Residential Housing Market – Page 12

MIL-OSI: Patria Reports First Quarter 2025 Earnings Results

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, May 02, 2025 (GLOBE NEWSWIRE) — Patria (Nasdaq:PAX) reported today its unaudited results for the first quarter ended March 31, 2025. The full detailed presentation of Patria’s first quarter 2025 results can be accessed on the Shareholders section of Patria’s website at https://ir.patria.com/.

Alex Saigh, Patria’s CEO, said: “Patria is off to a very exciting start to 2025 as fundraising totaled a record $3.2 billion, highlighting the expanded reach of our investment platforms and distribution capabilities, and putting us in a strong position to achieve our $6 billion fundraising target for the year. We also reported 1Q25 FRE of $42.6 million, or $0.27 per share, representing year-over-year growth of 21% and 16%, respectively, despite the volatility in the region. Also, FEAUM grew 6% sequentially and 46% year-over-year, and we generated over $700 million of organic net inflows, reflecting an annualized organic growth rate of 9%. While a looming trade war and rising global economic concerns create potential headwinds, we believe we are well positioned to generate the $200 to $225 million of FRE we are targeting for 2025 as the increased diversification of our platform is paying off in terms of fundraising and profitable organic growth, enhancing our confidence in the three-year targets we introduced at our Investor Day back on December 9^th.”

Financial Highlights (reported in $ USD)

IFRS results included $13.6 million of net income attributable to Patria in Q1 2025. Patria generated Fee Related Earnings of $42.6 million in Q1 2025, up 21% from $35.1 million in Q1 2024, with an FRE margin of 55.1%. Distributable Earnings were $36.8 million for Q1 2025, or $0.23 per share.

Dividends

Patria declared a quarterly dividend of $0.15 per share to record holders of common stock at the close of business on May 14th, 2025. This dividend will be paid on June 12th, 2025.

Conference Call

Patria will host its first quarter 2025 earnings conference call via public webcast on May 2^nd, 2025, at 9:00 a.m. ET. To register and join, please use the following link:

https://edge.media-server.com/mmc/p/ah6qnzkp/

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

About Patria

Patria is a global alternative asset management firm focused on the mid-market segment, specializing in resilient sectors across select regions. We are the leading asset manager in Latin America and have a strong presence in Europe through our extensive network of General Partners relationships. Our on-the-ground presence combines investment leaders, sector experts, company managers, and strategic relationships, allowing us to identify compelling investment opportunities accessible only to those with local proficiency. With 36 years of experience and over $45 billion in assets under management, we consistently deliver attractive returns through long-term investments, while promoting inclusive and sustainable development in the regions where we operate. Further information is available at www.patria.com.

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

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

Investment Regions: Latin America, Europe and US

Forward-Looking Statements

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

Contact

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

The MIL Network –

May 2, 2025

MIL-OSI: Solid results for the first quarter of 2025 driven by good customer activity across the business and strong credit quality in an uncertain global environment. Net profit of DKK 5.8 billion.

Source: GlobeNewswire (MIL-OSI)

Press release

Danske Bank
Bernstorffsgade 40
DK-1577 København V
Tel. + 45 45 14 14 00

2 May 2025

Page 1 of 3

Solid results for the first quarter of 2025 driven by good customer activity across the business and strong credit quality in an uncertain global environment
Net profit of DKK 5.8 billion.

Carsten Egeriis, Chief Executive Officer, comments on the financial results:

“For Danske Bank, the first quarter of 2025 was a continuation of our satisfactory and stable performance in 2024. We delivered solid results in line with our expectations, driven by a steady development in core income and a stable cost level. In addition, credit quality remained strong, and this resulted in low loan impairments.

Our solid financial results and capital position enable us to be a strong financial partner that offers expert advice and helps our customers and society navigate the uncertainty. We continue to invest in technology and customer offerings, and we are well on track to meet our targets and to deliver on our Forward ’28 strategy.”

Solid financial performance

In a challenging market environment, we continued our work to deliver on our strategic ambitions and achieved a strong return on shareholders’ equity of 13.3% in the first quarter of 2025, up from 12.9% in the first quarter of 2024, while also reducing the cost/income ratio from 45.4% to 45.2%.

Net profit increased 2% to DKK 5.76 billion as a result of an 8% increase in net fee income, driven by solid customer demand for cash management and everyday banking activities, a 15% increase in net trading income, which also benefited from good customer activity, as well as lower operating expenses and low loan impairment charges. The increases in net fee income and net trading income were partly offset by slightly lower net interest income due to rate cuts and the divestment of the personal customer business in Norway as well as lower net income from insurance business, which was affected by a one-off provision.

The improvement was based on strong business customer activity as our Business Customers and Large Corporates & Institutions units both saw solid growth in lending volumes and an expanding customer base, underpinning core income line increases.

Continuously good demand for our products from personal customers in Denmark resulted, among other things, in an increase in deposits as well as in the market share of bank lending. We have therefore seen a stable performance, despite the divestment of the personal customer business in Norway, as deposit growth and the rise in net fee income due to strong customer activity partially offset the effect of interest rates coming down.

Sustainability remains a core pillar of our Forward ’28 strategy, and we have published our Climate Action Plan Progress Report 2024, which provides an update on the Group’s climate targets set in January 2023.

“Thanks to our strong capital and liquidity positions, we continue to support our customers in these uncertain times, as evidenced by our Q1 results. We saw a solid financial performance, driven in particular by strong business customer activity, which resulted in stable core banking income and higher net trading income. The increase in net profit was supported by stable costs and a low level of impairments,” says Cecile Hillary, Chief Financial Officer.

First quarter 2025 vs first quarter 2024

Total income of DKK 13.9 billion (DKK 14.0 billion in the first quarter of 2024)

Operating expenses of DKK 6.3 billion (DKK 6.3 billion in the first quarter of 2024)

Loan impairments of DKK 50 million (DKK 101 million in the first quarter of 2024)

Net profit of DKK 5.8 billion (DKK 5.6 billion in the first quarter of 2024)

Return on shareholders’ equity of 13.3% (12.9% in the first quarter of 2024)

Strong capital generation further supported capital ratios: Total capital ratio of 22.9 % and CET1 capital ratio of 18.4% (total capital ratio of 23.0% and CET1 capital ratio of 18.5% in the first quarter of 2024)

Stable economies in uncertain environment

Danske Bank’s results for the first quarter of 2025 highlight the resilience of the Nordic economies amid global uncertainty. In the first quarter of 2025, we saw an increasingly promising outlook for growth and inflation and robust employment across the Nordic countries. Although household credit demand remained modest, consumer spending continued to hold up well throughout the Nordic countries, despite the higher degree of uncertainty.

Globally, US tariffs and potential retaliatory measures have created significant uncertainty regarding global growth prospects. While a potential risk of recession is highlighted in the US, a more moderate impact is expected on European growth, including in the Nordic countries.

“A trade war and tariffs are likely to dampen growth in the Nordic countries, but the foundation is still in place for a decent economic outlook, as many interest rates have been lowered, real incomes are increasing and export markets other than the US continue to grow,” says Las Olsen, Head of Macro Research.

Personal Customers

Despite challenges, the housing market in Denmark showed consistent growth, and signs of recovery emerged in Finland, while Sweden’s housing market continued to face difficulties. Profit before tax for Personal Customers decreased 18% relative to the level in the first quarter of 2024 and amounted to DKK 2.25 billion. The decrease was due mainly to higher loan impairment charges. Additionally, both income and operating expenses were affected by the divestment of our personal customer business in Norway. We concluded negotiations with Blackrock to implement their Aladdin Wealth platform to enhance investment services and improved the digital self-service tools that customers use to manage their mortgages.

Business Customers

In the first quarter of 2025, we expanded our customer base in the mid-sized segment across the Nordic markets and grew our business with international subsidiaries. Profit before tax amounted to DKK 2.83 billion and increased 64% from the level in the same period last year, primarily on the back of loan impairment reversals and increased net fee income, although the increase was to some degree offset by lower income from our leasing company. We continued to support our customers’ business growth as a strategic financial partner, sharing expert insights on economic issues and launching training programmes to enhance the skills of our leaders and advisers.

Large Corporates & Institutions

Despite increased geopolitical uncertainty, macroeconomic conditions remained stable. We supported customers with advisory services, backed by a strong product offering, and supported major bond issues in the Nordic region. Our fee business maintained the positive momentum across all areas. Profit before tax decreased to DKK 2.4 billion, or 12% relative to the level in the same period last year, due to higher loan impairment charges, although the return on allocated capital before impairments increased to 27.2%.

Danica

Danica experienced a decrease in net income from insurance business to DKK 201 million in the first quarter of 2025, a fall of 59% from DKK 492 million in the same period last year. This was due primarily to a decrease in the insurance service result, which was impacted by provisions related to legacy life insurance products in run-off and more expensive claims in the health and accident business, partly offset by adjustment of an accrued interest income. The return on customer pension savings was impacted by large volatility in the equity markets, but bonds and alternative investments saw a more stable development.

Northern Ireland

Profit before tax increased 32% to DKK 602 million, reflecting strong growth in net interest income and net impairment recoveries. Profit before impairments was 15% higher than for the same period in 2024.

Outlook for 2025

We maintain our guidance and expect net profit to be in the range of DKK 21-23 billion. The outlook is subject to uncertainty and depends on economic conditions.

Danske Bank

Contact: Helga Heyn, Head of Media Relations, tel. +45 45 14 14 00

Attachments

The MIL Network –

May 2, 2025

MIL-OSI: Quaint Oak Bancorp, Inc. Announces First Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

Southampton, PA , May 01, 2025 (GLOBE NEWSWIRE) — Quaint Oak Bancorp, Inc. (the “Company”) (OTCQB: QNTO), the holding company for Quaint Oak Bank (the “Bank”), announced today net loss for the quarter ended March 31, 2025 of $83,000, or $(0.03) per basic and diluted share, compared to net income of $873,000, or $0.36 per basic and diluted share, for the same period in 2024.

Robert T. Strong, Chief Executive Officer stated, “First quarter results historically are not the best of our calendar year. Our first quarter results of this year certainly proved true with slightly less than a breakeven performance. The trends in the country’s real gross domestic product shrinkage of -0.3% in the first quarter 2025 from growth of 2.4% in the fourth quarter of 2024 is a testament to the reality we have experienced.”

Mr. Strong added, “Uncertainty of the country’s direction in world trade and other domestic issues have had the effect of slowing commitments in the business sector. The housing market has failed to thrive so far this year, rendering our mortgage banking subsidiary to a relatively neutral production mode. Small Business loans both in the SBA category and our portfolio category are slow to close with business owners waiting to gauge the momentum of 2025.”

Mr. Strong continued, “On a more positive note, the Bank’s pipeline for commercial loans, SBA loans and mortgage loans is relatively strong which would indicate that as the uncertainty in political direction is clarified, our prospects for loan closings should improve.”

Mr. Strong commented, “We have been reporting weakness in the small business sector of our loan portfolio which still exists. Although both the non-performing loans as a percentage of total loans receivable, net and our non-performing assets as a percentage of total assets experienced a marginal increase over the previous quarter ended December 31, 2024, both have improved over the quarter ended March 31, 2024. Our Texas Ratio is 9.22% at the quarter ended March 31, 2025, down from 11.96% at the quarter ended March 31, 2024. Additionally, I am pleased to report that the Bank’s Total Risk-Based Capital Ratio improved to 13.92% at March 31, 2025 from 13.61% at March 31, 2024.”

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

Comparison of Quarter-over-Quarter Operating Results

Net loss amounted to $83,000 for the three months ended March 31, 2025, a decrease of $956,000, or 109.5%, compared to net income of $873,000 for the three months ended March 31, 2024. The decrease in net income on a comparative quarterly basis was primarily the result of a decrease in interest and dividend income of $2.2 million, an increase in non-interest expense of $419,000, and a decrease in net income from discontinued operations of $406,000, partially offset by a decrease in interest expense of $930,000, a decrease in the provision for credit losses of $695,000, a decrease in the net provision for income taxes from continuing operations of $262,000, and an increase in non-interest income of $178,000.

