three Months Ended June 30, 2025 and 2024
    (unaudited, dollars in thousands)
                                                   
      2025
    		   2024
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
                                                   
    Assets:                                              
    Interest-earning assets:                                              
    Loans $ 1,978,535     $ 29,785       6.04 %   $ 2,014,820     $ 31,124       6.21 %
    Investment securities   99,448       1,433       5.78 %     99,324       1,534       6.21 %
    Interest-earning cash   62,760       695       4.44 %     36,633       497       5.46 %
    FHLB stock and other investments   8,039       136       6.79 %     11,473       265       9.29 %
    Total interest-earning assets   2,148,782       32,049       5.98 %     2,162,250       33,420       6.22 %
    Non interest-earning assets:                                              
    Cash and due from banks   9,218                       7,979                  
    Other assets   50,164                       51,106                  
    Total assets $ 2,208,164                     $ 2,221,335                  
                                                   
    Liabilities and stockholders’ equity:                                              
    Interest-bearing liabilities:                                              
    Savings, N.O.W. and money market deposits $ 1,126,495     $ 10,649       3.79 %   $ 1,117,029     $ 12,667       4.56 %
    Time deposits   487,088       5,058       4.17 %     461,489       4,910       4.28 %
    Total savings and time deposits   1,613,583       15,707       3.90 %     1,578,518       17,577       4.48 %
    Borrowings   118,026       1,221       4.15 %     206,820       2,270       4.41 %
    Subordinated debentures   24,707       326       5.29 %     24,653       326       5.32 %
    Total interest-bearing liabilities   1,756,316       17,254       3.94 %     1,809,991       20,173       4.48 %
    Demand deposits   225,364                       194,687                  
    Other liabilities   27,615                       25,039                  
    Total liabilities   2,009,295                       2,029,717                  
    Stockholders’ equity   198,869                       191,618                  
    Total liabilities & stockholders’ equity $ 2,208,164                     $ 2,221,335                  
    Net interest rate spread                   2.04 %                     1.74 %
    Net interest income/margin         $ 14,795       2.76 %           $ 13,247       2.46 %
                                                   
    HANOVER BANCORP, INC.
    NET INTEREST INCOME ANALYSIS
    For the Six Months Ended June 30, 2025 and 2024
    (unaudited, dollars in thousands)
                                                   
      2025
    		   2024
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
                                                   
    Assets:                                              
    Interest-earning assets:                                              
    Loans $ 1,984,135     $ 59,769       6.07 %   $ 1,999,448     $ 60,861       6.12 %
    Investment securities   92,681       2,619       5.70 %     97,085       2,991       6.20 %
    Interest-earning cash   97,914       2,177       4.48 %     55,652       1,511       5.46 %
    FHLB stock and other investments   8,027       321       8.06 %     10,358       489       9.49 %
    Total interest-earning assets   2,182,757       64,886       5.99 %     2,162,543       65,852       6.12 %
    Non interest-earning assets:                                              
    Cash and due from banks   9,360                       7,962                  
    Other assets   49,930                       50,523                  
    Total assets $ 2,242,047                     $ 2,221,028                  
                                                   
    Liabilities and stockholders’ equity:                                              
    Interest-bearing liabilities:                                              
    Savings, N.O.W. and money market deposits $ 1,171,711     $ 22,104       3.80 %   $ 1,139,111     $ 25,600       4.52 %
    Time deposits   489,023       10,378       4.28 %     474,134       9,872       4.19 %
    Total savings and time deposits   1,660,734       32,482       3.94 %     1,613,245       35,472       4.42 %
    Borrowings   113,524       2,328       4.14 %     172,304       3,546       4.14 %
    Subordinated debentures   24,700       652       5.32 %     24,646       652       5.32 %
    Total interest-bearing liabilities   1,798,958       35,462       3.98 %     1,810,195       39,670       4.41 %
    Demand deposits   218,235                       194,679                  
    Other liabilities   26,179                       26,499                  
    Total liabilities   2,043,372                       2,031,373                  
    Stockholders’ equity   198,675                       189,655                  
    Total liabilities & stockholders’ equity $ 2,242,047                     $ 2,221,028                  
    Net interest rate spread                   2.01 %                     1.71 %
    Net interest income/margin         $ 29,424       2.72 %           $ 26,182       2.43 %
                                                   

    The MIL Network –

    July 24, 2025
1 2 3 … 10
Next Page→
NewzIntel.com

NewzIntel.com

MIL Open Source Intelligence

  • Blog
  • About
  • FAQs
  • Authors
  • Events
  • Shop
  • Patterns
  • Themes

Twenty Twenty-Five

Designed with WordPress