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

Source: United Nations 2

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

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

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

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

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

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

Worldwide impacts

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

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

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

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

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

Policy recommendations

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

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

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

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

MIL OSI United Nations News –

July 23, 2025

MIL-OSI: Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million

Source: GlobeNewswire (MIL-OSI)

Quarterly EPS Increases 22% to $0.90 from $0.74 One Year Ago
Quarterly Net Interest Margin Increases to 3.80%
Quarterly Return on Average Assets Increases to 1.47%
Quarterly Return on Average Equity Increases to 11.23%
Announces New Stock Repurchase Program

HOQUIAM, Wash., July 22, 2025 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.10 million, or $0.90 per diluted common share for the quarter ended June 30, 2025. This compares to net income of $6.76 million, or $0.85 per diluted common share for the preceding quarter and $5.92 million, or $0.74 per diluted common share, for the comparable quarter one year ago.

For the first nine months of fiscal 2025, Timberland’s net income increased 16% to $20.72 million, or $2.60 per diluted common share, from $17.93 million, or $2.21 per diluted common share for the first nine months of fiscal 2024.

“Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth,” stated Dean Brydon, Chief Executive Officer. “Net income and earnings per share increased 20% and 22%, respectively, compared to the third fiscal quarter a year ago. Compared to the prior quarter, net income and earnings per share increased 5% and 6%, respectively, primarily due to higher net interest income and non-interest income. We also posted year-over-year improvements across all key profitability metrics, and our tangible book value per share (non-GAAP) continued its upward trend. Looking ahead we believe our strong capital position, solid earnings, and continued focus on disciplined growth position us well to navigate the current environment and drive long-term shareholder value.”

“As a result of Timberland’s strong earnings and sound capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.26 per share, payable on August 22, 2025, to shareholders of record on August 8, 2025,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 51st consecutive quarter Timberland will have paid a cash dividend. In addition, the Company also announced the adoption of a new stock repurchase program. We believe Timberland stock presents a strong investment opportunity, and buying back shares is a strategy to enhance long-term value for shareholders. Under the new repurchase program, the Company may repurchase up to 5% of the outstanding shares, or 393,842 shares. The new stock repurchase program replaces our existing stock repurchase program, which had 31,762 shares available to be repurchased.”

“Our net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%,” said Marci Basich, Chief Financial Officer. “This represents a one basis point increase from the prior quarter and a 27 basis point improvement compared to the same period last year, reflecting our disciplined asset-liability management and favorable shift in earning asset yields. Total deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit. This growth highlights the continued strength of our customer relationships and the effectiveness of our deposit-gathering strategies. We remain focused on maintaining a well-balanced funding mix while sustaining stable margin performance going forward.”

“The loan portfolio continues to expand at a steady pace, with growth of 2% over the prior quarter and 3% year-over year,” Brydon continued. “Credit quality remains an area we are monitoring closely, as we are seeing a mix of stable-to-positive trends alongside a few metrics that have shown modest deterioration. Net charge-offs continue to be minimal, with net recoveries of $1,000 during the third quarter. Our non-performing assets (“NPA”) ratio increased to 0.21% at June 30, 2025, compared to 0.13% at the end of the prior quarter. However, it remains a slight improvement from the 0.22% reported a year ago. Although non-accrual loans increased this quarter primarily due to a single matured loan, total non-accrual balances remain modestly below year-ago levels.”

Earnings and Balance Sheet Highlights (at or for the periods ended June 30, 2025, compared to June 30, 2024, or March 31, 2025):

Earnings Highlights:

Earnings per diluted common share (“EPS”) increased 6% to $0.90 for the current quarter from $0.85 for the preceding quarter and increased 22% from $0.74 for the comparable quarter one year ago; EPS increased 18% to $2.60 for the first nine months of fiscal 2025 from $2.21 for the first nine months of fiscal 2024;
Net income increased 5% to $7.10 million for the current quarter from $6.76 million for the preceding quarter and increased 20% from $5.92 million for the comparable quarter one year ago; Net income increased 16% to $20.72 million for the first nine months of fiscal 2025 from $17.93 million for the first nine months of fiscal 2024;
Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.23% and 1.47%, respectively;
Net interest margin (“NIM”) for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago; and
The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago.

Balance Sheet Highlights:

Total assets increased 1% from the prior quarter and increased 3% year-over-year;
Net loans receivable increased 2% from the prior quarter and increased 3% year-over-year;
Total deposits increased 1% from the prior quarter and increased 3% year-over-year;
Total shareholders’ equity increased 2% from the prior quarter and increased 6% year-over-year; 34,236 shares of common stock were repurchased during the current quarter for $1.02 million;
Non-performing assets to total assets ratio was 0.21% at June 30, 2025 compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024;
Book and tangible book (non-GAAP) values per common share increased to $32.58 and $30.62 respectively, at June 30, 2025; and
Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2025 with only $20 million in borrowings and additional secured borrowing line capacity of $674 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.

Operating Results

Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter increased 3% to $20.50 million from $19.90 million for the preceding quarter and increased 9% from $18.77 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increases in total interest and dividend income and non-interest income, which were partially offset by an increase in total funding costs. Operating revenue increased 8% to $60.06 million for the first nine months of fiscal 2025 from $55.82 million for the first nine months of fiscal 2024, primarily due to an increase in total interest and dividend income, which was partially offset by an increase in funding costs.

Net interest income increased $409,000, or 2%, to $17.62 million for the current quarter from $17.21 million for the preceding quarter and increased $1.64 million, or 10%, from $15.98 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $20.80 million increase in the average balance of total interest-earning assets and, to a lesser extent, a two-basis point increase in the weighted average yield on total interest-earning assets to 5.50% from 5.48%. These increases were partially offset by a $20.21 million increase in the average balance of interest-bearing liabilities and a two-basis point increase in the weighted average cost of interest-bearing liabilities. Timberland’s NIM for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately four basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $68,000 of the fair value discount on acquired loans. The NIM for the preceding quarter was increased by approximately five basis points due to the collection of $201,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $17,000 of the fair value discount on acquired loans. The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $124,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $9,000 of the fair value discount on acquired loans. Net interest income for the first nine months of fiscal 2025 increased $4.19 million, or 9%, to $51.81 million from $47.62 million for the first nine months of fiscal 2024, primarily due to a 32 basis point increase in the weighted average yield of total interest-earning assets to 5.49% from 5.17% and a $49.96 million increase in the average balance of total interest-earning assets. These increases to net interest income were partially offset by a seven basis point increase in the weighted average cost of interest-bearing liabilities to 2.53% from 2.46% and a $58.86 million increase in the average balance of total interest-bearing liabilities. Timberland’s NIM expanded to 3.74% for the first nine months of fiscal 2025 from 3.53% for the first nine months of fiscal 2024.

A $351,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2025. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $237,000 provision for credit losses on loans for the preceding quarter and a $264,000 provision for credit losses on loans for the comparable quarter one year ago. In addition, a $93,000 provision for credit losses on unfunded commitments and a $4,000 recapture of credit losses on investment securities were recorded for the current quarter.

Non-interest income increased $188,000, or 7%, to $2.88 million for the current quarter from $2.69 million for the preceding quarter and increased $84,000, or 3%, from $2.79 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to an increase in ATM and debit card interchange transaction fees and smaller changes in several other categories. Fiscal year-to-date non-interest income increased by 1%, to $8.26 million from $8.20 million for the first nine months of fiscal 2024.

Total operating (non-interest) expenses for the current quarter decreased $27,000 (less than 1%), to $11.17 million from $11.19 million for the preceding quarter and increased $98,000, or 1%, from $11.07 million for the comparable quarter one year ago. The decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salaries and employee benefits, premises and equipment, technology and communications, professional fees, and smaller decreases in several other expense categories. These decreases were partially offset by increases in state and local taxes and smaller increases in several other expense categories. The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 2% to $33.43 million from $32.68 million for the first nine months of fiscal 2024. The efficiency ratio for the first nine months of fiscal 2025 improved to 55.65% from 58.55% for the first nine months of fiscal 2024.

The provision for income taxes for the current quarter increased $85,000, or 5%, to $1.79 million from $1.71 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to 20.2% for the quarter ended March 31, 2025 and 20.6% for the quarter ended June 30, 2024. Timberland’s effective income tax rate was 20.1% for the first nine months of fiscal 2025 compared to 20.2% for the first nine months of fiscal 2024.

Balance Sheet Management

Total assets increased $24.46 million, or 1%, during the quarter to $1.96 billion at June 30, 2025 from $1.93 billion at March 31, 2025 and increased $56.56 million, or 3%, from $1.90 billion one year ago. The increase during the current quarter was primarily due to a $21.42 million increase in net loans receivable and smaller increases in several other categories.

Liquidity

Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet. Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 17.0% of total liabilities at June 30, 2025, compared to 16.9% at March 31, 2025, and 14.7% one year ago. Timberland also had secured borrowing line capacity of $674 million available through the FHLB and the Federal Reserve at June 30, 2025. With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2025. (Note: This calculation excludes public deposits that are fully collateralized.)

Loans

Net loans receivable increased $21.42 million, or 2%, during the quarter to $1.44 billion at June 30, 2025 from $1.42 billion at March 31, 2025. This increase was primarily due to a $21.83 million increase in multi-family loans, a $5.67 million increase in commercial real estate loans, a $3.89 million increase in land loans and smaller increases in several other loan categories. These increases were partially offset by a $5.50 million decrease in construction loans, a $4.80 million decrease in commercial business loans, and smaller decreases in several other loan categories. The increase in multi-family loans was, in large part, due to several multi-family construction projects being completed and converting to permanent financing during the quarter.

Loan Portfolio ($ in thousands)

	June 30, 2025			March 31, 2025				June 30, 2024
	Amount		Percent	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (a)	$317,574		21%	$315,421		21%		$288,611		19%
Multi-family		200,418	13		178,590	12			177,950	12
Commercial		607,924	40		602,248	40			597,865	40
Construction – custom and
owner/builder		128,900	8		114,401		7		128,222	9
Construction – speculative one-to four-family		9,595	1		9,791	1			11,441	1
Construction – commercial		15,992	1		22,352	1			32,130	2
Construction – multi-family		32,731	2		46,602	3			35,631	2
Construction – land
development		15,461	1		15,032	1			19,104	1
Land		36,193	2		32,301	2			32,384	2
Total mortgage loans		1,364,788	89		1,336,738	88			1,323,338	88

Consumer loans:
Home equity and second
mortgage		47,511	3		47,458	3			43,679	3
Other		2,176	—		2,375	—			3,121	—
Total consumer loans		49,687	3		49,833	3			46,800	3

Commercial loans:
Commercial business loans		126,497	8		131,243	9			136,213	9
SBA PPP loans		101	—		156	—			314	—
Total commercial loans		126,598	8		131,399	9			136,527	9
Total loans		1,541,073	100%		1,517,970	100%			1,506,665	100%
Less:
Undisbursed portion of
construction loans in
process		(76,272)			(75,042)				(87,196)
Deferred loan origination
fees		(5,427)			(5,329)				(5,404)
Allowance for credit losses		(17,878)			(17,525)				(17,046)
Total loans receivable, net	$1,441,496			$1,420,074				$1,397,019

_______________________
(a) Does not include one- to four-family loans held for sale totaling $1,763, $1,151, and $1,795 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 30, 2025:

CRE Loan Portfolio Breakdown by Collateral ($ in thousands)
Collateral Type	Balance		Percent of CRE Portfolio	Percent of Total Loan Portfolio	Average Balance Per Loan		Non- Accrual
Industrial warehouses	$128 822		21%	8%	$1 301		$161
Medical/dental offices		81 238	13	5		1 269		—
Office buildings		68 916	11	5		801		—
Other retail buildings		54 472	9	3		567		—
Mini-storage		38 483	6	2		1 539		—
Hotel/motel		31 656	5	2		2 638		—
Restaurants		27 485	5	2		585		—
Gas stations/conv. stores		24 359	4	2		1 015		—
Churches		14 690	3	1		918		—
Nursing homes		13 532	2	1		2 255		—
Shopping centers		10 507	2	1		1 751		—
Mobile home parks		8 882	2	1		444		—
Additional CRE		104 882	17	7		760		—
Total CRE	$607 924		100%	40%	$951		$161

Timberland originated $81.99 million in loans during the quarter ended June 30, 2025, compared to $56.76 million for the preceding quarter and $74.32 million for the comparable quarter one year ago. Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income. During the current quarter, fixed-rate one- to four-family mortgage loans totaling $5.11 million were sold compared to $5.17 million for the preceding quarter and $3.05 million for the comparable quarter one year ago.

Investment Securities

Timberland’s investment securities and CDs held for investment increased $2.04 million, or 1%, to $237.36 million at June 30, 2025, from $235.33 million at March 31, 2025. The increase was primarily due to the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities. Partially offsetting these increases was the sale of $13.49 million available for sale investment securities, which resulted in a net gain of $24,000.

Deposits

Total deposits increased $18.65 million, or 1%, during the quarter to $1.67 billion at June 30, 2025, from $1.65 billion at March 31, 2025. The quarter’s increase consisted of a $16.01 million increase in certificates of deposit account balances, a $4.66 million increase in money market account balances, and a $1.60 million increase in NOW checking account balances. These decreases were partially offset by a $2.03 million decrease in savings account balances and a $1.59 million decrease in non-interest-bearing checking account balances.

Deposit Breakdown ($ in thousands)

	June 30, 2025		March 31, 2025		June 30, 2024
	Amount	Percent	Amount	Percent	Amount	Percent
Non-interest-bearing demand	$406,222	24%	$407,811	25%	$407,125	25%
NOW checking	334,922	20	333,325	20	324,795	20
Savings	205,829	12	207,857	13	207,921	13
Money market	305,207	18	300,552	18	327,162	20
Certificates of deposit under $250	244,063	15	227,137	14	195,022	12
Certificates of deposit $250 and over	126,254	8	124,009	7	117,788	7
Certificates of deposit – brokered	46,980	3	50,139	3	48,731	3
Total deposits	$1,669,477	100%	$1,650,830	100%	$1,628,544	100%

Borrowings

Total borrowings were $20.00 million at both June 30, 2025 and March 31, 2025. At June 30, 2025, the weighted average rate on the borrowings was 3.97%.

Shareholders’ Equity and Capital Ratios

Total shareholders’ equity increased $4.14 million, or 2%, to $256.66 million at June 30, 2025, from $252.52 million at March 31, 2025, and increased $15.44 million, or 6%, from $241.22 million at June 30, 2024. The increase in shareholders’ equity during the quarter was primarily due to net income of $7.10 million, which was partially offset by the payment of $2.05 million in dividends to shareholders and the repurchase of 34,236 shares of common stock for $1.02 million (an average price of $29.74 per share).

Timberland remains well capitalized with a total risk-based capital ratio of 20.54%, a Tier 1 leverage capital ratio of 12.63%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.42%, and a shareholders’ equity to total assets ratio of 13.11% at June 30, 2025. Timberland’s held to maturity investment securities were $141.57 million at June 30, 2025, with a net unrealized loss of $5.99 million (pre-tax). Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 12.90%, compared to 13.11%, as reported.

New Stock Repurchase Program

The Company announced a new stock repurchase program today. Under the repurchase program, the Company may repurchase up to 5% of the Company’s outstanding shares, or 393,842 shares. The new stock repurchase program replaces the existing stock repurchase program which had 31,762 shares available to be repurchased.

The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission (“SEC”). Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interest of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements. The repurchase program may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing the shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares.

Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.21% at June 30, 2025, compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024. Net recoveries totaled $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net charge-offs of $36,000 for the comparable quarter one year ago. During the current quarter, provisions for credit losses of $351,000 on loans and $93,000 unfunded commitments were made, which was partially offset by a $4,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.23% at June 30, 2025, compared to 1.22% at March 31, 2025 and 1.21% one year ago.

Total delinquent loans (past due 30 days or more) and non-accrual loans increased $2.86 million or 86%, to $6.18 million at June 30, 2025, from $3.32 million at March 31, 2025 and increased $1.95 million, or 46%, from $4.23 million at June 30, 2024. Non-accrual loans increased $1.52 million, or 65%, to $3.84 million at June 30, 2025 from $2.33 million at March 31, 2025 and decreased $277,000, or 7%, from $4.12 million at March 31, 2024. The quarterly increase in non-accrual loans was primarily due to one loan (secured by several single family homes) being past maturity. The loan is well collateralized (based on recent appraisals) and the Bank is working with the borrower to renew the loan. Loans graded “Substandard” totaled $32.37 million (or 2% of total loans receivable) at June 30, 2025.

Non-Accrual Loans ($ in thousands)

	June 30, 2025			March 31, 2025			June 30, 2024
	Amount		Quantity	Amount		Quantity	Amount		Quantity
Mortgage loans:
One- to four-family	$1,781		1	$47		1	$135		2
Commercial		161	2		324	3		1,310	4
Construction – custom and
owner/builder		—	—		—	—		152	1
Total mortgage loans		1,942	3		371	4		1,597	7

Consumer loans:
Home equity and second
mortgage		575	3		575	3		615	3
Other		—	—		—	—		—	—
Total consumer loans		575	3		575	3		615	3

Commercial business loans		1,326	9		1,381	11		1,908	8
Total loans	$3,843		15	$2,327		18	$4,120		18

Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2025:

	June 30, 2025			March 31, 2025			June 30, 2024
	Amount		Quantity	Amount		Quantity	Amount		Quantity
Other real estate owned:
Commercial	$221		1	$221		1	$	—	—
Land		—	1		—	1		—	1
Total mortgage loans	$221		2	$221		2	$	—	1

About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank. The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).

Disclaimer
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 statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”) in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board (“FASB”), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company’s other reports filed with or furnished to the Securities and Exchange Commission.

Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management’s beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s consolidated financial condition and results of operations as well as its stock price performance.

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Three Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,		March 31,		June 30,
			2025		2025		2024
	Interest and dividend income
	Loans receivable	$21,411		$20,896		$19,537
	Investment securities		2,064		2,003		2,335
	Dividends from mutual funds, FHLB stock and other investments		83		82		94
	Interest bearing deposits in banks		1,986		1,884		2,173
	Total interest and dividend income		25,544		24,865		24,139

	Interest expense
	Deposits		7,721		7,454		7,938
	Borrowings		201		198		220
	Total interest expense		7,922		7,652		8,158
	Net interest income		17,622		17,213		15,981
	Provision for credit losses – loans		351		237		264
	Recapture of credit losses – investment securities		(4)		(5)		(12)
	Prov. for (recapture of ) credit losses – unfunded commitments		93		14		(8)
	Net int. income after provision for (recapture of) credit losses		17,182		16,967		15,737

	Non-interest income
	Service charges on deposits		966		959		1,014
	ATM and debit card interchange transaction fees		1,262		1,176		1,297
	Gain on sales of investment securities, net		24		—		—
	Gain on sales of loans, net		138		122		68
	Bank owned life insurance (“BOLI”) net earnings		171		165		158
	Other		314		265		254
	Total non-interest income, net		2,875		2,687		2,791

	Non-interest expense
	Salaries and employee benefits		5,825		5,977		5,928
	Premises and equipment		973		1,075		1,011
	Gain on sale of premises and equipment, net		—		—		(3)
	Advertising		182		189		211
	OREO and other repossessed assets, net		8		9		—
	ATM and debit card processing		658		521		580
	Postage and courier		137		142		130
	State and local taxes		570		335		335
	Professional fees		341		431		335
	FDIC insurance		211		219		208
	Loan administration and foreclosure		99		155		156
	Technology and communications		993		1,121		1,086
	Deposit operations		345		319		450
	Amortization of core deposit intangible (“CDI”)		45		45		56
	Other, net		780		656		586
	Total non-interest expense, net		11,167		11,194		11,069

	Income before income taxes		8,890		8,460		7,459
	Provision for income taxes		1,790		1,705		1,535
	Net income	$7,100		$6,755		$5,924

	Net income per common share:
	Basic	$0.90		$0.85		$0.74
	Diluted		0.90		0.85		0.74

	Weighted average common shares outstanding:
	Basic		7,893,308		7,937,063		8,004,552
	Diluted		7,921,762		7,968,632		8,039,345

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Nine Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,		June 30,
			2025		2024
	Interest and dividend income
	Loans receivable	$63,339		$56,841
	Investment securities		6,205		6,892
	Dividends from mutual funds, FHLB stock and other investments		252		266
	Interest bearing deposits in banks		5,870		5,791
	Total interest and dividend income		75,666		69,790

	Interest expense
	Deposits		23,259		21,383
	Borrowings		602		787
	Total interest expense		23,861		22,170
	Net interest income		51,805		47,620
	Provision for credit losses – loans		640		810
	Recapture of credit losses – investment securities		(14)		(20)
	Prov. for (recapture of) credit losses – unfunded commitments		87		(130)
	Net int. income after provision for (recapture of) credit losses		51,092		46,960

	Non-interest income
	Service charges on deposits		2,924		3,024
	ATM and debit card interchange transaction fees		3,706		3,773
	Gain on sales of investment securities, net		24		—
	Gain on sales of loans, net		303		188
	Bank owned life insurance (“BOLI”) net earnings		503		470
	Other		799		749
	Total non-interest income, net		8,259		8,204

	Non-interest expense
	Salaries and employee benefits		17,893		17,863
	Premises and equipment		2,998		3,065
	Gain on sale of premises and equipment, net		—		(3)
	Advertising		552		556
	OREO and other repossessed assets, net		17		1
	ATM and debit card processing		1,700		1,796
	Postage and courier		401		401
	State and local taxes		1,251		979
	Professional fees		1,118		908
	FDIC insurance		640		624
	Loan administration and foreclosure		383		395
	Technology and communications		3,253		3,101
	Deposit operations		997		1,094
	Amortization of core deposit intangible (“CDI”)		135		169
	Other, net		2,090		1,735
	Total non-interest expense, net		33,428		32,684

	Income before income taxes		25,923		22,480
	Provision for income taxes		5,208		4,552
	Net income	$20,715		$17,928

	Net income per common share:
	Basic	$2.61		$2.22
	Diluted		2.60		2.21

	Weighted average common shares outstanding:
	Basic		7,929,626		8,067,068
	Diluted		7,963,412		8,109,043

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts) (unaudited)		June 30,		March 31,		June 30,
			2025		2025		2024
Assets
Cash and due from financial institutions		$32,532		$26,010		$25,566
Interest-bearing deposits in banks			161,095		165,201		133,347
	Total cash and cash equivalents		193,627		191,211		158,913

Certificates of deposit (“CDs”) held for investment, at cost			8,462		8,711		10,458
Investment securities:
	Held to maturity, at amortized cost (net of ACL – investment securities)		141,570		140,954		176,787
	Available for sale, at fair value		86,475		84,807		74,515
Investments in equity securities, at fair value			855		853		836
FHLB stock			2,045		2,045		2,037
Other investments, at cost			3,000		3,000		3,000
Loans held for sale			1,763		1,151		1,795

Loans receivable			1,459,374		1,437,599		1,414,065
Less: ACL – loans			(17,878)		(17,525)		(17,046)
	Net loans receivable		1,441,496		1,420,074		1,397,019

Premises and equipment, net			21,490		21,436		21,558
OREO and other repossessed assets, net			221		221		—
BOLI			24,113		23,942		23,436
Accrued interest receivable			7,174		7,127		7,045
Goodwill			15,131		15,131		15,131
CDI			316		361		508
Loan servicing rights, net			911		1,051		1,526
Operating lease right-of-use assets			1,248		1,324		1,550
Other assets			7,295		9,331		4,515
	Total assets	$1,957,192		$1,932,730		$1,900,629

Liabilities and shareholders’ equity
Deposits: Non-interest-bearing demand		$406,222		$407,811		$407,125
Deposits: Interest-bearing			1,263,255		1,243,019		1,221,419
	Total deposits		1,669,477		1,650,830		1,628,544

Operating lease liabilities			1,350		1,426		1,649
FHLB borrowings			20,000		20,000		20,000
Other liabilities and accrued expenses			9,701		7,950		9,213
	Total liabilities		1,700,528		1,680,206		1,659,406

Shareholders’ equity
Common stock, $.01 par value; 50,000,000 shares authorized; 7,876,853 shares issued and outstanding – June 30, 2025 7,903,489 shares issued and outstanding – March 31, 2025 7,953,431 shares issued and outstanding – June 30, 2024			27,226		28,028		30,681
Retained earnings			230,213		225,166		211,087
Accumulated other comprehensive loss			(775)		(670)		(545)
	Total shareholders’ equity		256,664		252,524		241,223
	Total liabilities and shareholders’ equity	$1,957,192		$1,932,730		$1,900,629

	Three Months Ended
PERFORMANCE RATIOS:		June 30, 2025		March 31, 2025		June 30, 2024
Return on average assets (a)			1.47%		1.43%		1.25%
Return on average equity (a)			11.23%		10.95%		9.95%
Net interest margin (a)			3.80%		3.79%		3.53%
Efficiency ratio			54.48%		56.25%		58.97%

	Nine Months Ended
		June 30, 2025				June 30, 2024
Return on average assets (a)			1.44%				1.27%
Return on average equity (a)			11.07%				10.10%
Net interest margin (a)			3.74%				3.53%
Efficiency ratio			55.65%				58.55%

	Three Months Ended
ASSET QUALITY RATIOS AND DATA: ($ in thousands)		June 30, 2025		March 31, 2025		June 30, 2024
Non-accrual loans		$3,843		$2,327		$4,120
Loans past due 90 days and still accruing			—		—		—
Non-performing investment securities			38		41		72
OREO and other repossessed assets			221		221		—
Total non-performing assets (b)		$4,102		$2,589		$4,192

Non-performing assets to total assets (b)			0.21%		0.13%		0.22%
Net charge-offs (recoveries) during quarter		$(1)		$	—	$36
Allowance for credit losses – loans to non-accrual loans			465%		753%		414%
Allowance for credit losses – loans to loans receivable (c)			1.23%		1.22%		1.21%


CAPITAL RATIOS:
Tier 1 leverage capital			12.63%		12.55%		12.04%
Tier 1 risk-based capital			19.29%		19.04%		17.97%
Common equity Tier 1 risk-based capital			19.29%		19.04%		17.97%
Total risk-based capital			20.54%		20.29%		19.22%
Tangible common equity to tangible assets (non-GAAP)			12.42%		12.36%		11.97%

BOOK VALUES:
Book value per common share		$32.58		$31.95		$30.33
Tangible book value per common share (d)			30.62		29.99		28.36

________________________________________________

(a) Annualized
(b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets.
(c) Does not include loans held for sale and is before the allowance for credit losses.
(d) Tangible common equity divided by common shares outstanding (non-GAAP).

AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
($ in thousands)
(unaudited)

	For the Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
	Amount			Rate		Amount			Rate		Amount			Rate

Assets
Loans receivable and loans held for sale	$	1,450,350		5.92	%	$	1,435,999		5.90	%	$	1,391,582		5.65	%
Investment securities and FHLB stock (1)		232,272		3.71			232,532		3.64			268,954		3.63
Interest-earning deposits in banks and CDs		178,887		4.45			172,175		4.44			161,421		5.41
Total interest-earning assets		1,861,509		5.50			1,840,706		5.48			1,821,957		5.33
Other assets		79,715					77,563					82,008
Total assets	$	1,941,224				$	1,918,269				$	1,903,965

Liabilities and Shareholders’ Equity
NOW checking accounts	$	333,074		1.39	%	$	328,115		1.32	%	$	329,344		1.29	%
Money market accounts		304,526		3.16			306,137		3.18			326,023		3.56
Savings accounts		205,592		0.35			206,054		0.28			208,488		0.27
Certificates of deposit accounts		363,342		3.77			343,945		3.82			311,545		4.21
Brokered CDs		48,028		4.83			50,104		4.85			45,442		5.32
Total interest-bearing deposits		1,254,562		2.47			1,234,355		2.45			1,220,842		2.62
Borrowings		20,002		4.03			20,000		4.04			20,001		4.42
Total interest-bearing liabilities		1,274,564		2.49			1,254,355		2.47			1,240,843		2.64

Non-interest-bearing demand deposits		402,717					403,738					413,494
Other liabilities		10,266					10,064					10,245
Shareholders’ equity		253,677					250,112					239,383
Total liabilities and shareholders’ equity	$	1,941,224				$	1,918,269				$	1,903,965

Interest rate spread				3.01	%				3.01	%				2.69	%
Net interest margin (2)				3.80	%				3.79	%				3.53	%
Average interest-earning assets to
average interest-bearing liabilities		146.05	%				146.75	%				146.83	%

           _____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
      average interest-earning assets

AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands)
(unaudited)

	For the Nine Months Ended
	June 30, 2025					June 30, 2024
	Amount			Rate		Amount			Rate

Assets
Loans receivable and loans held for sale	$	1,441,506		5.87	%	$	1,363,213		5.57	%
Investment securities and FHLB stock (1)		237,400		3.81			294,789		3.24
Interest-earning deposits in banks and CDs		172,591		4.55			143,537		5.39
Total interest-earning assets		1,851,497		5.49			1,801,539		5.17
Other assets		77,595					81,650
Total assets	$	1,929,092				$	1,883,189

Liabilities and Shareholders’ Equity
NOW checking accounts	$	329,883		1.36	%	$	358,052		1.48	%
Money market accounts		311,762		3.26			273,683		3.09
Savings accounts		205,764		0.30			214,275		0.24
Certificates of deposit accounts		346,313		3.89			291,707		4.12
Brokered CDs		48,169		4.71			42,856		5.37
Total interest-bearing deposits		1,241,891		2.50			1,180,573		2.42
Borrowings		20,001		4.02			22,457		4.68
Total interest-bearing liabilities		1,261,892		2.53			1,203,030		2.46

Non-interest-bearing demand deposits		406,906					431,849
Other liabilities		10,159					11,273
Shareholders’ equity		250,135					237,037
Total liabilities and shareholders’ equity	$	1,929,092				$	1,883,189

Interest rate spread				2.96	%				2.71	%
Net interest margin (2)				3.74	%				3.53	%
Average interest-earning assets to
average interest-bearing liabilities		146.72	%				149.75	%

_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets

Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders’ equity less goodwill and CDI. In addition, tangible assets equal total assets less goodwill and CDI.

The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).

($ in thousands)	June 30, 2025		March 31, 2025		June 30, 2024

Shareholders’ equity	$	256,664	$	252,524	$	241,223
Less goodwill and CDI		(15,447)		(15,492)		(15,639)
Tangible common equity	$	241,217	$	237,032	$	225,584

Total assets	$	1,957,192	$	1,932,730	$	1,900,629
Less goodwill and CDI		(15,447)		(15,492)		(15,639)
Tangible assets	$	1,941,745	$	1,917,238	$	1,884,990

Contact: Dean J. Brydon, CEO
Jonathan A. Fischer, President & COO
Marci A. Basich, CFO
(360) 533-4747
www.timberlandbank.com

The MIL Network –

July 23, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Net Income	Diluted EPS	Net Interest Margin¹	ROAA¹	ROATCE¹
$47.4 million	$0.52	3.49%	1.00%	11.24%
$57.4 million (adj)²	$0.63 (adj)²	3.33% (adj)²	1.21% (adj)²	13.61% (adj)²

MESSAGE FROM OUR CHAIRMAN & CEO

This quarter’s bank merger and data conversion represents a significant milestone for our organization, as we officially welcome CrossFirst Bank customers to Busey Bank. We are proud to offer a premier, full-service banking experience for both consumer and commercial clients, with 78 locations spanning 10 states. Our comprehensive services also include a robust wealth management platform and cutting-edge payment technology solutions through FirsTech, Inc. This transformational partnership allows us to enhance Busey’s rich 157-year legacy of service excellence, further advancing our organization for the benefit of all our Pillars—associates, customers, communities, and shareholders.

Van A. Dukeman
Chairman and Chief Executive Officer

FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*

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

Basic earnings (loss) per common share	$	0.53		$	(0.44	)	$	0.48		$	0.22		$	0.95
Diluted earnings (loss) per common share	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94
Effective income tax rate		26.52	%		8.20	%		28.80	%		45.31	%		26.98	%

___________________________________________

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

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

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

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

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

Pre-Provision Net Revenue²

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

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

Net Interest Income and Net Interest Margin²

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

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

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

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

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

Noninterest Income

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

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

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

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

Noteworthy components of noninterest income are as follows:

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

Operating Efficiency

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

___________________________________________

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

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

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

Noteworthy components of noninterest expense are as follows:

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

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

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

BALANCE SHEET STRENGTH

CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*

	As of
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
ASSETS
Cash and cash equivalents	$	752,352		$	1,200,292		$	285,269
Debt securities available for sale		2,217,788			2,273,874			1,829,896
Debt securities held to maturity		802,965			815,402			851,261
Equity securities		16,171			10,828			9,618
Loans held for sale		10,497			7,270			11,286
Portfolio loans		13,808,619			13,868,357			7,998,912
Allowance for credit losses		(183,334	)		(195,210	)		(85,226	)
Restricted bank stock		77,112			53,518			6,884
Premises and equipment, net		181,394			182,003			121,647
Right of use assets		38,065			40,594			11,137
Goodwill and other intangible assets, net		488,181			496,118			370,580
Other assets		708,930			711,206			560,152
Total assets	$	18,918,740		$	19,464,252		$	11,971,416

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	3,590,363		$	3,693,070		$	2,832,776
Interest-bearing checking, savings, and money market deposits		9,578,953			9,675,324			5,619,470
Time deposits		2,632,456			3,091,076			1,523,889
Total deposits		15,801,772			16,459,470			9,976,135
Securities sold under agreements to repurchase		158,030			137,340			140,283
Short-term borrowings		—			11,209			—
Long-term debt		189,726			313,535			227,245
Junior subordinated debt owed to unconsolidated trusts		77,187			77,117			74,693
Lease liabilities		39,235			41,111			11,469
Other liabilities		240,244			244,864			207,781
Total liabilities		16,506,194			17,284,646			10,637,606

Stockholders’ equity
Retained earnings		273,799			249,484			261,820
Accumulated other comprehensive income (loss)		(155,311	)		(172,810	)		(220,326	)
Other stockholders’ equity¹		2,294,058			2,102,932			1,292,316
Total stockholders’ equity		2,412,546			2,179,606			1,333,810
Total liabilities & stockholders’ equity	$	18,918,740		$	19,464,252		$	11,971,416

___________________________________________

Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.

AVERAGE BALANCES *(unaudited)*

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
ASSETS
Cash and cash equivalents	$	868,164	$	861,021	$	346,381	$	864,613	$	470,287
Investment securities		3,083,284		2,782,435		2,737,313		2,933,690		2,822,228
Loans held for sale		6,899		3,443		9,353		5,181		7,093
Portfolio loans		13,840,190		9,838,337		8,010,636		11,850,318		7,804,976
Interest-earning assets		17,700,356		13,363,594		11,000,785		15,543,955		11,003,344
Total assets		19,068,086		14,831,298		12,089,692		16,961,396		12,056,950

LIABILITIES & STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits		3,542,617		3,036,127		2,816,293		3,290,770		2,762,439
Interest-bearing deposits		12,450,529		9,142,781		7,251,582		10,805,793		7,290,844
Total deposits		15,993,146		12,178,908		10,067,875		14,096,563		10,053,283
Federal funds purchased and securities sold under agreements to repurchase		141,978		144,838		144,370		143,400		161,514
Interest-bearing liabilities		12,985,015		9,627,841		7,725,832		11,315,702		7,778,744
Total liabilities		16,783,504		12,896,222		10,757,877		14,850,601		10,753,180
Stockholders’ equity – preferred		103,619		2,669		—		53,423		—
Stockholders’ equity – common		2,180,963		1,932,407		1,331,815		2,057,372		1,303,770
Tangible common equity¹		1,686,490		1,521,387		955,591		1,604,394		939,150

___________________________________________

See “Non-GAAP Financial Information” for reconciliation.

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

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

Portfolio Loans

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

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

Asset Quality

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

ASSET QUALITY *(unaudited)*

	As of
(dollars in thousands)	June 30, 2025			March 31, 2025			June 30, 2024
Total assets	$	18,918,740		$	19,464,252		$	11,971,416
Portfolio loans		13,808,619			13,868,357			7,998,912
Loans 30 – 89 days past due		42,188			18,554			23,463
Non-performing loans:
Non-accrual loans		53,614			48,647			8,393
Loans 90+ days past due and still accruing		941			6,077			712
Non-performing loans		54,555			54,724			9,105
Other non-performing assets		3,596			4,757			90
Non-performing assets		58,151			59,481			9,195
Substandard (excludes 90+ days past due)		117,580			131,078			86,579
Classified assets	$	175,731		$	190,559		$	95,774

Allowance for credit losses	$	183,334		$	195,210		$	85,226

RATIOS
Non-performing loans to portfolio loans		0.40	%		0.39	%		0.11	%
Non-performing assets to total assets		0.31	%		0.31	%		0.08	%
Non-performing assets to portfolio loans and other non-performing assets		0.42	%		0.43	%		0.11	%
Allowance for credit losses to portfolio loans		1.33	%		1.41	%		1.07	%
Coverage ratio of the allowance for credit losses to non-performing loans	3.36 x			3.57 x			9.36 x
Classified assets to Bank Tier 1 capital¹and reserves		7.70	%		8.40	%		6.40	%

___________________________________________

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

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

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

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

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

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

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*

	Three Months Ended							Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024			June 30, 2025		June 30, 2024
Net charge-offs (recoveries)	$	12,882	$	31,429	$	9,856		$	44,311	$	15,072

Provision for loan losses¹	$	1,005	$	42,452	$	2,277		$	43,457	$	7,315
Provision for unfunded commitments²		4,695		3,141		(369	)		7,836		(1,047	)
Provision for credit losses³	$	5,700	$	45,593	$	1,908		$	51,293	$	6,268

___________________________________________

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

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

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

Deposits

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

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

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

Borrowings

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

Liquidity

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

Capital Strength

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

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

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

Dividends

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

Series B Preferred Stock Issuance

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

Share Repurchases

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

SECOND QUARTER EARNINGS INVESTOR PRESENTATION

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

CORPORATE PROFILE

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

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

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

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

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

NON-GAAP FINANCIAL INFORMATION

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

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

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

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue and Related Measures

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses (GAAP)			(5,997	)		15,768			353			9,771			6,728
Total noninterest expense (GAAP)¹			(127,833	)		(112,030	)		(75,906	)		(239,863	)		(147,353	)
Pre-provision net revenue (Non-GAAP)	[a]		64,216			28,692			40,682			92,908			86,377
Acquisition and restructuring expenses, excluding initial provision expenses			16,600			26,026			2,212			42,626			2,620
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted pre-provision net revenue (Non-GAAP)	[b]	$	80,816		$	54,718		$	42,617		$	135,534		$	81,255

Average total assets	[c]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950

Pre-provision net revenue to average total assets (Non-GAAP)²	[a÷c]		1.35	%		0.78	%		1.35	%		1.10	%		1.44	%
Adjusted pre-provision net revenue to average total assets (Non-GAAP)²	[b÷c]		1.70	%		1.50	%		1.42	%		1.61	%		1.36	%

___________________________________________

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

Adjusted Net Income, Average Tangible Common Equity, and Related Ratios

		Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (GAAP)	[a]	$	47,404		$	(29,990	)	$	27,357		$	17,414		$	53,582
Day 2 provision for credit losses¹			—			45,572			—			45,572			—
Adjustment of initial provision for unfunded commitments due to adoption of new model¹			4,030			—			—			4,030			—
Other acquisition expenses			16,600			26,026			2,212			42,626			2,497
Restructuring expenses			—			—			—			—			123
Net securities (gains) losses			(5,997	)		15,768			353			9,771			6,728
Realized net (gains) losses on the sale of mortgage servicing rights			—			—			(277	)		—			(7,742	)
Related tax (benefit) expense²			(4,971	)		(22,069	)		(572	)		(27,040	)		(402	)
Non-recurring deferred tax adjustment³			328			4,591			1,446			4,919			1,446
Adjusted net income (Non-GAAP)⁴	[b]		57,394			39,898			30,519			97,292			56,232
Preferred dividends	[c]		155			—			—			155			—
Adjusted net income available to common stockholders (Non-GAAP)	[d]	$	57,239		$	39,898		$	30,519		$	97,137		$	56,232

Weighted average number of common shares outstanding, diluted (GAAP)	[e]		90,883,711			68,517,647			57,853,231			80,251,577			57,129,865
Diluted earnings (loss) per common share (GAAP)	[(a-c)÷e]	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94

Weighted average number of common shares outstanding, diluted (Non-GAAP)⁵	[f]		90,883,711			69,502,717			57,853,231			80,251,577			57,129,865
Adjusted diluted earnings per common share (Non-GAAP)^5,6	[d÷f]	$	0.63		$	0.57		$	0.53		$	1.21		$	0.98

Average total assets	[g]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Return on average assets (Non-GAAP)⁶	[a÷g]		1.00	%	(0.82)%				0.91	%		0.21	%		0.89	%
Adjusted return on average assets (Non-GAAP)⁴^,⁶	[b÷g]		1.21	%		1.09	%		1.02	%		1.16	%		0.94	%

Average common equity		$	2,180,963		$	1,932,407		$	1,331,815		$	2,057,372		$	1,303,770
Average goodwill and other intangible assets, net			(494,473	)		(411,020	)		(376,224	)		(452,978	)		(364,620	)
Average tangible common equity (Non-GAAP)	[h]	$	1,686,490		$	1,521,387		$	955,591		$	1,604,394		$	939,150

Return on average tangible common equity (Non-GAAP)⁶	[(a-c)÷h]		11.24	%	(7.99)%				11.51	%		2.17	%		11.47	%
Adjusted return on average tangible common equity (Non-GAAP)⁴^,⁶	[d÷h]		13.61	%		10.64	%		12.85	%		12.21	%		12.04	%

___________________________________________

The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June 30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey’s Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were presented as further adjustments to adjusted net income.
Dilution includes shares that would have been dilutive if there had been net income during the period.
Annualized measure.

Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[a]		153,974			104,268			82,934			258,242			159,237
Purchase accounting accretion related to business combinations			(7,119	)		(2,728	)		(812	)		(9,847	)		(1,016	)
Adjusted net interest income (Non-GAAP)	[b]	$	146,855		$	101,540		$	82,122		$	248,395		$	158,221

Average interest-earning assets (Non-GAAP)	[c]	$	17,700,356		$	13,363,594		$	11,000,785		$	15,543,955		$	11,003,344

Net interest margin (Non-GAAP)²	[a÷c]		3.49	%		3.16	%		3.03	%		3.35	%		2.91	%
Adjusted net interest margin (Non-GAAP)²	[b÷c]		3.33	%		3.08	%		3.00	%		3.22	%		2.89	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Annualized measure.

Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)	[a]	$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[b]		153,974			104,268			82,934			258,242			159,237

Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses			(5,997	)		15,768			353			9,771			6,728
Noninterest income excluding net securities gains and losses (Non-GAAP)	[c]		38,866			36,991			34,056			75,857			75,344
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted noninterest income (Non-GAAP)	[d]	$	38,866		$	36,991		$	33,779		$	75,857		$	67,602

Tax-equivalent revenue (Non-GAAP)	[e = b+c]	$	192,840		$	141,259		$	116,990		$	334,099		$	234,581
Adjusted tax-equivalent revenue (Non-GAAP)	[f = b+d]		192,840			141,259			116,713			334,099			226,839
Operating revenue (Non-GAAP)	[g = a+d]		192,049			140,722			116,311			332,771			225,988

Adjusted noninterest income to operating revenue (Non-GAAP)	[d÷g]		20.24	%		26.29	%		29.04	%		22.80	%		29.91	%

Total noninterest expense (GAAP)²		$	127,833		$	112,030		$	75,906		$	239,863		$	147,353
Amortization of intangible assets			(4,592	)		(3,083	)		(2,629	)		(7,675	)		(5,038	)
Noninterest expense excluding amortization of intangible assets (Non-GAAP)²	[h]		123,241			108,947			73,277			232,188			142,315
Acquisition and restructuring expenses, excluding initial provision expenses			(16,600	)		(26,026	)		(2,212	)		(42,626	)		(2,620	)
Adjusted noninterest expense (Non-GAAP)²	[i]	$	106,641		$	82,921		$	71,065		$	189,562		$	139,695

Efficiency ratio (Non-GAAP)²	[h÷e]		63.91	%		77.13	%		62.64	%		69.50	%		60.67	%
Adjusted efficiency ratio (Non-GAAP)²	[i÷f]		55.30	%		58.70	%		60.89	%		56.74	%		61.58	%

Average total assets	[j]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Adjusted noninterest expense to average assets (Non-GAAP)²^,³	[i÷j]		2.24	%		2.27	%		2.36	%		2.25	%		2.33	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
Annualized measure.

Tangible Assets, Tangible Common Equity, and Related Measures and Ratio

		As of
*(dollars in thousands, except per share amounts)*		June 30, 2025			March 31, 2025			June 30, 2024
Total assets (GAAP)		$	18,918,740		$	19,464,252		$	11,971,416
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible assets (Non-GAAP)¹	[a]	$	18,430,559		$	18,968,134		$	11,600,836

Total stockholders’ equity (GAAP)		$	2,412,546		$	2,179,606		$	1,333,810
Preferred stock and additional paid in capital on preferred stock			(215,197	)		(7,750	)		—
Common equity	[b]		2,197,349			2,171,856			1,333,810
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible common equity (Non-GAAP)¹	[c]	$	1,709,168		$	1,675,738		$	963,230

Tangible common equity to tangible assets (Non-GAAP)¹	[c÷a]		9.27	%		8.83	%		8.30	%

Ending number of common shares outstanding (GAAP)	[d]		89,104,678			90,008,178			56,746,937
Book value per common share (Non-GAAP)	[b÷d]	$	24.66		$	24.13		$	23.50
Tangible book value per common share (Non-GAAP)	[c÷d]	$	19.18		$	18.62		$	16.97

___________________________________________

Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.

