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MIL-OSI: FinWise Bancorp Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

– Loan Originations of $1.3 Billion –

– Net Income of $3.2 Million –

– Diluted Earnings Per Share of $0.23 –

MURRAY, Utah, April 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

Loan originations totaled $1.3 billion, compared to $1.3 billion for the quarter ended December 31, 2024, and $1.1 billion for the first quarter of the prior year
Net interest income was $14.3 million, compared to $15.5 million for the quarter ended December 31, 2024, and $14.0 million for the first quarter of the prior year
Net income was $3.2 million, compared to $2.8 million for the quarter ended December 31, 2024, and $3.3 million for the first quarter of the prior year
Diluted earnings per share (“EPS”) were $0.23 for the quarter, compared to $0.20 for the quarter ended December 31, 2024, and $0.25 for the first quarter of the prior year
Efficiency ratio¹ was 64.8%, compared to 64.2% for the quarter ended December 31, 2024, and 61.0% for the first quarter of the prior year
Nonperforming loan balances were $29.9 million as of March 31, 2025, compared to $36.5 million as of December 31, 2024, and $26.0 million as of March 31, 2024. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively

“Our business model remained resilient in the first quarter, even amidst a more uncertain macro environment,” said Kent Landvatter, Chairman and CEO of FinWise. “We posted solid loan originations and encouraging credit quality metrics, as both non-performing loan balances and net charge-offs declined sequentially. Furthermore, we continued to migrate our loan portfolio to a lower risk profile while still growing profitably and increasing tangible book value. Subsequent to the end of the first quarter, we also announced a new strategic program agreement where FinWise will provide both lending and our Credit Enhanced Balance Sheet product. While we will continue to closely monitor the economic environment, we remain excited about the outlook for our business and will maintain our focus on executing our business strategy to continue to position the Company for long-term growth and shareholder value creation.”

________________
_{¹ See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.}

Selected Financial and Other Data

	As of and for the Three Months Ended
($ in thousands, except per share amounts)	3/31/2025			12/31/2024			3/31/2024
Amount of loans originated	$	1,264,604		$	1,305,028		$	1,091,479
Net income	$	3,189		$	2,793		$	3,315
Diluted EPS	$	0.23		$	0.20		$	0.25
Return on average assets		1.7	%		1.6	%		2.2	%
Return on average equity		7.4	%		6.5	%		8.4	%
Yield on loans		12.31	%		14.01	%		14.80	%
Cost of interest-bearing deposits		4.01	%		4.30	%		4.71	%
Net interest margin		8.27	%		10.00	%		10.12	%
Efficiency ratio⁽¹⁾		64.8	%		64.2	%		61.0	%
Tangible book value per share⁽²⁾	$	13.42		$	13.15		$	12.70
Tangible shareholders’ equity to tangible assets⁽²⁾		22.0	%		23.3	%		26.6	%
Leverage ratio (Bank under CBLR)		18.8	%		20.6	%		20.6	%
Full-time equivalent employees		196			196			175

^{(1) This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.}
^{(2) Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.}

Net Interest Income
Net interest income was $14.3 million for the first quarter of 2025, compared to $15.5 million for the prior quarter and $14.0 million for the prior year period. The decrease from the prior quarter was primarily due to a decrease in yields and a seasonal decline in origination volume on the three highest yielding programs in the held-for-sale portfolio of $0.5 million, a decrease in yield offset in part by an increase in volume on the remaining held-for-sale portfolio of $0.3 million, and a decrease in yields offset in part by the increase in volume of the held-for-investment portfolio as variable rate loans were repriced to reflect the decrease in the prime rate of $0.5 million. The increase from the prior year period was primarily due to an increase in average interest-earning assets of $143.7 million, partially offset by lower yields on interest-earning assets and an increase in the average interest-bearing liabilities of $119.6 million.

Loan originations totaled $1.3 billion for the first quarter of 2025, compared to $1.3 billion for the prior quarter and $1.1 billion for the prior year period.

Net interest margin for the first quarter of 2025 was 8.27%, compared to 10.00% for the prior quarter and 10.12% for the prior year period. The decrease in net interest margin from the prior quarter and prior year period is attributable to the seasonal decline in originations of the three highest yielding held-for-sale programs, the repricing of our variable rate loan portfolio as interest rates have declined, and the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans offset by a reduction in the costs of funds.

Provision for Credit Losses
The Company’s provision for credit losses was $3.3 million for the first quarter of 2025, compared to $3.9 million for the prior quarter and $3.2 million for the prior year period. The decrease in the provision for credit losses from the prior quarter was mainly due to lower net charge-offs of $1.0 million predominately in the non-SP loan portfolio offset in part by increased reserves for the held-for-investment loan portfolio growth, net of changes in modeling assumptions of $0.5 million. The increase in the provision for credit losses from the prior year period was primarily due to growth in the loans held-for-investment portfolio.

Non-interest Income

	Three Months Ended
($ in thousands)	3/31/2025		12/31/2024			3/31/2024
Non-interest income
Strategic Program fees	$	4,962	$	4,899		$	3,965
Gain on sale of loans		846		872			415
SBA loan servicing fees, net		178		181			664
Change in fair value on investment in BFG		400		(200	)		(124	)
Credit enhancement income		85		25			—
Other miscellaneous income		1,339		(174	)		742
Total non-interest income	$	7,810	$	5,603		$	5,662

The increase in non-interest income from the prior quarter was due to an increase in other miscellaneous income resulting from a charge in the prior quarter of $0.9 million to remove unamortized premiums upon calling $160.0 million of callable certificates of deposits, growth in the Company’s operating lease portfolio, and an increased distribution received from BFG during the quarter. The Company also benefited from a favorable change in the fair value of our investment in BFG.

The increase in non-interest income from the prior year period was primarily due to an increase in Strategic Program fees primarily due to higher originations, a favorable change in the fair value of our investment in BFG, and an increase in other miscellaneous income. The increase in other miscellaneous income from the prior year period was the result of increased revenue from growth in the Company’s operating lease portfolio and increased distributions received from BFG.

Non-interest Expense

	Three Months Ended
($ in thousands)	3/31/2025		12/31/2024		3/31/2024
Non-interest expense
Salaries and employee benefits	$	9,826	$	9,375	$	7,562
Professional services		907		556		1,567
Occupancy and equipment expenses		543		533		544
Credit enhancement expense		11		5		—
Other operating expenses		3,031		3,094		2,332
Total non-interest expense	$	14,318	$	13,563	$	12,005

The increase in non-interest expense from the prior quarter resulted from increases in salaries and employee benefits and professional services. The salaries and employee benefits increase pertained mainly to an increase in federal employer payroll taxes of $0.4 million while the increase in professional services resulted from the reversal of over-accruals during the fourth quarter of 2024. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and stock based compensation expense and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

Reflecting the decreased net interest income and increase in operating expenses, the Company’s efficiency ratio was 64.8% for the first quarter of 2025, compared to 64.2% for the prior quarter and 61.0% for the prior year period. The Company anticipates the efficiency ratio will level off then begin to decline as revenues are realized in future periods from the credit enhanced loan, BIN sponsorship and payments initiatives developed during 2023 and 2024.

Tax Rate
The Company’s effective tax rate was 28.1% for the first quarter of 2025, compared to 24.3% for the prior quarter and 26.5% for the prior year period. The increases from the prior quarter and prior year period were due primarily to estimated permanent differences related to officer compensation.

Net Income
Net income was $3.2 million for the first quarter of 2025, compared to $2.8 million for the prior quarter and $3.3 million for the prior year period. The changes in net income for the three months ended March 31, 2025 compared to the prior quarter and prior year period are the result of the factors discussed above.

Balance Sheet
The Company’s total assets were $804.1 million as of March 31, 2025, an increase from $746.0 million as of December 31, 2024 and $610.8 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to continued growth in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $24.6 million and $27.2 million, respectively, as well as an increase of $12.6 million in interest-bearing cash deposits. The increase in total assets compared to March 31, 2024 was primarily due to increases in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $95.3 million and $63.8 million, respectively, as well as an increase in investment securities available-for-sale of $30.1 million. The increased loan balances are consistent with our strategy to grow the loan portfolio with higher quality lower risk assets.

The following table shows the gross loans held-for-investment (“HFI”) balances as of the dates indicated:

	3/31/2025				12/31/2024				3/31/2024
($ in thousands)	Amount		% of total loans		Amount		% of total loans		Amount		% of total loans
SBA	$	246,004	50.0	%	$	255,056	54.8	%	$	247,810	63.4	%
Commercial leases		76,823	15.6	%		70,153	15.1	%		46,690	11.9	%
Commercial, non-real estate		3,550	0.7	%		3,691	0.8	%		2,077	0.5	%
Residential real estate		55,814	11.3	%		51,574	11.1	%		39,006	10.0	%
Strategic Program loans		19,916	4.1	%		20,122	4.3	%		17,216	4.4	%
Commercial real estate:
Owner occupied		65,920	13.4	%		41,046	8.8	%		21,300	5.4	%
Non-owner occupied		1,390	0.3	%		1,379	0.3	%		2,155	0.6	%
Consumer		22,806	4.6	%		22,212	4.8	%		14,689	3.8	%
Total period end loans	$	492,223	100.0	%	$	465,233	100.0	%	$	390,943	100.0	%

^{Note: SBA loans as of March 31, 2025, December 31, 2024 and March 31, 2024 include $150.0 million, $158.7 million and $141.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of March 31, 2025, December 31, 2024 and March 31, 2024 was $3.8 million, $3.1 million and $2.7 million, respectively.}

Total gross loans HFI as of March 31, 2025 increased $27.0 million and $101.3 million compared to December 31, 2024 and March 31, 2024, respectively. The Company experienced growth primarily in its commercial real estate – owner occupied, commercial leases, and residential real estate loan portfolios, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

The following table shows the Company’s deposit composition as of the dates indicated:

	As of
	3/31/2025				12/31/2024				3/31/2024
($ in thousands)	Amount		Percent		Amount		Percent		Amount		Percent
Noninterest-bearing demand deposits	$	123,322	20.4	%	$	126,782	23.3	%	$	107,076	25.3	%
Interest-bearing deposits:
Demand		83,410	13.8	%		71,403	13.1	%		48,279	11.4	%
Savings		8,888	1.5	%		9,287	1.7	%		11,206	2.6	%
Money market		17,939	2.9	%		16,709	3.0	%		9,935	2.3	%
Time certificates of deposit		372,200	61.4	%		320,771	58.9	%		247,600	58.4	%
Total period end deposits	$	605,759	100.0	%	$	544,952	100.0	%	$	424,096	100.0	%

The increase in total deposits at March 31, 2025 from December 31, 2024 and March 31, 2024 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from March 31, 2024 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

Total shareholders’ equity as of March 31, 2025 increased $3.6 million to $177.4 million from $173.7 million at December 31, 2024. Compared to March 31, 2024, total shareholders’ equity increased by $14.9 million from $162.5 million. The increase from December 31, 2024 was primarily due to the Company’s net income and stock-based compensation. The increase from March 31, 2024 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG and stock-based compensation partially offset by the repurchase of common stock under the Company’s share repurchase program.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

	As of
Capital Ratios	3/31/2025	12/31/2024	3/31/2024	Well-Capitalized Requirement
Leverage ratio	18.8%	20.6%	20.6%	9.0%

The decrease in the leverage ratio from the prior quarter and the prior year period primarily results from the growth in the loan portfolio exceeding the relative growth in capital from earnings. The Bank’s capital levels remain significantly above the regulatory well-capitalized guidelines as of March 31, 2025.

Share Repurchase Program
Since the share repurchase program’s inception in March 2024, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million. There were no shares repurchased during the first quarter of 2025.

Asset Quality
The recorded balances of nonperforming loans were $29.9 million, or 6.1% of total loans held-for-investment, as of March 31, 2025, compared to $36.5 million, or 7.8% of total loans held-for-investment, as of December 31, 2024 and $26.0 million, or 6.6% of total loans held-for-investment, as of March 31, 2024. The balances of nonperforming loans guaranteed by the SBA were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The decrease in nonperforming loans from the prior quarter was primarily attributable to an increase in principal repayments and payoffs. The increase in nonperforming loans from the prior year period was primarily attributable to loans in the SBA 7(a) loan portfolio being classified as non-accrual mainly due to the negative impact of elevated interest rates on the Company’s small business borrowers. The Company’s allowance for credit losses to total loans held-for-investment was 2.9% as of March 31, 2025 compared to 2.8% as of December 31, 2024 and 3.2% as of March 31, 2024. The slight increase in the ratio from the prior quarter was primarily due to growth in the allowance for credit losses attributable to the retained Strategic Program loans while the actual retained Strategic Program loan balances decreased from the prior quarter. The decrease in the ratio from the prior year period was primarily due to the respective balances of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk owner-occupied CRE, leasing and other held-for-investment loan portfolios, and the shift in our Strategic Program held-for-investment loan balances to programs with lower historical losses.

The Company’s net charge-offs were $2.2 million, $3.2 million and $3.4 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The decrease from the prior quarter is primarily due to prior quarter charge-offs of the unguaranteed portion of SBA loans as well as decreased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to a decrease in charge-offs in the Strategic Program loans portfolio as well as increased recoveries during the first quarter of 2025.

The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:

	Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Allowance for credit losses:
Beginning balance	$	13,176		$	12,661		$	12,888
Provision for credit losses⁽¹⁾		3,307			3,766			3,145
Charge offs
Construction and land development		—			—			—
Residential real estate		(7	)		(206	)		(64	)
Residential real estate multifamily		—			—			—
Commercial real estate:
Owner occupied		(68	)		(411	)		(525	)
Non-owner occupied		—			—			—
Commercial and industrial		(83	)		(555	)		(54	)
Consumer		(11	)		(60	)		(41	)
Lease financing receivables		(36	)		—			(111	)
Strategic Program loans		(2,384	)		(2,528	)		(2,946	)
Recoveries
Construction and land development		—			—			—
Residential real estate		3			6			53
Residential real estate multifamily		—			—			—
Commercial real estate:
Owner occupied		16			112			3
Non-owner occupied		—			—			—
Commercial and industrial		14			—			—
Consumer		3			1			—
Lease financing receivables		(33	)		77			—
Strategic Program loans		338			313			284
Ending Balance	$	14,235		$	13,176		$	12,632

*Credit Quality Data*	As of and For the Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Nonperforming loans:
Guaranteed	$	15,147		$	19,203		$	14,765
Unguaranteed		14,737			17,281			11,231
Total nonperforming loans	$	29,884		$	36,484		$	25,996
Allowance for credit losses	$	14,235		$	13,176		$	12,632
Net charge offs	$	2,248		$	3,249		$	3,401
Total loans held-for-investment	$	492,223		$	465,233		$	390,943
Total loans held-for-investment less guaranteed balances	$	342,259		$	306,483		$	249,229
Average loans held-for-investment	$	485,780		$	454,474		$	387,300
Nonperforming loans to total loans held-for-investment		6.1	%		7.8	%		6.6	%
Net charge offs to average loans held-for-investment (annualized)		1.9	%		2.8	%		3.5	%
Allowance for credit losses to loans held-for-investment		2.9	%		2.8	%		3.2	%
Allowance for credit losses to loans held-for-investment less guaranteed balances		4.2	%		4.3	%		5.1	%

^{(1) Excludes the provision for unfunded commitments.}

Webcast and Conference Call Information
FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the first quarter. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13752183. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

Website Information
The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payment Solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings. Its existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

Contacts
investors@finwisebank.com
media@finwisebank.com

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. 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.

There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology and banking-as-a-service (“BaaS”) industries, as well as the continued evolution of the regulation of these industries; (b) the ability of the Company’s Fintech Banking and Payment Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Fintech Banking and Payment Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, tariffs, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic, political and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (p) changes in the existing regulatory framework for brokered deposits and potential reclassification of certain BaaS deposits as brokered deposits in light of proposed rulemaking or application of the current deposit framework by the Federal Deposit Insurance Corporation (“FDIC”) to the Bank’s BaaS deposits; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to continue to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest rate, volatility and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) the Company’s ability to maintain a strong core deposit base or other low-cost funding sources; (dd) results of examinations of the Company by its regulators; (ee) the Company’s involvement from time to time in legal proceedings; (ff) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (gg) future equity and debt issuances; (hh) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; (ii) further negative ratings outlooks or downgrades of the U.S.’s long-term credit rating, (jj) changes in legislative, regulatory or tax priorities, (kk) reductions in staffing at U.S. governmental agencies, (ll) potential government shutdowns or political impasses, including with respect to the U.S. debt ceiling and federal budget; and (mm) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 10-Q and Form 8-K.

The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.


FINWISE BANCORP CONSOLIDATED BALANCE SHEETS ($ in thousands; Unaudited)

	3/31/2025		12/31/2024		3/31/2024
ASSETS
Cash and cash equivalents
Cash and due from banks	$	8,155	$	9,600	$	3,944
Interest-bearing deposits		112,117		99,562		111,846
Total cash and cash equivalents		120,272		109,162		115,790
Investment securities available-for-sale, at fair value		30,138		29,930		—
Investment securities held-to-maturity, at cost		12,008		12,565		14,820
Investment in Federal Home Loan Bank (“FHLB”) stock, at cost		440		349		349
Strategic Program loans held-for-sale, at lower of cost or fair value		118,769		91,588		54,947
Loans held-for-investment, net		472,402		447,812		377,101
Credit enhancement asset		195		111		—
Premises and equipment, net		3,123		3,548		6,665
Accrued interest receivable		2,708		3,566		3,429
Deferred taxes, net		290		—		—
SBA servicing asset, net		3,331		3,273		4,072
Investment in Business Funding Group (“BFG”), at fair value		8,100		7,700		8,200
Operating lease right-of-use (“ROU”) assets		3,555		3,564		4,104
Income tax receivable, net		3,353		8,868		2,400
Other assets		25,445		23,939		18,956
Total assets	$	804,129	$	745,976	$	610,833

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Deposits
Noninterest-bearing	$	123,322	$	126,782	$	107,076
Interest-bearing		482,437		418,170		317,020
Total deposits		605,759		544,952		424,096
Accrued interest payable		2,750		1,494		588
Income taxes payable, net		962		4,423		3,207
Deferred taxes, net		—		899		508
Operating lease liabilities		5,226		5,302		6,046
Other liabilities		12,071		15,186		13,906
Total liabilities		626,768		572,256		448,351

Shareholders’ equity
Common stock		13		13		13
Additional paid-in-capital		57,548		56,926		55,304
Retained earnings		119,781		116,594		107,165
Accumulated other comprehensive income, net of tax		19		187		—
Total shareholders’ equity		177,361		173,720		162,482
Total liabilities and shareholders’ equity	$	804,129	$	745,976	$	610,833


FINWISE BANCORP CONSOLIDATED STATEMENTS OF INCOME ($ in thousands, except per share amounts; Unaudited)

	Three Months Ended
	3/31/2025		12/31/2024			3/31/2024
Interest income
Interest and fees on loans	$	17,155	$	18,388		$	16,035
Interest on securities		390		401			101
Other interest income		991		573			1,509
Total interest income		18,536		19,362			17,645

Interest expense
Interest on deposits		4,256		3,833			3,639
Total interest expense		4,256		3,833			3,639
Net interest income		14,280		15,529			14,006

Provision for credit losses		3,336		3,878			3,154
Net interest income after provision for credit losses		10,944		11,651			10,852

Non-interest income
Strategic Program fees		4,962		4,899			3,965
Gain on sale of loans, net		846		872			415
SBA loan servicing fees, net		178		181			664
Change in fair value on investment in BFG		400		(200	)		(124	)
Credit enhancement income		85		25			—
Other miscellaneous (loss) income		1,339		(174	)		742
Total non-interest income		7,810		5,603			5,662

Non-interest expense
Salaries and employee benefits		9,826		9,375			7,562
Professional services		907		556			1,567
Occupancy and equipment expenses		543		533			544
Credit enhancement expense		11		5			—
Other operating expenses		3,031		3,094			2,332
Total non-interest expense		14,318		13,563			12,005
Income before income taxes		4,436		3,691			4,509

Provision for income taxes		1,247		897			1,194
Net income	$	3,189	$	2,794		$	3,315

Earnings per share, basic	$	0.24	$	0.21		$	0.26
Earnings per share, diluted	$	0.23	$	0.20		$	0.25

Weighted average shares outstanding, basic		12,716,155		12,659,986			12,502,448
Weighted average shares outstanding, diluted		13,483,647		13,392,411			13,041,605
Shares outstanding at end of period		13,216,903		13,211,640			12,793,555


FINWISE BANCORP AVERAGE BALANCES, YIELDS, AND RATES ($ in thousands; Unaudited)

	Three Months Ended
	3/31/2025						12/31/2024						3/31/2024
	Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate		Average Balance		Interest		Average Yield/ Rate
Interest earning assets:
Interest-bearing deposits	$	92,794	$	991	4.33	%	$	52,375	$	573	4.35	%	$	111,911	$	1,509	5.42	%
Investment securities		42,314		390	3.74	%		43,212		401	3.69	%		15,174		101	2.67	%
Strategic Program loans held-for-sale		79,612		4,264	21.72	%		67,676		5,040	29.63	%		42,452		3,475	32.93	%
Loans held-for-investment		485,780		12,891	10.76	%		454,474		13,348	11.68	%		387,300		12,560	13.04	%
Total interest earning assets		700,500		18,536	10.73	%		617,737		19,362	12.47	%		556,837		17,645	12.74	%
Noninterest-earning assets		54,184						55,767						39,123
Total assets	$	754,684					$	673,504					$	595,960
Interest-bearing liabilities:
Demand	$	76,403	$	670	3.56	%	$	57,305	$	617	4.28	%	$	51,603	$	503	3.92	%
Savings		9,247		7	0.30	%		9,192		9	0.40	%		9,301		19	0.83	%
Money market accounts		17,884		163	3.70	%		15,726		147	3.73	%		10,200		66	2.60	%
Certificates of deposit		326,920		3,416	4.24	%		272,799		3,060	4.46	%		239,577		3,051	5.12	%
Total deposits		430,454		4,256	4.01	%		355,022		3,833	4.30	%		310,681		3,639	4.71	%
Other borrowings		48		—	0.35	%		79		—	0.35	%		172		—	0.35	%
Total interest-bearing liabilities		430,502		4,256	4.01	%		355,101		3,833	4.29	%		310,853		3,639	4.71	%
Noninterest-bearing deposits		119,501						119,945						100,507
Noninterest-bearing liabilities		29,644						27,636						25,446
Shareholders’ equity		175,037						170,823						159,154
Total liabilities and shareholders’ equity	$	754,684					$	673,505					$	595,960
Net interest income and interest rate spread			$	14,280	6.72	%			$	15,529	8.18	%			$	14,006	8.03	%
Net interest margin					8.27	%					10.00	%					10.12	%
Ratio of average interest-earning assets to average interest- bearing liabilities					162.72	%					173.96	%					179.13	%


Reconciliation of Non-GAAP to GAAP Financial Measures (Unaudited)

Efficiency ratio	Three Months Ended
($ in thousands)	3/31/2025			12/31/2024			3/31/2024
Non-interest expense	$	14,318		$	13,563		$	12,005

Net interest income		14,280			15,529			14,006
Total non-interest income		7,810			5,603			5,662
Adjusted operating revenue	$	22,090		$	21,132		$	19,668
Efficiency ratio		64.8	%		64.2	%		61.0	%

FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:

	As of and for the Three Months Ended							As of and for the Three Months Ended
($ in thousands; unaudited)	3/31/2025							12/31/2024
	Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI		Total Average Loans HFI		Total Interest Income on Loans HFI			Average Yield on Loans HFI
Before adjustment for credit enhancement	$	485,780	$	12,891		10.76	%	$	454,474	$	13,348		11.68	%
Less: credit enhancement expense				(11	)						(5	)
Net of adjustment for credit enhancement expenses	$	485,780	$	12,880		10.76	%	$	454,474	$	13,343		11.68	%

Total interest income on loans held-for-investment net of credit enhancement expense and the average yield on loans held-for-investment net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

	As of and for the Three Months Ended							As of and for the Three Months Ended
	3/31/2025							12/31/2024
($ in thousands; unaudited)	Total Average Interest-Earning Assets		Net Interest Income			Net Interest Margin		Total Average Interest-Earning Assets		Net Interest Income			Net Interest Margin
Before adjustment for credit enhancement	$	700,500	$	14,280		8.27	%	$	617,737	$	15,529		10.00	%
Less: credit enhancement expense				(11	)						(5	)
Net of adjustment for credit enhancement expenses	$	700,500	$	14,269		8.27	%	$	617,737	$	15,524		10.00	%

Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:

($ in thousands; unaudited)	Three Months Ended March 31, 2025			Three Months Ended December 31, 2024
Total non-interest expense	$	14,318		$	13,564
Less: credit enhancement expense		(11	)		(5	)
Total non-interest expense less credit enhancement expenses	$	14,307		$	13,559

Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

($ in thousands; unaudited)	Three Months Ended March 31, 2025			Three Months Ended December 31, 2024
Total non-interest income	$	7,810		$	5,603
Less: credit enhancement income		(85	)		(25	)
Total non-interest income less credit enhancement income	$	7,725		$	5,578

Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:

($ in thousands; unaudited)	As of March 31, 2025			As of December 31, 2024
Allowance for credit losses	$	(14,235	)	$	(13,176	)
Less: allowance for credit losses related to credit enhanced loans		(195	)		(111	)
Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans	$	(14,040	)	$	(13,065	)

The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of March 31, 2025 and December 31, 2024 was approximately $1.3 million and $0.9 million, respectively.

The MIL Network –

May 1, 2025

MIL-OSI: NCS Multistage Holdings, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Results

Total revenues of $50.0 million, a 14% year-over-year improvement
Gross margin improved to 42% from 39%; adjusted gross margin improved to 44% from 40% in the first quarter of 2024
Net income of $4.1 million and diluted earnings per share of $1.51, an improvement compared to $2.1 million and diluted earnings per share of $0.82 one year ago
Adjusted EBITDA of $8.2 million, a $2.1 million year-over-year improvement
$23.0 million in cash and $7.6 million of total debt as of March 31, 2025

HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter ended March 31, 2025.

Review and Outlook

NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS had a strong start to 2025, with total revenues and Adjusted EBITDA for the first quarter exceeding our expectations as provided in the last earnings call, led by our performance in Canada.

Total revenues of $50.0 million increased by 14% year-over-year and 11% sequentially and represents our highest quarterly revenue since the first quarter of 2020. This is reflective of the consistent efforts of our team to deliver differentiated performance through the implementation of our core strategies.

Our adjusted gross margin improved to 44% for the quarter, compared to 40% for the same period one year ago, as we benefitted from the higher revenue, including higher-margin international work in both the Middle East and the North Sea.

Our Adjusted EBITDA was $8.2 million for the first quarter, an improvement of $2.1 million, or 35%, year-over-year. This demonstrates the operating leverage in our business and the benefits of our capital light operating model, as our Adjusted EBITDA margin for the first quarter of 2025 of 16% improved from 14% in the first quarter of 2024.