The $2.2 million, or 18.1%, decrease in interest and dividend income was primarily due to a decrease in the average balance of loans receivable, net, which decreased $69.8 million from $658.4 million for the three months ended March 31, 2024 to $588.7 million for the three months ended March 31, 2025 and had the effect of decreasing interest income $1.2 million, a 35 basis point decrease in the average yield on loans receivable, net from 6.82% for the three months ended March 31, 2024 to 6.47% for the three months ended March 31, 2025, and had the effect of decreasing interest income $519,000, and a $31.1 million decrease in the average balance of due from banks – interest earning, which decreased from $68.2 million for the three months ended March 31, 2024 to $37.1 million for the three months ended March 31, 2025, and had the effect of decreasing interest income $356,000.

The $930,000, or 13.9%, decrease in interest expense for the three months ended March 31, 2025 over the comparable period in 2024 was driven by a $1.3 million, or 21.0%, decrease in interest expense on deposits, which was primarily attributable to reduced correspondent banking activity. Also contributing to the decrease in interest expense for the three months ended March 31, 2025 was a $237,000, or 97.9%, decrease in the interest expense on Federal Home Loan Bank long-term borrowings due to a $23.3 million, or 92.8%, decrease in the average balance of Federal Home Loan Bank long-term borrowings which decreased from $25.1 million for the three months ended March 31, 2024 to $1.8 million for the three months ended March 31, 2025 and a $32,000, or 6.6%, decrease in interest expense on subordinated debt. These decreases in interest expense were partially offset by a $479,000, or 100.0%, increase in the interest expense on Federal Home Loan Bank short-term borrowings due to a $43.2 million, or 100.0%, increase in the average balance of Federal Home Loan Bank short-term borrowings which increased from none for the three months ended March 31, 2024 to $43.2 million for the three months ended March 31, 2025, and a $116,000, or 100.0% increase in interest expense on senior debt. The average interest rate spread increased from 2.06% for the three months ended March 31, 2024 to 2.13% for the three months ended March 31, 2025 while the net interest margin decreased from 2.96% for the three months ended March 31, 2024 to 2.63% for the three months ended March 31, 2025.

The $695,000, or 61.2%, decrease in the provision for credit losses for the three months ended March 31, 2025 over the three months ended March 31, 2024 was primarily due to a decrease in loans receivable, net, partially offset by an increase in charge-offs during the three months ended March 31, 2025.

The $178,000, or 11.3%, increase in non-interest income for the three months ended March 31, 2025 over the comparable period in 2024 was primarily attributable to a $279,000, or 996.4%, increase in gain on sale of SBA loans, a $121,000, or 12.9%, increase in net gain on sale of loans, and a $33,000, or 21.7%, increase in insurance commissions. These increases were partially offset by a $195,000, or 85.9%, decrease in other fees and service charges, a $60,000, or 29.1%, decrease in mortgage banking, equipment lending and title abstract fees, and a $4,000, or 100.0%, decrease in real estate sales commissions, net.

The $419,000, or 8.2%, increase in non-interest expense for the three months ended March 31, 2025 over the comparable period in 2024 was primarily due to a $181,000, or 72.4%, increase in occupancy and equipment expense, a $139,000, or 52.9%, increase in data processing expense, an $82,000, or 58.2%, increase in professional fees, a $55,000, or 11.3%, increase in other expense, a $14,000, or 27.5%, increase in directors’ fees and expenses, and a $13,000, or 15.1%, increase in advertising expense. These increases were partially offset by a $52,000, or 30.1%, decrease in FDIC deposit insurance assessment, and a $13,000, or 0.4%, decrease in salaries and employee benefits expense.

The provision for income tax from continuing operations decreased $262,000, or 99.2%, from $264,000 for the three months ended March 31, 2024 to $2,000 for the three months ended March 31, 2025 due primarily to a decrease in pre-tax income.

Comparison of Financial Condition

The Company’s total assets at March 31, 2025 were $650.4 million, a decrease of $34.8 million, or 5.1%, from $685.2 million at December 31, 2024. This decrease in total assets was primarily due to a $14.1 million, or 22.4%, decrease in cash and cash equivalents, a $13.3 million, or 20.7%, decrease in loans held for sale, and an $8.3 million, or 1.6%, decrease in loans receivable, net of allowance for credit losses. The largest decreases within the loan portfolio occurred in commercial real estate loans which decreased $9.6 million, or 3.2%, commercial business loans which decreased $8.9 million, or 7.8%, and one-to-four family non-owner occupied loans which decreased $946,000, or 2.8%. Partially offsetting these decreases were construction loans which increased $4.2 million, or 22.7%, one-to-four family owner occupied loans which increased $4.1 million, or 15.9%, and home equity loans which increased $2.8 million, or 49.3%. Also contributing to the decrease in assets was a $208,000, or 12.5%, decrease in investment securities available for sale, and a $40,000, or 2.5%, decrease in premises and equipment, net. Partially offsetting the decrease in total assets was a $686,000, or 31.0%, increase in investment in Federal Home Loan Bank stock, at cost, a $301,000, or 3.9%, increase in prepaid expenses and other assets, a $227,000, or 5.7%, increase in accrued interest receivable, and a $30,000, or 0.7%, increase in bank-owned life insurance.

Loans held for sale decreased $13.3 million, or 20.7%, from $64.3 million at December 31, 2024 to $50.9 million at March 31, 2025 as the Bank’s mortgage banking subsidiary, Quaint Oak Mortgage, LLC, originated $19.6 million of one-to-four family residential loans during the three months ended March 31, 2025 and sold $24.8 million of loans in the secondary market. The Bank’s commercial real estate subsidiary, Oakmont Commercial, LLC, originated $9.4 million of commercial real estate loans during the three months ended March 31, 2025 and sold $17.8 million of loans in the secondary market during this same period. Additionally, the Bank originated $4.9 million of SBA loans and sold $3.7 of loans in the secondary market in the same period.

Total deposits decreased $45.7 million, or 8.3%, to $507.6 million at March 31, 2025 from $553.3 million at December 31, 2024. This decrease in deposits was primarily attributable to a decrease of $47.8 million, or 100.0%, in interest bearing checking accounts as the Company exited one of its correspondent banking relationships. Also contributing to the decrease in deposits was a decrease of $18.0 million, or 11.1%, in money market accounts, and a $62,000, or 12.6%, decrease in savings accounts. These decreases in deposits were partially offset by an increase of $19.0 million, or 6.7%, in certificates of deposit, and an increase of $1.1 million, or 1.9%, in non-interest bearing checking accounts.

Total Federal Home Loan Bank (FHLB) borrowings increased $17.1 million, or 35.8%, to $65.0 million at March 31, 2025 from $47.9 million at December 31, 2024. During the period ended March 31, 2025, the Company borrowed $60.0 million of FHLB short-term borrowings, paid down $40.0 million of FHLB short-term borrowings, and paid down $2.9 million of FHLB long-term borrowings.

Senior debt, net of unamortized debt issuance costs, increased $9.5 million, or 100.0% from none at December 31, 2024 as the Company entered into a Senior Unsecured Note Purchase Agreement with certain institutional accredited investors pursuant to which the Company issued an aggregate of $9.75 million in aggregate principal amount of Fixed Rate Unsecured Senior Notes due March 1, 2028 (the “Notes”) in a private placement. The Company issued to an accredited individual investor an additional $250,000 in principal amount of the Notes as of March 4, 2025 for a total of $10.0 million in aggregate principal amount. The Notes bear interest at a fixed annual rate of 11.00%, payable semi-annually in arrears on March 1 and September 1 of each year, beginning September 1, 2025. The maturity date of the Notes is March 1, 2028.

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

Total stockholders’ equity from continuing operations decreased $353,000, or 0.7%, to $52.3 million at March 31, 2025 from $52.6 million at December 31, 2024. Contributing to the decrease were dividends paid of $341,000, and net loss for the period ended March 31, 2025 of $83,000. The decrease in stockholders’ equity was partially offset by amortization of stock awards and options under our stock compensation plans of $61,000, the reissuance of treasury stock under the Bank’s 401(k) Plan of $9,000, and other comprehensive income, net of $1,000.

Non-performing loans at March 31, 2025 totaled $5.9 million, or 1.13%, of total loans receivable, net of allowance for credit losses, consisting of $5.4 million of loans on non-accrual status and $513,000 of loans 90-days or more delinquent. Non-accrual loans consist of one one-to-four family residential owner occupied loan, eight commercial real estate loans, and twelve commercial business loans. Included in the twelve commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan, one commercial real estate loan and two commercial business loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the period ended March 31, 2025, seven commercial business loans totaling $419,000 that were previously on non-accrual were charged-off through the allowance for credit losses. Non-performing loans at December 31, 2024 totaled $5.7 million, or 1.07%, of total loans receivable, net of allowance for credit losses, consisting of $3.9 million of loans on non-accrual status and $1.8 million of loans 90-days or more delinquent. Non-accrual loans consist of one commercial real estate loan, and ten commercial business loans. Included in the ten commercial business loans is one pool of equipment loans. Loans 90-days or more past due include one one-to-four family residential owner occupied loan and two commercial real estate loans, all of which are still accruing. All non-performing loans are either well-collateralized or adequately reserved for. During the year ended December 31, 2024, 19 commercial business loans totaling $1.6 million, and one construction loan of $187,000, that were previously on non-accrual were charged-off through the allowance for credit losses.

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

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

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

QUAINT OAK BANCORP, INC.

Consolidated Balance Sheets

_{(In Thousands)}

		At March 31,		At December 31,
		2025		2024
		(Unaudited)		(Unaudited)
Assets
Cash and cash equivalents	$	48,859	$	62,989
Investment in interest-earning time deposits		912		912
Investment securities available for sale at fair value		1,458		1,666
Loans held for sale		50,946		64,281
Loans receivable, net of allowance for credit losses (2025: $6,388; 2024: $6,476)		526,374		534,693
Accrued interest receivable		4,188		3,961
Investment in Federal Home Loan Bank stock, at cost		2,900		2,214
Bank-owned life insurance		4,477		4,447
Premises and equipment, net		1,586		1,626
Goodwill		515		515
Other intangible, net of accumulated amortization		65		77
Prepaid expenses and other assets		8,088		7,787
Total Assets	$	650,368	$	685,168

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Non-interest bearing	$	60,928	$	59,783
Interest-bearing		446,654		493,469
Total deposits		507,582		553,252
Federal Home Loan Bank short-term borrowings		65,000		45,000
Federal Home Loan Bank long-term borrowings		–		2,855
Subordinated debt		8,000		22,000
Senior debt		9,487		–
Accrued interest payable		773		937
Advances from borrowers for taxes and insurance		2,044		3,122
Accrued expenses and other liabilities		5,218		5,385
Total Liabilities		598,104		632,551

Total Stockholders’ Equity		52,264		52,617
Total Liabilities and Stockholders’ Equity	$	650,368	$	685,168

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

	For the Three Months Ended March 31,
	2025			2024
	(Unaudited)
Interest and Dividend Income
Interest on loans, including fees	$	9,523		$	11,232
Interest and dividends on time deposits, investment securities, interest-bearing deposits with others, and Federal Home Loan Bank stock		403			890
Total Interest and Dividend Income		9,926			12,122

Interest Expense
Interest on deposits		4,729			5,986
Interest on Federal Home Loan Bank short-term borrowings		479			–
Interest on Federal Home Loan Bank long-term borrowings		5			242
Interest on Federal Reserve Bank short-term borrowings		1			–
Interest on subordinated debt		452			484
Interest on senior debt		116			–
Total Interest Expense		5,782			6,712
Net Interest Income		4,144			5,410
Provision for Credit Losses – Loans		326			1,084
Provision for Credit Losses – Unfunded Commitments		115			52
Net Interest Income after Provision for Credit Losses		3,703			4,274