Core Deposits and Related Ratio

		As of
*(dollars in thousands)*		June 30, 2025			March 31, 2025			June 30, 2024
Total deposits (GAAP)	[a]	$	15,801,772		$	16,459,470		$	9,976,135
Brokered deposits, excluding brokered time deposits of $250,000 or more			(353,614	)		(722,224	)		(43,089	)
Time deposits of $250,000 or more			(827,762	)		(867,035	)		(314,461	)
Core deposits (Non-GAAP)	[b]	$	14,620,396		$	14,870,211		$	9,618,585

Core deposits to total deposits (Non-GAAP)	[b÷a]		92.52	%		90.34	%		96.42	%

FORWARD-LOOKING STATEMENTS

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

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

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

END NOTES

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

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

The MIL Network –

July 23, 2025

MIL-OSI: Weatherford Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

Operational & Commercial Highlights

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

Technology Highlights

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

Shareholder Return

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

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

Results by Reportable Segment

Drilling and Evaluation (“DRE”)

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

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

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

Well Construction and Completions (“WCC”)

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

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

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

Production and Intervention (“PRI”)

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

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

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

Revenue by Geography

	Three Months Ended						Variance
*($ in Millions)*	June 30, 2025		March 31, 2025		June 30, 2024		Seq.		YoY
North America	$	241	$	250	$	252	(4) %		(4) %

International	$	963	$	943	$	1,153	2	%	(16) %
Latin America		195		241		353	(19) %		(45) %
Middle East/North Africa/Asia		524		503		542	4	%	(3) %
Europe/Sub-Sahara Africa/Russia		244		199		258	23	%	(5) %
Total Revenue	$	1,204	$	1,193	$	1,405	1	%	(14) %

North America

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

International

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

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

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

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

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

Conference Call Details

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

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

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

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

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

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

Forward-Looking Statements

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

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

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

Weatherford International plc
Selected Statements of Operations (Unaudited)

	Three Months Ended									Six Months Ended
*($ in Millions, Except Per Share Amounts)*	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025				June 30, 2024
Revenues:
DRE Revenues	$	335		$	350		$	427		$	685			$	849
WCC Revenues		456			441			504			897				962
PRI Revenues		327			334			369			661				717
All Other		86			68			105			154				235
Total Revenues		1,204			1,193			1,405			2,397				2,763

Operating Income:
DRE Segment Adjusted EBITDA^[1]	$	69		$	74		$	130		$	143			$	260
WCC Segment Adjusted EBITDA^[1]		118			128			145			246				265
PRI Segment Adjusted EBITDA^[1]		63			62			85			125				158
All Other^[2]		19			4			23			23				50
Corporate^[2]		(15	)		(15	)		(18	)		(30	)			(32	)
Depreciation and Amortization		(64	)		(62	)		(86	)		(126	)			(171	)
Share-based Compensation		(9	)		(7	)		(12	)		(16	)			(25	)
Gain on Sale of Business		70			—			—			70				—
Restructuring Charges		(11	)		(29	)		(5	)		(40	)			(8	)
Other (Charges) Credits		(3	)		(13	)		2			(16	)			—
Operating Income		237			142			264			379				497

Other Expense:
Interest Expense, Net of Interest Income of $14, $11, $17, $25 and $31		(21	)		(26	)		(24	)		(47	)			(53	)
Loss on Blue Chip Swap Securities		(1	)		—			(10	)		(1	)			(10	)
Other Expense, Net		(24	)		(20	)		(20	)		(44	)	—		(42	)
Income Before Income Taxes		191			96			210			287				392
Income Tax Provision		(46	)		(10	)		(73	)		(56	)			(132	)
Net Income		145			86			137			231				260
Net Income Attributable to Noncontrolling Interests		9			10			12			19				23
Net Income Attributable to Weatherford	$	136		$	76		$	125		$	212			$	237

Basic Income Per Share	$	1.87		$	1.04		$	1.71		$	2.91			$	3.25
Basic Weighted Average Shares Outstanding		72.2			73.1			73.2			72.7				73.1

Diluted Income Per Share	$	1.87		$	1.03		$	1.66		$	2.90			$	3.16
Diluted Weighted Average Shares Outstanding		72.4			73.4			75.3			72.9				75.0

^[1]	^{Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation, restructuring charges and other adjustments. Research and development expenses are included in segment adjusted EBITDA.}
^[2]	^{All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.}

Weatherford International plc
Selected Balance Sheet Data (Unaudited)

*($ in Millions)*	June 30, 2025		December 31, 2024
Assets:
Cash and Cash Equivalents	$	943	$	916
Restricted Cash		60		59
Accounts Receivable, Net		1,177		1,261
Inventories, Net		881		880
Property, Plant and Equipment, Net		1,136		1,061
Intangibles, Net		305		325

Liabilities:
Accounts Payable		685		792
Accrued Salaries and Benefits		252		302
Current Portion of Long-term Debt		26		17
Long-term Debt		1,565		1,617

Shareholders’ Equity:
Total Shareholders’ Equity		1,519		1,283

Weatherford International plc
Selected Cash Flows Information (Unaudited)

	Three Months Ended									Six Months Ended
*($ in Millions)*	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Cash Flows From Operating Activities:
Net Income	$	145		$	86		$	137		$	231		$	260
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization		64			62			86			126			171
Foreign Exchange Losses		17			13			8			30			23
Loss on Blue Chip Swap Securities		1			—			10			1			10
Gain on Disposition of Assets		(3	)		(1	)		(25	)		(4	)		(32	)
Gain on Sale of Business		(70	)		—			—			(70	)		—
Deferred Income Tax Provision (Benefit)		(5	)		7			13			2			27
Share-Based Compensation		9			7			12			16			25
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits		(22	)		(17	)		(22	)		(39	)		(174	)
Other Changes, Net		(8	)		(15	)		(69	)		(23	)		(29	)
Net Cash Provided By Operating Activities		128			142			150			270			281

Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment		(54	)		(77	)		(62	)		(131	)		(121	)
Proceeds from Disposition of Assets		5			1			8			6			18
Proceeds from Sale of Businesses		97			—			—			97			—
Purchases of Blue Chip Swap Securities		(83	)		—			(50	)		(83	)		(50	)
Proceeds from Sales of Blue Chip Swap Securities		82			—			40			82			40
Business Acquisitions, Net of Cash Acquired		—			—			—			—			(36	)
Proceeds from Sale of Investments		—			—			—			—			41
Other Investing Activities		(4	)		(3	)		3			(7	)		(7	)
Net Cash Provided by (Used In) Investing Activities		43			(79	)		(61	)		(36	)		(115	)

Cash Flows From Financing Activities:
Repayments of Long-term Debt		(34	)		(39	)		(87	)		(73	)		(259	)
Distributions to Noncontrolling Interests		(8	)		—			(9	)		(8	)		(9	)
Tax Remittance on Equity Awards		—			(20	)		(1	)		(20	)		(9	)
Share Repurchases		(34	)		(53	)		—			(87	)		—
Dividends Paid		(18	)		(18	)		—			(36	)		—
Other Financing Activities		(3	)		(3	)		(5	)		(6	)		(12	)
Net Cash Used In Financing Activities	$	(97	)	$	(133	)	$	(102	)	$	(230	)	$	(289	)

Weatherford International plc

Non-GAAP Financial Measures Defined (Unaudited)

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

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

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

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

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

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

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

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)


	Three Months Ended									Six Months Ended
*($ in Millions, Except Margin in Percentages)*	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Revenues	$	1,204		$	1,193		$	1,405		$	2,397		$	2,763
Net Income Attributable to Weatherford	$	136		$	76		$	125		$	212		$	237
Net Income Margin		11.3	%		6.4	%		8.9	%		8.8	%		8.6	%
Adjusted EBITDA*	$	254		$	253		$	365		$	507		$	701
Adjusted EBITDA Margin*		21.1	%		21.2	%		26.0	%		21.2	%		25.4	%

Net Income Attributable to Weatherford	$	136		$	76		$	125		$	212		$	237
Net Income Attributable to Noncontrolling Interests		9			10			12			19			23
Income Tax Provision		46			10			73			56			132
Interest Expense, Net of Interest Income of $14, $11, $17, $25 and $31		21			26			24			47			53
Loss on Blue Chip Swap Securities		1			—			10			1			10
Other Expense, Net		24			20			20			44			42
Operating Income		237			142			264			379			497
Depreciation and Amortization		64			62			86			126			171
Other Charges (Credits)^[1]		3			13			(2	)		16			—
Gain on Sale of Business		(70	)		—			—			(70	)		—
Restructuring Charges		11			29			5			40			8
Share-Based Compensation		9			7			12			16			25
Adjusted EBITDA*	$	254		$	253		$	365		$	507		$	701

Net Cash Provided By Operating Activities	$	128		$	142		$	150		$	270		$	281
Capital Expenditures for Property, Plant and Equipment		(54	)		(77	)		(62	)		(131	)		(121	)
Proceeds from Disposition of Assets		5			1			8			6			18
Adjusted Free Cash Flow*	$	79		$	66		$	96		$	145		$	178

[1]	Other Charges (Credits) in the three and six months ended June 30, 2025 primarily includes fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico and other miscellaneous charges and credits.

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

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)



*($ in Millions)*	June 30, 2025			March 31, 2025			June 30, 2024
Current Portion of Long-term Debt	$	26		$	22		$	20
Long-term Debt		1,565			1,583			1,628
Total Debt	$	1,591		$	1,605		$	1,648

Cash and Cash Equivalents	$	943		$	873		$	862
Restricted Cash		60			57			58
Total Cash	$	1,003		$	930		$	920

Components of Net Debt
Current Portion of Long-term Debt	$	26		$	22		$	20
Long-term Debt		1,565			1,583			1,628
Less: Cash and Cash Equivalents		943			873			862
Less: Restricted Cash		60			57			58
Net Debt*	$	588		$	675		$	728

Net Income for trailing 12 months	$	481		$	470		$	500
*Adjusted EBITDA for trailing 12 months**	$	1,188		$	1,299		$	1,327

*Net Leverage (Net Debt/Adjusted EBITDA)**		0.49	x		0.52	x		0.55	x

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

The MIL Network –

July 23, 2025

MIL-OSI: FS Bancorp, Inc. Reports Second Quarter Net Income of $7.7 Million or $0.99 Per Diluted Share and Declares 50th Consecutive Quarterly Cash Dividend in Addition to a Special Dividend

Source: GlobeNewswire (MIL-OSI)

MOUNTLAKE TERRACE, Wash., July 22, 2025 (GLOBE NEWSWIRE) — FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2025 second quarter net income of $7.7 million, or $0.99 per diluted share, compared to $9.0 million, or $1.13 per diluted share, for the comparable quarter one year ago. For the six months ended June 30, 2025, net income was $15.7 million, or $1.99 per diluted share, compared to net income of $17.4 million, or $2.20 per diluted share, for the comparable six-month period in 2024.

“We are proud of the balance sheet growth this quarter driven by solid loan demand. Additionally, our share repurchase activity reflects our continued confidence and commitment to delivering long-term value to our shareholders,” stated Phillip Whittington, CFO.

“We are pleased to announce that our Board of Directors has approved our 50th consecutive quarterly cash dividend of $0.28 per common share, demonstrating our continued commitment to delivering value to our shareholders. In recognition of this milestone, the Board also approved a special dividend of $0.22 per common share. Both dividends will be paid on August 21, 2025, to shareholders of record as of August 7, 2025,” noted Matthew Mullet, President.

2025 Second Quarter Highlights

Net income was $7.7 million for the second quarter of 2025, compared to $8.0 million for the previous quarter, and $9.0 million for the comparable quarter one year ago;
Total deposits decreased $61.8 million, or 2.4%, to $2.55 billion at June 30, 2025, primarily due to a decrease of $59.1 million in brokered deposits, compared to $2.62 billion at March 31, 2025, and increased $170.6 million, or 7.2%, from $2.38 billion at June 30, 2024. Noninterest-bearing deposits were $654.1 million at June 30, 2025, $676.7 million at March 31, 2025, and $623.3 million at June 30, 2024;
Borrowings increased $165.5 million, or 240.5% to $234.3 million at June 30, 2025, compared to $68.8 million at March 31, 2025, and increased $52.4 million, or 28.8%, from $181.9 million at June 30, 2024;
Loans receivable, net increased $81.2 million, or 3.2%, to $2.58 billion at June 30, 2025, compared to $2.50 billion at March 31, 2025, and increased $125.1 million, or 5.1%, from $2.46 billion at June 30, 2024;
Consumer loans were $606.3 million at June 30, 2025, a decrease of $2.6 million, or 0.4%, from $608.9 million in the previous quarter, and a decrease of $35.4 million, or 5.5%, from $641.7 million in the comparable quarter one year ago. During the three months ended June 30, 2025, consumer loan originations included 82.5% of home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720;
Repurchased 132,282 shares of the Company’s common stock in the second quarter of 2025 at an average price of $38.92 per share with $725,000 remaining for future purchases under the existing share repurchase plan at June 30, 2025. In addition, as previously announced on July 9, 2025, the Board approved a new share repurchase plan authorizing the repurchase of up to $5.0 million in shares of the Company’s outstanding common stock;
Book value per share increased $0.43 to $39.55 at June 30, 2025, compared to $39.12 at March 31, 2025, and increased $2.40 from $37.15 at June 30, 2024. Tangible book value per share (non-GAAP financial measure) increased $0.50 to $37.46 at June 30, 2025, compared to $36.96 at March 31, 2025, and increased $2.80 from $34.66 at June 30, 2024. See, “Non-GAAP Financial Measures;”
Segment reporting in the second quarter of 2025 reflected net income of $7.4 million for the Commercial and Consumer Banking segment and $351,000 for the Home Lending segment, compared to net income of $7.8 million and $242,000 in the prior quarter, and net income of $8.0 million and $1.0 million in the second quarter of 2024, respectively; and
Regulatory capital ratios at the Bank were 14.1% for total risk-based capital and 11.2% for Tier 1 leverage capital at June 30, 2025, compared to 14.4% for total risk-based capital and 11.3% for Tier 1 leverage capital at March 31, 2025.

Segment Reporting

The Company operates through two reportable segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending and cash management services. This segment also manages the Bank’s investment portfolio and other assets. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.

The tables below provide a summary of segment reporting at or for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

	At or For the Three Months Ended June 30, 2025
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	29,179		$	2,933		$	32,112
Provision for credit losses		(1,849	)		(172	)		(2,021	)
Noninterest income⁽²⁾		2,297			2,873			5,170
Noninterest expense⁽³⁾		(20,313	)		(5,189	)		(25,502	)
Income before provision for income taxes		9,314			445			9,759
Provision for income taxes		(1,937	)		(94	)		(2,031	)
Net income	$	7,377		$	351		$	7,728
Total average assets for period ended	$	2,466,917		$	649,443		$	3,116,360
Full-time employees (“FTEs”)		452			115			567

	At or Three Months Ended June 30, 2024
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	28,051		$	2,350		$	30,401
(Provision) recovery for credit losses		(1,214	)		137			(1,077	)
Noninterest income⁽²⁾		2,269			3,599			5,868
Noninterest expense⁽³⁾		(19,043	)		(4,814	)		(23,857	)
Income before provision for income taxes		10,063			1,272			11,335
Provision for income taxes		(2,113	)		(263	)		(2,376	)
Net income	$	7,950		$	1,009		$	8,959
Total average assets for period ended	$	2,359,741		$	588,090		$	2,947,831
FTEs		450			121			571

	At or For the Six Months Ended June 30, 2025
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	57,586		$	5,507		$	63,093
Provision for credit losses		(3,170	)		(443	)		(3,613	)
Noninterest income⁽²⁾		4,542			5,754			10,296
Noninterest expense⁽³⁾		(40,489	)		(10,067	)		(50,556	)
Income before provision for income taxes		18,469			751			19,220
Provision for income taxes		(3,314	)		(157	)		(3,471	)
Net income	$	15,155		$	594		$	15,749
Total average assets for period ended	$	2,440,654		$	634,013		$	3,074,667
FTEs		452			115			567

	At or For the Six Months Ended June 30, 2024
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	56,137		$	4,610		$	60,747
Provision for credit losses		(2,465	)		(11	)		(2,476	)
Noninterest income⁽²⁾		4,662			6,317			10,979
Noninterest expense⁽³⁾		(38,051	)		(9,335	)		(47,386	)
Income before provision for income taxes		20,283			1,581			21,864
Provision for income taxes		(4,182	)		(326	)		(4,508	)
Net income	$	16,101		$	1,255		$	17,356
Total average assets for period ended	$	2,380,803		$	572,386		$	2,953,189
FTEs		450			121			571

__________________________

(1)		Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.
(2)		Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three and six months ended June 30, 2025, the Company recorded a net increase in fair value of $3,000 and $266,000, respectively, compared to a net increase in fair value of $184,000 and $186,000, respectively for the three and six months ended June 30, 2024. As of June 30, 2025 and 2024, there were $13.2 million and $13.9 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.
(3)		Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three and six months ended June 30, 2025 and 2024, the Home Lending segment included allocated overhead expenses of $1.8 million and $3.7 million, compared to $1.5 million and $3.0 million, respectively.

Asset Summary

The following table presents the components and changes in total assets as of the dates indicated.

ASSETS							Linked Quarter						Prior Year
(Dollars in thousands)	June 30,		March 31,		June 30,		Change						Quarter Change
	2025		2025		2024		$			%			$			%
Cash and due from banks	$	15,168	$	18,657	$	20,005	$	(3,489	)		(19	)%	$	(4,837	)		(24	)%
Interest-bearing deposits at other financial institutions		18,027		44,084		13,006		(26,057	)		(59	)		5,021			39
Total cash and cash equivalents		33,195		62,741		33,011		(29,546	)		(47	)		184			1
Certificates of deposit at other financial institutions		248		1,234		12,707		(986	)		(80	)		(12,459	)		(98	)
Securities available-for-sale, at fair value		302,692		291,133		221,182		11,559			4			81,510			37
Securities held-to-maturity, net		31,562		10,434		8,455		21,128			202			23,107			273
Loans held for sale, at fair value		53,630		31,038		53,811		22,592			73			(181	)		—
Loans receivable, net		2,582,272		2,501,117		2,457,184		81,155			3			125,088			5
Accrued interest receivable		14,270		14,406		13,792		(136	)		(1	)		478			3
Premises and equipment, net		30,098		29,451		29,999		647			2			99			—
Operating lease right-of-use		7,969		4,979		5,784		2,990			60			2,185			38
Federal Home Loan Bank stock, at cost		11,579		5,256		10,322		6,323			120			1,257			12
Deferred tax asset, net		7,782		7,009		4,590		773			11			3,192			70
Bank owned life insurance (“BOLI”), net		38,262		38,778		38,201		(516	)		(1	)		61			—
MSRs, held at the lower of cost or fair value		8,652		8,926		9,352		(274	)		(3	)		(700	)		(7	)
Goodwill		3,592		3,592		3,592		—			—			—			—
Core deposit intangible, net		12,071		12,879		15,483		(808	)		(6	)		(3,412	)		(22	)
Other assets		38,139		43,105		23,912		(4,966	)		(12	)		14,227			59
TOTAL ASSETS	$	3,176,013	$	3,066,078	$	2,941,377	$	109,935			4	%	$	234,636			8	%

The increase in total assets reflects the Company’s continued focus on balance sheet growth through loan origination and selective investment activity, funded by a combination of on-balance sheet liquidity and borrowings.

																						Prior
LOAN PORTFOLIO																			Linked			Year
(Dollars in thousands)																			Quarter			Quarter
COMMERCIAL REAL ESTATE	June 30, 2025						March 31, 2025						June 30, 2024						$			$
(“CRE”) LOANS	Amount			Percent			Amount			Percent			Amount			Percent			Change			Change
CRE owner occupied	$	180,250			6.8	%	$	164,911			6.5	%	$	177,723			7.1	%	$	15,339		$	2,527
CRE non-owner occupied		171,979			6.6			174,188			6.9			181,681			7.3			(2,209	)		(9,702	)
Commercial and speculative construction and development		300,723			11.5			288,978			11.4			220,793			8.9			11,745			79,930
Multi-family		263,185			10.1			244,940			9.7			239,675			9.6			18,245			23,510
Total CRE loans		916,137			35.0			873,017			34.5			819,872			32.9			43,120			96,265

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		639,881			24.4			637,299			25.2			588,966			23.7			2,582			50,915
Home equity		85,613			3.3			73,846			2.9			73,749			3.0			11,767			11,864
Residential custom construction		54,024			2.1			48,810			1.9			53,416			2.1			5,214			608
Total residential real estate loans		779,518			29.8			759,955			30.0			716,131			28.8			19,563			63,387

CONSUMER LOANS
Indirect home improvement		530,375			20.3			532,038			21.0			563,621			22.6			(1,663	)		(33,246	)
Marine		72,765			2.8			73,737			2.9			74,627			3.0			(972	)		(1,862	)
Other consumer		3,151			0.1			3,118			0.1			3,440			0.1			33			(289	)
Total consumer loans		606,291			23.2			608,893			24.0			641,688			25.7			(2,602	)		(35,397	)

COMMERCIAL BUSINESS LOANS
Commercial and industrial (“C&I”)		294,563			11.3			274,956			10.9			285,183			11.6			19,607			9,380
Warehouse lending		17,952			0.7			15,949			0.6			25,548			1.0			2,003			(7,596	)
Total commercial business loans		312,515			12.0			290,905			11.5			310,731			12.6			21,610			1,784
Total loans receivable, gross		2,614,461			100.0	%		2,532,770			100.0	%		2,488,422			100.0	%		81,691			126,039

Allowance for credit losses on loans		(32,189	)					(31,653	)					(31,238	)					(536	)		(951	)
Total loans receivable, net	$	2,582,272					$	2,501,117					$	2,457,184					$	81,155		$	125,088

The composition of CRE loans at the dates indicated were as follows:

(Dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024
CRE by Type:	Amount		Amount		Amount
CRE non-owner occupied:
Office	$	39,141	$	39,406	$	41,380
Retail		38,652		35,520		37,507
Hospitality/restaurant		26,489		27,377		28,314
Self-storage		19,075		19,092		19,141
Mixed use		18,387		18,868		18,062
Industrial		14,444		15,033		17,163
Senior housing/assisted living		7,448		7,506		7,675
Other		3,670		6,579		6,847
Land		2,206		2,314		3,021
Education/worship		2,467		2,493		2,571
Total CRE non-owner occupied		171,979		174,188		181,681
CRE owner occupied:
Industrial		77,419		66,618		63,970
Office		40,156		40,447		41,978
Retail		19,470		20,535		20,885
Other		9,483		8,529		8,354
Hospitality/restaurant		7,230		7,306		10,800
Automobile related		7,215		7,266		8,200
Mixed use		5,548		5,579		5,680
Agriculture		4,652		3,990		3,639
Education/worship		4,630		4,641		4,610
Car wash		4,447		—		9,607
Total CRE owner occupied		180,250		164,911		177,723
Total	$	352,229	$	339,099	$	359,404

The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:

																			Current
(Dollars in																			Weighted
thousands)	For the Quarter Ended																		Average
CRE by type:	Sep 30, 2025		Dec 31, 2025		Mar 31, 2026		Jun 30, 2026		Sep 30, 2026		Dec 31, 2026		Mar 31, 2027		Jun 30, 2027		Total		Rate
Agriculture	$	716	$	314	$	178	$	265	$	287	$	—	$	—	$	—	$	1,760	6.28	%
Apartment		—		13,679		1,128		13,788		9,747		7,062		4,117		—		49,521	4.96	%
Hotel / hospitality		2,393		—		113		1,243		—		—		103		—		3,852	5.26	%
Industrial		—		10,002		976		586		1,578		—		13,412		263		26,817	5.12	%
Mixed use		241		—		7,101		—		—		379		—		—		7,721	8.14	%
Office		15,015		6,055		515		1,629		554		7,695		2,857		1,213		35,533	5.50	%
Other		1,921		240		884		—		—		1,485		—		3,515		8,045	4.80	%
Retail		1,020		—		421		3,448		—		3,399		3,027		2,801		14,116	4.26	%
Education/worship		1,314		—		—		—		2,467		—		—		—		3,781	5.18	%
Senior housing and assisted living		—		—		2,142		—		—		—		—		1,372		3,514	4.76	%
Total	$	22,620	$	30,290	$	13,458	$	20,959	$	14,633	$	20,020	$	23,516	$	9,164	$	154,660	5.22	%

The composition of construction loans at the dates indicated were as follows:

(Dollars in thousands)	June 30, 2025					March 31, 2025					June 30, 2024
Construction Types:	Amount		Percent			Amount		Percent			Amount		Percent
Commercial construction – retail	$	8,447		2.4	%	$	8,157		2.4	%	$	8,698		3.2	%
Commercial construction – office		9,083		2.6			6,487		1.9			4,737		1.7
Commercial construction – self storage		16,553		4.7			16,012		4.7			10,000		3.6
Commercial construction – hotel		3,673		1.0			402		0.1			7,807		2.8
Multi-family		23,119		6.5			31,275		9.3			30,960		11.3
Custom construction – single family residential and single family manufactured residential		45,570		12.8			41,143		12.2			46,106		16.8
Custom construction – land, lot and acquisition and development		8,454		2.4			7,667		2.3			7,310		2.7
Speculative residential construction – vertical		200,375		56.5			186,042		55.1			131,294		47.9
Speculative residential construction – land, lot and acquisition and development		39,473		11.1			40,603		12.0			27,297		10.0
Total	$	354,747		100.0	%	$	337,788		100.0	%	$	274,209		100.0	%

Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:

(Dollars in																Prior Year
thousands)	For the Three Months Ended												Linked Quarter			Quarter
	June 30, 2025				March 31, 2025				June 30, 2024				$		%	$			%
	Amount		Percent		Amount		Percent		Amount		Percent		Change		Change	Change			Change
Purchase	$	170,854	85.7	%	$	120,719	83.0	%	$	193,715	92.3	%	$	50,135	41.5	$	(22,861	)	(11.8	)%
Refinance		28,470	14.3			24,677	17.0			16,173	7.7			3,793	15.4		12,297		76.0	%
Total	$	199,324	100.0	%	$	145,396	100.0	%	$	209,888	100.0	%	$	53,928	37.1	$	(10,564	)	(5.0	)%

(Dollars in thousands)	For the Six Months Ended June 30,
	2025				2024
	Amount		Percent		Amount		Percent		$ Change			% Change
Purchase	$	290,737	84.3	%	$	329,292	90.5	%	$	(38,555	)	(11.7	)	%
Refinance		53,983	15.7			34,545	9.5			19,438		56.3		%
Total	$	344,720	100.0	%	$	363,837	100.0	%	$	(19,117	)	(5.3	)	%

During the quarter ended June 30, 2025, the Company sold $127.1 million of one-to-four-family loans compared to $91.9 million during the previous quarter and $164.5 million during the same quarter one year ago. The increase in the volume of loans sold during the current quarter compared to the prior quarter was primarily due to seasonal factors, including the spring homebuying season. This increased demand for homes generally results in a higher volume of loan originations and, consequently, more loans available for sale. Gross margins on home loan sales decreased to 3.06% for the quarter ended June 30, 2025, compared to 3.26% in the previous quarter and increased from 2.96% in the same quarter one year ago. Gross margins are defined as the margin on loans sold (cash sales) without the impact of deferred costs.

Liabilities and Equity Summary

The following table summarizes the components and changes in deposits, borrowings, equity, and book value per common share at the dates indicated.

(Dollars in thousands)																Linked			Prior Year
Deposits	June 30, 2025					March 31, 2025					June 30, 2024					Quarter			Quarter
Transactional deposits:	Amount		Percent			Amount		Percent			Amount		Percent			$ Change			$ Change
Noninterest-bearing checking	$	643,573		25.2	%	$	659,417		25.2	%	$	613,137		25.7	%	$	(15,844	)	$	30,436
Interest-bearing checking:
Retail deposits		181,240		7.1			171,396		6.6			166,839		7.0			9,844			14,401
Brokered deposits		30,020		1.2			30,073		1.1			—		—			(53	)		30,020
Total interest-bearing checking		211,260		8.3			201,469		7.7			166,839		7.0			9,791			44,421
Escrow accounts related to mortgages serviced⁽¹⁾		10,496		0.4			17,289		0.7			10,212		0.4			(6,793	)		284
Subtotal		865,329		33.9			878,175		33.6			790,188		33.1			(12,846	)		75,141
Savings and money market:
Savings		159,601		6.3			160,332		6.1			151,398		6.4			(731	)		8,203
Money market:
Retail deposits		350,548		13.6			343,098		13.1			339,946		14.2			7,450			10,602
Brokered deposits		251		0.1			251		—			4,049		0.2			—			(3,798	)
Total money market		350,799		13.7			343,349		13.1			343,995		14.4			7,450			6,804
Subtotal		510,400		20.0			503,681		19.2			495,393		20.8			6,719			15,007
Certificates of deposit:
Retail CDs		891,355		34.9			881,630		33.7			823,866		34.6			9,725			67,489
Nonretail CDs:
Online CDs		3,423		0.1			9,354		0.4			9,354		0.4			(5,931	)		(5,931	)
Public CDs		2,114		0.1			2,440		0.1			2,983		0.1			(326	)		(869	)
Brokered CDs		280,754		11.0			339,871		13.0			261,019		11.0			(59,117	)		19,735
Total nonretail CDs		286,291		11.2			351,665		13.5			273,356		11.5			(65,374	)		12,935
Subtotal		1,177,646		46.1			1,233,295		47.2			1,097,222		46.1			(55,649	)		80,424
Total deposits	$	2,553,375		100.0	%	$	2,615,151		100.0	%	$	2,382,803		100.0	%	$	(61,776	)	$	170,572
Borrowings⁽²⁾	$	234,305				$	68,805				$	181,895				$	165,500		$	52,410
Equity	$	297,203				$	298,840				$	284,026				$	(1,637	)	$	13,177
Book value per common share	$	39.55				$	39.12				$	37.15				$	0.43		$	2.40

__________________________

(1)		Primarily noninterest-bearing accounts based on applicable state law.
(2)		Comprised of FHLB advances and Federal Reserve Bank borrowings.

At June 30, 2025, the Bank had uninsured deposits of approximately $677.2 million, compared to approximately $679.4 million at March 31, 2025, and $586.6 million at June 30, 2024. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

In reference to the table above, the linked quarter decrease in stockholders’ equity at June 30, 2025, compared to March 31, 2025, was primarily due to share repurchases of $5.1 million, cash dividends paid of $2.1 million, and $525,000 in equity award compensation, partially offset by net income of $7.7 million. Stockholders’ equity was also impacted by a decline in unrealized fair value on securities available for sale of $1.2 million, net of tax, and fair value and cash flow hedges of $1.6 million, net of tax, reflecting changes in market interest rates during the quarter, resulting in a $2.8 million decrease in accumulated other comprehensive loss, net of tax.

The Bank is considered “well capitalized” under the capital requirement established by the Federal Deposit Insurance Corporation (“FDIC”) and the Company exceeded all regulatory capital requirements. At June 30, 2025, capital ratios presented for the Bank and the Company were as follows:

	At June 30, 2025
	Bank		Company
Total risk-based capital (to risk-weighted assets)	14.07	%	14.16	%
Tier 1 leverage capital (to average assets)	11.18	%	9.65	%
CET 1 capital (to risk-weighted assets)	12.82	%	11.07	%

Credit Quality

The following table summarizes the changes in the ACL on loans, nonperforming loans, and substandard loans at the dates indicated.

ACL ON LOANS	June 30,			March 31,			June 30,			Linked			Prior Year
(Dollars in thousands)	2025			2025			2024			Quarter			Quarter
	Amount			Amount			Amount			$ Change			$ Change
Beginning ACL balance	$	(31,653	)	$	(31,870	)	$	(31,479	)	$	217		$	(174	)
Provision		(1,715	)		(1,505	)		(1,001	)		(210	)		(714	)
Charge-offs
Indirect		1,555			1,579			825			(24	)		730
Marine		43			20			157			23			(114	)
Other		42			37			33			5			9
Commercial business		—			433			733			(433	)		(733	)
Subtotal		1,640			2,069			1,748			(429	)		(108	)
Recoveries
Indirect		(330	)		(340	)		(307	)		10			(23	)
Marine		(54	)		(3	)		(110	)		(51	)		56
Other		(7	)		(4	)		(4	)		(3	)		(3	)
Commercial business		(70	)		—			(85	)		(70	)		15
Subtotal		(461	)		(347	)		(506	)		(114	)		45
Ending ACL balance	$	(32,189	)	$	(31,653	)	$	(31,238	)	$	(536	)	$	(951	)

NONPERFORMING LOANS	June 30,		March 31,		June 30,		Linked			Prior Year
(Dollars in thousands)	2025		2025		2024		Quarter			Quarter
CRE LOANS	Amount		Amount		Amount		$ Change			$ Change
CRE	$	2,046	$	1,196	$	1,116	$	850		$	930
Commercial and speculative construction and development		9,083		6,487		4,737		2,596			4,346
Total CRE loans		11,129		7,683		5,853		3,446			5,276

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		1,809		1,134		170		675			1,639
Home equity		251		252		156		(1	)		95
Total residential real estate loans		2,060		1,386		326		674			1,734

CONSUMER LOANS
Indirect home improvement		3,365		2,821		2,319		544			1,046
Marine		567		648		327		(81	)		240
Other consumer		13		1		6		12			7
Total consumer loans		3,945		3,470		2,652		475			1,293

COMMERCIAL BUSINESS LOANS
C&I		1,862		1,932		2,575		(70	)		(713	)
Total nonperforming loans	$	18,996	$	14,471	$	11,406	$	4,525		$	7,590

The increase in nonaccrual loans during the period was partly driven by a single commercial construction loan, which remains in active development. Ongoing construction disbursements on this loan contributed to a $2.6 million increase from the prior quarter and a $4.3 million increase compared to the same period last year. Increases in consumer loan delinquencies also contributed to the overall rise in nonaccrual loans between the periods.

CRITICIZED LOANS	June 30,		March 31,		June 30,		Linked			Prior Year
(Dollars in thousands)	2025		2025		2024		Quarter			Quarter
CRE LOANS	Amount		Amount		Amount		$ Change			$ Change
CRE	$	2,046	$	2,040	$	3,926	$	6		$	(1,880	)
Commercial and speculative construction and development		9,083		6,487		4,737		2,596			4,346
Total CRE loans		11,129		8,527		8,663		2,602			2,466

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		4,383		3,728		2,854		655			1,529
Home equity		251		252		156		(1	)		95
Total residential real estate loans		4,634		3,980		3,010		654			1,624

CONSUMER LOANS
Indirect home improvement		3,365		2,821		2,319		544			1,046
Marine		567		649		327		(82	)		240
Other consumer		13		1		6		12			7
Total consumer loans		3,945		3,471		2,652		474			1,293

COMMERCIAL BUSINESS LOANS
C&I		5,220		7,524		9,954		(2,304	)		(4,734	)
Total criticized loans	$	24,928	$	23,502	$	24,279	$	1,426		$	649

Operating Results

Net interest income increased $1.7 million to $32.1 million for the three months ended June 30, 2025, from $30.4 million for the three months ended June 30, 2024, primarily due to an increase in total interest income of $2.8 million, partially offset by an increase in interest expense of $1.1 million. The $2.8 million increase in total interest income was primarily due to an increase of $2.6 million in interest income on loans receivable, including fees, primarily as a result of net loan growth. The $1.1 million increase in total interest expense was primarily the result of higher average balances of deposits and borrowings to fund asset growth.

For the six months ended June 30, 2025, net interest income increased $2.3 million to $63.1 million, from $60.7 million for the six months ended June 30, 2024, with a $4.7 million increase in total interest income, partially offset by a $2.3 million increase in interest expense for the same reasons mentioned above.

NIM (annualized) increased one basis point to 4.30% for the three months ended June 30, 2025, from 4.29% for the same period in the prior year and increased four basis points from 4.27% to 4.31% for the six months ended June 30, 2025. The change in NIM for the three and six months ended June 30, 2025, compared to the same period in 2024, reflects the increased yields on interest-earning assets, as a result of loan growth and repricing activity. The improvement also reflects a favorable shift in the asset mix and disciplined management of deposit and funding costs.

The average total cost of funds, including noninterest-bearing checking, increased one basis point to 2.39% for the three months ended June 30, 2025, from 2.38% for the three months ended June 30, 2024. This increase was predominantly due to higher average balances in borrowings. The average cost of funds increased eight basis points to 2.38% for the six months ended June 30, 2025, from 2.30% for the six months ended June 30, 2024, primarily for the same reason noted above as well as growth in the deposit mix from the prior year.

For the three and six months ended June 30, 2025, the provision for credit losses on loans was $2.0 million and $3.6 million, compared to $1.1 million and $2.5 million for the three and six months ended June 30, 2024, respectively. The provision for credit losses on loans reflects net loan growth and an increase in net charge-off activity.

During the three months ended June 30, 2025, net charge-offs decreased $63,000 to $1.2 million, compared to the same period the prior year. During the six months ended June 30, 2025, net charge-offs increased $184,000, to $2.9 million, compared to $2.7 million during the six months ended June 30, 2024. The increase was primarily due to a $1.2 million increase in net charge-offs on indirect home improvement loans, partially offset by a $693,000 decrease in net charge-offs on commercial business loans and a $271,000 decrease in net charge-offs on marine loans. Management attributes the increase in net charge-offs for the current six month period to continued volatile economic conditions.

Total noninterest income decreased $698,000 to $5.2 million for the three months ended June 30, 2025, from $5.9 million for the three months ended June 30, 2024. The decrease primarily reflects a $491,000 decrease in gain on sale of loans, primarily due to a decrease of loans available for sale, a $156,000 decrease in service charges and fee income and a $151,000 decrease in gain on sale of investment securities due to no sales activity in the current quarter compared to the same period last year. Total noninterest income decreased $683,000, to $10.3 million, for the six months ended June 30, 2025, from $11.0 million for the six months ended June 30, 2024. This decrease was primarily the result of a $629,000 decrease in gain on sale of loans, a $464,000 decrease in service charges and fee income, and a net decrease of $368,000 from no activity in gain on sales of MSRs and loss on sale of investment securities compared to an $8.2 million net gain on sale of MSRs, offset by the $7.8 million loss on sale of investment securities that occurred in the first half of 2024. These decreases in total noninterest income were partially offset by a $755,000 increase in other noninterest income as result of sales of nonmarketable equity securities at a $312,000 gain, bank owned life insurance proceeds of $195,000, and a $101,000 increase in brokered loans fees.

Total noninterest expense was $25.5 million for the three months ended June 30, 2025, compared to $23.9 million for the three months ended June 30, 2024. The $1.6 million increase was primarily due to a $710,000 increase in salaries and benefits, primarily due to competitive wage adjustments, a $305,000 increase in operations expense, and a $267,000 increase in professional and board fees. Total noninterest expense increased $3.2 million to $50.6 million for the six months ended June 30, 2025, compared to $47.4 million for the six months ended June 30, 2024. Increases during the six month period ended June 30, 2025, compared to the same period last year included $1.7 million in salaries and benefits, $742,000 in operations expense, and $531,000 in professional and board fees.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 27 bank branches, one headquarters office that provides loans and deposit services, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in Vancouver, Washington. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing economic growth; changes in interest rates and the duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle east, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; adverse changes in the securities markets, the Company’s ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance goals; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC’s website at www.sec.gov.

Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims 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.


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited)

										Linked			Prior Year
	June 30,			March 31,			June 30,			Quarter			Quarter
ASSETS	2025			2025			2024			% Change			% Change
Cash and due from banks	$	15,168		$	18,657		$	20,005			(19	)		(24	)
Interest-bearing deposits at other financial institutions		18,027			44,084			13,006			(59	)		39
Total cash and cash equivalents		33,195			62,741			33,011			(47	)		1
Certificates of deposit at other financial institutions		248			1,234			12,707			(80	)		(98	)
Securities available-for-sale, at fair value		302,692			291,133			221,182			4			37
Securities held-to-maturity, net		31,562			10,434			8,455			202			273
Loans held for sale, at fair value		53,630			31,038			53,811			73			—
Loans receivable, net		2,582,272			2,501,117			2,457,184			3			5
Accrued interest receivable		14,270			14,406			13,792			(1	)		3
Premises and equipment, net		30,098			29,451			29,999			2			—
Operating lease right-of-use		7,969			4,979			5,784			60			38
Federal Home Loan Bank stock, at cost		11,579			5,256			10,322			120			12
Deferred tax asset, net		7,782			7,009			4,590			11			70
Bank owned life insurance (“BOLI”), net		38,262			38,778			38,201			(1	)		—
MSRs, held at the lower of cost or fair value		8,652			8,926			9,352			(3	)		(7	)
Goodwill		3,592			3,592			3,592			—			—
Core deposit intangible, net		12,071			12,879			15,483			(6	)		(22	)
Other assets		38,139			43,105			23,912			(12	)		59
TOTAL ASSETS	$	3,176,013		$	3,066,078		$	2,941,377			4			8
LIABILITIES
Deposits:
Noninterest-bearing accounts	$	654,069		$	676,706		$	623,349			(3	)		5
Interest-bearing accounts		1,899,306			1,938,445			1,759,454			(2	)		8
Total deposits		2,553,375			2,615,151			2,382,803			(2	)		7
Borrowings		234,305			68,805			181,895			241			29
Subordinated notes:
Principal amount		50,000			50,000			50,000			—			—
Unamortized debt issuance costs		(373	)		(389	)		(439	)		(4	)		(15	)
Total subordinated notes less unamortized debt issuance costs		49,627			49,611			49,561			—			—
Operating lease liability		8,138			5,149			5,979			58			36
Other liabilities		33,365			28,522			37,113			17			(10	)
Total liabilities		2,878,810			2,767,238			2,657,351			4			8
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value; 45,000,000 shares authorized; 7,618,543 shares issued and outstanding at June 30, 2025, 7,742,907 at March 31, 2025, and 7,742,607 at June 30, 2024		76			77			77			(1	)		(1	)
Additional paid-in capital		48,418			52,806			55,834			(8	)		(13	)
Retained earnings		268,509			262,945			243,651			2			10
Accumulated other comprehensive loss, net of tax		(19,800	)		(16,988	)		(15,536	)		17			27
Total stockholders’ equity		297,203			298,840			284,026			(1	)		5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,176,013		$	3,066,078		$	2,941,377			4			8


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited)

	Three Months Ended								Linked			Prior Year
	June 30,		March 31,			June 30,			Quarter			Quarter
INTEREST INCOME	2025		2025			2024			% Change			% Change
Loans receivable, including fees	$	45,038	$	43,303		$	42,406			4			6
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions		3,665		3,485			3,534			5			4
Total interest and dividend income		48,703		46,788			45,940			4			6
INTEREST EXPENSE
Deposits		14,520		13,058			13,252			11			10
Borrowings		1,585		2,263			1,801			(30	)		(12	)
Subordinated notes		486		485			486			—			—
Total interest expense		16,591		15,806			15,539			5			7
NET INTEREST INCOME		32,112		30,982			30,401			4			6
PROVISION FOR CREDIT LOSSES		2,021		1,592			1,077			27			88
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		30,091		29,390			29,324			2			3
NONINTEREST INCOME
Service charges and fee income		2,323		2,244			2,479			4			(6	)
Gain on sale of loans		1,972		1,700			2,463			16			(20	)
Gain on sale of investment securities, net		—		—			151			NM			NM
Earnings on cash surrender value of BOLI		254		250			242			2			5
Other noninterest income		621		932			533			(33	)		17
Total noninterest income		5,170		5,126			5,868			1			(12	)
NONINTEREST EXPENSE
Salaries and benefits		14,088		14,533			13,378			(3	)		5
Operations		3,824		3,445			3,519			11			9
Occupancy		1,780		1,717			1,669			4			7
Data processing		2,137		2,045			2,058			4			4
Loan costs		719		548			653			31			10
Professional and board fees		1,155		1,186			888			(3	)		30
FDIC insurance		554		538			450			3			23
Marketing and advertising		398		221			377			80			6
Amortization of core deposit intangible		809		831			919			(3	)		(12	)
Impairment (recovery) of servicing rights		38		(9	)		(54	)		(522	)		(170	)
Total noninterest expense		25,502		25,055			23,857			2			7
INCOME BEFORE PROVISION FOR INCOME TAXES		9,759		9,461			11,335			3			(14	)
PROVISION FOR INCOME TAXES		2,031		1,440			2,376			41			(15	)
NET INCOME	$	7,728	$	8,021		$	8,959			(4	)		(14	)
Basic earnings per share	$	1.00	$	1.02		$	1.15			(2	)		(13	)
Diluted earnings per share	$	0.99	$	1.01		$	1.13			(2	)		(12	)


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited)

	Six Months Ended					Year
	June 30,		June 30,			Over Year
INTEREST INCOME	2025		2024			% Change
Loans receivable, including fees	$	88,340	$	83,403			6
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions		7,150		7,417			(4	)
Total interest and dividend income		95,490		90,820			5
INTEREST EXPENSE
Deposits		27,578		26,134			6
Borrowings		3,848		2,968			30
Subordinated note		971		971			—
Total interest expense		32,397		30,073			8
NET INTEREST INCOME		63,093		60,747			4
PROVISION FOR CREDIT LOSSES		3,613		2,476			46
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		59,480		58,271			2
NONINTEREST INCOME
Service charges and fee income		4,567		5,031			(9	)
Gain on sale of loans		3,672		4,301			(15	)
Gain on sale of MSRs		—		8,215			NM
Loss on sale of investment securities, net		—		(7,847	)		NM
Earnings on cash surrender value of BOLI		505		482			5
Other noninterest income		1,552		797			95
Total noninterest income		10,296		10,979			(6	)
NONINTEREST EXPENSE
Salaries and benefits		28,621		26,935			6
Operations		7,269		6,527			11
Occupancy		3,496		3,374			4
Data processing		4,182		4,016			4
Loan costs		1,267		1,238			2
Professional and board fees		2,342		1,811			29
FDIC insurance		1,092		982			11
Marketing and advertising		619		604			2
Amortization of core deposit intangible		1,639		1,860			(12	)
Impairment of servicing rights		29		39			(26	)
Total noninterest expense		50,556		47,386			7
INCOME BEFORE PROVISION FOR INCOME TAXES		19,220		21,864			(12	)
PROVISION FOR INCOME TAXES		3,471		4,508			(23	)
NET INCOME	$	15,749	$	17,356			(9	)
Basic earnings per share	$	2.02	$	2.23			(9	)
Diluted earnings per share	$	1.99	$	2.20			(10	)

KEY FINANCIAL RATIOS AND DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			June 30,
PERFORMANCE RATIOS:	2025			2025			2024
Return on assets (ratio of net income to average total assets)⁽¹⁾		0.99	%		1.07	%		1.22	%
Return on equity (ratio of net income to average total stockholders’ equity)⁽¹⁾		10.29			10.80			12.72
Yield on average interest-earning assets⁽¹⁾		6.52			6.53			6.48
Average total cost of funds⁽¹⁾		2.39			2.38			2.38
Interest rate spread information – average during period		4.13			4.15			4.10
Net interest margin⁽¹⁾		4.30			4.32			4.29
Operating expense to average total assets⁽¹⁾		3.28			3.35			3.26
Average interest-earning assets to average interest-bearing liabilities⁽¹⁾		140.98			142.94			143.64
Efficiency ratio⁽²⁾		68.40			69.39			65.78
Common equity ratio (ratio of stockholders’ equity to total assets)		9.36			9.75			9.66
Tangible common equity ratio⁽³⁾		8.91			9.26			9.07

	For the Six Months Ended
	June 30,			June 30,
PERFORMANCE RATIOS:	2025			2024
Return on assets (ratio of net income to average total assets)		1.03	%		1.18	%
Return on equity (ratio of net income to average total stockholders’ equity)		10.55			12.51
Yield on average interest-earning assets		6.52			6.39
Average total cost of funds		2.38			2.30
Interest rate spread information – average during period		4.14			4.09
Net interest margin		4.31			4.27
Operating expense to average total assets		3.32			3.23
Average interest-earning assets to average interest-bearing liabilities		141.93			144.07
Efficiency ratio⁽²⁾		68.89			66.07

	June 30,			March 31,			June 30,
ASSET QUALITY RATIOS AND DATA:	2025			2025			2024
Nonperforming assets to total assets at end of period⁽⁴⁾		0.60	%		0.47	%		0.39	%
Nonperforming loans to total gross loans (excluding loans HFS)⁽⁵⁾		0.73			0.57			0.46
Allowance for credit losses – loans to nonperforming loans⁽⁵⁾		168.89			219.08			273.95
Allowance for credit losses – loans to total gross loans (excluding loans HFS)		1.23			1.25			1.26

	At or For the Three Months Ended
	June 30,			March 31,			June 30,
PER COMMON SHARE DATA:	2025			2025			2024
Basic earnings per share	$	1.00		$	1.02		$	1.15
Diluted earnings per share	$	0.99		$	1.01		$	1.13
Weighted average basic shares outstanding		7,580,576			7,695,320			7,688,246
Weighted average diluted shares outstanding		7,698,173			7,805,728			7,796,253
Common shares outstanding at end of period		7,515,480	⁽⁶⁾		7,639,844	⁽⁷⁾		7,644,463	⁽⁸⁾
Book value per share using common shares outstanding	$	39.55		$	39.12		$	37.15
Tangible book value per share using common shares outstanding⁽⁹⁾	$	37.46		$	36.96		$	34.66

__________________________

(1)		Annualized.
(2)		Total noninterest expense as a percentage of net interest income and total noninterest income.
(3)		Represents a non-GAAP financial measure. For a reconciliation to the most comparable GAAP financial measure, see “Non-GAAP Financial Measures” below.
(4)		Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets.
(5)		Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.
(6)		Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares.
(7)		Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 unvested restricted stock shares.
(8)		Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares.
(9)		Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.

(Dollars in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,				QTR Over QTR			YTD Over YTD
Average Balances	2025		2024		2025		2024		$ Change			$ Change
Assets
Loans receivable, net⁽¹⁾	$	2,612,959	$	2,511,326	$	2,586,598	$	2,487,964	$	101,633		$	98,634
Securities available-for-sale, at amortized cost		332,705		283,422		321,622		307,417		49,283			14,205
Securities held-to-maturity		21,401		8,500		15,063		8,500		12,901			6,563
Interest-bearing deposits and certificates of deposit at other financial institutions		8,775		41,613		10,353		50,563		(32,838	)		(40,210	)
FHLB stock, at cost		19,502		7,040		17,840		4,607		12,462			13,233
Total interest-earning assets		2,995,342		2,851,901		2,951,476		2,859,051		143,441			92,425
Noninterest-earning assets		121,018		95,930		123,191		94,138		25,088			29,053
Total assets	$	3,116,360	$	2,947,831	$	3,074,667	$	2,953,189	$	168,529		$	121,478
Liabilities
Interest-bearing deposit accounts	$	1,924,586	$	1,794,966	$	1,845,534	$	1,813,865	$	129,620		$	31,669
Borrowings		150,492		140,964		184,377		121,057		9,528			63,320
Subordinated notes		49,617		49,550		49,608		49,542		67			66
Total interest-bearing liabilities		2,124,695		1,985,480		2,079,519		1,984,464		139,215			95,055
Noninterest-bearing deposit accounts		657,820		637,345		660,805		647,214		20,475			13,591
Other noninterest-bearing liabilities		32,700		41,785		33,218		42,516		(9,085	)		(9,298	)
Total liabilities	$	2,815,215	$	2,664,610	$	2,773,542	$	2,674,194	$	150,605		$	99,348

__________________________

(1)		Includes loans HFS.

Non-GAAP Financial Measures:

In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release presents non-GAAP financial measures that include tangible book value per share, and tangible common equity ratio. Management believes that providing the Company’s tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company’s capital over time and to its competitors. Where applicable, the Company has also presented comparable GAAP information.

These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.