This improved operating performance resulted in net income attributable to NCS of $4.1 million, or $1.51 per diluted share for the first quarter of 2025, a meaningful improvement as compared to $2.1 million and $0.82 per diluted share, respectively, for the same period in 2024.

Our cash balance as of March 31, 2025, totaled $23.0 million and our net cash position was $15.4 million. Total liquidity was $49.8 million as of March 31, 2025, inclusive of our cash balance and availability under our undrawn revolving credit facility, an increase of $15.4 million compared to one year ago.

We have not experienced a significant impact on our business from escalating global trade tensions, and we expect that to continue to be the case in the second quarter of 2025. However, such global trade tensions and potential additional U.S. tariffs — along with retaliatory measures by other countries — present risks to commodity prices that could result in lower drilling and completions activity as compared to our initial expectations for both the second half and full year in 2025. If sustained, such conditions may result in a more pronounced decrease in drilling and completion activity across these markets. In addition, we are evaluating options to mitigate the impact of potential cost increases from tariffs that have been imposed by the U.S. on products from China and on steel imports, in particular.

I want to express my continued appreciation to our team at NCS and Repeat Precision. Our accomplishments and our upcoming opportunities reflect the talent, effort and dedication of our outstanding teams. We have the right people, the right technology, and the right strategies in place to deliver extraordinary outcomes to our customers, drive innovation in the industry and create value for our shareholders. We’ve had a good start for the year and remain cautiously optimistic about the remainder of 2025. Our strong balance sheet remains a strategic asset for NCS and we will react swiftly and decisively in response to changing market conditions and opportunities.”

Financial Review

Total revenues were $50.0 million for the quarter ended March 31, 2025 compared to $43.9 million for the first quarter of 2024. Revenue growth was driven primarily by an increase in Canadian product sales and increases in services revenue across all of our geographic regions, partially offset by a decline in U.S. product sales attributed to certain project delays. The increase in product and service sales for Canada reflects robust activity levels, particularly for fracturing systems completions, a trend that began in the fourth quarter of 2024 and continued throughout the first quarter. The increase in international service revenues was driven by Middle East tracer diagnostics projects and North Sea fracturing systems product sales and services.

Compared to the fourth quarter of 2024, total revenues increased by 11%, with an increase in Canada of 26% due to continued strong activity levels. This increase was partially offset by a decline of 34% in international revenues, primarily associated with the timing of tracer service work in the Middle East, and a 13% decline in U.S. revenues.

Gross profit was $21.1 million, with a gross margin of 42%, for the first quarter of 2025, compared to $17.0 million, with a gross margin of 39%, for the first quarter of 2024. Gross margin for 2025 improved due to an increase in higher-margin international work in both the Middle East and North Sea, and increased product sales in Canada. We also benefitted from efficiencies related to our supply chain and our manufacturing/assembly operations, leveraging certain fixed costs and capitalizing on lean manufacturing strategies implemented over the last year. Adjusted gross profit, which we define as total revenues less total cost of sales, exclusive of depreciation and amortization (“DD&A”), was $21.9 million, or an adjusted gross margin of 44%, for the first quarter of 2025, compared to $17.6 million, or 40%, for the first quarter of 2024.

Selling, general and administrative (“SG&A”) expenses totaled $16.2 million for the first quarter of 2025, an increase of $2.4 million compared to the same period in 2024. This increase in expense reflects a higher annual incentive bonus accrual year-over-year, higher professional fees and an increase in share-based compensation expense attributable to cash settled awards, which are remeasured at the balance sheet date based on the price of our common stock.

Other income was $0.9 million for the first quarter of 2025 compared to $1.1 million for the first quarter of 2024. The decline in other income reflects the absence of a contribution from a technical services and assistance agreement with our local partner in Oman for the first quarter of 2025, as that program ended in November 2024. Partially offsetting this year-over year decrease was an increase in the royalty income earned from licensees for these periods.

Net income was $4.1 million, or $1.51 per diluted share, for the quarter ended March 31, 2025 compared to net income of $2.1 million, or $0.82 per diluted share for the quarter ended March 31, 2024.

Adjusted EBITDA was $8.2 million for the quarter ended March 31, 2025, an increase of $2.1 million compared to the same period a year ago. This improvement is primarily the result of an increase in Canada revenues and higher-margin international projects partially offset by an increase in SG&A expenses due to higher annual incentive bonus accruals. Adjusted EBITDA margin of 16% for the quarter ended March 31, 2025, compared to 14% for the same period a year ago.

Cash flow from operating activities for the three months ended March 31, 2025 was a use of cash of $(1.6) million, a $0.2 million improvement compared to the same period in 2024. For the three months ended March 31, 2025, free cash flow less distributions to non-controlling interest was a use of cash of $(2.1) million compared to a use of cash of $(2.5) million for the same period in 2024. The overall change in free cash flow was largely attributed to our operating results, change in net working capital including payment of incentive bonuses and cash-settled awards remeasured based on the price of our stock in the first quarter of 2025, and the absence of a distribution to our non-controlling interest in 2025, partially offset by an increase in net cash invested in capital expenditures.

Liquidity and Capital Expenditures

As of March 31, 2025, NCS had $23.0 million in cash, $7.6 million in total indebtedness related to finance lease obligations, and a borrowing base under the undrawn asset-based revolving credit facility (“ABL Facility”) of $26.8 million. Our working capital, defined as current assets minus current liabilities, was $85.2 million and $80.2 million as of March 31, 2025 and December 31, 2024, respectively.

Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was $64.4 million and $56.4 million as of March 31, 2025 and December 31, 2024, respectively. The increase in our net working capital was primarily attributable to an increase in accounts receivable and a decrease in accrued expenses due in part to payment of our 2024 incentive bonus in the first quarter of 2025, partially offset by an increase in accounts payable.

NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of $0.5 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.

Conference Call

The Company will host a conference call to discuss its first quarter 2025 results and updated guidance on Thursday, May 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). For those participants who wish to ask questions, please dial (800) 715-9871 (U.S. toll-free) or +1 (646) 307-1963 (international) and enter the Conference ID: 7182351. A listen-only option is also available through this link. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investors section of the Company’s website, www.ncsmultistage.com.

The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

About NCS Multistage Holdings, Inc.

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: declines in the level of oil and natural gas exploration and production activity in Canada, the United States and internationally; oil and natural gas price fluctuations; significant competition for our products and services that results in pricing pressures, reduced sales, or reduced market share; inability to successfully implement our strategy of increasing sales of products and services into the U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; change in trade policy, including the impact of tariffs; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; loss of any of our key suppliers or significant disruptions negatively impacting our supply chain; risks in attracting and retaining qualified employees and key personnel; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; our inability to accurately predict customer demand, which may result in us holding excess or obsolete inventory; failure to comply with or changes to federal, state and local and non-U.S. laws and other regulations, including anti-corruption and environmental regulations, guidelines and regulations for the use of explosives; impairment in the carrying value of long-lived assets including goodwill; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition and the adoption of artificial intelligence and machine learning; our inability to protect and maintain critical intellectual property assets, the inability to protect our current royalty income, or the losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; our failure to establish and maintain effective internal control over financial reporting; restrictions on the availability of our customers to obtain water essential to the drilling and hydraulic fracturing processes; changes in legislation or regulation governing the oil and natural gas industry, including restrictions on emissions of greenhouse gases; our inability to meet regulatory requirements for use of certain chemicals by our tracer diagnostics business; the reduction in our ABL Facility borrowing base or our inability to comply with the covenants in our debt agreements; and our inability to obtain sufficient liquidity on reasonable terms, or at all and other factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

Contact

Mike Morrison
Chief Financial Officer and Treasurer
(281) 453-2222
IR@ncsmultistage.com


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Revenues
Product sales	$	35,066		$	31,758
Services		14,939			12,100
Total revenues		50,005			43,858
Cost of sales
Cost of product sales, exclusive of depreciation and amortization expense shown below		20,352			19,692
Cost of services, exclusive of depreciation and amortization expense shown below		7,798			6,595
Total cost of sales, exclusive of depreciation and amortization expense shown below		28,150			26,287
Selling, general and administrative expenses		16,195			13,830
Depreciation		1,204			1,073
Amortization		167			167
Income from operations		4,289			2,501
Other income (expense)
Interest expense, net		(42	)		(100	)
Other income, net		883			1,137
Foreign currency exchange loss, net		(3	)		(498	)
Total other income		838			539
Income before income tax		5,127			3,040
Income tax expense		673			487
Net income		4,454			2,553
Net income attributable to non-controlling interest		398			483
Net income attributable to NCS Multistage Holdings, Inc.	$	4,056		$	2,070
Earnings per common share
Basic earnings per common share attributable to NCS Multistage Holdings, Inc.	$	1.58		$	0.83
Diluted earnings per common share attributable to NCS Multistage Holdings, Inc.	$	1.51		$	0.82
Weighted average common shares outstanding
Basic		2,568			2,508
Diluted		2,686			2,539


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
Assets
Current assets
Cash and cash equivalents	$	22,997		$	25,880
Accounts receivable—trade, net		38,403			31,513
Inventories, net		40,756			40,971
Prepaid expenses and other current assets		1,852			2,063
Other current receivables		5,033			5,143
Total current assets		109,041			105,570
Noncurrent assets
Property and equipment, net		20,477			21,283
Goodwill		15,222			15,222
Identifiable intangibles, net		3,523			3,690
Operating lease assets		5,773			5,911
Deposits and other assets		660			712
Deferred income taxes, net		422			424
Total noncurrent assets		46,077			47,242
Total assets	$	155,118		$	152,812
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable—trade	$	11,751		$	8,970
Accrued expenses		5,348			8,351
Income taxes payable		1,103			683
Operating lease liabilities		1,676			1,602
Current maturities of long-term debt		2,250			2,141
Other current liabilities		1,737			3,672
Total current liabilities		23,865			25,419
Noncurrent liabilities
Long-term debt, less current maturities		5,370			6,001
Operating lease liabilities, long-term		4,662			4,891
Other long-term liabilities		207			206
Deferred income taxes, net		178			186
Total noncurrent liabilities		10,417			11,284
Total liabilities		34,282			36,703
Commitments and contingencies
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024		—			—
Common stock, $0.01 par value, 11,250,000 shares authorized, 2,607,362 shares issued and 2,540,849 shares outstanding at March 31, 2025 and 2,563,979 shares issued and 2,507,430 shares outstanding at December 31, 2024		26			26
Additional paid-in capital		447,936			447,384
Accumulated other comprehensive loss		(87,615	)		(87,604	)
Retained deficit		(254,968	)		(259,024	)
Treasury stock, at cost, 66,513 shares at March 31, 2025 and 56,549 shares at December 31, 2024		(2,211	)		(1,943	)
Total stockholders’ equity		103,168			98,839
Non-controlling interest		17,668			17,270
Total equity		120,836			116,109
Total liabilities and stockholders’ equity	$	155,118		$	152,812


NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025			2024
Cash flows from operating activities
Net income	$	4,454		$	2,553
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		1,371			1,240
Amortization of deferred loan costs		52			51
Share-based compensation		1,445			902
Provision for inventory obsolescence		(35	)		316
Deferred income tax expense		1			5
Gain on sale of property and equipment		(36	)		(172	)
Provision for credit losses		42			—
Net foreign currency unrealized loss (gain)		(849	)		373
Proceeds from note receivable		—			61
Changes in operating assets and liabilities:
Accounts receivable—trade		(6,978	)		(10,282	)
Inventories, net		200			1,521
Prepaid expenses and other assets		890			29
Accounts payable—trade		3,742			2,355
Accrued expenses		(3,003	)		130
Other liabilities		(3,273	)		(1,339	)
Income taxes receivable/payable		332			377
Net cash used in operating activities		(1,645	)		(1,880	)
Cash flows from investing activities
Purchases of property and equipment		(464	)		(299	)
Purchase and development of software and technology		—			(13	)
Proceeds from sales of property and equipment		13			176
Net cash used in investing activities		(451	)		(136	)
Cash flows from financing activities
Payments on finance leases		(522	)		(449	)
Line of credit borrowings		1,963			1,158
Payments of line of credit borrowings		(1,963	)		(602	)
Treasury shares withheld		(268	)		(237	)
Distribution to noncontrolling interest		—			(500	)
Net cash used in financing activities		(790	)		(630	)
Effect of exchange rate changes on cash and cash equivalents		3			(70	)
Net change in cash and cash equivalents		(2,883	)		(2,716	)
Cash and cash equivalents beginning of period		25,880			16,720
Cash and cash equivalents end of period	$	22,997		$	14,004
Noncash investing and financing activities
Assets obtained in exchange for new finance lease liabilities	$	—		$	696
Assets obtained in exchange for new operating lease liabilities	$	244		$	—

NCS MULTISTAGE HOLDINGS, INC. REVENUES BY GEOGRAPHIC AREA (In thousands) (Unaudited)

	Three Months Ended
	March 31,
	2025		2024
United States
Product sales	$	6,867	$	7,767
Services		2,505		2,244
Total United States		9,372		10,011
Canada
Product sales		26,843		22,675
Services		10,875		8,994
Total Canada		37,718		31,669
Other Countries
Product sales		1,356		1,316
Services		1,559		862
Total other countries		2,915		2,178
Total
Product sales		35,066		31,758
Services		14,939		12,100
Total revenues	$	50,005	$	43,858

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)

Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income, income from operations, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) operating activities, working capital or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP, and they should not be considered as alternatives to net income, income from operations, gross profit, gross margin, cash provided by (used in) operating activities, working capital or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.

However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are key metrics that management uses to assess the period-to-period performance of our core business operations or metrics that enable investors to assess our performance from period to period relative to the performance of other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.

The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measures of financial performance calculated under GAAP:

NET WORKING CAPITAL

Net working capital is defined as total current assets, excluding cash and cash equivalents, minus total current liabilities, excluding current maturities of long-term debt. Net working capital excludes cash and cash equivalents and current maturities of long-term debt in order to evaluate the investments in working capital that we believe are required to support our business. We believe that net working capital is useful in analyzing the cash flow and working capital needs of the Company, including determining the efficiencies of our operations and our ability to readily convert assets into cash.

	March 31,			December 31,
	2025			2024
Working capital	$	85,176		$	80,151
Cash and cash equivalents		(22,997	)		(25,880	)
Current maturities of long term debt		2,250			2,141
Net working capital	$	64,429		$	56,412

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)

ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.

	Three Months Ended
	March 31,
	2025			2024
Total revenues	$	50,005		$	43,858
Total cost of sales, exclusive of depreciation and amortization expense		28,150			26,287
Total depreciation and amortization associated with cost of sales		715			616
Gross Profit	$	21,140		$	16,955
Gross Margin		42	%		39	%
Exclude total depreciation and amortization associated with cost of sales		(715	)		(616	)
Adjusted Gross Profit	$	21,855		$	17,571
Adjusted Gross Margin		44	%		40	%

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)

EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION

EBITDA is defined as net income before interest expense, net, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing operating performance or which, in the case of share-based compensation, is non-cash in nature. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted EBITDA Less Share-Based Compensation is defined as Adjusted EBITDA minus share-based compensation expense. We believe that Adjusted EBITDA is an important measure that excludes costs that do not reflect the Company’s ongoing operating performance, legal proceedings for intellectual property as further described below, and certain costs associated with our capital structure. We believe that Adjusted EBITDA Less Share-Based Compensation presents our financial performance in a manner that is comparable to the presentation provided by many of our peers.

We periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period.

	Three Months Ended
	March 31,
	2025			2024
Net income	$	4,454		$	2,553
Income tax expense		673			487
Interest expense, net		42			100
Depreciation		1,204			1,073
Amortization		167			167
EBITDA		6,540			4,380
Share-based compensation (a)		552			766
Professional fees (b)		989			253
Foreign currency exchange loss (c)		3			498
Other (d)		130			180
Adjusted EBITDA	$	8,214		$	6,077
Adjusted EBITDA Margin		16	%		14	%
Adjusted EBITDA Less Share-Based Compensation	$	7,662		$	5,311

___________________

(a)	Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
(b)	Represents non-capitalizable costs of professional services primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions.
(c)	Represents realized and unrealized foreign currency exchange gains and losses primarily due to movement in the foreign currency exchange rates during the applicable periods.
(d)	Represents the impact of a research and development subsidy that is included in income tax expense in accordance with GAAP along with other charges and credits.

NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)

FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST

Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment (inclusive of the purchase and development of software and technology) plus proceeds from sales of property and equipment, as presented in our consolidated statement of cash flows. We define free cash flow less distributions to non-controlling interest as free cash flow less amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. We believe free cash flow is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures and other investment needs. We believe that free cash flow less distributions to non-controlling interest is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures, other investment needs, and cash distributions to our joint venture partner.

	Three Months Ended
	March 31,
	2025			2024
Net cash used in operating activities	$	(1,645	)	$	(1,880	)
Purchases of property and equipment		(464	)		(299	)
Purchase and development of software and technology		—			(13	)
Proceeds from sales of property and equipment		13			176
Free cash flow	$	(2,096	)	$	(2,016	)
Distributions to non-controlling interest		—			(500	)
Free cash flow less distributions to non-controlling interest	$	(2,096	)	$	(2,516	)

The MIL Network –

May 1, 2025

MIL-OSI: Enact Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

GAAP Net Income of $166 million, or $1.08 per diluted share
Adjusted Operating Income of $169 million, or $1.10 per diluted share
Return on Equity of 13.1% and Adjusted Operating Return on Equity of 13.4%
Primary Insurance in-force of $268 billion, a 2% increase from first quarter 2024
PMIERs Sufficiency of 165% or approximately $2.0 billion
Book Value Per Share of $33.96 and Book Value Per Share excluding AOCI of $34.97

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

“We had a strong start to 2025 and continue to make progress against our priorities,” stated Rohit Gupta, President and CEO of Enact. “We continued to prudently underwrite new business, invest in our business, maintain expense discipline, and return substantial capital to our shareholders. Looking ahead, Enact is well positioned to navigate an uncertain economic backdrop. We are committed to executing against all aspects of our strategy and are doing so from a position of robust liquidity and financial strength. We believe the long-term drivers of housing demand remain in place, and we look forward to continuing to create value for all our stakeholders.”

Key Financial Highlights

(In millions, except per share data or otherwise noted)	1Q25	4Q24	1Q24
Net Income (loss)	$166	$163	$161
Diluted Net Income (loss) per share	$1.08	$1.05	$1.01
Adjusted Operating Income (loss)	$169	$169	$166
Adj. Diluted Operating Income (loss) per share	$1.10	$1.09	$1.04
NIW ($B)	$10	$13	$11
Primary Persistency Rate	84%	82%	85%
Primary IIF ($B)	$268	$269	$264
Net Premiums Earned	$245	$246	$241
Losses Incurred	$31	$24	$20
Loss Ratio	12%	10%	8%
Operating Expenses	$53	$58	$53
Expense Ratio	21%	24%	22%
Net Investment Income	$63	$63	$57
Net Investment gains (losses)	$(3)	$(7)	$(7)
Return on Equity	13.1%	13.0%	13.8%
Adjusted Operating Return on Equity	13.4%	13.5%	14.2%
PMIERs Sufficiency ($)	$1,966	$2,052	$1,883
PMIERs Sufficiency (%)	165%	167%	163%

First Quarter 2025 Financial and Operating Highlights

Net income was $166 million, or $1.08 per diluted share, compared with $163 million, or $1.05 per diluted share, for the fourth quarter of 2024 and $161 million, or $1.01 per diluted share, for the first quarter of 2024. Adjusted operating income was $169 million, or $1.10 per diluted share, compared with $169 million, or $1.09 per diluted share, for the fourth quarter of 2024 and $166 million, or $1.04 per diluted share, for the first quarter of 2024.
New insurance written (NIW) was approximately $10 billion, down 26% from the fourth quarter of 2024 primarily from seasonality in the purchase origination market and down 7% from the first quarter of 2024 primarily driven by lower estimated market share. NIW for the current quarter was comprised of 94% monthly premium policies and 93% purchase originations.
Persistency remained elevated at 84%, up from 82% in the fourth quarter of 2024 and down from 85% in the first quarter of 2024. Approximately 8% of the mortgages in our portfolio had rates at least 50 basis points above March 2025’s average mortgage rate of 6.7%.
Primary insurance in-force (IIF) was $268 billion, relatively flat from $269 billion in the fourth quarter of 2024 and up 2% from $264 billion in the first quarter of 2024.
Net premiums earned were $245 million, relatively flat from $246 million in the fourth quarter of 2024 and up 2% from $241 million in the first quarter of 2024. The year-over-year increase is primarily driven by premium growth from attractive adjacencies and growth in primary insurance in-force, partially offset by higher ceded premiums.
Losses incurred for the first quarter of 2025 were $31 million and the loss ratio was 12%, compared to $24 million and 10%, respectively, in the fourth quarter of 2024 and $20 million and 8%, respectively, in the first quarter of 2024. The current quarter reserve release of $47 million from favorable cure performance and loss mitigation activities compares to a reserve release of $56 million and $54 million in the fourth quarter of 2024 and first quarter of 2024, respectively. The sequential and year-over-year increase in losses and the loss ratio were primarily driven by the lower reserve release in the quarter.
Operating expenses in the current quarter were $53 million and the expense ratio was 21%. This compared to $58 million and 24%, respectively, in the fourth quarter of 2024 and $53 million and 22%, respectively in the first quarter of 2024. The sequential decrease was primarily driven by lower incentive-based compensation.
Net investment income was $63 million, flat from $63 million in the fourth quarter of 2024 and up from $57 million in the first quarter of 2024, driven by the continuation of elevated interest rates and higher average invested assets.
Net investment gains (losses) in the quarter were $(3) million, as compared to $(7) million sequentially and $(7) million in the same period last year. The activity is primarily driven by the identification of assets that upon selling allow us to recoup losses through higher net investment income.
Annualized return on equity for the first quarter of 2025 was 13.1% and annualized adjusted operating return on equity was 13.4%. This compares to fourth quarter 2024 results of 13.0% and 13.5%, respectively, and to first quarter 2024 results of 13.8% and 14.2%, respectively.

Capital and Liquidity

Fitch Ratings upgraded the Insurer Financial Strength rating for EMICO to A from A- and also upgraded Enact’s senior debt rating to BBB. The outlook for both ratings is stable.
We announced two excess-of-loss reinsurance agreements with a panel of highly-rated reinsurers that will provide approximately $225 million and approximately $260 million of coverage on a portion of expected new insurance written for the 2025 and 2026 book years, respectively.
We paid approximately $28 million, or $0.185 per share, dividend in the first quarter.
EMICO completed a dividend of approximately $200 million in the first quarter that will primarily be used to support our ability to return capital to shareholders and bolster financial flexibility.
Enact Holdings, Inc. held $356 million of cash and cash equivalents plus $292 million of invested assets as of March 31, 2025. Combined cash and invested assets increased $108 million from the prior quarter, primarily due to a contribution from EMICO, partially offset by share buybacks and our quarterly dividend.
PMIERs sufficiency was 165% and $2.0 billion above the PMIERs requirements, compared to 167% and $2.1 billion above the PMIERs requirements in the fourth quarter of 2024.

Recent Events

We repurchased approximately 2.0 million shares at an average price of $33.38 for a total of approximately $66 million in the quarter. Additionally, through April 25, 2025, we repurchased 0.6 million shares at an average price of $34.53 for a total of $21 million and approximately $6 million remains of our $250 million repurchase authorization.
We announced today that the Company’s Board of Directors approved a new share repurchase program with authorization to purchase up to $350 million of common stock.
Additionally, the Board of Directors declared a 14% increase to our quarterly dividend from $0.185 to $0.21 per common share, payable on June 11, 2025, to shareholders of record on May 19, 2025.

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

Enact will discuss first quarter financial results in a conference call tomorrow, Thursday, May 1, 2025, at 8:00 a.m. (Eastern). Participants interested in joining the call’s live question and answer session are required to pre-register by clicking here to obtain your dial-in number and unique PIN. It is recommended to join at least 15 minutes in advance, although you may register ahead of the call and dial in at any time during the call. If you wish to join the call but do not plan to ask questions, a live webcast of the event will be available on our website, https://ir.enactmi.com/news-and-events/events.

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

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

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

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

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

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

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

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

	1Q25	4Q24	1Q24
REVENUES:
Premiums	$244,786	$245,735	$240,747
Net investment income	63,037	62,624	57,111
Net investment gains (losses)	(3,243)	(7,167)	(6,684)
Other income	2,196	584	402
Total revenues	306,776	301,776	291,576

LOSSES AND EXPENSES:
Losses incurred	30,541	23,813	19,501
Acquisition and operating expenses, net of deferrals	50,094	55,325	50,934
Amortization of deferred acquisition costs and intangibles	2,429	2,522	2,259
Interest expense	12,291	12,262	12,961
Total losses and expenses	95,355	93,922	85,655

INCOME BEFORE INCOME TAXES	211,421	207,854	205,921
Provision for income taxes	45,643	45,116	44,933
NET INCOME	$165,778	$162,738	$160,988

Net investment (gains) losses	3,243	7,167	6,684
Costs associated with reorganization	629	411	(42)
Taxes on adjustments	(813)	(1,591)	(1,395)
Adjusted Operating Income	$168,837	$168,725	$166,235

Loss ratio ⁽¹⁾	12%	10%	8%
Expense ratio ⁽²⁾	21%	24%	22%
Earnings Per Share Data:
Net Income per share
Basic	$1.09	$1.06	$1.01
Diluted	$1.08	$1.05	$1.01
Adj operating income per share
Basic	$1.11	$1.10	$1.05
Diluted	$1.10	$1.09	$1.04
Weighted-average common shares outstanding
Basic	151,831	153,537	158,818
Diluted	152,907	154,542	160,087

⁽¹⁾ The ratio of losses incurred to net earned premiums.

⁽²⁾ The ratio of acquisition and operating expenses, net of deferrals, and amortization of deferred acquisition costs and intangibles to net earned premiums. Expenses associated with strategic transaction preparations and restructuring costs increased the expense ratio by zero percentage points for the three-month period ended March 31, 2025, one percentage point for the three-month period ended December 31, 2024, and zero percentage points for the three-month period ended March 31, 2024.