Non-Interest Income
Mortgage banking, equipment lending and title abstract fees		146			206
Real estate sales commissions, net		–			4
Insurance commissions		185			152
Other fees and services charges		32			227
Net loan servicing income		4			2
Income from bank-owned life insurance		30			28
Net gain on sale of loans		1,056			935
Gain on the sale of SBA loans		307			28
Total Non-Interest Income		1,760			1,582

Non-Interest Expense
Salaries and employee benefits		3,650			3,663
Directors’ fees and expenses		65			51
Occupancy and equipment		431			250
Data processing		402			263
Professional fees		223			141
FDIC deposit insurance assessment		121			173
Advertising		99			86
Amortization of other intangible		12			12
Other		541			486
Total Non-Interest Expense		5,544			5,125
(Loss) income from continuing operations before income taxes		(81	)		731
Income Taxes		2			264
Net (loss) income from continuing operations		(83	)		467
Income from discontinued operations		–			564
Income tax from discontinued operations		–			158
Net income from discontinued operations		–			406
Net (Loss) Income	$	(83	)	$	873

	Three Months Ended March 31,
	2025			2024
	(Unaudited)
Per Common Share Data:
Earnings per share from continuing operations – basic	$	(0.03	)	$	0.20
Earnings per share from discontinued operations – basic	$	–		$	0.16
Earnings per share, net – basic	$	(0.03	)	$	0.36
Average shares outstanding – basic		2,626,967			2,450,814
Earnings per share from continuing operations – diluted	$	(0.03	)	$	0.20
Earnings per share from discontinued operations – diluted	$	–		$	0.16
Earnings per share, net – diluted	$	(0.03	)	$	0.36
Average shares outstanding – diluted		2,626,967			2,450,814
Book value per share, end of period	$	19.89		$	20.84
Shares outstanding, end of period		2,627,397			2,407,048

	Three Months Ended March 31,
	2025			2024
	(Unaudited)
Selected Operating Ratios:
Average yield on interest-earning assets		6.30	%		6.63	%
Average rate on interest-bearing liabilities		4.17	%		4.57	%
Average interest rate spread		2.13	%		2.06	%
Net interest margin		2.63	%		2.96	%
Average interest-earning assets to average interest-bearing liabilities		113.59	%		124.57	%
Efficiency ratio		70.40	%		73.29	%

Asset Quality Ratios (1):
Non-performing loans as a percent of total loans receivable, net		1.13	%		1.28	%
Non-performing assets as a percent of total assets		0.91	%		1.00	%
Allowance for credit losses as a percent of non-performing loans		107.45	%		97.24	%
Allowance for credit losses as a percent of total loans receivable, net		1.20	%		1.23	%
Texas Ratio (2)		9.22	%		11.96	%

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

The MIL Network –

May 2, 2025

MIL-OSI: HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025

Source: GlobeNewswire (MIL-OSI)

Shreveport, Louisiana, May 01, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended March 31, 2025, of $748,000 compared to net income of $732,000 reported for the three months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.24 for the three months ended March 31, 2025 and for the three months ended March 31, 2024. The Company reported net income of $2.7 million for the nine months ended March 31, 2025, compared to $3.0 million for the nine months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.88 for the nine months ended March 31, 2025 compared to $0.97 and $0.95, respectively, for the nine months ended March 31, 2024.

The Company reported the following highlights during the nine months ended March 31, 2025:

	●	Book value per share increased to $17.55 at March 31, 2025 from $16.80 at June 30, 2024.
	●	There were no advances from the FHLB at March 31, 2025 or June 30, 2024.
	●	Other borrowings totaled $4.0 million at March 31, 2025 compared to $7.0 million at June 30, 2024.

The increase in net income for the three months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from an increase of $270,000, or 6.1%, in net interest income, an increase of $32,000, or 6.3%, in non-interest income, and a decrease of $5,000, or 45.5%, in the provision for credit losses, partially offset by an increase of $260,000, or 6.5%, in non-interest expense and an increase of $31,000, or 17.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $735,000, or 21.1%, in total interest expense, partially offset by a decrease of $465,000, or 5.9%, in total interest income. The Company’s average interest rate spread was 2.66% for the three months ended March 31, 2025, compared to 2.16% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months ended March 31, 2025, compared to 2.89% for the three months ended March 31, 2024.

The decrease in net income for the nine months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from a decrease of $891,000, or 6.1%, in net interest income and an increase of $102,000, or 35.2%, in the provision for income taxes, partially offset by a decrease of $331,000, or 2.7%, in non-interest expense, an increase of $248,000, or 23.0%, in non-interest income, and an increase of $167,000 in the recovery of credit losses. The decrease in net interest income for the nine months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $1.2 million, or 5.1%, in total interest income, partially offset by a decrease of $329,000, or 3.5%, in total interest expense. The Company’s average interest rate spread was 2.44% for the nine months ended March 31, 2025, compared to 2.46% for the nine months ended March 31, 2024. The Company’s net interest margin was 3.14% for the nine months ended March 31, 2025, and the nine months ended March 31, 2024.

The following tables set forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

	For the Three Months Ended March 31,
	2025					2024
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	459,828		5.94	%	$	504,918		5.80	%
Investment securities		95,706		2.44			104,646		2.21	%
Interest-earning deposits		14,513		3.05			3,607		3.79	%
Total interest-earning assets	$	570,047		5.28	%	$	613,171		5.18	%

Interest-bearing liabilities:
Savings accounts	$	94,375		1.75	%	$	69,178		0.62	%
NOW accounts		69,562		1.15			68,170		0.58	%
Money market accounts		75,882		2.01			89,313		2.60	%
Certificates of deposit		182,721		3.76			222,534		4.36	%
Total interest-bearing deposits		422,540		2.57			449,195		2.86	%
Other bank borrowings		4,000		7.71			9,448		8.73	%
FHLB advances		–		–			5,956		5.87	%
Total interest-bearing liabilities	$	426,540		2.62	%	$	464,599		3.02	%

	For the Nine months ended March 31,
	2025					2024
	Average Balance		Average Yield/Rate			Average Balance		Average Yield/Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable	$	460,972		5.90	%	$	503,664		5.80	%
Investment securities		96,395		2.24			109,255		2.38	%
Interest-earning deposits		23,326		4.45			5,060		3.55
Total interest-earning assets	$	580,693		5.24	%	$	617,979		5.18	%

Interest-bearing liabilities:
Savings accounts	$	89,171		1.69	%	$	73,676		0.46	%
NOW accounts		71,022		1.17			67,145		0.47	%
Money market accounts		76,828		2.20			98,021		2.44	%
Certificates of deposit		191,936		4.04			209,985		4.05	%
Total interest-bearing deposits		428,957		2.75			448,827		2.58	%
Other bank borrowings		4,832		7.55			9,100		8.57	%
FHLB advances		–		–			4,151		5.77	%
Total interest-bearing liabilities	$	433,789		2.80	%	$	462,078		2.72	%

The $32,000 increase in non-interest income for the three months ended March 31, 2025, compared to the prior year quarterly period, was primarily due to an increase of $27,000 in other non-interest income, an increase of $19,000 in service charges on deposit accounts, an increase of $11,000 in gain on sale of loans, and an increase of $1,000 in income on bank owned life insurance, partially offset by a decrease of $26,000 in gain on sale of securities. The $248,000 increase in non-interest income for the nine months ended March 31, 2025 compared to the prior year nine-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $115,000 in other non-interest income, an increase of $14,000 in service charges on deposit accounts, and an increase of $5,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities, and a decrease of $3,000 in gain on sale of loans.

The $260,000 increase in non-interest expense for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to increases of $414,000 in data processing expense, $77,000 in occupancy and equipment expense, $67,000 in audit and examination fees, $49,000 in professional fees, $40,000 in other non-interest expense, $15,000 in loan and collection expense, and $12,000 in deposit insurance premium expense. The increases were partially offset by decreases of $317,000 in compensation and benefits expense, $55,000 in advertising expense, $33,000 in franchise and bank shares tax expense, and $9,000 in amortization of core deposit intangible expense. The $331,000 decrease in non-interest expense for the nine months ended March 31, 2025, compared to the same nine-month period in 2024, is primarily attributable to decreases of $470,000 in compensation and benefits expense, $184,000 in franchise and bank shares tax expense, $179,000 in advertising expense, $65,000 in other non-interest expense, $47,000 in professional fees, $42,000 in amortization of core deposit intangible expense, $22,000 in deposit insurance premium expense, and $19,000 in loan and collection expense. The decreases were partially offset by increases of $594,000 in data processing expense, $86,000 in occupancy and equipment expense, and $17,000 in audit and examination fees. The increase in data processing expense resulted from a billing discrepancy with our core processor, which had failed to issue invoices for certain services dating back to December 2022. Upon discovery of the issue, we negotiated a discounted settlement to resolve the outstanding invoices.

Total assets decreased $17.9 million, or 2.8%, from $637.5 million at June 30, 2024 to $619.6 million at March 31, 2025. The decrease in assets was comprised of decreases in net loans receivable of $12.6 million, or 2.7%, from $470.9 million at June 30, 2024 to $458.3 million at March 31, 2025, cash and cash equivalents of $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025, premises and equipment of $736,000, or 4.0%, from $18.3 million at June 30, 2024 to $17.6 million at March 31, 2025, loans-held-for-sale of $734,000, or 42.4%, from $1.7 million at June 30, 2024 to $999,000 at March 31, 2025, core deposit intangible of $216,000, or 18.0%, from $1.2 million at June 30, 2024 to $983,000 at March 31, 2025, investment securities of $102,000, or 0.1%, from $96.0 million at June 30, 2024 to $95.9 million at March 31, 2025, and partially offset by increases in real estate owned of $482,000, or 115.3% from $418,000 at June 30, 2024 to $900,000 at March 31, 2025, deferred tax asset of $186,000, or 15.7%, from $1.2 million at June 30, 2024 to $1.4 million at March 31, 2025, other assets of $178,000, or 13.2%, from $1.3 million at June 30, 2024 to $1.5 million at March 31, 2025, bank owned life insurance of $87,000, or 1.3%, from $6.8 million at June 30, 2024 to $6.9 million at March 31, 2025, and accrued interest receivable of $27,000, or 1.5%, from $1.78 million at June 30, 2024 to $1.8 million at March 31, 2025.

Total liabilities decreased $19.8 million, or 3.4%, from $584.7 million at June 30, 2024 to $564.9 million at March 31, 2025. The decrease in liabilities was comprised of decreases in total deposits of $17.2 million, or 3.0%, from $574.0 million at June 30, 2024 to $556.8 million at March 31, 2025, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at March 31, 2025, advances from borrowers for taxes and insurance of $137,000, or 26.3%, from $521,000 at June 30, 2024 to $384,000 at March 31, 2025, and partially offset by an increase in other accrued expenses and liabilities of $577,000, or 18.1%, from $3.2 million at June 30, 2024 to $3.8 million at March 31, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $32.5 million, or 15.1%, from $214.9 million at June 30, 2024 to $182.4 million at March 31, 2025, money market deposits of $5.7 million, or 6.6%, from $85.5 million at June 30, 2024 to $79.9 million at March 31, 2025, and non-interest deposits of $535,000, or 0.4%, from $130.3 million at June 30, 2024 to $129.8 million at March 31, 2025, partially offset by increases in savings deposits of $19.3 million, or 25.2%, from $76.6 million at June 30, 2024 to $96.0 million at March 31, 2025, and NOW accounts of $2.1 million, or 3.1%, from $66.6 million at June 30, 2024 to $68.7 million at March 31, 2025. The Company had no balances in brokered deposits at March 31, 2025 or June 30, 2024.