(Dollars in thousands, except share and per share amounts)	June 30,				March 31,				June 30,
Tangible Book Value Per Share:	2025				2025				2024
Stockholders’ equity (GAAP)	$	297,203			$	298,840			$	284,026
Less: goodwill and core deposit intangible, net		(15,663	)			(16,471	)			(19,075	)
Tangible common stockholders’ equity (non-GAAP)	$	281,540			$	282,369			$	264,951

Common shares outstanding at end of period		7,515,480		⁽¹⁾		7,639,844		⁽²⁾		7,644,463		⁽³⁾

Book value per share (GAAP)	$	39.55			$	39.12			$	37.15
Tangible book value per share (non-GAAP)	$	37.46			$	36.96			$	34.66

Tangible Common Equity Ratio:
Total assets (GAAP)	$	3,176,013			$	3,066,078			$	2,941,377
Less: goodwill and core deposit intangible assets		(15,663	)			(16,471	)			(19,075	)
Tangible assets (non-GAAP)	$	3,160,350			$	3,049,607			$	2,922,302

Common equity ratio (GAAP)		9.36		%		9.75		%		9.66		%
Tangible common equity ratio (non-GAAP)		8.91				9.26				9.07

_________________________

(1)		Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares.
(2)		Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 unvested restricted stock shares.
(3)		Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares.

Contacts:
Joseph C. Adams,
Chief Executive Officer
Matthew D. Mullet,
President
Phillip D. Whittington,
Chief Financial Officer

(425) 771-5299
www.FSBWA.com

The MIL Network –

July 23, 2025

MIL-OSI: Orrstown Financial Services, Inc. Reports Second Quarter 2025 Results and Announces Dividend Increase

Source: GlobeNewswire (MIL-OSI)

Net income of $19.4 million, or $1.01 per diluted share, for the three months ended June 30, 2025 compared to net income of $18.1 million, or $0.93 per diluted share, for the three months ended March 31, 2025; the second quarter of 2025 included $1.0 million in merger-related expenses compared to $1.6 million in merger-related expenses for the first quarter of 2025;
Excluding the impact of the merger-related expenses referenced above, net of taxes, net income and diluted earnings per share were $20.2 million⁽¹⁾ and $1.04⁽¹⁾, respectively, for the second quarter of 2025 compared to $19.3 million⁽¹⁾ and $1.00⁽¹⁾, respectively, for the first quarter of 2025;
Net interest margin, on a tax equivalent basis, was 4.07% in the second quarter of 2025 compared to 4.00% in the first quarter of 2025; the net accretion of purchase accounting marks positively impacted the margin by 50 basis points in the second quarter of 2025;
Return on average assets was 1.45% and return on average equity was 14.56% for the three months ended June 30, 2025, compared to 1.35% and 13.98% for the return on average assets and return on average equity, respectively, for the three months ended March 31, 2025;
Excluding the impact of the merger-related expenses referenced above, net of taxes, adjusted return on average assets was 1.51%⁽¹⁾ and adjusted return on average equity was 15.12%⁽¹⁾ for the three months ended June 30, 2025 compared to 1.45%⁽¹⁾ and 14.97%⁽¹⁾, respectively, for the three months ended March 31, 2025;
Loans increased by $55.4 million, or 6% annualized, from March 31, 2025 to June 30, 2025; classified loans decreased by $10.4 million from $76.2 million at March 31, 2025 to $65.8 million at June 30, 2025;
Noninterest income increased by $1.3 million from $11.6 million for the three months ended March 31, 2025 to $12.9 million for the three months ended June 30, 2025;
Noninterest expense decreased by $0.6 million from $38.2 million for the three months ended March 31, 2025 to $37.6 million for the three months ended June 30, 2025, reflecting a decline in merger-related expenses during the second quarter of 2025; merger-related costs are not expected to be meaningful going forward; the second quarter of 2025 also included $0.6 million of severance charges in salaries and employee benefits expense;
Efficiency ratio decreased from 63.2% for the three months ended March 31, 2025 to 60.3% for the three months ended June 30, 2025; excluding the impact of the merger-related expenses, the efficiency ratio was 58.7%⁽¹⁾ for the three months ended June 30, 2025 compared to 60.5%⁽¹⁾ for the three months ended March 31, 2025;
Tangible common equity increased to 8.3% at June 30, 2025 compared to 7.9% at March 31, 2025;
Tangible book value per common share⁽¹⁾ increased to $22.77 per share at June 30, 2025 compared to $21.99 per share at March 31, 2025;
The Board of Directors authorized a share repurchase program on June 20, 2025, through which the Company could repurchase up to 500,000 shares of its common stock;
The Board of Directors declared a cash dividend of $0.27 per common share, payable August 12, 2025, to shareholders of record as of August 5, 2025; this represents a $0.01 per share increase in the Company’s quarter cash dividend; the dividend has increased by 35% since the closing of the merger with Codorus Valley Bancorp.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

HARRISBURG, Pa., July 22, 2025 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the periods ended June 30, 2025. Net income totaled $19.4 million for the three months ended June 30, 2025, compared to net income of $18.1 million for the three months ended March 31, 2025 and net income of $7.7 million for the three months ended June 30, 2024. Diluted earnings per share was $1.01 for the three months ended June 30, 2025, compared to diluted earnings per share of $0.93 for the three months ended March 31, 2025 and diluted earnings per share of $0.73 for the three months ended June 30, 2024. For the second quarter of 2025, excluding the impact of merger-related expenses, net of taxes, net income and diluted earnings per share were $20.2 million⁽¹⁾ and $1.04⁽¹⁾, respectively. For the first quarter of 2025, excluding the impact of merger-related expenses, net of taxes, net income and diluted earnings per share were $19.3 million⁽¹⁾ and $1.00⁽¹⁾, respectively. For the second quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $8.7 million⁽¹⁾ and $0.83⁽¹⁾, respectively.

“At the one-year mark after the merger with Codorus Valley Bancorp, we are very pleased to have achieved metrics near top of peers, with significant upside opportunities in front of us,” said Thomas R. Quinn, Jr., President and Chief Executive Officer. “In the second quarter, we experienced positive traction on loan production. While commercial loan growth was lower than expected, our pipeline remains strong as we head into the third quarter. We remain prudent with our lending decisions and will not compromise on credit quality. Net interest margin improved in the quarter with good momentum going into the remainder of the year. While expenses remain slightly elevated, we do not anticipate any further meaningful merger-related expenses and continue to implement process improvements that will enhance efficiency and facilitate future growth. We believe that our strong credit metrics and capital generation have positioned us well for the future.”

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

DISCUSSION OF RESULTS

Balance Sheet

Loans

Loans held for investment increased by $55.4 million and totaled $3.9 billion at both June 30, 2025 and March 31, 2025. Commercial loans increased by $16.1 million, or 2% annualized, and residential mortgages increased by $37.9 million from March 31, 2025 to June 30, 2025. The increase in loans included a purchase of property assessed clean energy (“PACE”) loans totaling $25.4 million.

Investment Securities

Investment securities, all of which are classified as available-for-sale, increased by $29.9 million to $885.4 million at June 30, 2025 from $855.5 million at March 31, 2025. During the second quarter of 2025, the Bank purchased $50.1 million of investment securities, which was partially offset by paydowns totaling $20.4 million. The overall duration of the Company’s investment securities portfolio was 4.5 years at June 30, 2025 compared to 4.3 years at March 31, 2025. See Appendix B for a summary of the Bank’s investment securities at June 30, 2025, highlighting their concentrations, credit ratings and credit enhancement levels.

Deposits

During the second quarter of 2025, deposits decreased by $117.1 million and totaled $4.5 billion at June 30, 2025 compared to $4.6 billion March 31, 2025. Time deposits, money market deposits, non-interest bearing demand deposits, saving deposits and interest-bearing demand deposits decreased by $58.0 million, $35.8 million, $13.9 million, $6.2 million and $3.2 million, respectively, from March 31, 2025 to June 30, 2025. The declines in time deposits and money market deposits are due to continued run-off in higher yielding promotional balances. The decreases in the other categories were consistent with normal cyclical activity. As a result of the decrease in total deposits, the Bank’s loan-to-deposit ratio increased to 87% at June 30, 2025 from 84% at March 31, 2025.

Borrowings

The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $136.3 million at June 30, 2025 compared to $100.3 million at March 31, 2025. The increase was due to higher utilization of overnight borrowings during the second quarter of 2025 as deposit balances declined and lending and investing activities increased. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.7 billion at June 30, 2025.

Income Statement

Net Interest Income and Margin

Net interest income was $49.5 million for the three months ended June 30, 2025 compared to $48.8 million for the three months ended March 31, 2025. The net interest margin, on a tax equivalent basis, increased to 4.07% in the second quarter of 2025 from 4.00% in the first quarter of 2025. This increase is primarily the result of the cost of funds declining by 12 basis points from the first quarter of 2025 to the second quarter of 2025. This was partially offset by a decrease of seven basis points in the yield on loans from the three months ended March 31, 2025 to the three months ended June 30, 2025. This decrease was due to a reduction in accelerated accretion on acquired loans over that period. The second quarter 2025 net interest margin reflects the full impact of deposit rate reductions implemented in the prior quarter as well as the runoff of higher rate time deposits and money market balances.

The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, securities, deposits and borrowings of $5.2 million during the second quarter of 2025 compared to $6.9 million for the first quarter of 2025. This change was due primarily to lower accelerated accretion in the three months ended June 30, 2025.

Interest income on loans, on a tax equivalent basis, decreased by $0.4 million to $63.2 million for the three months ended June 30, 2025 compared to $63.6 million for the three months ended March 31, 2025. Average loans decreased by $14.7 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The accretion of purchase accounting marks on loans totaled $4.9 million during the second quarter of 2025 compared to $6.6 million during the first quarter of 2025.

Interest income on investment securities, on a tax equivalent basis, was $10.6 million for the second quarter of 2025 compared to $10.1 million in the first quarter of 2025, an increase of $0.5 million. Average investment securities increased by $39.0 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025 primarily due to the aforementioned purchases.

Interest expense, on a tax equivalent basis, decreased by $1.5 million to $25.3 million for the three months ended June 30, 2025 compared to $26.8 million for the three months ended March 31, 2025. Average interest-bearing deposits decreased by $70.3 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The cost of interest-bearing deposits declined by 14 basis points from the first quarter of 2025 to the second quarter of 2025. In addition, interest expense includes $0.4 million and $0.6 million of amortization of purchase accounting marks on interest bearing liabilities for the three months ended June 30, 2025 and March 31, 2025, respectively.

Provision for Credit Losses on Loans

The allowance for credit losses (“ACL”) on loans increased to $47.9 million at June 30, 2025 from $47.8 million at March 31, 2025. The ACL to total loans was 1.22% at June 30, 2025 compared to 1.23% at March 31, 2025. The Company recorded provision expense of $0.2 million for the three months ended June 30, 2025 compared to a recovery in the provision for credit losses on loans of $0.6 million for the three months ended March 31, 2025 . Net charge-offs were $0.1 million for the three months ended June 30, 2025 compared to $0.3 million for the three months ended March 31, 2025.

Classified loans decreased by $10.4 million to $65.8 million at June 30, 2025 from $76.2 million at March 31, 2025 due to net upgrades and loan repayments. Non-accrual loans totaled $22.4 million at June 30, 2025 compared to $22.7 million at March 31, 2025. Nonaccrual loans to total loans decreased to 0.57% at June 30, 2025 compared to 0.59% at March 31, 2025. Management believes the ACL to be adequate based on current asset quality metrics and economic forecasts.

Noninterest Income

Noninterest income increased by $1.3 million to $12.9 million for the three months ended June 30, 2025 from $11.6 million for the three months ended March 31, 2025.

Swap fee income increased by $0.3 million to $0.7 million for the three months ended June 30, 2025 compared to $0.4 million for the three months ended March 31, 2025. Swap fee income will fluctuate based on market conditions and client demand.

Income from service charges was $2.6 million for the three months ended June 30, 2025 compared to $2.4 million for the three months ended March 31, 2025 based on increased cash management services activity.

Income from mortgage banking activities increased by $0.2 million from $0.3 million in the three months ended March 31, 2025 to $0.5 million in the three months ended June 30, 2025. The first quarter of 2025 included a decrease of $0.2 million in the fair value of mortgage servicing rights.

Wealth management income decreased by $0.2 million to $5.2 million for the three months ended June 30, 2025 compared to $5.4 million for the three months ended March 31, 2025.

Other income increased by $0.7 million to $2.4 million for the three months ended June 30, 2025 compared to $1.7 million for the three months ended March 31, 2025. During the second quarter of 2025, the Bank recorded $0.3 million in solar tax credits and a gain on the sale of other real estate owned of $0.1 million.

Noninterest Expenses

Noninterest expenses decreased by $0.6 million to $37.6 million in the three months ended June 30, 2025 from $38.2 million in the three months ended March 31, 2025.

For the three months ended June 30, 2025, merger-related expenses totaled $1.0 million, a decrease of $0.6 million, compared to $1.6 million for the three months ended March 31, 2025. The merger-related costs incurred in the second quarter of 2025 primarily included software conversion costs. The Company does not expect to incur meaningful merger-related expenses going forward.

Salaries and benefits expense increased by $1.0 million to $21.4 million for the three months ended June 30, 2025 compared to $20.4 million for the three months ended March 31, 2025. The increase during the second quarter of 2025 includes $0.6 million of severance costs, the impact of merit salary increases in May and the impact of one extra day in the quarter.

Occupancy, furniture and equipment expenses decreased by $0.5 million to $4.2 million for the three months ended June 30, 2025 from $4.7 million for the three months ended March 31, 2025 primarily due to the seasonal expenses incurred during the first quarter of 2025.

Professional services expense increased by $0.2 million from the three months ended March 31, 2025 to the three months ended June 30, 2025. During the quarter, the Company continued to utilize an elevated level of third-party assistance to enhance daily functions and operational processes throughout the organization. While the Company will remain reliant on these services into the second half of 2025, the Company expects expenses related to these services to decline beginning in the third quarter of 2025.

Advertising and bank promotions expense increased by $0.6 million to $1.1 million in the three months ended June 30, 2025 from $0.5 million in the three months ended March 31, 2025 due to $0.7 million in contributions to tax credit programs during the second quarter of 2025. Taxes other than income decreased by $0.6 million in the three months ended June 30, 2025 compared to the three months ended March 31, 2025. This decrease reflects the tax impact of the contributions referenced above.

Income Taxes

The Company’s effective tax rate was 21.3% for the second quarter of 2025 compared to 20.7% for the first quarter of 2025. The Company’s effective tax rate for the three months ended June 30, 2025 is greater than the 21% federal statutory rate primarily due to the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 partially offset by the benefit of tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

Capital

Shareholders’ equity totaled $548.4 million at June 30, 2025 compared to $532.9 million at March 31, 2025. The increase is due to net income of $19.4 million and share-based compensation activity of $1.6 million, partially offset by dividend payments of $5.1 million and other comprehensive losses of $0.5 million.

Tangible book value per common share⁽¹⁾ increased to $22.77 per share at June 30, 2025 from $21.99 per share at March 31, 2025. The Company’s tangible common equity ratio was 8.3% at June 30, 2025 compared to 7.9% at March 31, 2025. Average tangible common equity per common share⁽¹⁾ was $18.43 at June 30, 2025 compared to $17.91 at March 31, 2025.

The Company’s capital ratios increased during the three months ended June 30, 2025 due primarily to earnings. The Company’s tier 1 common equity, tier 1 and total risk-based capital ratios were 10.9%, 11.1% and 13.3%, respectively, at June 30, 2025 compared to 10.6%, 10.8% and 13.1%, respectively, at March 31, 2025. The Company’s Tier 1 leverage ratio increased to 9.0% at June 30, 2025 compared to 8.6% at March 31, 2025.

At June 30, 2025, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

The Board of Directors authorized a share repurchase program on June 20, 2025, through which the Company could repurchase up to 500,000 shares of its common stock. The Company repurchased 2,134 common shares during the second quarter of 2025.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

Investor Relations Contact:

Neelesh Kalani

Executive Vice President, Chief Financial Officer

Phone (717) 510-7097

FINANCIAL HIGHLIGHTS (Unaudited)


	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)		2025			2024			2025			2024

Profitability for the period:
Net interest income	$	49,512		$	26,103		$	98,273		$	52,984
Provision for (Recovery of) credit losses – loans		209			812			(345	)		1,233
Recovery of credit losses – unfunded loan commitments		(100	)		—			(100	)		(123	)
Noninterest income		12,915			7,172			24,539			13,802
Noninterest expenses		37,614			22,639			75,790			45,108
Income before income tax expense		24,704			9,824			47,467			20,568
Income tax expense		5,256			2,086			9,968			4,299
Net income available to common shareholders	$	19,448		$	7,738		$	37,499		$	16,269

Financial ratios:
Return on average assets ⁽¹⁾		1.45	%		0.97	%		1.40	%		1.04	%
Return on average assets, adjusted ^{(1) (2) (3)}		1.51	%		1.09	%		1.48	%		1.14	%
Return on average equity ⁽¹⁾		14.56	%		11.41	%		14.28	%		12.09	%
Return on average equity, adjusted ^{(1) (2) (3)}		15.12	%		12.88	%		15.05	%		13.33	%
Net interest margin ⁽¹⁾		4.07	%		3.54	%		4.04	%		3.65	%
Efficiency ratio		60.3	%		68.0	%		61.7	%		67.5	%
Efficiency ratio, adjusted ^{(2) (3)}		58.7	%		64.6	%		59.6	%		64.8	%
Income per common share:
Basic	$	1.01		$	0.74		$	1.96		$	1.57
Basic, adjusted ^{(2) (3)}	$	1.05		$	0.84		$	2.06		$	1.73
Diluted	$	1.01		$	0.73		$	1.94		$	1.55
Diluted, adjusted ^{(2) (3)}	$	1.04		$	0.83		$	2.04		$	1.71

Average equity to average assets		9.97	%		8.50	%		9.81	%		8.58	%

⁽¹⁾ Annualized for the three and six months ended June 30, 2025 and 2024.
⁽²⁾ Ratio has been adjusted for the non-recurring charges for all periods presented.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

FINANCIAL HIGHLIGHTS (Unaudited)
(continued)
	June 30,			December 31,
(Dollars in thousands, except per share amounts)		2025			2024
At period-end:
Total assets	$	5,387,645		$	5,441,589
Loans, net of allowance for credit losses		3,883,481			3,882,525
Loans held-for-sale, at fair value		5,206			6,614
Securities available for sale, at fair value		885,373			829,711
Total deposits		4,516,625			4,623,096
FHLB advances and other borrowings and Securities sold under agreements to repurchase		166,381			141,227
Subordinated notes and trust preferred debt		69,021			68,680
Shareholders’ equity		548,448			516,682

Credit quality and capital ratios ⁽¹⁾:
Allowance for credit losses to total loans		1.22	%		1.24	%
Total nonaccrual loans to total loans		0.57	%		0.61	%
Nonperforming assets to total assets		0.42	%		0.45	%
Allowance for credit losses to nonaccrual loans		214	%		202	%
Total risk-based capital:
Orrstown Financial Services, Inc.		13.3	%		12.4	%
Orrstown Bank		13.3	%		12.4	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		11.1	%		10.2	%
Orrstown Bank		12.1	%		11.2	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		10.9	%		10.0	%
Orrstown Bank		12.1	%		11.2	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		9.0	%		8.3	%
Orrstown Bank		9.8	%		9.1	%

Book value per common share	$	28.07		$	26.65

⁽¹⁾ Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.

ORRSTOWN FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands, except per share amounts)	June 30, 2025			December 31, 2024
Assets
Cash and due from banks	$	54,335		$	51,026
Interest-bearing deposits with banks		95,042			197,848
Cash and cash equivalents		149,377			248,874
Restricted investments in bank stocks		21,204			20,232
Securities available for sale (amortized cost of $916,830 and $864,920 at June 30, 2025 and December 31, 2024, respectively)		885,373			829,711
Loans held for sale, at fair value		5,206			6,614
Loans		3,931,379			3,931,214
Less: Allowance for credit losses		(47,898	)		(48,689	)
Net loans		3,883,481			3,882,525
Premises and equipment, net		51,703			50,217
Cash surrender value of life insurance		145,760			143,854
Goodwill		69,751			68,106
Other intangible assets, net		42,748			47,765
Accrued interest receivable		19,958			21,058
Deferred tax assets, net		36,683			42,647
Other assets		76,401			79,986
Total assets	$	5,387,645		$	5,441,589

Liabilities
Deposits:
Noninterest-bearing	$	918,263		$	894,176
Interest-bearing		3,598,362			3,728,920
Total deposits		4,516,625			4,623,096
Securities sold under agreements to repurchase and federal funds purchased		30,047			25,863
FHLB advances and other borrowings		136,334			115,364
Subordinated notes and trust preferred debt		69,021			68,680
Other liabilities		87,170			91,904
Total liabilities		4,839,197			4,924,907

Shareholders’ Equity
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding		—			—
Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,713,126 shares issued and 19,535,835 outstanding at June 30, 2025; 19,722,640 shares issued and 19,389,967 outstanding at December 31, 2024		1,026			1,027
Additional paid—in capital		422,349			423,274
Retained earnings		153,923			126,540
Accumulated other comprehensive loss		(24,479	)		(26,316	)
Treasury stock— 177,291 and 332,673 shares, at cost at June 30, 2025 and December 31, 2024, respectively		(4,371	)		(7,843	)
Total shareholders’ equity		548,448			516,682
Total liabilities and shareholders’ equity	$	5,387,645		$	5,441,589

ORRSTOWN FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)		2025			2024			2025			2024
Interest income
Loans	$	63,036		$	35,537		$	126,468		$	71,770
Investment securities – taxable		9,406			4,999			18,350			9,583
Investment securities – tax-exempt		878			881			1,753			1,758
Short-term investments		1,513			1,864			3,781			2,820
Total interest income		74,833			43,281			150,352			85,931
Interest expense
Deposits		22,855			15,265			47,115			28,781
Securities sold under agreements to repurchase and federal funds purchased		106			27			190			52
FHLB advances and other borrowings		1,030			1,152			2,148			2,626
Subordinated notes and trust preferred debt		1,330			734			2,626			1,488
Total interest expense		25,321			17,178			52,079			32,947
Net interest income		49,512			26,103			98,273			52,984
Provision for (Recovery of) credit losses – loans		209			812			(345	)		1,233
Recovery of credit losses – unfunded loan commitments		(100	)		—			(100	)		(123	)
Net interest income after provision for (recovery of) credit losses		49,403			25,291			98,718			51,874
Noninterest income
Service charges		2,630			1,283			5,025			2,483
Interchange income		1,441			961			2,868			1,872
Swap fee income		669			375			1,063			574
Wealth management income		5,267			3,312			10,682			6,414
Mortgage banking activities		478			369			780			827
Investment securities gains (losses)		8			(12	)		21			(17	)
Other income		2,422			884			4,100			1,649
Total noninterest income		12,915			7,172			24,539			13,802
Noninterest expenses
Salaries and employee benefits		21,364			13,195			41,752			26,947
Occupancy, furniture and equipment		4,211			2,705			8,886			5,344
Data processing		965			1,237			1,889			2,502
Advertising and bank promotions		1,077			774			1,576			1,172
FDIC insurance		674			419			1,498			860
Professional services		2,016			801			3,842			1,432
Taxes other than income		295			49			1,237			543
Intangible asset amortization		2,472			215			5,007			440
Merger-related expenses		968			1,135			2,617			1,807
Restructuring expenses		—			—			91			—
Other operating expenses		3,572			2,109			7,395			4,061
Total noninterest expenses		37,614			22,639			75,790			45,108
Income before income tax expense		24,704			9,824			47,467			20,568
Income tax expense		5,256			2,086			9,968			4,299
Net income	$	19,448		$	7,738		$	37,499		$	16,269

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
		2025			2024			2025			2024
Share information:
Basic earnings per share	$	1.01		$	0.74		$	1.96		$	1.57
Diluted earnings per share	$	1.01		$	0.73		$	1.94		$	1.55
Dividends paid per share	$	0.26		$	0.20		$	0.52		$	0.40
Weighted average shares – basic		19,173			10,393			19,165			10,371
Weighted average shares – diluted		19,342			10,553			19,335			10,517

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
	Three Months Ended
	6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
(In thousands)			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-
	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent
	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	136,106	$	1,513		4.46%	$	203,347	$	2,268		4.52%	$	199,236	$	2,492		4.96%	$	184,465	$	2,452		5.29%	$	142,868	$	1,864		5.25%
Investment securities ⁽¹⁾⁽²⁾		904,119		10,626		4.70		865,126		10,052		4.65		849,389		9,887		4.66		849,700		10,123		4.77		538,451		6,114		4.54
Loans ^(1)(3)(4)(5)		3,894,979		63,246		6.52		3,909,694		63,641		6.59		3,961,269		68,073		6.82		3,989,259		70,849		7.07		2,324,942		35,690		6.17
Total interest-earning assets		4,935,203		75,385		6.13		4,978,167		75,961		6.17		5,009,894		80,452		6.38		5,023,424		83,424		6.61		3,006,261		43,668		5.84
Other assets		439,569						447,530						454,271						491,719						204,863
Total assets	$	5,374,772					$	5,425,697					$	5,464,165					$	5,515,143					$	3,211,124
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	2,463,687		13,880		2.26	$	2,473,543		14,156		2.32	$	2,522,885		15,575		2.45	$	2,554,743		16,165		2.52	$	1,649,753		10,118		2.47
Savings deposits		269,309		165		0.25		273,313		165		0.25		272,718		166		0.24		283,337		148		0.21		165,467		140		0.34
Time deposits		914,108		8,810		3.87		970,588		9,939		4.15		998,963		11,109		4.41		1,014,628		12,290		4.82		481,721		5,007		4.18
Total interest-bearing deposits		3,647,104		22,855		2.51		3,717,444		24,260		2.65		3,794,566		26,850		2.81		3,852,708		28,603		2.95		2,296,941		15,265		2.67
Securities sold under agreements to repurchase and federal funds purchased		25,917		106		1.64		26,163		84		1.30		21,572		67		1.23		23,075		96		1.66		13,412		27		0.81
FHLB advances and other borrowings		104,068		1,030		3.97		112,859		1,118		4.02		115,373		1,165		4.01		115,388		1,154		3.98		115,000		1,152		4.03
Subordinated notes and trust preferred debt		68,910		1,330		7.74		68,739		1,296		7.65		68,571		1,360		7.88		68,399		1,437		8.36		32,118		734		9.19
Total interest-bearing liabilities		3,845,999		25,321		2.64		3,925,205		26,758		2.76		4,000,082		29,442		2.92		4,059,570		31,290		3.07		2,457,471		17,178		2.81
Noninterest-bearing demand deposits		904,031						887,726						849,999						807,886						423,037
Other liabilities		89,058						89,077						97,685						110,017						57,828
Total liabilities		4,839,088						4,902,008						4,947,766						4,977,473						2,938,336
Shareholders’ equity		535,684						523,689						516,399						537,670						272,788
Total	$	5,374,772					$	5,425,697					$	5,464,165					$	5,515,143					$	3,211,124
Taxable-equivalent net interest income / net interest spread				50,064		3.49%				49,203		3.41%				51,010		3.46%				52,134		3.55%				26,490		3.02%
Taxable-equivalent net interest margin						4.07%						4.00%						4.05%						4.14%						3.54%
Taxable-equivalent adjustment				(552	)					(442	)					(437	)					(437	)					(387	)
Net interest income			$	49,512					$	48,761					$	50,573					$	51,697					$	26,103
Ratio of average interest-earning assets to average interest-bearing liabilities						128%						127%						125%						124%						122%


NOTES:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes accretion on purchase accounting marks of $4.9 million, $6.6 million, $7.6 million, $7.3 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
(continued)
	Six Months Ended
	June 30, 2025							June 30, 2024
			Taxable-			Taxable-				Taxable-			Taxable-
	Average		Equivalent			Equivalent		Average		Equivalent			Equivalent
(In thousands)	Balance		Interest			Rate		Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	169,541	$	3,781		4.50	%	$	108,695	$	2,820		5.22	%
Investment securities ⁽¹⁾⁽²⁾		884,730		20,787		4.70			529,151		11,808		4.47
Loans ^{(1)(3)(4)(5)(6)}		3,902,295		126,883		6.56			2,316,522		72,072		6.25
Total interest-earning assets		4,956,566		151,451		6.15			2,954,368		86,700		5.90
Other assets		443,528							200,580
Total assets	$	5,400,094						$	3,154,948
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	2,468,589		28,036		2.29		$	1,610,188		19,310		2.41
Savings deposits		271,104		330		0.25			167,736		284		0.34
Time deposits		942,387		18,749		4.01			455,082		9,187		4.06
Total interest-bearing deposits		3,682,080		47,115		2.58			2,233,006		28,781		2.59
Securities sold under agreements to repurchase and federal funds purchased		26,039		190		1.47			12,711		52		0.83
FHLB advances and other borrowings		108,439		2,148		3.99			126,253		2,626		4.18
Subordinated notes and trust preferred debt		68,825		2,626		7.69			32,109		1,488		9.32
Total interest-bearing liabilities		3,885,383		52,079		2.70			2,404,079		32,947		2.76
Noninterest-bearing demand deposits		895,924							420,253
Other liabilities		89,067							60,078
Total liabilities		4,870,374							2,884,410
Shareholders’ equity		529,720							270,538
Total liabilities and shareholders’ equity	$	5,400,094						$	3,154,948
Taxable-equivalent net interest income / net interest spread				99,372		3.45	%				53,753		3.14	%
Taxable-equivalent net interest margin						4.04	%						3.65	%
Taxable-equivalent adjustment				(1,099	)						(769	)
Net interest income			$	98,273						$	52,984
Ratio of average interest-earning assets to average interest-bearing liabilities						128	%						123	%

NOTES TO ANALYSIS OF NET INTEREST INCOME:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the six months ended June 30, 2024.
⁽⁶⁾ Interest income on loans includes accretion on purchase accounting marks of $11.5 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively.

ORRSTOWN FINANCIAL SERVICES, INC.
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(In thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Profitability for the quarter:
Net interest income	$	49,512		$	48,761		$	50,573		$	51,697		$	26,103
Provision for (Recovery of) credit losses		109			(554	)		1,755			13,681			812
Noninterest income		12,915			11,624			11,247			12,386			7,172
Noninterest expenses		37,614			38,176			42,930			60,299			22,639
Income (loss) before income taxes		24,704			22,763			17,135			(9,897	)		9,824
Income tax expense (benefit)		5,256			4,712			3,451			(1,994	)		2,086
Net income (loss)	$	19,448		$	18,051		$	13,684		$	(7,903	)	$	7,738

Financial ratios:
Return on average assets ⁽¹⁾		1.45	%		1.35	%		1.00	%	(0.57)%				0.97	%
Return on average assets, adjusted ^(1)(2)(3)		1.51	%		1.45	%		1.22	%		1.55	%		1.09	%
Return on average equity ⁽¹⁾		14.56	%		13.98	%		10.54	%	(5.85)%				11.41	%
Return on average equity, adjusted ^(1)(2)(3)		15.12	%		14.97	%		12.86	%		15.85	%		12.88	%
Net interest margin ⁽¹⁾		4.07	%		4.00	%		4.05	%		4.14	%		3.54	%
Efficiency ratio		60.3	%		63.2	%		69.4	%		94.1	%		68.0	%
Efficiency ratio, adjusted ⁽²⁾⁽³⁾		58.7	%		60.5	%		62.3	%		60.2	%		64.6	%

Per share information:
Income (loss) per common share:
Basic	$	1.01		$	0.94		$	0.72		$	(0.41	)	$	0.74
Basic, adjusted ⁽²⁾⁽³⁾		1.05			1.01			0.87			1.12			0.84
Diluted		1.01			0.93			0.71			(0.41	)		0.73
Diluted, adjusted ⁽²⁾⁽³⁾		1.04			1.00			0.87			1.11			0.83
Book value		28.07			27.32			26.65			26.65			25.97
Tangible book value⁽³⁾		22.77			21.99			21.19			21.12			24.08
Average tangible common equity⁽³⁾		18.43			17.91			13.62			(6.49	)		12.35
Cash dividends paid		0.26			0.26			0.23			0.23			0.20

Average basic shares		19,172			19,157			19,118			19,088			10,393
Average diluted shares		19,342			19,328			19,300			19,226			10,553
⁽¹⁾ Annualized.
⁽²⁾ Ratio has been adjusted for non-recurring expenses for all periods presented.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

ORRSTOWN FINANCIAL SERVICES, INC.
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	June 30, 2025		March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024
Noninterest income:
Service charges	$	2,630	$	2,395	$	2,050		$	2,360	$	1,283
Interchange income		1,441		1,427		1,608			1,779		961
Swap fee income		669		394		597			505		375
Wealth management income		5,267		5,415		4,902			5,037		3,312
Mortgage banking activities		478		302		517			491		369
Other income		2,422		1,678		1,578			1,943		884
Investment securities gains (losses)		8		13		(5	)		271		(12	)
Total noninterest income	$	12,915	$	11,624	$	11,247		$	12,386	$	7,172

Noninterest expenses:
Salaries and employee benefits	$	21,364	$	20,388	$	22,444		$	27,190	$	13,195
Occupancy, furniture and equipment		4,211		4,675		4,893			4,333		2,705
Data processing		965		924		1,540			2,046		1,237
Advertising and bank promotions		1,077		499		878			537		774
FDIC insurance		674		824		955			862		419
Professional services		2,016		1,826		1,591			1,119		801
Taxes other than income		295		942		(312	)		503		49
Intangible asset amortization		2,472		2,535		2,838			2,464		215
Provision for legal settlement		—		—		478			—		—
Merger-related expenses		968		1,649		3,887			16,977		1,135
Restructuring expenses		—		91		39			257		—
Other operating expenses		3,572		3,823		3,699			4,011		2,109
Total noninterest expenses	$	37,614	$	38,176	$	42,930		$	60,299	$	22,639

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Balance Sheet at quarter end:
Cash and cash equivalents	$	149,377		$	287,120		$	248,874		$	236,780		$	132,509
Restricted investments in bank stocks		21,204			19,693			20,232			20,247			11,147
Securities available for sale		885,373			855,456			829,711			826,828			529,082
Loans held for sale, at fair value		5,206			5,261			6,614			3,561			1,562
Loans:
Commercial real estate:
Owner occupied		622,315			617,854			633,567			622,726			371,301
Non-owner occupied		1,203,038			1,157,383			1,160,238			1,164,501			710,477
Multi-family		239,388			257,724			274,135			276,296			151,542
Non-owner occupied residential		163,018			168,354			179,512			190,786			89,156
Agricultural		124,291			134,916			125,156			129,486			25,551
Commercial and industrial		487,063			455,494			451,384			471,983			349,425
Acquisition and development:
1-4 family residential construction		38,490			40,621			47,432			56,383			32,439
Commercial and land development		198,889			227,434			241,424			262,317			129,883
Municipal		28,693			30,780			30,044			27,960			10,594
Total commercial loans		3,105,185			3,090,560			3,142,892			3,202,438			1,870,368
Residential mortgage:
First lien		472,030			464,642			460,297			451,195			271,153
Home equity – term		5,784			9,224			5,988			6,508			4,633
Home equity – lines of credit		305,968			295,820			303,561			303,165			192,736
Other – term⁽¹⁾		25,384			—			—			—			—
Installment and other loans		17,028			15,739			18,476			18,131			8,713
Total loans		3,931,379			3,875,985			3,931,214			3,981,437			2,347,603
Allowance for credit losses		(47,898	)		(47,804	)		(48,689	)		(49,630	)		(29,864	)
Net loans held for investment		3,883,481			3,828,181			3,882,525			3,931,807			2,317,739
Goodwill		69,751			68,106			68,106			70,655			18,724
Other intangible assets, net		42,748			45,230			47,765			46,144			1,974
Total assets		5,387,645			5,441,586			5,441,589			5,470,589			3,198,782
Total deposits		4,516,625			4,633,716			4,623,096			4,650,853			2,702,884
FHLB advances and other borrowings and Securities sold under agreements to repurchase		166,381			123,480			141,227			137,310			129,625
Subordinated notes and trust preferred debt		69,021			68,850			68,680			68,510			32,128
Total shareholders’ equity		548,448			532,936			516,682			516,206			278,376

⁽¹⁾ Other – term includes property assessed clean energy (“PACE”) loans.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Capital and credit quality measures⁽¹⁾:
Total risk-based capital:
Orrstown Financial Services, Inc.		13.3	%		13.1	%		12.4	%		12.4	%		13.3	%
Orrstown Bank		13.3	%		13.0	%		12.4	%		12.2	%		13.1	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		11.1	%		10.8	%		10.2	%		10.0	%		11.1	%
Orrstown Bank		12.1	%		11.9	%		11.2	%		11.0	%		12.0	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		10.9	%		10.6	%		10.0	%		9.8	%		11.1	%
Orrstown Bank		12.1	%		11.9	%		11.2	%		11.0	%		12.0	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		9.0	%		8.6	%		8.3	%		8.0	%		8.9	%
Orrstown Bank		9.8	%		9.5	%		9.1	%		8.8	%		9.5	%

Average equity to average assets		9.97	%		9.65	%		9.45	%		9.75	%		8.50	%
Allowance for credit losses to total loans		1.22	%		1.23	%		1.24	%		1.25	%		1.27	%
Total nonaccrual loans to total loans		0.57	%		0.59	%		0.61	%		0.68	%		0.36	%
Nonperforming assets to total assets		0.42	%		0.42	%		0.45	%		0.49	%		0.26	%
Allowance for credit losses to nonaccrual loans		214	%		210	%		202	%		184	%		357	%

Other information:
Net charge-offs	$	115		$	331		$	3,002		$	269		$	113
Classified loans		65,754			76,211			88,628			105,465			48,722
Nonperforming and other risk assets:
Nonaccrual loans		22,423			22,727			24,111			26,927			8,363
Other real estate owned		—			138			138			138			—
Total nonperforming assets		22,423			22,865			24,249			27,065			8,363
Financial difficulty modifications still accruing		5,759			5,127			4,897			9,497			—
Loans past due 90 days or more and still accruing		1,312			400			641			337			187
Total nonperforming and other risk assets	$	29,494		$	28,392		$	29,787		$	36,899		$	8,550
(1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.

Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $112.5 million and $115.9 million at June 30, 2025 and December 31, 2024, respectively. In addition, during the three months ended June 30, 2025, March, 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, the Company incurred $1.0 million, $1.6 million, $3.9 million, $17.0 million and $1.1 million in merger-related expenses, respectively. During the three months ended December 31, 2024 and September 30, 2024, the Company incurred other non-recurring charges totaling $0.5 million and $20.2 million, respectively.

Tangible book value per common share, tangible common equity and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

The following tables present the computation of each non-GAAP based measure:

(In thousands)

Tangible Book Value per Common Share	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Shareholders’ equity (most directly comparable GAAP-based measure)	$	548,448		$	532,936		$	516,682		$	516,206		$	278,376
Less: Goodwill		69,751			68,106			68,106			70,655			18,724
Other intangible assets		42,748			45,230			47,765			46,144			1,974
Related tax effect		(8,977	)		(9,498	)		(10,031	)		(9,690	)		(415	)
Tangible common equity (non-GAAP)	$	444,926		$	429,098		$	410,842		$	409,097		$	258,093

Common shares outstanding		19,536			19,510			19,390			19,373			10,720

Book value per share (most directly comparable GAAP-based measure)	$	28.07		$	27.32		$	26.65		$	26.65		$	25.97
Intangible assets per share		5.30			5.33			5.46			5.53			1.89
Tangible book value per share (non-GAAP)	$	22.77		$	21.99		$	21.19		$	21.12		$	24.08

Return on Average Common Equity	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024
Average shareholders’ equity	$	535,684		$	523,689		$	516,399		$	537,670	$	272,788
Less: Average goodwill		68,126			68,106			71,477			36,034		18,724
Less: Average other intangible assets, gross		44,304			46,864			45,319			17,393		2,105
Average tangible equity	$	423,254		$	408,719		$	399,603		$	484,243	$	251,959
Return on average tangible equity		18.43	%		17.91	%		13.62	%	(6.49)%			12.35	%

(In thousands)	Three Months Ended															Six Months Ended
Adjusted Ratios for Non-recurring Charges	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (A) – most directly comparable GAAP-based measure	$	19,448		$	18,051		$	13,684		$	(7,903	)	$	7,738		$	37,499		$	16,269
Plus: Merger-related expenses (B)		968			1,649			3,887			16,977			1,135			2,617			1,807
Plus: Executive retirement expenses (B)		—			—			35			4,758			—			—			—
Plus: Provision for credit losses on non-PCD loans (B)		—			—			—			15,504			—			—			—
Plus: Provision for legal settlement (B)		—			—			478			—			—			—			—
Less: Related tax effect (C)		(221	)		(368	)		(1,386	)		(7,915	)		(139	)		(590	)		(140	)
Adjusted net income (D=A+B-C) – Non-GAAP	$	20,195		$	19,332		$	16,698		$	21,421		$	8,734		$	39,526		$	17,936

Average assets (E)	$	5,374,772		$	5,425,697		$	5,464,165		$	5,515,143		$	3,211,124		$	5,400,094		$	3,154,948
Return on average assets (= A / E) – most directly comparable GAAP-based measure ⁽¹⁾		1.45	%		1.35	%		1.00	%	(0.57)%				0.97	%		1.40	%		1.04	%
Return on average assets, adjusted (= D / E) – Non-GAAP ⁽¹⁾		1.51	%		1.45	%		1.22	%		1.55	%		1.09	%		1.48	%		1.14	%

Average equity (F)	$	535,684		$	523,689		$	516,399		$	537,670		$	272,788		$	529,720		$	270,538
Return on average equity (= A / F) – most directly comparable GAAP-based measure ⁽¹⁾		14.56	%		13.98	%		10.54	%	(5.85)%				11.41	%		14.28	%		12.09	%
Return on average equity, adjusted (= D / F) – Non-GAAP ⁽¹⁾		15.12	%		14.97	%		12.86	%		15.85	%		12.88	%		15.05	%		13.33	%

Weighted average shares – basic (G) – most directly comparable GAAP-based measure		19,173			19,157			19,118			19,088			10,393			19,165			10,371
Basic earnings (loss) per share (= A / G) – most directly comparable GAAP-based measure	$	1.01		$	0.94		$	0.72		$	(0.41	)	$	0.74		$	1.96		$	1.57
Basic earnings per share, adjusted (= D / G) – Non-GAAP	$	1.05		$	1.01		$	0.87		$	1.12		$	0.84		$	2.06		$	1.73

Weighted average shares – diluted (H) – most directly comparable GAAP-based measure		19,342			19,328			19,300			19,226			10,553			19,335			10,517
Diluted earnings (loss) per share (= A / H) – most directly comparable GAAP-based measure	$	1.01		$	0.93		$	0.71		$	(0.41	)	$	0.73		$	1.94		$	1.55
Diluted earnings per share, adjusted (= D / H) – Non-GAAP	$	1.04		$	1.00		$	0.87		$	1.11		$	0.83		$	2.04		$	1.71

(1) Annualized
	Three Months Ended															Six Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Noninterest expense (I) – most directly comparable GAAP-based measure	$	37,614		$	38,176		$	42,930		$	60,299		$	22,639		$	75,790		$	45,108
Less: Merger-related expenses (B)		(968	)		(1,649	)		(3,887	)		(16,977	)		(1,135	)		(2,617	)		(1,807	)
Less: Executive retirement expenses (B)		—			—			(35	)		(4,758	)		—			—			—
Less: Provision for legal settlement (B)		—			—			(478	)		—			—			—			—
Adjusted noninterest expense (J = I – B) – Non-GAAP	$	36,646		$	36,527		$	38,531		$	38,564		$	21,504		$	73,173		$	43,301

Net interest income (K)	$	49,512		$	48,761		$	50,573		$	51,697		$	26,103		$	98,273		$	52,984
Noninterest income (L)		12,915			11,624			11,247			12,386			7,172			24,539			13,802
Total operating income (M = K + L)	$	62,427		$	60,385		$	61,820		$	64,083		$	33,275		$	122,812		$	66,786

Efficiency ratio (= I / M) – most directly comparable GAAP-based measure		60.3	%		63.2	%		69.4	%		94.1	%		68.0	%		61.7	%		67.5	%
Efficiency ratio, adjusted (= J / M) – Non-GAAP		58.7	%		60.5	%		62.3	%		60.2	%		64.6	%		59.6	%		64.8	%

(1) Annualized

Appendix B- Investment Portfolio Concentrations

The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at June 30, 2025:

(In thousands)

Sector	Portfolio Mix		Amortized Book		Fair Value		Credit Enhancement		AAA		AA		A		BBB		BB		NR		Collateral / Guarantee Type
Unsecured ABS	—	%	$	2,827	$	2,673	28	%	—	%	—	%	—	%	—	%	—	%	100	%	Unsecured Consumer Debt
Student Loan ABS	—			3,577		3,576	28		—		—		—		—		—		100		Seasoned Student Loans
Federal Family Education Loan ABS	8			75,724		74,828	11		—		47		33		7		13		—		Federal Family Education Loan ⁽¹⁾
PACE Loan ABS	—			1,912		1,702	7		100		—		—		—		—		—		PACE Loans ⁽²⁾
Non-Agency CMBS	3			24,012		24,027	24		—		—		—		—		—		100
Non-Agency RMBS	2			15,936		14,596	16		100		—		—		—		—		—		Reverse Mortgages ⁽³⁾
Municipal – General Obligation	11			100,035		90,241			16		77		7		—		—		—
Municipal – Revenue	13			120,446		105,710			—		82		12		—		—		6
SBA ReRemic ⁽⁵⁾	—			1,904		1,890			—		100		—		—		—		—		SBA Guarantee ⁽⁴⁾
Small Business Administration	1			5,156		5,275			—		100		—		—		—		—		SBA Guarantee ⁽⁴⁾
Agency MBS	22			198,876		197,965			—		100		—		—		—		—		Residential Mortgages ⁽⁴⁾
Agency CMO	38			344,233		342,057			—		100		—		—		—		—
U.S. Treasury securities	2			20,036		18,641			—		100		—		—		—		—		U.S. Government Guarantee ⁽⁴⁾
Corporate bonds	—			1,941		1,977			—		—		52		48		—		—
	100	%	$	916,615	$	885,158			4	%	85	%	5	%	1	%	1	%	4	%

⁽¹⁾ 97% guaranteed by U.S. government
⁽²⁾ PACE acronym represents Property Assessed Clean Energy loans
⁽³⁾ Non-agency reverse mortgages with current structural credit enhancements
⁽⁴⁾ Guaranteed by U.S. government or U.S. government agencies
⁽⁵⁾ SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits

Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.

About the Company

With $5.4 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes counties in Pennsylvania, Maryland, Delaware, Virginia and West Virginia within a 75-mile radius of the Company’s executive and administrative offices as well as the District of Columbia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results to differ from those expressed or implied by the forward-looking statements include, but are not limited to, the following: interest rate changes or volatility; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in, and evolving interpretations of, existing and future laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus Valley Bancorp are not realized when expected or at all; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2024 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

The MIL Network –

July 23, 2025

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

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

Olga Kashubin/Shutterstock

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

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

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

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

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

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

Can’t rates just be kept low?

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

Surprisingly, the answer is no.

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

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

Why does independence matter?

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

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

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

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

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

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

Expectations about the future matter

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

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

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

The chart below illustrates this point.

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

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

And these expectations affect what businesses and consumers do today.

So, how credible is the Reserve Bank today?

Despite the surprise hold, Australians still trust the RBA

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

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

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

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

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

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

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

MIL OSI Analysis – EveningReport.nz –

July 23, 2025

MIL-OSI USA: S. 237, Honoring Our Fallen Heroes Act of 2025

Source: US Congressional Budget Office

Bill Summary

S. 237 would expand eligibility for death, disability, and education benefits provided by the Public Safety Officer’s Benefit (PSOB) program to public safety officers and their beneficiaries if an officer dies or becomes permanently and totally disabled as a direct result of a cancer covered under the bill. S. 237 would apply retroactively to officers who die or become disabled on or after January 1, 2020. The bill would require the Department of Justice (DOJ) to review the list of cancers covered by the bill at least once every three years.

S. 237 also would extend the deadline to file a claim for benefits under the PSOB program for officers and their beneficiaries for officers who die or become permanently and totally disabled from COVID-19. Under current law, the deadline to file such a claim was May 11, 2023, when the public health emergency declared during the coronavirus pandemic ended.

Estimated Federal Cost

The estimated budgetary effect of S. 237 is shown in Table 1. The costs of the legislation fall within budget function 750 (administration of justice).

Table 1. Estimated Budgetary Effects of S. 237
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2025-2030	2025-2035
	Increases in Direct Spending
Estimated Budget Authority	0	22	50	43	30	26	23	18	17	18	18	171	265
Estimated Outlays	0	15	40	45	34	27	23	19	17	17	18	161	255
	Increases in Spending Subject to Appropriation
Estimated Authorization	*	6	15	16	13	11	n.e.	n.e.	n.e.	n.e.	n.e.	61	n.e.
Estimated Outlays	*	5	14	16	13	11	n.e.	n.e.	n.e.	n.e.	n.e.	59	n.e.