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

Assets	1Q25	4Q24	1Q24
Investments:
Fixed maturity securities available-for-sale, at fair value	$5,815,337	$5,624,773	$5,351,138
Short term investments	3,696	3,367	9,963
Total investments	5,819,033	5,628,140	5,361,101
Cash and cash equivalents	635,269	599,432	614,330
Accrued investment income	49,654	49,595	43,450
Deferred acquisition costs	23,322	23,771	24,861
Premiums receivable	46,451	53,031	43,927
Other assets	103,351	102,549	126,644
Deferred tax asset	44,440	65,013	89,370
Total assets	$6,721,520	$6,521,531	$6,303,683

Liabilities and Shareholders’ Equity
Liabilities:
Loss reserves	$542,528	$524,715	$531,443
Unearned premiums	107,519	114,680	138,886
Other liabilities	208,667	142,990	173,500
Long-term borrowings	743,399	743,050	746,090
Total liabilities	1,602,113	1,525,435	1,589,919
Equity:
Common stock	1,508	1,523	1,577
Additional paid-in capital	2,007,776	2,076,788	2,264,198
Accumulated other comprehensive income	(152,482)	(207,455)	(237,477)
Retained earnings	3,262,605	3,125,240	2,685,466
Total equity	5,119,407	4,996,096	4,713,764
Total liabilities and equity	$6,721,520	$6,521,531	$6,303,683

Book value per share	$33.96	$32.80	$29.89
Book value per share excluding AOCI	$34.97	$34.16	$31.40

U.S. GAAP ROE ⁽¹⁾	13.1%	13.0%	13.8%
Net investment (gains) losses	0.3%	0.6%	0.6%
Costs associated with reorganization	0.0%	0.0%	0.0%
(Gains) losses on early extinguishment of debt	0.0%	0.0%	0.0%
Taxes on adjustments	(0.1)%	(0.1)%	(0.1)%
Adjusted Operating ROE⁽²⁾	13.4%	13.5%	14.2%

Debt to Capital Ratio	13%	13%	14%

⁽¹⁾ Calculated as annualized net income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity
⁽²⁾ Calculated as annualized adjusted operating income for the period indicated divided by the average of current period and prior periods’ ending total stockholders’ equity

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

The MIL Network –

May 1, 2025

MIL-OSI USA: Following Push From Luján and Ag Committee Democrats, Trump Administration Releases $1.3 Billion for Specialty Crop Producers

US Senate News:

Source: US Senator for New Mexico Ben Ray Luján
Washington, D.C. – U.S. Senator Ben Ray Luján (D-N.M.), Ranking Member of the Subcommittee on Food and Nutrition, Specialty Crops, Organics, and Research, issued the following statement after the U.S. Department of Agriculture (USDA) released $1.3 billion in assistance for specialty crop producers that was previously withheld:
“Our specialty crop producers provide high-quality, nutritious produce that feeds our nation and the world. Yet the Trump administration and Elon Musk recklessly suspended critical assistance that our producers rely on. This halt in funding was a direct blow to our agricultural industry and should never have happened.
“I called on the Trump administration to ensure our farmers, ranchers, and producers receive the support they need — and now, the administration has heeded that call. New Mexico’s specialty crop producers work tirelessly to put food on tables and support our signature crops, from pecans to chile. I’m relieved they will now regain access to the resources they need and deserve. Specialty crop producers are the backbone of U.S. agriculture, and I will continue defending them from attacks by this administration.”
Background on Senator Luján’s efforts to ensure assistance for New Mexico specialty crop producers, farmers, and ranchers:
Senator Luján and Agriculture Committee Democrats sent a letter to then-USDA Acting Secretary Gary Washington asking for clarity and to raise concerns regarding the impact of recent Executive Orders and Presidential Memo on the U.S. Department of Agriculture. 
“Farmers, ranchers, schools, and state governments have contacted my office in search of clarity on programs, websites, offices, and activities impacted by these orders. Conflicting information from the administration has added to the uncertainty, costing those who depend on the Department time and money,” said Senator Luján and Agriculture Committee Democrats. “The farmers, rural families, and businesses that depend on the Department need certainty to plan ahead for this growing season.”
Senator Luján and Agriculture Committee Democrats urged USDA Secretary Brooke Rollins to ensure the timely delivery of economic and disaster assistance to farmers, ranchers, and producers.
“Farmers of fruits, vegetables, and other specialty crops have also experienced difficult economic conditions and high input prices. Specialty crop producers have already applied for and received initial payment under the Marketing Assistance for Specialty Crops (MASC), and USDA should make the planned additional payments before we get into the growing season,” said Senator Luján and Agriculture Committee Democrats.

MIL OSI USA News –

May 1, 2025

MIL-OSI USA: TOMORROW: First Partner Siebel Newsom to celebrate Move Your Body, Calm Your Mind Day with students in Pasadena

Source: US State of California Governor

Apr 30, 2025

PASADENA — California First Partner Jennifer Siebel Newsom will join mental health professionals, athletes, and more than 600 students from two Pasadena Unified School District schools for a rally to celebrate Move Your Body, Calm Your Mind Day – a statewide day of action embracing the importance of movement, mindfulness, and play. The event will feature an action-packed morning of dancing, yoga, meditation, and drumboxing.

WHEN: Thursday, May 1 at 10:30 a.m.

**NOTE: This in-person event will not be streamed and will be open to credentialed media only. Media interested in attending must RSVP by clicking here no later than 8:30 a.m., May 1. Location information will be provided upon confirmation.

Media Advisories, Recent News

Recent news

Apr 30, 2025

News Sacramento, California – Governor Gavin Newsom today issued a proclamation declaring April 30, 2025, as “Apprenticeship Day.”The text of the proclamation and a copy can be found below. PROCLAMATIONNational Apprenticeship Day is a nationwide celebration…

Apr 30, 2025

News What you need to know: The state of California is providing LA City and County a new AI-powered e-check software free of charge to speed the pace at which local governments are approving building permits. LOS ANGELES – Leveraging the power of private sector…

Apr 30, 2025

News What you need to know: Governor Gavin Newsom and the Department of Housing and Community Development today announced the awards of $118.9 million in federal funding for 29 California rural and tribal communities to create more affordable housing and supportive…

MIL OSI USA News –

May 1, 2025

MIL-OSI Security: School Official Pleads Guilty to 2.9M Scheme to Defraud Veterans’ Education Programs

Source: United States Attorneys General 1

A Virginia career services manager for a school offering job training programs to veterans pleaded guilty today for his role in a scheme to defraud the Department of Veterans Affairs (VA) of nearly $3 million.

According to court documents, Jeffrey Williams, 37, of Alexandria, used false records to defraud the VA of millions of dollars from approximately July 2022 to May 2024. During that time, the defendant was a career services manager at an educational institution offering veterans educational programs in cyber that could be paid for by the VA. As part of the scheme, Williams created fraudulent employment offer letters, falsified certifications, and forged veterans’ signatures to make it appear as if veterans had attained the meaningful employment needed for the educational institution to receive tuition payments from the government. Williams caused the submission of hundreds of false documents to the VA, claiming approximately $2.9 million in fraudulent tuition payments for at least 189 veterans.

Williams pleaded guilty to one count of wire fraud and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The VA Office of Inspector General is investigating the case.

Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jordan Harvey for the Eastern District of Virginia are prosecuting the case.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Cumberland County Drug and Alcohol Rehabilitation Center Agrees to Pay $19.75 Million to Resolve False Claims Act Allegations

Source: Office of United States Attorneys

Camden, N.J. – Summit BHC New Jersey, LLC, d/b/a Seabrook, a drug and alcohol rehabilitation facility in Bridgeton, New Jersey, has agreed to pay $19.75 million to resolve allegations that it violated the federal False Claims Act, U.S. Attorney Alina Habba announced today. As alleged, Seabrook submitted claims to the Community Care Program of Veterans Health Administration (“VHA”) and New Jersey’s Medicaid program for short-term residential treatment and partial hospitalization care for which it was not properly licensed or contracted and misled State inspectors.

The settlement resolves allegations relating to the care provided and billed by Seabrook, principally to the VHA Community Care Program. The United States alleged that, during the period from January 1, 2022 through December 31, 2024, Seabrook provided services for which it had no license; sought to conceal those improperly performed services from state inspectors; failed to employ a sufficient number of properly-credentialed caregivers; failed to employ a sufficient number of caregivers credentialed in treating patients with both mental health and addiction issues; provided the same care to veterans it provided to other patients, while claiming to be providing specialized care; and kept false, inconsistent, and inadequate records of the care provided to veterans and other patients.

“Today’s resolution demonstrates once again this Office’s commitment to ensure that America’s veterans receive the care they deserve and for which the government has paid. Veterans and Medicaid recipients must receive care from fully qualified, licensed providers in facilities that meet state law in all respects. We stand ready to enforce these standards and protect the Americans who need this care.”

– U.S. Attorney Alina Habba

“This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “Providers who participate in the VA Community Care Program must be licensed and follow state and federal law when billing the VA. The VA OIG will continue to work with the U.S. Attorney’s Office and other law enforcement partners to thoroughly investigate providers who fail to meet these standards in providing healthcare to our nation’s veterans.”

“Our federal health care systems serve vulnerable populations, and by not providing the level of care they deserve that purpose is undermined,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, together with our law enforcement partners, will continue to vigorously pursue those who exploit government health programs.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former Seabrook employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this matter, the relator is receiving at least approximately $3,555,137.28 as her share of the recovery in this case.

Seabrook cooperated in the investigation and resolution of this matter, including by independently investigating the matter, implementing remedial measures, and disciplining responsible individuals.

The resolution was the result of efforts by the United States Attorney’s Office for the District of New Jersey and the Offices of Inspectors General for the Department of Veterans Affairs and Department of Health and Human Services.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Assistant U.S. Attorney Paul W. Kaufman of the Health Care Fraud Unit in the U.S. Attorney’s Office for the District of New Jersey.

The case is captioned United States ex rel. Coulter and the State of New Jersey v. Seabrook House, Inc., et al., Civil Action No. 23-cv-00451 (D.N.J.).

The claims resolved by the settlement are allegations only. There has been no determination of liability.

###

Counsel for Seabrook: Richard Westling, Epstein Becker Green, P.C. and Matthew Curley, Bass, Berry, & Sims, PLC

Counsel for Relator Jennifer Coulter: Ross Begelman and Marc Orlow, Javerbaum Wurgaft Hicks Kahn Wikstrom & Sinins, P.C.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Man Sentenced for Illegally Reentering the United States After Being Deported

Source: Office of United States Attorneys

A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.

Jose Solis-Alvarado, age 34, a citizen of Mexico illegally present in the United States and residing in Traer, Iowa, received the prison term after a March 10, 2025 guilty plea to one count of illegal reentry into the United States after having been deported.

At the guilty plea, Solis-Alvarado admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Solis-Alvarado was previously deported in 2010. On February 4, 2025, immigration officials learned Solis‑Alvarado had illegally returned to the United States and found him at the Benton County Jail following his arrest on state charges for operating while under the influence.

Solis-Alvarado was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Solis-Alvarado was sentenced to 85 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.

Solis-Alvarado is being held in the United States Marshal’s custody until he can be turned over to immigration officials.

The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated by Enforcement and Removal Operations of the United States Immigration and Customs Enforcement.

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

The case file number is 25-CR-9.

Follow us on X @USAO_NDIA.

MIL Security OSI –

May 1, 2025

MIL-OSI: FormFactor, Inc. Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

LIVERMORE, Calif., April 30, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the first quarter of fiscal 2025 ended March 29, 2025. Quarterly revenues were $171.4 million, a decrease of 9.6% compared to $189.5 million in the fourth quarter of fiscal 2024, and an increase of 1.6% from $168.7 million in the first quarter of fiscal 2024.

Foundry & Logic first-quarter demand increased low single digits sequentially
Experienced reduction in DRAM as export controls limited FormFactor’s ability to ship probe cards for advanced node designs to China
Closed acquisition of minority interest in FICT Limited, a key supplier of advanced probe card components

“As expected, FormFactor reported sequentially lower first-quarter revenue and profitability due to anticipated reductions in demand for both DRAM probe cards and Systems,” said Mike Slessor, CEO of FormFactor, Inc. “Longer-term, we remain confident in the growth prospects for FormFactor and the semiconductor industry overall, driven by the fundamental trends of Advanced Packaging, High-Bandwidth-Memory, and Co-Packaged Optics.”

The company also announced that its Board of Directors has authorized a $75 million stock repurchase plan. This new stock repurchase authorization will expire April 23, 2027, and may be suspended, modified or discontinued at any time. Under the new repurchase authorization, repurchases may be made both in the open market and through privately negotiated transactions.

First Quarter Highlights

On a GAAP basis, net income for the first quarter of fiscal 2025 was $6.4 million, or $0.08 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $9.7 million, or $0.12 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $21.8 million, or $0.28 per fully-diluted share. Gross margin for the first quarter of 2025 was 37.7%, compared with 38.8% in the fourth quarter of 2024, and 37.2% in the first quarter of 2024.

On a non-GAAP basis, net income for the first quarter of fiscal 2025 was $18.0 million, or $0.23 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $21.3 million, or $0.27 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $14.3 million, or $0.18 per fully-diluted share. On a non-GAAP basis, gross margin for the first quarter of 2025 was 39.2%, compared with 40.2% in the fourth quarter of 2024, and 38.7% in the first quarter of 2024.

A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

GAAP net cash provided by operating activities for the first quarter of fiscal 2025 was $23.5 million, compared to $35.9 million for the fourth quarter of fiscal 2024, and $33.0 million for the first quarter of fiscal 2024. Free cash flow for the first quarter of fiscal 2025 was $6.3 million, compared to free cash flow for the fourth quarter of fiscal 2024 of $28.8 million, and free cash flow for the first quarter of 2024 of $19.7 million. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

Outlook

Dr. Slessor added, “Although our sequential growth outlook is tempered by the uncertainty created by the current tariff situation, we expect to deliver double-digit sequential revenue growth, with increases across all our major served markets and segments.”

For the second quarter ending June 28, 2025, FormFactor is providing the following outlook*:

	GAAP	Reconciling Items**		Non-GAAP
Revenue	$190 million +/- $5 million		—	$190 million +/- $5 million
Gross Margin	38.5% +/- 1.5%	$3 million		40% +/- 1.5%
Net income per diluted share	$0.18 +/- $0.04		$0.12	$0.30 +/- $0.04

_{*This outlook assumes consistent foreign currency rates.}
_{**Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.}

We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

Use of Non-GAAP Financial Information:

To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and three months ended March 29, 2025, and for outlook provided before, as well as for the comparable periods of fiscal 2024, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

About FormFactor:

FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

Forward-looking Statements:

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, market trends, conditions in and the growth of the semiconductor industry and the Company’s performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and “prospect,” and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

Investor Contact:
Stan Finkelstein
Investor Relations
(925) 290-4273
ir@formfactor.com

FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025		December 28, 2024		March 30, 2024
Revenues	$	171,356	$	189,483	$	168,725
Cost of revenues		106,833		115,903		105,987
Gross profit		64,523		73,580		62,738
Operating expenses:
Research and development		27,800		30,504		28,627
Selling, general and administrative		33,454		35,226		33,079
Total operating expenses		61,254		65,730		61,706
Gain on sale of business		—		—		20,271
Operating income		3,269		7,850		21,303
Interest income, net		3,317		3,472		3,156
Other income, net		890		617		520
Income before income taxes		7,476		11,939		24,979
Provision for income taxes		1,075		2,234		3,198
Net income	$	6,401	$	9,705	$	21,781
Net income per share:
Basic	$	0.08	$	0.13	$	0.28
Diluted	$	0.08	$	0.12	$	0.28
Weighted-average number of shares used in per share calculations:
Basic		77,345		77,267		77,452
Diluted		77,884		77,982		78,490

FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
GAAP Gross Profit	$	64,523		$	73,580		$	62,738
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		542			555			586
Stock-based compensation		2,005			1,944			1,928
Restructuring charges		60			32			44
Non-GAAP Gross Profit	$	67,130		$	76,111		$	65,296

GAAP Gross Margin		37.7	%		38.8	%		37.2	%
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		0.3	%		0.4	%		0.4	%
Stock-based compensation		1.2	%		1.0	%		1.1	%
Restructuring charges		—	%		—	%		—	%
Non-GAAP Gross Margin		39.2	%		40.2	%		38.7	%

GAAP operating expenses	$	61,254		$	65,730		$	61,706
Adjustments:
Amortization of intangibles		(191	)		(191	)		(191	)
Stock-based compensation		(7,791	)		(8,269	)		(8,477	)
Restructuring charges		(2,823	)		(371	)		(49	)
Costs related to sale and acquisition of businesses		(217	)		(1,689	)		(646	)
Non-GAAP operating expenses	$	50,232		$	55,210		$	52,343

GAAP operating income	$	3,269		$	7,850		$	21,303
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		733			746			777
Stock-based compensation		9,796			10,213			10,405
Restructuring charges		2,883			403			93
Gain on sale of business, net of cost related to sale and acquisition of businesses		217			1,689			(19,625	)
Non-GAAP operating income	$	16,898		$	20,901		$	12,953

FORMFACTOR, INC. NON-GAAP FINANCIAL MEASURE RECONCILIATIONS (In thousands, except per share amounts) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
GAAP net income	$	6,401		$	9,705		$	21,781
Adjustments:
Amortization of intangibles and fixed asset fair value adjustments due to acquisitions		733			746			777
Stock-based compensation		9,796			10,213			10,405
Restructuring charges		2,883			415			93
Gain on sale of business, net of cost related to sale and acquisition of businesses		217			1,689			(19,625	)
Income tax effect of non-GAAP adjustments		(2,026	)		(1,445	)		913
Non-GAAP net income	$	18,004		$	21,323		$	14,344

GAAP net income per share:
Basic	$	0.08		$	0.13		$	0.28
Diluted	$	0.08		$	0.12		$	0.28

Non-GAAP net income per share:
Basic	$	0.23		$	0.28		$	0.19
Diluted	$	0.23		$	0.27		$	0.18

FORMFACTOR, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)

	Three Months Ended
	March 29, 2025			March 30, 2024
Cash flows from operating activities:
Net income	$	6,401		$	21,781
Selected adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		8,156			7,193
Amortization		674			640
Stock-based compensation expense		9,796			10,405
Provision for excess and obsolete inventories		2,879			3,146
Gain on sale of business		—			(20,271	)
Non-cash restructuring charges		2,102			—
Other activity impacting operating cash flows		(6,469	)		10,118
Net cash provided by operating activities		23,539			33,012
Cash flows from investing activities:
Acquisition of property, plant and equipment		(18,584	)		(13,436	)
Proceeds from sale of business		—			21,275
Purchase of equity investment		(67,156	)		—
Proceeds from (purchases of) marketable securities, net		1,080			(11,659	)
Net cash used in investing activities		(84,660	)		(3,820	)
Cash flows from financing activities:
Purchase of common stock through stock repurchase program		(22,135	)		(17,334	)
Proceeds from issuances of common stock		21,576			4,948
Principal repayments on term loans		(273	)		(266	)
Tax withholdings related to net share settlements of equity awards		(2,132	)		(1,840	)
Net cash used in financing activities		(2,964	)		(14,492	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		180			(1,592	)
Net increase (decrease) in cash, cash equivalents and restricted cash		(63,905	)		13,108
Cash, cash equivalents and restricted cash, beginning of period		197,206			181,273
Cash, cash equivalents and restricted cash, end of period	$	133,301		$	194,381

FORMFACTOR, INC. RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW (In thousands) (Unaudited)

	Three Months Ended
	March 29, 2025			December 28, 2024			March 30, 2024
Net cash provided by operating activities	$	23,539		$	35,913		$	33,012
Adjustments:
Sale of business and acquisition related payments in working capital		1,221			506			47
Cash paid for interest		92			93			100
Capital expenditures		(18,584	)		(7,663	)		(13,436	)
Free cash flow	$	6,268		$	28,849		$	19,723

FORMFACTOR, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)

	March 29, 2025			December 28, 2024
ASSETS
Current assets:
Cash and cash equivalents	$	129,889		$	190,728
Marketable securities		169,099			169,295
Accounts receivable, net of allowance for credit losses		98,605			104,294
Inventories, net		109,965			101,676
Restricted cash		967			3,746
Prepaid expenses and other current assets		42,716			35,389
Total current assets		551,241			605,128
Restricted cash		2,445			2,732
Operating lease, right-of-use-assets		20,054			22,579
Property, plant and equipment, net of accumulated depreciation		208,317			210,230
Equity investment		68,667			—
Goodwill		199,700			199,171
Intangibles, net		9,681			10,355
Deferred tax assets		92,759			92,012
Other assets		3,303			4,008
Total assets	$	1,156,167		$	1,146,215

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	64,536		$	62,287
Accrued liabilities		34,909			43,742
Current portion of term loan, net of unamortized issuance costs		1,113			1,106
Deferred revenue		14,996			15,847
Operating lease liabilities		8,461			8,363
Total current liabilities		124,015			131,345
Term loan, less current portion, net of unamortized issuance costs		11,927			12,208
Long-term operating lease liabilities		15,980			17,550
Deferred grant		18,000			18,000
Other liabilities		20,371			19,344
Total liabilities		190,293			198,447

Stockholders’ equity:
Common stock		77			77
Additional paid-in capital		844,488			837,586
Accumulated other comprehensive loss		(6,037	)		(10,840	)
Accumulated income		127,346			120,945
Total stockholders’ equity		965,874			947,768
Total liabilities and stockholders’ equity	$	1,156,167		$	1,146,215

About our Non-GAAP Financial Measures:

We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

Source: FormFactor, Inc.
FORM-F

The MIL Network –

May 1, 2025

MIL-OSI: Robinhood Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Revenues up 50% year-over-year to $927 million
Net Deposits grow to a record $18.0 billion, and Robinhood Gold Subscribers reached a record 3.2 million
Net Income up 114% year-over-year to $336 million
Diluted EPS up 106% year-over-year to $0.37
Board of directors increases share repurchase authorization by $500 million to $1.5 billion

MENLO PARK, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the first quarter of 2025, which ended March 31, 2025.

“This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” said Vlad Tenev, Chair and CEO of Robinhood. “Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”

“We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said Jason Warnick, Chief Financial Officer of Robinhood. “As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It’s also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”

First Quarter Results

Total net revenues increased 50% year-over-year to $927 million.
- Transaction-based revenues increased 77% year-over-year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.
- Net interest revenues increased 14% year-over-year to $290 million, primarily driven by growth in interest-earning assets and securities lending activity, partially offset by lower short-term interest rates.
- Other revenues increased 54% year-over-year to $54 million, primarily due to increased Robinhood Gold subscribers.
Net income increased 114% year-over-year to $336 million.
Diluted earnings per share (EPS) increased 106% year-over-year to $0.37.
Total operating expenses increased 21% year-over-year to $557 million.
- Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 16% year-over-year to $533 million, which includes costs related to TradePMR.
Adjusted EBITDA (non-GAAP) increased 90% year-over-year to $470 million.
Funded Customers increased by 1.9 million, or 8%, year-over-year to 25.8 million.
- Investment Accounts increased by 2.6 million, or 11%, year-over-year to 27.0 million.
Total Platform Assets¹ increased 70% year-over-year to $221 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
Net Deposits were $18.0 billion, an annualized growth rate of 37% relative to Total Platform Assets at the end of Q4 2024. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of Q1 2024.
Average Revenue Per User (ARPU) increased 39% year-over-year to $145.
Robinhood Gold Subscribers increased by 1.5 million, or 90%, year-over-year to 3.2 million.
Cash and cash equivalents totaled $4.4 billion compared with $4.7 billion at the end of Q1 2024.
Share repurchases were $322 million, representing 7.2 million shares of our Class A common stock at an average price per share of $44.87. This more than offset the 2.0 million shares of Class A common stock issued in connection with the acquisition of TradePMR.

__________________________________

¹ Total Platform Assets include $180 billion of Assets Under Custody and $41 billion of assets managed by Registered Investment Advisors (“RIAs”) using TradePMR’s platform that are not custodied by Robinhood. Refer to Key Performance Metrics for more detail.

Highlights

Robinhood executes on strategy with robust product velocity in Q1, releasing cutting-edge products for customers, with more in the pipeline

Enhanced Products for Active Traders – Robinhood continues to roll out advanced capabilities and tools for active traders aimed at making trading faster, clearer, and more intuitive. The desktop trading platform, Robinhood Legend, now features increased speed, support for index options and crypto, and new indicators and charts. In March, Robinhood expanded its prediction markets offering by launching a hub and giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. Over the last six months customers have traded more than 1 billion event contracts.

Increasing Wallet Share by Serving the Entirety of Customers’ Financial Needs – During its second annual Gold keynote event in March, Robinhood unveiled new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex. With plans to roll out to all customers in the coming weeks, Robinhood Strategies is already serving more than 40 thousand customers and managing more than $100 million in customer assets as of April 25, 2025. In February, Robinhood also closed its acquisition of TradePMR, an RIA custodial platform, with approximately $41 billion in assets managed by RIAs as of March 31, 2025.

Building a Global Financial Ecosystem – Robinhood continues to make progress internationally, with over 150 thousand customers across the UK and EU. The acquisition of globally-scaled cryptocurrency exchange Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions.

Robinhood Board of Directors Authorizes Additional $500 million in Share Repurchases – Following the authorization of a $1 billion share repurchase program announced in May 2024, the Robinhood board of directors has authorized an additional $500 million, bringing the program total to $1.5 billion. Through April 25, 2025, 20 million shares of Class A common stock have been repurchased at an average price of $33.40, representing a total $667 million. The remaining authorization now totals approximately $833 million which management expects to execute over the next roughly two years, with flexibility to accelerate if market conditions warrant.

Additional Q1 2025 Operating Data

Robinhood Retirement AUC increased over 200% year-over-year to a record $14.4 billion.
Cash Sweep increased 48% year-over-year to a record $28.2 billion.
Margin Book increased 115% year-over-year to a record $8.8 billion.
Equity Notional Trading Volumes increased 84% year-over-year to $413 billion.
Options Contracts Traded increased 46% year-over-year to a record 500 million.
Crypto Notional Trading Volumes increased over 28% year-over-year to $46 billion.

Conference Call and Livestream Information

Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET today, April 30, 2025. The video call can be accessed at investors.robinhood.com, along with the earnings press release and accompanying slide presentation. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp.

Following the call, a replay and transcript will also be available at investors.robinhood.com.

Financial Outlook

The paragraph below provides information on our 2025 expense plan and outlook. We are not providing a 2025 outlook for total operating expenses and have not reconciled our 2025 outlook for Adjusted Operating Expenses and SBC to the most directly comparable GAAP financial measure, total operating expenses, because we are unable to predict with reasonable certainty the impact of certain items without unreasonable effort. These items include, but are not limited to, provision for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2025.

Our 2025 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses. Our initial outlook for combined Adjusted Operating Expenses and SBC for full-year 2025 provided at Q4 2024 Earnings (February 12, 2025) was $2.0 billion to $2.1 billion, which did not include expenses related to our acquisition of TradePMR. As a result of the acquisition closing in the first quarter, we are updating our outlook to $2.085 billion to $2.185 billion to include $85 million of anticipated costs related to TradePMR. This expense outlook does not include provision for credit losses, costs related to our pending acquisition of Bitstamp, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals we may determine in the future are required, as we are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.

Actual results might differ materially from our outlook due to several factors, including the rate of growth in Funded Customers and our effectiveness to cross-sell products which affects variable marketing costs, the degree to which we are successful in managing credit losses and preventing fraud, and our ability to manage web-hosting expenses efficiently, among other factors. See “Non-GAAP Financial Measures” for more information on Adjusted Operating Expenses and SBC, including significant items that we believe are not indicative of our ongoing expenses that would be adjusted out of total operating expenses (GAAP) to get to Adjusted Operating Expenses and SBC (non-GAAP) should they occur.