At March 31, 2025, the Company had $3.0 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.9 million of non-performing assets at June 30, 2024, consisting of six one-to-four family residential loans, six home equity loans, two commercial non-real estate loans, two commercial real-estate loans, and one consumer loan at March 31, 2025, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At March 31, 2025 the Company had nine one-to-four family residential loans, six home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and two consumer loans classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at March 31, 2025 or June 30, 2024.

Shareholders’ equity increased $1.9 million, or 3.6%, from $52.8 million at June 30, 2024 to $54.7 million at March 31, 2025. The increase in shareholders’ equity was comprised of net income for the nine-month period of $2.7 million, a decrease in the Company’s accumulated other comprehensive loss of $559,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $370,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, and stock repurchases of $517,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe”, “expect”, “anticipate”, “estimate”, and “intend”, or future or conditional verbs such as “will”, “would”, “should”, “could”, or “may”. We undertake no obligation to update any forward-looking statements.

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

HOME FEDERAL BANCORP, INC. OF LOUISIANA CONSOLIDATED BALANCE SHEETS (In thousands except share and per share data)

	March 31, 2025			June 30, 2024
	(Unaudited)
ASSETS

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $22,197 and $25,505 at March 31, 2025 and June 30, 2024, Respectively)	$	30,439		$	34,948
Securities Available-for-Sale (amortized cost March 31, 2025: $34,751; June 30, 2024: $30,348, Respectively)		32,149			27,037
Securities Held-to-Maturity (fair value March 31, 2025: $52,428; June 30, 2024: $54,450, Respectively)		63,066			67,302
Other Securities		636			1,614
Loans Held-for-Sale		999			1,733
Loans Receivable, Net of Allowance for Credit Losses (March 31, 2025: $4,632; June 30, 2024: $4,574, Respectively)		458,301			470,852
Accrued Interest Receivable		1,802			1,775
Premises and Equipment, Net		17,567			18,303
Bank Owned Life Insurance		6,897			6,810
Goodwill		2,990			2,990
Core Deposit Intangible		983			1,199
Deferred Tax Asset		1,367			1,181
Real Estate Owned		900			418
Other Assets		1,528			1,350

Total Assets	$	619,624		$	637,512

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES

Deposits:
Non-interest bearing	$	129,799		$	130,334
Interest-bearing		426,964			443,673
Total Deposits		556,763			574,007
Advances from Borrowers for Taxes and Insurance		384			521
Other Borrowings		4,000			7,000
Other Accrued Expenses and Liabilities		3,758			3,181

Total Liabilities		564,905			584,709

SHAREHOLDERS’ EQUITY

Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding		–			–
Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,118,764 and 3,142,168 Shares Issued and Outstanding at March 31, 2025 and June 30, 2024, Respectively		32			32
Additional Paid-in Capital		42,055			41,739
Unearned ESOP Stock		(336	)		(408	)
Retained Earnings		15,024			14,055
Accumulated Other Comprehensive Loss		(2,056	)		(2,615	)

Total Shareholders’ Equity		54,719			52,803

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	619,624		$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

(Unaudited)

	Three Months Ended				Nine months ended
	March 31,				March 31,
	2025		2024		2025			2024
Interest income
Loans, including fees	$	6,740	$	7,281	$	20,426		$	21,952
Investment securities		83		124		213			573
Mortgage-backed securities		493		451		1,406			1,384
Other interest-earning assets		109		34		779			135
Total interest income		7,425		7,890		22,824			24,044
Interest expense
Deposits		2,675		3,194		8,851			8,688
Federal Home Loan Bank borrowings		–		87		–			180
Other bank borrowings		76		205		274			586
Total interest expense		2,751		3,486		9,125			9,454
Net interest income		4,674		4,404		13,699			14,590

Provision for (recovery of) credit losses		6		11		(172	)		(5	)
Net interest income after provision for credit losses		4,668		4,393		13,871			14,595

Non-interest income
Gain on sale of loans		80		69		181			184
Loss on sale of real estate		–		–		(266	)		(415	)
Gain(Loss) on sale of securities		–		26		(6	)		26
Income on Bank-Owned Life Insurance		29		28		87			82
Service charges on deposit accounts		382		363		1,165			1,151
Other income		47		20		165			50
Total non-interest income		538		506		1,326			1,078


Non-interest expense
Compensation and benefits		2,136		2,453		6,667			7,137
Occupancy and equipment		610		533		1,711			1,625
Data processing		553		139		1,107			513
Audit and examination fees		150		83		473			456
Franchise and bank shares tax		135		168		304			488
Advertising		22		77		123			302
Professional fees		145		96		396			443
Loan and collection		46		31		104			123
Amortization Core Deposit Intangible		70		79		216			258
Deposit insurance premium		102		90		267			289
Other expenses		282		242		729			794
Total non-interest expense		4,251		3,991		12,097			12,428
Income before income taxes		955		908		3,100			3,245
Provision for income tax expense		207		176		392			290

NET INCOME	$	748	$	732	$	2,708		$	2,955

EARNINGS PER SHARE
Basic	$	0.24	$	0.24	$	0.88		$	0.97
Diluted	$	0.24	$	0.24	$	0.88		$	0.95

	Three Months Ended						Nine months ended
	March 31,						March 31,
	2025			2024			2025			2024

Selected Operating Ratios⁽¹⁾:
Average interest rate spread		2.66	%		2.16	%		2.44	%		2.46	%
Net interest margin		3.33	%		2.89	%		3.14	%		3.14	%
Return on average assets		0.50	%		0.45	%		0.58	%		0.60	%
Return on average equity		5.59	%		5.62	%		6.85	%		7.64	%

Asset Quality Ratios⁽²⁾:
Non-performing assets as a percent of total assets		0.49	%		0.37	%		0.49	%		0.37	%
Allowance for credit losses as a percent of non-performing loans		215.44	%		203.11	%		215.44	%		203.11	%
Allowance for credit losses as a percent of total loans receivable		1.00	%		0.97	%		1.00	%		0.97	%

Per Share Data:
Shares outstanding at period end		3,118,764			3,145,236			3,118,764			3,145,236
Weighted average shares outstanding:
Basic		3,061,928			3,047,335			3,062,511			3,039,907
Diluted		3,087,624			3,091,011			3,081,233			3,095,817
Book value per share at period end	$	17.55		$	16.71		$	17.55		$	16.71

______________

(1) Ratios for the three and nine month periods are annualized.

(2) Asset quality ratios are end of period ratios.

The MIL Network –

May 2, 2025

MIL-OSI: Sachem Capital Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

BRANFORD, Conn., May 01, 2025 (GLOBE NEWSWIRE) — Sachem Capital Corp. (NYSE American: SACH) (the “Company”), a real estate lender specializing in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property, today announced its financial results for the quarter ended March 31, 2025.

John Villano, CPA, Sachem Capital’s Chief Executive Officer commented, “The first quarter was one of stability for the Company as we put the challenges of the past year behind us. Our balance sheet showed almost no change from the prior quarter, as we remain focused on effectively managing our loan portfolio and protecting our capital. Our goal is to grow our balance sheet, capitalizing on quality opportunities to invest capital at attractive yields, while maintaining a prudent capital allocation approach. Overall, while uncertainty across the real estate and capital markets remain elevated, we are pleased with the stability of our portfolio and the liquidity on our balance sheet, and we are confident that cash flow and dividend growth will return as we leverage our industry relationships and focus on driving shareholder value.”

Results of operations for the quarter ended March 31, 2025

Total revenue was $11.4 million compared to $16.8 million in the first quarter of 2024. The change in revenue was primarily due to the cumulative effect of fewer originations over the last fifteen months, resulting in a reduction in the unpaid principal balance of loans held for investment, in addition to a currently elevated amount of nonperforming loans and real estate owned. On the other hand, income from our preferred membership limited liability company investments increased approximately 71.7%, compared to the three months ended March 31, 2024.

Total operating costs and expenses for the first quarter of 2025 were $10.4 million compared to $12.5 million in the same quarter last year. The change was primarily due to reductions in interest and amortization expense of $1.4 million, compensation and employee benefits, provision for credit losses related to loans, and other expenses totaling $0.8 million.

Net loss attributable to common shareholders for the first quarter of 2025 was $213,000, or $0.00 per share, compared to net income attributable to common shareholders of $3.6 million, or $0.08 per share for the first quarter of 2024.

Balance Sheet

Total assets as of March 31, 2025 were $491.4 million compared to $492.0 million as of December 31, 2024. Total liabilities as of March 31, 2025 were $312.1 million compared to $310.3 million as of December 31, 2024.

Total indebtedness at quarter-end was $305.6 million. This includes: $227.0 million of notes payable (net of $3.2 million of deferred financing costs) and $78.6 million aggregate outstanding principal amount of the amounts due under various credit facilities and the mortgage loan on the Company’s office building.

Total shareholders’ equity at March 31, 2025 was $179.3 million compared to $181.7 million at year-end 2024. Book value per common share at March 31, 2025 was $2.57 compared to $2.64 at year-end 2024. The $0.07 decrease in book value is primarily due to the aggregate $3.5 million in preferred and common dividends declared and paid during this first quarter 2025.

Dividends

The Company currently operates and qualifies as a Real Estate Investment Trust (REIT) for federal income taxes and intends to continue to qualify and operate as a REIT. Under federal income tax rules, a REIT is required to distribute a minimum of 90% of taxable income each year to its shareholders, and the Company intends to comply with this requirement for the current year.

On March 31, 2025, the Company paid a dividend of $0.484375 per share to the holders of its Series A Preferred Stock of record on March 15, 2025.

On March 31, 2025, the Company paid a dividend of $0.05 per share to its common shareholders of record on March 17, 2025.

Investor Conference Webcast and Call

The Company is hosting a webcast and conference call Thursday, May 1, 2025 at 8:00 a.m. Eastern Time, to discuss in greater detail its financial results for the quarter ended March 31, 2025. A webcast of the call may be accessed on the Company’s website at https://sachemcapitalcorp.com/investor-relations/events-and-presentations/default.aspx.

Interested parties can access the conference call via telephone by dialing toll free 1-877-704-4453 for U.S. callers or 1-201-389-0920 for international callers.

Replay

The webcast will also be archived on the Company’s website and a telephone replay of the call will be available through Thursday, May 15, 2025, and can be accessed by dialing 1-844-512-2921 for U.S. callers or 1-412-317-6671 for international callers and by entering replay passcode: 13752977.

About Sachem Capital Corp

Sachem Capital Corp. is a mortgage REIT that specializes in originating, underwriting, funding, servicing, and managing a portfolio of loans secured by first mortgages on real property. It offers short-term (i.e., three years or less) secured, nonbanking loans to real estate investors to fund their acquisition, renovation, development, rehabilitation, or improvement of properties. The Company’s primary underwriting criteria is a conservative loan to value ratio. The properties securing the loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and is personally guaranteed by the principal(s) of the borrower. The Company also makes opportunistic real estate purchases apart from its lending activities.

Forward Looking Statements

This press release may contain forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, strategy and plans, and our expectations for future operations, are forward-looking statements. Such forward-looking statements are subject to several risks, uncertainties and assumptions as described in the Annual Report on Form 10-K for 2024 filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 31, 2025. Because of these risks, uncertainties and assumptions, any forward-looking events and circumstances discussed in this press release may not occur. You should not rely upon forward-looking statements as predictions of future events. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company disclaims any duty to update any of these forward-looking statements. All forward-looking statements attributable to the Company are expressly qualified in their entirety by these cautionary statements as well as others made in this press release. You should evaluate all forward-looking statements made by the Company in the context of these risks and uncertainties.