Basis of Estimate

CBO assumes that the bill will be enacted near the end of fiscal year 2025. The estimate is based on CBO’s analysis of cancer incidence and mortality among the general population of the United States and a review of the medical literature related to cancer incidence and mortality among public safety officers, including firefighters. The estimate is also based on CBO’s projections of the number of deaths among public safety officers that are likely to be related to cancer and the number of officers or their beneficiaries who apply for and receive benefits under the PSOB program.

Background

The PSOB program is administered by DOJ to provide cash benefits to federal, state, and local public safety officers and their beneficiaries in the event of death or permanent and total disability resulting from physical injuries and certain mental health conditions, such as post-traumatic stress disorder. Education benefits are also available to eligible spouses and children of officers who die or become disabled in the line of duty. Public safety officers include those working in law enforcement, firefighters, emergency management, and emergency medical services.

The program already provides benefits to World Trade Center responders and their beneficiaries who die or become disabled from cancer from exposure to a carcinogen after the terrorist attacks on September 11, 2001. CBO is unaware of the program approving any death or disability claim related to cancer that does not stem from attacks on September 11, 2001.

Eligibility Under the Bill

Under S. 237, an exposure to a carcinogen would qualify as an injury in the line of duty if an officer later dies or becomes permanently and totally disabled as a direct result of cancer. The bill would direct DOJ to presume that a qualifying injury caused the death or disability if the officer:

Was exposed to a carcinogen while in the line of duty;
Served for at least five years before being diagnosed with cancer; and
Received a diagnosis of cancer within 15 years of leaving service.

The presumption would not apply if DOJ determines, based on competent medical evidence, that the exposure to a carcinogen was not a substantial factor in an officer’s death or disability.

Direct Spending

The PSOB program pays a one-time death benefit to spouses and children or other designated beneficiaries of officers who die in the line of duty. The cost of those benefits is classified in the budget as direct spending. In 2025, the one-time benefit is $448,575; under current law, that amount increases each year to account for inflation.

Cancer Claims. CBO expects that most relatives of potentially eligible officers would apply for benefits. Based on information from DOJ and other similar programs, such as the September 11th Victim Compensation Fund, CBO estimates that about 75 percent of claims for cancer-related deaths among public safety officers would ultimately result in benefits being paid to family members or designated beneficiaries. CBO expects that firefighters would account for most claims under the bill.

Using data from the Centers for Disease Control and Prevention (CDC) on cancer mortality among the general population and a review of medical literature regarding cancer incidence and mortality among firefighters, CBO estimates that, on average, about 40 claims would be filed annually over the 2025-2035 period.

S. 237 also would require benefits to be awarded for cancer deaths occurring between January 1, 2020, and the date of enactment. CBO estimates that about 200 claims would be submitted for officers who died from cancer during that period and that those claims would be filed within three years of enactment.

COVID-19 Claims. Additionally, the bill would extend by three years the deadline to file a claim for death benefits for spouses, children, or other beneficiaries of officers who die from COVID-19. Under current law, an officer is presumed to be eligible by DOJ if the officer was diagnosed with COVID-19 within 45 days of the last day of duty and medical evidence indicates that the officer had the virus or complications from the virus at the time of death. Under current law, the deadline to file such a claim was May 11, 2023, when the public health emergency related to the coronavirus pandemic was lifted. Using information from DOJ about the number of those claims it received between 2020 and 2023 and data from the CDC on COVID-19 mortality, CBO estimates that about 150 claims would be submitted for officers who die from COVID-19.

In total, CBO estimates that under the bill, about 765 claims would be filed over the 2025-2035 period. Based on the amount of time CBO estimates that it would take DOJ to process each eligible claim, CBO estimates that about 530 claims would be approved for benefits over the next decade under S. 237. (About 30 claims filed during that period would be approved after 2035.) Accounting for expected increases in inflation, CBO estimates that enacting S. 237 would increase direct spending by $255 million over the 2025-2035 period.

Spending Subject to Appropriation

By expanding the scope of qualifying deaths and injuries, S. 237 also would increase the number of claimants eligible for disability and education benefits under the PSOB program. Spending for those benefits is subject to the availability of appropriated funds. DOJ also would incur administrative costs to implement the bill. In total, CBO estimates that implanting S. 237 would cost $59 million over the 2025-2030 period (see Table 2). That spending would be subject to the availability of appropriated funds.

Disability Benefits. Under current law, the PSOB program pays benefits for permanent and total disability resulting from injuries suffered in the line of duty. Under current law, claimants receive a one-time benefit that is the same amount as the death benefit ($448,575 in 2025), which increases each year to account for inflation. In total, CBO estimates that the cost of disability benefits under S. 237 would be $24 million over the 2025-2030 period.

Table 2. Estimated Increases in Spending Subject to Appropriation Under S. 237
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2025-2030
Disability Benefits
Estimated Authorization	0	1	5	7	6	5	24
Estimated Outlays	0	1	5	7	6	5	24
Education Benefits
Estimated Authorization	0	4	9	8	6	5	32
Estimated Outlays	0	3	8	8	6	5	30
Administrative Costs
Estimated Authorization	*	1	1	1	1	1	5
Estimated Outlays	*	1	1	1	1	1	5
Total Changes
Estimated Authorization	*	6	15	16	13	11	61
Estimated Outlays	*	5	14	16	13	11	59

Cancer Claims. S. 237 would designate an exposure to a carcinogen as an injury in the line of duty if an officer later becomes permanently disabled as a direct result of cancer. Using information from DOJ about the historical number of claims, CBO expects that fewer claims for disability benefits would be filed under the bill than claims for death benefits. On that basis, CBO estimates that one claim for disability benefits would be filed for every three claims for death benefits. Additionally, based on conversations with DOJ and subject matter experts, CBO expects that most officers affected by cancer would not meet the permanently and totally disabled threshold. Based on historical approval rates for disability-related claims, CBO estimates that about 50 percent of claims for disability claims would ultimately be approved.

Under the bill, CBO estimates that about 120 claims for disability benefits related to cancer would be filed over the 2025-2030 period. Using information from DOJ about the time it takes to process each claim, CBO estimates that about 50 claims would be approved over the same period. (About 10 additional claims filed during the period would be approved after 2030.)

COVID-19 Claims. S. 237 also would extend by three years the deadline to file a claim for benefits under the PSOB program for officers who become permanently and totally disabled from COVID-19. Using data from DOJ about the number of those claims filed and approved over the 2020-2023 period, CBO estimates that under S. 237 fewer than five claims would be approved for officers who become disabled from COVID-19.

Education Benefits. Under current law, the spouse or children of a public safety officer who dies or becomes permanently disabled from physical injuries and certain mental health conditions may also be eligible for education benefits to cover tuition, fees, books, supplies and room and board. The monthly benefit for a full-time student in 2025 is $1,536; that amount is adjusted each year for inflation. Under current law, the maximum duration of benefits is 45 months of full-time education or a proportionate duration of part-time education.

Historical data from the PSOB program indicate that about three claims for education benefits have been approved for every two claims that have been approved for death and disability benefits. On that basis, CBO estimates that about 360 claims stemming from death benefits and about 50 claims stemming from disability benefits will be approved over the 2025-2030 period under S. 237. Using information about the time it takes to process claims for education benefits, CBO estimates that about 650 people will receive benefits over the 2025-2030 period under the bill. In total, CBO estimates that those benefits would cost $30 million over the 2025-2030 period. Those outlays reflect the historical spending patterns for such claims.

Administrative Costs. As discussed above, implementing S. 237 would require DOJ to review more than 150 additional claims annually under the bill. Using information from the agency about the number of staff required to process claims under current law, CBO estimates that implementing the bill would require an additional five people each year to process claims and review the list of eligible cancers at a cost of $1 million annually. In total, CBO estimates that DOJ would incur $5 million in administrative costs over the 2025-2030 period.

Uncertainty

CBO’s cost estimate for S. 237 is subject to significant uncertainty in several areas:

Identifying public safety officers’ rate of incidence and deaths from cancer and COVID-19;
Estimating the number of people who would be eligible to file claims for benefits under the bill;
Calculating the proportion of claims that DOJ would determine to be eligible, which is affected by the latency periods for different cancers and other circumstances specific to each officer’s medical history and lifestyle; and
Anticipating the timing of submissions and the amount of time required to review applications and process claims.

CBO strives for estimates that are in the middle of possible outcomes and each factor in the estimate could be higher or lower than CBO estimates. As a result, enacting the bill could result in higher or lower costs than CBO estimates.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 3.

Table 3. CBO’s Estimate of the Statutory Pay-As-You-Go Effects of S. 237, the Honoring Our Fallen Heroes Act of 2025, as Reported by the Senate Committee on the Judiciary on May 20, 2025
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	2025-2030	2025-2035
	Net Increase in the Deficit
Pay-As-You-Go Effect	0	15	40	45	34	27	23	19	17	17	18	161	255

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting S. 237 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036.

CBO estimates that enacting S. 237 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036.

Mandates

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

Federal Costs: Jeremy Crimm

Mandates: Erich Dvorak

Estimate Reviewed By

Justin Humphrey
Chief, Finance, Housing, and Education Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

H. Samuel Papenfuss
Deputy Director of Budget Analysis

Phillip L. Swagel

Director, Congressional Budget Office

MIL OSI USA News –

July 23, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three and Six Months Ended June 30, 2025 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., July 22, 2025 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and six months ended June 30, 2025. For the three months ended June 30, 2025, the Company reported net income of $4.6 million, or $0.23 per diluted share, compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. On a linked quarter basis, net income was $4.6 million, or $0.23 per diluted share, as compared to net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025. For the six months ended June 30, 2025, net income was $6.9 million, or $0.34 per diluted share, compared to net income of $6.5 million, or $0.31 per diluted share, for the six months ended June 30, 2024.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 20, 2025 to shareholders of record on August 6, 2025.

James C. Hagan, President and Chief Executive Officer, commented, “We are pleased to report solid earnings for the second quarter of 2025, along with strong overall loan growth and core deposit growth. Core deposits increased $81.4 million, or 5.2%, since year-end, which will be beneficial as we continue to lower deposit costs and reduce our reliance on time deposits. We are also pleased to report that our commercial and industrial loan portfolio increased $22.8 million, or 10.8%, during the six months ended June 30, 2025, and our residential real estate portfolio increased $29.7 million, or 3.8%, during the same period. Growth in commercial and industrial loans is a strategic priority for the Company as we remain focused on meeting the needs of our business and commercial customers.

We believe our balance sheet structure will continue to have a positive impact on earnings in the current interest rate environment. Net interest income increased $2.1 million, or 13.6%, from the three months ended March 31, 2025 to the three months ended June 30, 2025, while the net interest margin increased 31 basis points from 2.49% to 2.80% during the same period. Our loan growth and disciplined approach to managing funding costs have allowed us to expand our net interest margin as we continue to decrease the cost of interest-bearing liabilities and our reliance on time deposits. Our asset quality remains solid, with nonperforming assets to total assets of 0.21%, and total delinquency as a percentage of total loans of 0.18%.”

Hagan concluded, “Our capital position continues to remain strong, and the Company is considered to be well-capitalized as defined by the regulators. We remain disciplined in our capital management strategies and during the six months ended June 30, 2025, we repurchased 497,318 shares of common stock with an average price per share of $9.31. We continue to believe that buying back shares, at current prices, represents a prudent use of the Company’s capital. On April 22, 2025, we announced a new repurchase plan (the “2025 Plan”) which commenced upon the completion of the 2024 Repurchase Plan (the “2024 Plan”). On June 3, 2025, we announced the completion of the 2024 Plan, under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79. We are pleased with our second quarter results and are committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.”

Key Highlights:

Loans and Deposits

Total gross loans increased $22.1 million, or 1.1%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 77.1% of total assets, at June 30, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $29.7 million, or 3.8%, and an increase in commercial and industrial loans of $22.8 million, or 10.8%. These increases were partially offset by a decrease in commercial real estate loans of $29.5 million, or 2.7%, and a decrease in consumer loans of $879,000, or 20.0%.

At June 30, 2025, total deposits of $2.3 billion increased $67.5 million, or 3.0%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $81.4 million, or 5.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.4% of total deposits, at June 30, 2025. Time deposits decreased $13.9 million, or 2.0%, from $703.6 million at December 31, 2024 to $689.7 million at June 30, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at June 30, 2025. The loan-to-deposit ratio decreased from 91.5% at December 31, 2024 to 89.8% at June 30, 2025.

Allowance for Loan Losses and Credit Quality

At June 30, 2025, the allowance for credit losses was $19.7 million, or 0.94% of total loans, compared to $19.5 million, or 0.94% of total loans, at December 31, 2024. The allowance for loan losses, as a percentage of nonaccrual loans, was 343.1% and 362.9% at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, nonaccrual loans totaled $5.8 million, or 0.27% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. Total delinquent loans decreased from $5.0 million, or 0.24% of total loans, at December 31, 2024 to $3.9 million, or 0.18% of total loans, at June 30, 2025. At June 30, 2025 and December 31, 2024, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin increased 31 basis points, from 2.49% for the three months ended March 31, 2025 to 2.80% for the three months ended June 30, 2025. The net interest margin, on a tax-equivalent basis, increased 31 basis points from 2.51% for the three months ended March 31, 2025 to 2.82%, for the three months ended June 30, 2025.

Stock Repurchase Program

On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company’s then-outstanding shares of common stock, upon the completion of the 2024 Plan. On June 3, 2025, the Company announced the completion of its 2024 Plan under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79.

During the three months ended June 30, 2025, the Company repurchased 290,609 shares of its common stock at an average price per share of $9.45. During the six months ended June 30, 2025, the Company repurchased 497,318 shares of its common stock at an average price per share of $9.31. As of June 30, 2025, there were 975,000 shares of common stock available for repurchase under the 2025 Plan.

The repurchase of shares under our 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.68 at June 30, 2025 compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.38, or 3.6%, from $10.63 at December 31, 2024 to $11.01 at June 30, 2025. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended June 30, 2025 Compared to the Three Months Ended March 31, 2025

For the three months ended June 30, 2025, the Company reported an increase in net income of $2.3 million, or 99.3%, from $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, to $4.6 million, or $0.23 per diluted share. Net interest income increased $2.1 million, or 13.6%, the provision for credit losses decreased $757,000, non-interest income increased $652,000, or 23.6%, and non-interest expense increased $472,000, or 3.1%. Return on average assets and return on average equity were 0.69% and 7.76%, respectively, for the three months ended June 30, 2025, compared to 0.35% and 3.94%, respectively, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $2.1 million, or 13.6%, to $17.6 million for the three months ended June 30, 2025, from $15.5 million for the three months ended March 31, 2025. The increase in net interest income was primarily due to an increase in interest income of $1.2 million, or 4.1%, and a decrease in interest expense of $933,000, or 7.2%. During the three months ended June 30, 2025, the Company recorded $425,000 in prepayment penalties related to payoffs in the commercial portfolio. The $933,000, or 7.2%, decrease in interest expense was primarily due to a decrease in average rates paid on interest-bearing deposits during the three months ended June 30, 2025, compared to the three months ended March 31, 2025.

The net interest margin was 2.80% for the three months ended June 30, 2025, compared to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.82% for the three months ended June 30, 2025, compared to 2.51% for the three months ended March 31, 2025. Excluding the prepayment penalties discussed above, the net interest margin increased 24 basis points from 2.49% for the three months ended March 31, 2025 to 2.73% for the three months ended June 30, 2025. The increase in the net interest margin was primarily due to an increase in the yield on average interest-earning assets and a decrease in the average cost of interest-bearing liabilities.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 13 basis points from 4.56%, for the three months ended March 31, 2025 to 4.69% for the three months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased 16 basis points from 4.89%, for the three months ended March 31, 2025, to 5.05% for the three months ended June 30, 2025. During the same period, average loans increased $7.8 million, or 0.4%, and average securities increased $9.7 million, or 2.7%, while average short-term investments decreased $17.4 million, or 22.9%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 18 basis points from 2.16% for the three months ended March 31, 2025 to 1.98% for the three months ended June 30, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased seven basis points to 1.01% for the three months ended June 30, 2025, from 1.08% for the three months ended March 31, 2025. The average cost of time deposits decreased 42 basis points from 4.11% for the three months ended March 31, 2025, to 3.69% for the three months ended June 30, 2025. The average cost of borrowings, including subordinated debt, was 5.04% for the three months ended March 31, 2025 and for the three months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $3.2 million, or 0.6%, from $569.6 million, or 24.8%, of total average deposits, for the three months ended March 31, 2025, to $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025.

(Reversal of) Provision for Credit Losses

During the three months ended June 30, 2025, the Company recorded a reversal of credit losses of $615,000, compared to a provision for credit losses of $142,000 during the three months ended March 31, 2025. The reversal of credit losses was a result of a recovery in the amount of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended June 30, 2025, the Company recorded net recoveries of $585,000 compared to net charge-offs of $29,000 for the three months ended March 31, 2025.

Non-Interest Income

On a sequential quarter basis, non-interest income increased $652,000, or 23.6%, to $3.4 million for the three months ended June 30, 2025, from $2.8 million for the three months ended March 31, 2025. During the three months ended June 30, 2025, service charges and fees on deposits increased $244,000, or 10.7%, to $2.5 million from the three months ended March 31, 2025. Income from bank-owned life insurance (“BOLI”) increased $43,000, or 9.1%, from the three months ended March 31, 2025 to $516,000 for the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company reported a gain of $4,000 from mortgage banking activities, compared to a gain of $7,000 during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $25,000, compared to unrealized losses of $5,000 during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported gains on non-marketable equity investments of $243,000 and did not have comparable income during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended March 31, 2025.

Non-Interest Expense

For the three months ended June 30, 2025, non-interest expense increased $472,000, or 3.1%, to $15.7 million from $15.2 million for the three months ended March 31, 2025. Salaries and related benefits increased $418,000, or 5.0%, due to an increase in deferred compensation expense to reflect updated performance award estimates and a full quarter of annual salary merit increases. Debit card processing and ATM network costs increased $97,000, or 16.8%, professional fees increased $77,000, or 14.1%, data processing expense increased $51,000, or 5.8%, advertising expense increased $14,000, or 3.3%, furniture and equipment expense increased $4,000, or 0.8%, and other non-interest expense increased $4,000, or 0.3%. These increases were partially offset by a decrease in occupancy expense of $147,000, or 10.4%, primarily due to a decrease in snow removal costs of $140,000. FDIC insurance expense decreased $32,000, or 7.4%, and software related expenses decreased $14,000, or 2.1%.

For the three months ended June 30, 2025 and the three months ended March 31, 2025, the efficiency ratio was 74.4% and 83.0%, respectively. For the three months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 75.3% compared to 83.0% for the three months ended March 31, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The Company’s detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2025 was $1.4 million, with an effective tax rate of 23.7%, compared to $664,000, with an effective tax rate of 22.4%, for the three months ended March 31, 2025. The increase in tax expense is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Net Income for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

The Company reported an increase in net income of $1.1 million, or 30.7%, from $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024 to $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025. Net interest income increased $3.2 million, or 21.9%, provision for credit losses decreased $321,000, non-interest income decreased $423,000, or 11.0%, and non-interest expense increased $1.3 million, or 9.4%, during the same period. Return on average assets and return on average equity were 0.69% and 7.76%, respectively, for the three months ended June 30, 2025, compared to 0.55% and 6.03%, respectively, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $3.2 million, or 21.9%, to $17.6 million, for the three months ended June 30, 2025, from $14.5 million for the three months ended June 30, 2024. The increase in net interest income was due to an increase in interest and dividend income of $2.8 million, or 10.5%, and a decrease in interest expense of $362,000, or 2.9%. During the three months ended June 30, 2025, the Company recorded $425,000 in prepayment penalties related to payoffs in the commercial portfolio. The increase in interest income was primarily due to a $129.4 million, or 5.4%, increase in average interest-earning assets and a 20 basis point increase in the average yield on interest-earning assets, from the three months ended June 30, 2024 to the three months ended June 30, 2025.

The net interest margin increased 38 basis points from 2.42% for the three months ended June 30, 2024 to 2.80% for the three months ended June 30, 2025. The net interest margin, on a tax-equivalent basis, was 2.82% for the three months ended June 30, 2025, compared to 2.44% for the three months ended June 30, 2024. Excluding the prepayment penalties discussed above, the net interest margin increased 31 basis points from 2.42%, for the three months ended June 30, 2024 to 2.73%, for the three months ended June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average yield on interest-earning assets and a decrease in the average cost of interest-bearing liabilities.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 20 basis points from 4.49% for the three months ended June 30, 2024 to 4.69%, for the three months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased 20 basis points from 4.85% for the three months ended June 30, 2024 to 5.05%, for the three months ended June 30, 2025. During the three months ended June 30, 2025, average interest-earning assets increased $129.4 million, or 5.4% to $2.5 billion, primarily due to an increase in average loans of $64.2 million, or 3.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $44.3 million, or 309.1%, and an increase in average securities of $20.2 million, or 5.7%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 18 basis points from 2.16% for the three months ended June 30, 2024 to 1.98% for the three months ended June 30, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 14 basis points from 0.87% for the three months ended June 30, 2024 to 1.01% for the three months ended June 30, 2025. The average cost of time deposits decreased 70 basis points from 4.39% for the three months ended June 30, 2024 to 3.69% for the three months ended June 30, 2025. The average cost of borrowings, including subordinated debt, increased four basis points from 5.00% for the three months ended June 30, 2024 to 5.04%, for the three months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $24.1 million, or 4.4%, from $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024, to $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025.

Reversal of Credit Losses

During the three months ended June, 30, 2025, the Company recorded a reversal of credit losses of $615,000, compared to a reversal of credit losses of $294,000 during the three months ended June 30, 2024. The reversal of credit losses recorded during the three months ended June 30, 2025 was a result of a recovery in the amount of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $585,000 for the three months ended June 30, 2025, as compared to net charge-offs of $10,000 for the three months ended June 30, 2024.

Non-Interest Income

Non-interest income decreased $423,000, or 11.0%, to $3.4 million for the three months ended June 30, 2025, from $3.8 million for the three months ended June 30, 2024. During the three months ended June 30, 2025, service charges and fees on deposits increased $187,000, or 8.0%, income from BOLI increased $14,000, or 2.8%, from $502,000 for the three months ended June 30, 2024 to $516,000 for the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company reported an unrealized gain on marketable equity securities of $25,000, compared to unrealized gain on marketable equity securities of $4,000 during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments, compared to a gain of $987,000 on non-marketable equity investments during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported $4,000 in gains from mortgage banking activities and did not have comparable income during the three months ended June 30, 2024.

Non-Interest Expense

For the three months ended June 30, 2025, non-interest expense increased $1.3 million, or 9.4%, to $15.7 million from $14.3 million for the three months ended June 30, 2024. The increase in non-interest expense was due to an increase in salaries and benefits of $930,000, or 11.8%, an increase in advertising and marketing expense of $104,000, or 30.7%, an increase in data processing expense of $87,000, or 10.3%, an increase in software related expense of $79,000, or 14.0%, an increase in FDIC insurance expense of $76,000, or 23.5%, an increase in occupancy expense of $47,000, or 3.9%, an increase in professional fees of $42,000, or 7.2%, an increase in debit card and ATM processing fees of $31,000, or 4.8%, an increase in furniture and equipment expense of $8,000, or 1.7%, and a decrease in other non-interest expense of $62,000, or 4.4%.

For the three months ended June 30, 2025, the efficiency ratio was 74.4%, compared to 78.2% for the three months ended June 30, 2024. For the three months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 75.3% compared to 82.7% for the three months ended June 30, 2024. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by an increase in total revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. See pages 19-21 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2025 was $1.4 million, or an effective tax rate of 23.7%, compared to $771,000, or an effective tax rate of 18.0%, for the three months ended June 30, 2024. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Net Income for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

For the six months ended June 30, 2025, the Company reported net income of $6.9 million, or $0.34 per diluted share, compared to $6.5 million, or $0.31 per diluted share, for the six months ended June 30, 2024. Return on average assets and return on average equity were 0.52% and 5.87% for the six months ended June 30, 2025, respectively, compared to 0.51% and 5.53% for the six months ended June 30, 2024, respectively.

Net Interest Income and Net Interest Margin

During the six months ended June 30, 2025, net interest income increased $3.4 million, or 11.3%, to $33.2 million, compared to $29.8 million for the six months ended June 30, 2024. The increase in net interest income was due to an increase in interest income of $4.6 million, or 8.7%, partially offset by an increase in interest expense of $1.3 million, or 5.4%.

For the six months ended June 30, 2025, the net interest margin increased 14 basis points from 2.50% for the six months ended June 30, 2024 to 2.64%. The net interest margin, on a tax-equivalent basis, was 2.66% for the six months ended June 30, 2025, compared to 2.52% for the six months ended June 30, 2024. During the six months ended June 30, 2025 and the six months ended June 30, 2024, the Company recorded $425,000 and $8,000, respectively, in prepayment penalties related to payoffs in the commercial portfolio. Excluding the prepayment penalties, the net interest margin increased 11 basis points from 2.50% for the six months ended June 30, 2024 to 2.61% for the six months ended June 30, 2025.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.63% for the six months ended June 30, 2025, compared to 4.47% for the six months ended June 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.97% for the six months ended June 30, 2025, compared to 4.84% for the six months ended June 30, 2024. During the six months ended June 30, 2025, average interest-earning assets increased $128.0 million, or 5.3%, to $2.5 billion, from the same period in 2024. The increase was primarily due to an increase in average loans of $58.0 million, or 2.9%, an increase in average short-term investments, consisting of cash and cash equivalents, of $55.4 million, or 467.4%, and an increase in average securities of $13.1 million, or 3.7%.

The average cost of total funds, including non-interest bearing accounts and borrowings, was 2.07% for each of the six months ended June 30, 2025 and June 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 1.05% for the six months ended June 30, 2025, from 0.82% for the six months ended June 30, 2024. The average cost of time deposits decreased 36 basis points from 4.26% for the six months ended June 30, 2024 to 3.90% for the six months ended June 30, 2025. The average cost of borrowings, including subordinated debt, increased eight basis points from 4.96% for the six months ended June 30, 2024 to 5.04% for the six months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $18.0 million, or 3.3%, from $553.2 million, or 25.9% of total average deposits, for the six months ended June 30, 2024 to $571.2 million, or 24.8% of total average deposits, for the six months ended June 30, 2025.

Reversal of Credit Losses

During the six months ended June 30, 2025, the Company recorded a reversal of credit losses of $473,000, compared to a reversal of credit losses of $844,000 during the six months ended June 30, 2024. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $556,000 for the six months ended June 30, 2025, as compared to net recoveries of $57,000 for the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company recorded a recovery of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower.

Non-Interest Income

For the six months ended June 30, 2025, non-interest income decreased $338,000, or 5.2%, from $6.5 million during the six months ended June 30, 2024 to $6.2 million. During the same period, service charges and fees on deposits increased $252,000, or 5.5%, and income from BOLI increased $34,000, or 3.6%. During the six months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments, compared to a gain of $987,000 during the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $20,000, compared to unrealized gains on marketable equity securities of $12,000 during the six months ended June 30, 2024. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the six months ended June 30, 2025, the Company reported $11,000 in gains from mortgage banking activities and did not have comparable gains or losses during the six months ended June 30, 2024. In addition, during the six months ended June 30, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000 and did not have a comparable gain or loss during the six months ended June 30, 2025.

Non-Interest Expense

For the six months ended June 30, 2025, non-interest expense increased $1.7 million, or 6.0%, to $30.8 million, compared to $29.1 million for the six months ended June 30, 2024. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.1 million, or 6.8%, due to an increase in deferred compensation expense to reflect updated performance award estimates. Advertising expense increased $184,000, or 26.7%, data processing increased $107,000, or 6.3%, FDIC insurance expense increased $97,000, or 13.2%, occupancy expense increased $96,000, or 3.7%, debit card and ATM processing fees increased $56,000, or 4.7%, software related expenses increased $39,000, or 3.1%, professional fees increased $19,000, or 1.7%, furniture and equipment expense increased $11,000, or 1.1%, and other non-interest expense increased $36,000, or 1.4%.

For the six months ended June 30, 2025, the efficiency ratio was 78.4%, compared to 80.1% for the six months ended June 30, 2024. For the six months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 78.9%, compared to 82.4% for the six months ended June 30, 2024. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues, defined as the sum of net interest income and non-interest income, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The adjusted efficiency ratio is a non-GAAP measure. See pages 19-21 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the six months ended June 30, 2025 was $2.1 million, representing an effective tax rate of 23.2%, compared to $1.6 million, representing an effective tax rate of 19.8%, for six months ended June 30, 2024. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Balance Sheet

At June 30, 2025, total assets were $2.7 billion, an increase of $58.1 million, or 2.2%, from December 31, 2024. The increase in total assets was primarily due to an increase in total gross loans of $22.1 million, or 1.1%, an increase in cash and cash equivalents of $26.9 million, or 40.4%, and an increase in investment securities of $10.8 million, or 2.9%.

Investments

At June 30, 2025, the investment securities portfolio totaled $376.9 million, or 13.9% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At June 30, 2025, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $18.1 million, or 11.3%, from $160.7 million at December 31, 2024 to $178.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $7.4 million, or 3.6%, from $205.0 million at December 31, 2024 to $197.7 million at June 30, 2025.

At June 30, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $26.6 million, or 12.9% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities at December 31, 2024. At June 30, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $35.4 million, or 17.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2024.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $8.7 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2025 and December 31, 2024, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support’s the Bank’s objective to provide liquidity.

Total Loans

Total gross loans increased $22.1 million, or 1.1%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 77.1% of total assets, at June 30, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $29.7 million, or 3.8%, and an increase in commercial and industrial loans of $22.8 million, or 10.8%. The increase in commercial and industrial loans was partially due to an increase in line of credit utilization, from 21.9% at December 31, 2024 to 26.1% at June 30, 2025. These increases were partially offset by a decrease in commercial real estate loans of $29.5 million, or 2.7%, and a decrease in consumer loans of $879,000, or 20.0%.

The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:

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

Commercial real estate loans:
Non-owner occupied	$	859,162	$	880,828
Owner occupied		187,043		194,904
Total commercial real estate loans		1,046,205		1,075,732

Residential real estate loans:
Residential		677,356		653,802
Home equity		128,003		121,857
Total residential real estate loans		805,359		775,659

Commercial and industrial loans		234,505		211,656

Consumer loans		3,512		4,391
Total gross loans		2,089,581		2,067,438
Unamortized premiums and net deferred loans fees and costs		3,050		2,751
Total loans	$	2,092,631	$	2,070,189

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $3.9 million, or 0.18% of total loans, at June 30, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At June 30, 2025, nonaccrual loans totaled $5.8 million, or 0.27% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At June 30, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. Total nonaccrual assets totaled $5.8 million, or 0.21% of total assets, at June 30, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At June 30, 2025 and December 31, 2024, the Company did not have any other real estate owned.

At June 30, 2025, the allowance for credit losses was $19.7 million, or 0.94% of total loans and 343.1% of nonaccrual loans, compared to $19.5 million, or 0.94% of total loans and 362.9% of nonaccrual loans, at December 31, 2024. Total criticized loans, defined as special mention and substandard loans, decreased $12.3 million, or 32.0%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $26.1 million, or 1.2% of total gross loans, at June 30, 2025.

Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At June 30, 2025, the commercial real estate portfolio totaled $1.0 billion, and represented 50.1% of total gross loans. Of the $1.0 billion, $859.2 million, or 82.1%, was categorized as non-owner occupied commercial real estate and represented 316.9% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

At June 30, 2025, total deposits were $2.3 billion and increased $67.5 million, or 3.0%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $81.4 million, or 5.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.4% of total deposits, at June 30, 2025. Non-interest-bearing deposits increased $29.6 million, or 5.2%, to $595.3 million, and represent 25.5% of total deposits, money market accounts increased $25.3 million, or 3.8%, to $686.8 million, interest-bearing checking accounts increased $18.3 million, or 12.2%, to $168.7 million, and savings accounts increased $8.1 million, or 4.5%, to $189.7 million.

Time deposits decreased $13.9 million, or 2.0%, from $703.6 million at December 31, 2024 to $689.7 million at June 30, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at June 30, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At June 30, 2025, the Bank’s uninsured deposits totaled $688.4 million, or 29.5% of total deposits, compared to $643.6 million, or 28.4% of total deposits, at December 31, 2024.

The table below is a summary of our deposit balances for the periods noted:


	June 30, 2025		December 31, 2024		June 30, 2024
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	595,263	$	565,620	$	553,329
Interest-bearing accounts		168,679		150,348		149,100
Savings accounts		189,716		181,618		186,171
Money market accounts		686,774		661,478		611,501
Total Core Deposits	$	1,640,432	$	1,559,064	$	1,500,101
Time Deposits:		689,681		703,583		671,708
Total Deposits:	$	2,330,113	$	2,262,647	$	2,171,809

FHLB and Subordinated Debt

At June 30, 2025, total borrowings decreased $1.3 million, or 1.1%, from $123.1 million at December 31, 2024 to $121.8 million. At June 30, 2025, short-term borrowings decreased $1.4 million, or 25.1%, to $4.0 million, compared to $5.4 million at December 31, 2024. Long-term borrowings were $98.0 million at June 30, 2025 and December 31, 2024. At June 30, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.

As of June 30, 2025, the Company had $452.7 million of additional borrowing capacity at the FHLB, $383.8 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At June 30, 2025, shareholders’ equity was $239.4 million, or 8.8% of total assets, compared to $235.9 million, or 8.9% of total assets, at December 31, 2024. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $3.5 million, cash dividends paid of $2.9 million, repurchase of shares at a cost of $4.7 million, partially offset by net income of $6.9 million. At June 30, 2025, total shares outstanding were 20,494,501. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.

	June 30, 2025				December 31, 2024
	Company		Bank		Company		Bank
Total Capital (to Risk Weighted Assets)	14.42	%	13.69	%	14.38	%	13.65	%
Tier 1 Capital (to Risk Weighted Assets)	12.40	%	12.67	%	12.37	%	12.64	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.40	%	12.67	%	12.37	%	12.64	%
Tier 1 Leverage Ratio (to Adjusted Average Assets)	9.10	%	9.29	%	9.14	%	9.34	%

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “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, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
unstable political and economic conditions, including changes in tariff policies, which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
INTEREST AND DIVIDEND INCOME:
Loans	$	26,214		$	24,984		$	25,183		$	25,134		$	24,340		$	51,198		$	48,581
Securities		2,588			2,422			2,273			2,121			2,141			5,010			4,255
Other investments		169			191			214			189			148			360			284
Short-term investments		641			840			916			396			173			1,481			286
Total interest and dividend income		29,612			28,437			28,586			27,840			26,802			58,049			53,406

INTEREST EXPENSE:
Deposits		10,437			11,376			11,443			11,165			10,335			21,813			19,628
Short-term borrowings		47			54			60			71			186			101			469
Long-term debt		1,232			1,219			1,557			1,622			1,557			2,451			2,985
Subordinated debt		254			254			253			254			254			508			508
Total interest expense		11,970			12,903			13,313			13,112			12,332			24,873			23,590

Net interest and dividend income		17,642			15,534			15,273			14,728			14,470			33,176			29,816

(REVERSAL OF) PROVISION FOR CREDIT LOSSES		(615	)		142			(762	)		941			(294	)		(473	)		(844	)

Net interest and dividend income after (reversal of) provision for credit losses		18,257			15,392			16,035			13,787			14,764			33,649			30,660

NON-INTEREST INCOME:
Service charges and fees on deposits		2,528			2,284			2,301			2,341			2,341			4,812			4,560
Income from bank-owned life insurance		516			473			486			470			502			989			955
Unrealized gain (loss) on marketable equity securities		25			(5	)		(9	)		10			4			20			12
Gain (loss) on sale of mortgages		4			7			(11	)		246			–			11			–
Gain on non-marketable equity investments		243			–			300			–			987			243			987
Loss on disposal of premises and equipment		–			–			–			–			–			–			(6	)
Other income		95			–			187			74			–			95			–
Total non-interest income		3,411			2,759			3,254			3,141			3,834			6,170			6,508

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,831			8,413			8,429			8,112			7,901			17,244			16,145
Occupancy		1,265			1,412			1,256			1,217			1,218			2,677			2,581
Furniture and equipment		491			487			505			483			483			978			967
Data processing		933			882			900			869			846			1,815			1,708
Software		645			659			642			612			566			1,304			1,265
Debit/ATM card processing expense		674			577			593			649			643			1,251			1,195
Professional fees		623			546			471			540			581			1,169			1,150
FDIC insurance		399			431			389			338			323			830			733
Advertising		443			429			310			271			339			872			688
Other		1,352			1,348			1,431			1,315			1,414			2,700			2,664
Total non-interest expense		15,656			15,184			14,926			14,406			14,314			30,840			29,096

INCOME BEFORE INCOME TAXES		6,012			2,967			4,363			2,522			4,284			8,979			8,072

INCOME TAX PROVISION		1,422			664			1,075			618			771			2,086			1,598
NET INCOME	$	4,590		$	2,303		$	3,288		$	1,904		$	3,513		$	6,893		$	6,474

Basic earnings per share	$	0.23		$	0.11		$	0.16		$	0.09		$	0.17		$	0.34		$	0.31
Weighted average shares outstanding		20,210,650			20,385,481			20,561,749			20,804,162			21,056,173			20,297,582			21,118,571
Diluted earnings per share	$	0.23		$	0.11		$	0.16		$	0.09		$	0.17		$	0.34		$	0.31
Weighted average diluted shares outstanding		20,312,881			20,514,098			20,701,276			20,933,833			21,163,762			20,413,006			21,217,543

Other Data:
Return on average assets (1)		0.69	%		0.35	%		0.49	%		0.29	%		0.55	%		0.52	%		0.51	%
Return on average equity (1)		7.76	%		3.94	%		5.48	%		3.19	%		6.03	%		5.87	%		5.53	%
Efficiency ratio		74.36	%		83.00	%		80.56	%		80.62	%		78.20	%		78.38	%		80.10	%
Adjusted efficiency ratio (2)		75.32	%		82.98	%		81.85	%		80.67	%		82.68	%		78.91	%		82.35	%
Net interest margin		2.80	%		2.49	%		2.41	%		2.40	%		2.42	%		2.64	%		2.50	%
Net interest margin, on a fully tax-equivalent basis		2.82	%		2.51	%		2.43	%		2.42	%		2.44	%		2.66	%		2.52	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, and loss on disposal of premises and equipment.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Cash and cash equivalents	$	93,308		$	110,579		$	66,450		$	72,802		$	53,458
Securities available-for-sale, at fair value		178,785			167,800			160,704			155,889			135,089
Securities held to maturity, at amortized cost		197,671			201,557			205,036			213,266			217,632
Marketable equity securities, at fair value		444			414			397			252			233
Federal Home Loan Bank of Boston and other restricted stock – at cost		5,818			5,818			5,818			7,143			7,143

Loans		2,092,631			2,079,561			2,070,189			2,049,002			2,026,226
Allowance for credit losses		(19,733	)		(19,669	)		(19,529	)		(19,955	)		(19,444	)
Net loans		2,072,898			2,059,892			2,050,660			2,029,047			2,006,782

Bank-owned life insurance		78,045			77,529			77,056			76,570			76,100
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,250			1,344			1,438			1,531			1,625
Other assets		70,443			71,864			73,044			71,492			75,521
TOTAL ASSETS	$	2,711,149		$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070

Total deposits	$	2,330,113		$	2,328,593		$	2,262,647		$	2,224,206		$	2,171,809
Short-term borrowings		4,040			4,520			5,390			4,390			6,570
Long-term debt		98,000			98,000			98,000			128,277			128,277
Subordinated debt		19,771			19,761			19,751			19,741			19,731
Securities pending settlement		–			2,093			8,622			2,513			102
Other liabilities		19,797			18,641			22,770			20,697			23,104
TOTAL LIABILITIES		2,471,721			2,471,608			2,417,180			2,399,824			2,349,593

TOTAL SHAREHOLDERS’ EQUITY		239,428			237,676			235,910			240,655			236,477
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,711,149		$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2025		2025		2024		2024		2024
Shares outstanding at end of period	20,494,501		20,774,319		20,875,713		21,113,408		21,357,849

Operating results:
Net interest income	$	17,642	$	15,534	$	15,273	$	14,728	$	14,470
(Reversal of) provision for credit losses	(615)		142		(762)		941		(294)
Non-interest income	3,411		2,759		3,254		3,141		3,834
Non-interest expense	15,656		15,184		14,926		14,406		14,314
Income before income provision for income taxes	6,012		2,967		4,363		2,522		4,284
Income tax provision	1,422		664		1,075		618		771
Net income	4,590		2,303		3,288		1,904		3,513

Performance Ratios:
Net interest margin	2.80%		2.49%		2.41%		2.40%		2.42%
Net interest margin, on a fully tax-equivalent basis	2.82%		2.51%		2.43%		2.42%		2.44%
Interest rate spread	2.10%		1.74%		1.63%		1.60%		1.66%
Interest rate spread, on a fully tax-equivalent basis	2.12%		1.76%		1.65%		1.62%		1.67%
Return on average assets	0.69%		0.35%		0.49%		0.29%		0.55%
Return on average equity	7.76%		3.94%		5.48%		3.19%		6.03%
Efficiency ratio (GAAP)	74.36%		83.00%		80.56%		80.62%		78.20%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾	75.32%		82.98%		81.85%		80.67%		82.68%

Per Common Share Data:
Basic earnings per share	$	0.23	$	0.11	$	0.16	$	0.09	$	0.17
Earnings per diluted share	0.23		0.11		0.16		0.09		0.17
Cash dividend declared	0.07		0.07		0.07		0.07		0.07
Book value per share	11.68		11.44		11.30		11.40		11.07
Tangible book value per share (non-GAAP) ⁽²⁾	11.01		10.78		10.63		10.73		10.41

Asset Quality:
30-89 day delinquent loans	$	2,525	$	2,459	$	3,694	$	3,059	$	3,270
90 days or more delinquent loans	1,328		2,027		1,301		1,253		2,280
Total delinquent loans	3,853		4,486		4,995		4,312		5,550
Total delinquent loans as a percentage of total loans	0.18%		0.22%		0.24%		0.21%		0.27%
Nonaccrual loans	$	5,752	$	6,014	$	5,381	$	4,873	$	5,845
Nonaccrual loans as a percentage of total loans	0.27%		0.29%		0.26%		0.24%		0.29%
Nonaccrual assets as a percentage of total assets	0.21%		0.22%		0.20%		0.18%		0.23%
Allowance for credit losses as a percentage of nonaccrual loans	343.06%		327.05%		362.93%		409.50%		332.66%
Allowance for credit losses as a percentage of total loans	0.94%		0.95%		0.94%		0.97%		0.96%
Net loan (recoveries) charge-offs	$	(585)	$	29	$	(128)	$	98	$	10
Net loan (recoveries) charge-offs as a percentage of average loans	(0.03)%		0.00%		(0.01)%		0.00%		0.00%
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and loss on disposal of premises and equipment.
(2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	June 30, 2025								March 31, 2025							June 30, 2024
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,081,319		$	26,335		5.08	%	$	2,073,486	$	25,105		4.91	%	$	2,017,127	$	24,454		4.88	%
Securities(2)		375,074			2,588		2.77			365,371		2,422		2.69			354,850		2,141		2.43
Other investments		15,062			169		4.50			14,819		191		5.23			14,328		148		4.15
Short-term investments(3)		58,622			641		4.39			76,039		840		4.48			14,328		173		4.86
Total interest-earning assets		2,530,077			29,733		4.71			2,529,715		28,558		4.58			2,400,633		26,916		4.51
Total non-interest-earning assets		156,247								156,733							156,701
Total assets	$	2,686,324							$	2,686,448						$	2,557,334

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	165,329			424		1.03		$	140,960		250		0.72		$	131,449		253		0.77
Savings accounts		188,498			55		0.12			183,869		40		0.09			185,690		51		0.11
Money market accounts		687,621			3,600		2.10			704,215		3,968		2.29			622,062		2,930		1.89
Time deposit accounts		690,555			6,358		3.69			702,748		7,118		4.11			650,054		7,101		4.39
Total interest-bearing deposits		1,732,003			10,437		2.42			1,731,792		11,376		2.66			1,589,255		10,335		2.62
Borrowings		122,070			1,533		5.04			122,786		1,527		5.04			160,484		1,997		5.00
Interest-bearing liabilities		1,854,073			11,970		2.59			1,854,578		12,903		2.82			1,749,739		12,332		2.83
Non-interest-bearing deposits		572,833								569,638							548,781
Other non-interest-bearing liabilities		22,207								25,464							24,453
Total non-interest-bearing liabilities		595,040								595,102							573,234
Total liabilities		2,449,113								2,449,680							2,322,973
Total equity		237,211								236,768							234,361
Total liabilities and equity	$	2,686,324							$	2,686,448						$	2,557,334
Less: Tax-equivalent adjustment(2)					(121	)						(121	)						(114	)
Net interest and dividend income				$	17,642						$	15,534						$	14,470
Net interest rate spread(4)							2.10	%						1.74	%						1.66	%
Net interest rate spread, on a tax-equivalent basis(5)							2.12	%						1.76	%						1.67	%
Net interest margin(6)							2.80	%						2.49	%						2.42	%
Net interest margin, on a tax-equivalent basis(7)							2.82	%						2.51	%						2.44	%
Ratio of average interest-earning assets to average interest-bearing liabilities							136.46	%						136.40	%						137.20	%

The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2025 and 2024 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Six Months Ended June 30,
		2025							2024
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,077,424	$	51,440		4.99	%	$	2,019,420	$	48,805		4.86	%
Securities(2)		370,249		5,010		2.73			357,171		4,255		2.40
Other investments		14,941		360		4.86			13,411		284		4.26
Short-term investments(3)		67,282		1,481		4.44			11,857		286		4.85
Total interest-earning assets		2,529,896		58,291		4.65			2,401,859		53,630		4.49
Total non-interest-earning assets		156,489							155,555
Total assets	$	2,686,385						$	2,557,414

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	153,212		674		0.89	%	$	133,504		488		0.74	%
Savings accounts		186,196		95		0.10			185,907		90		0.10
Money market accounts		695,872		7,569		2.19			624,164		5,517		1.78
Time deposit accounts		696,618		13,475		3.90			638,970		13,533		4.26
Total interest-bearing deposits		1,731,898		21,813		2.54			1,582,545		19,628		2.49
Short-term borrowings and long-term debt		122,426		3,060		5.04			160,643		3,962		4.96
Total interest-bearing liabilities		1,854,324		24,873		2.70			1,743,188		23,590		2.72
Non-interest-bearing deposits		571,245							553,246
Other non-interest-bearing liabilities		23,826							25,672
Total non-interest-bearing liabilities		595,071							578,918

Total liabilities		2,449,395							2,322,106
Total equity		236,990							235,308
Total liabilities and equity	$	2,686,385						$	2,557,414
Less: Tax-equivalent adjustment (2)				(242	)						(224	)
Net interest and dividend income			$	33,176						$	29,816
Net interest rate spread (4)						1.92	%						1.75	%
Net interest rate spread, on a tax-equivalent basis (5)						1.95	%						1.77	%
Net interest margin (6)						2.64	%						2.50	%
Net interest margin, on a tax-equivalent basis (7)						2.66	%						2.52	%
Ratio of average interest-earning assets to average interest-bearing liabilities						136.43	%						137.79	%

(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	(Dollars in thousands, except per share data)

Loan interest (no tax adjustment)	$	26,214		$	24,984		$	25,183		$	25,134		$	24,340
Tax-equivalent adjustment		121			121			128			119			114
Loan interest (tax-equivalent basis)	$	26,335		$	25,105		$	25,311		$	25,253		$	24,454

Net interest income (no tax adjustment)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470
Tax equivalent adjustment		121			121			128			119			114
Net interest income (tax-equivalent basis)	$	17,763		$	15,655		$	15,401		$	14,847		$	14,584

Net interest income (no tax adjustment)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470
Less:
Prepayment penalties and fees		425			–			–			–			8
Adjusted net interest income (non-GAAP)	$	17,217		$	15,534		$	15,273		$	14,728		$	14,462

Average interest-earning assets	$	2,530,077		$	2,529,715		$	2,517,017		$	2,441,236		$	2,400,633
Net interest margin (no tax adjustment)		2.80	%		2.49	%		2.41	%		2.40	%		2.42	%
Net interest margin, tax-equivalent		2.82	%		2.51	%		2.43	%		2.42	%		2.44	%
Net interest margin, excluding prepayment penalties and fees (non-GAAP)		2.73	%		2.49	%		2.41	%		2.40	%		2.42	%

Book Value per Share (GAAP)	$	11.68		$	11.44		$	11.30		$	11.40		$	11.07
Non-GAAP adjustments:
Goodwill		(0.61	)		(0.60	)		(0.60	)		(0.59	)		(0.58	)
Core deposit intangible		(0.06	)		(0.06	)		(0.07	)		(0.08	)		(0.08	)
Tangible Book Value per Share (non-GAAP)	$	11.01		$	10.78		$	10.63		$	10.73		$	10.41

	For the quarter ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	15,656		$	15,184		$	14,926		$	14,406		$	14,314

Net Interest Income (GAAP)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470

Non-interest Income (GAAP)	$	3,411		$	2,759		$	3,254		$	3,141		$	3,834
Non-GAAP adjustments:
Unrealized (gains) losses on marketable equity securities		(25	)		5			9			(10	)		(4	)
Gain on non-marketable equity investments		(243	)		–			(300	)		–			(987	)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	3,143		$	2,764		$	2,963		$	3,131		$	2,843
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	20,785		$	18,298		$	18,236		$	17,859		$	17,313

Efficiency Ratio (GAAP)		74.36	%		83.00	%		80.56	%		80.62	%		78.20	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		75.32	%		82.98	%		81.85	%		80.67	%		82.68	%

	For the six months ended
	6/30/2025	6/30/2024
	(Dollars in thousands)

Loan income (no tax adjustment)	$ 51,198	$ 48,581
Tax-equivalent adjustment	242	224
Loan income (tax-equivalent basis)	$ 51,440	$ 48,805

Net interest income (no tax adjustment)	$ 33,176	$ 29,816
Tax equivalent adjustment	242	224
Net interest income (tax-equivalent basis)	$ 33,418	$ 30,040

Net interest income (no tax adjustment)	$ 33,176	$ 29,816
Less:
Prepayment penalties and fees	425	8
Adjusted net interest income (non-GAAP)	$ 32,751	$ 29,808

Average interest-earning assets	$ 2,529,896	$ 2,401,859
Net interest margin (no tax adjustment)	2.64%	2.50%
Net interest margin, tax-equivalent	2.66%	2.52%
Net interest margin, excluding prepayment penalties and fees (non-GAAP)	2.61%	2.50%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$ 30,840	$ 29,096

Net Interest Income (GAAP)	$ 33,176	$ 29,816

Non-interest Income (GAAP)	$ 6,170	$ 6,508
Non-GAAP adjustments:
Unrealized gains on marketable equity securities	(20)	(12)
Loss on disposal of premises and equipment, net	–	6
Gain on non-marketable equity investments	(243)	(987)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$ 5,907	$ 5,515
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$ 39,083	$ 35,331

Efficiency Ratio (GAAP)	78.38%	80.10%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))	78.91%	82.35%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

July 23, 2025

MIL-OSI Analysis: Is today’s political climate making dating harder for young people?