About Robinhood

Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

“Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

Contacts

Investors: ir@robinhood.com	Press: press@robinhood.com

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)


	December 31,			March 31,
(in millions, except share and per share data)	2024			2025
Assets
Current assets:
Cash and cash equivalents	$	4,332		$	4,416
Cash, cash equivalents, and securities segregated under federal and other regulations		4,724			4,442
Receivables from brokers, dealers, and clearing organizations		471			267
Receivables from users, net		8,239			9,167
Securities borrowed		3,236			4,114
Deposits with clearing organizations		489			641
User-held fractional shares		2,530			2,531
Held-to-maturity investments		398			192
Prepaid expenses		75			89
Deferred customer match incentives		100			113
Other current assets		509			243
Total current assets		25,103			26,215
Property, software, and equipment, net		139			140
Goodwill		179			292
Intangible assets, net		38			109
Non-current deferred customer match incentives		195			238
Other non-current assets, including non-current prepaid expenses of $17 as of December 31, 2024 and March 31, 2025		533			523
Total assets	$	26,187		$	27,517
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	397		$	319
Payables to users		7,448			7,116
Securities loaned		7,463			9,098
Fractional shares repurchase obligation		2,530			2,531
Other current liabilities		266			367
Total current liabilities		18,104			19,431
Other non-current liabilities		111			133
Total liabilities		18,215			19,564
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.		—			—
Class A common stock, $0.0001 par value. 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024; 21,000,000,000 shares authorized, 767,854,773 shares issued and outstanding as of March 31, 2025.		—			—
Class B common stock, $0.0001 par value. 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024; 700,000,000 shares authorized, 116,720,012 shares issued and outstanding as of March 31, 2025.		—			—
Class C common stock, $0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.		—			—
Additional paid-in capital		12,008			11,652
Accumulated other comprehensive loss		(1	)		—
Accumulated deficit		(4,035	)		(3,699	)
Total stockholders’ equity		7,972			7,953
Total liabilities and stockholders’ equity	$	26,187		$	27,517

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended March 31,						Three Months Ended December 31,
(in millions, except share, per share, and percentage data)	2024		2025		YOY% Change		2024			QOQ% Change
Revenues:
Transaction-based revenues	$	329	$	583	77	%	$	672		(13	)%
Net interest revenues		254		290	14	%		296		(2	)%
Other revenues		35		54	54	%		46		17	%
Total net revenues		618		927	50	%		1,014		(9	)%

Operating expenses⁽¹⁾⁽²⁾:
Brokerage and transaction		35		50	43	%		50		—	%
Technology and development		196		214	9	%		208		3	%
Operations		28		31	11	%		29		7	%
Provision for credit losses		16		24	50	%		19		26	%
Marketing		67		105	57	%		82		28	%
General and administrative		118		133	13	%		70		90	%
Total operating expenses		460		557	21	%		458		22	%

Other income, net		4		1	(75	)%		2		(50	)%
Income before income taxes		162		371	129	%		558		(34	)%
Provision for (benefit from) income taxes		5		35	600	%		(358	)	NM
Net income	$	157	$	336	114	%	$	916		(63	)%
Net income attributable to common stockholders:
Basic	$	157	$	336			$	916
Diluted	$	157	$	336			$	916
Net income per share attributable to common stockholders:
Basic	$	0.18	$	0.38			$	1.04
Diluted	$	0.18	$	0.37			$	1.01
Weighted-average shares used to compute net income per share attributable to common stockholders:
Basic		875,319,407		884,577,603				883,884,676
Diluted		895,779,155		909,241,619				907,767,796

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

________________
⁽¹⁾ The following table presents operating expenses as a percent of total net revenues:

	Three Months Ended March 31,				Three Months Ended December 31,
	2024		2025		2024
Brokerage and transaction	5	%	6	%	5	%
Technology and development	32	%	23	%	20	%
Operations	5	%	3	%	3	%
Provision for credit losses	2	%	3	%	2	%
Marketing	11	%	11	%	8	%
General and administrative	19	%	14	%	7	%
Total operating expenses	74	%	60	%	45	%

⁽²⁾ The following table presents the SBC on our unaudited condensed consolidated statements of operations for the periods indicated:

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Brokerage and transaction	$	2	$	2	$	2
Technology and development		44		44		48
Operations		2		1		2
Marketing		2		2		2
General and administrative		12		24		23
Total SBC	$	62	$	73	$	77

ROBINHOOD MARKETS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Three Months Ended March 31,
(in millions)	2024			2025
Operating activities:
Net income	$	157		$	336
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		17			20
Provision for credit losses		16			24
Share-based compensation		62			73
Other		—			4
Changes in operating assets and liabilities:
Securities segregated under federal and other regulations		(692	)		397
Receivables from brokers, dealers, and clearing organizations		(118	)		206
Receivables from users, net		(796	)		(911	)
Securities borrowed		(505	)		(878	)
Deposits with clearing organizations		(247	)		(152	)
Current and non-current prepaid expenses		—			(13	)
Current and non-current deferred customer match incentives		(74	)		(56	)
Other current and non-current assets		(83	)		351
Accounts payable and accrued expenses		(46	)		(124	)
Payables to users		977			(332	)
Securities loaned		668			1,635
Other current and non-current liabilities		41			62
Net cash provided by (used in) operating activities		(623	)		642
Investing activities:
Purchases of property, software, and equipment		(2	)		(2	)
Capitalization of internally developed software		(7	)		(9	)
Business acquisition, net of cash and cash equivalents acquired		—			(150	)
Purchases of held-to-maturity investments		(171	)		—
Proceeds from maturities of held-to-maturity investments		154			208
Purchases of credit card receivables by Credit Card Funding Trust		(29	)		(549	)
Collections of purchased credit card receivables		11			511
Asset acquisition, net of cash acquired		(3	)		—
Net cash provided by (used in) investing activities		(47	)		9
Financing activities:
Proceeds from exercise of stock options		4			7
Taxes paid related to net share settlement of equity awards		(40	)		(120	)
Repurchase of Class A common stock		—			(322	)
Borrowings by the Credit Card Funding Trust		17			24
Change in principal collected from customers due to Coastal Bank		3			10
Payments of debt issuance costs		(14	)		(16	)
Net cash used in financing activities		(30	)		(417	)
Effect of foreign exchange rate changes on cash and cash equivalents		—			1
Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash		(700	)		235
Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period		9,346			8,695
Cash, cash equivalents, segregated cash, and restricted cash, end of the period	$	8,646		$	8,930
Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
Cash and cash equivalents, end of the period	$	4,717		$	4,416
Segregated cash and cash equivalents, end of the period		3,829			4,442
Restricted cash in other current assets, end of the period		83			54
Restricted cash in other non-current assets, end of the period		17			18
Cash, cash equivalents, segregated cash and restricted cash, end of the period	$	8,646		$	8,930
Supplemental disclosures:
Cash paid for interest	$	7		$	9
Cash paid for income taxes, net of refund received	$	2		$	29

Reconciliation of GAAP to Non-GAAP Results
(Unaudited)

	Three Months Ended March 31,						Three Months Ended December 31,
(in millions, except for percentage data)	2024			2025			2024
Net income	$	157		$	336		$	916
Net margin		25	%		36	%		90	%
Add:
Interest expenses related to credit facilities		6			6			6
Provision for (benefit from) income taxes		5			35			(358	)
Depreciation and amortization		17			20			22
EBITDA (non-GAAP)		185			397			586
Add:
SBC		62			73			77
Significant legal and tax settlements and reserves⁽¹⁾		—			—			(50	)
Adjusted EBITDA (non-GAAP)	$	247		$	470		$	613
Adjusted EBITDA margin (non-GAAP)		40	%		51	%		60	%

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Total operating expenses (GAAP)	$	460	$	557	$	458
Less:
SBC		62		73		77
Provision for credit losses⁽²⁾		—		24		—
Significant legal and tax settlements and reserves⁽¹⁾		—		—		(50	)
Adjusted Operating Expenses (Non-GAAP)	$	398	$	460	$	431

	Three Months Ended March 31,				Three Months Ended December 31,
(in millions)	2024		2025		2024
Total operating expenses (GAAP)	$	460	$	557	$	458
Less:
SBC		62		73		77
Provision for credit losses⁽²⁾		—		24		—
Significant legal and tax settlements and reserves⁽¹⁾		—		—		(50	)
Adjusted Operating Expenses (Non-GAAP)		398		460		431
Add:
SBC		62		73		77
Adjusted Operating Expenses and SBC (Non-GAAP)	$	460	$	533		508

________________

⁽¹⁾ Amounts for the three months ended December 31, 2024 included a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.
⁽²⁾ Starting in Q1 2025, Adjusted Operating Expenses and Adjusted Operating Expenses and SBC no longer include provision for credit losses.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the expected financial performance of Robinhood Markets, Inc. and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and operational plans, including (among others) statements regarding that our increased share repurchase authorization reflects management and the board’s confidence in our financial strength and future growth prospects; that we’re releasing cutting-edge products for customers with more in the pipeline; that Robinhood Strategies, Robinhood Banking, and Robinhood Cortex will connect customers to a world-class financial team; that the Robinhood Gold Credit Card continues to roll out to customers; that the acquisition of Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions; that management expects to execute the remaining share repurchase authorization over the next roughly two years, with flexibility to accelerate if market conditions warrant; and all statements and information under the heading “Financial Outlook”. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our rapid and continuing expansion, including continuing to introduce new products and services on our platforms as well as geographic expansion; the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for order flow (“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and the addition of our new fee-based model for cryptocurrency; our exposure to fluctuations in interest rates and rapidly changing interest rate environments; the difficulty of raising additional capital (to provide liquidity needs and support business growth and objectives) on reasonable terms, if at all; the need to maintain capital levels required by regulators and self-regulatory organizations; the risk that we might mishandle the cash, securities, and cryptocurrencies we hold on behalf of customers, and our exposure to liability for processing, operational, or technical errors in clearing functions; the impact of negative publicity on our brand and reputation; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; our dependence on key employees and a skilled workforce; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the effects of competition; our need to innovate and acquire or invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures; the risks associated with incorporating artificial intelligence technologies into some of our products and processes; the volatility of cryptocurrency prices and trading volumes; the risk that our platforms and services could be exploited to facilitate illegal payments; and the risk that substantial future sales of Class A common stock in the public market, or the perception that they may occur, could cause the price of our stock to fall. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, April 30, 2025, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

Non-GAAP Financial Measures

We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income, and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), Adjusted EBITDA Margin, Adjusted Operating Expenses, and Adjusted Operating Expenses and SBC. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this press release.

Adjusted EBITDA

Adjusted EBITDA is defined as net income, excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results.

The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted EBITDA Margin

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues. The most directly comparable GAAP measure is net margin (calculated as net income divided by total net revenues). We believe Adjusted EBITDA Margin provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Adjusted EBITDA Margin is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

Adjusted Operating Expenses

Adjusted Operating Expenses is defined as GAAP total operating expenses minus (i) SBC, (ii) provision for credit losses, (iii) significant legal and tax settlements and reserves, and (iv) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. We believe Adjusted Operating Expenses provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses no longer includes provision for credit losses.

Adjusted Operating Expenses and SBC

Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses minus (i) provision for credit losses, (ii) significant legal and tax settlements and reserves, and (iii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. Unlike Adjusted Operating Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC. We believe Adjusted Operating Expense and SBC provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses and SBC is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses and SBC no longer includes provision for credit losses.

Key Performance Metrics

In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

Our acquisition of TradePMR closed in February 2025. As a result, we are now reporting Total Platform Assets which includes our previously reported Assets Under Custody key performance metric. Total Platform Assets is our previously reported Assets Under Custody metric plus assets managed by RIAs using TradePMR’s platform that are not custodied by us (and therefore would not have been included in the previously reported Assets Under Custody metric). Additionally, we have included total RIA customers in our Funded Customers key performance metric, their accounts in the definition of Investment Accounts, and the appropriate RIA customer balances in our Cash Sweep and Margin Book additional operating metrics. RIA client figures are not included in Robinhood Retirement AUC. Due to data limitations, we have not included RIA client figures in our Net Deposits key performance metric.

Assets Under Custody

We define Assets Under Custody as the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. As mentioned above, we introduced a new Key Performance Metric called Total Platform Assets, which includes Assets Under Custody and is defined below.

Funded Customers

We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer. Individuals who are customers of RIAs that use the TradePMR platform are also considered Funded Customers as of the end of the period.

Total Platform Assets

We define Total Platform Assets as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), cash held by users in their accounts, net of receivables from users (previously reported as Assets Under Custody), and any such assets managed by RIAs using TradePMR’s platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in Total Platform Assets in any given period.

Net Deposits

We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Robinhood Gold subscription fees, and assets transferred off of our platforms for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions, although we have not restated amounts in prior periods as the impact to those figures was immaterial.

Average Revenue Per User (“ARPU”)

We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this press release represent ARPU annualized for each three-month period presented.

Robinhood Gold Subscribers

We define a Robinhood Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.

Additional Operating Metrics

Robinhood Retirement AUC

We define Robinhood Retirement AUC as the total Assets Under Custody in traditional individual retirement accounts (“IRAs”) and Roth IRAs. This does not include accounts with an RIA using TradePMR’s platform.

Cash Sweep

We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms. This includes balances from customers of RIAs using TradePMR’s platform.

Margin Book

We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts). This includes margin loan balances from customers of RIAs using TradePMR’s platform.

Notional Trading Volume

We define Notional Trading Volume or Notional Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time.

Options Contracts Traded

We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.

Glossary Terms

Investment Accounts

We define an Investment Account as a funded individual brokerage account, a funded joint investing account, a funded IRA, or an account with an RIA using TradePMR’s platform. As of March 31, 2025, a Funded Customer can have up to five Investment Accounts – individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, Roth IRA, and RIA custody account using TradePMR’s platform.

Robinhood Gold Adoption Rate

We define the Robinhood Gold adoption rate as end of period Robinhood Gold Subscribers divided by end of period Funded Customers.

Growth Rate and Annualized Growth Rate with respect to Net Deposits

Growth rate is calculated as aggregate Net Deposits over a specified 12 month period, divided by Total Platform Assets for the fiscal quarter that immediately precedes such 12 month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by Total Platform Assets for the immediately preceding quarter.

The MIL Network –

May 1, 2025

MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

OSWEGO, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the first quarter ended March 31, 2025.

The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $3.0 million or $0.41 per diluted share in the first quarter of 2025, compared to $2.1 million or $0.34 per share in the first quarter of 2024. In the fourth quarter of 2024, the Company reported net income attributable to common shareholders of $3.9 million or $0.63 per share, and included a benefit of approximately $1.4 million from a gain on the sale of its insurance agency, net of taxes and transaction-related expenses.

First Quarter 2025 Highlights and Key Developments

Total deposits were $1.26 billion at period end, and grew by 5.0% in the first quarter and 10.3% from March 31, 2024. Core deposits also grew to 78.31% of total deposits at period end from 76.86% on December 31, 2024 and 69.17% on March 31, 2024. In addition to funding lending activity in the quarter, the Company’s low-cost deposits enabled reductions in higher-cost borrowings to $44.6 million at period end, down 49.3% in the first quarter and 67.5% from March 31, 2024.
Total loans were $912.2 million at period end, compared to $919.0 million on December 31, 2024 and $891.5 million on March 31, 2024. Commercial loans were $542.7 million or 59.5% of total loans at period end, compared to $539.7 million on December 31, 2024 and $525.6 million on March 31, 2024.
Nonperforming loans declined to $13.2 million at period end, and improved by 40.1% during the first quarter and 32.7% from March 31, 2024. Nonperforming loans also declined to 1.45% of total loans at period end, and improved from 2.40% on December 31, 2024 and 2.20% on March 31, 2024.
Net interest income was $11.4 million, and increased $1.0 million from the linked quarter and $2.0 million from the first quarter of 2024, while net interest margin (“NIM”) expanded to 3.31% from 3.02% in the fourth quarter of 2024 and 2.75% in the year-ago period. Approximately $347,000 of net interest income and 10 basis points of NIM in the first quarter of 2025 reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.
Pre-tax, pre-provision (“PTPP”) net income grew to $4.2 million, and increased 26.0% from the linked quarter and 16.9% from the year-ago period. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.
The efficiency ratio improved to 66.84%, down from 72.01% in the linked quarter and 68.29% in the year-ago period. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

“Pathfinder’s solid first quarter results reflect the strength of our balance sheet and our growing core deposit franchise. Our continued focus on disciplined loan and deposit pricing has helped expand net interest margin in a challenging economic environment while our efforts toward optimizing non-interest expenses have improved our efficiency measures,” said President and Chief Executive Officer James A. Dowd. “We remain deeply committed to strengthening our proactive credit risk management practices and view our current efforts as the beginning of a sustained, long-term strategy to enhance the quality of our loan portfolio.”

Dowd added, “Our strong results this year and the close relationships we’ve built with businesses and neighbors throughout Central New York give us good reason to feel optimistic. Major investments in our region’s growing tech sector are creating new opportunities, and we’re proud to be part of that momentum. At the same time, we’re staying close to our customers and keeping a careful eye on how recent economic changes and national policy decisions are affecting families and local businesses across our communities.”

Net Interest Income and Net Interest Margin
First quarter 2025 net interest income was $11.4 million, an increase of $1.0 million, or 10.0%, from the fourth quarter of 2024. A decrease in interest and dividend income of $85,000 from the linked quarter was primarily attributed to average yield decreases of 43 basis points on tax-exempt investment securities and 25 basis points on taxable investment securities, partially offset by a 10 basis points increase in the average yield on loans that included 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees. The corresponding decreases in income from tax-exempt and taxable investment securities from the linked quarter were $43,000 and $198,000, respectively. The increase in interest from loans of $149,000 from the prior quarter reflected a benefit of approximately $347,000, including $247,000 of 2024 interest recovered from loans removed from nonaccrual status and $100,000 of first quarter 2025 prepayment fees.

A decrease in interest expense of $1.1 million from the linked quarter was primarily attributed to average cost decreases of 36 basis points for interest-bearing deposits and 143 basis points for borrowings. The corresponding decreases in deposits and borrowings expense from the linked quarter were $878,000 and $226,000, respectively. These reductions reflect continued changes in the Bank’s funding mix, including growing core deposits, as well as deliberate deposit pricing adjustments and significant reductions in borrowings.

Net interest margin was 3.31% in the first quarter of 2025 compared to 3.02% in the linked quarter. The increase reflected significant reductions in deposit and borrowing costs, as well as a benefit of 10 basis points from 2024 recovered interest and first quarter 2025 prepayment fees.

Noninterest Income
First quarter 2025 noninterest income totaled $1.2 million and no longer includes contributions from the insurance agency business sold in October 2024. Linked quarter noninterest income totaled $4.9 million, including $3.2 million in non-recurring pre-tax gains and revenues associated with the sale of the Company’s insurance agency in 2024. First quarter 2024 noninterest income totaled $1.7 million, including $397,000 in insurance revenue.

Compared to the linked quarter, first quarter 2025 noninterest income reflected a reduction of $264,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses and seasonal reductions estimated at $100,000, as well as decreases of $31,000 in service charges on deposit accounts and $7,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, first quarter 2025 noninterest income also reflected increases of $52,000 in net realized gains on sales of marketable equity securities and $26,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $257,000 in net realized gains on sales and redemptions of investment securities.

Compared to the year-ago period, first quarter 2025 noninterest income included increases of $65,000 in service charges on deposit accounts, $13,000 in loan servicing fees, and $5,000 in earnings and gain on BOLI, as well as a decline of $118,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses related to prior periods. Noninterest income growth from the year-ago quarter also reflected a $140,000 decrease in net realized losses on sales and redemptions of investment securities and increases of $110,000 in net realized gains on sales of marketable equity securities and $47,000 in gains on sales of loans and foreclosed real estate.

Noninterest Expense
Noninterest expense totaled $8.4 million in the first quarter of 2025 and no longer includes costs for the insurance agency business sold in October 2024. Noninterest expense was $8.5 million in the linked quarter and $7.7 million in the year-ago period, including expenses associated with the insurance agency of $456,000 and $285,000, respectively.

Salaries and benefits were $4.5 million in the first quarter of 2025, increasing $327,000 from the linked quarter and $121,000 from the year-ago period. The increase from the linked quarter reflected a $174,000 increase in stock-based compensation and a $96,000 increase in payroll tax. The increase from the first quarter of 2024 was primarily attributed to a $95,000 increase in stock-based compensation and $123,000 in other salary and benefits expenses associated with personnel in the East Syracuse branch acquired in July 2024.

Building and occupancy was $1.3 million in the first quarter of 2025, increasing $93,000 and $531,000 from the linked and year-ago quarters, respectively. The increase from the linked quarter reflected an $89,000 seasonal increase in utilities and snow removal expenses. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

Data processing expense was $666,000 in the first quarter of 2025, decreasing $55,000 from the linked quarter and increasing $138,000 from the year-ago period. The decrease from the fourth quarter of 2024 was primarily attributed to a $42,000 ATM processing expense for new customer card issuances. The increase from the first quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

Annualized noninterest expense represented 2.33% of average assets in the first quarter of 2025, compared to 2.33% and 2.16% in the linked and year-ago periods, including costs associated with transactions of the divested insurance agency business. The efficiency ratio was 66.84% in the first quarter of 2025, compared to 72.01% and 68.29% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

Net Income
For the first quarter of 2025, net income attributable to common shareholders was $3.0 million, or $0.48 per basic share and $0.41 per diluted share. The difference between basic and diluted earnings per share reflects the accounting impact of restricted stock units granted to senior executive officers during the period under the 2024 Equity Incentive Plan, which was approved by shareholders at the 2024 annual meeting. Linked quarter net income was $3.9 million, including a net benefit of approximately $1.4 million from the gain on the sale of its insurance agency, or $0.63 per basic and diluted share. First quarter 2024 net income totaled $2.2 million or $0.34 per basic and diluted share.

Statement of Financial Condition
As of March 31, 2025, the Company’s statement of financial condition reflects total assets of $1.50 billion, compared to $1.47 billion and $1.45 billion recorded on December 31, 2024 and March 31, 2024, respectively.

Loans totaled $912.2 million on March 31, 2025, decreasing 0.7% during the first quarter and increasing 2.3% from one year prior. Consumer and residential loans totaled $371.0 million on March 31, 2025, decreasing 2.6% during the first quarter and increasing 1.2% from one year prior. Commercial loans totaled $542.7 million on March 31, 2025, increasing 0.6% during the first quarter and 3.3% from one year prior.

With respect to liabilities, deposits totaled $1.26 billion on March 31, 2025, increasing 5.0% during the first quarter and 10.3% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $44.6 million on March 31, 2025 as compared to $88.1 million on December 31 and $137.4 million on March 31, 2024.

Shareholders’ equity totaled $124.9 million on March 31, 2025, increasing $3.4 million or 2.8% in the first quarter and increasing $3.1 million or 2.5% from one year prior. Compared to the prior quarter, the first quarter 2025 increase primarily reflects a $2.3 million increase in retained earnings, a $712,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $353,000 increase in additional paid in capital. The noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company’s 51% ownership interest in the insurance agency.

Asset Quality
The Company’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

Nonperforming loans were $13.2 million or 1.45% of total loans on March 31, 2025, improving from $22.1 million or 2.40% of total loans on December 31, 2024 and $19.7 million or 2.20% of total loans on March 31, 2024.

Net charge offs (“NCOs”) after recoveries were $340,000 or an annualized 0.15% of average loans in the first quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans offsetting recoveries in each of these categories. NCOs were $1.0 million or an annualized 0.44% of average loans in the linked quarter and $30,000 or 0.01% in the prior year period.

Provision for credit loss expense was $457,000 in the first quarter of 2025 reflecting lower levels of nonperforming loans and NCOs in the period and qualitative factors in the Company’s reserve model. The provision was $988,000 and $726,000 in the linked and year-ago quarters, respectively.

The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.4 million on March 31, 2025, compared to $17.2 million on December 31, 2024 and $16.7 million on March 31, 2024. As a percentage of total loans, ACL represented 1.91% on March 31, 2025, 1.88% on December 31, 2024, and 1.87% on March 31, 2024.

Liquidity
The Company has diligently ensured a strong liquidity profile as of March 31, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.26 billion on March 31, 2025, $1.20 billion on December 31, 2024, and $1.15 billion on March 31, 2024. Core deposits represented 78.31% of total deposits on March 31, 2025, 76.86% on December 31, 2024, and 69.17% on March 31, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $133.3 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.6 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

Cash Dividend Declared
On March 31, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by April 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on May 9, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

Evaluating the Company’s market performance, the closing stock price as of March 31, 2025 stood at $16.44 per share. This positions the annualized dividend yield at 2.43%.

About Pathfinder Bancorp, Inc.

Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At March 31, 2025, the Oswego-headquartered Company had assets of $1.50 billion, loans of $912.2 million, and deposits of $1.26 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

Forward-Looking Statements
Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

Investor/Media Contacts
James A. Dowd, President, CEO
Justin K. Bigham, Senior Vice President, CFO
Telephone: (315) 343-0057

PATHFINDER BANCORP, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2025			2024
SELECTED BALANCE SHEET DATA:	March 31,			December 31,			September 30,			June 30,			March 31,
ASSETS:
Cash and due from banks	$	18,606		$	13,963		$	18,923		$	12,022		$	13,565
Interest-earning deposits		32,862			17,609			16,401			19,797			15,658
Total cash and cash equivalents		51,468			31,572			35,324			31,819			29,223
Available-for-sale securities, at fair value		284,051			269,331			271,977			274,977			279,012
Held-to-maturity securities, at amortized cost		155,704			158,683			161,385			166,271			172,648
Marketable equity securities, at fair value		4,401			4,076			3,872			3,793			3,342
Federal Home Loan Bank stock, at cost		2,906			4,590			5,401			8,702			7,031
Loans		912,150			918,986			921,660			888,263			891,531
Less: Allowance for credit losses		17,407			17,243			17,274			16,892			16,655
Loans receivable, net		894,743			901,743			904,386			871,371			874,876
Premises and equipment, net		19,233			19,009			18,989			18,878			18,332
Assets held-for-sale		–			–			–			3,042			3,042
Operating lease right-of-use assets		1,356			1,391			1,425			1,459			1,493
Finance lease right-of-use assets		16,478			16,676			16,873			4,004			4,038
Accrued interest receivable		6,748			6,881			6,806			7,076			7,170
Foreclosed real estate		–			–			–			60			82
Intangible assets, net		5,832			5,989			6,217			76			80
Goodwill		5,056			5,056			5,752			4,536			4,536
Bank owned life insurance		24,889			24,727			24,560			24,967			24,799
Other assets		22,472			25,150			20,159			25,180			23,968
Total assets	$	1,495,337		$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Deposits:
Interest-bearing deposits	$	1,061,166		$	990,805		$	986,103		$	932,132		$	969,692
Noninterest-bearing deposits		203,314			213,719			210,110			169,145			176,421
Total deposits		1,264,480			1,204,524			1,196,213			1,101,277			1,146,113
Short-term borrowings		27,000			61,000			60,315			127,577			91,577
Long-term borrowings		17,628			27,068			39,769			45,869			45,869
Subordinated debt		30,156			30,107			30,057			30,008			29,961
Accrued interest payable		844			546			236			2,092			1,963
Operating lease liabilities		1,560			1,591			1,621			1,652			1,682
Finance lease liabilities		16,655			16,745			16,829			4,359			4,370
Other liabilities		12,118			11,810			16,986			9,203			9,505
Total liabilities		1,370,441			1,353,391			1,362,026			1,322,037			1,331,040
Shareholders’ equity:
Voting common stock shares issued and outstanding		4,761,182			4,745,366			4,719,788			4,719,788			4,719,788
Voting common stock		48			47			47			47			47
Non-Voting common stock		14			14			14			14			14
Additional paid in capital		53,103			52,750			53,231			53,182			53,151
Retained earnings		80,163			77,816			73,670			78,936			77,558
Accumulated other comprehensive loss		(8,432	)		(9,144	)		(6,716	)		(8,786	)		(8,862	)
Unearned ESOP shares		–			–			–			(45	)		(90	)
Total Pathfinder Bancorp, Inc. shareholders’ equity		124,896			121,483			120,246			123,348			121,818
Noncontrolling interest		–			–			854			826			814
Total equity		124,896			121,483			121,100			124,174			122,632
Total liabilities and shareholders’ equity	$	1,495,337		$	1,474,874		$	1,483,126		$	1,446,211		$	1,453,672

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
SELECTED INCOME STATEMENT DATA:	Q1			Q4			Q3			Q2			Q1
Interest and dividend income:
Loans, including fees	$	13,672		$	13,523		$	14,425		$	12,489		$	12,268
Debt securities:
Taxable		5,185			5,312			5,664			5,736			5,607
Tax-exempt		402			445			469			498			508
Dividends		93			164			149			178			129
Federal funds sold and interest-earning deposits		89			82			492			121			98
Total interest and dividend income		19,441			19,526			21,199			19,022			18,610
Interest expense:
Interest on deposits		6,945			7,823			7,633			7,626			7,411
Interest on short-term borrowings		545			700			1,136			1,226			1,114
Interest on long-term borrowings		65			136			202			201			194
Interest on subordinated debt		475			490			496			489			491
Total interest expense		8,030			9,149			9,467			9,542			9,210
Net interest income		11,411			10,377			11,732			9,480			9,400
Provision for (benefit from) credit losses:
Loans		504			988			9,104			304			710
Held-to-maturity securities		–			(5	)		(31	)		(74	)		15
Unfunded commitments		(47	)		5			(104	)		60			1
Total provision for credit losses		457			988			8,969			290			726
Net interest income after provision for credit losses		10,954			9,389			2,763			9,190			8,674
Noninterest income:
Service charges on deposit accounts		374			405			392			330			309
Earnings and gain on bank owned life insurance		162			169			361			167			157
Loan servicing fees		101			96			79			112			88
Net realized (losses) gains on sales and redemptions of investment securities		(8	)		249			(188	)		16			(148	)
Gain on asset sale ^{1 & 2}		–			3,169			–			–			–
Net realized gains (losses) on sales of marketable equity securities		218			166			62			(139	)		108
Gains on sales of loans and foreclosed real estate		65			39			90			40			18
Loss on sale of premises and equipment		–			–			(36	)		–			–
Debit card interchange fees		1			265			300			191			119
Insurance agency revenue ¹		–			49			367			260			397
Other charges, commissions & fees		284			299			280			234			689
Total noninterest income		1,197			4,906			1,707			1,211			1,737
Noninterest expense:
Salaries and employee benefits		4,450			4,123			4,959			4,399			4,329
Building and occupancy		1,347			1,254			1,134			914			816
Data processing		666			721			672			550			528
Professional and other services		606			608			1,820			696			562
Advertising		141			218			165			116			105
FDIC assessments		229			231			228			228			229
Audits and exams		114			123			123			123			170
Insurance agency expense ¹		–			456			308			232			285
Community service activities		11			19			20			39			52
Foreclosed real estate expenses		21			20			27			30			25
Other expenses		691			771			803			581			605
Total noninterest expense		8,433			8,544			10,259			7,908			7,706
Income (loss) before provision for income taxes		3,718			5,751			(5,789	)		2,493			2,705
Provision (benefit) for income taxes		744			492			(1,173	)		481			532
Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.		2,974			5,259			(4,616	)		2,012			2,173
Net income attributable to noncontrolling interest ¹		–			1,352			28			12			53
Net income (loss) attributable to Pathfinder Bancorp Inc.	$	2,974		$	3,907		$	(4,644	)	$	2,000		$	2,120
Voting Earnings per common share – basic	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Voting Earnings per common share – diluted	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Series A Non-Voting Earnings per common share- basic	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Series A Non-Voting Earnings per common share- diluted	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Dividends per common share (Voting and Series A Non-Voting)	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10

¹ Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. The Company sold its 51% membership interest in the Agency in October 2024.
² The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
FINANCIAL HIGHLIGHTS:	Q1			Q4			Q3			Q2			Q1
Selected Ratios:
Return on average assets		0.81	%		1.07	%		-1.25	%		0.56	%		0.59	%
Return on average common equity		9.64	%		12.85	%		-14.79	%		6.49	%		7.01	%
Return on average equity		9.64	%		12.85	%		-14.79	%		6.49	%		7.01	%
Return on average tangible common equity ¹		10.52	%		14.17	%		-15.28	%		6.78	%		7.32	%
Net interest margin		3.31	%		3.02	%		3.34	%		2.78	%		2.75	%
Loans / deposits		72.14	%		76.29	%		77.05	%		80.66	%		77.79	%
Core deposits/deposits ²		78.31	%		76.86	%		77.45	%		67.98	%		69.17	%
Annualized non-interest expense / average assets		2.33	%		2.33	%		2.75	%		2.19	%		2.16	%
Commercial real estate / risk-based capital ³		182.62	%		186.73	%		189.47	%		169.73	%		163.93	%
Efficiency ratio ¹		66.84	%		72.01	%		75.28	%		74.08	%		68.29	%

Other Selected Data:
Average yield on loans		5.97	%		5.87	%		6.31	%		5.64	%		5.48	%
Average cost of interest bearing deposits		2.76	%		3.12	%		3.11	%		3.21	%		3.07	%
Average cost of total deposits, including non-interest bearing		2.29	%		2.59	%		2.59	%		2.72	%		2.61	%
Deposits/branch ⁴	$	105,373		$	100,377		$	99,684		$	100,116		$	104,192
Pre-tax, pre-provision net income ¹	$	4,183		$	3,321		$	3,368		$	2,767		$	3,579
Total revenue ¹	$	12,616		$	11,865		$	13,627		$	10,675		$	11,285

Share and Per Share Data:
Cash dividends per share	$	0.10		$	0.10		$	0.10		$	0.10		$	0.10
Book value per common share	$	20.33		$	19.83		$	19.71		$	20.22		$	19.97
Tangible book value per common share ¹	$	18.56		$	18.03		$	17.75		$	19.46		$	19.21
Basic and diluted weighted average shares outstanding – Voting		4,749			4,733			4,714			4,708			4,701
Basic earnings per share – Voting ⁵	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Diluted earnings per share – Voting ⁵	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Basic and diluted weighted average shares outstanding – Series A Non-Voting		1,380			1,380			1,380			1,380			1,380
Basic earnings per share – Series A Non-Voting ⁵	$	0.48		$	0.63		$	(0.75	)	$	0.32		$	0.34
Diluted earnings per share – Series A Non-Voting ⁵	$	0.41		$	0.63		$	(0.75	)	$	0.32		$	0.34
Common shares outstanding at period end		6,144			6,126			6,100			6,100			6,100

Pathfinder Bancorp, Inc. Capital Ratios:
Company tangible common equity to tangible assets ¹		7.68	%		7.54	%		7.36	%		8.24	%		8.09	%
Company Total Core Capital (to Risk-Weighted Assets)		15.89	%		15.66	%		15.55	%		16.19	%		16.23	%
Company Tier 1 Capital (to Risk-Weighted Assets)		12.24	%		12.00	%		11.84	%		12.31	%		12.33	%
Company Tier 1 Common Equity (to Risk-Weighted Assets)		11.75	%		11.51	%		11.33	%		11.83	%		11.85	%
Company Tier 1 Capital (to Assets)		8.82	%		8.64	%		8.29	%		9.16	%		9.16	%

Pathfinder Bank Capital Ratios:
Bank Total Core Capital (to Risk-Weighted Assets)		14.86	%		14.65	%		14.52	%		16.04	%		15.65	%
Bank Tier 1 Capital (to Risk-Weighted Assets)		13.61	%		13.40	%		13.26	%		14.79	%		14.39	%
Bank Tier 1 Common Equity (to Risk-Weighted Assets)		13.61	%		13.40	%		13.26	%		14.79	%		14.39	%
Bank Tier 1 Capital (to Assets)		9.80	%		9.64	%		9.13	%		10.30	%		10.13	%

¹ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
² Non-brokered deposits excluding certificates of deposit of $250,000 or more.
³ Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
⁴ Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.
⁵ Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
ASSET QUALITY:	Q1			Q4			Q3			Q2			Q1
Total loan charge-offs	$	508		$	1,191		$	8,812		$	112		$	68
Total recoveries		168			171			90			46			38
Net loan charge-offs		340			1,020			8,722			66			30
Allowance for credit losses at period end		17,407			17,243			17,274			16,892			16,655
Nonperforming loans at period end		13,232			22,084			16,170			24,490			19,652
Nonperforming assets at period end	$	13,232		$	22,084		$	16,170		$	24,550		$	19,734
Annualized net loan charge-offs to average loans		0.15	%		0.44	%		3.82	%		0.03	%		0.01	%
Allowance for credit losses to period end loans		1.91	%		1.88	%		1.87	%		1.90	%		1.87	%
Allowance for credit losses to nonperforming loans		131.55	%		78.08	%		106.83	%		68.98	%		84.75	%
Nonperforming loans to period end loans		1.45	%		2.40	%		1.75	%		2.76	%		2.20	%
Nonperforming assets to period end assets		0.88	%		1.50	%		1.09	%		1.70	%		1.36	%

	2025			2024
LOAN COMPOSITION:	March 31,			December 31,			September 30,			June 30,			March 31,
1-4 family first-lien residential mortgages	$	243,854		$	251,373		$	255,235		$	250,106		$	252,026
Residential construction		3,162			4,864			4,077			309			1,689
Commercial real estate		381,479			377,619			378,805			370,361			363,467
Commercial lines of credit		65,074			67,602			64,672			62,711			67,416
Other commercial and industrial		91,644			89,800			88,247			90,813			91,178
Paycheck protection program loans		96			113			125			136			147
Tax exempt commercial loans		4,446			4,544			2,658			3,228			3,374
Home equity and junior liens		52,315			51,948			52,709			35,821			35,723
Other consumer		71,681			72,710			76,703			75,195			77,106
Subtotal loans		913,751			920,573			923,231			888,680			892,126
Deferred loan fees		(1,601	)		(1,587	)		(1,571	)		(417	)		(595	)
Total loans	$	912,150		$	918,986		$	921,660		$	888,263		$	891,531

	2025		2024
DEPOSIT COMPOSITION:	March 31,		December 31,		September 30,		June 30,		March 31,
Savings accounts	$	129,898	$	128,753	$	129,053	$	106,048	$	111,465
Time accounts		349,673		360,716		352,729		368,262		378,103
Time accounts in excess of $250,000		149,922		142,473		140,181		117,021		114,514
Money management accounts		10,774		11,583		11,520		12,154		11,676
MMDA accounts		306,281		239,016		250,007		193,915		215,101
Demand deposit interest-bearing		109,941		101,080		97,344		128,168		134,196
Demand deposit noninterest-bearing		203,314		213,719		210,110		169,145		176,434
Mortgage escrow funds		4,677		7,184		5,269		6,564		4,624
Total deposits	$	1,264,480	$	1,204,524	$	1,196,213	$	1,101,277	$	1,146,113

The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

		2025		2024
SELECTED AVERAGE BALANCES:	Q1			Q4			Q1
Interest-earning assets:
Loans	$	916,207		$	920,855		$	895,335
Taxable investment securities		416,558			412,048			431,114
Tax-exempt investment securities		34,475			34,918			29,171
Fed funds sold and interest-earning deposits		12,939			5,115			13,873
Total interest-earning assets		1,380,179			1,372,936			1,369,493
Noninterest-earning assets:
Other assets		114,882			112,654			94,677
Allowance for credit losses		(17,413	)		(17,145	)		(16,081	)
Net unrealized losses on available-for-sale securities		(9,947	)		(8,534	)		(11,187	)
Total assets	$	1,467,701		$	1,459,911		$	1,436,902
Interest-bearing liabilities:
NOW accounts	$	111,643		$	102,862		$	99,688
Money management accounts		10,906			11,371			11,653
MMDA accounts		256,186			257,429			213,897
Savings and club accounts		129,769			128,169			112,719
Time deposits		498,963			504,009			524,368
Subordinated loans		30,123			30,076			29,930
Borrowings		70,575			68,391			137,882
Total interest-bearing liabilities		1,108,165			1,102,307			1,130,137
Noninterest-bearing liabilities:
Demand deposits		206,137			206,521			169,748
Other liabilities		29,961			29,494			15,986
Total liabilities		1,344,263			1,338,322			1,315,871
Shareholders’ equity		123,438			121,589			121,031
Total liabilities & shareholders’ equity	$	1,467,701		$	1,459,911		$	1,436,902

		2025		2024
SELECTED AVERAGE YIELDS:	Q1			Q4			Q1
Interest-earning assets:
Loans		5.97	%		5.87	%		5.48	%
Taxable investment securities		5.07	%		5.32	%		5.32	%
Tax-exempt investment securities		4.66	%		5.10	%		6.97	%
Fed funds sold and interest-earning deposits		2.75	%		6.41	%		2.83	%
Total interest-earning assets		5.63	%		5.69	%		5.44	%
Interest-bearing liabilities:
NOW accounts		1.07	%		1.19	%		1.06	%
Money management accounts		0.11	%		0.11	%		0.10	%
MMDA accounts		3.06	%		3.23	%		3.61	%
Savings and club accounts		0.25	%		0.26	%		0.26	%
Time deposits		3.69	%		4.25	%		3.92	%
Subordinated loans		6.31	%		6.52	%		6.56	%
Borrowings		3.46	%		4.89	%		3.79	%
Total interest-bearing liabilities		2.90	%		3.32	%		3.26	%
Net interest rate spread		2.73	%		2.37	%		2.18	%
Net interest margin		3.31	%		3.02	%		2.75	%
Ratio of average interest-earning assets to average interest-bearing liabilities		124.55	%		124.55	%		121.18	%

The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

		2025		2024
NON-GAAP RECONCILIATIONS:	Q1			Q4			Q3			Q2			Q1
Tangible book value per common share:
Total equity	$	124,896		$	121,483		$	120,246		$	123,348		$	121,818
Intangible assets		(10,888	)		(11,045	)		(11,969	)		(4,612	)		(4,616	)
Tangible common equity (non-GAAP)		114,008			110,438			108,277			118,736			117,202
Common shares outstanding		6,144			6,126			6,100			6,100			6,100
Tangible book value per common share (non-GAAP)	$	18.56		$	18.03		$	17.75		$	19.46		$	19.21
Tangible common equity to tangible assets:
Tangible common equity (non-GAAP)	$	114,008		$	110,438		$	108,277		$	118,736		$	117,202
Tangible assets		1,484,449			1,463,829			1,471,157			1,441,599			1,449,056
Tangible common equity to tangible assets ratio (non-GAAP)		7.68	%		7.54	%		7.36	%		8.24	%		8.09	%
Return on average tangible common equity:
Average shareholders’ equity	$	123,438		$	121,589		$	125,626		$	123,211		$	121,031
Average intangible assets		10,991			11,907			4,691			4,614			4,619
Average tangible equity (non-GAAP)		112,447			109,682			120,935			118,597			116,412
Net income (loss)		2,974			3,907			(4,644	)		2,000			2,120
Net income (loss), annualized	$	11,831		$	15,543		$	(18,475	)	$	8,044		$	8,527
Return on average tangible common equity (non-GAAP)¹		10.52	%		14.17	%		-15.28	%		6.78	%		7.32	%
Revenue, pre-tax, pre-provision net income, and efficiency ratio:
Net interest income	$	11,411		$	10,377		$	11,732		$	9,480		$	9,400
Total noninterest income		1,197			4,906			1,707			1,211			1,737
Net realized (gains) losses on sales and redemptions of investment securities		(8	)		249			(188	)		16			(148	)
Gain on asset sale		–			3,169			–			–			–
Revenue (non-GAAP)²		12,616			11,865			13,627			10,675			11,285
Total non-interest expense		8,433			8,544			10,259			7,908			7,706
Pre-tax, pre-provision net income (non-GAAP)³	$	4,183		$	3,321		$	3,368		$	2,767		$	3,579
Efficiency ratio (non-GAAP)⁴		66.84	%		72.01	%		75.28	%		74.08	%		68.29	%

¹ Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
² Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency
³ Pre-tax, pre-provision net income equals revenue less total non-interest expense
⁴ Efficiency ratio equals noninterest expense divided by revenue

The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

The MIL Network –

May 1, 2025

MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the First Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

FAIR LAWN, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported net income of $8.9 million, or $0.09 per basic and diluted share, for the quarter ended March 31, 2025, as compared to a net loss of $1.2 million, or $0.01 per basic and diluted share, for the quarter ended March 31, 2024. Earnings for the quarter ended March 31, 2025 reflected higher net interest income due to both an increase in interest income and a decrease in interest expense, lower provision for credit losses and a decrease in non-interest expense, partially offset by higher income tax expense.

Mr. Thomas J. Kemly, President and Chief Executive Officer, commented: “During the first quarter of 2025, the Company was able to increase earnings, expand our net interest margin and reduce overall funding costs mainly due to a balance sheet repositioning strategy implemented in the fourth quarter of 2024. We also experienced solid loan growth and an increase in deposits while reducing our overall operating costs. It continues to be challenging to operate in such a volatile economic environment, but we are focused on managing the balance sheet mix and controlling operating expenses while remaining committed to investments in talent and systems that will support future growth.”

Results of Operations for the Three Months Ended March 31, 2025 and March 31, 2024

Net income of $8.9 million was recorded for the quarter ended March 31, 2025, an increase of $10.1 million, compared to a net loss of $1.2 million for the quarter ended March 31, 2024. The increase in net income was primarily attributable to an $8.1 million increase in net interest income, a $2.3 million decrease in provision for credit losses and a $1.8 million decrease in non-interest expense, partially offset by a $3.2 million increase in income tax expense.

Net interest income was $50.3 million for the quarter ended March 31, 2025, an increase of $8.1 million, or 19.3%, from $42.2 million for the quarter ended March 31, 2024. The increase in net interest income was primarily attributable to a $3.5 million increase in interest income and a $4.6 million decrease in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of loans coupled with an increase in average yields on loans and securities. During the fourth quarter of 2024 the Company implemented a balance sheet repositioning transaction which resulted in an increase in the average yield on securities and a decrease in the cost of borrowings, which had a notable impact on net interest income for the quarter ended March 31, 2025. The 100 basis point decrease in market interest rates during the last four months of 2024 contributed to a decrease in interest expense on borrowings during the quarter ended March 31, 2025. Prepayment penalties, which are included in interest income on loans, totaled $257,000 for the quarter ended March 31, 2025, compared to $268,000 for the quarter ended March 31, 2024.

The average yield on loans for the quarter ended March 31, 2025 increased 10 basis points to 4.89%, as compared to 4.79% for the quarter ended March 31, 2024. Interest income on loans increased due to an increase in both the average balance and yield on loans. The average yield on securities for the quarter ended March 31, 2025 increased 80 basis points to 3.45%, as compared to 2.65% for the quarter ended March 31, 2024. This was a result of lower yielding securities sold as part of the balance sheet repositioning transaction implemented in the fourth quarter of 2024, being replaced with higher yielding securities purchased in 2024 and the quarter ended March 31, 2025. The average yield on other interest-earning assets for the quarter ended March 31, 2025 decreased 31 basis points to 5.75%, as compared to 6.06% for the quarter ended March 31, 2024, due to a decrease in average interest rates received on cash balances, and a decrease in the dividend rate received on Federal Home Loan Bank stock.

Total interest expense was $61.8 million for the quarter ended March 31, 2025, a decrease of $4.6 million, or 6.9%, from $66.4 million for the quarter ended March 31, 2024. The decrease in interest expense was primarily attributable to a 1 basis point decrease in the average cost of interest-bearing deposits along with a 54 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings, partially offset by an increase in the average balance of interest-bearing deposits. Interest expense on deposits increased $1.7 million, or 3.6%, and interest expense on borrowings decreased $6.3 million, or 35.1%.

The Company’s net interest margin for the quarter ended March 31, 2025 increased 36 basis points to 2.11%, when compared to 1.75% for the quarter ended March 31, 2024. The net interest margin increased for the quarter ended March 31, 2025 due to an increase in the average yield on interest-earning assets coupled with a decrease in the average cost of interest-bearing liabilities. The weighted average yield on interest-earning assets increased 19 basis points to 4.69% for the quarter ended March 31, 2025 as compared to 4.50% for the quarter ended March 31, 2024. The average cost of interest-bearing liabilities decreased 17 basis points to 3.21% for the quarter ended March 31, 2025 as compared to 3.38% for the quarter ended March 31, 2024.

The provision for credit losses for the quarter ended March 31, 2025 was $2.9 million, a decrease of $2.3 million, from $5.3 million for the quarter ended March 31, 2024. The decrease in provision for credit losses during the quarter was primarily due to a decrease in net charge-offs, which totaled $857,000 for the quarter ended March 31, 2025 as compared to $5.0 million for the quarter ended March 31, 2024.

Non-interest income was $8.5 million for the quarter ended March 31, 2025, an increase of $1.0 million, or 13.7%, from $7.5 million for the quarter ended March 31, 2024. The increase was primarily attributable to the loss on securities transactions of $1.3 million included in the 2024 period, and an increase of $475,000 in fees related to commercial account treasury services.

Non-interest expense was $43.8 million for the quarter ended March 31, 2025, a decrease of $1.8 million, or 4.0%, from $45.7 million for the quarter ended March 31, 2024. The decrease was primarily attributable to a decrease in professional fees of $2.1 million, as legal, regulatory and compliance-related costs decreased in the 2025 period, and a decrease in federal deposit insurance premiums of $475,000.

Income tax expense was $3.1 million for the quarter ended March 31, 2025, an increase of $3.2 million, as compared to an income tax benefit of $129,000 for the quarter ended March 31, 2024, mainly due to an increase in pre-tax income. The Company’s effective tax rate was 25.9% and 10.0% for the quarters ended March 31, 2025 and 2024, respectively. The effective tax rate for the 2024 period was primarily impacted by permanent income tax differences.

Balance Sheet Summary

Total assets increased $132.4 million, or 1.3%, to $10.6 billion at March 31, 2025 as compared to $10.5 billion at December 31, 2024. The increase in total assets was primarily attributable to an increase in debt securities available for sale of $51.4 million, and an increase in loans receivable, net, of $108.3 million, partially offset by a decrease in cash and cash equivalents of $33.1 million.

Cash and cash equivalents decreased $33.1 million, or 11.5%, to $256.1 million at March 31, 2025 from $289.2 million at December 31, 2024. The decrease was primarily attributable to purchases of securities of $84.7 million, and origination of loans receivable, partially offset by proceeds from principal repayments on securities of $41.2 million, and repayments on loans receivable.

Debt securities available for sale increased $51.4 million, or 5.0%, to $1.1 billion at March 31, 2025 from $1.0 billion at December 31, 2024. The increase was attributable to purchases of securities of $64.8 million, consisting primarily of U.S. government obligations and mortgage-backed securities, and a decrease in the gross unrealized loss on securities of $15.9 million, partially offset by repayments on securities of $29.1 million, and a partial call of a security of $756,000.

Loans receivable, net, increased $108.3 million, or 1.4%, to $8.0 billion at March 31, 2025 from $7.9 billion at December 31, 2024. Multifamily loans and commercial real estate loans increased $107.2 million and $89.5 million, respectively, partially offset by decreases in one-to-four family real estate loans, construction loans, commercial business loans, and home equity loans and advances of $34.4 million, $36.5 million, $8.0 million, and $5.6 million, respectively. The allowance for credit losses for loans increased $2.1 million to $62.0 million at March 31, 2025 from $60.0 million at December 31, 2024, primarily due to an increase in the outstanding balance of loans.

Total liabilities increased $112.4 million, or 1.2%, to $9.5 billion at March 31, 2025 from $9.4 billion at December 31, 2024. The increase was primarily attributable to an increase in total deposits of $98.8 million, or 1.2%, and an increase in borrowings of $27.0 million, or 2.5%, partially offset by a decrease in other liabilities of $15.2 million. The increase in total deposits consisted of increases in non-interest-bearing demand deposits, money market accounts and certificates of deposit of $52.2 million, $92.0 million, and $41.3 million, respectively, partially offset by decreases in interest-bearing demand deposits and savings and club accounts of $85.9 million and $788,000, respectively. The $27.0 million increase in borrowings was driven by a net increase in short-term borrowings of $67.0 million, coupled with new long-term borrowings of $20.0 million, partially offset by repayments of $60.0 million in maturing long-term borrowings.

Total stockholders’ equity increased $20.0 million, or 1.8%, with a balance of $1.1 billion at both March 31, 2025 and December 31, 2024. The increase in total stockholders’ equity was primarily attributable to net income of $8.9 million, and an increase of $9.3 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes, included in other comprehensive income.

Asset Quality

The Company’s non-performing loans at March 31, 2025 totaled $24.9 million, or 0.31% of total gross loans, as compared to $21.7 million, or 0.28% of total gross loans, at December 31, 2024. The $3.2 million increase in non-performing loans was primarily attributable to a $5.9 million construction loan designated as non-performing during the 2025 period, an increase in non-performing one-to-four family real estate loans of $835,000, and an increase in non-performing commercial real estate loans of $452,000, partially offset by a decrease in non-performing commercial business loans of $4.4 million. The $5.9 million non-performing construction loan represents the construction of a mixed use five-story building with both commercial space and apartments. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 32 non-performing loans at December 31, 2024 to 38 loans at March 31, 2025. The increase in non-performing commercial real estate loans was due to an increase in the number of loans from four non-performing loans at December 31, 2024 to seven loans at March 31, 2025. The decrease in non-performing commercial business loans was primarily attributable to one loan with an outstanding balance of $4.3 million which was paid in full during the 2025 period. Non-performing assets as a percentage of total assets totaled 0.25% at March 31, 2025, as compared to 0.22% at December 31, 2024.

For the quarter ended March 31, 2025, net charge-offs totaled approximately $857,000, as compared to $5.0 million in net charge-offs recorded for the quarter ended March 31, 2024.

The Company’s allowance for credit losses on loans was $62.0 million, or 0.78% of total gross loans, at March 31, 2025, compared to $60.0 million, or 0.76% of total gross loans, at December 31, 2024. The increase in the allowance for credit losses for loans was primarily due to an increase in the outstanding balance of loans.

Additional Liquidity, Loan, and Deposit Information

The Company services a diverse retail and commercial deposit base through its 69 branches. With over 207,000 accounts, the average deposit account balance was approximately $40,000 at March 31, 2025.