Investor & Media Contact:
Email: investors@sachemcapitalcorp.com


SACHEM CAPITAL CORP. CONDENSED CONSOLIDATED BALANCE SHEETS *(in thousands, except share data)*


	March 31, 2025			December 31, 2024
	(unaudited)			(audited)
Assets
Cash and cash equivalents	$	24,414		$	18,066
Investment securities (at fair value)		1,392			1,517
Loans held for investment (net of deferred loan fees of $2,225 and $1,950)		365,635			375,041
Allowance for credit losses		(18,122	)		(18,470	)
Loans held for investment, net		347,513			356,571
Loans held for sale (net of valuation allowance of $4,876 and $4,880)		10,974			10,970
Interest and fees receivable (net of allowance of $2,981 and $3,133)		4,281			3,768
Due from borrowers (net of allowance of $1,956 and $1,135)		4,413			5,150
Real estate owned, net		18,865			18,574
Investments in limited liability companies		53,935			53,942
Investments in developmental real estate, net		16,432			14,032
Property and equipment, net		3,209			3,222
Other assets		5,967			6,164
Total assets	$	491,395		$	491,976

Liabilities and Shareholders’ Equity
Liabilities:
Notes payable (net of deferred financing costs of $3,232 and $3,713)	$	227,007		$	226,526
Repurchase agreements		41,519			33,708
Mortgage payable		981			1,002
Lines of credit		36,100			40,000
Accounts payable and accrued liabilities		2,705			4,377
Advances from borrowers		3,079			4,047
Below market lease intangible		665			665
Total liabilities		312,056			310,325

Commitments and Contingencies – Note 13

Shareholders’ equity:
Preferred shares – $0.001 par value; 5,000,000 shares authorized; 2,903,000 shares designated as Series A Preferred Stock; 2,306,748 shares of Series A Preferred Stock issued and outstanding at March 31, 2025 and December 31, 2024		2			2
Common Shares – $0.001 par value; 200,000,000 shares authorized; 47,310,139 and 46,965,306 issued and outstanding at March 31, 2025 and December 31, 2024, respectively		47			47
Additional paid-in capital		257,220			256,956
Cumulative net earnings		36,422			35,518
Cumulative dividends paid		(114,352	)		(110,872	)
Total shareholders’ equity		179,339			181,651
Total liabilities and shareholders’ equity	$	491,395		$	491,976


SACHEM CAPITAL CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS *(in thousands, except share and per share data)*


	Three Months Ended
	March 31,
	2025			2024
Revenues
Interest income from loans	$	7,887		$	12,641
Fee income from loans		1,425			2,616
Income from limited liability company investments		2,052			1,195
Other investment income		6			316
Other income		72			35
Total revenues		11,442			16,803

Operating expenses
Interest and amortization of deferred financing costs		6,094			7,469
Compensation and employee benefits		1,771			1,943
General and administrative expenses		1,355			1,239
Provision for credit losses related to loans held for investment		1,052			1,365
Change in valuation allowance related to loans held for sale		(4	)		—
Loss on sale of real estate owned and property and equipment, net		—			11
Other expenses		145			503
Total operating expenses		10,413			12,530
Operating income		1,029			4,273

Other (loss) income, net
(Loss) gain on equity securities		(125	)		397
Total other (loss) income, net		(125	)		397
Net income		904			4,670
Preferred stock dividend		(1,117	)		(1,022	)
Net (loss) income attributable to common shareholders	$	(213	)	$	3,648

Basic and diluted (loss) earnings per Common Share	$	(0.00	)	$	0.08
Basic and diluted weighted average Common Shares outstanding		46,784,744			47,128,511


SACHEM CAPITAL CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS *(in thousands)*


	Three Months Ended
	March 31,
	2025			2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	904		$	4,670
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs		545			624
Depreciation expense		92			94
Stock-based compensation		264			239
Provision for credit losses related to loans held for investment		1,052			1,365
Change in valuation allowance related to loans held for sale		(4	)		—
Loss on sale of real estate owned and property and equipment, net		—			11
Loss (gain) on equity securities		125			(397	)
Change in deferred loan fees		275			(291	)
Changes in operating assets and liabilities:
Interest and fees receivable, net		(361	)		392
Other assets		133			(63	)
Due from borrowers, net		(254	)		(1,038	)
Accounts payable and accrued liabilities		(1,612	)		433
Advances from borrowers		(968	)		(1,822	)
Total adjustments and operating changes		(713	)		(453	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		191			4,217

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities		—			(7,725	)
Proceeds from the sale of investment securities		—			7,128
Purchase of interests in limited liability companies		(4,223	)		(3,186	)
Proceeds from limited liability companies returns of capital		4,230			—
Proceeds from sale of real estate owned		89			121
Acquisitions of and improvements to real estate owned		—			(749	)
Purchase of property and equipment		(41	)		(14	)
Improvements in investment in developmental real estate		(742	)		—
Principal disbursements for loans		(41,308	)		(42,654	)
Principal collections on loans		47,742			51,398
NET CASH PROVIDED BY INVESTING ACTIVITIES		5,747			4,319

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from lines of credit		36,100			460
Repayments on lines of credit		(40,000	)		(600	)
Proceeds from repurchase agreements		11,693			—
Repayments of repurchase agreements		(3,882	)		—
Repayment of mortgage payable		(21	)		(20	)
Dividends paid on Common Shares		(2,363	)		(5,144	)
Dividends paid on Series A Preferred Stock		(1,117	)		(1,022	)
Proceeds from issuance of Common Shares, net of expenses		—			2,049
Proceeds from issuance of Series A Preferred Stock, net of expenses		—			1,556
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		410			(2,721	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		6,348			5,815

CASH AND CASH EQUIVALENTS – BEGINNING OF PERIOD		18,066			12,598

CASH AND CASH EQUIVALENTS – END OF PERIOD	$	24,414		$	18,413

The MIL Network –

May 1, 2025

MIL-OSI United Kingdom: House price report for the first quarter 202501 May 2025 The house price report for the first quarter 2025 has been published today by Statistics Jersey. The Jersey House Price Index measures the combined average price of 1- and 2-bedroom flats together with… Read more

Source: Channel Islands – Jersey

01 May 2025

The house price report for the first quarter 2025 has been published today by Statistics Jersey.

The Jersey House Price Index measures the combined average price of 1- and 2-bedroom flats together with 2-, 3- and 4-bedroom houses. The index includes properties transacted through the Royal Court as well as share transfer properties.

Context

Most sales related to phase three of the First Step Scheme were completed this quarter. These transactions are generally included in the House Price Index unless excluded for specific reasons. The scheme contributed to the quarter’s turnover, with 13 transactions in phase three.

Summary

In the first quarter of 2025:

on a rolling four-quarter basis, the mix-adjusted average price of dwellings sold in Jersey during the year ending Q1 2025 was 1% lower when compared with the previous quarter (year ending Q4 2024)

this was 14% lower than the peak in prices seen in Q3 2022

on a quarterly basis:

the seasonally adjusted mix-adjusted average price was 1% higher than in the previous quarter and 3% lower than in the corresponding quarter of 2024 (Q1 2024)
4-bedroom houses saw an increase in their mean price compared to the previous quarter, driven by a larger than usual number of sales of very high value properties (greater than £3,000,000)
all other property types saw a decrease in price compared with the previous quarter

the turnover of properties was 90% higher than in Q1 2024 and 7% higher than in the previous quarter (Q4 2024)

while turnover was significantly higher than a year earlier, it was still 29% below the average seen in Q1 from 2021 to 2023

overall housing market activity, on a rolling four-quarter basis, saw an increase of 7% compared with the previous quarter (Q4 2024) and 85% higher than in the corresponding quarter of 2024
on a rolling four-quarter basis, advertised private sector rental prices were essentially unchanged during the year ending Q1 2025 compared with the year ending Q4 2024

House Price Index First Quarter 2025

MIL OSI United Kingdom –

May 1, 2025

MIL-OSI: Financial results for Q1 2025

Source: GlobeNewswire (MIL-OSI)

Profit after tax of DKK 491 million and return on equity of 14.0%

With a profit after tax of DKK 491 million and a return on equity of 14.0%, Spar Nord is off to a good start to 2025. As expected, the result is affected by the falling level of interest rates, with a lower return on the Bank’s substantial excess liquidity contributing to a reduction in net interest income compared with last year. This is the principal reason why core income was DKK 136 million lower than in the same period of last year.

In terms of our banking business, we maintained a strong momentum from Q1 2024 to Q1 2025 with annual growth in lending and deposits of 10% and 6%, respectively, and a 4% increase in total business volume during the period. Looking exclusively at Q1 2025, lending was up by DKK 1.3 billion and deposits by DKK 0.7 billion.

The first quarter of 2025 was also characterised by further solid asset management activity, and activity in the housing market is once again trending higher. At the same time, impairment charges for the period were limited owing to persistently strong credit quality.

With respect to Nykredit’s takeover offer, two out of three conditions for the offer are currently met. The necessary approval from the Danish Competition and Consumer Authority remains outstanding and, most recently on 23 April 2025, this resulted in an extension of the offer period, which is now projected to expire on 20 May 2025. Nykredit still expects the offer to be completed during the first half of 2025, says Lasse Nyby, CEO.

Please direct any questions regarding this release to Lasse Nyby, Chief Executive Officer, on tel. +45 9634 4011, or Rune Brandt Børglum, Chief Financial Officer, on tel. + 45 9634 4236.

Yours faithfully

Rune Brandt Børglum
CFO

Attachment

No. 11 – Interim report Q1 2025

The MIL Network –

May 1, 2025

MIL-OSI New Zealand: Property Market – NZ property market bucks the trend of global uncertainty

Source: RealEstate.co.nz

New Zealand Property Report April 2025 – NZ property market bucks the trend of global uncertainty

Respite for Kiwis as property prices remain stable in latest data from realestate.co.nz
Stock up, buyer choice strong, but no sales boom
Is it a buyer’s market or a seller’s market?

Is there ever a right time to buy or sell property? Yes – and it’s now! The latest data from realestate.co.nz shows stock levels are high, and prices are stable, giving buyers and sellers the advantage of time.

Sarah Wood, CEO of realestate.co.nz, says that while global uncertainty persists, New Zealand’s property market remains remarkably steady, giving buyers and sellers a rare advantage in an otherwise uncertain environment:

“We’re in something of a holding pen at present. With global economic turmoil, US tariffs, and employment uncertainty, New Zealand is a bit stuck as we wait to see how these pressures play out.”

“But there’s a silver lining: today’s well-stocked and stable property market offers buyers and sellers time, choice, and flexibility. A fast market is stressful for buyers and sellers; a slower, stable market brings real positives. If you want to have certainty around your buying and selling price, now’s a great time to make your move.”

Respite for Kiwis as prices remain stable

While the financial markets are volatile, the national average asking price has held steady. In April 2025, the national average asking price dipped 1.7% year-on-year to $852,364 — still well within the narrow range of roughly $850,000 to $890,000 that has defined the past two years.

“It’s been more than two years since the national average asking price was above $900,000. Over that time, prices have fluctuated by less than 6.0% within a tight $50,000 band. We are in a period of rare stability,” says Wood.

Despite the stability, pockets of the country reported year-on-year average asking price growth during April. Most significant were Gisborne (up 17% to $724,168), Central North Island (up 12.6% to $779,099), Wairarapa (up 8.5% to $733,735), and Hawke’s Bay (up 8.1% to $778,039).

High stock levels give buyers more choice

National stock was up 6.2% year-on-year in April 2025, continuing a trend of elevated listings across the country.

“There’s plenty of stock available, but we’re not seeing a boom in sales activity to move it through yet,” says Wood.

Sales data from the Real Estate Institute of New Zealand (REINZ) shows steady movement but not at peak historical levels. Across the first quarter of 2025, residential sales increased month-on-month, from 3,774 in January, to 6,287 in February, and 7,640 in March.

Vendors cool their jets as the weather turns

The change in seasons and the arrival of shorter days saw new listings fall, down 29.2% from 12,029 in March to 8,518 in April. Wood says it’s typical to see a seasonal dip in new listings at this time of year but notes that new listings were also lower compared to April 2024.

“New listings were down 11.6% compared to last year, but there is still strong interest across the market. We’re seeing the highest level of enquiries from buyers in three years. That’s a positive sign.”