Source: The Conversation – UK – By Katherine Twamley, Professor of Sociology, UCL

Drazen Zigic/Shutterstock

The last year has highlighted a political divide between young men and women. Data from elections in several countries shows that women aged 18-29 are becoming significantly more liberal, while young men are leaning more conservative. And a recent 30-country study found generation Z more divided than other generations on key questions around gender equality.

At the same time, there is growing evidence that this cohort is turning away from traditional dating and long-term romantic relationships. According to the National Survey of Family Growth, in the US between 2022 and 2023, 24% of men and 13% of women aged 22-34 reported no sexual activity in the past year.

This is a significant increase on previous years. And American teens are less likely to have romantic relationships than teenagers of previous generations.

In the UK, surveys over the past decades reveal a trend in reduced sexual activity, in terms of both frequency and number of partners, among young people. Dating apps are also losing their lustre, with the top platforms seeing significant user declines among heterosexual gen Z users in the last year.

Is the gendered political divide making dating harder? As sociologists of intimacy, our work has shown how relationships are affected by larger social, economic and political trends.

Our research on enduring gender inequality has shown that it can affect the perceived quality of intimate relationships and relationship stability. For example, heterosexual relationships are often underpinned by unequal divisions of emotional and domestic labour, even among partners with similar incomes.

Dating today can feel like a mix of endless swipes, red flags and shifting expectations. From decoding mixed signals to balancing independence with intimacy, relationships in your 20s and 30s come with unique challenges. Love IRL is the latest series from Quarter Life that explores it all.

These research-backed articles break down the complexities of modern love to help you build meaningful connections, no matter your relationship status.

Some commentators and researchers have identified a trend of “heteropessimism” — a disillusionment with heterosexual relationships, often marked by irony, detachment or frustration. Anecdotally, women have widely expressed weariness with the gender inequality that can emerge in relationships with men.

But heteropessimism has been identified among men too, and research has found that women are, on average, happier being single than men.

Take domestic labour. Despite progress towards gender equality in many areas, data shows that women in mixed sex relationships still shoulder the majority of housework and care. In the UK, women carry out an average of 60% more unpaid work than men. This gap persists even among couples who both work full-time.

In Korea, persistent gender inequality is thought to be behind the 4B movement. Young Korean women, fed up with sexist stereotypes which tie women to traditional roles, have declared their rejection of marriage, childbirth, dating and sex with men.

Beyond Korea, young women have declared themselves “boy sober”. Harassment, abuse and “toxic behaviour” on dating apps has reportedly driven young women away from wanting to date at all.

Others have embraced voluntary celibacy. One reason is that, for some women, the erosion of reproductive rights, such as the overturning of Roe v Wade in the US, sharpens the political stakes of intimacy. Political disagreements that may once have been surmountable in a relationship are now deeply personal, affecting womens’ bodily autonomy and experiences of misogyny.

Of course, gender inequality does not just negatively affect women. In education, evidence suggests boys are falling behind girls at every level in the UK, though recent research shows this has reversed in maths and science. Men report feeling locked out of opportunities to care for their children through old-fashioned parental leave norms, which offer minimal opportunities for fathers to spend time with their children.

Some influencers capitalise on real and perceived losses for men, pushing regressive and sexist views of women and relationships into the social media feeds of millions of boys and young men.

Given all of the above, it is not entirely surprising that young men are more likely than young women to report that feminism has done more harm than good.

Anxiety and uncertainty

But there are wider political and economic issues that affect both young men and women, and how (or whether) they date each other. Gen Z are coming of age in a time of economic depression. Research shows that those experiencing financial stress have difficulties in establishing and maintaining intimate relationships.

This may partly be because early stages of romance are strongly associated with consumerism – dinner out, gifts and so on. But there is also a lack of mental space for dating when people are under pressure to make ends meet. Insecure finances also affect young people’s ability to afford their own homes and have access to private spaces with a partner.

There are, additionally, growing rates of mental ill health reported by young people worldwide. Anxieties abound around the pandemic, economic recession, the climate and international conflict.

These anxieties play out in the dating scene, with some feeling that entering into a romantic relationship is another risk to be avoided. Research with UK-based heterosexual dating app users aged 18-25 found that they often saw dating as a psychological stand-off – where expressing care too soon could result in humiliation or rejection.

Be vulnerable and risk rejection, or jump ship?
Dedraw Studio/Shutterstock

The result was that neither young men nor women felt safe expressing genuine interest. This left people stuck in the much-lamented “talking stage”, where relationships fail to progress.

As sociologist Lisa Wade and others have shown, even when casual sex is part of the picture, emotional attachment is often actively resisted. The proliferation of “hook-up culture” – characterised by casual sexual encounters that prioritise physical pleasure over emotional intimacy – may partly be a response to a cultural discomfort with vulnerability.

Gen Z’s turn away from dating doesn’t necessarily reflect a lack of desire for connection, but perhaps a heightened sense of vulnerability related to larger trends in mental ill-health and social, economic and political insecurity.

It may not be that young people are rejecting relationships. Rather, they may be struggling to find emotionally safe (and affordable) spaces where intimacy can develop.

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

– ref. Is today’s political climate making dating harder for young people? – https://theconversation.com/is-todays-political-climate-making-dating-harder-for-young-people-257844

MIL OSI Analysis –

July 23, 2025

Defence, diaspora and digital: PM Modi’s UK trip to reinforce bilateral agenda

Source: Government of India

Source: Government of India (4)

Prime Minister Narendra Modi will undertake a two-nation visit from July 23 to 26, starting with the United Kingdom at the invitation of British Prime Minister Keir Starmer. This will be his fourth official visit to the UK, reaffirming the growing depth and breadth of India-UK ties, particularly in defence, innovation, healthcare, education, and diaspora engagement.

Defence cooperation between the two countries spans joint exercises, technological collaboration, and knowledge exchange. The Indian and British armed forces regularly participate in bilateral and multilateral drills. In 2023, the Indian Navy joined Exercise Konkan in the Arabian Sea, while the Indian Air Force took part in Exercise Cobra Warrior at Royal Air Force Waddington. The Indian Army participated in the seventh edition of Exercise Ajeya Warrior held in Salisbury, UK. A major multinational air exercise, Exercise Tarang Shakti, is scheduled for August 2024. These engagements reflect a strategic partnership aimed at enhancing operational synergy and promoting indigenous defence production under India’s Make in India initiative.

In the area of science and technology, India and the UK have established themselves as close partners, with joint research programmes amounting to $387–516 million (approx. £300–400 million). The India-UK Science and Innovation Council, which convenes biennially, provides the framework for cooperation in emerging technologies such as artificial intelligence, clean energy, pandemic preparedness, and quantum science. During the April 2023 SIC meeting in the UK, an MoU was signed for expanded collaboration, including the creation of a new India-UK Net Zero Innovation Virtual Centre focused on industrial decarbonisation. India was also named a partner country in the UK’s International Science Partnership Fund, building upon the Newton-Bhabha Fund legacy.

Healthcare cooperation saw a pivotal moment during the COVID-19 pandemic, particularly with the joint development of the AstraZeneca vaccine by the UK and the Serum Institute of India. In July 2022, both nations signed the India-UK Framework Agreement for collaboration on healthcare workforce, aiming to streamline the recruitment and training of healthcare professionals. As per UK government data from June 2023, 60,533 Indian nationals are working in the National Health Service (NHS), the second-highest after British citizens. Among doctors in the NHS, 18 percent are of Asian origin, including 10,865 Indians. There are 31,992 Indian nurses and 11,499 clinical support staff, reflecting India’s critical contribution to the UK’s healthcare system.

Education continues to be a key pillar of the bilateral relationship. The number of Indian students enrolling in UK universities has consistently risen since 2015-16, with an estimated 170,000 currently studying in the country. A landmark development under India’s New Education Policy: the University of Southampton’s Gurugram campus was recently inaugurated, becoming the first fully operational foreign university campus in India under UGC regulations. Further boosting collaboration, both nations signed a mutual recognition of academic qualifications MoU in July 2022.

Mobility and migration are being actively facilitated under the Migration and Mobility Partnership Agreement signed in May 2021. The Young Professional Scheme, announced in November 2022 by Prime Ministers Narendra Modi and Rishi Sunak on the sidelines of the G20 Bali Summit, enables 3,000 young graduates between 18 and 30 years of age to live and work in each other’s countries for up to two years.

The Indian diaspora in the UK remains a cornerstone of bilateral relations. According to the 2021 Census, 1.864 million people of Indian origin reside in the UK, forming 2.6 percent of its population. Of these, 369,000 hold Indian passports. The diaspora has made significant contributions across academia, medicine, science, arts, business, and politics. A report by Grant Thornton and FICCI in 2022 identified over 65,000 Indian diaspora-owned businesses in the UK. Among them, 654 companies with annual revenues exceeding $129,000 (approx. £100,000) together generated $47.5 billion (approx. £36.84 billion) in revenue, paid over $1.29 billion (approx. £1 billion) in corporate taxes, invested more than $2.58 billion (approx. £2 billion) in capital expenditure, and supported over 174,000 jobs.

July 23, 2025

MIL-OSI: ASM reports second quarter 2025 results

Source: GlobeNewswire (MIL-OSI)

Almere, The Netherlands
July 22, 2025, 6 p.m. CET

Solid Q2 results against a backdrop of continued mixed market conditions

ASM International N.V. (Euronext Amsterdam: ASM) today reports its Q2 2025 results (unaudited).

Financial highlights

€ million	Q2 2024	Q1 2025	Q2 2025
New orders	755.4	834.2	702.5
yoy change % at constant currencies	56%	14%	(4%)

Revenue	706.1	839.2	835.6
yoy change % as reported	6%	31%	18%
yoy change % at constant currencies	6%	26%	23%

Gross profit	352.0	447.8	433.2
Gross profit margin %	49.8 %	53.4 %	51.8 %

Operating result	177.6	266.2	258.5
Operating result margin %	25.1 %	31.7 %	30.9 %

Adjusted operating result ¹	182.3	271.0	263.2
Adjusted operating result margin %¹	25.8 %	32.3 %	31.5 %

Net earnings (losses)	159.0	(28.9)	202.4
Adjusted net earnings ¹	164.7	191.9	173.0

¹ Adjusted figures are non-IFRS performance measures. Refer to Annex 3 for a reconciliation of non-IFRS performance measures.

New orders of €702 million in Q2 2025 decreased by 4% over the same period last year at constant currency (decreased by 7% as reported). Compared to Q1 2025, orders decreased by 10% at constant currency. This sequential decrease is explained by lower advanced logic/foundry orders due to timing of orders. The y-o-y decrease was mainly due to the lumpy nature of quarterly order intake and compared to a relatively high memory contribution in Q2 2024.

Revenue of €836 million increased by 23% at constant currencies (increased by 18% as reported) from Q2 last year. At constant currencies, revenue increased by 7% compared to Q1 2025, which was above our guidance range of +1% to +6% at constant currencies. Revenue in Q2 2025 was driven by foundry, followed by memory, and logic.

Gross profit margin of 51.8% in Q2 2025 improved compared to 49.8% in Q2 last year, while it decreased, as expected, compared to 53.4% in Q1 2025. Q2 2025 margin remained healthy thanks to mix, including continued strong sales to China.

Adjusted operating result margin of 31.5% increased by 5.7% points compared to the same period last year and slightly decreased by 0.8% points compared to previous quarter. The y-o-y improvement is mainly due to higher gross profit margin this quarter, and a one-off tax charge which resulted in a higher SG&A cost last year.

Reported net earnings included a reversal of impairment of €34 million from our stake in ASMPT (Q1 included a €215 million impairment), triggered by the increase in market valuation in the recent period. There is no cash impact. Following the impairment, and in line with our accounting policy, the changes in the market value of ASMPT will be included in our quarterly net results in case of further decline or until the impairment charge has been reversed.

Comment

“ASM continued to deliver solid quarterly results against a backdrop of mixed market conditions. Sales increased by 23% year-on-year at constant currencies to €836 million,” said Hichem M’Saad, CEO of ASM. “Compared to the first quarter of 2025 revenue increased by +7%, which was above the top end of our guidance. The y-o-y increase was led by the logic/foundry segment as well as continued momentum in our spares & services business.

The market environment continued to show a mixed picture in the second quarter. Growth in AI is fueling ongoing capacity expansions in the leading-edge logic/foundry and HBM-related DRAM segments, while conditions in most of the other market segments are still slow.

Bookings amounted to €702 million in Q2 2025, down 10% compared to Q1 at constant currencies, mainly due to lower advanced logic/foundry bookings. However, the underlying trend in this segment, particularly in gate-all-around (GAA), remains healthy and we expect related leading-edge logic/foundry bookings to pick up again in Q3.

The gross margin, while down from a high level of 53.4%, remained strong at 51.8%, again driven by product and customer mix, improved operational efficiency and a better-than-expected contribution from China sales. For the full year 2025, we still expect the gross margin to be in the upper half of the target range of 46%-50%. This excludes any potential direct impact from tariffs, which at this point remains difficult to predict. We have various scenarios in place to mitigate potential financial impacts.

Operating profit increased strongly in Q2, by approximately 40% adjusted for a one-off expense last year, on the back of increased sales, gross margin improvement and continued cost control, whilst continuing to invest in R&D.

We are well positioned to at least maintain our ALD and epi market share from the first to the second GAA logic/foundry nodes and remain focused on further share gains in memory, as ALD and epi intensity grows in upcoming DRAM nodes.”

Outlook

We expect revenue in the second half of 2025 to be approximately similar to the level in the first half, at constant currencies. For Q3 2025, we expect total ASM revenue to be flat to slightly lower, in a range of 0% to -5% at constant currencies compared to Q2 2025. As a reminder, with the Q1 2025 results we changed our quarterly revenue guidance from absolute Euro amounts to growth rates at constant currencies, given the increased exchange rate volatility in the recent periods and ASM’s significant USD revenue exposure (>80% of sales).
For Q3 2025, we expect advanced logic/foundry bookings to be higher than in Q2 2025 and China bookings to be lower, with the overall book-to-bill in Q3 projected to be below 1.

Based on comparable sales in the second half versus the first half, we expect revenue growth at constant currencies in 2025 to be around the midpoint of the guidance range of +10% to +20%. We continue to expect to outperform the WFE market, which is forecasted to grow slightly this year. Uncertainties related to tariffs, geopolitical tensions and the overall economic outlook continue to be relatively high.
The key growth driver for ASM this year is the high-volume manufacturing ramp of the 2nm GAA node. Despite some further shifts in capex forecasts among customers in this segment, our view for a strong increase in advanced logic/foundry sales in 2025 has not changed. Demand in advanced HBM-related DRAM applications remains solid, but conditions in the other parts of the memory market are sluggish. Against a very strong level last year, we still expect the memory contribution to drop this year (to less than 20% of equipment sales in 2025 versus 25% in 2024).

In the power/analog/wafer segment equipment demand remains depressed with no meaningful sales recovery in the remainder of the year, despite some early signs of improvement in the related end markets.
Demand in the Chinese market held up better than initially expected in the first half. We now expect China equipment sales in 2025 to be around the top end of the previously guided range of low to high 20s percentage of total ASM revenue. China sales and bookings in the second half are projected to be lower than in the first half.

Share buyback program

The €150 million share buyback program, announced in February 2025, started on April 30, 2025. On June 30, 2025, 40% of the program was completed at an average share price of €486.48 under ASM’s share buyback program (of which 28.6% has been delivered and settled in cash within the reporting period, and the remainder on July 1, 2025).

Investor Day

We will host our 2025 Investor Day on September 23. Speakers will include our CEO, CFO and other members of ASM’s senior management team. Further details will be announced later.

Interim financial report

ASM International N.V. (Euronext Amsterdam: ASM) today also publishes its Interim Financial Report for the six-month period ended June 30, 2025.

This report includes an Interim Management Board Report, including ESG update, and condensed consolidated interim financial statements prepared in accordance with IAS 34 (Interim Financial Reporting). The Interim Financial Report comprises regulated information within the meaning of the Dutch Financial Markets Supervision Act (“Wet op het Financieel Toezicht”) and is available in full on our website www.asm.com.

About ASM

ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International’s common stock trades on the Euronext Amsterdam Stock Exchange (symbol: ASM). For more information, visit ASM’s website at www.asm.com.

Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, pandemics, epidemics and other risks indicated in the company’s reports and financial statements. The company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Quarterly earnings conference call details

ASM will host the quarterly earnings conference call and webcast on Wednesday, July 23, 2025, at 3:00 p.m. CET.

Conference-call participants should pre-register using this link to receive the dial-in numbers, passcode and a personal PIN, which are required to access the conference call.

A simultaneous audio webcast and replay will be accessible at this li nk.

Contacts
Investor and media relations	Investor relations
Victor Bareño	Valentina Fantigrossi
T: +31 88 100 8500	T: +31 88 100 8502
E: investor.relations@asm.com	E: investor.relations@asm.com

The MIL Network –

July 23, 2025

MIL-OSI: ASM reports second quarter 2025 results

Source: GlobeNewswire (MIL-OSI)

Almere, The Netherlands
July 22, 2025, 6 p.m. CET

Solid Q2 results against a backdrop of continued mixed market conditions

ASM International N.V. (Euronext Amsterdam: ASM) today reports its Q2 2025 results (unaudited).

Financial highlights

€ million	Q2 2024	Q1 2025	Q2 2025
New orders	755.4	834.2	702.5
yoy change % at constant currencies	56%	14%	(4%)

Revenue	706.1	839.2	835.6
yoy change % as reported	6%	31%	18%
yoy change % at constant currencies	6%	26%	23%

Gross profit	352.0	447.8	433.2
Gross profit margin %	49.8 %	53.4 %	51.8 %

Operating result	177.6	266.2	258.5
Operating result margin %	25.1 %	31.7 %	30.9 %

Adjusted operating result ¹	182.3	271.0	263.2
Adjusted operating result margin %¹	25.8 %	32.3 %	31.5 %

Net earnings (losses)	159.0	(28.9)	202.4
Adjusted net earnings ¹	164.7	191.9	173.0

¹ Adjusted figures are non-IFRS performance measures. Refer to Annex 3 for a reconciliation of non-IFRS performance measures.

New orders of €702 million in Q2 2025 decreased by 4% over the same period last year at constant currency (decreased by 7% as reported). Compared to Q1 2025, orders decreased by 10% at constant currency. This sequential decrease is explained by lower advanced logic/foundry orders due to timing of orders. The y-o-y decrease was mainly due to the lumpy nature of quarterly order intake and compared to a relatively high memory contribution in Q2 2024.

Revenue of €836 million increased by 23% at constant currencies (increased by 18% as reported) from Q2 last year. At constant currencies, revenue increased by 7% compared to Q1 2025, which was above our guidance range of +1% to +6% at constant currencies. Revenue in Q2 2025 was driven by foundry, followed by memory, and logic.

Gross profit margin of 51.8% in Q2 2025 improved compared to 49.8% in Q2 last year, while it decreased, as expected, compared to 53.4% in Q1 2025. Q2 2025 margin remained healthy thanks to mix, including continued strong sales to China.

Adjusted operating result margin of 31.5% increased by 5.7% points compared to the same period last year and slightly decreased by 0.8% points compared to previous quarter. The y-o-y improvement is mainly due to higher gross profit margin this quarter, and a one-off tax charge which resulted in a higher SG&A cost last year.

Reported net earnings included a reversal of impairment of €34 million from our stake in ASMPT (Q1 included a €215 million impairment), triggered by the increase in market valuation in the recent period. There is no cash impact. Following the impairment, and in line with our accounting policy, the changes in the market value of ASMPT will be included in our quarterly net results in case of further decline or until the impairment charge has been reversed.

Comment

“ASM continued to deliver solid quarterly results against a backdrop of mixed market conditions. Sales increased by 23% year-on-year at constant currencies to €836 million,” said Hichem M’Saad, CEO of ASM. “Compared to the first quarter of 2025 revenue increased by +7%, which was above the top end of our guidance. The y-o-y increase was led by the logic/foundry segment as well as continued momentum in our spares & services business.

The market environment continued to show a mixed picture in the second quarter. Growth in AI is fueling ongoing capacity expansions in the leading-edge logic/foundry and HBM-related DRAM segments, while conditions in most of the other market segments are still slow.

Bookings amounted to €702 million in Q2 2025, down 10% compared to Q1 at constant currencies, mainly due to lower advanced logic/foundry bookings. However, the underlying trend in this segment, particularly in gate-all-around (GAA), remains healthy and we expect related leading-edge logic/foundry bookings to pick up again in Q3.

The gross margin, while down from a high level of 53.4%, remained strong at 51.8%, again driven by product and customer mix, improved operational efficiency and a better-than-expected contribution from China sales. For the full year 2025, we still expect the gross margin to be in the upper half of the target range of 46%-50%. This excludes any potential direct impact from tariffs, which at this point remains difficult to predict. We have various scenarios in place to mitigate potential financial impacts.

Operating profit increased strongly in Q2, by approximately 40% adjusted for a one-off expense last year, on the back of increased sales, gross margin improvement and continued cost control, whilst continuing to invest in R&D.

We are well positioned to at least maintain our ALD and epi market share from the first to the second GAA logic/foundry nodes and remain focused on further share gains in memory, as ALD and epi intensity grows in upcoming DRAM nodes.”

Outlook

We expect revenue in the second half of 2025 to be approximately similar to the level in the first half, at constant currencies. For Q3 2025, we expect total ASM revenue to be flat to slightly lower, in a range of 0% to -5% at constant currencies compared to Q2 2025. As a reminder, with the Q1 2025 results we changed our quarterly revenue guidance from absolute Euro amounts to growth rates at constant currencies, given the increased exchange rate volatility in the recent periods and ASM’s significant USD revenue exposure (>80% of sales).
For Q3 2025, we expect advanced logic/foundry bookings to be higher than in Q2 2025 and China bookings to be lower, with the overall book-to-bill in Q3 projected to be below 1.

Based on comparable sales in the second half versus the first half, we expect revenue growth at constant currencies in 2025 to be around the midpoint of the guidance range of +10% to +20%. We continue to expect to outperform the WFE market, which is forecasted to grow slightly this year. Uncertainties related to tariffs, geopolitical tensions and the overall economic outlook continue to be relatively high.
The key growth driver for ASM this year is the high-volume manufacturing ramp of the 2nm GAA node. Despite some further shifts in capex forecasts among customers in this segment, our view for a strong increase in advanced logic/foundry sales in 2025 has not changed. Demand in advanced HBM-related DRAM applications remains solid, but conditions in the other parts of the memory market are sluggish. Against a very strong level last year, we still expect the memory contribution to drop this year (to less than 20% of equipment sales in 2025 versus 25% in 2024).

In the power/analog/wafer segment equipment demand remains depressed with no meaningful sales recovery in the remainder of the year, despite some early signs of improvement in the related end markets.
Demand in the Chinese market held up better than initially expected in the first half. We now expect China equipment sales in 2025 to be around the top end of the previously guided range of low to high 20s percentage of total ASM revenue. China sales and bookings in the second half are projected to be lower than in the first half.

Share buyback program

The €150 million share buyback program, announced in February 2025, started on April 30, 2025. On June 30, 2025, 40% of the program was completed at an average share price of €486.48 under ASM’s share buyback program (of which 28.6% has been delivered and settled in cash within the reporting period, and the remainder on July 1, 2025).

Investor Day

We will host our 2025 Investor Day on September 23. Speakers will include our CEO, CFO and other members of ASM’s senior management team. Further details will be announced later.

Interim financial report

ASM International N.V. (Euronext Amsterdam: ASM) today also publishes its Interim Financial Report for the six-month period ended June 30, 2025.

This report includes an Interim Management Board Report, including ESG update, and condensed consolidated interim financial statements prepared in accordance with IAS 34 (Interim Financial Reporting). The Interim Financial Report comprises regulated information within the meaning of the Dutch Financial Markets Supervision Act (“Wet op het Financieel Toezicht”) and is available in full on our website www.asm.com.

About ASM

ASM International N.V., headquartered in Almere, the Netherlands, and its subsidiaries design and manufacture equipment and process solutions to produce semiconductor devices for wafer processing, and have facilities in the United States, Europe, and Asia. ASM International’s common stock trades on the Euronext Amsterdam Stock Exchange (symbol: ASM). For more information, visit ASM’s website at www.asm.com.

Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, changes in import/export regulations, pandemics, epidemics and other risks indicated in the company’s reports and financial statements. The company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.

This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Quarterly earnings conference call details

ASM will host the quarterly earnings conference call and webcast on Wednesday, July 23, 2025, at 3:00 p.m. CET.

Conference-call participants should pre-register using this link to receive the dial-in numbers, passcode and a personal PIN, which are required to access the conference call.

A simultaneous audio webcast and replay will be accessible at this li nk.

Contacts
Investor and media relations	Investor relations
Victor Bareño	Valentina Fantigrossi
T: +31 88 100 8500	T: +31 88 100 8502
E: investor.relations@asm.com	E: investor.relations@asm.com

The MIL Network –

July 23, 2025

MIL-OSI: Inside Information: Nokia lowers 2025 operating profit guidance due to currency

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Inside information
22 July 2025 at 19:00 EEST

Inside Information: Nokia lowers 2025 operating profit guidance due to currency

Nokia lowers its comparable operating profit guidance range to EUR 1.6 billion to EUR 2.1 billion from EUR 1.9 billion to EUR 2.4 billion.
Adjustment relates to currency headwinds from the weaker USD and tariffs.
Reports preliminary Q2 financial results of approximately EUR 4.55 billion net sales and EUR 0.3 billion comparable operating profit.

Espoo, Finland – Nokia is today providing an update to its financial guidance for full year 2025. Nokia’s underlying business performed as expected through the first half, however, considering currency and tariff headwinds which are outside its control and have transpired since its Q1 results, the company feels it is prudent at this point to lower its operating profit outlook range. Nokia is lowering its comparable operating profit outlook range to EUR 1.6 billion to EUR 2.1 billion (previously EUR 1.9 billion to EUR 2.4 billion). Nokia’s guidance for free cash flow conversion from comparable operating profit remains 50% to 80%. Nokia’s guidance is now based on a EUR:USD rate of 1.17, while the currency rate used in January was 1.04.

Since Nokia provided guidance in January for the full year 2025, two headwinds outside its control are impacting the 2025 outlook. The largest headwind is currency fluctuations (particularly the weaker USD), an approximately EUR 230 million negative impact (EUR 140 million operationally and EUR 90 million from non-cash venture fund currency revaluations). Also, the current tariff landscape is expected to impact full year operating profit by EUR 50 million to EUR 80 million.

Update to Nokia’s financial outlook for 2025

	Updated	Previous (Issued 30 Jan)
Comparable Operating Profit¹	EUR 1.6 billion to EUR 2.1 billion	EUR 1.9 billion to EUR 2.4 billion
Free cash flow conversion from comparable operating profit	50% to 80%	50% to 80%

¹ Outlook is based on a EUR:USD rate of 1.17 for the remainder of the year.

In the second quarter, based on its preliminary financials, Nokia expects to report net sales of approximately EUR 4.55 billion and comparable operating profit of EUR 300 million. The Q2 comparable operating profit includes a negative impact from its venture funds of EUR 50 million primarily related to currency.

Nokia will release its second quarter and half year 2025 financial results on Thursday 24^th July 2025.

Nokia will conduct a conference call with analysts and investors to discuss its second quarter performance and business outlook on 24 July 2025 at 11:30am EEST / 09:30am BST / 04:30am US EST.

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia
Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

FORWARD-LOOKING STATEMENTS

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.

The MIL Network –

July 23, 2025

MIL-OSI: Inside Information: Nokia lowers 2025 operating profit guidance due to currency

Source: GlobeNewswire (MIL-OSI)

Nokia Corporation
Inside information
22 July 2025 at 19:00 EEST

Inside Information: Nokia lowers 2025 operating profit guidance due to currency

Nokia lowers its comparable operating profit guidance range to EUR 1.6 billion to EUR 2.1 billion from EUR 1.9 billion to EUR 2.4 billion.
Adjustment relates to currency headwinds from the weaker USD and tariffs.
Reports preliminary Q2 financial results of approximately EUR 4.55 billion net sales and EUR 0.3 billion comparable operating profit.

Espoo, Finland – Nokia is today providing an update to its financial guidance for full year 2025. Nokia’s underlying business performed as expected through the first half, however, considering currency and tariff headwinds which are outside its control and have transpired since its Q1 results, the company feels it is prudent at this point to lower its operating profit outlook range. Nokia is lowering its comparable operating profit outlook range to EUR 1.6 billion to EUR 2.1 billion (previously EUR 1.9 billion to EUR 2.4 billion). Nokia’s guidance for free cash flow conversion from comparable operating profit remains 50% to 80%. Nokia’s guidance is now based on a EUR:USD rate of 1.17, while the currency rate used in January was 1.04.

Since Nokia provided guidance in January for the full year 2025, two headwinds outside its control are impacting the 2025 outlook. The largest headwind is currency fluctuations (particularly the weaker USD), an approximately EUR 230 million negative impact (EUR 140 million operationally and EUR 90 million from non-cash venture fund currency revaluations). Also, the current tariff landscape is expected to impact full year operating profit by EUR 50 million to EUR 80 million.

Update to Nokia’s financial outlook for 2025

	Updated	Previous (Issued 30 Jan)
Comparable Operating Profit¹	EUR 1.6 billion to EUR 2.1 billion	EUR 1.9 billion to EUR 2.4 billion
Free cash flow conversion from comparable operating profit	50% to 80%	50% to 80%

¹ Outlook is based on a EUR:USD rate of 1.17 for the remainder of the year.

In the second quarter, based on its preliminary financials, Nokia expects to report net sales of approximately EUR 4.55 billion and comparable operating profit of EUR 300 million. The Q2 comparable operating profit includes a negative impact from its venture funds of EUR 50 million primarily related to currency.

Nokia will release its second quarter and half year 2025 financial results on Thursday 24^th July 2025.

Nokia will conduct a conference call with analysts and investors to discuss its second quarter performance and business outlook on 24 July 2025 at 11:30am EEST / 09:30am BST / 04:30am US EST.

About Nokia

At Nokia, we create technology that helps the world act together.

As a B2B technology innovation leader, we are pioneering networks that sense, think and act by leveraging our work across mobile, fixed and cloud networks. In addition, we create value with intellectual property and long-term research, led by the award-winning Nokia Bell Labs, which is celebrating 100 years of innovation.

With truly open architectures that seamlessly integrate into any ecosystem, our high-performance networks create new opportunities for monetization and scale. Service providers, enterprises and partners worldwide trust Nokia to deliver secure, reliable and sustainable networks today – and work with us to create the digital services and applications of the future.

Inquiries:

Nokia Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Global Head of External Communications

Nokia
Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

FORWARD-LOOKING STATEMENTS

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.

The MIL Network –

July 23, 2025

MIL-OSI United Kingdom: expert reaction to study looking at estimates of brain ageing and the Covid pandemic

Source: United Kingdom – Executive Government & Departments

July 22, 2025

A study published in Nature Communications looks at brain ageing during the Covid-19 pandemic.

Dr Eugene Duff, Advanced Research Fellow in Informatics, Department of Brain Sciences, Imperial College London, said:

“Mohammadi-Nejad and colleagues present a unique analysis of MRI data from the UK Biobank study to identify evidence for the impact of the COVID-19 pandemic period – independent of the infection itself – on brain health and aging. They were able to show that, even in the absence of COVID-19 infection, living through the pandemic was associated with accelerated aging of the brain, and could point to a variety of factors potentially contributing to this acceleration, such as sex and socio-demographic background. With this approach, the authors were able to quantify more extensive brain health associations of the pandemic period than studies focusing purely on effects of the virus itself. However, as an observational study it is not possible to fully exclude that factors unrelated to the pandemic could contribute to the observed acceleration. While the events of the pandemic were exceptional, this work demonstrates the stark effects that the conditions of an individual’s life may have on brain and cognitive health, and the value of careful dissection of the myriad of local and global factors contributing to these conditions.”

Prof Masud Husain, Professor of Neurology & Cognitive Neuroscience, University of Oxford, said:

“While this is a very carefully conducted analysis, we have to be cautious with interpretation.

“The brain age difference between the two groups (as indexed by brain scanning) was on average only 5 months, and difference in cognitive performance between groups was only on the total time taken to complete one of the tests. Is this really going to make a significant difference in everyday life?

“Furthermore, the time between scans was much shorter in the people scanned before and after the pandemic, compared to those who had both scans before the pandemic. We therefore don’t know if brain aging would have recovered if more time elapsed.”

Dr Maxime Taquet, Associate Professor in the Department of Psychiatry, University of Oxford, said:

“This landmark brain imaging study suggests that the COVID-19 pandemic may have accelerated brain ageing in some people. By comparing scans taken more than two years apart, researchers found that the average person’s brain appeared to age an extra 5.5 months for every year lived during the pandemic. It is important to note that the majority of people showed brain ageing at the expected rate. However, a higher-than-usual proportion showed striking increases in brain age of an extra 15 to 20 months per year.

“Among those infected with COVID-19, the increased brain age correlated with lower scores in a test of thinking skills like attention and problem-solving. This might help explain why some people who had COVID-19 have impaired cognition.

“The findings raise important questions about the long-term neurological impact of the pandemic, whether due to infection itself or the broader psychological and social stress it caused. The authors suggest that the observed brain ageing may reflect a biopsychosocial effect combining the impact of COVID-19 infection with the psychological and social stresses of the pandemic. However, it is also possible that the observed association is primarily biological, driven largely by undetected infections. An analysis by the Institute for Health Metrics and Evaluation estimated that over 90% of the UK population may have been infected by the end of 2022, meaning that many participants classified as ‘uninfected’ might have had asymptomatic or undocumented cases. This raises the possibility that viral exposure played a more central role in the study findings than assumed.

“Another possibility is that the findings do not reflect a causal relationship and are due to a form of selection bias. For instance, if individuals whose brains were ageing more slowly happened to be scanned sooner, and therefore before the pandemic, this could have contributed to the observed association despite the study’s efforts to rule out such confounding.

“The study was well-designed and based on unique UK Biobank data with repeated brain scans. The researchers also acknowledge limitations. The sample excludes people with chronic illnesses such as diabetes and depression and the UK Biobank underrepresents the most socioeconomically deprived groups, the very populations in which the association between the pandemic and brain ageing was largest. This means the association in the general population could be even more pronounced.”

‘Accelerated brain ageing during the COVID19 pandemic’ by Ali-Reza Mohammadi-Nejad et al. was published in Nature Communications at 16:00 UK time on Tuesday 22 July 2025.

DOI: 10.1038/s41467-025-61033-4

Declared interests

Dr Eugene Duff: “I have no conflicts of interest.”

Prof Masud Husain: “I don’t have any conflict of interest.”

Dr Maxime Taquet: “I do not have a conflict of interest.”

MIL OSI United Kingdom –

July 23, 2025

MIL-OSI United Kingdom: Modernised aid budget will focus on impact, value for money and transparency

Source: United Kingdom – Executive Government & Departments 3

Press release

Modernised aid budget will focus on impact, value for money and transparency

New aid funding figures published today show how the international aid budget will deliver value for money for the British taxpayer – and maximum impact for the most vulnerable overseas.

New figures released today (Tuesday, 22 July) set out how the government will spend the aid budget in 2025/2026, prioritising areas where Britain can make the biggest difference.
The new approach means the UK will prioritise spending through the most impactful multilateral organisations like the World Bank and Gavi, the vaccine alliance, while working to drive reform of these institutions.
Development Minister Baroness Chapman today confirms UK support for the World Bank’s International Development Association – with the fund expected to benefit 1.9 billion people in next three years.

New aid funding figures published today (Tuesday, 22 July 2025) show how the international aid budget will deliver value for money for the British taxpayer – and maximum impact for the most vulnerable overseas. The cut in the aid budget to 0.3% of Gross National Income from 2027 means every penny must count if the UK is to make progress on its biggest development priorities: to tackle humanitarian, health and climate crises.

Today’s aid figures, published in the FCDO’s annual report and the first to be released since the cut was announced in February, give an indication of the new approach the Development Minister Baroness Chapman will take. They follow a comprehensive line-by-line strategic review of aid conducted by the Minister, which focused on prioritisation, efficiency, protecting planned humanitarian support and live contracts while ensuring responsible exit from programming where necessary.

The pivot will see global organisations with a proven track record of impact, like the World Bank and Gavi, prioritised to deliver better results for the UK taxpayer and the world’s poorest people.

The UK will also continue to play a key humanitarian role supporting those in crisis, including in Gaza, Ukraine and Sudan, and will hold a reserve fund to respond to future crises at pace.

However, underperforming multilateral organisations will face funding cuts in future, and as the UK moves to spend less on aid, bilateral support to some countries is also dropping.

While bilateral support for some countries will drop, the UK will instead increasingly share expertise, like that of our world leading scientists and financial sector. It will focus on tackling the climate crisis, health threats and humanitarian emergencies, creating stability and growth to help deliver the Plan for Change at home. The National Security Strategy published earlier this year said British interests are best served through effective multilateral cooperation.

As part of its growing support for impactful multilateral organisations, the UK today confirmed it will honour a pledge to the International Development Association (IDA) – the World Bank’s fund for the poorest countries – having agreed a new way to make payments that reduces costs to UK taxpayers and provides the same value to the Bank. IDA is expected to benefit 1.9 billion people in the next three years.

Minister for Development Baroness Chapman said:

We are modernising our approach to international development. Every pound must work harder for UK taxpayers and the people we help around the world and these figures show how we are starting to do just that through having a clear focus and priorities.

The UK is moving towards a new relationship with developing countries, becoming partners and investors, rather than acting as a traditional aid donor. We want to work with countries and share our expertise – from world leading science to the City of London – to help them become no longer dependent on aid, and organisations like the World Bank and Gavi are central to how we can work with others to solve some of the biggest challenges of our time: humanitarian disasters, pandemics and the climate crisis.

The UK’s support for the multilateral system will come with a renewed push for its reform to maximise efficiency and impact for people on the ground. It follows UK funding announced for another multilateral organisation Gavi, the vaccine alliance, last month, which will help save up to 8 million lives.

The World Bank support was originally announced last November, but all UK aid funding was subsequently reviewed following the 0.3% announcement in February this year. Every £1 the UK invests in the World Bank’s IDA fund, enables £4 of finance for developing countries. The IDA fund is expected to benefit 1.9 billion people in next three years.

The World Bank President Ajay Banga today welcomed the UK’s funding commitment. He said:

We are grateful to the United Kingdom for honouring its pledge to IDA. In a time of tight budgets and growing global risks, this is not just generosity – it’s strategy. Every taxpayer pound is multiplied many times over through the Bank’s ability to mobilise capital and partner with the private sector.

These resources help create jobs in developing countries – jobs that build self-reliant economies, reduce the drivers of instability, crime, and migration, and grow the middle class. In turn, they create future consumers of UK products and investment opportunities that strengthen the UK economy over the long term.

The UK’s new approach aligns with recent calls from Global South leaders for a move away from traditional aid to a focus on investment and partnerships, including from the African Development Bank, and the former Kenyan President.

Alongside the figures released today, the government has also published an Equality Impact Assessment which found plans to reduce the aid budget will “protect against disproportionate impacts on equalities” overall.

The government will publish indicative multi-year allocations for 2026-2029 in the autumn, providing an even clearer picture of the UK’s future direction in international development.

Background:

The full ODA spending allocations were published in the FCDO’s Annual Report and Accounts on GOV.UK on Tuesday, July 22, 2025. See here for further details: FCDO Annual Report and Accounts 2024 to 2025- GOV.UK
The Equality Impact Assessment was published alongside the Annual Report and Accounts: FCDO Official Development Assistance programme allocations 2025 to 2026: equality impact assessment – GOV.UK
The UK announced last November it would pledge £1.98 billion to the World Bank’s IDA21 – from July 2025 to June 2028. All UK aid funding was subsequently reviewed following the decision to reduce the aid budget in February. We have now agreed to accelerate our payments to the Bank, reducing their need to borrow from markets. This means that while the UK will provide the Bank with around 10% less cash in total, the Bank will regard our contribution as equivalent to our original pledge. A number of other donors accelerate their payments to provide early support to the Bank and to increase the value of their funding in the same way.
The Foreign Secretary announced new humanitarian support for Gaza on Monday, July 21, 20225. See here for further details: UK pledges lifesaving aid for Gaza – GOV.UK

Media enquiries

Email newsdesk@fcdo.gov.uk

Telephone 020 7008 3100

Email the FCDO Newsdesk (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

Published 22 July 2025

MIL OSI United Kingdom –

July 23, 2025

MIL-OSI Submissions: Dog thefts: what really happened during the COVID pandemic

Source: The Conversation – UK – By Daniel Allen, Animal Geographer, Keele University

smrm1977/Shutterstock

Dog theft can be a devastating crime. During the COVID pandemic, newspapers suggested there was an epidemic of “dognapping” in the UK. If you have a dog, the reports may have alarmed you at a time when there were already many reasons to feel afraid.

There are mixed views on whether or not lockdown triggered an increase in dog ownership. Animal welfare charity Battersea attributed a 53% increase in dog adoption to lockdown, and online pet adoption service Pets4Homes said in their 2022 report that demand for puppies rose 104% at the peak of lockdown in May 2020.

But animal charity PDSA said its survey data pointed to a gradual increase in dog ownership since 2011 rather than a dramatic surge during lockdown. However, we do know lockdown saw inflated prices for dogs, with some fashionable breeds going for £9,000.

In terms of criminal activity, social distancing restrictions seemed to lead to a decline in some forms of crime, including shoplifting and burglary. But many media outlets reported the number of dog thefts had increased up to 250% during the pandemic.

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We wanted to explore if the data supported claims of a dognapping epidemic and whether patterns in dog theft could suggest ways to help reduce it. Our recent study found new insights into dog theft patterns and showed the situation was more complicated than it seemed at first glance.

Under the Theft Act 1968, dog theft is not a specific offence. It comes under other theft offences, such as burglary or theft from a person.

This means police records on dog theft were not included in crime statistics. The only way to access such information is through Freedom of Information (FOI) requests to individual police forces. There are 45 territorial and three special police forces in the UK, and each has its own reporting and recording practices.

Although police FOI data for dog theft must be approached with caution, it is useful. Previous studies exploring police FOI data found an upward trend in recorded dog thefts in England and Wales: rising nearly 20% from 2015 (1,545) to 2018 (1,849) for 41 police forces combined; and up 3.5% year on year from 2019 (1,452) to 2020 (1,504) for 33 police forces.

DogLost, a UK online community for reuniting lost and stolen dogs with their owners, reported a 170% increase in stolen dogs (with Crime Reference Numbers) registered on their website in 2020 (465), compared to 2019 (172). This figure was widely quoted as a national increase “since lockdown started” by the media.

The 250% increase figure first quoted in December 2020 was actually a comparison of two seven-month periods (January-July 2019 and 2020) for only one police force.

Patterns and trends

Our study found the data for the period covering the COVID pandemic is also incomplete. Data was provided by 32 forces (71%) for 2020, by 27 forces (60%) for 2021, and 23 forces (51%) for 2022.

Patterns and trends do, however, emerge. Between 2020 and 2022, the available data shows a 3.7% rise in dog thefts in the UK, from 1,573 to 1,631. When making adjustments for the number of police forces providing data (which decreased over the period), the estimated national figures suggest there may have been more significant rise of up to 44.2%.

While we cannot assume that the forces who supplied data are representative of all 45 regional forces, if this were the case, it would equate to 2,212 recorded dog thefts in 2020, 2,645 in 2021, and 3,191 in 2022.

There was a lot of variation between different areas. For example, Cambridgeshire, Gwent and Northumbria police forces experienced increases of 36%, 49% and 80% respectively in the number of recorded dog thefts between 2020 and 2021.

Monthly analysis of data from regional police forces and DogLost, show that the number of reports of stolen dogs started to go up when the UK entered its first national lockdown and again during part of the third lockdown. But the average number of police-recorded dog thefts was actually slightly higher outside of lockdown periods than during them between 2020 and 2022.

However, in contrast with police trends, DogLost data shows a 65.2% drop in dogs reported stolen on DogLost’s website in 2022 compared to 2020. Lower DogLost numbers may reflect limited visibility or presence of their networks, the use of alternative lost and stolen dog services, or reluctance to share personal details online due to scams targeting dog theft victims.

Dogs are often stolen from inside their own homes.
GoodFocused/Shutterstock

Our study found that, overall, there probably was an increase in dog theft from
2020 to 2022, following already identified increases in the preceding years. This rise was probably driven by a combination of opportunity (more dogs, higher value) and situational factors (accessibility, dogs unattended in gardens while owners were inside).

Our evidence does not support the notion of a widespread epidemic as portrayed by the media. However, increased media interest probably amplified awareness of the issue, and influenced the creation of the Pet Theft Taskforce, a UK government initiative set up in May 2021 to investigate and tackle dog thefts.

New research appears to confirm the idea that dog abduction has significant welfare effects on both dogs and their owners. We also know that few dog thefts are successfully resolved, with under a quarter of stolen dogs likely to be returned and around 1%-5% of reported dog thefts result in someone being charged.

However, there is potential good news. Our ongoing research suggests the number of police-recorded dog thefts decreased slightly in 2023, and again in 2024. This is supported by research from pet insurer Direct Line, which has estimated a 21% decrease in the number of stolen dogs from 2,290 in 2023 to 1,808 in 2024 in the UK.

Daniel Allen is founder of Pet Theft Reform and patron of the Stolen and Missing Pets Alliance (Sampa).

Melanie Flynn is a member of the Research Advisory Committee of the Vegan Society (UK).

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

– ref. Dog thefts: what really happened during the COVID pandemic – https://theconversation.com/dog-thefts-what-really-happened-during-the-covid-pandemic-252061

MIL OSI –

July 23, 2025

MIL-OSI Security: Stanislaus County Mother-Son Duo Sentenced to Prison for Inmate Unemployment Insurance Claims Conspiracy

Source: US FBI

Jaime Ornelas, 27, formerly of Modesto, was sentenced today by U.S. District Judge Dena Coggins to three years and one month in prison and ordered to pay $150,000 in restitution for conspiracy to commit mail fraud arising from fraudulently submitted unemployment insurance benefits, Acting U.S. Attorney Kimberly A. Sanchez announced.

On June 6, 2025, Jaime Ornelas’s mother and co-defendant Misty Ornelas, 48, of Turlock, was sentenced to 18 months in prison.

According to court documents, beginning in June 2020, Jaime Ornelas and Misty Ornelas operated a scheme to submit fraudulent unemployment insurance benefit claims to the California Employment Development Department (EDD). Jaime Ornelas, who was then-incarcerated at the High Desert State Prison in Lassen County, provided Misty Ornelas personally identifiable information of fellow inmates. Misty Ornelas then used that information to submit fraudulent unemployment insurance benefit applications to EDD. The submitted applications misrepresented the eligibility of the inmates, including that they had last worked within the prior few months and had become unemployed because of the COVID-19 pandemic. The fraudulent claims were worth more than $150,000.