Deposit balances are summarized as follows:

	At March 31, 2025				At December 31, 2024
	Balance		Weighted Average Rate		Balance		Weighted Average Rate
	(Dollars in thousands)

Non-interest-bearing demand	$	1,490,243	—	%	$	1,438,030	—	%
Interest-bearing demand		1,935,384	2.08			2,021,312	2.19
Money market accounts		1,333,668	2.84			1,241,691	2.82
Savings and club deposits		651,713	0.70			652,501	0.75
Certificates of deposit		2,783,927	4.08			2,742,615	4.24
Total deposits	$	8,194,935	2.40	%	$	8,096,149	2.47	%

The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at March 31, 2025. As of March 31, 2025, the Company had immediate access to approximately $2.8 billion of funding, with additional unpledged loan collateral of approximately $2.2 billion.

At March 31, 2025, the Company’s non-performing commercial real estate loans totaled $3.4 million, or 0.04%, of total loans receivable.

The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

	At March 31, 2025
	(Dollars in thousands)
	Balance		% of Gross Loans		Weighted Average Loan to Value Ratio		Weighted Average Debt Service Coverage
Multifamily Real Estate	$	1,567,862	19.6	%	58.0	%	1.58	x

Owner Occupied Commercial Real Estate	$	689,509	8.6	%	53.7	%	2.23	x

Investor Owned Commercial Real Estate:
Retail / Shopping centers	$	518,841	6.5	%	53.4	%	1.50	x
Mixed Use		220,391	2.8		58.0		1.57
Industrial / Warehouse		423,634	5.3		54.8		1.65
Non-Medical Office		189,617	2.4		51.1		1.65
Medical Office		118,547	1.5		60.0		1.46
Single Purpose		95,041	1.2		54.8		3.14
Other		173,849	2.2		51.3		1.75
Total	$	1,739,920	21.9	%	54.4	%	1.67	x

Total Multifamily and Commercial Real Estate Loans	$	3,997,291	50.1	%	55.7	%	1.73	x

As of March 31, 2025, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

About Columbia Financial, Inc.

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

Forward Looking Statements

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

Non-GAAP Financial Measures

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

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

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


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Financial Condition (In thousands)

	March 31,		December 31,
	2025		2024
Assets	(Unaudited)
Cash and due from banks	$	255,978	$	289,113
Short-term investments		111		110
Total cash and cash equivalents		256,089		289,223

Debt securities available for sale, at fair value		1,077,331		1,025,946
Debt securities held to maturity, at amortized cost (fair value of $364,428, and $350,153 at March 31, 2025 and December 31, 2024, respectively)		400,975		392,840
Equity securities, at fair value		6,981		6,673
Federal Home Loan Bank stock		61,628		60,387

Loans receivable		8,027,308		7,916,928
Less: allowance for credit losses		62,034		59,958
Loans receivable, net		7,965,274		7,856,970

Accrued interest receivable		41,902		40,383
Office properties and equipment, net		82,592		81,772
Bank-owned life insurance		276,767		274,908
Goodwill and intangible assets		120,487		121,008
Other real estate owned		1,334		1,334
Other assets		316,490		324,049
Total assets	$	10,607,850	$	10,475,493

Liabilities and Stockholders’ Equity
Liabilities:
Deposits	$	8,194,935	$	8,096,149
Borrowings		1,107,588		1,080,600
Advance payments by borrowers for taxes and insurance		47,275		45,453
Accrued expenses and other liabilities		157,709		172,915
Total liabilities		9,507,507		9,395,117

Stockholders’ equity:
Total stockholders’ equity		1,100,343		1,080,376
Total liabilities and stockholders’ equity	$	10,607,850	$	10,475,493


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Consolidated Statements of Income (Loss) (In thousands, except per share data)

	Three Months Ended March 31,
	2025		2024
Interest income:	(Unaudited)
Loans receivable	$	95,110	$	92,949
Debt securities available for sale and equity securities		9,742		7,785
Debt securities held to maturity		2,811		2,369
Federal funds and interest-earning deposits		2,858		3,563
Federal Home Loan Bank stock dividends		1,642		1,961
Total interest income		112,163		108,627
Interest expense:
Deposits		50,145		48,418
Borrowings		11,693		18,009
Total interest expense		61,838		66,427

Net interest income		50,325		42,200

Provision for credit losses		2,933		5,278

Net interest income after provision for credit losses		47,392		36,922

Non-interest income:
Demand deposit account fees		1,888		1,413
Bank-owned life insurance		1,859		1,780
Title insurance fees		646		503
Loan fees and service charges		1,056		961
Loss on securities transactions		—		(1,256	)
Change in fair value of equity securities		308		351
Gain on sale of loans		515		185
Other non-interest income		2,199		3,515
Total non-interest income		8,471		7,452

Non-interest expense:
Compensation and employee benefits		28,583		27,513
Occupancy		6,185		5,973
Federal deposit insurance premiums		1,880		2,355
Advertising		531		626
Professional fees		2,515		4,634
Data processing and software expenses		4,061		3,967
Merger-related expenses		—		22
Other non-interest expense, net		90		568
Total non-interest expense		43,845		45,658

Income (loss) before income tax expense (benefit)		12,018		(1,284	)

Income tax expense (benefit)		3,118		(129	)

Net income (loss)	$	8,900	$	(1,155	)

Earnings (loss) per share-basic	$	0.09	$	(0.01	)
Earnings (loss) per share-diluted	$	0.09	$	(0.01	)
Weighted average shares outstanding-basic		101,816,716		101,746,740
Weighted average shares outstanding-diluted		101,816,716		101,988,425


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Average Balances/Yields

	For the Three Months Ended March 31,
		2025							2024
	Average Balance			Interest and Dividends		Yield / Cost		Average Balance			Interest and Dividends		Yield / Cost
	(Dollars in thousands)
Interest-earnings assets:
Loans	$	7,894,561		$	95,110	4.89	%	$	7,802,865		$	92,949	4.79	%
Securities		1,477,537			12,553	3.45	%		1,543,734			10,154	2.65	%
Other interest-earning assets		317,433			4,500	5.75	%		366,343			5,524	6.06	%
Total interest-earning assets		9,689,531			112,163	4.69	%		9,712,942			108,627	4.50	%
Non-interest-earning assets		873,451							855,618
Total assets	$	10,562,982						$	10,568,560

Interest-bearing liabilities:
Interest-bearing demand	$	2,060,528		$	13,172	2.59	%	$	1,998,749		$	13,384	2.69	%
Money market accounts		1,282,241			7,606	2.41	%		1,234,943			8,769	2.86	%
Savings and club deposits		649,257			1,108	0.69	%		688,535			1,236	0.72	%
Certificates of deposit		2,756,895			28,259	4.16	%		2,516,323			25,029	4.00	%
Total interest-bearing deposits		6,748,921			50,145	3.01	%		6,438,550			48,418	3.02	%
FHLB advances		1,060,911			11,554	4.42	%		1,447,143			17,847	4.96	%
Junior subordinated debentures		7,040			139	8.01	%		7,018			162	9.28	%
Total borrowings		1,067,951			11,693	4.44	%		1,454,161			18,009	4.98	%
Total interest-bearing liabilities		7,816,872		$	61,838	3.21	%		7,892,711		$	66,427	3.38	%

Non-interest-bearing liabilities:
Non-interest-bearing deposits		1,432,837							1,392,274
Other non-interest-bearing liabilities		222,604							240,798
Total liabilities		9,472,313							9,525,783
Total stockholders’ equity		1,090,669							1,042,777
Total liabilities and stockholders’ equity	$	10,562,982						$	10,568,560

Net interest income				$	50,325						$	42,200
Interest rate spread						1.48	%						1.12	%
Net interest-earning assets	$	1,872,659						$	1,820,231
Net interest margin						2.11	%						1.75	%
Ratio of interest-earning assets to interest-bearing liabilities		123.96	%						123.06	%


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Components of Net Interest Rate Spread and Margin

	Average Yields/Costs by Quarter
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Yield on interest-earning assets:
Loans	4.89	%	4.88	%	5.00	%	4.93	%	4.79	%
Securities	3.45		2.99		2.90		2.89		2.65
Other interest-earning assets	5.75		6.00		6.72		6.30		6.06
Total interest-earning assets	4.69	%	4.61	%	4.70	%	4.64	%	4.50	%

Cost of interest-bearing liabilities:
Total interest-bearing deposits	3.01	%	3.13	%	3.21	%	3.14	%	3.02	%
Total borrowings	4.44		4.65		4.87		4.92		4.98
Total interest-bearing liabilities	3.21	%	3.38	%	3.52	%	3.49	%	3.38	%

Interest rate spread	1.48	%	1.23	%	1.18	%	1.15	%	1.12	%
Net interest margin	2.11	%	1.88	%	1.84	%	1.81	%	1.75	%

Ratio of interest-earning assets to interest-bearing liabilities	123.96	%	124.02	%	123.06	%	123.03	%	123.06	%


COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES Selected Financial Highlights

	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
SELECTED FINANCIAL RATIOS ⁽¹⁾:
Return on average assets	0.34	%	(0.79	)%	0.23	%	0.17	%	(0.04	)%
Core return on average assets	0.35	%	0.42	%	0.23	%	0.20	%	0.02	%
Return on average equity	3.31	%	(7.86	)%	2.32	%	1.77	%	(0.45	)%
Core return on average equity	3.37	%	4.09	%	2.29	%	2.06	%	0.18	%
Core return on average tangible equity	3.78	%	4.74	%	2.58	%	2.34	%	0.20	%
Interest rate spread	1.48	%	1.23	%	1.18	%	1.15	%	1.12	%
Net interest margin	2.11	%	1.88	%	1.84	%	1.81	%	1.75	%
Non-interest income to average assets	0.33	%	(0.88	)%	0.33	%	0.35	%	0.28	%
Non-interest expense to average assets	1.68	%	1.73	%	1.60	%	1.74	%	1.74	%
Efficiency ratio	74.57	%	205.17	%	78.95	%	86.83	%	91.96	%
Core efficiency ratio	74.20	%	73.68	%	79.14	%	85.34	%	88.39	%
Average interest-earning assets to average interest-bearing liabilities	123.96	%	124.02	%	123.06	%	123.03	%	123.06	%
Net charge-offs to average outstanding loans	0.04	%	0.07	%	0.14	%	0.03	%	0.26	%

⁽¹⁾ Ratios are annualized when appropriate.


ASSET QUALITY DATA:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in thousands)

Non-accrual loans	$	24,856		$	21,701		$	28,014		$	25,281		$	22,935
90+ and still accruing		—			—			—			—			—
Non-performing loans		24,856			21,701			28,014			25,281			22,935
Real estate owned		1,334			1,334			1,974			1,974			—
Total non-performing assets	$	26,190		$	23,035		$	29,988		$	27,255		$	22,935

Non-performing loans to total gross loans		0.31	%		0.28	%		0.36	%		0.33	%		0.30	%
Non-performing assets to total assets		0.25	%		0.22	%		0.28	%		0.25	%		0.22	%
Allowance for credit losses on loans (“ACL”)	$	62,034		$	59,958		$	58,495		$	57,062		$	55,401
ACL to total non-performing loans		249.57	%		276.29	%		208.81	%		225.71	%		241.56	%
ACL to gross loans		0.78	%		0.76	%		0.75	%		0.73	%		0.71	%


LOAN DATA:
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In thousands)
Real estate loans:
One-to-four family	$	2,676,566		$	2,710,937		$	2,737,190		$	2,764,177		$	2,778,932
Multifamily		1,567,862			1,460,641			1,399,000			1,409,316			1,429,369
Commercial real estate		2,429,429			2,339,883			2,312,759			2,316,252			2,318,178
Construction		437,081			473,573			510,439			462,880			437,566
Commercial business loans		614,049			622,000			586,447			554,768			538,260
Consumer loans:
Home equity loans and advances		253,439			259,009			261,041			260,427			260,786
Other consumer loans		2,547			3,404			2,877			2,689			2,601
Total gross loans		7,980,973			7,869,447			7,809,753			7,770,509			7,765,692
Purchased credit deteriorated loans		10,395			11,686			11,795			12,150			14,945
Net deferred loan costs, fees and purchased premiums and discounts		35,940			35,795			35,642			36,352			34,992
Allowance for credit losses		(62,034	)		(59,958	)		(58,495	)		(57,062	)		(55,401	)
Loans receivable, net	$	7,965,274		$	7,856,970		$	7,798,695		$	7,761,949		$	7,760,228


CAPITAL RATIOS:
	March 31,		December 31,
	2025 ⁽¹⁾		2024
Company:
Total capital (to risk-weighted assets)	14.12	%	14.20	%
Tier 1 capital (to risk-weighted assets)	13.30	%	13.40	%
Common equity tier 1 capital (to risk-weighted assets)	13.21	%	13.31	%
Tier 1 capital (to adjusted total assets)	10.29	%	10.02	%

Columbia Bank:
Total capital (to risk-weighted assets)	14.37	%	14.41	%
Tier 1 capital (to risk-weighted assets)	13.51	%	13.56	%
Common equity tier 1 capital (to risk-weighted assets)	13.51	%	13.56	%
Tier 1 capital (to adjusted total assets)	9.88	%	9.64	%

⁽¹⁾ Estimated ratios at March 31, 2025


Reconciliation of GAAP to Non-GAAP Financial Measures

Book and Tangible Book Value per Share
	March 31,			December 31,
	2025			2024
	(Dollars in thousands)

Total stockholders’ equity	$	1,100,343		$	1,080,376
Less: goodwill		(110,715	)		(110,715	)
Less: core deposit intangible		(8,443	)		(8,964	)
Total tangible stockholders’ equity	$	981,185		$	960,697

Shares outstanding		104,930,900			104,759,185

Book value per share	$	10.49		$	10.31
Tangible book value per share	$	9.35		$	9.17


Reconciliation of Core Net Income
	Three Months Ended March 31,
		2025		2024
	(In thousands)

Net income (loss)	$	8,900	$	(1,155	)
Add: loss on securities transactions, net of tax		—		1,130
Add: FDIC special assessment, net of tax		—		393
Add: severance expense, net of tax		163		67
Add: merger-related expenses, net of tax		—		20
Core net income	$	9,063	$	455

Return on Average Assets
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Net income (loss)	$	8,900		$	(1,155	)

Average assets	$	10,562,982		$	10,568,560

Return on average assets		0.34	%	(0.04		)%

Core net income	$	9,063		$	455

Core return on average assets		0.35	%		0.02	%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Return on Average Equity
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Total average stockholders’ equity	$	1,090,669		$	1,042,777
Add: loss on securities transactions, net of tax		—			1,130
Add: FDIC special assessment, net of tax		—			393
Add: severance expense, net of tax		163			67
Add: merger-related expenses, net of tax		—			20
Core average stockholders’ equity	$	1,090,832		$	1,044,387

Return on average equity		3.31	%	(0.45		)%

Core return on core average equity		3.37	%		0.18	%


Return on Average Tangible Equity
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Total average stockholders’ equity	$	1,090,669		$	1,042,777
Less: average goodwill		(110,715	)		(110,715	)
Less: average core deposit intangible		(8,784	)		(10,956	)
Total average tangible stockholders’ equity	$	971,170		$	921,106

Core return on average tangible equity		3.78	%		0.20	%


Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

Efficiency Ratios
	Three Months Ended March 31,
	2025			2024
	(Dollars in thousands)

Net interest income	$	50,325		$	42,200
Non-interest income		8,471			7,452
Total income	$	58,796		$	49,652

Non-interest expense	$	43,845		$	45,658

Efficiency ratio		74.57	%		91.96	%

Non-interest income	$	8,471		$	7,452
Add: loss on securities transactions		—			1,256
Core non-interest income	$	8,471		$	8,708

Non-interest expense	$	43,845		$	45,658
Less: FDIC special assessment, net		—			(565	)
Less: severance expense		(220	)		(74	)
Less: merger-related expenses		—			(22	)
Core non-interest expense	$	43,625		$	44,997

Core efficiency ratio		74.20	%		88.39	%

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

The MIL Network –

May 1, 2025

MIL-OSI: Bogota Financial Corp. Reports Results for the Three Months Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

TEANECK, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Bogota Financial Corp. (NASDAQ: BSBK) (the “Company”), the holding company for Bogota Savings Bank (the “Bank”), reported net income for the three months ended March 31, 2025 of $731,000, or $0.06 per basic and diluted share, compared to a net loss of $441,000, or $0.03 per basic and diluted share, for the comparable prior year period. The increase in net income was primarily due to a decrease in deposit costs and increases in the yield on loans and security income, which resulted in a $942,000 increase in net interest income over the previous year. The Company also recorded a one-time death benefit accrual from its bank-owned life insurance policy for a former employee of approximately $543,000.

The Bank has completed its previous repurchase program and has no repurchase program outstanding. As of March 31, 2025, 238,258 shares had been repurchased pursuant to the previous program at a cost of $1.7 million.

Other Financial Highlights:

Total assets decreased $41.3 million, or 4.3%, to $930.2 million at March 31, 2025 from $971.5 million at December 31, 2024, due to a decrease in cash and cash equivalents, loans and securities.
Cash and cash equivalents decreased $26.6 million, or 51.0%, to $25.6 million at March 31, 2025 from $52.2 million at December 31, 2024 as excess funds were used to pay down borrowings.
Securities decreased $2.6 million, or 1.8%, to $137.7 million at March 31, 2025 from $140.3 million at December 31, 2024.
Net loans decreased $10.2 million, or 1.4%, to $701.5 million at March 31, 2025 from $711.7 million at December 31, 2024.
Total deposits at March 31, 2025 were $633.0 million, decreasing $9.2 million, or 1.4%, as compared to $642.2 million at December 31, 2024, due to a $9.5 million decrease in interest-bearing deposits, primarily due to a $17.3 million decrease in certificates of deposit, and a $1.2 million decrease in money market accounts, offset by a $6.6 million increase in NOW accounts and a $2.4 million increase in savings accounts. The average cost of deposits increased 13 basis points to 3.55% for the first quarter of 2025 from 3.42% for the three months ended December 31, 2024.
Federal Home Loan Bank advances decreased $32.4 million, or 18.8% to $139.8 million at March 31, 2025 from $172.2 million as of December 31, 2024.

Kevin Pace, President and Chief Executive Officer, said “We continue to have a positive outlook on achieving the long-term goals we have set. We have also experienced immediate improvements from the balance sheet restructuring completed at the end of 2024. With a full quarter completed, the positive impact of the restructuring is reflected on our financials. The current market turmoil has created uncertainty around rates. We remain very mindful of this as we project our growth and look to improve our net interest margin.”

“Credit quality remains a focus, as it has historically, while we anticipate modest loan growth in the short term. Growth and diversification of our assets are a priority of our strategic plan and we remain dedicated to that vision.”

Income Statement Analysis

Comparison of Operating Results for the Three Months Ended March 31, 2025 and March 31, 2024

Net income increased by $1.2 million to net income of $731,000 for the three months ended March 31, 2025 compared to a net loss of $441,000 for the three months ended March 31, 2024. This increase was primarily due to an increase of $942,000 in net interest income, and a $590,000 increase in non-interest income, partially offset by an increase of $300,000 in occupancy and equipment costs, and a decrease of $259,000 in income tax benefit.

Interest income increased $862,000, or 8.6%, from $10.1 million for the three months ended March 31, 2024 to $10.9 million for the three months ended March 31, 2025 primarily due to higher yields on interest-earning assets, offset by a decrease in interest-earning assets.

Interest income on cash and cash equivalents increased $115,000, or 76.7%, to $265,000 for the three months ended March 31, 2025 from $150,000 for the three months ended March 31, 2024 due to a $6.7 million increase in the average balance to $16.6 million for the three months ended March 31, 2025 from $9.9 million for the three months ended March 31, 2024, reflecting the decrease in loans and securities. The increase was augmented by a 27 basis point increase in the average yield from 6.10% for the three months ended March 31, 2024 to 6.37% for the three months ended March 31, 2025 due to the higher interest rate environment.

Interest income on loans increased $396,000, or 4.8%, to $8.6 million for the three months ended March 31, 2025 compared to $8.2 million for the three months ended March 31, 2024 due primarily to a 27 basis point increase in the average yield from 4.61% for the three months ended March 31, 2024 to 4.88% for the three months ended March 31, 2025, which was offset by a $8.3 million decrease in the average balance to $705.1 million for the three months ended March 31, 2025 from $713.4 million for the three months ended March 31, 2024.

Interest income on securities increased $304,000, or 19.9%, to $1.8 million for the three months ended March 31, 2025 from $1.5 million for the three months ended March 31, 2024 primarily due to a 138 basis point increase in the average yield from 3.67% for the three months ended March 31, 2024 to 5.05% for the three months ended March 31, 2025 due to the rebalancing of the balance sheet in the fourth quarter of 2024. This was partially offset by a $21.4 million decrease in the average balance to $145.3 million for the three months ended March 31, 2025 from $166.7 million for the three months ended March 31, 2024.

Interest expense decreased $80,000, or 1.1%, from $7.4 million for the three months ended March 31, 2024 to $7.3 million for the three months ended March 31, 2025 due to lower average balances on certificates of deposits, offset by an increase in the cost of funds. During the three months ended March 31, 2025, the use of hedges reduced the interest expense on the Federal Home Loan Bank and brokered deposit advances by $177,000. At March 31, 2025, cash flow hedges used to manage interest rate risk had a notional value of $65.0 million, while fair value hedges totaled $60.0 million in notional value.

Interest expense on interest-bearing deposits decreased $208,000, or 3.5%, to $5.8 million for the three months ended March 31, 2025 from $6.0 million for the three months ended March 31, 2024. The average balances of certificates of deposit decreased $32.2 million to $484.3 million for the three months ended March 31, 2025 from $516.5 million for the three months ended March 31, 2024 while the average balance of NOW/money market accounts and savings accounts increased $10.0 million and $2.5 million for the three months ended March 31, 2025, respectively, compared to the three months ended March 31, 2024.

Interest expense on Federal Home Loan Bank advances increased $128,000, or 8.9%, from $1.4 million for the three months ended March 31, 2024 to $1.6 million for the three months ended March 31, 2025. The increase was primarily due to an increase in the average cost of borrowings of 24 basis points to 4.02% for the three months ended March 31, 2025 from 3.78% for the three months ended March 31, 2024 due to new borrowings being at shorter durations. The increase was also due to an increase in the average balance of $4.8 million to $158.1 million for the three months ended March 31, 2025 from $153.3 million for the three months ended March 31, 2024.

Net interest income increased $942,000, or 35.5%, to $3.6 million for the three months ended March 31, 2025 from $2.7 million for the three months ended March 31, 2024. The increase reflected a 44 basis point increase in our net interest rate spread to 1.12% for the three months ended March 31, 2025 from 0.68% for the three months ended March 31, 2024. Our net interest margin increased 48 basis points to 1.66% for the three months ended March 31, 2025 from 1.18% for the three months ended March 31, 2024.

We recorded a recovery for credit losses for the three months ended March 31, 2025 of $80,000 compared to a provision for credit losses of $35,000 for the three months ended March 31, 2024 due to decreases in loan balances and unfunded commitments.

Non-interest income increased by $590,000, or 197.4%, to $889,000 for the three months ended March 31, 2025 from $299,000 for the three months ended March 31, 2024. Bank-owned life insurance income increased $550,000, or 259.5%, due to a death benefit received related to a former employee. Gain on sale of loans increased $29,000 compared to no gain on sale of loans for the comparable period last year.

For the three months ended March 31, 2025, non-interest expense increased $217,000, or 5.9%, over the comparable 2024 period. This was due to a $300,000, or 80.9% increase in occupancy and equipment costs, which increased as we began leasing certain offices as part of the sale-leaseback transaction completed in the fourth quarter of 2024, which was offset by a $78,000, or 3.6%, decrease in salaries and employee benefit costs, which decreased as a result of reduced headcount, taxes and a reduction in stock-based compensation expense.

Income tax benefit decreased $259,000, to a benefit of $28,000 for the three months ended March 31, 2025 from a $287,000 benefit for the three months ended March 31, 2024. The decrease was due to an increase of $1.4 million in taxable income, offset by the benefits of income from bank-owned life insurance, which is tax free.

Balance Sheet Analysis

Total assets were $930.2 million at March 31, 2025, representing a decrease of $41.3 million, or 4.3%, from December 31, 2024. Cash and cash equivalents decreased $26.6 million during the period primarily due to the paydown of borrowings and decrease in deposits. Net loans decreased $10.2 million, or 1.44%, due to a $6.6 million decrease in the balance of residential loans, as well as a $9.7 million decrease in the balance of construction loans and a decrease of $1.1 million in commercial and industrial loans. The decrease was partially offset by new production of $7.8 million of commercial real estate loans. Due to the interest rate environment, we have experienced a decrease in demand for residential and construction loans, which have been primary drivers of our loan growth in recent periods. Securities available for sale decreased $2.6 million, or 1.8%.

Delinquent loans decreased $842,000 to $13.5 million, or 1.92% of total loans, at March 31, 2025, compared to $14.3 million, or 2.01% of total loans, at December 31, 2024. The decrease was mostly due to the payoff of one commercial real estate loan with a balance of $455,000 and residential loans totaling $387,000 being brought current. During the same timeframe, non-performing assets decreased from $14.0 million at December 31, 2024 to $13.9 million, which represented 1.49% of total assets at March 31, 2025. No loans were charged-off during the three months ended March 31, 2025 or March 31, 2024. The Company’s allowance for credit losses related to loans was 0.37% of total loans and 18.65% of non-performing loans at March 31, 2025 compared to 0.37% of total loans and 21.81% of non-performing loans at December 31, 2024. The Bank does not have any exposure to commercial real estate loans secured by office space.

Total liabilities decreased $42.3 million, or 5.1%, to $791.9 million mainly due to a $32.4 million decrease in borrowings and a $9.2 million decrease in total deposits. The decrease in deposits reflected a decrease in certificate of deposit accounts, which decreased by $17.3 million to $476.0 million from $493.3 million at December 31, 2024, and a $1.2 million, or 8.3%, decrease in money market accounts. This was offset by an increase in NOW deposit accounts, which increased by $6.6 million to $62.0 million from $55.4 million at December 31, 2024, and by an increase in savings accounts, which increased by $2.4 million from $46.9 million at December 31, 2024 to $49.3 million at March 31, 2025. At March 31, 2025, brokered deposits were $94.2 million or 14.9% of deposits and municipal deposits were $39.2 million or 6.2% of deposits. At March 31, 2025, uninsured deposits represented 7.9% of the Bank’s total deposits. Federal Home Loan Bank advances decreased $32.4 million, or 18.8%, due to paydown of existing borrowings. Total borrowing capacity at the Federal Home Loan Bank is $261.9 million of which $139.8 million has been advanced.

Total stockholders’ equity increased $965,000 to $138.3 million, due to net income of $731,000 and a decrease in accumulated other comprehensive loss of $360,000. At March 31, 2025, the Company’s ratio of average stockholders’ equity-to-average total assets was 14.59%, compared to 13.99% at December 31, 2024.

About Bogota Financial Corp.