Some of the biggest year-on-year lifts in stock were seen in Gisborne (up 75.0% — though actual listing numbers remain small, rising from just 82 to 144 properties), Central Otago / Lakes District (up 28.2%), West Coast (up 28.0%), Otago (up 22.4%), Central North Island (up 19.6%), Canterbury (up 14.5%), Marlborough (up 11.0%), Wellington (up 10.8%), and Coromandel (up 10.3%).

So, is it a buyer’s or a seller’s market?

In today’s slower but stable market, both buyers and sellers have real opportunities.

For buyers, the current climate offers time to act carefully rather than under pressure. Wood encourages buyers to take full advantage of this breathing room.

“My advice? Visit 50 properties before you buy. You need to know the market, know what’s selling, and know what buyers are paying — and right now, you have the time to do exactly that,” she says.

“This market also allows buyers to negotiate terms, like longer settlement periods, and complete thorough due diligence before making decisions.”

Wood adds that buyers today have access to more data than ever before: “Our insights page gives real-time suburb trends and recent sales information, which simply wasn’t available five years ago.”

Sellers, too, can benefit from stability. Well-priced properties are still moving, and many vendors will soon become buyers themselves.

“If you accept a slightly lower sale price than your original expectations, you’re also better positioned to negotiate sharply when you purchase your next property. It’s a two-sided opportunity,” says Wood.

About realestate.co.nz

We’ve been helping people buy, sell, or rent property since 1996. Established before Google, realestate.co.nz is New Zealand’s longest-standing property website and the official website of the real estate industry.

Dedicated only to property, our mission is to empower people with a property search tool they can use to find the life they want to live. With residential, lifestyle, rural and commercial property listings, realestate.co.nz is the place to start for those looking to buy or sell property.

Whatever life you’re searching for, it all starts here.

Want more property insights?

Market insights: Search by suburb to see median sale prices, popular property types and trends over time.
Sold properties: Switch your search to sold to see the last 12 months of sales and prices.
Valuations: Get a gauge on property prices by browsing sold residential properties, with the latest sale prices and an estimated value in the current market.

Glossary of terms:

Average asking price (AAP) is neither a valuation nor the sale price. It is an indication of current market sentiment. Statistically, asking prices tend to correlate closely with the sales prices recorded in future months when those properties are sold. As it looks at different data, average asking prices may differ from recorded sales data released simultaneously.

New listings are a record of all the new residential dwellings listed for sale on realestate.co.nz for the relevant calendar month. The site reflects 97% of all properties listed through licensed real estate agents and major developers in New Zealand. This description gives a representative view of the New Zealand property market.

Stock is the total number of residential dwellings that are for sale on realestate.co.nz on the penultimate day of the month.

Rate of sale is a measure of how long it would take, theoretically, to sell the current stock at current average rates of sale if no new properties were to be listed for sale. It provides a measure of the rate of turnover in the market.

Seasonal adjustment is a method realestate.co.nz uses to represent better the core underlying trend of the property market in New Zealand. This is done using methodology from the New Zealand Institute of Economic Research.

Truncated mean is the method realestate.co.nz uses to supply statistically relevant asking prices. The top and bottom 10% of listings in each area are removed before the average is calculated to prevent exceptional listings from providing false impressions.

MIL OSI New Zealand News –

May 1, 2025

MIL-OSI New Zealand: Property Market – Momentum gradually builds in market upturn – CoreLogic

Source: CoreLogic

Property values in Aotearoa New Zealand rose by +0.3% in April, continuing the string of modest gains since the start of the year.

April’s rise on the Cotality hedonic Home Value Index (HVI) took values to $819,096, the highest since June last year ($822,175), but still down by about -16% from the January 2022 peak of $974,045.

Around the main centres, April was a stronger month for most, with Kirikiriroa Hamilton up by +0.8%, Ōtautahi Christchurch by +0.5%, and Tāmaki Makaurau Auckland rising +0.3%. Ōtepoti Dunedin, Te Whanganui-a-Tara Wellington, and Tauranga each saw a mild lift of +0.1% in April.

The hedonic methodology also allows for an analysis by property type, which shows the turning point is now evident for more segments too. Flats (townhouses) have risen by +0.9% nationally since January, standalone houses by +1.0%, and lifestyle properties by a more minor +0.2%.

Cotality NZ (formerly CoreLogic NZ) Chief Property Economist Kelvin Davidson said that the fourth consecutive rise in property values confirms the upturn is unfolding as expected, though a degree of caution remains warranted.

“Clearly, lower mortgage rates have been a strong support for property values in recent months, giving more buyers the confidence and ability to enter the market. Perhaps in a slightly perverse way, the recent global uncertainty about tariffs and trade protectionism could also see interest rates fall further.”

“That said, a fresh boom in property values seems unlikely. For a start, the stock of listings on the market remains high, giving buyers plenty of power when it comes to price negotiations.”

“Meanwhile, as interest rates for internal serviceability tests at the banks fall to less than 7%, the caps on debt-to-income ratios (DTIs) for mortgage lending are reportedly becoming a bigger consideration for more borrowers.”

“It’s also worth keeping in mind we had a ‘mini upturn’ in values over the second half of 2023 and first few months of 2024 which then partially reversed out again. This latest emerging phase of growth seems to have stronger fundamentals than the previous one, but even so, a subdued economic backdrop still looms as a restraint.”

National and Main Centres

Month

Quarter

Annual

From peak

Median value

Aotearoa New Zealand

0.3%

0.9%

-2.0%

-15.9%

$819,096

Tāmaki Makaurau Auckland

0.3%

0.9%

-3.1%

-20.7%

$1,081,729

Kirikiriroa Hamilton

0.8%

2.1%

1.1%

-10.0%

$756,686

Tauranga

0.1%

-0.4%

-1.8%

-16.4%

$904,602

Te-Whanganui-a-Tara Wellington

0.1%

0.7%

-5.8%

-23.5%

$811,829

Ōtautahi Christchurch

0.5%

2.1%

1.9%

-4.4%

$678,745

Ōtepoti Dunedin

0.1%

-0.1%

-0.3%

-10.1%

$604,664

Tāmaki Makaurau Auckland

Month

Quarter

Annual

From peak

Median value

Rodney

0.3%

-0.6%

-5.2%

-21.1%

$1,226,785

North Shore

0.4%

1.0%

-0.5%

-16.5%

$1,313,091

Waitakere

0.3%

0.7%

-2.3%

-22.8%

$938,747

Auckland City

0.3%

1.2%

-4.2%

-21.0%

$1,162,488

Manukau

0.0%

1.2%

-3.0%

-21.9%

$1,020,445

Papakura

-0.1%

0.2%

-3.3%

-22.0%

$843,503

Franklin

0.3%

1.1%

-1.3%

-20.5%

$926,141

April was generally a month of increases for the various sub-markets across Tāmaki Makaurau, although there were some exceptions. Consistent increases of +0.3% to +0.4% were seen in North Shore, Rodney, Waitakere, Auckland City, and Franklin. Manukau was flat and Papakura edged down by -0.1%.

Clearer signs of growth are also evident across a broader three-month horizon, with North Shore, Franklin, Manukau, and Auckland City all up by at least +1.0% since January. Rodney is lagging a little, however, down by -0.6%.

Mr Davidson said, “In any part of the cycle there are different areas that either underperform or outperform, and with buyers still holding the bulk of negotiating power, it’s not all one-way traffic for property values in Auckland. However, the impact of lower mortgage rates does seem to be spreading across the super-city.”

Te Whanganui-a-Tara Wellington

Month

Quarter

Annual

From peak

Median value

Kāpiti Coast

1.4%

1.7%

-2.5%

-18.5%

$833,629

Porirua

0.0%

0.2%

-3.8%

-22.3%

$785,714

Upper Hutt

0.1%

-0.5%

-5.6%

-23.6%

$703,101

Lower Hutt

0.4%

1.1%

-5.5%

-24.3%

$696,764

Wellington City

0.0%

0.9%

-6.4%

-23.4%

$910,452

Across the wider Te Whanganui-a-Tara Wellington area, Kapiti Coast stood out with a +1.4% rise in values in April, while Lower Hutt also recorded a reasonable gain of +0.4%. However, Upper Hutt only edged up by +0.1%, and Porirua and Wellington City itself were stable.

Kapiti Coast has also shown relative strength over a broader three-month period (+1.7% since January), with Lower Hutt also up by 1.1% in the quarter. Porirua and Upper Hutt have been a little more subdued since January.

“The large falls in property values around the Wellington area in recent years seem to have come to an end, and significantly improved affordability may be piquing the interest of more buyers. But as with many other parts of the country, available listings remain high, so buyers aren’t in a rush to compete or bid up prices sharply,” said Mr Davidson.

Regional results

The emerging upturn in property values can be seen across many of the key provincial markets. Whangarei, Rotorua, and Napier each rose by at least +0.5% in April, with Whanganui and Invercargill both at +0.4%. But Nelson dropped by -0.5%, Hastings was down by -0.6%, and Queenstown -1.0%.

“In the current environment where listings are higher than normal in many parts of the country and some sectors of the economy are yet to rebound, a bit of variability across the provinces is to be expected. But lower interest rates are a significant support, so the outlook for a modest recovery in values this year is likely to be replicated across regional markets too,” added Mr Davidson.

Other Main Urban Areas

Month

Quarter

Annual

From peak

Median value

Ahuriri Napier

0.5%

2.1%

-0.3%

-17.0%

$714,079

Te Papaioea Palmerston North

0.1%

-0.5%

-2.7%

-18.5%

$606,647

Heretaunga Hastings

-0.6%

-0.5%

-2.3%

-18.6%

$725,007

Whangārei

0.7%

1.7%

-0.9%

-16.8%

$748,308

Whanganui

0.4%

1.0%

0.8%

-11.9%

$494,838

Rotorua

0.5%

1.0%

2.1%

-10.9%

$627,344

Tūranganui-a-Kiwa Gisborne

-0.2%

1.3%

-4.7%

-17.3%

$583,194

Whakatū Nelson

-0.5%

-1.1%

1.1%

-11.9%

$736,003

Ngāmotu New Plymouth

0.1%

0.6%

0.9%

–

$711,699

Waihōpai Invercargill

0.4%

1.2%

2.4%

-0.9%

$473,967

Tāhuna Queenstown

-1.0%

-1.5%

1.3%

-5.2%

$1,658,111

Property market outlook

Looking ahead, Mr Davidson noted that property values nationally remain on track for a rise of around 5% in 2025, a figure broadly consistent with the recent pace of growth (i.e. just short of 1% in the three months since January).

“That rate of increase looks relatively modest by past standards and given that we’re still about 16% below the record highs from early 2022. Some people may well be disappointed with such an outlook.”

“But it’s always worth noting there are two sides to the housing market coin, and any aspiring first home buyers, or investors, who are progressing towards saving a deposit will no doubt be pleased with a flatter patch for values.”

“Of course, there’s now quite a range of lending hurdles which also need to be negotiated, and it’s going to be fascinating to see how the impact of DTIs plays out over the next year or two”, he concluded.

For more property news and insights, visit www.corelogic.co.nz/news-research.

Notes:

The Cotality Hedonic Home Value Index (HVI) is calculated using a hedonic regression methodology that addresses the issue of compositional bias associated with median price and other measures. In simple terms, the index is calculated using recent sales data combined with information about the attributes of individual properties such as the number of bedrooms and bathrooms, land area and geographical context of the dwelling.

By separating each property into its various formational and locational attributes, observed sales values for each property can be distinguished between those attributed to the property’s attributes and those resulting from changes in the underlying residential property market.

Additionally, by understanding the value associated with each attribute of a given property, this methodology can be used to estimate the value of dwellings with known characteristics for which there is no recent sales price by observing the characteristics and sales prices of other dwellings which have recently transacted. It then follows that changes in the market value of the entire residential property stock can be accurately tracked through time.