This case was the product of an investigation by Federal Bureau of Investigation and EDD. Assistant U.S. Attorneys Chan Hee Chu and Denise N. Yasinow prosecuted the case.

This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the United States Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious pandemic relief fraud. The strike force uses prosecutor-led, and data analyst-driven, teams to identify and bring to justice those who stole pandemic relief money.

MIL Security OSI –

July 23, 2025

MIL-OSI Security: Stanislaus County Mother-Son Duo Sentenced to Prison for Inmate Unemployment Insurance Claims Conspiracy

Source: US FBI

Jaime Ornelas, 27, formerly of Modesto, was sentenced today by U.S. District Judge Dena Coggins to three years and one month in prison and ordered to pay $150,000 in restitution for conspiracy to commit mail fraud arising from fraudulently submitted unemployment insurance benefits, Acting U.S. Attorney Kimberly A. Sanchez announced.

On June 6, 2025, Jaime Ornelas’s mother and co-defendant Misty Ornelas, 48, of Turlock, was sentenced to 18 months in prison.

According to court documents, beginning in June 2020, Jaime Ornelas and Misty Ornelas operated a scheme to submit fraudulent unemployment insurance benefit claims to the California Employment Development Department (EDD). Jaime Ornelas, who was then-incarcerated at the High Desert State Prison in Lassen County, provided Misty Ornelas personally identifiable information of fellow inmates. Misty Ornelas then used that information to submit fraudulent unemployment insurance benefit applications to EDD. The submitted applications misrepresented the eligibility of the inmates, including that they had last worked within the prior few months and had become unemployed because of the COVID-19 pandemic. The fraudulent claims were worth more than $150,000.

This case was the product of an investigation by Federal Bureau of Investigation and EDD. Assistant U.S. Attorneys Chan Hee Chu and Denise N. Yasinow prosecuted the case.

This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the United States Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious pandemic relief fraud. The strike force uses prosecutor-led, and data analyst-driven, teams to identify and bring to justice those who stole pandemic relief money.

MIL Security OSI –

July 23, 2025

MIL-OSI Economics: 2025 External Sector Report: Global Imbalances in a Shifting World

Source: International Monetary Fund

Chapter 1: External Positions and Policies

Current accounts in major economies diverged significantly in 2024, widening global current account balances by 0.6 percentage points of world GDP. This widening, driven by domestic macro imbalances, represents a sizable reversal from the post-pandemic narrowing. Staff assessment suggests that excess current account balances account for about two-thirds of the widening in global current account balances. The assessed increase in excess current account balances is the largest in a decade, with major economies—China, the United States and the euro area—driving the increase. Such rapid and globally sizable increase in excess current account balances in major economies can generate significant negative cross-border spillovers. In 2025 and over the medium term, a delay in macroeconomic adjustments to correct the post-pandemic domestic macro imbalances could result in continued current account divergence in major economies, while addressing domestic imbalances could bring about a convergence of major current account balances.

MIL OSI Economics –

July 23, 2025

MIL-OSI: Draganfly Secures Strategic Military Order for Commander 3XL UAV Systems

Source: GlobeNewswire (MIL-OSI)

Tampa Bay, Florida, July 22, 2025 (GLOBE NEWSWIRE) — Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8A) (“Draganfly” or the “Company”), an award-winning developer of drone solutions and systems developer, today announced the sale of Commander 3XL Unmanned Aerial Vehicle (UAV) systems to a globally recognized defense contractor specializing in persistent surveillance technologies for military operations.

A trusted partner to U.S. and allied defense forces for decades, the client is one of the world’s leading providers of persistent surveillance platforms. Its systems are deployed across key Department of Defense (DoD) and allied installations, delivering reliable, persistent intelligence, surveillance, and reconnaissance (ISR) capabilities.

The Commander 3XL’s modular payload architecture, extended endurance, and AI-enabled mission control make it an ideal asset for military-grade surveillance programs. The systems will support perimeter security, early warning, and real-time situational awareness, operating seamlessly alongside and integrated with persistent platforms and ground-based command centers.

“This sale marks a significant milestone for Draganfly as we expand our presence in the defense sector,” said Cameron Chell, CEO of Draganfly. “We are honored that the Commander 3XL has been chosen for integration into one of the world’s most advanced and enduring persistent surveillance platforms. This integration enhances capabilities for military and border surveillance systems, providing greater reach and effectiveness.”

This purchase further underscores the Commander 3XL’s versatility in both static and dynamic ISR environments, enabling defense clients to adapt swiftly to evolving threat landscapes.

About Draganfly

Draganfly Inc. (NASDAQ: DPRO; CSE: DPRO; FSE: 3U8A) is a leader in cutting-edge drone solutions and software that are transforming industries and serving stakeholders globally. Recognized for innovation and excellence for over 25 years, Draganfly delivers award-winning technology to the public safety, agriculture, industrial inspection, security, mapping, and surveying markets. The Company is driven by passion, ingenuity, and a mission to provide efficient solutions and first-class services to customers worldwide, saving time, money, and lives.

NASDAQ (DPRO)
CSE (DPRO)
FSE (3U8)

Media Contact:
Erika Racicot
Email: media@draganfly.com

Company Contact
Cameron Chell
Chief Executive Officer
(306) 955-9907
info@draganfly.com

This release contains certain “forward looking statements” and certain “forward-looking ‎‎‎‎information” as ‎‎‎‎defined under applicable securities laws. Forward-looking statements ‎‎‎‎and information can ‎‎‎‎generally be identified by the use of forward-looking terminology such as ‎‎‎‎‎“may”, “will”, “expect”, “intend”, ‎‎‎‎‎“estimate”, “anticipate”, “believe”, “continue”, “plans” or similar ‎‎‎‎terminology. Forward-looking statements ‎‎‎‎and information are based on forecasts of future ‎‎‎‎results, estimates of amounts not yet determinable and ‎‎‎‎assumptions that, while believed by ‎‎‎‎management to be reasonable, are inherently subject to significant ‎‎‎‎business, economic and ‎‎‎‎competitive uncertainties and contingencies. Forward-looking statements ‎‎‎‎include, but are not ‎‎‎‎limited to, statements with respect to the Commander 3XL’s modular payload architecture, extended endurance, and AI-enabled mission control make it an ideal asset for military-grade surveillance programs as well as that the systems will support perimeter security, early warning, and real-time situational awareness, operating seamlessly alongside persistent platforms and ground-based command centers. Forward-‎‎‎‎looking statements and information are subject to various ‎known ‎‎and unknown risks and ‎‎‎‎‎uncertainties, many of which are beyond the ability of the Company to ‎control or ‎‎predict, that ‎‎‎‎may cause ‎the Company’s actual results, performance or achievements to be ‎materially ‎‎different ‎‎‎‎from those ‎expressed or implied thereby, and are developed based on assumptions ‎about ‎‎such ‎‎‎‎risks, uncertainties ‎and other factors set out here in, including but not limited to: the potential ‎‎‎‎‎‎‎impact of epidemics, ‎pandemics or other public health crises, including the ‎COVID-19 pandemic, on the Company’s business, operations and financial ‎‎‎‎condition; the ‎‎‎successful integration of ‎technology; the inherent risks involved in the general ‎‎‎‎securities markets; ‎‎‎uncertainties relating to the ‎availability and costs of financing needed in the ‎‎‎‎future; the inherent ‎‎‎uncertainty of cost estimates; the ‎potential for unexpected costs and ‎‎‎‎expenses, currency ‎‎‎fluctuations; regulatory restrictions; and liability, ‎competition, loss of key ‎‎‎‎employees and other related risks ‎‎‎and uncertainties disclosed under the ‎heading “Risk Factors“ ‎‎‎‎in the Company’s most recent filings filed ‎‎‎with securities regulators in Canada on ‎the SEDAR ‎‎‎‎website at www.sedar.com and with the United States Securities and Exchange Commission (the “SEC”) on EDGAR through the SEC’s website at www.sec.gov. The Company undertakes ‎‎‎no obligation to update forward-‎looking ‎‎‎‎information except as required by applicable law. Such forward-‎‎‎looking information represents ‎‎‎‎‎managements’ best judgment based on information currently available. ‎‎‎No forward-looking ‎‎‎‎statement ‎can be guaranteed and actual future results may vary materially. ‎‎‎Accordingly, readers ‎‎‎‎are advised not to ‎place undue reliance on forward-looking statements or ‎‎‎information.

The MIL Network –

July 22, 2025

MIL-OSI: Capital City Bank Group, Inc. Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., July 22, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $15.0 million, or $0.88 per diluted share, for the second quarter of 2025 compared to $16.9 million, or $0.99 per diluted share, for the first quarter of 2025, and $14.2 million, or $0.83 per diluted share, for the second quarter of 2024.

QUARTER HIGHLIGHTS (2^ndQuarter 2025 versus 1^stQuarter 2025)

Income Statement

Tax-equivalent net interest income totaled $43.2 million compared to $41.6 million for the first quarter of 2025
- Net interest margin increased eight basis points to 4.30% (earning asset yield increased by six basis points and cost of funds decreased two basis points to 82 basis points)
Provision for credit losses decreased by $0.1 million to $0.6 million for the second quarter – net loan charge-offs were comparable to the first quarter of 2025 at nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.13% at June 30, 2025
Noninterest income increased by $0.1 million, or 0.5%, reflecting higher deposit and bankcard fees as well as mortgage fees partially offset by lower wealth management fees
Noninterest expense increased by $3.8 million, or 9.9%, primarily due to a $3.9 million net gain from the sale of our operations center building (reflected in other expense) in the first quarter of 2025

Balance Sheet

Loan balances decreased by $13.3 million, or 0.5% (average), and decreased by $29.3 million, or 1.1% (end of period)
Deposit balances increased by $15.2 million, or 0.4% (average), and decreased by $79.0 million, or 2.1% (end of period) due to the seasonal decrease in our public fund balances
- Noninterest bearing deposits averaged 36.5% of total deposits for the second quarter and 36.2% for the year
Tangible book value per diluted share (non-GAAP financial measure) increased by $0.78, or 3.2%

“Capital City delivered another strong quarter, highlighted by sustained revenue growth and continued credit strength,” said William G. Smith, Jr, Capital City Bank Group Chairman and CEO. “Our second quarter results reflect a 3.9% increase in net interest income and an 8 basis point expansion in the net interest margin to 4.30%. Tangible book value per share increased by 3.2%, and we further strengthened our capital position, with our tangible capital ratio increasing to 10.1%. We remain focused on executing strategies that drive consistent, profitable growth, supported by a fortress balance sheet that provides resilience and strategic flexibility.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the second quarter of 2025 totaled $43.2 million compared to $41.6 million for the first quarter of 2025 and $39.3 million for the second quarter of 2024. Compared to the first quarter of 2025, the increase was driven by a $0.9 million increase in investment securities income and a $0.4 million increase in overnight funds income. One additional calendar day in the second quarter of 2025 contributed to the increase. Compared to the second quarter of 2024, the increase was primarily due to a $2.7 million increase in investment securities income and a $1.2 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income for both prior period comparisons. Further, the decrease in deposit interest expense from the prior year period reflected the gradual decrease in our deposit rates, as short term rates began declining in the second half of 2024.

For the first six months of 2025, tax-equivalent net interest income totaled $84.8 million compared to $77.8 million for the same period of 2024 with the increase primarily attributable to a $4.2 million increase in investment securities income, a $1.9 million increase in overnight funds income, and a $1.4 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income. Higher average deposit balances contributed to the increase in overnight funds income. The decrease in deposit interest expense reflected the aforementioned decrease in our deposit rates.

Our net interest margin for the second quarter of 2025 was 4.30%, an increase of eight basis points over the first quarter of 2025 and an increase of 28 basis points over the second quarter of 2024. For the month of June 2025, our net interest margin was 4.36%. For the first six months of 2025, our net interest margin increased by 25 basis points to 4.26% compared to the same period of 2024. The increase in net interest margin over all prior periods reflected a higher yield in the investment portfolio driven by new purchases at higher yields. Lower deposit cost also contributed to the improvement over both prior year periods. For the second quarter of 2025, our cost of funds was 82 basis points, a decrease of two basis points from the first quarter of 2025 and a 15-basis point decrease from the second quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82 basis points, and 95 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.6 million for the second quarter of 2025 compared to $0.8 million for the first quarter of 2025 and $1.2 million for the second quarter of 2024. For the first six months of 2025, we recorded a provision expense for credit losses of $1.4 million compared to $2.1 million for the first six months of 2024. Activity within the components of the provision (loans held for investment (“HFI”) and unfunded loan commitments) for each reported period is provided in the table on page 14. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the second quarter of 2025 totaled $20.0 million compared to $19.9 million for the first quarter of 2025 and $19.6 million for the second quarter of 2024. The $0.1 million, or 0.5%, increase over the first quarter of 2025 was primarily due to a $0.4 million increase in mortgage banking revenues and a $0.3 million increase in deposit fees, partially offset by a $0.6 million decrease in wealth management fees. The increase in mortgage revenues was driven by an increase in production volume. Fee adjustments made late in the second quarter of 2025 led to the increase in deposit fees. The decrease in wealth management fees was attributable to a decrease in insurance commission revenue. Compared to the second quarter of 2024, the $0.4 million, or 2.1%, increase was primarily due to a $0.8 million increase in wealth management fees, partially offset by a $0.2 million decrease in mortgage banking revenues and a $0.1 million decrease in other income. The increase in wealth management fees reflected a $0.5 million increase in trust fees and a $0.4 million increase in retail brokerage fees, partially offset by a $0.1 million decrease in insurance commission revenue. A combination of new business, higher account valuations, and fee increases implemented in early 2025 drove the improvement in trust and retail brokerage fees.

For the first six months of 2025, noninterest income totaled $39.9 million compared to $37.7 million for the same period of 2024, primarily attributable to a $1.8 million increase in wealth management fees and a $0.7 million increase in mortgage banking revenues that was partially offset by a $0.2 million decrease in deposit fees. The increase in wealth management fees reflected increases in retail brokerage fees of $1.0 million, trust fees of $0.7 million, and insurance commission revenue of $0.1 million. The increases in retail brokerage and trust fees were attributable to a combination of new business, higher account valuations, and fee increases implemented in early 2025. The increase in mortgage banking revenues was due to a higher gain on sale margin.

Noninterest expense for the second quarter of 2025 totaled $42.5 million compared to $38.7 million for the first quarter of 2025 and $40.4 million for the second quarter of 2024. The $3.8 million, or 9.9%, increase over the first quarter of 2025, reflected a $3.3 million increase in other expense, a $0.3 million increase in occupancy expense, and a $0.2 million increase in compensation expense. The increase in other expense was driven by a $4.5 million increase in other real estate expense which reflected lower gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million decrease in charitable contribution expense and a $0.6 million decrease in miscellaneous expense. The slight increase in occupancy expense was due to higher software maintenance agreement expense and maintenance/repairs for buildings and furniture/fixtures. The slight increase in compensation expense reflected a $0.1 million increase in salary expense and a $0.1 million increase in associate benefit expense. Compared to the second quarter of 2024, the $2.1 million, or 5.2%, increase was primarily due to a $2.1 million increase in compensation expense which reflected a $1.3 million increase in salary expense and a $0.8 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $0.9 million and base salaries of $0.4 million (merit based). The increase in associate benefit expense was attributable to a $0.6 million increase in associate insurance expense and a $0.2 million increase in stock compensation expense.

For the first six months of 2025, noninterest expense totaled $81.2 million compared to $80.6 million for the same period of 2024 with the $0.6 million, or 0.8%, increase due to a $3.9 million increase in compensation expense that was partially offset by a $3.2 million decrease in other expense and a $0.1 million decrease in occupancy expense. The increase in compensation was due to a $2.5 million increase in salary expense and a $1.4 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $1.2 million, base salaries of $0.9 million (merit based), and commissions of $0.7 million (retail brokerage and mortgage). The increase in associate benefit expense was attributable to a higher cost for associate insurance. The decrease in other expense was primarily due to a $4.5 million decrease in other real estate expense due to lower gains from the sale of banking facilities, and a $1.0 million decrease in miscellaneous expense (non-service component of pension expense), partially offset by increases in processing expense of $1.1 million (outsource of core processing system), charitable contribution expense of $0.7 million, and professional fees of $0.5 million.

Income Taxes

We realized income tax expense of $5.0 million (effective rate of 24.9%) for the second quarter of 2025 compared to $5.1 million (effective rate of 23.3%) for the first quarter of 2025 and $3.2 million (effective rate of 18.5%) for the second quarter of 2024. For the first six months of 2025, we realized income tax expense of $10.1 million (effective rate of 24.1%) compared to $6.7 million (effective rate of 20.6%) for the same period of 2024. A lower level of tax benefit accrued from a solar tax credit equity fund drove the increase in our effective tax rate for all prior period comparisons. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $4.032 billion for the second quarter of 2025, an increase of $38.1 million, or 1.0%, over the first quarter of 2025, and an increase of $110.1 million, or 2.8%, over the fourth quarter of 2024. The increase over both prior periods was driven by higher average deposit balances (see below – Deposits). Compared to the first quarter of 2025, the change in the earning asset mix reflected a $27.8 million increase in overnight funds and a $25.7 million increase in investment securities that was partially offset by a $13.3 million decrease in loans HFI and a $2.1 million decrease in loans held for sale (“HFS”). Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $92.8 million increase in investment securities and a $50.5 million increase in overnight funds sold partially offset by a $24.8 million decrease in loans HFI and a $8.4 million decrease in loans HFS.

Average loans HFI decreased by $13.3 million, or 0.5%, from the first quarter of 2025 and decreased by $24.8 million, or 0.9%, from the fourth quarter of 2024. Compared to the first quarter of 2025, the decrease was due to decreases in construction loans of $24.6 million, consumer loans (primarily indirect auto) of $1.9 million, and commercial loans of $3.4 million, partially offset by increases to residential real estate loans of $10.2 million, commercial real estate loans of $2.1 million, and home equity loans of $4.1 million. Compared to the fourth quarter of 2024, the decline was primarily attributable to decreases in construction loans of $33.2 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $4.0 million, partially offset by increases in home equity loans of $10.8 million, residential real estate loans of $9.9 million, and commercial real estate loans of $1.9 million.

Loans HFI at June 30, 2025 decreased by $29.3 million, or 1.1%, from March 31, 2025 and decreased by $20.1 million, or 0.8%, from December 31, 2024. Compared to the first quarter of 2025, the decline was primarily due to decreases in construction loans of $18.2 million, consumer loans (primarily indirect auto) of $8.7 million, commercial loans of $4.4 million, and commercial real estate loans of $4.4 million, partially offset by increases in residential real estate loans of $5.8 million and home equity loans of $2.2 million. Compared to December 31, 2024, the decrease was primarily attributable to decreases in construction loans of $45.9 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $2.0 million, partially offset by increases in commercial real estate loans of $23.4 million, residential real estate loans of $17.9 million, and home equity loans of $8.1 million.

Allowance for Credit Losses

At June 30, 2025, the allowance for credit losses for loans HFI totaled $29.9 million compared to $29.7 million at March 31, 2025 and $29.3 million at December 31, 2024. Activity within the allowance is provided on Page 14. The slight increase in the allowance over March 31, 2025 and December 31, 2024 was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. Net loan charge-offs for both the second quarter of 2025 and the first quarter of 2025 were comparable at nine basis points of average loans. At June 30, 2025, the allowance represented 1.13% of loans HFI compared to 1.12% at March 31, 2025, and 1.10% at December 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.6 million at June 30, 2025 compared to $4.4 million at March 31, 2025 and $6.7 million at December 31, 2024. At June 30, 2025, nonperforming assets as a percentage of total assets was 0.15%, compared to 0.10% at March 31, 2025 and 0.15% at December 31, 2024. Nonaccrual loans totaled $6.4 million at June 30, 2025, a $2.2 million increase over March 31, 2025 and a $0.1 million increase over December 31, 2024 with the increase over the first quarter of 2025 primarily attributable to two home equity loans totaling $1.8 million. Classified loans totaled $28.6 million at June 30, 2025, a $9.4 million increase over March 31, 2025 and a $8.7 million increase over December 31, 2024. The increase over the prior periods was primarily due to the downgrade of four residential real estate loans totaling $4.2 million and two commercial real estate loans totaling $4.3 million.

Deposits

Average total deposits were $3.681 billion for the second quarter of 2025, an increase of $15.2 million, or 0.4%, over the first quarter of 2025 and an increase of $80.3 million, or 2.2%, over the fourth quarter of 2024. Compared to the first quarter of 2025, the increase was attributable to higher core deposit balances (primarily noninterest bearing checking and money market), partially offset by a decline in public funds balances (primarily NOW accounts) due to the seasonal reduction in those balances. The increase over the fourth quarter of 2024 reflected strong growth in core deposit balances and a seasonal increase in public funds balances (primarily NOW) which are received/deposited by those clients starting in December and peak on average in the first quarter.

At June 30, 2025, total deposits were $3.705 billion, a decrease of $79.0 million, or 2.1%, from March 31, 2025, and an increase of $32.9 million, or 0.9%, over December 31, 2024. The decrease from March 31, 2025 was primarily due to a seasonal decline in public funds balances, (primarily money market and noninterest bearing). The increase over December 31, 2024 reflected higher core deposit balances, primarily noninterest bearing accounts. Public funds totaled $596.6 million at June 30, 2025, $648.0 million at March 31, 2025, and $660.9 million at December 31, 2024.

Liquidity

We maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $348.8 million in the second quarter of 2025 compared to $320.9 million in the first quarter of 2025 and $298.3 million in the fourth quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits and lower average loans.

At June 30, 2025, we had the ability to generate approximately $1.603 billion (excludes overnight funds position of $395 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source, as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At June 30, 2025, the weighted-average maturity and duration of our portfolio were 2.66 years and 2.14 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $13.4 million.

Capital

Shareowners’ equity was $526.4 million at June 30, 2025 compared to $512.6 million at March 31, 2025 and $495.3 million at December 31, 2024. For the first six months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $31.9 million, a net $5.5 million decrease in the accumulated other comprehensive loss, the issuance of common stock of $2.8 million, and stock compensation accretion of $0.9 million. The net favorable change in accumulated other comprehensive loss reflected a $6.4 million decrease in the investment securities loss that was partially offset by a $0.9 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by common stock dividends of $8.2 million ($0.48 per share) and net adjustments totaling $1.8 million related to transactions under our stock compensation plans.

At June 30, 2025, our total risk-based capital ratio was 19.60% compared to 19.20% at March 31, 2025 and 18.64% at December 31, 2024. Our common equity tier 1 capital ratio was 16.81%, 16.08%, and 15.54%, respectively, on these dates. Our leverage ratio was 11.14%, 11.17%, and 11.05%, respectively, on these dates. At June 30, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 10.09% at June 30, 2025 compared to 9.61% and 9.51% at March 31, 2025 and December 31, 2024, respectively. If the unrealized loss for held-to-maturity securities of $9.9 million (after-tax) was recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.86%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.4 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services, and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit https://www.ccbg.com/.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC’s internet site (https://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402.8450

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because they allow investors to more easily compare our capital adequacy to other companies in the industry. 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.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024	Jun 30, 2024
Shareowners’ Equity (GAAP)		$	526,423	$	512,575	$	495,317	476,499	$	460,999
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773	92,813		92,853
Tangible Shareowners’ Equity (non-GAAP)	A		433,730		419,842		402,544	383,686		368,146
Total Assets (GAAP)			4,391,753		4,461,233		4,324,932	4,225,316		4,225,695
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773	92,813		92,853
Tangible Assets (non-GAAP)	B	$	4,299,060	$	4,368,500	$	4,232,159	4,132,503	$	4,132,842
Tangible Common Equity Ratio (non-GAAP)	A/B		10.09%		9.61%		9.51%	9.28%		8.91%
Actual Diluted Shares Outstanding (GAAP)	C		17,097,986		17,072,330		17,018,122	16,980,686		16,970,228
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	25.37	$	24.59	$	23.65	22.60	$	21.69

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
*Unaudited*

		Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
EARNINGS
Net Income Attributable to Common Shareowners	$	15,044	$	16,858	$	14,150	$	31,902	$	26,707
Diluted Net Income Per Share	$	0.88	$	0.99	$	0.83	$	1.87	$	1.57
PERFORMANCE
Return on Average Assets (annualized)		1.38	%	1.58	%	1.33	%	1.48	%	1.27	%
Return on Average Equity (annualized)		11.44		13.32		12.23		12.36		11.66
Net Interest Margin		4.30		4.22		4.02		4.26		4.01
Noninterest Income as % of Operating Revenue		31.67		32.39		33.30		32.03		32.69
Efficiency Ratio		67.26	%	62.93	%	68.61	%	65.13	%	69.81	%
CAPITAL ADEQUACY
Tier 1 Capital		18.38	%	18.01	%	16.31	%	18.38	%	16.31	%
Total Capital		19.60		19.20		17.50		19.60		17.50
Leverage		11.14		11.17		10.51		11.14		10.51
Common Equity Tier 1		16.81		16.08		14.44		16.81		14.44
Tangible Common Equity⁽¹⁾		10.09		9.61		8.91		10.09		8.91
Equity to Assets		11.99	%	11.49	%	10.91	%	11.99	%	10.91	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		463.01	%	692.10	%	529.79	%	463.01	%	529.79	%
Allowance as a % of Loans HFI		1.13		1.12		1.09		1.13		1.09
Net Charge-Offs as % of Average Loans HFI		0.09		0.09		0.18		0.09		0.20
Nonperforming Assets as % of Loans HFI and OREO		0.25		0.17		0.23		0.25		0.23
Nonperforming Assets as % of Total Assets		0.15	%	0.10	%	0.15	%	0.15	%	0.15	%
STOCK PERFORMANCE
High	$	39.82	$	38.27	$	28.58	$	39.82	$	31.34
Low		32.38		33.00		25.45		32.38		25.45
Close	$	39.35	$	35.96	$	28.44	$	39.35	$	28.44
Average Daily Trading Volume		27,397		24,486		29,861		25,988		30,433

⁽¹⁾Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
*Unaudited*

	2025							2024
(Dollars in thousands)	Second Quarter				First Quarter			Fourth Quarter			Third Quarter			Second Quarter
ASSETS
Cash and Due From Banks	$	78,485		$	78,521		$	70,543		$	83,431		$	75,304
Funds Sold and Interest Bearing Deposits		394,917			446,042			321,311			261,779			272,675
Total Cash and Cash Equivalents		473,402			524,563			391,854			345,210			347,979

Investment Securities Available for Sale		533,457			461,224			403,345			336,187			310,941
Investment Securities Held to Maturity		462,599			517,176			567,155			561,480			582,984
Other Equity Securities		3,242			2,315			2,399			6,976			2,537
Total Investment Securities		999,298			980,715			972,899			904,643			896,462

Loans Held for Sale (“HFS”):		19,181			21,441			28,672			31,251			24,022

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		180,008			184,393			189,208			194,625			204,990
Real Estate – Construction		174,115			192,282			219,994			218,899			200,754
Real Estate – Commercial		802,504			806,942			779,095			819,955			823,122
Real Estate – Residential		1,046,368			1,040,594			1,028,498			1,023,485			1,012,541
Real Estate – Home Equity		228,201			225,987			220,064			210,988			211,126
Consumer		197,483			206,191			199,479			213,305			234,212
Other Loans		1,552			3,227			14,006			461			2,286
Overdrafts		1,259			1,154			1,206			1,378			1,192
Total Loans Held for Investment		2,631,490			2,660,770			2,651,550			2,683,096			2,690,223
Allowance for Credit Losses		(29,862	)		(29,734	)		(29,251	)		(29,836	)		(29,219	)
Loans Held for Investment, Net		2,601,628			2,631,036			2,622,299			2,653,260			2,661,004

Premises and Equipment, Net		79,906			80,043			81,952			81,876			81,414
Goodwill and Other Intangibles		92,693			92,733			92,773			92,813			92,853
Other Real Estate Owned		132			132			367			650			650
Other Assets		125,513			130,570			134,116			115,613			121,311
Total Other Assets		298,244			303,478			309,208			290,952			296,228
Total Assets	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,332,080		$	1,363,739		$	1,306,254		$	1,330,715		$	1,343,606
NOW Accounts		1,284,137			1,292,654			1,285,281			1,174,585			1,177,180
Money Market Accounts		408,666			445,999			404,396			401,272			413,594
Savings Accounts		504,331			511,265			506,766			507,604			514,560
Certificates of Deposit		175,639			170,233			169,280			164,901			159,624
Total Deposits		3,704,853			3,783,890			3,671,977			3,579,077			3,608,564

Repurchase Agreements		21,800			22,799			26,240			29,339			22,463
Other Short-Term Borrowings		12,741			14,401			2,064			7,929			3,307
Subordinated Notes Payable		42,582			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		680			794			794			794			1,009
Other Liabilities		82,674			73,887			75,653			71,974			69,987
Total Liabilities		3,865,330			3,948,658			3,829,615			3,742,000			3,758,217

Temporary Equity		–			–			–			6,817			6,479
SHAREOWNERS’ EQUITY
Common Stock		171			171			170			169			169
Additional Paid-In Capital		39,527			38,576			37,684			36,070			35,547
Retained Earnings		487,665			476,715			463,949			454,342			445,959
Accumulated Other Comprehensive Loss, Net of Tax		(940	)		(2,887	)		(6,486	)		(14,082	)		(20,676	)
Total Shareowners’ Equity		526,423			512,575			495,317			476,499			460,999
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
OTHER BALANCE SHEET DATA
Earning Assets	$	4,044,886		$	4,108,969		$	3,974,431		$	3,880,769		$	3,883,382
Interest Bearing Liabilities		2,450,576			2,511,032			2,447,708			2,339,311			2,344,624
Book Value Per Diluted Share	$	30.79		$	30.02		$	29.11		$	28.06		$	27.17
Tangible Book Value Per Diluted Share⁽¹⁾		25.37			24.59			23.65			22.60			21.69
Actual Basic Shares Outstanding		17,066			17,055			16,975			16,944			16,942
Actual Diluted Shares Outstanding		17,098			17,072			17,018			16,981			16,970
⁽¹⁾Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
*Unaudited*

		2025				2024							Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter		First Quarter		Fourth Quarter			Third Quarter		Second Quarter		2025		2024
INTEREST INCOME
Loans, including Fees	$	40,872	$	40,478	$	41,453		$	41,659	$	41,138	$	81,350	$	81,821
Investment Securities		6,678		5,808		4,694			4,155		4,004		12,486		8,248
Federal Funds Sold and Interest Bearing Deposits		3,909		3,496		3,596			3,514		3,624		7,405		5,517
Total Interest Income		51,459		49,782		49,743			49,328		48,766		101,241		95,586
INTEREST EXPENSE
Deposits		7,405		7,383		7,766			8,223		8,579		14,788		16,173
Repurchase Agreements		156		164		199			221		217		320		418
Other Short-Term Borrowings		179		117		83			52		68		296		107
Subordinated Notes Payable		530		560		581			610		630		1,090		1,258
Other Long-Term Borrowings		5		11		11			11		3		16		6
Total Interest Expense		8,275		8,235		8,640			9,117		9,497		16,510		17,962
Net Interest Income		43,184		41,547		41,103			40,211		39,269		84,731		77,624
Provision for Credit Losses		620		768		701			1,206		1,204		1,388		2,124
Net Interest Income after Provision for Credit Losses		42,564		40,779		40,402			39,005		38,065		83,343		75,500
NONINTEREST INCOME
Deposit Fees		5,320		5,061		5,207			5,512		5,377		10,381		10,627
Bank Card Fees		3,774		3,514		3,697			3,624		3,766		7,288		7,386
Wealth Management Fees		5,206		5,763		5,222			4,770		4,439		10,969		9,121
Mortgage Banking Revenues		4,190		3,820		3,118			3,966		4,381		8,010		7,259
Other		1,524		1,749		1,516			1,641		1,643		3,273		3,310
Total Noninterest Income		20,014		19,907		18,760			19,513		19,606		39,921		37,703
NONINTEREST EXPENSE
Compensation		26,490		26,248		26,108			25,800		24,406		52,738		48,813
Occupancy, Net		7,071		6,793		6,893			7,098		6,997		13,864		13,991
Other		8,977		5,660		8,781			10,023		9,038		14,637		17,808
Total Noninterest Expense		42,538		38,701		41,782			42,921		40,441		81,239		80,612
OPERATING PROFIT		20,040		21,985		17,380			15,597		17,230		42,025		32,591
Income Tax Expense		4,996		5,127		4,219			2,980		3,189		10,123		6,725
Net Income		15,044		16,858		13,161			12,617		14,041		31,902		25,866
Pre-Tax (Income) Loss Attributable to Noncontrolling Interest		–		–		(71	)		501		109		–		841
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	15,044	$	16,858	$	13,090		$	13,118	$	14,150	$	31,902	$	26,707
PER COMMON SHARE
Basic Net Income	$	0.88	$	0.99	$	0.77		$	0.77	$	0.84	$	1.87	$	1.58
Diluted Net Income		0.88		0.99		0.77			0.77		0.83		1.87		1.57
Cash Dividend	$	0.24	$	0.24	$	0.23		$	0.23	$	0.21	$	0.48	$	0.42
AVERAGE SHARES
Basic		17,056		17,027		16,946			16,943		16,931		17,042		16,941
Diluted		17,088		17,044		16,990			16,979		16,960		17,067		16,964

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES (“ACL”)
AND CREDIT QUALITY
*Unaudited*

		2025						2024									Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2025			2024
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,734		$	29,251		$	29,836		$	29,219		$	29,329		$	29,251		$	29,941
Transfer from Other (Assets) Liabilities		–			–			–			–			–			–			(50	)
Provision for Credit Losses		718			1,083			1,085			1,879			1,129			1,801			2,061
Net Charge-Offs (Recoveries)		590			600			1,670			1,262			1,239			1,190			2,733
Balance at End of Period	$	29,862		$	29,734		$	29,251		$	29,836		$	29,219		$	29,862		$	29,219
As a % of Loans HFI		1.13	%		1.12	%		1.10	%		1.11	%		1.09	%		1.13	%		1.09	%
As a % of Nonperforming Loans		463.01	%		692.10	%		464.14	%		452.64	%		529.79	%		463.01	%		529.79	%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		1,832		$	2,155		$	2,522		$	3,139		$	3,121		$	2,155		$	3,191
Provision for Credit Losses		(94	)		(323	)		(367	)		(617	)		18			(417	)		(52	)
Balance at End of Period⁽¹⁾		1,738			1,832			2,155			2,522			3,139			1,738			3,139
ACL – DEBT SECURITIES
Provision for Credit Losses	$	(4	)	$	8		$	(17	)	$	(56	)	$	57		$	4		$	115
CHARGE-OFFS
Commercial, Financial and Agricultural	$	74		$	168		$	499		$	331		$	400		$	242		$	682
Real Estate – Construction		–			–			47			–			–			–			–
Real Estate – Commercial		–			–			–			3			–			–			–
Real Estate – Residential		49			8			44			–			–			57			17
Real Estate – Home Equity		24			–			33			23			–			24			76
Consumer		914			865			1,307			1,315			1,061			1,779			2,611
Overdrafts		437			570			574			611			571			1,007			1,209
Total Charge-Offs	$	1,498		$	1,611		$	2,504		$	2,283		$	2,032		$	3,109		$	4,595
RECOVERIES
Commercial, Financial and Agricultural	$	117		$	75		$	103		$	176		$	59		$	192		$	100
Real Estate – Construction		–			–			3			–			–			–			–
Real Estate – Commercial		6			3			33			5			19			9			223
Real Estate – Residential		65			119			28			88			23			184			60
Real Estate – Home Equity		42			9			17			59			37			51			61
Consumer		456			481			352			405			313			937			723
Overdrafts		222			324			298			288			342			546			695
Total Recoveries	$	908		$	1,011		$	834		$	1,021		$	793		$	1,919		$	1,862
NET CHARGE-OFFS (RECOVERIES)	$	590		$	600		$	1,670		$	1,262		$	1,239		$	1,190		$	2,733
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.09	%		0.09	%		0.25	%		0.19	%		0.18	%		0.09	%		0.20	%
CREDIT QUALITY
Nonaccruing Loans	$	6,449		$	4,296		$	6,302		$	6,592		$	5,515
Other Real Estate Owned		132			132			367			650			650
Total Nonperforming Assets (“NPAs”)	$	6,581		$	4,428		$	6,669		$	7,242		$	6,165

Past Due Loans 30-89 Days	$	4,523		$	3,735		$	4,311		$	9,388		$	5,672
Classified Loans		28,623			19,194			19,896			25,501			25,566

Nonperforming Loans as a % of Loans HFI		0.25	%		0.16	%		0.24	%		0.25	%		0.21	%
NPAs as a % of Loans HFI and Other Real Estate		0.25	%		0.17	%		0.25	%		0.27	%		0.23	%
NPAs as a % of Total Assets		0.15	%		0.10	%		0.15	%		0.17	%		0.15	%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
*Unaudited*

		Second Quarter 2025							First Quarter 2025							Fourth Quarter 2024							Third Quarter 2024							Second Quarter 2024							June 2025 YTD							June 2024 YTD
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	22,668		$	475	8.40	%	$	24,726		$	490	8.04	%	$	31,047		$	976	7.89	%	$	24,570			720	7.49	%	$	26,281		$	517	5.26	%	$	23,692		$	965	8.21	%	$	26,797		$	1,080	5.62	%
Loans Held for Investment⁽¹⁾		2,652,572			40,436	6.11			2,665,910			40,029	6.09			2,677,396			40,521	6.07			2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,659,204			80,465	6.10			2,727,688			80,879	5.99

Investment Securities
Taxable Investment Securities		1,006,514			6,666	2.65			981,485			5,802	2.38			914,353			4,688	2.04			907,610			4,148	1.82			918,989			3,998	1.74			994,068			12,468	2.52			935,658			8,237	1.76
Tax-Exempt Investment Securities⁽¹⁾		1,467			17	4.50			845			9	4.32			849			9	4.31			846			10	4.33			843			9	4.36			1,158			26	4.43			850			18	4.35

Total Investment Securities		1,007,981			6,683	2.65			982,330			5,811	2.38			915,202			4,697	2.04			908,456			4,158	1.82			919,832			4,007	1.74			995,226			12,494	2.52			936,508			8,255	1.76

Federal Funds Sold and Interest Bearing Deposits		348,787			3,909	4.49			320,948			3,496	4.42			298,255			3,596	4.80			256,855			3,514	5.44			262,419			3,624	5.56			334,944			7,405	4.46			201,454			5,517	5.51

Total Earning Assets		4,032,008		$	51,503	5.12	%		3,993,914		$	49,826	5.06	%		3,921,900		$	49,790	5.05	%		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		4,013,066		$	101,329	5.09	%		3,892,447		$	95,731	4.94	%

Cash and Due From Banks		65,761							73,467							73,992							70,994							74,803							69,593							75,283
Allowance for Credit Losses		(30,492	)						(30,008	)						(30,107	)						(29,905	)						(29,564	)						(30,251	)						(29,797	)
Other Assets		302,984							297,660							293,884							291,359							291,669							300,336							293,473

Total Assets	$	4,370,261						$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,352,744						$	4,231,406

LIABILITIES:
Noninterest Bearing Deposits	$	1,342,304						$	1,317,425						$	1,323,556						$	1,332,305						$	1,346,546						$	1,329,933						$	1,345,367
NOW Accounts		1,225,697		$	3,750	1.23	%		1,249,955		$	3,854	1.25	%		1,182,073		$	3,826	1.29	%		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,237,759		$	7,604	1.24	%		1,204,337		$	8,922	1.49	%
Money Market Accounts		431,774			2,340	2.17			420,059			2,187	2.11			422,615			2,526	2.38			418,625			2,694	2.56			407,387			2,752	2.72			425,949			4,527	2.14			380,489			4,737	2.50
Savings Accounts		507,950			174	0.14			507,676			176	0.14			504,859			179	0.14			512,098			180	0.14			519,374			176	0.14			507,813			350	0.14			529,374			364	0.14
Time Deposits		172,982			1,141	2.65			170,367			1,166	2.78			167,321			1,235	2.94			163,462			1,262	3.07			160,078			1,226	3.08			171,682			2,307	2.71			149,203			2,150	2.90
Total Interest Bearing Deposits		2,338,403			7,405	1.27			2,348,057			7,383	1.28			2,276,868			7,766	1.36			2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,343,203			14,788	1.27			2,263,403			16,173	1.44
Total Deposits		3,680,707			7,405	0.81			3,665,482			7,383	0.82			3,600,424			7,766	0.86			3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,673,136			14,788	0.81			3,608,770			16,173	0.90
Repurchase Agreements		22,557			156	2.78			29,821			164	2.23			28,018			199	2.82			27,126			221	3.24			26,999			217	3.24			26,169			320	2.47			26,362			418	3.19
Other Short-Term Borrowings		10,503			179	6.82			7,437			117	6.39			6,510			83	5.06			2,673			52	7.63			6,592			68	4.16			8,978			296	6.64			5,176			107	4.16
Subordinated Notes Payable		51,981			530	4.03			52,887			560	4.23			52,887			581	4.30			52,887			610	4.52			52,887			630	4.71			52,432			1,090	4.13			52,887			1,258	4.70
Other Long-Term Borrowings		792			5	2.41			794			11	5.68			794			11	5.57			795			11	5.55			258			3	4.31			793			16	4.04			270			6	4.56
Total Interest Bearing Liabilities		2,424,236		$	8,275	1.37	%		2,438,996		$	8,235	1.37	%		2,365,077		$	8,640	1.45	%		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,431,575		$	16,510	1.37	%		2,348,098		$	17,962	1.54	%

Other Liabilities		76,138							65,211							73,130							73,767							72,634							70,705							70,464

Total Liabilities		3,842,678							3,821,632							3,761,763							3,729,282							3,800,398							3,832,213							3,763,929
Temporary Equity		–							–							6,763							6,443							6,493							–							6,821

SHAREOWNERS’ EQUITY:		527,583							513,401							491,143							480,137							465,297							520,531							460,656

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,370,261						$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,352,744						$	4,231,406

Interest Rate Spread				$	43,228	3.75	%				$	41,591	3.69	%				$	41,150	3.59	%				$	40,260	3.49	%				$	39,334	3.38	%				$	84,819	3.72	%				$	77,769	3.40	%

Interest Income and Rate Earned⁽¹⁾					51,503	5.12						49,826	5.06						49,790	5.05						49,377	5.06						48,831	4.99						101,329	5.09						95,731	4.94
Interest Expense and Rate Paid⁽²⁾					8,275	0.82						8,235	0.84						8,640	0.88						9,117	0.93						9,497	0.97						16,510	0.83						17,962	0.93

Net Interest Margin				$	43,228	4.30	%				$	41,591	4.22	%				$	41,150	4.17	%				$	40,260	4.12	%				$	39,334	4.02	%				$	84,819	4.26	%				$	77,769	4.01	%

⁽¹⁾Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾Rate calculated based on average earning assets.

The MIL Network –

July 22, 2025

MIL-OSI: Capital City Bank Group, Inc. Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

TALLAHASSEE, Fla., July 22, 2025 (GLOBE NEWSWIRE) — Capital City Bank Group, Inc. (NASDAQ: CCBG) today reported net income attributable to common shareowners of $15.0 million, or $0.88 per diluted share, for the second quarter of 2025 compared to $16.9 million, or $0.99 per diluted share, for the first quarter of 2025, and $14.2 million, or $0.83 per diluted share, for the second quarter of 2024.

QUARTER HIGHLIGHTS (2^ndQuarter 2025 versus 1^stQuarter 2025)

Income Statement

Tax-equivalent net interest income totaled $43.2 million compared to $41.6 million for the first quarter of 2025
- Net interest margin increased eight basis points to 4.30% (earning asset yield increased by six basis points and cost of funds decreased two basis points to 82 basis points)
Provision for credit losses decreased by $0.1 million to $0.6 million for the second quarter – net loan charge-offs were comparable to the first quarter of 2025 at nine basis points (annualized) of average loans – allowance coverage ratio increased to 1.13% at June 30, 2025
Noninterest income increased by $0.1 million, or 0.5%, reflecting higher deposit and bankcard fees as well as mortgage fees partially offset by lower wealth management fees
Noninterest expense increased by $3.8 million, or 9.9%, primarily due to a $3.9 million net gain from the sale of our operations center building (reflected in other expense) in the first quarter of 2025

Balance Sheet

Loan balances decreased by $13.3 million, or 0.5% (average), and decreased by $29.3 million, or 1.1% (end of period)
Deposit balances increased by $15.2 million, or 0.4% (average), and decreased by $79.0 million, or 2.1% (end of period) due to the seasonal decrease in our public fund balances
- Noninterest bearing deposits averaged 36.5% of total deposits for the second quarter and 36.2% for the year
Tangible book value per diluted share (non-GAAP financial measure) increased by $0.78, or 3.2%

“Capital City delivered another strong quarter, highlighted by sustained revenue growth and continued credit strength,” said William G. Smith, Jr, Capital City Bank Group Chairman and CEO. “Our second quarter results reflect a 3.9% increase in net interest income and an 8 basis point expansion in the net interest margin to 4.30%. Tangible book value per share increased by 3.2%, and we further strengthened our capital position, with our tangible capital ratio increasing to 10.1%. We remain focused on executing strategies that drive consistent, profitable growth, supported by a fortress balance sheet that provides resilience and strategic flexibility.”

Discussion of Operating Results

Net Interest Income/Net Interest Margin

Tax-equivalent net interest income for the second quarter of 2025 totaled $43.2 million compared to $41.6 million for the first quarter of 2025 and $39.3 million for the second quarter of 2024. Compared to the first quarter of 2025, the increase was driven by a $0.9 million increase in investment securities income and a $0.4 million increase in overnight funds income. One additional calendar day in the second quarter of 2025 contributed to the increase. Compared to the second quarter of 2024, the increase was primarily due to a $2.7 million increase in investment securities income and a $1.2 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income for both prior period comparisons. Further, the decrease in deposit interest expense from the prior year period reflected the gradual decrease in our deposit rates, as short term rates began declining in the second half of 2024.

For the first six months of 2025, tax-equivalent net interest income totaled $84.8 million compared to $77.8 million for the same period of 2024 with the increase primarily attributable to a $4.2 million increase in investment securities income, a $1.9 million increase in overnight funds income, and a $1.4 million decrease in deposit interest expense. New investment purchases at higher yields drove the increase in investment securities income. Higher average deposit balances contributed to the increase in overnight funds income. The decrease in deposit interest expense reflected the aforementioned decrease in our deposit rates.

Our net interest margin for the second quarter of 2025 was 4.30%, an increase of eight basis points over the first quarter of 2025 and an increase of 28 basis points over the second quarter of 2024. For the month of June 2025, our net interest margin was 4.36%. For the first six months of 2025, our net interest margin increased by 25 basis points to 4.26% compared to the same period of 2024. The increase in net interest margin over all prior periods reflected a higher yield in the investment portfolio driven by new purchases at higher yields. Lower deposit cost also contributed to the improvement over both prior year periods. For the second quarter of 2025, our cost of funds was 82 basis points, a decrease of two basis points from the first quarter of 2025 and a 15-basis point decrease from the second quarter of 2024. Our cost of deposits (including noninterest bearing accounts) was 81 basis points, 82 basis points, and 95 basis points, respectively, for the same periods.

Provision for Credit Losses

We recorded a provision expense for credit losses of $0.6 million for the second quarter of 2025 compared to $0.8 million for the first quarter of 2025 and $1.2 million for the second quarter of 2024. For the first six months of 2025, we recorded a provision expense for credit losses of $1.4 million compared to $2.1 million for the first six months of 2024. Activity within the components of the provision (loans held for investment (“HFI”) and unfunded loan commitments) for each reported period is provided in the table on page 14. We discuss the various factors that impacted our provision expense for Loans HFI in further detail below under the heading Allowance for Credit Losses.

Noninterest Income and Noninterest Expense

Noninterest income for the second quarter of 2025 totaled $20.0 million compared to $19.9 million for the first quarter of 2025 and $19.6 million for the second quarter of 2024. The $0.1 million, or 0.5%, increase over the first quarter of 2025 was primarily due to a $0.4 million increase in mortgage banking revenues and a $0.3 million increase in deposit fees, partially offset by a $0.6 million decrease in wealth management fees. The increase in mortgage revenues was driven by an increase in production volume. Fee adjustments made late in the second quarter of 2025 led to the increase in deposit fees. The decrease in wealth management fees was attributable to a decrease in insurance commission revenue. Compared to the second quarter of 2024, the $0.4 million, or 2.1%, increase was primarily due to a $0.8 million increase in wealth management fees, partially offset by a $0.2 million decrease in mortgage banking revenues and a $0.1 million decrease in other income. The increase in wealth management fees reflected a $0.5 million increase in trust fees and a $0.4 million increase in retail brokerage fees, partially offset by a $0.1 million decrease in insurance commission revenue. A combination of new business, higher account valuations, and fee increases implemented in early 2025 drove the improvement in trust and retail brokerage fees.