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

Forward-Looking Statements

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

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


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)

	As of			As of
	March 31, 2025			December 31, 2024
Assets
Cash and due from banks	$	8,304,517		$	18,020,527
Interest-bearing deposits in other banks		17,305,310			34,211,681
Cash and cash equivalents		25,609,827			52,232,208
Securities available for sale, at fair value		137,732,521			140,307,447
Loans, net of allowance for credit losses of $2,590,950 and $2,620,949, respectively		701,484,425			711,716,236
Premises and equipment, net		4,662,435			4,727,302
Federal Home Loan Bank (FHLB) stock and other restricted securities		7,343,700			8,803,000
Accrued interest receivable		4,151,280			4,232,563
Core deposit intangibles		140,827			152,893
Bank-owned life insurance		31,112,915			31,859,604
Right of use asset		10,624,725			10,776,596
Other assets		7,329,182			6,682,035
Total Assets	$	930,191,837		$	971,489,884
Liabilities and Equity
Non-interest bearing deposits	$	32,983,669		$	32,681,963
Interest bearing deposits		600,051,531			609,506,079
Total deposits		633,035,200			642,188,042
FHLB advances-short term		24,500,000			29,500,000
FHLB advances-long term		115,273,377			142,673,182
Advance payments by borrowers for taxes and insurance		2,707,508			2,809,205
Lease liabilities		10,667,946			10,780,363
Other liabilities		5,754,000			6,249,932
Total liabilities		791,938,031			834,200,724

Stockholders’ Equity
Preferred stock $0.01 par value 1,000,000 shares authorized, none issued and outstanding at March 31, 2025 and December 31, 2024		—			—
Common stock $0.01 par value, 30,000,000 shares authorized, 13,008,964 issued and outstanding at March 31, 2025 and 13,059,175 at December 31, 2024		130,089			130,592
Additional paid-in capital		55,068,598			55,269,962
Retained earnings		90,737,595			90,006,648
Unearned ESOP shares (376,338 shares at March 31, 2025 and 382,933 shares at December 31, 2024)		(4,445,293	)		(4,520,594	)
Accumulated other comprehensive loss		(3,237,183	)		(3,597,448	)
Total stockholders’ equity		138,253,806			137,289,160
Total liabilities and stockholders’ equity	$	930,191,837		$	971,489,884


BOGOTA FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended
	March 31,
	2025			2024
Interest income
Loans, including fees	$	8,603,129		$	8,207,392
Securities
Taxable		1,830,394			1,516,343
Tax-exempt		2,895			13,148
Other interest-earning assets		487,171			324,304
Total interest income		10,923,589			10,061,187
Interest expense
Deposits		5,762,324			5,969,881
FHLB advances		1,568,027			1,440,069
Total interest expense		7,330,351			7,409,950
Net interest income		3,593,238			2,651,237
(Recovery) provision for credit losses		(80,000	)		35,000
Net interest income after (recovery) provision for credit losses		3,673,238			2,616,237
Non-interest income
Fees and service charges		55,819			58,587
Gain on sale of loans		29,062			—
Bank-owned life insurance		762,231			211,959
Other		42,260			28,532
Total non-interest income		889,372			299,078
Non-interest expense
Salaries and employee benefits		2,080,199			2,158,565
Occupancy and equipment		671,469			371,117
FDIC insurance assessment		106,586			100,597
Data processing		315,697			303,605
Advertising		105,500			110,100
Director fees		159,444			155,700
Professional fees		198,730			196,785
Other		222,045			246,622
Total non-interest expense		3,859,670			3,643,091
Income (loss) before income taxes		702,940			(727,776	)
Income tax benefit		(28,007	)		(286,796	)
Net income (loss)	$	730,947		$	(440,980	)
Earnings (loss) per Share – basic	$	0.06		$	(0.03	)
Earnings (loss) per Share – diluted	$	0.06		$	(0.03	)
Weighted average shares outstanding – basic		12,649,573			12,852,930
Weighted average shares outstanding – diluted		12,650,520			12,852,930


BOGOTA FINANCIAL CORP. SELECTED RATIOS (unaudited)

	At or For the Three Months
	Ended March 31,
	2025			2024
Performance Ratios (1):
Return (loss) on average assets (2)		0.08	%		(0.19	)%
Return (loss) on average equity (3)		0.53	%		(1.29	)%
Interest rate spread (4)		1.12	%		0.68	%
Net interest margin (5)		1.66	%		1.18	%
Efficiency ratio (6)		86.10	%		137.41	%
Average interest-earning assets to average interest-bearing liabilities		114.03	%		114.57	%
Net loans to deposits		110.81	%		106.42	%
Average equity to average assets (7)		14.59	%		14.36	%
Capital Ratios:
Tier 1 capital to average assets		15.00	%		13.23	%
Asset Quality Ratios:
Allowance for credit losses as a percent of total loans		0.37	%		0.40	%
Allowance for credit losses as a percent of non-performing loans		18.65	%		22.69	%
Net charge-offs to average outstanding loans during the period		—	%		—	%
Non-performing loans as a percent of total loans		1.97	%		1.75	%
Non-performing assets as a percent of total assets		1.49	%		1.30	%

(1)		Certain performance ratios for the three months ended March 31, 2025 and 2024 are annualized.
(2)		Represents net income (loss) divided by average total assets.
(3)		Represents net income (loss) divided by average stockholders’ equity.
(4)		Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of average interest-bearing liabilities. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2025 and 2024.
(5)		Represents net interest income as a percent of average interest-earning assets. Tax exempt income is reported on a tax equivalent basis using a combined federal and state marginal tax rate of 27.5% for 2025 and 2024.
(6)		Represents non-interest expenses divided by the sum of net interest income and non-interest income.
(7)		Represents average stockholders’ equity divided by average total assets.

LOANS

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

	March 31,			December 31,
	2025			2024
	(unaudited)
Real estate:
Residential First Mortgage	$	466,177,175		$	472,747,542
Commercial Real Estate		125,783,750			118,008,866
Multi-Family Real Estate		73,465,142			74,152,418
Construction		33,501,463			43,183,657
Commercial and Industrial		5,070,847			6,163,747
Consumer		76,998			80,955
Total loans		704,075,375			714,337,185
Allowance for credit losses		(2,590,950	)		(2,620,949	)
Net loans	$	701,484,425		$	711,716,236

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

	At March 31,								At December 31,
	2025								2024
	Amount		Percent			Average Rate			Amount		Percent			Average Rate

	(unaudited)
Noninterest bearing demand accounts	$	32,983,669		5.21	%		—	%	$	32,681,963		5.09	%		—	%
NOW accounts		61,950,627		9.79	%		2.61			55,378,051		8.62	%		2.53
Money market accounts		12,835,160		2.03	%		0.50			13,996,460		2.18	%		0.58
Savings accounts		49,281,181		7.78	%		1.96			46,851,793		7.30	%		1.90
Certificates of deposit		475,984,563		75.19	%		4.17			493,279,775		76.81	%		4.37
Total	$	633,035,200		100.00	%		3.55	%	$	642,188,042		100.00	%		3.42	%

Average Balance Sheets and Related Yields and Rates

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

	Three Months Ended March 31,
	2025								2024
	Average Balance			Interest and Dividends		Yield/ Cost (1)			Average Balance			Interest and Dividends		Yield/ Cost (1)
	(Dollars in thousands)
Assets:	(unaudited)
Cash and cash equivalents	$	16,601		$	265		6.37	%	$	9,865		$	150		6.10	%
Loans		705,095			8,603		4.88	%		713,430			8,207		4.61	%
Securities		145,280			1,833		5.05	%		166,666			1,529		3.67	%
Other interest-earning assets		8,305			222		10.72	%		8,101			175		8.63	%
Total interest-earning assets		875,281			10,923		4.99	%		898,062			10,061		4.49	%

Non-interest-earning assets		68,251								55,694
Total assets	$	943,532							$	953,756
Liabilities and equity:
NOW and money market accounts	$	79,400		$	458		2.34	%	$	69,450		$	334		1.94	%
Savings accounts		45,832			225		1.99	%		43,348			198		1.84	%
Certificates of deposit (1)		484,253			5,079		4.25	%		516,496			5,438		4.23	%
Total interest-bearing deposits		609,485			5,762		3.83	%		629,294			5,970		3.82	%

Federal Home Loan Bank advances (1)		158,116			1,568		4.02	%		153,269			1,440		3.78	%
Total interest-bearing liabilities		767,601			7,330		3.87	%		782,563			7,410		3.81	%
Non-interest-bearing deposits		32,763								30,018
Other non-interest-bearing liabilities		5,463								4,175
Total liabilities		805,827								816,756

Total equity		137,705								136,810
Total liabilities and equity	$	943,532							$	953,566
Net interest income				$	3,593							$	2,651
Interest rate spread (2)							1.12	%							0.68	%
Net interest margin (3)							1.66	%							1.18	%
Average interest-earning assets to average interest-bearing liabilities		114.03	%							114.76	%

1.		Cash flow and fair value hedges are used to manage interest rate risk. During the three months ended March 31, 2025 and 2024, the net effect on interest expense on the Federal Home Loan Bank advances and certificates of deposit was a reduced expense of $177,000 and $288,000, respectively.
2.		Interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
3.		Net interest margin represents net interest income divided by average total interest-earning assets.

Rate/Volume Analysis

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

	Three Months Ended March 31, 2025
	Compared to
	Three Months Ended March 31, 2024
	Increase (Decrease) Due to
	Volume			Rate		Net
	(In thousands)
Interest income:	(unaudited)
Cash and cash equivalents	$	108		$	7	$	115
Loans receivable		(575	)		971		396
Securities		(1,093	)		1,397		304
Other interest earning assets		4			43		47
Total interest-earning assets		(1,555	)		2,417		862

Interest expense:
NOW and money market accounts		51			73		124
Savings accounts		11			16		27
Certificates of deposit		(526	)		167		(359	)
Federal Home Loan Bank advances		43			85		128
Total interest-bearing liabilities		(421	)		341		(80	)
Net decrease in net interest income	$	(1,134	)	$	2,076	$	942

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

The MIL Network –

May 1, 2025

MIL-OSI: National Bank Holdings Corporation Announces 3.4% Increase to Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

DENVER, April 30, 2025 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) announced today that its Board of Directors approved a cash dividend to shareholders. The quarterly cash dividend will increase 3.4% from twenty-nine cents ($0.29) to thirty cents ($0.30) per share of common stock. The dividend will be payable on June 13, 2025 to shareholders of record at the close of business on May 30, 2025.

“We are pleased to deliver another increase to our quarterly dividend. Over the last five years, the quarterly dividend per common share has increased by 50%, which demonstrates our commitment to drive meaningful shareholder returns as a result of our strong balance sheet, solid capital position, and diversified funding sources,” said Chairman and CEO, Tim Laney.

About National Bank Holdings Corporation

National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 85 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

Forward Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” or similar expressions that relate to the Company’s strategy, plans or intentions. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements. Such factors include, without limitation, the “Risk Factors” referenced in our most recent Form 10-K filed with the Securities and Exchange Commission (SEC), and other risks and uncertainties listed from time to time in our reports and documents filed with the SEC. The Company can give no assurance that any goal or plan or expectation set forth in forward-looking statements can be achieved and readers are cautioned not to place undue reliance on such statements. The forward-looking statements are made as of the date of this press release, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Contact:

Analysts/Institutional Investors:
Emily Gooden, 720-554-6640
Chief Accounting Officer and Investor Relations Director
ir@nationalbankholdings.com

Nicole Van Denabeele, 720-529-3370,
Chief Financial Officer ir@nationalbankholdings.com

or

Media:
Jody Soper, 303-784-5925
Chief Marketing Officer
Jody.Soper@nbhbank.com

Source: National Bank Holdings Corporation

The MIL Network –

May 1, 2025

MIL-Evening Report: When it comes to health information, who should you trust? 4 ways to spot a dodgy ‘expert’

Source: The Conversation (Au and NZ) – By Hassan Vally, Associate Professor, Epidemiology, Deakin University

Surface/Unsplash

When it comes to our health, we’re constantly being warned about being taken in by misinformation. Yet for most of us what we believe ultimately comes down to who we trust, including which “experts” we trust.

The problem is that not everyone who presents themselves as an expert is actually an expert. And an expert in one area isn’t necessarily an expert in everything.

The reality is that we often rely on superficial cues to decide who to trust. We’re often swayed by how confidently someone speaks, their perceived authority, or how compelling their story sounds. For some, it’s simply the loudest voice that carries the most weight.

Even if we feel we have some understanding of science, few of us have the time or the capacity to verify every claim made by every so-called “expert”.

So how can we distinguish credible experts from those that are not? Here are four things I look out for.

1. Dodgy experts don’t acknowledge uncertainty

One thing that separates trustworthy experts from dodgy ones, is their humility. They have a healthy respect of the limitations of science, the gaps in the evidence, and even the limitations of their own expertise.

And importantly, they communicate this clearly.

In contrast, one of the most common characteristics of the dodgy expert is they are misleadingly certain. They often present issues in overly simplistic, black-and-white terms, and they draw conclusions with misplaced confidence.

This, of course, is part of their appeal. A neat clear-cut message that downplays uncertainty, complexity and nuance can be persuasive – and often even more persuasive than a messy but accurate message.

One of the clearest examples of unfounded certainty was the confident claim by some “experts” early in the pandemic that COVID was no worse than the flu, a conclusion which ignored uncertainties in the emerging data.

2. The dodgy experts doesn’t strive to be objective

Credible experts follow a well-established and disciplined approach when communicating science. They present their understanding clearly, support it with evidence, and endeavour to remove emotion and bias from their thinking.

A core principle of scientific thinking is striving for objectivity – and language reflects this. Experts generally aim to provide high-quality information to assist the public to make informed decisions for themselves, rather than manipulating them to reach specific conclusions.

Dodgy experts often rely on overly emotional language, inject political agendas, or resort to personal attacks against critics in order to elicit strong emotions. This is a powerful tool for manipulating opinions when the evidence is lacking.

One of the most harmful examples of this is the use of emotional testimonials by dodgy experts who claim people have “beaten cancer naturally”, offering false hope and often leading patients to abandon proven treatments.

3. Dodgy experts cherry-pick evidence

Despite what those seeking to mislead you would have you believe, scientists only reach consensus when a large body of high-quality evidence points in the same direction.

So one of the most crucial skills experts possess is the ability to critically evaluate evidence. That means understanding its strengths and weaknesses, assessing its reliability, and synthesising what the full evidence base indicates. This task requires a deep understanding of their area of expertise.

Dodgy experts don’t do this. They tend to dismiss inconvenient evidence that contradicts their narrative and readily embrace flawed, or even discredited, studies. In short: they often cherry-pick evidence to suit their position.

Unfortunately, this tactic can be hard to spot if you don’t have an understanding of the full evidence base, which is something dodgy experts exploit.

Scientists only reach consensus when a large body of evidence points in the same direction.
Matej Kastelic/Shutterstock

A red flag that you are being misled by a dodgy expert is when there is a clear over-reliance on a single study, despite its low quality.

Perhaps the most well-known example of cherry-picking is the way dodgy experts rely on a single, discredited study to push the false claim that the MMR (measles, mumps and rubella) vaccine causes autism, while ignoring the vast body of high-quality evidence that clearly shows no such link.

4. Dodgy experts don’t change their mind when the evidence changes

Dodgy experts are often rigidly attached to their beliefs, even when new evidence emerges.

In contrast, genuine experts welcome new evidence and are willing to change their views accordingly. This openness is often unfairly portrayed as weakness, but it reflects an expert’s desire to understand the world accurately.

A striking example of this is the shift in our understanding of stomach ulcers. For years, ulcers were blamed on stress and spicy food, but that changed when Australian gastroenterologist and researcher Barry Marshall, in a bold move, swallowed Helicobacter pylori to demonstrate its potential role.

His self-experiment (which is generally not recommended!) was the first step in a broader body of research that ultimately proved bacteria, not lifestyle, was the primary cause of ulcers. This ultimately led to Marshall and his colleague pathologist and researcher Robin Warren being awarded a Nobel Prize.

As this example highlights, when presented with the evidence, clinicians and scientists acknowledged they’d got the underlying cause of stomach ulcers wrong. Clinical practice subsequently improved, with doctors prescribing antibiotics to kill the ulcer-causing bacteria.

This is how science informs practice so we can continually improve health outcomes.

In a nutshell

True expertise is marked by intellectual humility, a commitment to high-quality evidence, a willingness to engage with nuance and uncertainty, flexibility, and a capacity to respectfully navigate differing opinions.

In contrast, dodgy experts claim to have all the answers, dismiss uncertainty, cherry-pick studies, personally attack those who disagree with them, and rely more on emotion and ideology than evidence.

Hassan Vally 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. When it comes to health information, who should you trust? 4 ways to spot a dodgy ‘expert’ – https://theconversation.com/when-it-comes-to-health-information-who-should-you-trust-4-ways-to-spot-a-dodgy-expert-253437

MIL OSI Analysis – EveningReport.nz –

May 1, 2025

MIL-Evening Report: Playing politics with AI: why NZ needs rules on the use of ‘fake’ images in election campaigns

Source: The Conversation (Au and NZ) – By Bronwyn Isaacs, Lecturer, Anthropology, University of Waikato

Laurence Dutton/Getty Images

Seeing is no longer believing in the age of images and videos generated by artificial intelligence (AI), and this is having an impact on elections in New Zealand and elsewhere.

Ahead of the 2025 local body elections, voters are being warned by overseas politicians and local experts not to automatically trust that what they are looking at is real.

Deepfakes – images or video created with the use of AI to mislead or spread false information – were used in last year’s United States presidential election. Early in the campaign, a deepfake voice clip impersonating then president Joe Biden told voters not to cast a ballot vote in New Hampshire’s primaries.

There have also been concerns about the role of deepfakes on the campaign trail in Australia. The Labor Party, for example, released an AI-generated video of opposition leader Peter Dutton dancing on its TikTok account.

But the worry is not just that deepfakes will spread lies about politicians or other real people. AI is also used to create “synthetic deepfakes” – images of fake people who do not exist.

Using artificially generated images and videos of both real and fake people raises questions around transparency and the ethical treatment of cultural and ethnic groups.

Cultural offence with AI isn’t a hypothetical concern. Australian voters have found some AI used in political advertising to be “cringe” and culturally clumsy, with one white female politician using auto-tuned rapping in her campaign.

Australians have also reported an increase in deepfake political content. The majority were unable to detect AI content.

Several countries including Australia and Canada are considering laws to manage the harms of AI use in political messaging.

Others have already passed legislation banning or limiting AI in elections. South Korea for example, banned the use of deepfakes in political advertising 90 days before an election. Singapore has banned digitally-altered material misrepresenting political candidates.

While New Zealand has several voluntary frameworks to address the growing use of AI in media, there are no explicit rules to prevent its use in political campaigns. To avoid cultural offence and to offer transparency, it is crucial for political parties to establish and follow clear ethical standards on AI use in their messaging.

Existing frameworks

The film industry is a good starting point for policymakers looking to establish a clear framework for AI in political messaging.

In my ongoing research about culture and technology in film production, industry workers have spoken about New Zealand’s world-leading standards on culturally aware film production processes and the positive impact this had on shaping AI standards.

Released in March 2025, the New Zealand Film Commission’s Artificial Intelligence Guiding Principles takes a “people first” approach to AI which prioritises the needs, wellbeing and empowerment of individuals when developing and implementing AI systems.

The principles also stress respect for matauranga Māori and transparency in the use of AI so that audiences are “informed about the use of AI in screen content they consume”.

The government’s Public Service AI framework, meanwhile, requires government agencies to publicly disclose how AI systems are used and to practice human-centred values such as dignity and self-determination.

AI in NZ politics

Meanwhile, the use of AI by some of New Zealand’s political parties has already raised concerns.

During the 2023 election campaign, the National Party admitted using AI in their attack advertisements. And recent social media posts using AI by New Zealand’s ACT party were criticised for their lack of transparency and cultural sensitivity.

An ACT Instagram post about interest rate cuts featured an AI generated image of a Māori couple from the software company Adobe’s stock photo collection.

Act whip Todd Stephenson responded that using stock imagery or AI-generated imagery was not inherently misleading. But he said that the party “would never use an actor or AI to impersonate a real person”.

My own search of the Adobe collection came up with other images used by ACT in its Instagram posts, including an AI generated image labelled as “studio photography portrait of a 40 years old Polynesian woman”.

There are two key concerns with using AI like this. The first is that ACT didn’t declare the use of AI in its Instagram posts. A lack of transparency around the use of deepfakes of any kind can undermine trust in the political system. Voters end up uncertain about what is real and what is fake.

Secondly, the images were synthetic fakes of ethnic minorities in New Zealand. There have long been concerns from academics and technology experts that AI generated images reproduce harmful stereotypes of diverse communities.

Legislation needed

While the potential for cultural offence and misinformation with faked content is not new, AI alters the scale at which such fakes can be created. It makes it easier and quicker to produce manipulative, fake and culturally offensive images.

At a minimum, New Zealand needs to introduce legalisation that requires political parties to acknowledge the use of AI in their advertising. And as the country moves into a new election season, political parties should commit to combating misinformation and cultural misrepresentation.

Bronwyn Isaacs is a member of the Association of Social Anthropologists of Aotearoa/New Zealand.

– ref. Playing politics with AI: why NZ needs rules on the use of ‘fake’ images in election campaigns – https://theconversation.com/playing-politics-with-ai-why-nz-needs-rules-on-the-use-of-fake-images-in-election-campaigns-255415

MIL OSI Analysis – EveningReport.nz –

May 1, 2025

MIL-Evening Report: Donald Trump has cast a long shadow over the Australian election. Will it prove decisive?

Source: The Conversation (Au and NZ) – By Emma Shortis, Adjunct Senior Fellow, School of Global, Urban and Social Studies, RMIT University

Donald Trump is everywhere, inescapable. His return to power in the United States was always going to have some impact on the Australian federal election. The question was how disruptive he would be.

The answer is very – but not in the ways we might have thought.

As soon as Trump was elected president, the political debate in Australia focused on whether Prime Minister Anthony Albanese or Opposition Leader Peter Dutton would be best suited to managing him – and keeping the US-Australia security alliance intact.

Initially, at least, this conversation was predictable.

The Coalition looked set to continue an ideological alignment with Trumpism that had flourished under the prime ministership of Scott Morrison. Dutton prosecuted the argument that given his party’s experience with the first Trump administration, it would be better placed than Labor to handle the second.

Albanese, meanwhile, appeared caught off guard by Trump’s victory and timid in his response.

But as has become all too clear, the second Trump administration is radically different from the first. That has rattled the right of Australian politics and worked to Labor’s advantage.

A turning point at the White House

In January, the Coalition announced that NT Senator Jacinta Nampijinpa Price had been appointed shadow minister for government efficiency – a direct importation of the Department of Government Efficiency (DOGE) being led by Elon Musk in the US.

In a barely disguised imitation of the Trump administration’s attacks on “diversity, equity and inclusion” (DEI) measures, members of the Coalition, including Price, singled out Welcome to Country ceremonies as evidence of the kind of “wasteful” spending it would cut.

When the Coalition seemed to be riding high in the polls, Dutton, too, nodded at “wokeism” and singled out young white men feeling “disenfranchised”.

Soon after, however, this began to change. The first few weeks of Trump’s second term were marked by a cascade of executive actions targeting trans people, climate action and immigration. Trump and his new appointees began the process of radically reshaping the United States and its role in the world.

In February, polling by the independent think tank The Australia Institute found Australians saw Trump as a bigger threat to world peace than Russian President Vladimir Putin or Chinese leader Xi Jinping.

And then Volodymyr Zelensky went to the White House.

The Ukrainian president was humiliated in an Oval Office meeting with Trump and Vice President JD Vance, laying bare how the administration was willing to treat the leader of an ally devastated by a war it hadn’t started.

Trump’s territorial threats towards Canada and Greenland, in addition to his dismissive statements about European allies, shattered the long-held assumptions about the US as a force for stability in the world.

MAGA ideology isn’t ‘pick and choose’

After this incident, Dutton was careful to distance himself from Trump’s abandonment of Ukraine. He even went so far as to say that leadership might require “standing up to your friends and to those traditional allies because our views have diverged”.

Similarly, influential Coalition powerbroker Peta Credlin wrote in The Australian:

it’s hard to see America made great again if the Trump administration’s message to the world is that the strong do what they will and the weak suffer what they must.

Therein lies the bind for the Coalition – an ideological alignment with “Make America Great Again” cannot be fully reconciled with a nationalism that puts Australian interests first.

MAGA ideology is all-or-nothing, not pick-and-choose.

During the election campaign, the Coalition attempted to walk the path of “pick-and-choose”. And Labor quite successfully used this against them. Assertions the opposition leader was nothing but a “Temu Trump”, or “DOGE-y Dutton”, stuck because they had at least a ring of truth to them.

The opposition’s pledge to dramatically reduce the size of the public service, for example, was clearly linked to Musk’s efforts at DOGE to take a chainsaw to the public service in the US. This idea has been deeply unpopular with Australian voters, and the Coalition has faced innumerable questions about it.

For all the talk of “shared values” and how essential the US alliance is to Australian security, this campaign shows that Australia is not like America.

Most Australians concerned about Trump’s impact

When Trump’s tariffs arrived on “Liberation Day” in early April, both leaders claimed they were best placed to negotiate.

Albanese insisted Australia had got one of the best results in the world, while Dutton asserted, without evidence, that he would be able to negotiate a better one.

More broadly, the Trump tariffs have contributed to a growing sense of unease in the electorate.

A recent YouGov poll found that 66% of Australians no longer believe the US can be relied on for defence and security. According to Paul Smith, the director of YouGov, this is a “fundamental change of worldview”.

In the same poll, 71% of Australians also said they were either concerned or very concerned Trump’s policies would make Australia worse off.

While neither party has signalled it would make a fundamental shift in Australia’s alliance with the US if elected, that doesn’t mean changes aren’t possible.

Independents and minor parties may well play a significant role in the formation of the next government. Some, like Zoe Daniel and Jacqui Lambie, are increasingly vocal about the risks the Trump administration poses to Australia.

A limit to Trumpism’s appeal

As election day approaches, many of the assumptions driving conventional Australian political thinking are under pressure.

Labor’s recovery in the polls, and the Liberals’ election win in Canada, suggest assumptions about the dangers of incumbency might have been misplaced. The dissatisfaction with incumbent governments last year may have had more to do with unresponsive political parties and systems.

There’s evidence emerging, instead, that in more responsive democracies with robust institutions like Australia and Canada, Trumpism does not have great appeal.

The idea that “kindness is not a weakness” may yet prove to be a winning political strategy.

Emma Shortis is Director of International and Security Affairs at The Australia Institute, an independent think tank.

– ref. Donald Trump has cast a long shadow over the Australian election. Will it prove decisive? – https://theconversation.com/donald-trump-has-cast-a-long-shadow-over-the-australian-election-will-it-prove-decisive-255422

MIL OSI Analysis – EveningReport.nz –

May 1, 2025

MIL-Evening Report: Australians are warming to minority governments – but they still prefer majority rule

Source: The Conversation (Au and NZ) – By Nicholas Biddle, Professor of Economics and Public Policy, ANU College of Arts and Social Sciences, Australian National University

Minority governments have been part of Australia’s political history since Federation.