The detailed ‘frequently asked questions’ and methodological information can be found at:https://www.corelogic.co.nz/our-data/hedonic-index

MIL OSI New Zealand News –

May 1, 2025

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: 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 USA: Casten, 22 House Democrats Highlight Economic Turmoil Caused by Trump’s Immigration Policies

Source: United States House of Representatives – Representative Sean Casten (IL-06)

April 30, 2025

Washington, D.C. — U.S. Representative Sean Casten (IL-06) led 22 House Democrats in a letter to President Donald Trump highlighting how his immigration policies have increased the cost of living for Americans. The letter demands that the president reverse course or risk further economic turmoil.

“As President, you are tasked with improving the economy and growing the middle class,” the lawmakers wrote. “However, you have exacerbated Americans’ economic distress during your first 100 days in office.”

Unpredictable enforcement of immigration laws has threatened immigrants with legal status, including TPS recipients, who rely on the United States for safe harbor and work, and pursue higher education at high rates. The Trump Administration has refused to focus on reducing food and housing costs, instead choosing to displace workers in essential sectors such as construction, maintenance, material moving, and transportation, causing economic hardship and instability throughout the country.

Although the United States has long been a beacon for the world’s best and brightest, President Trump’s immigration policies have destabilized legal immigration and pushed those seeking to innovate, conduct research, and grow our economy away from the United States.

“We support protecting our borders and vetting individuals who wish to come to our country,” the lawmakers continued. “However, your immigration proposals are impractical and will increase costs for millions of Americans.”

In addition to Rep. Casten, the letter was signed by Reps. Beatty, Carbajal, Cisneros, Clarke, Connolly, Correa, Costa, Escobar, Espaillat, Fields, Sylvia Garcia, Goldman, Jonathan Jackson, McCollum, McGovern, Meeks, Norton, Quigley, Titus, Tonko, and Vargas.

A copy of the letter can be found here. Text of the letter can be found below.

Dear President Trump,

We write to you with concern about the negative humanitarian and economic impacts your immigration-related executive orders and policies will have nationwide.

Your immigration policies will increase costs for Americans, disrupt the job market, and slow economic growth. As President, you are tasked with improving the economy and growing the middle class. However, you have exacerbated Americans’ economic distress during your first 100 days in office.

Since your inauguration, the U.S. stock market is off to its worst start in a century. The Dow Jones Industrial Average is down by more than seven percent, the S&P 500 index is off by more than eight percent, the Nasdaq composite is down more than eleven percent and small-cap Russell 2000 have slumped by more than fourteen percent.

During your campaign, you repeatedly promised to lower food prices “immediately” if elected president. Yet, the latest monthly consumer price index showed that the average cost of a dozen eggs reached a record high of $6.23 in March. These prices will only increase due to your recent immigration policies.

Thus far, you have issued Executive Orders prioritizing strict enforcement of immigration laws, both at the borders and within the United States. For example, on your first day in office, you signed the Executive Order “Securing Our Borders,” which deploys the military within our own country and ends the CBP One process, which allows migrants to enter the country and be appropriately screened for internationally protected refugee status.

Additionally, you are recklessly attempting to terminate Temporary Protected Status (TPS) for as many as seven hundred thousand vulnerable individuals legally in the United States. This not only raises significant civil rights concerns but also risks serious economic consequences. Judge Edward Chen, who is presiding over a case brought on behalf of Venezuelan TPS recipients facing deportation, has noted that a reversal of TPS status would likely have an “adverse impact” on the economy, given that Venezuelan TPS holders pay taxes, hold jobs and pursue higher education at higher rates than the general public.

You also issued the Executive Order “Protecting the American People Against Invasion,” which directs a strict enforcement-first version of immigration policy, enlisting all departments to prioritize it above their own work, aiding the Department of Homeland Security in enforcing deportation and criminalization of immigrants. Your focus on deportation, rather than appropriate adjudication with regard to each immigrant’s unique circumstances, counters established international norms and damages our economy.

Data consistently shows that immigrants are primarily of working age, between 18 and 64 years of age, accounting for nearly 19% of the U.S. labor force in 2023, despite representing only 14% of the total U.S. population that year. According to the Federal Reserve’s 2025 Monetary Policy Report, job growth has consistently outpaced the growth of the labor force over the last few years. Last year, Federal Reserve Chair Jerome Powell confirmed that immigration is a “big part of the story of the labor market coming back into better balance.” It is reasonable to conclude that removing working-age individuals from the economy will harm every business that seeks to build and grow in America.

We support protecting our borders and vetting individuals who wish to come to our country. However, your immigration proposals are impractical and will increase costs for millions of Americans. For example, the Bureau of Labor Statistics data shows that foreign-born workers are often employed in critical sectors such as construction, maintenance, material moving, and transportation. These sectors significantly influence housing costs. As housing inflation is expected to keep core inflation high, this effect will undoubtedly extend beyond the already overheated housing market, impacting the prices of other essential goods and services on which Americans rely.

According to a December 2024 Report from the Joint Economic Committee, it is projected that an aggressive deportation plan, similar to that outlined through the Executive Order “Protecting the American People Against Invasion,” would reduce the real Gross Domestic Product of the United States by 7.4% and increase prices for American consumers by 9.1% by 2028. These are significant costs to the American people.

Your immigration policies will also severely undermine the American workforce and significantly affect vital sectors such as agriculture, hospitality, and construction. Your proposals could displace 1.5 million construction workers, 250,000 laborers from the agricultural industry, 1 million workers in hospitality, over 800,000 in manufacturing, and more than 400,000 in transportation and warehousing. This would harm essential American industries that drive our economy.

America’s success has always depended on being the destination of choice for the best and brightest from around the world. As you are aware, there is bipartisan support for strong border security to keep the “bad guys” out. However, it is important to recognize that the overwhelming majority of people coming to America today are not different from our own ancestors; they are coming here to build a better life for themselves, to work, worship and love without fear, and to pursue their entrepreneurial ideas in a country where the rule of law allows them to benefit from their efforts. There are many humanitarian reasons to protect our immigrant communities, but there are also self-interested reasons. A country that attracts talent is a country that out-competes the rest of the world and retains wealth that would otherwise develop elsewhere.

In that spirit, we urge you to reverse your current immigration policies that are financially harming small business owners and the middle class while providing no actual solutions to fix our broken immigration system. We are ready to work with you to enact comprehensive immigration reform legislation that includes support for border patrol and enforcement, increases work visas to facilitate the flow of skilled labor, includes a pathway to citizenship for Dreamers, TPS holders and farm workers, grows our economy and maintains the promise of America as a place that has always been great – but who’s greatest days are still yet to come.

Sincerely,

###

MIL OSI USA News –

May 1, 2025

MIL-OSI Global: How rising wages for construction workers are shifting the foundations of the housing market

Source: The Conversation – USA – By Bahaa Chammout, Kummer I&E PhD Fellow in Civil Engineering, Missouri University of Science and Technology

Construction costs have surged in recent years, pushing homeownership further out of reach for many Americans. But this isn’t a new concern: In 1978, the U.S. Government Accountability Office warned that rising costs were threatening the American dream – at a time when the median home price was just US$44,300, less than three times the median household income. Today, that figure has climbed past $419,000, more than five times what the median American makes.

One often-overlooked factor behind this surge? Labor costs.

We are engineering experts, and in our latest study, we analyzed wages and workforce trends across more than 20 occupations in construction from 1999 to 2023. Interestingly, we found that unskilled workers — those in the lowest-paid roles – saw the largest wage gains. And the effects of these gains have rippled across the entire construction industry.

A changing construction landscape

A lot can change in 25 years, which is the last time researchers analyzed construction labor trends at this scale. Back then, construction wages were declining, driven in part by the rise of affordable trade schools and in part by falling union membership.

Today, the landscape looks very different. The construction industry is grappling with a persistent labor shortage, facing an annual shortfall of more than a half-million workers. At the same time, wage dynamics have shifted greatly.

The biggest gains go to the lowest-paid roles

Construction projects rely on a wide range of roles – from highly skilled professionals like engineers and electricians to lower-skilled or unskilled workers. Unskilled workers handle physically demanding tasks like trench digging, concrete mixing and site preparation, and earn lower wages. As a result, contractors often hire more of them.

While contractors tend to focus on expensive skilled labor when estimating project costs, our recent study found that unskilled workers have seen the largest wage gains in recent decades. Their wages rose by 2.75% to 3.5% per year — compared with under 2.5% for most skilled roles.

The size of the construction workforce is also changing, with 88% of U.S. construction firms reporting difficulty finding workers. The shortage is especially severe among unskilled labor. For example, half as many people work as unskilled helpers now than in 1999.

Given these trends, to avoid budgeting shortfalls and project risks, we encourage contractors to plan for higher costs for low-skilled workers. Our study also offers a simple method to help forecast wage trends, which contractors can use to estimate future labor costs.

Wage hikes have a ripple effect

Interestingly, not only did unskilled occupations see the biggest wage jumps, but they also influenced wage changes in other trades.

Using econometric models, we analyzed these occupations as part of an interconnected system. We found that trades typically involved early in a project tend to influence wages for trades that come later. In particular, unskilled construction laborers – who handle tasks like site preparation and material handling – emerged as the leading drivers of wage trends across the industry. When their wages rise, others’ tend to follow.

These insights suggest that contractors should monitor early-stage wage trends closely. When wages start rising among early-trade or unskilled workers, that is often a signal that broader labor costs are about to rise too. Planning ahead can help firms manage costs more effectively.

Recent world events — such as COVID-19, the Russia-Ukraine war and the 2018 steel and aluminum tariffs — brought major challenges to the construction industry, which is still dealing with their aftermath. On top of that, worsening labor shortages, new tariffs and global supply chain disruptions mean the industry will continue to face significant challenges.

However, tracking market data offers a valuable opportunity to understand emerging trends and develop strategies to respond effectively. Our research team – working closely with major U.S. contractors through the Missouri Consortium for Construction Innovation – is exploring solutions across a range of issues, including construction material costs, cross-border material trade with Canada and Mexico, and persistent labor shortages, among other critical topics.

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

– ref. How rising wages for construction workers are shifting the foundations of the housing market – https://theconversation.com/how-rising-wages-for-construction-workers-are-shifting-the-foundations-of-the-housing-market-255087

MIL OSI – Global Reports –

May 1, 2025

MIL-OSI: EfTEN Real Estate Fund AS unaudited results for 1st quarter 2025

Source: GlobeNewswire (MIL-OSI)

In the first quarter of 2025, EfTEN Real Estate Fund AS invested a significant part of the capital raised in the previous quarter, primarily in the elderly care home segment. In February, the Fund’s 100% subsidiary EfTEN Hiiu OÜ signed a binding agreement to acquire the property at Hiiu 42 in Tallinn, with the aim to developing a general care home in cooperation with Südamekodud AS. The acquisition price of the property was €4 million, with up to an additional €2.5 million for the reconstruction of the building. The expected return on the investment is 8% per annum. At the end of March, the real rights contract was concluded and the transaction finalized. As part of the transaction, EfTEN Hiiu OÜ signed a long-term (10+10 years) lease agreement with Hiiu Südamekodu OÜ. Part of the property continues to be used by the North Estonia Medical Centre Foundation. The building will be partially reconstructed into the “Nõmme Südamekodu” general care home, with future capacity for up to 170 clients.

In January 2025, the Fund’s subsidiary EfTEN Ermi OÜ commenced construction of the second phase of Tartu Südamekodu, which will add 60 beds and a solar park to the existing care home. The total project cost is approximately €1.3 million, with construction expected to be completed by July 2025. The expected return on this investment is 8.1% per annum.

Upon completion of these projects, EfTEN Real Estate Fund AS will own four elderly care homes with a combined capacity of nearly 800 beds.