For the first six months of 2025, noninterest income totaled $39.9 million compared to $37.7 million for the same period of 2024, primarily attributable to a $1.8 million increase in wealth management fees and a $0.7 million increase in mortgage banking revenues that was partially offset by a $0.2 million decrease in deposit fees. The increase in wealth management fees reflected increases in retail brokerage fees of $1.0 million, trust fees of $0.7 million, and insurance commission revenue of $0.1 million. The increases in retail brokerage and trust fees were attributable to a combination of new business, higher account valuations, and fee increases implemented in early 2025. The increase in mortgage banking revenues was due to a higher gain on sale margin.

Noninterest expense for the second quarter of 2025 totaled $42.5 million compared to $38.7 million for the first quarter of 2025 and $40.4 million for the second quarter of 2024. The $3.8 million, or 9.9%, increase over the first quarter of 2025, reflected a $3.3 million increase in other expense, a $0.3 million increase in occupancy expense, and a $0.2 million increase in compensation expense. The increase in other expense was driven by a $4.5 million increase in other real estate expense which reflected lower gains from the sale of banking facilities, primarily the sale of our operations center building in the first quarter of 2025, partially offset by a $0.5 million decrease in charitable contribution expense and a $0.6 million decrease in miscellaneous expense. The slight increase in occupancy expense was due to higher software maintenance agreement expense and maintenance/repairs for buildings and furniture/fixtures. The slight increase in compensation expense reflected a $0.1 million increase in salary expense and a $0.1 million increase in associate benefit expense. Compared to the second quarter of 2024, the $2.1 million, or 5.2%, increase was primarily due to a $2.1 million increase in compensation expense which reflected a $1.3 million increase in salary expense and a $0.8 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $0.9 million and base salaries of $0.4 million (merit based). The increase in associate benefit expense was attributable to a $0.6 million increase in associate insurance expense and a $0.2 million increase in stock compensation expense.

For the first six months of 2025, noninterest expense totaled $81.2 million compared to $80.6 million for the same period of 2024 with the $0.6 million, or 0.8%, increase due to a $3.9 million increase in compensation expense that was partially offset by a $3.2 million decrease in other expense and a $0.1 million decrease in occupancy expense. The increase in compensation was due to a $2.5 million increase in salary expense and a $1.4 million increase in associate benefit expense. The increase in salary expense was primarily due to increases in incentive plan expense of $1.2 million, base salaries of $0.9 million (merit based), and commissions of $0.7 million (retail brokerage and mortgage). The increase in associate benefit expense was attributable to a higher cost for associate insurance. The decrease in other expense was primarily due to a $4.5 million decrease in other real estate expense due to lower gains from the sale of banking facilities, and a $1.0 million decrease in miscellaneous expense (non-service component of pension expense), partially offset by increases in processing expense of $1.1 million (outsource of core processing system), charitable contribution expense of $0.7 million, and professional fees of $0.5 million.

Income Taxes

We realized income tax expense of $5.0 million (effective rate of 24.9%) for the second quarter of 2025 compared to $5.1 million (effective rate of 23.3%) for the first quarter of 2025 and $3.2 million (effective rate of 18.5%) for the second quarter of 2024. For the first six months of 2025, we realized income tax expense of $10.1 million (effective rate of 24.1%) compared to $6.7 million (effective rate of 20.6%) for the same period of 2024. A lower level of tax benefit accrued from a solar tax credit equity fund drove the increase in our effective tax rate for all prior period comparisons. Absent discrete items or new tax credit investments, we expect our annual effective tax rate to approximate 24% for 2025.

Discussion of Financial Condition

Earning Assets

Average earning assets totaled $4.032 billion for the second quarter of 2025, an increase of $38.1 million, or 1.0%, over the first quarter of 2025, and an increase of $110.1 million, or 2.8%, over the fourth quarter of 2024. The increase over both prior periods was driven by higher average deposit balances (see below – Deposits). Compared to the first quarter of 2025, the change in the earning asset mix reflected a $27.8 million increase in overnight funds and a $25.7 million increase in investment securities that was partially offset by a $13.3 million decrease in loans HFI and a $2.1 million decrease in loans held for sale (“HFS”). Compared to the fourth quarter of 2024, the change in the earning asset mix reflected a $92.8 million increase in investment securities and a $50.5 million increase in overnight funds sold partially offset by a $24.8 million decrease in loans HFI and a $8.4 million decrease in loans HFS.

Average loans HFI decreased by $13.3 million, or 0.5%, from the first quarter of 2025 and decreased by $24.8 million, or 0.9%, from the fourth quarter of 2024. Compared to the first quarter of 2025, the decrease was due to decreases in construction loans of $24.6 million, consumer loans (primarily indirect auto) of $1.9 million, and commercial loans of $3.4 million, partially offset by increases to residential real estate loans of $10.2 million, commercial real estate loans of $2.1 million, and home equity loans of $4.1 million. Compared to the fourth quarter of 2024, the decline was primarily attributable to decreases in construction loans of $33.2 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $4.0 million, partially offset by increases in home equity loans of $10.8 million, residential real estate loans of $9.9 million, and commercial real estate loans of $1.9 million.

Loans HFI at June 30, 2025 decreased by $29.3 million, or 1.1%, from March 31, 2025 and decreased by $20.1 million, or 0.8%, from December 31, 2024. Compared to the first quarter of 2025, the decline was primarily due to decreases in construction loans of $18.2 million, consumer loans (primarily indirect auto) of $8.7 million, commercial loans of $4.4 million, and commercial real estate loans of $4.4 million, partially offset by increases in residential real estate loans of $5.8 million and home equity loans of $2.2 million. Compared to December 31, 2024, the decrease was primarily attributable to decreases in construction loans of $45.9 million, commercial loans of $9.2 million, and consumer loans (primarily indirect auto) of $2.0 million, partially offset by increases in commercial real estate loans of $23.4 million, residential real estate loans of $17.9 million, and home equity loans of $8.1 million.

Allowance for Credit Losses

At June 30, 2025, the allowance for credit losses for loans HFI totaled $29.9 million compared to $29.7 million at March 31, 2025 and $29.3 million at December 31, 2024. Activity within the allowance is provided on Page 14. The slight increase in the allowance over March 31, 2025 and December 31, 2024 was primarily attributable to qualitative factor adjustments that were partially offset by lower loan balances. Net loan charge-offs for both the second quarter of 2025 and the first quarter of 2025 were comparable at nine basis points of average loans. At June 30, 2025, the allowance represented 1.13% of loans HFI compared to 1.12% at March 31, 2025, and 1.10% at December 31, 2024.

Credit Quality

Nonperforming assets (nonaccrual loans and other real estate) totaled $6.6 million at June 30, 2025 compared to $4.4 million at March 31, 2025 and $6.7 million at December 31, 2024. At June 30, 2025, nonperforming assets as a percentage of total assets was 0.15%, compared to 0.10% at March 31, 2025 and 0.15% at December 31, 2024. Nonaccrual loans totaled $6.4 million at June 30, 2025, a $2.2 million increase over March 31, 2025 and a $0.1 million increase over December 31, 2024 with the increase over the first quarter of 2025 primarily attributable to two home equity loans totaling $1.8 million. Classified loans totaled $28.6 million at June 30, 2025, a $9.4 million increase over March 31, 2025 and a $8.7 million increase over December 31, 2024. The increase over the prior periods was primarily due to the downgrade of four residential real estate loans totaling $4.2 million and two commercial real estate loans totaling $4.3 million.

Deposits

Average total deposits were $3.681 billion for the second quarter of 2025, an increase of $15.2 million, or 0.4%, over the first quarter of 2025 and an increase of $80.3 million, or 2.2%, over the fourth quarter of 2024. Compared to the first quarter of 2025, the increase was attributable to higher core deposit balances (primarily noninterest bearing checking and money market), partially offset by a decline in public funds balances (primarily NOW accounts) due to the seasonal reduction in those balances. The increase over the fourth quarter of 2024 reflected strong growth in core deposit balances and a seasonal increase in public funds balances (primarily NOW) which are received/deposited by those clients starting in December and peak on average in the first quarter.

At June 30, 2025, total deposits were $3.705 billion, a decrease of $79.0 million, or 2.1%, from March 31, 2025, and an increase of $32.9 million, or 0.9%, over December 31, 2024. The decrease from March 31, 2025 was primarily due to a seasonal decline in public funds balances, (primarily money market and noninterest bearing). The increase over December 31, 2024 reflected higher core deposit balances, primarily noninterest bearing accounts. Public funds totaled $596.6 million at June 30, 2025, $648.0 million at March 31, 2025, and $660.9 million at December 31, 2024.

Liquidity

We maintained an average net overnight funds (i.e., deposits with banks plus FED funds sold less FED funds purchased) sold position of $348.8 million in the second quarter of 2025 compared to $320.9 million in the first quarter of 2025 and $298.3 million in the fourth quarter of 2024. Compared to both prior periods, the increase reflected higher average deposits and lower average loans.

At June 30, 2025, we had the ability to generate approximately $1.603 billion (excludes overnight funds position of $395 million) in additional liquidity through various sources including various federal funds purchased lines, Federal Home Loan Bank borrowings, the Federal Reserve Discount Window, and brokered deposits.

We also view our investment portfolio as a liquidity source, as we have the option to pledge securities in our portfolio as collateral for borrowings or deposits and/or to sell selected securities in our portfolio. Our portfolio consists of debt issued by the U.S. Treasury, U.S. governmental agencies, municipal governments, and corporate entities. At June 30, 2025, the weighted-average maturity and duration of our portfolio were 2.66 years and 2.14 years, respectively, and the available-for-sale portfolio had a net unrealized after-tax loss of $13.4 million.

Capital

Shareowners’ equity was $526.4 million at June 30, 2025 compared to $512.6 million at March 31, 2025 and $495.3 million at December 31, 2024. For the first six months of 2025, shareowners’ equity was positively impacted by net income attributable to shareowners of $31.9 million, a net $5.5 million decrease in the accumulated other comprehensive loss, the issuance of common stock of $2.8 million, and stock compensation accretion of $0.9 million. The net favorable change in accumulated other comprehensive loss reflected a $6.4 million decrease in the investment securities loss that was partially offset by a $0.9 million decrease in the fair value of the interest rate swap related to subordinated debt. Shareowners’ equity was reduced by common stock dividends of $8.2 million ($0.48 per share) and net adjustments totaling $1.8 million related to transactions under our stock compensation plans.

At June 30, 2025, our total risk-based capital ratio was 19.60% compared to 19.20% at March 31, 2025 and 18.64% at December 31, 2024. Our common equity tier 1 capital ratio was 16.81%, 16.08%, and 15.54%, respectively, on these dates. Our leverage ratio was 11.14%, 11.17%, and 11.05%, respectively, on these dates. At June 30, 2025, all our regulatory capital ratios exceeded the thresholds to be designated as “well-capitalized” under the Basel III capital standards. Further, our tangible common equity ratio (non-GAAP financial measure) was 10.09% at June 30, 2025 compared to 9.61% and 9.51% at March 31, 2025 and December 31, 2024, respectively. If the unrealized loss for held-to-maturity securities of $9.9 million (after-tax) was recognized in accumulated other comprehensive loss, our adjusted tangible capital ratio would be 9.86%.

About Capital City Bank Group, Inc.

Capital City Bank Group, Inc. (NASDAQ: CCBG) is one of the largest publicly traded financial holding companies headquartered in Florida and has approximately $4.4 billion in assets. We provide a full range of banking services, including traditional deposit and credit services, mortgage banking, asset management, trust, merchant services, bankcards, securities brokerage services, and financial advisory services, including the sale of life insurance, risk management and asset protection services. Our bank subsidiary, Capital City Bank, was founded in 1895 and now has 62 banking offices and 107 ATMs/ITMs in Florida, Georgia and Alabama. For more information about Capital City Bank Group, Inc., visit https://www.ccbg.com/.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this Press Release are based on current plans and expectations that are subject to uncertainties and risks, which could cause our future results to differ materially. The words “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “target,” “vision,” “goal,” and similar expressions are intended to identify forward-looking statements. The following factors, among others, could cause our actual results to differ: the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board; inflation, interest rate, market and monetary fluctuations; local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact; the costs and effects of legal and regulatory developments, the outcomes of legal proceedings or regulatory or other governmental inquiries, the results of regulatory examinations or reviews and the ability to obtain required regulatory approvals; the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) and their application with which we and our subsidiaries must comply; the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as other accounting standard setters; the accuracy of our financial statement estimates and assumptions; changes in the financial performance and/or condition of our borrowers; changes in the mix of loan geographies, sectors and types or the level of non-performing assets and charge-offs; changes in estimates of future credit loss reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; changes in our liquidity position; the timely development and acceptance of new products and services and perceived overall value of these products and services by users; changes in consumer spending, borrowing, and saving habits; greater than expected costs or difficulties related to the integration of new products and lines of business; technological changes; the costs and effects of cyber incidents or other failures, interruptions, or security breaches of our systems or those of our customers or third-party providers; acquisitions and integration of acquired businesses; impairment of our goodwill or other intangible assets; changes in the reliability of our vendors, internal control systems, or information systems; our ability to increase market share and control expenses; our ability to attract and retain qualified employees; changes in our organization, compensation, and benefit plans; the soundness of other financial institutions; volatility and disruption in national and international financial and commodity markets; changes in the competitive environment in our markets and among banking organizations and other financial service providers; government intervention in the U.S. financial system; the effects of natural disasters (including hurricanes), widespread health emergencies (including pandemics), military conflict, terrorism, civil unrest, climate change or other geopolitical events; our ability to declare and pay dividends; structural changes in the markets for origination, sale and servicing of residential mortgages; any inability to implement and maintain effective internal control over financial reporting and/or disclosure control; negative publicity and the impact on our reputation; and the limited trading activity and concentration of ownership of our common stock. Additional factors can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our other filings with the SEC, which are available at the SEC’s internet site (https://www.sec.gov). Forward-looking statements in this Press Release speak only as of the date of the Press Release, and we assume no obligation to update forward-looking statements or the reasons why actual results could differ, except as may be required by law.

For Information Contact:
Jep Larkin
Executive Vice President and Chief Financial Officer
850.402.8450

USE OF NON-GAAP FINANCIAL MEASURES
Unaudited

We present a tangible common equity ratio and a tangible book value per diluted share that removes the effect of goodwill and other intangibles resulting from merger and acquisition activity. We believe these measures are useful to investors because they allow investors to more easily compare our capital adequacy to other companies in the industry. 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.

The GAAP to non-GAAP reconciliations are provided below.

(Dollars in Thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024	Jun 30, 2024
Shareowners’ Equity (GAAP)		$	526,423	$	512,575	$	495,317	476,499	$	460,999
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773	92,813		92,853
Tangible Shareowners’ Equity (non-GAAP)	A		433,730		419,842		402,544	383,686		368,146
Total Assets (GAAP)			4,391,753		4,461,233		4,324,932	4,225,316		4,225,695
Less: Goodwill and Other Intangibles (GAAP)			92,693		92,733		92,773	92,813		92,853
Tangible Assets (non-GAAP)	B	$	4,299,060	$	4,368,500	$	4,232,159	4,132,503	$	4,132,842
Tangible Common Equity Ratio (non-GAAP)	A/B		10.09%		9.61%		9.51%	9.28%		8.91%
Actual Diluted Shares Outstanding (GAAP)	C		17,097,986		17,072,330		17,018,122	16,980,686		16,970,228
Tangible Book Value per Diluted Share (non-GAAP)	A/C	$	25.37	$	24.59	$	23.65	22.60	$	21.69

CAPITAL CITY BANK GROUP, INC.
EARNINGS HIGHLIGHTS
*Unaudited*

		Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)		Jun 30, 2025		Mar 31, 2025		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
EARNINGS
Net Income Attributable to Common Shareowners	$	15,044	$	16,858	$	14,150	$	31,902	$	26,707
Diluted Net Income Per Share	$	0.88	$	0.99	$	0.83	$	1.87	$	1.57
PERFORMANCE
Return on Average Assets (annualized)		1.38	%	1.58	%	1.33	%	1.48	%	1.27	%
Return on Average Equity (annualized)		11.44		13.32		12.23		12.36		11.66
Net Interest Margin		4.30		4.22		4.02		4.26		4.01
Noninterest Income as % of Operating Revenue		31.67		32.39		33.30		32.03		32.69
Efficiency Ratio		67.26	%	62.93	%	68.61	%	65.13	%	69.81	%
CAPITAL ADEQUACY
Tier 1 Capital		18.38	%	18.01	%	16.31	%	18.38	%	16.31	%
Total Capital		19.60		19.20		17.50		19.60		17.50
Leverage		11.14		11.17		10.51		11.14		10.51
Common Equity Tier 1		16.81		16.08		14.44		16.81		14.44
Tangible Common Equity⁽¹⁾		10.09		9.61		8.91		10.09		8.91
Equity to Assets		11.99	%	11.49	%	10.91	%	11.99	%	10.91	%
ASSET QUALITY
Allowance as % of Non-Performing Loans		463.01	%	692.10	%	529.79	%	463.01	%	529.79	%
Allowance as a % of Loans HFI		1.13		1.12		1.09		1.13		1.09
Net Charge-Offs as % of Average Loans HFI		0.09		0.09		0.18		0.09		0.20
Nonperforming Assets as % of Loans HFI and OREO		0.25		0.17		0.23		0.25		0.23
Nonperforming Assets as % of Total Assets		0.15	%	0.10	%	0.15	%	0.15	%	0.15	%
STOCK PERFORMANCE
High	$	39.82	$	38.27	$	28.58	$	39.82	$	31.34
Low		32.38		33.00		25.45		32.38		25.45
Close	$	39.35	$	35.96	$	28.44	$	39.35	$	28.44
Average Daily Trading Volume		27,397		24,486		29,861		25,988		30,433

⁽¹⁾Tangible common equity ratio is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
*Unaudited*

	2025							2024
(Dollars in thousands)	Second Quarter				First Quarter			Fourth Quarter			Third Quarter			Second Quarter
ASSETS
Cash and Due From Banks	$	78,485		$	78,521		$	70,543		$	83,431		$	75,304
Funds Sold and Interest Bearing Deposits		394,917			446,042			321,311			261,779			272,675
Total Cash and Cash Equivalents		473,402			524,563			391,854			345,210			347,979

Investment Securities Available for Sale		533,457			461,224			403,345			336,187			310,941
Investment Securities Held to Maturity		462,599			517,176			567,155			561,480			582,984
Other Equity Securities		3,242			2,315			2,399			6,976			2,537
Total Investment Securities		999,298			980,715			972,899			904,643			896,462

Loans Held for Sale (“HFS”):		19,181			21,441			28,672			31,251			24,022

Loans Held for Investment (“HFI”):
Commercial, Financial, & Agricultural		180,008			184,393			189,208			194,625			204,990
Real Estate – Construction		174,115			192,282			219,994			218,899			200,754
Real Estate – Commercial		802,504			806,942			779,095			819,955			823,122
Real Estate – Residential		1,046,368			1,040,594			1,028,498			1,023,485			1,012,541
Real Estate – Home Equity		228,201			225,987			220,064			210,988			211,126
Consumer		197,483			206,191			199,479			213,305			234,212
Other Loans		1,552			3,227			14,006			461			2,286
Overdrafts		1,259			1,154			1,206			1,378			1,192
Total Loans Held for Investment		2,631,490			2,660,770			2,651,550			2,683,096			2,690,223
Allowance for Credit Losses		(29,862	)		(29,734	)		(29,251	)		(29,836	)		(29,219	)
Loans Held for Investment, Net		2,601,628			2,631,036			2,622,299			2,653,260			2,661,004

Premises and Equipment, Net		79,906			80,043			81,952			81,876			81,414
Goodwill and Other Intangibles		92,693			92,733			92,773			92,813			92,853
Other Real Estate Owned		132			132			367			650			650
Other Assets		125,513			130,570			134,116			115,613			121,311
Total Other Assets		298,244			303,478			309,208			290,952			296,228
Total Assets	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
LIABILITIES
Deposits:
Noninterest Bearing Deposits	$	1,332,080		$	1,363,739		$	1,306,254		$	1,330,715		$	1,343,606
NOW Accounts		1,284,137			1,292,654			1,285,281			1,174,585			1,177,180
Money Market Accounts		408,666			445,999			404,396			401,272			413,594
Savings Accounts		504,331			511,265			506,766			507,604			514,560
Certificates of Deposit		175,639			170,233			169,280			164,901			159,624
Total Deposits		3,704,853			3,783,890			3,671,977			3,579,077			3,608,564

Repurchase Agreements		21,800			22,799			26,240			29,339			22,463
Other Short-Term Borrowings		12,741			14,401			2,064			7,929			3,307
Subordinated Notes Payable		42,582			52,887			52,887			52,887			52,887
Other Long-Term Borrowings		680			794			794			794			1,009
Other Liabilities		82,674			73,887			75,653			71,974			69,987
Total Liabilities		3,865,330			3,948,658			3,829,615			3,742,000			3,758,217

Temporary Equity		–			–			–			6,817			6,479
SHAREOWNERS’ EQUITY
Common Stock		171			171			170			169			169
Additional Paid-In Capital		39,527			38,576			37,684			36,070			35,547
Retained Earnings		487,665			476,715			463,949			454,342			445,959
Accumulated Other Comprehensive Loss, Net of Tax		(940	)		(2,887	)		(6,486	)		(14,082	)		(20,676	)
Total Shareowners’ Equity		526,423			512,575			495,317			476,499			460,999
Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,391,753		$	4,461,233		$	4,324,932		$	4,225,316		$	4,225,695
OTHER BALANCE SHEET DATA
Earning Assets	$	4,044,886		$	4,108,969		$	3,974,431		$	3,880,769		$	3,883,382
Interest Bearing Liabilities		2,450,576			2,511,032			2,447,708			2,339,311			2,344,624
Book Value Per Diluted Share	$	30.79		$	30.02		$	29.11		$	28.06		$	27.17
Tangible Book Value Per Diluted Share⁽¹⁾		25.37			24.59			23.65			22.60			21.69
Actual Basic Shares Outstanding		17,066			17,055			16,975			16,944			16,942
Actual Diluted Shares Outstanding		17,098			17,072			17,018			16,981			16,970
⁽¹⁾Tangible book value per diluted share is a non-GAAP financial measure. For additional information, including a reconciliation to GAAP, refer to Page 10.

CAPITAL CITY BANK GROUP, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
*Unaudited*

		2025				2024							Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter		First Quarter		Fourth Quarter			Third Quarter		Second Quarter		2025		2024
INTEREST INCOME
Loans, including Fees	$	40,872	$	40,478	$	41,453		$	41,659	$	41,138	$	81,350	$	81,821
Investment Securities		6,678		5,808		4,694			4,155		4,004		12,486		8,248
Federal Funds Sold and Interest Bearing Deposits		3,909		3,496		3,596			3,514		3,624		7,405		5,517
Total Interest Income		51,459		49,782		49,743			49,328		48,766		101,241		95,586
INTEREST EXPENSE
Deposits		7,405		7,383		7,766			8,223		8,579		14,788		16,173
Repurchase Agreements		156		164		199			221		217		320		418
Other Short-Term Borrowings		179		117		83			52		68		296		107
Subordinated Notes Payable		530		560		581			610		630		1,090		1,258
Other Long-Term Borrowings		5		11		11			11		3		16		6
Total Interest Expense		8,275		8,235		8,640			9,117		9,497		16,510		17,962
Net Interest Income		43,184		41,547		41,103			40,211		39,269		84,731		77,624
Provision for Credit Losses		620		768		701			1,206		1,204		1,388		2,124
Net Interest Income after Provision for Credit Losses		42,564		40,779		40,402			39,005		38,065		83,343		75,500
NONINTEREST INCOME
Deposit Fees		5,320		5,061		5,207			5,512		5,377		10,381		10,627
Bank Card Fees		3,774		3,514		3,697			3,624		3,766		7,288		7,386
Wealth Management Fees		5,206		5,763		5,222			4,770		4,439		10,969		9,121
Mortgage Banking Revenues		4,190		3,820		3,118			3,966		4,381		8,010		7,259
Other		1,524		1,749		1,516			1,641		1,643		3,273		3,310
Total Noninterest Income		20,014		19,907		18,760			19,513		19,606		39,921		37,703
NONINTEREST EXPENSE
Compensation		26,490		26,248		26,108			25,800		24,406		52,738		48,813
Occupancy, Net		7,071		6,793		6,893			7,098		6,997		13,864		13,991
Other		8,977		5,660		8,781			10,023		9,038		14,637		17,808
Total Noninterest Expense		42,538		38,701		41,782			42,921		40,441		81,239		80,612
OPERATING PROFIT		20,040		21,985		17,380			15,597		17,230		42,025		32,591
Income Tax Expense		4,996		5,127		4,219			2,980		3,189		10,123		6,725
Net Income		15,044		16,858		13,161			12,617		14,041		31,902		25,866
Pre-Tax (Income) Loss Attributable to Noncontrolling Interest		–		–		(71	)		501		109		–		841
NET INCOME ATTRIBUTABLE TO COMMON SHAREOWNERS	$	15,044	$	16,858	$	13,090		$	13,118	$	14,150	$	31,902	$	26,707
PER COMMON SHARE
Basic Net Income	$	0.88	$	0.99	$	0.77		$	0.77	$	0.84	$	1.87	$	1.58
Diluted Net Income		0.88		0.99		0.77			0.77		0.83		1.87		1.57
Cash Dividend	$	0.24	$	0.24	$	0.23		$	0.23	$	0.21	$	0.48	$	0.42
AVERAGE SHARES
Basic		17,056		17,027		16,946			16,943		16,931		17,042		16,941
Diluted		17,088		17,044		16,990			16,979		16,960		17,067		16,964

CAPITAL CITY BANK GROUP, INC.
ALLOWANCE FOR CREDIT LOSSES (“ACL”)
AND CREDIT QUALITY
*Unaudited*

		2025						2024									Six Months Ended June 30,
(Dollars in thousands, except per share data)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter			2025			2024
ACL – HELD FOR INVESTMENT LOANS
Balance at Beginning of Period	$	29,734		$	29,251		$	29,836		$	29,219		$	29,329		$	29,251		$	29,941
Transfer from Other (Assets) Liabilities		–			–			–			–			–			–			(50	)
Provision for Credit Losses		718			1,083			1,085			1,879			1,129			1,801			2,061
Net Charge-Offs (Recoveries)		590			600			1,670			1,262			1,239			1,190			2,733
Balance at End of Period	$	29,862		$	29,734		$	29,251		$	29,836		$	29,219		$	29,862		$	29,219
As a % of Loans HFI		1.13	%		1.12	%		1.10	%		1.11	%		1.09	%		1.13	%		1.09	%
As a % of Nonperforming Loans		463.01	%		692.10	%		464.14	%		452.64	%		529.79	%		463.01	%		529.79	%
ACL – UNFUNDED COMMITMENTS
Balance at Beginning of Period		1,832		$	2,155		$	2,522		$	3,139		$	3,121		$	2,155		$	3,191
Provision for Credit Losses		(94	)		(323	)		(367	)		(617	)		18			(417	)		(52	)
Balance at End of Period⁽¹⁾		1,738			1,832			2,155			2,522			3,139			1,738			3,139
ACL – DEBT SECURITIES
Provision for Credit Losses	$	(4	)	$	8		$	(17	)	$	(56	)	$	57		$	4		$	115
CHARGE-OFFS
Commercial, Financial and Agricultural	$	74		$	168		$	499		$	331		$	400		$	242		$	682
Real Estate – Construction		–			–			47			–			–			–			–
Real Estate – Commercial		–			–			–			3			–			–			–
Real Estate – Residential		49			8			44			–			–			57			17
Real Estate – Home Equity		24			–			33			23			–			24			76
Consumer		914			865			1,307			1,315			1,061			1,779			2,611
Overdrafts		437			570			574			611			571			1,007			1,209
Total Charge-Offs	$	1,498		$	1,611		$	2,504		$	2,283		$	2,032		$	3,109		$	4,595
RECOVERIES
Commercial, Financial and Agricultural	$	117		$	75		$	103		$	176		$	59		$	192		$	100
Real Estate – Construction		–			–			3			–			–			–			–
Real Estate – Commercial		6			3			33			5			19			9			223
Real Estate – Residential		65			119			28			88			23			184			60
Real Estate – Home Equity		42			9			17			59			37			51			61
Consumer		456			481			352			405			313			937			723
Overdrafts		222			324			298			288			342			546			695
Total Recoveries	$	908		$	1,011		$	834		$	1,021		$	793		$	1,919		$	1,862
NET CHARGE-OFFS (RECOVERIES)	$	590		$	600		$	1,670		$	1,262		$	1,239		$	1,190		$	2,733
Net Charge-Offs as a % of Average Loans HFI⁽²⁾		0.09	%		0.09	%		0.25	%		0.19	%		0.18	%		0.09	%		0.20	%
CREDIT QUALITY
Nonaccruing Loans	$	6,449		$	4,296		$	6,302		$	6,592		$	5,515
Other Real Estate Owned		132			132			367			650			650
Total Nonperforming Assets (“NPAs”)	$	6,581		$	4,428		$	6,669		$	7,242		$	6,165

Past Due Loans 30-89 Days	$	4,523		$	3,735		$	4,311		$	9,388		$	5,672
Classified Loans		28,623			19,194			19,896			25,501			25,566

Nonperforming Loans as a % of Loans HFI		0.25	%		0.16	%		0.24	%		0.25	%		0.21	%
NPAs as a % of Loans HFI and Other Real Estate		0.25	%		0.17	%		0.25	%		0.27	%		0.23	%
NPAs as a % of Total Assets		0.15	%		0.10	%		0.15	%		0.17	%		0.15	%

⁽¹⁾Recorded in other liabilities
⁽²⁾Annualized

CAPITAL CITY BANK GROUP, INC.
AVERAGE BALANCE AND INTEREST RATES
*Unaudited*

		Second Quarter 2025							First Quarter 2025							Fourth Quarter 2024							Third Quarter 2024							Second Quarter 2024							June 2025 YTD							June 2024 YTD
(Dollars in thousands)		Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate			Average Balance			Interest	Average Rate
ASSETS:
Loans Held for Sale	$	22,668		$	475	8.40	%	$	24,726		$	490	8.04	%	$	31,047		$	976	7.89	%	$	24,570			720	7.49	%	$	26,281		$	517	5.26	%	$	23,692		$	965	8.21	%	$	26,797		$	1,080	5.62	%
Loans Held for Investment⁽¹⁾		2,652,572			40,436	6.11			2,665,910			40,029	6.09			2,677,396			40,521	6.07			2,693,533			40,985	6.09			2,726,748			40,683	6.03			2,659,204			80,465	6.10			2,727,688			80,879	5.99

Investment Securities
Taxable Investment Securities		1,006,514			6,666	2.65			981,485			5,802	2.38			914,353			4,688	2.04			907,610			4,148	1.82			918,989			3,998	1.74			994,068			12,468	2.52			935,658			8,237	1.76
Tax-Exempt Investment Securities⁽¹⁾		1,467			17	4.50			845			9	4.32			849			9	4.31			846			10	4.33			843			9	4.36			1,158			26	4.43			850			18	4.35

Total Investment Securities		1,007,981			6,683	2.65			982,330			5,811	2.38			915,202			4,697	2.04			908,456			4,158	1.82			919,832			4,007	1.74			995,226			12,494	2.52			936,508			8,255	1.76

Federal Funds Sold and Interest Bearing Deposits		348,787			3,909	4.49			320,948			3,496	4.42			298,255			3,596	4.80			256,855			3,514	5.44			262,419			3,624	5.56			334,944			7,405	4.46			201,454			5,517	5.51

Total Earning Assets		4,032,008		$	51,503	5.12	%		3,993,914		$	49,826	5.06	%		3,921,900		$	49,790	5.05	%		3,883,414		$	49,377	5.06	%		3,935,280		$	48,831	4.99	%		4,013,066		$	101,329	5.09	%		3,892,447		$	95,731	4.94	%

Cash and Due From Banks		65,761							73,467							73,992							70,994							74,803							69,593							75,283
Allowance for Credit Losses		(30,492	)						(30,008	)						(30,107	)						(29,905	)						(29,564	)						(30,251	)						(29,797	)
Other Assets		302,984							297,660							293,884							291,359							291,669							300,336							293,473

Total Assets	$	4,370,261						$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,352,744						$	4,231,406

LIABILITIES:
Noninterest Bearing Deposits	$	1,342,304						$	1,317,425						$	1,323,556						$	1,332,305						$	1,346,546						$	1,329,933						$	1,345,367
NOW Accounts		1,225,697		$	3,750	1.23	%		1,249,955		$	3,854	1.25	%		1,182,073		$	3,826	1.29	%		1,145,544		$	4,087	1.42	%		1,207,643		$	4,425	1.47	%		1,237,759		$	7,604	1.24	%		1,204,337		$	8,922	1.49	%
Money Market Accounts		431,774			2,340	2.17			420,059			2,187	2.11			422,615			2,526	2.38			418,625			2,694	2.56			407,387			2,752	2.72			425,949			4,527	2.14			380,489			4,737	2.50
Savings Accounts		507,950			174	0.14			507,676			176	0.14			504,859			179	0.14			512,098			180	0.14			519,374			176	0.14			507,813			350	0.14			529,374			364	0.14
Time Deposits		172,982			1,141	2.65			170,367			1,166	2.78			167,321			1,235	2.94			163,462			1,262	3.07			160,078			1,226	3.08			171,682			2,307	2.71			149,203			2,150	2.90
Total Interest Bearing Deposits		2,338,403			7,405	1.27			2,348,057			7,383	1.28			2,276,868			7,766	1.36			2,239,729			8,223	1.46			2,294,482			8,579	1.50			2,343,203			14,788	1.27			2,263,403			16,173	1.44
Total Deposits		3,680,707			7,405	0.81			3,665,482			7,383	0.82			3,600,424			7,766	0.86			3,572,034			8,223	0.92			3,641,028			8,579	0.95			3,673,136			14,788	0.81			3,608,770			16,173	0.90
Repurchase Agreements		22,557			156	2.78			29,821			164	2.23			28,018			199	2.82			27,126			221	3.24			26,999			217	3.24			26,169			320	2.47			26,362			418	3.19
Other Short-Term Borrowings		10,503			179	6.82			7,437			117	6.39			6,510			83	5.06			2,673			52	7.63			6,592			68	4.16			8,978			296	6.64			5,176			107	4.16
Subordinated Notes Payable		51,981			530	4.03			52,887			560	4.23			52,887			581	4.30			52,887			610	4.52			52,887			630	4.71			52,432			1,090	4.13			52,887			1,258	4.70
Other Long-Term Borrowings		792			5	2.41			794			11	5.68			794			11	5.57			795			11	5.55			258			3	4.31			793			16	4.04			270			6	4.56
Total Interest Bearing Liabilities		2,424,236		$	8,275	1.37	%		2,438,996		$	8,235	1.37	%		2,365,077		$	8,640	1.45	%		2,323,210		$	9,117	1.56	%		2,381,218		$	9,497	1.60	%		2,431,575		$	16,510	1.37	%		2,348,098		$	17,962	1.54	%

Other Liabilities		76,138							65,211							73,130							73,767							72,634							70,705							70,464

Total Liabilities		3,842,678							3,821,632							3,761,763							3,729,282							3,800,398							3,832,213							3,763,929
Temporary Equity		–							–							6,763							6,443							6,493							–							6,821

SHAREOWNERS’ EQUITY:		527,583							513,401							491,143							480,137							465,297							520,531							460,656

Total Liabilities, Temporary Equity and Shareowners’ Equity	$	4,370,261						$	4,335,033						$	4,259,669						$	4,215,862						$	4,272,188						$	4,352,744						$	4,231,406

Interest Rate Spread				$	43,228	3.75	%				$	41,591	3.69	%				$	41,150	3.59	%				$	40,260	3.49	%				$	39,334	3.38	%				$	84,819	3.72	%				$	77,769	3.40	%

Interest Income and Rate Earned⁽¹⁾					51,503	5.12						49,826	5.06						49,790	5.05						49,377	5.06						48,831	4.99						101,329	5.09						95,731	4.94
Interest Expense and Rate Paid⁽²⁾					8,275	0.82						8,235	0.84						8,640	0.88						9,117	0.93						9,497	0.97						16,510	0.83						17,962	0.93

Net Interest Margin				$	43,228	4.30	%				$	41,591	4.22	%				$	41,150	4.17	%				$	40,260	4.12	%				$	39,334	4.02	%				$	84,819	4.26	%				$	77,769	4.01	%

⁽¹⁾Interest and average rates are calculated on a tax-equivalent basis using a 21% Federal tax rate.
⁽²⁾Rate calculated based on average earning assets.

The MIL Network –

July 22, 2025

MIL-OSI: Old National Bancorp Reports Second Quarter 2025 Results and Names New President and COO

Source: GlobeNewswire (MIL-OSI)

EVANSVILLE, Ind., July 22, 2025 (GLOBE NEWSWIRE) —

Old National Bancorp (NASDAQ: ONB) reports 2Q25 net income applicable to common shares of $121.4 million, diluted EPS of $0.34; $190.9 million and $0.53 on an adjusted¹basis, respectively.

CEO COMMENTARY:

“Old National’s impressive second quarter results were achieved through a strong focus on the fundamentals: Growing our balance sheet, expanding our fee-based businesses, and controlling expenses,” said Chairman and CEO Jim Ryan. “Additionally, with the successful closing of our partnership with Bremer on May 1, 2025, Old National is well-positioned for the remainder of the year, benefiting from a larger balance sheet and a stronger capital position.”

“We are thrilled to welcome Tim Burke as Old National’s President and Chief Operating Officer,” said Chairman and CEO Jim Ryan. “Tim brings nearly 30 years of extensive banking expertise to this critical role. I am confident that his infectious energy, strong strategic vision, and collaborative leadership approach will ensure that Old National continues to exceed client expectations for years to come, while also working to strengthen the communities we serve.”

SECOND QUARTER HIGHLIGHTS²:

Net Income	Net income applicable to common shares of $121.4 million; adjusted net income applicable to common shares¹ of $190.9 million
Net Income	Earnings per diluted common share (“EPS”) of $0.34; adjusted EPS¹ of $0.53

Net Interest Income/NIM	Net interest income on a fully taxable equivalent basis¹ of $521.9 million
Net Interest Income/NIM	Net interest margin on a fully taxable equivalent basis¹ (“NIM”) of 3.53%, up 26 basis points (“bps”)

Operating Performance	Pre-provision net revenue¹ (“PPNR”) of $269.6 million; adjusted PPNR¹ of $289.9 million
	Noninterest expense of $384.8 million; adjusted noninterest expense¹ of $343.6 million
	Efficiency ratio¹ of 55.8%; adjusted efficiency ratio¹ of 50.2%

Deposits and Funding	Period-end total deposits of $54.4 billion, up $13.3 billion; core deposits up $11.6 billion Period-end core deposits up 0.8% annualized excluding deposits assumed from Bremer Financial Corporation (“Bremer”)
Deposits and Funding	Granular low-cost deposit franchise; total deposit costs of 193 bps, up 2 bps

Loans and Credit Quality	End-of-period total loans³ of $48.0 billion, up $11.5 billion End-of-period loans³ up 3.7% annualized excluding loans acquired from Bremer
	Provision for credit losses⁴ (“provision”) of $106.8 million; $31.2 million excluding $75.6 million of current expected credit loss (“CECL”) Day 1 non-purchased credit deteriorated (“non-PCD”) provision expense⁵
	Net charge-offs of $26.5 million, or 24 bps of average loans; 21 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
	30+ day delinquencies of 0.30% and nonaccrual loans of 1.24% of total loans

Return Profile & Capital	Return on average tangible common equity¹ (“ROATCE”) of 12.0%; adjusted ROATCE¹ of 18.1% Preliminary regulatory Tier 1 common equity to risk-weighted assets of 10.74%, down 88 bps

Notable Items	Closing of Bremer partnership on May 1, 2025 $75.6 million of pre-tax CECL Day 1 non-PCD provision expense⁵ $41.2 million of pre-tax merger-related charges $21.0 million of pre-tax pension plan gain⁶

¹Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release ²Comparisons are on a linked-quarter basis, unless otherwise noted ³Includes loans held-for-sale ⁴Includes the provision for unfunded commitments ⁵Refers to the initial increase in allowance for credit losses required on acquired non-PCD loans, including unfunded loan commitments, through the provision for credit losses ⁶Includes a gain associated with freezing benefits of the Bremer pension plan

TIM BURKE TO JOIN OLD NATIONAL AS PRESIDENT AND COO
Timothy M. Burke, Jr. will join Old National Bancorp (“Old National”) on July 22, 2025 as President and Chief Operating Officer, assuming the role previously held by Mark Sander who announced his retirement earlier this year. Mr. Burke most recently served as Executive Vice President of the Central Region and Field Enablement for the Commercial Bank for a large Midwestern super-regional bank, where he was responsible for the full range of commercial banking in 12 Midwestern markets including those in Illinois, Indiana and Michigan.

Mr. Burke’s nearly 30-year banking career has centered on serving clients and communities in the Midwest. His prior leadership experience includes roles as Northeast Ohio Market President for the same regional institution, where he was responsible for driving collaboration across all business lines including Retail, Business Banking, Commercial, Private Banking and Mortgage.

“I’m truly thrilled to join a team that’s so deeply committed to relationship banking and making a real impact on our communities,” said Burke. “Old National’s core values and mission strongly align with my personal values, positioning me well to jump into the role, take care of clients and deliver standout products and services consistently across all of our markets.”

As President and COO, Burke will be responsible for guiding the success of Old National’s Commercial, Community and Wealth segments, and Credit and Marketing teams. He and his family will reside in Evansville, Ind., and he will maintain offices in Evansville and Chicago.

RESULTS OF OPERATIONS²
Old National Bancorp reported second quarter 2025 net income applicable to common shares of $121.4 million, or $0.34 per diluted common share.

Included in second quarter results were $75.6 million of pre-tax CECL Day 1 non-PCD provision expense related to the allowance for credit losses established on acquired non-PCD loans (including unfunded loan commitments), pre-tax charges of $41.2 million for merger-related expenses, and a $21.0 million pre-tax gain associated with freezing benefits of the Bremer pension plan. Excluding these items and realized debt securities losses from the current quarter, adjusted net income¹ was $190.9 million, or $0.53 per diluted common share.

DEPOSITS AND FUNDING
Growth in core deposits driven by Bremer including public fund and business checking increases partly offset by normal seasonal outflows of retail deposits.

Period-end total deposits were $54.4 billion, up $13.3 billion; core deposits up $11.6 billion; includes $11.5 billion of period-end core deposits assumed in the Bremer transaction.
- Period-end core deposits up 0.8% annualized excluding Bremer.
On average, total deposits for the second quarter were $49.8 billion, up $9.3 billion.
Granular low-cost deposit franchise; total deposit costs of 193 bps, up 2 bps.
A loan to deposit ratio of 88%, combined with existing funding sources, provides strong liquidity.

LOANS
Loan growth driven by Bremer and strong commercial loan production; pipeline increasing.

Period-end total loans³ were $48.0 billion, up $11.5 billion; includes $11.2 billion of period end loans acquired in the Bremer transaction.
- Excluding loans³ acquired in the Bremer transaction, period-end total loans were up 3.7% annualized.
Commercial loans, excluding Bremer, grew 4.6% annualized
- Total commercial loan production in the second quarter was $2.3 billion; period-end commercial pipeline totaled $4.8 billion, up approximately 40%.
Average total loans in the second quarter were $44.1 billion, an increase of $7.8 billion.

CREDIT QUALITY
Resilient credit quality continues to be a hallmark of Old National.

Provision⁴ expense was $106.8 million; $31.2 million excluding $75.6 million of CECL Day 1 non-PCD provision expense⁵ related to the allowance for credit losses established on acquired non-PCD loans (including unfunded loan commitments) in the Bremer transaction, consistent with the prior quarter.
Net charge-offs were $26.5 million, or 24 bps of average loans, consistent with the prior quarter.
- Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 21 bps.
30+ day delinquencies as a percentage of loans were 0.30% compared to 0.22%.
Nonaccrual loans as a percentage of total loans were 1.24% compared to 1.29%.
The allowance for credit losses, including the allowance for credit losses on unfunded loan commitments, stood at $594.7 million, or 1.24% of total loans, compared to $424.0 million, or 1.16% of total loans, reflecting $75.6 million of CECL Day 1 non-PCD provision expense⁵ related to acquired non-PCD loans (including unfunded loan commitments) and $90.4 million of allowance related to acquired PCD loans.

NET INTEREST INCOME AND MARGIN
Higher reflective of larger balance sheet and higher asset yields.

Net interest income on a fully taxable equivalent basis¹ increased to $521.9 million compared to $393.0 million, driven by Bremer, loan growth, higher asset yields and more days in the quarter, partly offset by higher funding costs.
Net interest margin on a fully taxable equivalent basis¹ increased 26 bps to 3.53%.
Cost of total deposits was 1.93%, increasing 2 bps and the cost of total interest-bearing deposits increased 6 bps to 2.52%.

NONINTEREST INCOME
Increase driven by Bremer and organic growth of fee-based businesses.

Total noninterest income was $132.5 million, $111.6 million excluding a $21.0 million pre-tax gain associated with the freezing of benefits of the Bremer pension plan, compared to $93.8 million.
Excluding the pension plan gain and realized debt securities losses, noninterest income was up 18.8% driven by Bremer revenue as well as higher wealth fees, mortgage fees, and capital markets revenue.

NONINTEREST EXPENSE
Higher reflective of Bremer, disciplined expense management drives efficiency ratio lower.

Noninterest expense was $384.8 million and included $41.2 million of merger-related charges.
Excluding merger-related charges, adjusted noninterest expense¹ was $343.6 million, compared to $262.6 million, driven primarily by elevated operating costs and additional intangibles amortization, both related to the Bremer transaction.
The efficiency ratio¹ was 55.8%, while the adjusted efficiency ratio¹ was 50.2% compared to 53.7% and 51.8%, respectively.

INCOME TAXES

Income tax expense was $30.3 million, resulting in an effective tax rate of 19.5% compared to 20.3%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 24.6% compared to 22.5%.
- The effective tax rate for the second quarter of 2025 was impacted by the Bremer transaction and the first quarter of 2025 was impacted by a $1.2 million benefit for the vesting of employee stock compensation.
Income tax expense included $5.8 million of tax credit benefit compared to $5.3 million.

CAPITAL
Capital ratios remain strong.

Preliminary total risk-based capital down 109 bps to 12.59% and preliminary regulatory Tier 1 capital down 103 bps to 11.20%, as strong retained earnings were more than offset by the Bremer transaction and loan growth.
Tangible common equity to tangible assets was 7.26%, down 6.4%.

CONFERENCE CALL AND WEBCAST
Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, July 22, 2025, to review second quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 9394540. A replay of the call will also be available from approximately noon Central Time on July 22, 2025 through August 5, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 9394540.

ABOUT OLD NATIONAL
Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the fifth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $71 billion of assets and $38 billion of assets under management, Old National ranks among the top 25 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2025, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

USE OF NON-GAAP FINANCIAL MEASURES
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include CECL Day 1 non-PCD provision expense, merger-related charges associated with completed and pending acquisitions, a pension plan gain, debt securities gains/losses, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company’s underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes a pension plan gain and debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

FORWARD-LOOKING STATEMENTS
This earnings release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), Section 27A of the Securities Act of 1933 and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934 and Rule 3b-6 promulgated thereunder, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the expected cost savings, synergies and other financial benefits from the merger (the “Merger”) between Old National and Bremer not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this earnings release; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the SEC. These forward-looking statements are based on assumptions and estimates, which although believed to be reasonable, may turn out to be incorrect. Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this earnings release. You are advised to consult further disclosures we may make on related subjects in our filings with the SEC.