In the country’s early decades, Prime Ministers Edmund Barton, Alfred Deakin, Chris Watson, George Reid and Andrew Fisher all led without commanding a majority in the House of Representatives. Since the second world war, majority governments have become the norm at the national level, underpinned by the two-party system of Labor and the Liberal-National Coalition.

Minority government has been rare, with the notable exception of Julia Gillard’s Labor government from 2010 to 2013. However, at the state/territory level, minority governments are far more common.

The 2025 federal election could mark another shift. While Labor has pulled ahead in the polls over the course of the campaign, a minority government remains a real possibility.

Even if a slim majority is achieved, the trend of falling primary votes for both major parties suggests minority governments could become more common in the years ahead.

We have examined new data from more than 3,600 respondents in the March/April wave of the 2025 Election Monitoring Survey Series (EMSS) from the School of Politics and International Relations (SPIR) at the ANU. The results shed light on how Australians feel about the prospect of minority government, and how these attitudes could shape political expectations.

Australians are more accepting of minority governments

When respondents were asked whether they found the idea of a minority government acceptable, more said they did (39.3%) than said they did not (32.6%).

This pattern is especially strong among Labor voters, minor party supporters, and those undecided about their vote. Only among Liberal voters was a minority government viewed more negatively, with a majority (51.8%) saying it would be unacceptable.

These findings suggest that minority government does not present the widespread illegitimacy and inefficiency to the electorate that is sometimes claimed by political leaders.

Fears of instability, but hopes for accountability

Despite growing acceptance, Australians are divided about the likely consequences of a minority government.

When asked whether a minority government would make politics more unstable or more representative and accountable, the country was split. About 42.7% expected more instability, while 37.6% expected greater representativeness. Another 19.6% believed it would make no real difference.

Again, partisan divides are stark. Coalition voters overwhelmingly expect instability (62.3%), whereas minor party supporters are more optimistic about minority government delivering better accountability.

These mixed expectations suggest while many suspect minority government will be a rocky ride, most expect little to no change. This is in contrast to recent claims a return to minority government would either further damage democracy or revitalise it by forcing change.

Public supports reforms to make minority government work

If a minority government emerges post-election, institutions will need to adapt. Some changes will be legislative, others cultural, some political.

Recognising the challenges that minority governments can bring, Australians are supportive of modest reforms to help them function more effectively.

Nearly half (47.6%) support establishing an independent body to oversee power-sharing agreements between major parties and crossbench MPs. A significant share (42.7%) also back requiring minority governments to sign formal agreements with the independents or minor parties they rely on.

These preferences suggest Australians are pragmatic: if minority governments are to become more common, they want safeguards and structures to ensure stability and transparency.

Trust varies across parties – and independents score well

Australians remain relatively confident in key institutions, particularly when compared to the polarisation in other democracies. Trust is also a key factor in how Australians view different political actors in a minority government setting.

When asked how much trust they have in different groups to act responsibly in a minority parliament, Labor emerges with the highest broad trust levels (50.4%), compared to the Liberal Party (43.0%). The Greens are the least trusted (35.7%). Trust in Independents is relatively high (45.7%).

It is also interesting to note recent research tracking trends in non-major party voting. These find the Greens are increasingly likely to win seats from the ALP, while the Independents are more likely to win seats from the LNP.

This matters. Who holds the balance of power has implications for maintaining trust in government. These results would indicate that if independents hold the balance of power, it may not undermine, but may actually contribute to, broader trust.

A preference for majority rule remains

Despite growing openness to minority governments, Australians still show a strong attachment to the traditional model of majority government in the House of Representatives.

When asked whether “stable and effective government requires a majority of seats for one of the two major parties within the House of Representatives”, 53.8% agreed or strongly agreed. Only 16% disagreed.

Support for this statement was strongest among Coalition voters (70.9%), but even a majority of Labor voters (54.7%) agreed. Only among minor party voters was disagreement more common.

This result is not unexpected. Both major parties assertively campaign that major party majority provides the continuity, the stability and the certainty the country needs. It is worth noting these results were recorded in the lead up to a federal election.

This result should also be set against over three decades of minority in the Senate.

These findings suggest Australians prefer majority government (qualified by a desire for accountability) over minority government (particularly if that majority is led by their own party!).

It will be interesting to track these attitudes in future EMSS should a minority government occur after May 3.

What it means for the 2025 election – and beyond

The 2025 federal election could be a turning point. If Labor wins a majority, it may delay a broader shift toward minority government politics. But if another minority parliament emerges, it will test the resilience of Australia’s political institutions and the evolving attitudes of voters.

Australians appear ready to give minority government a chance – but they want it to work.

Our only concrete reference point is the Gillard government. It was recognised for its negotiation, legislative success and running full term, but widely viewed as a political failure. What this revealed is the importance of minority government that adopts a pragmatic, inclusive and flexible approach to governance.

Whatever the result, Australian electoral trends tell us minority governments are no longer the outlier they once were in Australian politics. Voters, political leaders, and importantly public institutions may need to adapt to a new norm in Australian politics.

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. Australians are warming to minority governments – but they still prefer majority rule – https://theconversation.com/australians-are-warming-to-minority-governments-but-they-still-prefer-majority-rule-255416

MIL OSI Analysis – EveningReport.nz –

May 1, 2025

MIL-OSI NGOs: Greenpeace USA marks Trump’s first 100 days with launch of global #TimetoResist campaign

Source: Greenpeace Statement –

WASHINGTON, D.C. (April 30, 2025) – This morning, Greenpeace USA campaigners marked the first 100 days of this administration’s second term by unfurling a powerful banner reading “We the People: Preserve, Protect, Defend” in front of the U.S. Constitution display at the National Archives, launching the organization’s new #TimeToResist global campaign.

Photos from the DC bannering can be found here.

This comes after 100 days of chaos and lawlessness, escalating threats to democracy, climate action, and civil rights – led by billionaire oligarchs and corporate bullies who are using money and insider relationships in Washington to try to silence dissent. Greenpeace USA’s campaign is a bold defense, not just of the planet, but the foundational freedoms that protect it.

Dr. Folabi Olagbaju, Democracy Campaign Director, Greenpeace USA, said: “Greenpeace’s mission has always been to preserve, protect, and defend our just green world and today, that means defending the very document that makes this critical advocacy work possible. We the People is a phrase that belongs to all of us… it is not owned by corporations, or billionaires, or politicians. As the constitutional rights to free speech and due process come under attack on university campuses, in major law firms, and even inside legacy journalism institutions, Greenpeace USA is making clear that our fight is not just about defending the environment and safeguarding climate: it’s about defending democracy itself.

“We are here to remind this administration, and the nation, that constitutional rights belong to the people. Free speech, protest, and dissent are not negotiable. They are the foundation of any livable future, and we will resist any effort to erase them.”

Greenpeace USA marked the first 100 days of this administration’s second term by unfurling a powerful banner reading “We the People: Preserve, Protect, Defend” © Tim Aubry / Greenpeace

With today’s action, Greenpeace USA declares: the next 100 days are ours — a time for the people to restore hope, to organize, to rise up, and to defy the suppression of dissent and justice.

The Time to Resist campaign will mobilize people across the United States and around the world to stand together, protect the right to dissent, and safeguard the future before it’s too late.Read more and see the global petition here.

Contact: Madison Carter, Greenpeace USA Senior Communications Specialist, [email protected]

Greenpeace USA is part of a global network of independent campaigning organizations that use peaceful protest and creative communication to expose global environmental problems and promote solutions that are essential to a green and peaceful future. Greenpeace USA is committed to transforming the country’s unjust social, environmental, and economic systems from the ground up to address the climate crisis, advance racial justice, and build an economy that puts people first. Learn more at www.greenpeace.org/usa.

MIL OSI NGO –

May 1, 2025

MIL-OSI USA: H.R. 881, DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act

Source: US Congressional Budget Office

H.R. 881 would prohibit the Department of Homeland Security (DHS) from providing funds to any higher education institution that hosts Confucius Institutes, which are nonprofit cultural and educational centers funded by the Chinese government. That prohibition also would apply to institutions that have financial relationships with Chinese universities or colleges that meet other criteria such as receiving funding from or providing support to elements of the Chinese Communist Party. H.R. 881 also would require DHS to report to the Congress on the number of education institutions that maintain relationships with Chinese entities of concern and receive funds from the department.

The requirements of H.R. 881 would not change the total amount of funding DHS provides to higher education institutions. CBO expects that the department would update its contracting and federal assistance procedures to ensure that it complies with H.R. 881. CBO estimates that those administrative and reporting efforts would cost less than $500,000. Any spending would be subject to the availability of appropriated funds.

The CBO staff contact for this estimate is Aldo Prosperi. The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.

Phillip L. Swagel

Director, Congressional Budget Office

MIL OSI USA News –

May 1, 2025

MIL-OSI USA: H.R. 2683, Remote Access Security Act

Source: US Congressional Budget Office

H.R. 2683 would authorize the Bureau of Industry and Security (BIS), an agency of the Department of Commerce, to issue licenses and impose penalties on exporters of technology that could be accessed over a network connection between foreign and U.S. entities, such as a cloud computing service. Under its current regulations, BIS can require licenses or impose penalties for the export, reexport, or in-country transfer of such technology. It is not authorized to take those actions when the technology is remotely accessed by foreign entities.

BIS has proposed rules that would expand export controls to cover cloud-based access to U.S. technology. Using information from BIS about its work on similar export controls, CBO anticipates that the agency would need seven full-time employees to finalize regulations, process license applications, and identify unlicensed exporters. Based on information from BIS, CBO estimates that annual compensation for each of those employees would cost $240,000 and total $9 million over the 2025-2030 period. Such spending would be subject to the availability of appropriated funds.

The costs of the legislation, detailed in Table 1, fall within budget function 050 (national defense).

Table 1. Estimated Budgetary Effects of H.R. 2683
	By Fiscal Year, Millions of Dollars
	2025	2026	2027	2028	2029	2030	2025-2030
Estimated Authorization	*	1	2	2	2	2	9
Estimated Outlays	*	1	2	2	2	2	9

CBO estimates that enacting H.R. 2683 would increase the number of people who would be subject to civil or criminal penalties for violating U.S. export laws. Penalties are recorded as revenues and a portion of those penalties can be spent without further appropriation. Because CBO expects that very few people would be subject to penalties, CBO estimates that the bill’s enactment would have insignificant effects on both revenues and direct spendingand would, on net, reduce deficits by insignificant amounts over the 2025-2035 period.

H.R. 2683 would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) on exporters by requiring them to obtain an export license from BIS before allowing remote access of technologies subject to export controls, such as superconductor chips, to foreign entities. The cost of the mandate would be the costs to comply with BIS regulations and the loss of income from losing access to some foreign markets otherwise available to them under current law. Based on industry data of the size and value of cloud services and superconductor chips that would be affected, CBO estimates that the cost of regulatory compliance and losses in revenue would exceed the threshold established in UMRA for private-sector mandates ($206 million in 2025, adjusted annually for inflation).

The bill would not impose intergovernmental mandates as defined in UMRA.

The CBO staff contacts for this estimate are Aldo Prosperi (for federal costs) and Grace Watson (for mandates). The estimate was reviewed by Christina Hawley Anthony, Deputy Director of Budget Analysis.

Phillip L. Swagel

Director, Congressional Budget Office

MIL OSI USA News –

May 1, 2025

MIL-OSI USA: Governor Polis Unveils New Housing In Castle Rock, Celebrates Women in the Trades Who Strengthen Colorado’s Economy

Source: US State of Colorado

CASTLE ROCK/DENVER – Today, Governor Polis unveiled 200 new homes for hardworking Coloradans at the Meadowmark community in Castle Rock. Last year, Governor Polis signed legislation to create more transit-oriented communities, eliminate discriminatory occupancy limits, get rid of costly parking restrictions, and give Coloradans the freedom to build Accessory Dwelling Units on their property. These efforts to break down government barriers to new housing continue to help bring more homes that Coloradans can afford to communities across the state.

“Each grand opening of new homes proves that by removing unnecessary government barriers, the market is responding to the deep need for more housing Coloradans can afford across the state. Today we unveiled 200 new homes in Castle Rock for hardworking Coloradans and families, and I look forward to building on our progress, making more housing for Coloradans and our families,” said Governor Polis.

Now, building on last year’s success, Governor Polis is supporting legislation to break down barriers for modular housing, allow communities to build more single-stair buildings that will save Coloradans money on housing, support the construction of more condos that Coloradans can afford, and support schools and churches in using their lands to build more homes for Coloradans.

Governor Polis also attended the Emily Griffith Women in the Trades Celebration to highlight the importance of Colorado women in the trades and Colorado’s emphasis on creating pathways to opportunity for everyone that strengthen Colorado’s workforce and economy.

“Today’s celebration confirms that in Colorado, the trades are for everyone. We are focused on connecting Coloradans, no matter who you are, with the skills needed to get a good-paying job. Our workforce and economy are made stronger by our efforts to create new opportunities and pathways for women to join the trades,” said Governor Polis.

Earlier this month, Governor Polis signed bipartisan legislation to create a new Associate of Applied Science degree at Emily Griffith Technical College, creating new opportunities for students of all backgrounds to participate in apprenticeships in HVAC, plumbing, electrical work, and more.

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MIL OSI USA News –

May 1, 2025

MIL-OSI Canada: Irrigation Development Program Intake Closing

Source: Government of Canada regional news

Released on April 30, 2025

The Ministry of Agriculture will be closing application intake under the Irrigation Development Program as of April 30, 2025. Applications may still be submitted under the program from April 30 to May 30, but those projects must be completed, with claims submitted, by December 31, 2025.

The program supports infrastructure development to increase irrigation capacity by creating a secure water supply to land parcels suitable for irrigation. Introduced in April 2023, the successful program has seen high uptake from producers and is now fully subscribed. From the program’s launch on April 1, 2023, to March 31, 2025, 202 applications were received, and over 41,000 acres of irrigated acres were developed.

“The strong demand for this program demonstrates the interest in increasing production and crop diversity through irrigation,” Agriculture Minister Daryl Harrison said. “This government is committed to supporting irrigation through a variety of programs and projects. Saskatchewan’s Growth Plan sets the goal of reaching 85,000 irrigated acres by 2030, which is already 95 per cent achieved and expected to be surpassed in 2025.”

The Ministry of Agriculture is committed to funding all projects pre-approved through to May 30, 2025, and completed by the claim deadline. The claim deadlines for those projects pre-approved before April 30 are indicated in the Ministry’s letter of pre-approval to each applicant.

The Irrigation Development Program is one of many ways in which the Government of Saskatchewan provides support for irrigation expansion in the province. Irrigation allows more diverse crops to be grown and increases the number of livestock that can be supported. It is also important for strengthening rural economies and stabilizing crop production with a consistent source of moisture.

For more information, please visit saskatchewan.ca.

-30-

For more information, contact:

MIL OSI Canada News –

May 1, 2025

MIL-OSI Canada: Tribunal Continues Order—Silicon Metal from China

Source: Government of Canada News

Ottawa, Ontario, April 30, 2025—The Canadian International Trade Tribunal today continued its order made on August 22, 2019, in expiry review RR‑2018‑003, continuing, without amendment, its finding made on November 19, 2013, in inquiry NQ‑2013‑003, concerning the dumping and subsidizing of silicon metal containing at least 96.00 percent but less than 99.99 percent silicon by weight, and silicon metal containing between 89.00 percent and 96.00 percent silicon by weight that contains aluminum greater than 0.20 percent by weight, of all forms and sizes, from the People’s Republic of China.

The Canadian International Trade Tribunal found that the expiry of the order was likely to result in injury to the domestic industry. As such, the Tribunal continued its order. The Canada Border Services Agency will therefore continue to impose anti-dumping and countervailing duties on this product.

The Canadian International Trade Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

MIL OSI Canada News –

May 1, 2025

MIL-OSI USA: SBA Announces New Grant Funding to Support Made in America Manufacturing

Source: United States Small Business Administration

WASHINGTON – Today, the U.S. Small Business Administration (SBA) announced a new funding opportunity as part of its Made in America Manufacturing Initiative, the agency’s targeted effort to restore the U.S industrial base, bring back American jobs, and promote our nation’s economic dominance and national security.

The Manufacturing in America Grant Initiative will provide three eligible applicants up to $1.1 million total to deliver training and technical assistance to support small manufacturers in the SBA’s Empower to Grow (E2G) Program – including those businesses in key industries such as timber, energy, aluminum, and steel. SBA’s E2G Program is designed to provide eligible U.S. small businesses with free business courses, hands-on training, and one-on-one consulting to support their growth, operations, hiring, regulatory compliance, and government contracting competitiveness.

“The SBA is investing in small manufacturers across the country – arming them with the training and tools to dominate critical industries and drive our industrial comeback,” said SBA Administrator Kelly Loeffler. “With this new grant, the agency will accelerate the return of American supply chains, production power, and economic independence. Under President Trump’s leadership, we are rebuilding the backbone of American industry – and with it, the jobs and communities that are at the heart of our nation.”

To be eligible for this funding opportunity, an applicant must:

Be a for-profit or not-for-profit entity (including, but not limited to small businesses, other-than small businesses, trade and professional associations, and educational institutions).
Have been in existence continually for at least the past three years.
Have experience providing technical assistance, tools, or training, etc. relating to small manufacturing businesses on a regional or national basis; and
Demonstrate that it has the capacity to provide hands-on manufacturing-related training and technical assistance to small business concerns.

The deadline to submit proposals electronically via Home | Grants.gov is May 12, no later than 11:59 p.m. EDT. To learn more about this grant opportunity, visit here.

The SBA will host a webinar on the following date to inform the public about the grants. Registration is required through the provided link.

For more questions about the Manufacturing grants and webinars, visit: Manufacturing Grants.

Additional questions or requests for assistance should be submitted via email to e2g@sba.gov .

# # #

About the Empower to Grow Program
The Empower to Grow program, formerly known as 7(j) Management and Technical Assistance program, provides eligible U.S. small businesses with free business courses, tailored training, and one-on-one consulting to support their growth, operations, hiring, regulatory compliance, and government contracting competitiveness. The Empower to Grow program uplifts businesses to be procurement ready for federal, state, and local government contracts. For more questions about the Empower to Grow program, visit: Empower to Grow Program.

About the U.S. Small Business Administration

The U.S. Small Business Administration helps power the American dream of entrepreneurship. As the leading voice for small businesses within the federal government, the SBA empowers job creators with the resources and support they need to start, grow, and expand their businesses or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

MIL OSI USA News –

May 1, 2025

MIL-OSI Africa: Operation Shanela nets more than 600 suspects in North West

Source: South Africa News Agency

Over 600 suspects were arrested in Operation Shanela in the North West, said the South African Police Service (SAPS).

Police operations in collaboration with other law enforcement agencies that ran from 21-27 April, led to the arrest of 667 suspects.

“The operations, which were conducted under Operation Shanela resulted in the arrest of 667 suspects and recoveries of among others, 12 rounds of ammunition, drugs, three shotguns, 57 cell phones, liquor and other contraband such as cigarettes.

“Out of the 667 suspects, 35 were nabbed for driving under influence of alcohol or drugs, seven for illegal possession of firearms and ammunition, 56 for possession of drugs, 17 for illegal dealing in liquor, 69 for assault with intent to do grievous bodily harm (GBH), 41 for common assault, five for murder and 14 for burglaries at residential and business premises,” said the Office of the Provincial Commissioner of the North West.

The operations covered all the province’s districts and included the setting of roadblocks on all the national and provincial arterial roads, tracing of wanted suspects, stop and searches and compliance inspections at liquor selling outlets and closing of unlicensed liquor premises.

The Anti-Gang Unit arrested three Lesotho foreign nationals on Friday, 25 April 2025, after being found in possession of unlicensed firearms and ammunition.

The first suspect was arrested for illegal possession of a Norinco firearm with eight rounds of ammunition.

The other two suspects, Seronthe Thipe, and Thabo Mphinyame, were found in possession of an unlicensed revolver, four rounds of ammunition and spent 9mm cartridge.

All three accused: Rethabile Ntoyi, 39, Nthipu, 30, and Thabo Mphinyame, 40 appeared in the Orkney Magistrates’ Court on Tuesday, 29 April 2025.

“They were all remanded in custody until Friday, 09 May 2025, for further investigation,” said the SAPS.

The Acting Provincial Commissioner of Police in the North West, Major General Patrick Asaneng has called on communities in the Matlosana Municipality including community policing forums and ward councillors not to harbour illegal foreigners who are in the main involved is serious violent crimes such as murders, robberies and damage of essential infrastructure.

“These suspects are often arrested in possession of illegal firearms including automatic rifles smuggled into area and which are not traceable due to them not being in the Central Registry database,” said Asaneng. –SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI Africa: Major boost for emerging N West poultry farmer

Source: South Africa News Agency

Wednesday, April 30, 2025

To strengthen rural economies, fight poverty, and ensure food security in the province, the MEC for North West Agriculture and Rural Development, Madoda Sambatha, officially presented a modern poultry facility to an emerging farmer.

The 5 000-layer poultry structure was handed over to Sibongile Gumede of Bongi G Farm, located in Lindequesdrift, as part of the fourth phase of the Accelerated Service Delivery Programme at the JB Marks Municipality.

According to the provincial government, the facility will enable Bongi G Farm to scale up egg production significantly, contributing to local food supply chains and creating employment opportunities within the province.

Bongi G is an enterprise dedicated to producing naturally grown, free-range poultry and eggs.

The farm’s eggs undergo regular grading by the South African Poultry Association (SAPA) to ensure quality.

Sambatha emphasised empowering small-scale farmers with the infrastructure and resources necessary for sustainable growth.

“The handover is not just about providing a farm, it’s about creating growth opportunities, ensuring food security, and nurturing the essence of entrepreneurship within farmers,” the MEC added.

He further encouraged Bongi G to utilise the resources they are available responsibly and continue working towards sustainable agricultural practices that will benefit future generations.

Speaking about receiving the state-of-the-art poultry structure, Gumede said: “I am beyond grateful to the department for this opportunity. I am now able to sustain myself, create jobs, and, through the progress I have made, I have even managed to build a 3 000-layer structure on my own.“

The department said the handover of the farm marks a momentous breakthrough in the province’s ongoing efforts to promote agricultural development, empowering local farmers and strengthening the agricultural sector, whilst ensuring that local farmers have the tools and support they need to thrive. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI Africa: Gauteng welcomes significant reduction in Easter road fatalities

Source: South Africa News Agency

Wednesday, April 30, 2025

The Gauteng Provincial Government (GPG) has welcomed the Easter Road Safety report, which reveals a significant 42% decline in road fatalities across the province during the holiday period.

According to the report released by Transport Minister Barbara Creecy, on Tuesday, road fatalities in the province had dropped from 52 last year to 22 in 2025 during Easter.

Nationally, fatalities dropped from 307 in 2024 to 167 in 2025 – a 45% decrease.

“The significant drop in road carnage is a clear indicator that early planning, integrated operations, and people-centred communication can deliver life-saving results,” Gauteng Premier, Panyaza Lesufi said in a statement.

The provincial government indicated that the sustained road safety campaign is at the core of the reduced fatalities.

“This achievement is not only a reflection of intensified and coordinated law enforcement efforts on high-risk corridors, but also of the success of Gauteng’s early and sustained road safety campaign – rolled out under the national banner of ‘E Thoma Ka Wena, It Starts With You’.

“This flagship campaign saw coordination from various multi-disciplinary forces across the province, including sharing public preventable ways to avoid distractions that leads to fatalities on the roads. As the province with the highest concentration, the [provincial Transport] department took a comprehensive and integrated approach in infrastructure development and enforcement to influence behaviour,” the provincial government said.

The Easter road safety campaign is expected to end next Sunday.

“The MEC of Roads and Transport, Kedibone Diale-Tlabela urges all road users to continue abiding by the rules of the road and avoid driving under the influence. The Easter Road Safety campaign will end on 4 May 2025 due to the high number of long weekends during this period,” the provincial government said. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI Africa: Minister to preside over reburial ceremony of anti-Apartheid activists

Source: South Africa News Agency

Wednesday, April 30, 2025

Department of Justice and Constitutional Development (DJCOD) Minister Mmamoloko Kubayi will, on Saturday, preside over the handover and reburial ceremony of the exhumed remains of political activists who were hanged on death row for politically related offences.

The two activists are Benjamin Malesella Moloise and Abram Zakhele Mngomezulu who were executed by the Apartheid government during the 1980s.

“Benjamin Moloise, an activist of [the] ANC [African National Congress], was convicted in 1983 and executed in 1985 for the 1982 assassination of a security policeman. He denied any involvement, claiming his confession was made under duress. The ANC consistently maintained his innocence.

“Abram Mngomezulu, also an activist of the ANC, was executed on 25 May 1989 after being convicted for the 1987 murder of Mandla Khoza during a rent boycott protest in Soweto. He was sentenced to death, while four teenage co-accused received prison terms ranging from 8 to 15 years,” the department said in a statement.

The DJCOD described the handover and reburial service as “solemn and historic.”

“[The] handover and reburial…marks an important milestone in South Africa’s ongoing journey towards healing, justice, and reconciliation. Between 1960 and 1990, at least 130 individuals were executed on death row for politically motivated offences.

“At the time, the state withheld their remains, denying families the opportunity to mourn and bury their loved ones with dignity. These individuals were interred as paupers in cemeteries around Tshwane, without the knowledge or consent of their families.

“The upcoming ceremony will formally return the remains to their families, offering long-overdue closure and recognition of the ultimate sacrifices made in the struggle for freedom. The department, on behalf of the State, remains firmly committed to advancing justice, fostering national healing, and preserving the dignity of those who paid the highest price in the fight against apartheid,” the department said.

The ceremony will be held from 9am at the Orlando Communal Hall in Soweto on Saturday. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI Africa: Masemola tackles Sekhukhune service delivery challenges

Source: South Africa News Agency

Wednesday, April 30, 2025

In a drive to turn around municipal service delivery, the Deputy Minister of Cooperative Governance and Traditional Affairs (CoGTA), Dr Namane Dickson Masemola, will lead a high-level oversight visit to the Sekhukhune District Municipality today.

The visit forms part of CoGTA’s national campaign: “Every Municipality Must Work” – an initiative aimed at speeding up service delivery and breathing new life into municipalities.

Limpopo MEC for Cooperative Governance, Human Settlements, and Traditional Affairs (COGHSTA), Basikopo Rogers Makamu, will join Masemola on the visit.

“The visit is aligned with the implementation of the District Development Model (DDM) – a whole-of-government and whole-of-society approach designed to ensure coordinated planning, integrated service delivery, and holistic development across all spheres of government,“ the department explained.

The DDM, a flagship government strategy, focuses on collaborative planning and action, particularly in municipalities that face challenges in governance and service delivery.

During the visit, Masemola and Makamu are expected to meet with local government officials, traditional leaders, and community stakeholders to assess how the municipality is functioning.

“The oversight visit will further serve as a strategic platform for collaborative problem-solving, to identify actionable solutions, catalysing innovation, and unlocking socio-economic opportunities within the district,” the department said. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

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