CONTACTS:
Media: Rick Jillson		Investors: Lynell Durchholz
(812) 465-7267		(812) 464-1366
Rick.Jillson@oldnational.com		Lynell.Durchholz@oldnational.com


Financial Highlights (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
Income Statement
Net interest income	$	514,790		$	387,643		$	394,180		$	391,724		$	388,421		$	902,433		$	744,879
FTE adjustment^1,3		7,063			5,360			5,777			6,144			6,340			12,423			12,593
Net interest income – tax equivalent basis³		521,853			393,003			399,957			397,868			394,761			914,856			757,472
Provision for credit losses		106,835			31,403			27,017			28,497			36,214			138,238			55,105
Noninterest income		132,517			93,794			95,766			94,138			87,271			226,311			164,793
Noninterest expense		384,766			268,471			276,824			272,283			282,999			653,237			545,316
Net income available to common shareholders	$	121,375		$	140,625		$	149,839		$	139,768		$	117,196		$	262,000		$	233,446
Per Common Share Data
Weighted average diluted shares		361,436			321,016			318,803			317,331			316,461			340,250			304,207
EPS, diluted	$	0.34		$	0.44		$	0.47		$	0.44		$	0.37		$	0.77		$	0.77
Cash dividends		0.14			0.14			0.14			0.14			0.14			0.28			0.28
Dividend payout ratio²		41	%		32	%		30	%		32	%		38	%		36	%		36	%
Book value	$	20.12		$	19.71		$	19.11		$	19.20		$	18.28		$	20.12		$	18.28
Stock price		21.34			21.19			21.71			18.66			17.19			21.34			17.19
Tangible book value³		12.60			12.54			11.91			11.97			11.05			12.60			11.05
Performance Ratios
ROAA		0.77	%		1.08	%		1.14	%		1.08	%		0.92	%		0.91	%		0.95	%
ROAE		6.7	%		9.1	%		9.8	%		9.4	%		8.2	%		7.8	%		8.4	%
ROATCE³		12.0	%		15.0	%		16.4	%		16.0	%		14.1	%		13.4	%		14.5	%
NIM (FTE)³		3.53	%		3.27	%		3.30	%		3.32	%		3.33	%		3.41	%		3.31	%
Efficiency ratio³		55.8	%		53.7	%		54.4	%		53.8	%		57.2	%		54.9	%		57.7	%
NCOs to average loans		0.24	%		0.24	%		0.21	%		0.19	%		0.16	%		0.24	%		0.15	%
ACL on loans to EOP loans		1.18	%		1.10	%		1.08	%		1.05	%		1.01	%		1.18	%		1.01	%
ACL⁴ to EOP loans		1.24	%		1.16	%		1.14	%		1.12	%		1.08	%		1.24	%		1.08	%
NPLs to EOP loans		1.24	%		1.29	%		1.23	%		1.22	%		0.94	%		1.24	%		0.94	%
Balance Sheet (EOP)
Total loans	$	47,902,819		$	36,413,944		$	36,285,887		$	36,400,643		$	36,150,513		$	47,902,819		$	36,150,513
Total assets		70,979,805			53,877,944			53,552,272			53,602,293			53,119,645			70,979,805			53,119,645
Total deposits		54,357,683			41,034,572			40,823,560			40,845,746			39,999,228			54,357,683			39,999,228
Total borrowed funds		7,346,098			5,447,054			5,411,537			5,449,096			6,085,204			7,346,098			6,085,204
Total shareholders’ equity		8,126,387			6,534,654			6,340,350			6,367,298			6,075,072			8,126,387			6,075,072
Capital Ratios³
Risk-based capital ratios (EOP):
Tier 1 common equity		10.74	%		11.62	%		11.38	%		11.00	%		10.73	%		10.74	%		10.73	%
Tier 1 capital		11.20	%		12.23	%		11.98	%		11.60	%		11.33	%		11.20	%		11.33	%
Total capital		12.59	%		13.68	%		13.37	%		12.94	%		12.71	%		12.59	%		12.71	%
Leverage ratio (average assets)		9.26	%		9.44	%		9.21	%		9.05	%		8.90	%		9.26	%		8.90	%
Equity to assets (averages)		11.38	%		12.01	%		11.78	%		11.60	%		11.31	%		11.66	%		11.31	%
TCE to TA		7.26	%		7.76	%		7.41	%		7.44	%		6.94	%		7.26	%		6.94	%
Nonfinancial Data
Full-time equivalent employees		5,313			4,028			4,066			4,105			4,267			5,313			4,267
Banking centers		351			280			280			280			280			351			280
¹ Calculated using the federal statutory tax rate in effect of 21% for all periods.
² Cash dividends per common share divided by net income per common share (basic).
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures. June 30, 2025 capital ratios are preliminary.
⁴ Includes the allowance for credit losses on loans and unfunded loan commitments.

FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets


Income Statement (unaudited)
($ and shares in thousands, except per share data)
	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
Interest income	$	824,961		$	630,399		$	662,082		$	679,925		$	663,663		$	1,455,360		$	1,259,644
Less: interest expense		310,171			242,756			267,902			288,201			275,242			552,927			514,765
Net interest income		514,790			387,643			394,180			391,724			388,421			902,433			744,879
Provision for credit losses		106,835			31,403			27,017			28,497			36,214			138,238			55,105
Net interest income after provision for credit losses		407,955			356,240			367,163			363,227			352,207			764,195			689,774
Wealth and investment services fees		35,817			29,648			30,012			29,117			29,358			65,465			57,662
Service charges on deposit accounts		23,878			21,156			20,577			20,350			19,350			45,034			37,248
Debit card and ATM fees		12,922			9,991			10,991			11,362			10,993			22,913			21,047
Mortgage banking revenue		10,032			6,879			7,026			7,669			7,064			16,911			11,542
Capital markets income		7,114			4,506			5,244			7,426			4,729			11,620			7,629
Company-owned life insurance		6,625			5,381			6,499			5,315			5,739			12,006			9,173
Other income		36,170			16,309			15,539			12,975			10,036			52,479			20,506
Debt securities gains (losses), net		(41	)		(76	)		(122	)		(76	)		2			(117	)		(14	)
Total noninterest income		132,517			93,794			95,766			94,138			87,271			226,311			164,793
Salaries and employee benefits		202,112			148,305			146,605			147,494			159,193			350,417			308,996
Occupancy		30,432			29,053			29,733			27,130			26,547			59,485			53,566
Equipment		12,566			8,901			9,325			9,888			8,704			21,467			17,375
Marketing		13,759			11,940			12,653			11,036			11,284			25,699			21,918
Technology		31,452			22,020			21,429			23,343			24,002			53,472			44,025
Communication		5,014			4,134			4,176			4,681			4,480			9,148			8,480
Professional fees		21,931			7,919			11,055			7,278			10,552			29,850			16,958
FDIC assessment		13,409			9,700			11,970			11,722			9,676			23,109			20,989
Amortization of intangibles		19,630			6,830			7,237			7,411			7,425			26,460			12,880
Amortization of tax credit investments		5,815			3,424			4,556			3,277			2,747			9,239			5,496
Other expense		28,646			16,245			18,085			19,023			18,389			44,891			34,633
Total noninterest expense		384,766			268,471			276,824			272,283			282,999			653,237			545,316
Income before income taxes		155,706			181,563			186,105			185,082			156,479			337,269			309,251
Income tax expense		30,298			36,904			32,232			41,280			35,250			67,202			67,738
Net income	$	125,408		$	144,659		$	153,873		$	143,802		$	121,229		$	270,067		$	241,513
Preferred dividends		(4,033	)		(4,034	)		(4,034	)		(4,034	)		(4,033	)		(8,067	)		(8,067	)
Net income applicable to common shares	$	121,375		$	140,625		$	149,839		$	139,768		$	117,196		$	262,000		$	233,446

EPS, diluted	$	0.34		$	0.44		$	0.47		$	0.44		$	0.37		$	0.77		$	0.77
Weighted Average Common Shares Outstanding
Basic		360,155			315,925			315,673			315,622			315,585			338,162			303,283
Diluted		361,436			321,016			318,803			317,331			316,461			340,250			304,207
(EOP)		391,818			319,236			318,980			318,955			318,969			391,818			318,969


End of Period Balance Sheet (unaudited)
($ in thousands)
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Assets
Cash and due from banks	$	637,556		$	486,061		$	394,450		$	498,120		$	428,665
Money market and other interest-earning investments		1,171,015			753,719			833,518			693,450			804,381
Investments:
Treasury and government-sponsored agencies		2,445,733			2,364,170			2,289,903			2,335,716			2,207,004
Mortgage-backed securities		9,632,206			6,458,023			6,175,103			6,085,826			5,890,371
States and political subdivisions		1,590,272			1,589,555			1,637,379			1,665,128			1,678,597
Other securities		852,687			755,348			781,656			783,079			775,623
Total investments		14,520,898			11,167,096			10,884,041			10,869,749			10,551,595
Loans held-for-sale, at fair value		77,618			40,424			34,483			62,376			66,126
Loans:
Commercial		14,662,916			10,650,615			10,288,560			10,408,095			10,332,631
Commercial and agriculture real estate		21,879,785			16,135,327			16,307,486			16,356,216			16,016,958
Residential real estate		8,212,242			6,771,694			6,797,586			6,757,896			6,894,957
Consumer		3,147,876			2,856,308			2,892,255			2,878,436			2,905,967
Total loans		47,902,819			36,413,944			36,285,887			36,400,643			36,150,513
Allowance for credit losses on loans		(565,109	)		(401,932	)		(392,522	)		(380,840	)		(366,335	)
Premises and equipment, net		682,539			584,664			588,970			599,528			601,945
Goodwill and other intangible assets		2,944,372			2,289,268			2,296,098			2,305,084			2,306,204
Company-owned life insurance		1,046,693			859,211			859,851			863,723			862,032
Accrued interest receivable and other assets		2,561,404			1,685,489			1,767,496			1,690,460			1,714,519
Total assets	$	70,979,805		$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645

Liabilities and Equity
Noninterest-bearing demand deposits	$	12,652,556		$	9,186,314		$	9,399,019		$	9,429,285		$	9,336,042
Interest-bearing:
Checking and NOW accounts		9,194,738			7,736,014			7,538,987			7,314,245			7,680,865
Savings accounts		5,058,819			4,715,329			4,753,279			4,781,447			4,983,811
Money market accounts		16,564,125			11,638,653			11,807,228			11,601,461			10,485,491
Other time deposits		7,613,377			6,212,898			5,819,970			6,010,070			5,688,432
Total core deposits		51,083,615			39,489,208			39,318,483			39,136,508			38,174,641
Brokered deposits		3,274,068			1,545,364			1,505,077			1,709,238			1,824,587
Total deposits		54,357,683			41,034,572			40,823,560			40,845,746			39,999,228

Federal funds purchased and interbank borrowings		340,246			170			385			135,263			250,154
Securities sold under agreements to repurchase		297,637			290,256			268,975			244,626			240,713
Federal Home Loan Bank advances		5,835,918			4,514,354			4,452,559			4,471,153			4,744,560
Other borrowings		872,297			642,274			689,618			598,054			849,777
Total borrowed funds		7,346,098			5,447,054			5,411,537			5,449,096			6,085,204
Accrued expenses and other liabilities		1,149,637			861,664			976,825			940,153			960,141
Total liabilities		62,853,418			47,343,290			47,211,922			47,234,995			47,044,573
Preferred stock, common stock, surplus, and retained earnings		8,725,995			7,183,163			7,086,393			6,971,054			6,866,480
Accumulated other comprehensive income (loss), net of tax		(599,608	)		(648,509	)		(746,043	)		(603,756	)		(791,408	)
Total shareholders’ equity		8,126,387			6,534,654			6,340,350			6,367,298			6,075,072
Total liabilities and shareholders’ equity	$	70,979,805		$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Three Months Ended							Three Months Ended							Three Months Ended
	June 30, 2025							March 31, 2025							June 30, 2024
	Average			Income¹/		Yield/		Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	1,424,700		$	14,791	4.16	%	$	791,067		$	8,815	4.52	%	$	814,944		$	11,311	5.58	%
Investments:
Treasury and government-sponsored agencies		2,396,691			20,820	3.47	%		2,318,869			20,019	3.45	%		2,208,935			21,531	3.90	%
Mortgage-backed securities		8,567,318			87,734	4.10	%		6,287,825			54,523	3.47	%		5,828,225			47,904	3.29	%
States and political subdivisions		1,596,899			13,402	3.36	%		1,610,819			13,242	3.29	%		1,686,994			14,290	3.39	%
Other securities		970,581			15,770	6.50	%		770,839			10,512	5.45	%		788,571			12,583	6.38	%
Total investments		13,531,489			137,726	4.07	%		10,988,352			98,296	3.58	%		10,512,725			96,308	3.66	%
Loans:²
Commercial		13,240,876			219,446	6.63	%		10,397,991			165,595	6.37	%		10,345,098			183,425	7.09	%
Commercial and agriculture real estate		20,022,403			316,422	6.32	%		16,213,606			245,935	6.07	%		15,870,809			260,407	6.56	%
Residential real estate loans		7,792,440			88,852	4.56	%		6,815,091			67,648	3.97	%		6,952,942			67,683	3.89	%
Consumer		3,049,341			54,787	7.21	%		2,871,213			49,470	6.99	%		2,910,331			50,869	7.03	%
Total loans		44,105,060			679,507	6.16	%		36,297,901			528,648	5.83	%		36,079,180			562,384	6.24	%

Total earning assets	$	59,061,249		$	832,024	5.64	%	$	48,077,320		$	635,759	5.30	%	$	47,406,849		$	670,003	5.66	%

Less: Allowance for credit losses on loans		(404,871	)						(398,765	)						(331,043	)

Non-earning Assets:
Cash and due from banks	$	426,513						$	372,428						$	430,256
Other assets		6,403,239							5,394,600							5,341,022

Total assets	$	65,486,130						$	53,445,583						$	52,847,084

Interest-Bearing Liabilities:
Checking and NOW accounts	$	8,594,591		$	29,291	1.37	%	$	7,526,294		$	23,850	1.29	%	$	8,189,454		$	34,398	1.69	%
Savings accounts		4,968,232			3,777	0.30	%		4,692,239			3,608	0.31	%		5,044,800			5,254	0.42	%
Money market accounts		15,055,735			110,933	2.96	%		11,664,650			88,381	3.07	%		10,728,156			102,560	3.84	%
Other time deposits		7,092,124			67,204	3.80	%		5,996,108			56,485	3.82	%		5,358,103			56,586	4.25	%
Total interest-bearing core deposits		35,710,682			211,205	2.37	%		29,879,291			172,324	2.34	%		29,320,513			198,798	2.73	%
Brokered deposits		2,530,726			28,883	4.58	%		1,546,756			18,171	4.76	%		1,244,237			17,008	5.50	%
Total interest-bearing deposits		38,241,408			240,088	2.52	%		31,426,047			190,495	2.46	%		30,564,750			215,806	2.84	%

Federal funds purchased and interbank borrowings		88,603			953	4.31	%		148,130			1,625	4.45	%		148,835			1,986	5.37	%
Securities sold under agreements to repurchase		295,948			636	0.86	%		272,961			551	0.82	%		249,939			639	1.03	%
Federal Home Loan Bank advances		6,037,462			59,042	3.92	%		4,464,590			41,896	3.81	%		4,473,978			44,643	4.01	%
Other borrowings		828,214			9,452	4.58	%		675,759			8,189	4.91	%		891,609			12,168	5.49	%
Total borrowed funds		7,250,227			70,083	3.88	%		5,561,440			52,261	3.81	%		5,764,361			59,436	4.15	%

Total interest-bearing liabilities	$	45,491,635		$	310,171	2.73	%	$	36,987,487		$	242,756	2.66	%	$	36,329,111		$	275,242	3.05	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	11,568,854						$	9,096,676						$	9,558,675
Other liabilities		973,525							944,935							980,322
Shareholders’ equity		7,452,116							6,416,485							5,978,976

Total liabilities and shareholders’ equity	$	65,486,130						$	53,445,583						$	52,847,084

Net interest rate spread						2.91	%						2.64	%						2.61	%

Net interest margin (GAAP)						3.49	%						3.23	%						3.28	%

Net interest margin (FTE)³						3.53	%						3.27	%						3.33	%

FTE adjustment				$	7,063						$	5,360						$	6,340

¹ Interest income is reflected on a FTE basis.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Average Balance Sheet and Interest Rates (unaudited)
($ in thousands)


	Six Months Ended							Six Months Ended
	June 30, 2025							June 30, 2024
	Average			Income¹/		Yield/		Average			Income¹/		Yield/
Earning Assets:	Balance			Expense		Rate		Balance			Expense		Rate
Money market and other interest-earning investments	$	1,109,634		$	23,606	4.29	%	$	786,094		$	21,296	5.45	%
Investments:
Treasury and government-sponsored agencies		2,357,995			40,839	3.46	%		2,285,706			44,797	3.92	%
Mortgage-backed securities		7,433,868			142,257	3.83	%		5,592,655			86,792	3.10	%
States and political subdivisions		1,603,821			26,644	3.32	%		1,683,585			28,266	3.36	%
Other securities		871,262			26,282	6.03	%		779,504			24,756	6.35	%
Total investments	$	12,266,946		$	236,022	3.85	%	$	10,341,450		$	184,611	3.57	%
Loans:²
Commercial		11,827,287			385,041	6.51	%		9,942,741			350,688	7.05	%
Commercial and agriculture real estate		18,128,526			562,357	6.20	%		15,119,590			490,493	6.49	%
Residential real estate loans		7,306,465			156,500	4.28	%		6,823,378			130,686	3.83	%
Consumer		2,960,769			104,257	7.10	%		2,777,711			94,463	6.84	%
Total loans		40,223,047			1,208,155	6.01	%		34,663,420			1,066,330	6.16	%

Total earning assets	$	53,599,627		$	1,467,783	5.48	%	$	45,790,964		$	1,272,237	5.56	%

Less: Allowance for credit losses on loans		(401,835	)						(322,256	)

Non-earning Assets:
Cash and due from banks	$	399,620						$	396,466
Other assets		5,901,705							5,151,308

Total assets	$	59,499,117						$	51,016,482

Interest-Bearing Liabilities:
Checking and NOW accounts	$	8,063,393		$	53,141	1.33	%	$	7,665,327		$	59,650	1.56	%
Savings accounts		4,830,998			7,385	0.31	%		5,035,100			10,271	0.41	%
Money market accounts		13,369,560			199,314	3.01	%		10,322,808			196,773	3.83	%
Other time deposits		6,547,143			123,689	3.81	%		5,023,620			104,018	4.16	%
Total interest-bearing core deposits		32,811,094			383,529	2.36	%		28,046,855			370,712	2.66	%
Brokered deposits		2,041,459			47,054	4.65	%		1,145,744			30,533	5.36	%
Total interest-bearing deposits		34,852,553			430,583	2.49	%		29,192,599			401,245	2.76	%

Federal funds purchased and interbank borrowings		118,202			2,578	4.40	%		108,962			2,947	5.44	%
Securities sold under agreements to repurchase		284,518			1,187	0.84	%		273,088			1,556	1.15	%
Federal Home Loan Bank advances		5,255,372			100,938	3.87	%		4,430,236			85,810	3.90	%
Other borrowings		752,408			17,641	4.73	%		858,727			23,207	5.43	%
Total borrowed funds		6,410,500			122,344	3.85	%		5,671,013			113,520	4.03	%

Total interest-bearing liabilities		41,263,053			552,927	2.70	%		34,863,612			514,765	2.97	%

Noninterest-Bearing Liabilities and Shareholders’ Equity
Demand deposits	$	10,339,594						$	9,408,406
Other liabilities		959,309							972,205
Shareholders’ equity		6,937,161							5,772,259

Total liabilities and shareholders’ equity	$	59,499,117						$	51,016,482

Net interest rate spread						2.78	%						2.59	%

Net interest margin (GAAP)						3.37	%						3.25	%

Net interest margin (FTE)³						3.41	%						3.31	%

FTE adjustment				$	12,423						$	12,593

¹ Interest income is reflected on a FTE.
² Includes loans held-for-sale.
³ Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.


Asset Quality (EOP) (unaudited)
($ in thousands)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
Allowance for credit losses:
Beginning allowance for credit losses on loans	$	401,932		$	392,522		$	380,840		$	366,335		$	319,713		$	392,522		$	307,610
Allowance established for acquired PCD loans		90,442			—			—			2,803			23,922			90,442			23,922
Provision for credit losses on loans		99,263			31,026			30,417			29,176			36,745			130,289			60,598
Gross charge-offs		(29,954	)		(24,540	)		(21,278	)		(18,965	)		(17,041	)		(54,494	)		(31,061	)
Gross recoveries		3,426			2,924			2,543			1,491			2,996			6,350			5,266
NCOs		(26,528	)		(21,616	)		(18,735	)		(17,474	)		(14,045	)		(48,144	)		(25,795	)
Ending allowance for credit losses on loans	$	565,109		$	401,932		$	392,522		$	380,840		$	366,335		$	565,109		$	366,335
Beginning allowance for credit losses on unfunded commitments	$	22,031		$	21,654		$	25,054		$	25,733		$	26,264		$	21,654		$	31,226
Provision (release) for credit losses on unfunded commitments		7,572			377			(3,400	)		(679	)		(531	)		7,949			(5,493	)
Ending allowance for credit losses on unfunded commitments	$	29,603		$	22,031		$	21,654		$	25,054		$	25,733		$	29,603		$	25,733
Allowance for credit losses	$	594,712		$	423,963		$	414,176		$	405,894		$	392,068		$	594,712		$	392,068
Provision for credit losses on loans	$	99,263		$	31,026		$	30,417		$	29,176		$	36,745		$	130,289		$	60,598
Provision (release) for credit losses on unfunded commitments		7,572			377			(3,400	)		(679	)		(531	)		7,949			(5,493	)
Provision for credit losses	$	106,835		$	31,403		$	27,017		$	28,497		$	36,214		$	138,238		$	55,105
NCOs / average loans¹		0.24	%		0.24	%		0.21	%		0.19	%		0.16	%		0.24	%		0.15	%
Average loans¹	$	44,075,472		$	36,284,059		$	36,410,414		$	36,299,544		$	36,053,845		$	40,201,289		$	34,648,292
EOP loans¹		47,902,819			36,413,944			36,285,887			36,400,643			36,150,513			47,902,819			36,150,513
ACL on loans / EOP loans¹		1.18	%		1.10	%		1.08	%		1.05	%		1.01	%		1.18	%		1.01	%
ACL / EOP loans¹		1.24	%		1.16	%		1.14	%		1.12	%		1.08	%		1.24	%		1.08	%
Underperforming Assets:
Loans 90 days and over (still accruing)	$	16,893		$	6,757		$	4,060		$	1,177		$	5,251		$	16,893		$	5,251
Nonaccrual loans		594,709			469,211			447,979			443,597			340,181			594,709			340,181
Foreclosed assets		7,986			6,301			4,294			4,077			8,290			7,986			8,290
Total underperforming assets	$	619,588		$	482,269		$	456,333		$	448,851		$	353,722		$	619,588		$	353,722
Classified and Criticized Assets:
Nonaccrual loans	$	594,709		$	469,211		$	447,979		$	443,597		$	340,181		$	594,709		$	340,181
Substandard loans (still accruing)		1,969,260			1,479,630			1,073,413			1,074,243			841,087			1,969,260			841,087
Loans 90 days and over (still accruing)		16,893			6,757			4,060			1,177			5,251			16,893			5,251
Total classified loans – “problem loans”		2,580,862			1,955,598			1,525,452			1,519,017			1,186,519			2,580,862			1,186,519
Other classified assets		43,495			53,239			58,954			59,485			60,772			43,495			60,772
Special Mention		1,008,716			828,314			908,630			837,543			967,655			1,008,716			967,655
Total classified and criticized assets	$	3,633,073		$	2,837,151		$	2,493,036		$	2,416,045		$	2,214,946		$	3,633,073		$	2,214,946
Loans 30-89 days past due (still accruing)	$	128,771		$	72,517		$	93,141		$	91,750		$	51,712		$	128,771		$	51,712
Nonaccrual loans / EOP loans¹		1.24	%		1.29	%		1.23	%		1.22	%		0.94	%		1.24	%		0.94	%
ACL / nonaccrual loans		100	%		90	%		92	%		92	%		115	%		100	%		115	%
Under-performing assets/EOP loans¹		1.29	%		1.32	%		1.26	%		1.23	%		0.98	%		1.29	%		0.98	%
Under-performing assets/EOP assets		0.87	%		0.90	%		0.85	%		0.84	%		0.67	%		0.87	%		0.67	%
30+ day delinquencies/EOP loans¹		0.30	%		0.22	%		0.27	%		0.26	%		0.16	%		0.30	%		0.16	%

¹ Excludes loans held-for-sale.


Non-GAAP Measures (unaudited)
($ and shares in thousands, except per share data)

	Three Months Ended																Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,				June 30,			June 30,
		2025			2025			2024			2024			2024				2025			2024
Earnings Per Share:
Net income applicable to common shares	$	121,375		$	140,625		$	149,839		$	139,768		$	117,196			$	262,000		$	233,446
Adjustments:
CECL Day 1 non-PCD provision expense		75,604			—			—			—			15,312				75,604			15,312
Tax effect¹		(20,802	)		—			—			—			(3,476	)			(20,802	)		(3,476	)
CECL Day 1 non-PCD provision expense, net		54,802			—			—			—			11,836				54,802			11,836
Merger-related charges		41,206			5,856			8,117			6,860			19,440				47,062			22,348
Tax effect¹		(11,337	)		(1,089	)		(2,058	)		(1,528	)		(4,413	)			(12,426	)		(5,123	)
Merger-related charges, net		29,869			4,767			6,059			5,332			15,027				34,636			17,225
Pension plan gain		(21,001	)		—			—			—			—				(21,001	)		—
Tax effect¹		5,778			—			—			—			—				5,778			—
Pension plan gain, net		(15,223	)		—			—			—			—				(15,223	)		—
Debt securities (gains) losses		41			76			122			76			(2	)			117			14
Tax effect¹		(11	)		(14	)		(31	)		(17	)		1				(25	)		(3	)
Debt securities (gains) losses, net		30			62			91			59			(1	)			92			11
Separation expense		—			—			—			2,646			—				—			—
Tax effect¹		—			—			—			(589	)		—				—			—
Separation expense, net		—			—			—			2,057			—				—			—
Distribution of excess pension assets		—			—			—			—			—		—		—			13,318
Tax effect¹		—			—			—			—			—		—		—			(3,250	)
Distribution excess pension assets, net		—			—			—			—			—				—			10,068
FDIC special assessment		—			—			—			—			—				—			2,994
Tax effect¹		—			—			—			—			—				—			(731	)
FDIC special assessment, net		—			—			—			—			—				—			2,263
Total adjustments, net		69,478			4,829			6,150			7,448			26,862				74,307			41,403
Net income applicable to common shares, adjusted	$	190,853		$	145,454		$	155,989		$	147,216		$	144,058			$	336,307		$	274,849
Weighted average diluted common shares outstanding		361,436			321,016			318,803			317,331			316,461				340,250			304,207
EPS, diluted	$	0.34		$	0.44		$	0.47		$	0.44		$	0.37			$	0.77		$	0.77
Adjusted EPS, diluted	$	0.53		$	0.45		$	0.49		$	0.46		$	0.46			$	0.99		$	0.90
NIM:
Net interest income	$	514,790		$	387,643		$	394,180		$	391,724		$	388,421			$	902,433		$	744,879
Add: FTE adjustment²		7,063			5,360			5,777			6,144			6,340				12,423			12,593
Net interest income (FTE)	$	521,853		$	393,003		$	399,957		$	397,868		$	394,761			$	914,856		$	757,472
Average earning assets	$	59,061,249		$	48,077,320		$	48,411,803		$	47,905,463		$	47,406,849			$	53,599,627		$	45,790,964
NIM (GAAP)		3.49	%		3.23	%		3.26	%		3.27	%		3.28	%			3.37	%		3.25	%
NIM (FTE)		3.53	%		3.27	%		3.30	%		3.32	%		3.33	%			3.41	%		3.31	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
PPNR:
Net interest income (FTE)²	$	521,853		$	393,003		$	399,957		$	397,868		$	394,761		$	914,856		$	757,472
Add: Noninterest income		132,517			93,794			95,766			94,138			87,271			226,311			164,793
Total revenue (FTE)		654,370			486,797			495,723			492,006			482,032			1,141,167			922,265
Less: Noninterest expense		(384,766	)		(268,471	)		(276,824	)		(272,283	)		(282,999	)		(653,237	)		(545,316	)
PPNR	$	269,604		$	218,326		$	218,899		$	219,723		$	199,033		$	487,930		$	376,949
Adjustments:
Pension plan termination gain	$	(21,001	)	$	—		$	—		$	—		$	—		$	(21,001	)	$	—
Debt securities (gains) losses	$	41		$	76		$	122		$	76		$	(2	)	$	117		$	14
Noninterest income adjustments		(20,960	)		76			122			76			(2	)		(20,884	)		14
Adjusted noninterest income		111,557			93,870			95,888			94,214			87,269			205,427			164,807
Adjusted revenue	$	633,410		$	486,873		$	495,845		$	492,082		$	482,030		$	1,120,283		$	922,279
Adjustments:
Merger-related charges	$	41,206		$	5,856		$	8,117		$	6,860		$	19,440		$	47,062		$	22,348
Separation expense		—			—			—			2,646			—			—			—
Distribution of excess pension assets		—			—			—			—			—			—			13,318
FDIC Special Assessment		—			—			—			—			—			—			2,994
Noninterest expense adjustments		41,206			5,856			8,117			9,506			19,440			47,062			38,660
Adjusted total noninterest expense		(343,560	)		(262,615	)		(268,707	)		(262,777	)		(263,559	)		(606,175	)		(506,656	)
Adjusted PPNR	$	289,850		$	224,258		$	227,138		$	229,305		$	218,471		$	514,108		$	415,623
Efficiency Ratio:
Noninterest expense	$	384,766		$	268,471		$	276,824		$	272,283		$	282,999		$	653,237		$	545,316
Less: Amortization of intangibles		(19,630	)		(6,830	)		(7,237	)		(7,411	)		(7,425	)		(26,460	)		(12,880	)
Noninterest expense, excl. amortization of intangibles		365,136			261,641			269,587			264,872			275,574			626,777			532,436
Less: Amortization of tax credit investments		(5,815	)		(3,424	)		(4,556	)		(3,277	)		(2,747	)		(9,239	)		(5,496	)
Less: Noninterest expense adjustments		(41,206	)		(5,856	)		(8,117	)		(9,506	)		(19,440	)		(47,062	)		(38,660	)
Adjusted noninterest expense, excluding amortization	$	318,115		$	252,361		$	256,914		$	252,089		$	253,387		$	570,476		$	488,280
Total revenue (FTE)²	$	654,370		$	486,797		$	495,723		$	492,006		$	482,032		$	1,141,167		$	922,265
Less: Debt securities (gains) losses		41			76			122			76			(2	)		117			14
Less: Pension plan gain		(21,001	)		—			—			—			—			(21,001	)		—
Total adjusted revenue	$	633,410		$	486,873		$	495,845		$	492,082		$	482,030		$	1,120,283		$	922,279
Efficiency Ratio		55.8	%		53.7	%		54.4	%		53.8	%		57.2	%		54.9	%		57.7	%
Adjusted Efficiency Ratio		50.2	%		51.8	%		51.8	%		51.2	%		52.6	%		50.9	%		52.9	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		2025			2025			2024			2024			2024			2025			2024
ROAE and ROATCE:
Net income applicable to common shares	$	121,375		$	140,625		$	149,839		$	139,768		$	117,196		$	262,000		$	233,446
Amortization of intangibles		19,630			6,830			7,237			7,411			7,425			26,460			12,880
Tax effect¹		(4,908	)		(1,708	)		(1,809	)		(1,853	)		(1,856	)		(6,615	)		(3,220	)
Amortization of intangibles, net		14,722			5,122			5,428			5,558			5,569			19,845			9,660
Net income applicable to common shares, excluding intangibles amortization		136,097			145,747			155,267			145,326			122,765			281,845			243,106
Total adjustments, net (see pg.12)		69,478			4,829			6,150			7,448			26,862			74,307			41,403
Adjusted net income applicable to common shares, excluding intangibles amortization	$	205,575		$	150,576		$	161,417		$	152,774		$	149,627		$	356,152		$	284,509
Average shareholders’ equity	$	7,452,116		$	6,416,485		$	6,338,953		$	6,190,071		$	5,978,976		$	6,937,161		$	5,772,259
Less: Average preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Average shareholders’ common equity	$	7,208,397		$	6,172,766		$	6,095,234		$	5,946,352		$	5,735,257		$	6,693,442		$	5,528,540
Average goodwill and other intangible assets		(2,670,710	)		(2,292,526	)		(2,301,177	)		(2,304,597	)		(2,245,405	)		(2,482,663	)		(2,171,872	)
Average tangible shareholder’s common equity	$	4,537,687		$	3,880,240		$	3,794,057		$	3,641,755		$	3,489,852		$	4,210,779		$	3,356,668
ROAE		6.7	%		9.1	%		9.8	%		9.4	%		8.2	%		7.8	%		8.4	%
ROAE, adjusted		10.6	%		9.4	%		10.2	%		9.9	%		10.0	%		10.0	%		9.9	%
ROATCE		12.0	%		15.0	%		16.4	%		16.0	%		14.1	%		13.4	%		14.5	%
ROATCE, adjusted		18.1	%		15.5	%		17.0	%		16.8	%		17.1	%		16.9	%		17.0	%

Refer to last page of Non-GAAP reconciliations for footnotes.


Non-GAAP Measures (unaudited)
($ in thousands)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Tangible Common Equity:
Shareholders’ equity	$	8,126,387		$	6,534,654		$	6,340,350		$	6,367,298		$	6,075,072
Less: Preferred equity		(243,719	)		(243,719	)		(243,719	)		(243,719	)		(243,719	)
Shareholders’ common equity	$	7,882,668		$	6,290,935		$	6,096,631		$	6,123,579		$	5,831,353
Less: Goodwill and other intangible assets		(2,944,372	)		(2,289,268	)		(2,296,098	)		(2,305,084	)		(2,306,204	)
Tangible shareholders’ common equity	$	4,938,296		$	4,001,667		$	3,800,533		$	3,818,495		$	3,525,149

Total assets	$	70,979,805		$	53,877,944		$	53,552,272		$	53,602,293		$	53,119,645
Less: Goodwill and other intangible assets		(2,944,372	)		(2,289,268	)		(2,296,098	)		(2,305,084	)		(2,306,204	)
Tangible assets	$	68,035,433		$	51,588,676		$	51,256,174		$	51,297,209		$	50,813,441

Risk-weighted assets³	$	52,517,871		$	40,266,670		$	40,314,805		$	40,584,608		$	40,627,117

Tangible common equity to tangible assets		7.26	%		7.76	%		7.41	%		7.44	%		6.94	%
Tangible common equity to risk-weighted assets³		9.40	%		9.94	%		9.43	%		9.41	%		8.68	%
Tangible Common Book Value:
Common shares outstanding		391,818			319,236			318,980			318,955			318,969
Tangible common book value	$	12.60		$	12.54		$	11.91		$	11.97		$	11.05

¹ Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
² Calculated using the federal statutory tax rate in effect of 21% for all periods.
³ June 30, 2025 figures are preliminary.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1e11c9d1-b9ea-4a5c-a250-cb6dc83091a5

The MIL Network –

July 22, 2025

MIL-OSI Africa: SA to launch Pandemic Fund to strengthen health preparedness

Source: Government of South Africa

A mechanism set to support pandemic preparedness in low- and middle-income countries is set to be launched later this week.

The Department of Health, in collaboration with the World Health Organisation (WHO), the Food and Agriculture Organisation (FAO), and the United Nations Children’s Fund (UNICEF), will officially launch the Pandemic Fund.

As the project lead for this initiative, the Department of Health aims to strengthen South Africa’s capacity to prevent, prepare for, and respond to future pandemics.

According to the joint statement, the launch, scheduled for Thursday in Pretoria, represents a significant milestone in global health security efforts.

The Pandemic Fund, hosted by the World Bank, is a global financing mechanism that provides catalytic funding to support pandemic preparedness and response in low- and middle-income countries.

“South Africa’s engagement through this project reinforces its leadership and commitment to advancing health system resilience,” the statement read.

The launch will feature keynote remarks from national and international leaders, the unveiling of South Africa’s Pandemic Fund implementation strategy, a panel discussion on pandemic preparedness, and opportunities for media engagement and networking with key stakeholders.

The gathering will feature senior officials from various departments, including Health, Agriculture, Land Reform, and Rural Development, as well as Forestry, Fisheries, and the Environment.

Representatives from the WHO, UNICEF, FAO, the Pandemic Fund Secretariat, development partners, civil society organisations, and the media will also be present. – SAnews.gov.za

MIL OSI Africa –

July 22, 2025

MIL-OSI United Kingdom: The MHRA and the global flu vaccine: How the UK is helping shape the world’s flu vaccine

Source: United Kingdom – Government Statements

News story

The MHRA and the global flu vaccine: How the UK is helping shape the world’s flu vaccine

Ensuring the seasonal flu vaccine is ready, safe and effective involves months of international planning, testing and collaboration

Each year, millions of people across the globe catch influenza, commonly known as the flu. While many recover quickly, flu can be deadly, particularly for older adults, young children, and those with weakened immune systems. In the UK alone, seasonal flu can cause thousands of deaths in a bad year. This is why having an effective and up-to-date flu vaccine is crucial.

Millions of people around the world prepare for seasonal influenza by getting vaccinated. It’s something many of us take for granted – a quick injection at the GP or pharmacy. But behind the scenes, ensuring that vaccine is ready, safe, and effective involves months of international planning, testing, and collaboration.

At the heart of that global effort is the Medicines and Healthcare products Regulatory Agency (MHRA) – the UK’s regulator for medicines and medical devices. The MHRA’s role goes far beyond approving medicines for the UK. It also leads on the international stage by hosting the MHRA Global Influenza Meeting, a key event that helps guide the development and delivery of the world’s flu vaccines.

Why the flu vaccine needs updating every year

Unlike some viruses, like measles, the influenza virus constantly changes and evolves. This means that last year’s vaccine may not protect against this year’s strains. Each year, scientists and regulators across the world work together to track the latest strains of the virus and decide which ones should be included in the next season’s vaccine.

The World Health Organization (WHO) leads this process through a network of research centres and laboratories known as Global Influenza Surveillance and Response System. However, transforming that scientific research and development into safe, effective, and timely licensed vaccines involves regulators. The MHRA plays a key role in both aspects.

A meeting 20 years in the making

This year marks the 40th MHRA influenza meeting, held twice a year for the past 20 years. This year, it was held last week. What began as a European-focused gathering has grown into a major global event, drawing together public health experts, scientists, manufacturers, and regulators from across the world.

As Dr Othmar Engelhardt, the MHRA’s Head of Seasonal Influenza and organiser of the meetings, explains, the MHRA provides “a well-established venue for discussions within the community, bringing together everyone involved in the process of producing and delivering the vaccine after the strains relevant to a particular season are recommended by the WHO strain selection committee.”

What happens at the meeting?

The aim of the meeting is to ensure that all players have the information they need to ensure that the provision of the annual flu vaccine is the best it can be – delivered on time, with as few hurdles as possible. It’s a forum to share science, streamline processes, and keep the world prepared.

Topics covered are wide-ranging, including:

Update on influenza in the world: Which flu viruses are circulating globally, and which are most likely to pose a threat in the coming season?
Reagents and standards: What laboratory materials are available for testing and manufacturing? How can the community help speed up access to these materials?
Vaccine production updates: How ready are manufacturers for the upcoming flu season following the WHO strain recommendation, and what’s needed to smooth the supply chain?

Importantly, there is also a focus on zoonotic influenza – flu viruses that jump from animals, such as birds or pigs, to humans. These have the potential to spark the next influenza pandemic, so surveillance and preparation of potential vaccine candidates are essential.

The disappearance of B/Yamagata

One notable scientific development in recent years is the apparent disappearance of the B/Yamagata flu lineage since the COVID-19 pandemic. Previously, flu vaccines were quadrivalent, meaning that they contained four virus components (two A types and two B types). Now, many have moved to a trivalent vaccine, with only three components – a shift that required regulatory review and approval.

Special topics: new vaccines and testing methods

Day three of the meeting was dedicated to a special topic, namely a workshop on new vaccine platforms and targets for influenza. As technology evolves, researchers are exploring faster and potentially more effective ways to develop, test and produce vaccines – including using mRNA technology and exploring universal flu vaccines (i.e. a vaccine against most flu strains -which would not have to be changed between seasons).

Another key area is vaccine potency (i.e. dose) testing. The current gold-standard method, called Single Radial Immunodiffusion (SRD), was developed in the 1970s by the National Institute for Biological Standards and Control (NIBSC), now part of the MHRA. Though still recommended by the WHO, researchers are now working on faster and more flexible alternatives, supported by a working group that reports back into the MHRA meeting.

The 40th meeting also featured reflections from former NIBSC/MHRA staff who were key contributors to SRD methodology, underscoring the UK’s longstanding leadership in this space.

MHRA’s international role

As one of the four WHO Essential Regulatory Laboratories (ERLs) – alongside labs in the US, Japan, and Australia – the MHRA plays a unique role. Its Influenza Resource Centre (IRC) helps develop candidate vaccine viruses (CVVs), ships CVVs and reagents around the world, contributes scientific expertise to vaccine strain selection, prepares biological standards and reagents for use in vaccine manufacture and testing, and our regulatory colleagues advise on the global regulatory process.

This role also places the MHRA at the forefront of pandemic preparedness, including contributing to the WHO’s Pandemic Influenza Vaccine Preparedness framework. This involves all the above. staying alert to emerging zoonotic threats and ensuring the global community is ready to respond.

A diverse and united audience

What makes the MHRA Global Influenza Meeting especially valuable is its diversity. It brings together the WHO, regulators, researchers and manufacturers in one open forum. In a field as complex and fast-moving as influenza, open communication is vital.

As Othmar noted, “The flu field can be difficult because the viruses change all the time, meaning that the vaccines have to change as well.” The meeting provides a rare opportunity for all the key players to align their goals, share progress, and prepare together.

Why it matters to the UK and the world

Ultimately, the MHRA’s role in facilitating this global collaboration helps ensure that flu vaccines are timely, safe, and effective, not just in the UK but across the world. From setting scientific standards to hosting crucial conversations, the MHRA continues to play a central role in protecting global health.

For us in the UK, this means protection each winter. For the global community, it means stronger defences against one of the world’s most common infectious threats.

So next time you’re offered a flu vaccination, remember that behind that quick appointment lies a year of global planning, science, and collaboration – with a lot of this happening right here in the UK.

Published 22 July 2025

MIL OSI United Kingdom –

July 22, 2025

MIL-Evening Report: COVID, flu, RSV: how these common viruses are tracking this winter – and how to protect yourself

Source: The Conversation (Au and NZ) – By Adrian Esterman, Professor of Biostatistics and Epidemiology, University of South Australia

nimis69/Getty Images

Winter is here, and with it come higher rates of respiratory illnesses. If you’ve been struck down recently with a sore throat, runny nose and a cough, or perhaps even a fever, you’re not alone.

Last week, non-urgent surgeries were paused in several Queensland hospitals due to a surge of influenza and COVID cases filling up hospital beds.

Meanwhile, more than 200 aged care facilities around Australia are reportedly facing COVID outbreaks.

So, just how bad are respiratory infections this year, and which viruses are causing the biggest problems?

COVID

Until May, COVID case numbers were about half last year’s level, but June’s 32,348 notifications are closing the gap (compared with 45,634 in June 2024). That said, we know far fewer people test now than they did earlier in the pandemic, so these numbers are likely to be an underestimate.

According to the latest Australian Respiratory Surveillance Report, Australia now appears to be emerging from a winter wave of COVID cases driven largely by the NB.1.8.1 subvariant, known as “Nimbus”.

Besides classic cold-like symptoms, this Omicron offshoot can reportedly cause particularly painful sore throats as well as gastrointestinal symptoms such as nausea and diarrhoea.

While some people who catch COVID have no symptoms or just mild ones, for many people the virus can be serious. Older adults and those with chronic health issues remain at greatest risk of experiencing severe illness and dying from COVID.

Some 138 aged care residents have died from COVID since the beginning of June.

The COVID booster currently available is based on the JN.1 subvariant. Nimbus is a direct descendant of JN.1 – as is another subvariant in circulation, XFG or “Stratus” – which means the vaccine should remain effective against current variants.

Free boosters are available to most people annually, while those aged 75 and older are advised to get one every six months.

Vaccination, as well as early treatment with antivirals, lowers the risk of severe illness and long COVID. People aged 70 and older, as well as younger people with certain risk factors, are eligible for antivirals if they test positive.

Influenza

The 2025 flu season has been unusually severe. From January to May, total case numbers were 30% higher than last year, increasing pressure on health systems.

More recent case numbers seem to be trending lower than 2024, however we don’t appear to have reached the peak yet.

Flu symptoms are generally more severe than the common cold and may include high fever, chills, muscle aches, fatigue, sore throat and a runny or blocked nose.

Most people recover in under a week, but the flu can be more severe (and even fatal) in groups including older people, young children and pregnant women.

An annual vaccination is available for free to children aged 6 months to 4 years, pregnant women, those aged 65+, and other higher-risk groups.

Queensland and Western Australia provide a free flu vaccine for all people aged 6 months and older, but in other states and territories, people not eligible for a free vaccine can pay (usually A$30 or less) to receive one.

RSV

The third significant respiratory virus, respiratory syncytial virus (RSV), only became a notifiable disease in 2021 (before this doctors didn’t need to record infections, meaning data is sparse).

Last year saw Australia’s highest case numbers since RSV reporting began. By May, cases in 2025 were lower than 2024, but by June, they had caught up: 27,243 cases this June versus 26,596 in June 2024. However it looks as though we may have just passed the peak.

RSV’s symptoms are usually mild and cold-like, but it can cause serious illness such as bronchiolitis and pneumonia. Infants, older people, and people with chronic health conditions are among those at highest risk. In young children, RSV is a leading cause of hospitalisation.

A free vaccine is now available for pregnant women, protecting infants for up to six months. A monoclonal antibody (different to a vaccine but also given as an injection) is also available for at-risk children up to age two, especially if their mothers didn’t receive the RSV vaccine during pregnancy.

For older adults, two RSV vaccines (Arexvy and Abrysvo) are available, with a single dose recommended for everyone aged 75+, those over 60 at higher risk due to medical conditions, and all Aboriginal and Torres Strait Islander people aged 60+.

Unfortunately, these are not currently subsidised and cost about $300. Protection lasts at least three years.

The common cold

While viruses including COVID, RSV and influenza dominate headlines, we often overlook one of the most widespread – the common cold.

The common cold can be caused by more than 200 different viruses – mainly rhinoviruses but also some coronaviruses, adenoviruses and enteroviruses.

Typical symptoms include a runny or blocked nose, sore throat, coughing, sneezing, headache, tiredness and sometimes a mild fever.

Children get about 6–8 colds per year while adults average 2–4, and symptoms usually resolve in a week. Most recover with rest, fluids, and possibly over-the-counter medications.

Because so many different viruses cause the common cold, and because these constantly mutate, developing a vaccine has been extremely challenging. Researchers continue to explore solutions, but a universal cold vaccine remains elusive.

How do I protect myself and others?

The precautions we learned during the COVID pandemic remain valid. These are all airborne viruses which can be spread by coughing, sneezing and touching contaminated surfaces.

Practise good hygiene, teach children proper cough etiquette, wear a high-quality mask if you’re at high risk, and stay home to rest if unwell.

You can now buy rapid antigen tests (called panel tests) that test for influenza (A or B), COVID and RSV. So, if you’re unwell with a respiratory infection, consider testing yourself at home.

While many winter lurgies can be trivial, this is not always the case. We can all do our bit to reduce the impact.

Adrian Esterman receives funding from the Medical Research Future Fund.

– ref. COVID, flu, RSV: how these common viruses are tracking this winter – and how to protect yourself – https://theconversation.com/covid-flu-rsv-how-these-common-viruses-are-tracking-this-winter-and-how-to-protect-yourself-261383

MIL OSI Analysis – EveningReport.nz –

July 22, 2025

IMF’s Gita Gopinath to step down in August, return to Harvard University

Source: Government of India

Source: Government of India (4)

Gita Gopinath, the No. 2 official at the International Monetary Fund, will leave her post at the end of August to return to Harvard University, the IMF said in a statement on Monday.

IMF Managing Director Kristalina Georgieva will name a successor to Gopinath in “due course,” the IMF said.

Gopinath joined the fund in 2019 as chief economist – the first woman to serve in that role – and was promoted to first deputy managing director in January 2022.

No comment was immediately available from the U.S. Treasury, which manages the dominant U.S. shareholding in the IMF. While European countries have traditionally chosen the Fund’s managing director, the U.S. Treasury has traditionally recommended candidates for the first deputy managing director role.

Gopinath is an Indian-born U.S. citizen.

The timing of the move caught some IMF insiders by surprise, and appears to have been initiated by Gopinath.

Gopinath, who had left Harvard to join the IMF, will return to the university as a professor of economics.

Gopinath’s departure will offer Treasury a chance to recommend a successor at a time when U.S. President Donald Trump is seeking to restructure the global economy and end longstanding U.S. trade deficits with high tariffs on imports from nearly all countries.

She will return to a university that has been in the Trump administration’s crosshairs after it rejected demands to change its governance, hiring, and admissions practices.

Georgieva said Gopinath joined the IMF as a highly respected academic and proved to be an “exceptional intellectual leader” during her time, which included the pandemic and global shocks caused by Russia’s invasion of Ukraine.

“Gita steered the Fund’s analytical and policy work with clarity, striving for the highest standards of rigorous analysis at a complex time of high uncertainty and rapidly changing global economic environment,” Georgieva said.

Gopinath has also overseen the fund’s multilateral surveillance and analytical work on fiscal and monetary policy, debt, and international trade.

Gopinath said she was grateful for a “once in a lifetime opportunity” to work at the IMF, thanking both Georgieva and the previous IMF chief, Christine Lagarde, who appointed her as chief economist.

“I now return to my roots in academia, where I look forward to continuing to push the research frontier in international finance and macroeconomics to address global challenges, and to training the next generation of economists,” she said in a statement.

(Reuters)