On 31 March 2025, the Fund’s subsidiary EfTEN Seljaku OÜ terminated the lease agreement with AS Hortes (in bankruptcy) concerning the Laagri Hortes properties. A new lease agreement has been signed with Rikets Aianduskeskus OÜ, which will commence operations on the premises as of 1 April 2025.

In April 2025, the ICONFIT logistics building owned by the fund’s subsidiary EfTEN Paemurru OÜ was completed. The fund began earning rental income from the property starting from April 15.

Financial Overview

The consolidated sales revenue of EfTEN Real Estate Fund AS for Q1 2025 amounted to €7.858 million (Q1 2024: €7.961 million), and the consolidated net rental income (NOI) totaled €7.211 million (Q1 2024: €7.343 million). The net rental income margin remained stable at 92% (2024: 92%), indicating that costs directly related to property management (including land tax, insurance, maintenance and improvement expenses) and marketing accounted for 8% (2024: 8%) of revenue.

The Fund’s consolidated net profit for Q1 2025 was €4.167 million (Q1 2024: €3.808 million). A key contributor to the profit growth was the decrease in interest expenses due to the decline in EURIBOR—interest costs fell by €432 thousand, or 19%, compared to Q1 2024.

Real Estate Portfolio

As of 31 March 2025, the Group held 37 (31 December 2024: 36) investment properties with a total fair value of €380.160 million (31 December 2024: €373.815 million) and an acquisition cost of €376.906 million (31 December 2024: €370.561 million). In addition to properties held by subsidiaries, the Group owns a 50% stake in the joint venture operating the Palace Hotel in Tallinn, with a fair value of €8.632 million as of 31 March 2025 (31 December 2024: €8.630 million).

In Q1 2025, the Group made new and follow-on investments totalling €6.345 million.

In March 2025, EfTEN Hiiu OÜ acquired the property at Hiiu 42, Tallinn, for €4 million. The North Estonia Medical Centre Foundation continues to use part of the property under an existing lease. A long-term (10+10 years) lease was signed with Hiiu Südamekodu OÜ, a subsidiary of Südamekodud AS, which will develop the premises into the “Nõmme Südamekodu” general care home with capacity for up to 170 clients.

Construction of the C-building at Valkla Care Home continued in Q1 2025, with a total investment of €343 thousand. Construction of the second phase of Ermi Care Home in Tartu began, with works totalling €192 thousand during the quarter. In addition, construction at the Paemurru Logistics Centre progressed, with Q1 investment totalling €1.515 million.

In Q1 2025, the Group earned €7.673 million in rental income, remaining on par with the previous year.

As of 31 March 2025, the vacancy rate of the Group’s real estate portfolio was 4.4% (31 December 2024: 2.6%). The highest vacancy was in the office segment at 17.7%, where filling vacant spaces has taken longer than previously.

Financing

In Q1 2025, the Fund’s subsidiary EfTEN Riga Airport SIA extended its loan agreement with the bank. Over the next 12 months, six of the Group’s subsidiaries have loan agreements maturing, with a total outstanding balance of €20.38 million as of 31 March 2025. These maturing loans have LTVs between 29% and 48%. Given the stable rental cash flows of the properties, the Group’s management does not foresee obstacles in refinancing these loans.

As of 31 March 2025, the Group’s weighted average interest rate on loans was 4.37% (31 December 2024: 4.89%) and the loan-to-value (LTV) ratio stood at 40% (31 December 2024: 40%). All loan agreements of the subsidiaries are based on floating interest rates. The Fund’s interest coverage ratio (ICR) was 3.4 as of 31 March 2025 (31 March 2024: 2.9).

Share Information

As of 31 March 2025, the registered share capital of EfTEN Real Estate Fund AS was €114.403 million (unchanged from 31 December 2024), consisting of 11,440,340 shares with a nominal value of €10 each.

The net asset value (NAV) per share as of 31 March 2025 was €20.74 (31 December 2024: €20.37), representing an increase of 1.8% over the first three months of 2025.

CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME

	I quarter
	2025	2024
€ thousands
Sales revenue	7,858	7,961
Cost of services sold	-506	-418
Gross profit	7,352	7,543

Marketing costs	-141	-200
General and administrative expenses	-1,006	-939
Other operating income and expense	-37	42
Operating profit	6,168	6,446

Profit/-loss from joint ventures	-58	-50
Interest income	83	101
Other finance income and expense	-1,803	-2,235
Profit before income tax	4,390	4,262

Income tax expense	-223	-454
Net profit of the financial year	4,167	3,808
Total comprehensive income for the period	4,167	3,808
Earnings per share
– basic	0.36	0.35
– diluted	0.36	0.35

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

	31.03.2025	31.12.2024
€ thousands
ASSETS
Cash and cash equivalents	19,038	18,415
Short-term deposits	0	2,092
Receivables and accrued income	1,645	2,055
Prepaid expenses	128	138
Total current assets	20,811	22,700

Long-term receivables	140	154
Shares in joint ventures	1,902	1,960
Investment property	380,160	373,815
Property, plant and equipment	121	134
Total non-current assets	382,323	376,063
TOTAL ASSETS	403,134	398,763

LIABILITIES AND EQUITY
Borrowings	25,858	30,300
Liabilities and prepayments	3,056	3,245
Total current liabilities	28,914	33,545

Borrowings	123,813	119,120
Other long-term liabilities	1,923	1,928
Deferred income tax liability	11,244	11,097
Total non-current liabilities	136,980	132,145
TOTAL LIABILITIES	165,894	165,690

Share capital	114,403	114,403
Share premium	90,306	90,306
Statutory reserve capital	2,799	2,799
Retained earnings	29,732	25,565
TOTAL EQUITY	237,240	233,073
TOTAL LIABILITIES AND EQUITY	403,134	398,763

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

Attachment

EREF_3kuud_vahearuanne_2025_eng

The MIL Network –

April 30, 2025

MIL-OSI: GBank Financial Holdings Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

LAS VEGAS, April 29, 2025 (GLOBE NEWSWIRE) — GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company of GBank (the “Bank”), today reported net income for the quarter ended March 31, 2025 of $4.5 million, or $0.31 per diluted share, compared to $5.2 million, or $0.37 per diluted share during the fourth quarter of 2024, and $3.7 million, or $0.29 per diluted share, for the first quarter of 2024.

First Quarter 2025 Financial Highlights (Unaudited)

Net income of $4.5 million and diluted earnings per share of $0.31

Net revenue⁽¹⁾of $17.4 million, an increase of 31.4% compared to the first quarter of 2024

SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024

Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024

Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024

Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date

Net interest margin of 4.47%

Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024

Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024

Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

Edward M. Nigro, Executive Chairman, stated, “While quarterly net revenues⁽¹⁾ increased 31% over the first quarter of 2024, our first quarter noninterest income, driven by the increased monetization of Gaming FinTech operations, increased 51% year-over-year with noninterest revenue exceeding $5 million. And in just these last two weeks, GBFH received SEC approval of its S-1 filing and was approved to commence trading on NASDAQ – we have been busy.”

Registration Statement on Form S-1

On April 16, 2025, the Company announced that the U.S. Securities and Exchange Commission declared effective the Company’s Registration Statement on Form S-1 (the “Form S-1”) related to registration and resale of 1,081,081 shares of common stock, currently held by existing stockholders and issued in the Company’s Private Placement Offering (the “Offering”) which closed on October 11, 2024.

The Company is not currently offering or selling new shares of common stock, and there will be no change to the issued and outstanding number of shares of common stock of the Company in connection with the Form S-1. Copies of the prospectus included in the Registration Statement may be obtained from the Company by request or by visiting
https://www.sec.gov/Archives/edgar/data/1791145/000147793225002363/gbfh_s1.htm.

Financial Results

Income Statement

Net interest income totaled $11.9 million for the first quarter of 2025, reflecting an increase of $105 thousand, or 0.9%, compared to $11.8 million for the fourth quarter of 2024, and an increase of $1.1 million, or 10.1%, compared to the first quarter of 2024.

The increase in net interest income from the fourth quarter was driven by a favorable reduction in the cost of deposits, partially offset by lower interest income on loans. The favorable decrease in the cost of deposits of $305 thousand was the result of (i) the redemption of $20 million of certain higher-cost callable brokered deposits during the quarter having a weighted-average interest rate of 4.95%, (ii) rate decreases on interest-bearing deposits resulting from the 50 basis point decrease in the federal funds rate enacted during the fourth quarter 2024 by the Federal Open Market Committee (“FOMC”), and (iii) the non-recurring effect of accelerated recognition of certain premiums on brokered certificates of deposits during the fourth quarter of 2024 totaling $170 thousand. The favorable decrease in the cost of deposits was partially offset by a decrease in interest income on loans of $395 thousand primarily due to the full-quarter impact of the previously mentioned 50 basis point decrease in the federal funds rate on the Bank’s variable rate loan portfolio. Interest income for the first quarter of 2025 reflects the net effect of the reversal of $100 thousand of interest accruals, deferred fees, and deferred costs attributable to $2.8 million of commercial loans placed on nonaccrual status during the first quarter of 2025. Comparatively, the fourth quarter of 2024 reflects the net effect of the reversal of $342 thousand of interest accruals, deferred fees, and deferred costs attributable to $12.4 million of commercial loans placed on nonaccrual status.

The increase in net interest income when compared to the first quarter of 2024 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits.

Investment securities yield was 4.94% for the first quarter of 2025, compared to 4.74% for the fourth quarter of 2024 and 4.16% for the first quarter of 2024. The increase in investment securities yield when compared to the previous linked quarter and to the same quarter of 2024 was driven by the purchase of $72.9 million of investment securities over the previous twelve months to replace certain lower-yielding U.S. Treasury securities that matured during 2024.

The Company’s net interest margin for the first quarter of 2025 decreased to 4.47%, compared to 4.53% for the fourth quarter of 2024 and 4.85% for the first quarter of 2024. The decrease in net interest margin when compared to the fourth and first quarters of 2024 is reflective of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in during the fourth quarter of 2024 by the FOMC on variable rate loans, investment securities, and interest bearing cash balances and interest income reversals relating to loans placed on nonaccrual status during the quarter.

The Company recorded a provision for credit losses on loans of $710 thousand for the first quarter of 2025, a decrease of $627 thousand compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. The provision for credit losses on loans recorded in the first quarter of 2025 reflects quarterly growth in non-guaranteed loans of $24.4 million.

Non-interest income was $5.5 million for the first quarter of 2025, compared to $5.8 million for the fourth quarter of 2024, and $2.4 million for the first quarter of 2024. The $301 thousand decrease in non-interest income when compared to the fourth quarter of 2024 was driven by a $1.5 million decrease in income from gain on sale of loans due to a decrease in average pretax gain on sale margin and lower sales volume quarter-over-quarter. The decrease in gain on sale of loans was partially offset by an increase in credit card net interchange fees of $1.1 million quarter-over-quarter due to increased credit card transaction volume. The $3.1 million increase in non-interest income when compared to the first quarter of 2024 was driven by (i) an increase in credit card net interchange fees of $2.0 million, (ii) a $643 thousand increase in loan servicing income as the first quarter of 2024 reflected the write-off of certain loan servicing assets totaling $401 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $454 thousand increase in income from gain on sale of loans.

Net revenue⁽¹⁾ totaled $17.4 million for the first quarter of 2025, representing a decrease of $196 thousand, or 1.1%, compared to $17.6 million for the fourth quarter of 2024. Net revenue⁽¹⁾ for the first quarter of 2025 increased $4.2 million, or 31.4%, when compared to $13.2 million for the first quarter of 2024.

Non-interest expense was $10.9 million during the first quarter of 2025, compared to $9.7 million for the fourth quarter of 2024 and $8.4 million for the first quarter of 2024. The Company’s efficiency ratio was 62.8%, compared to 55.4% for the fourth quarter of 2024 and 63.4% for the first quarter of 2024. The increase in non-interest expense from the fourth quarter of 2024 is primarily due to an increase of $587 thousand in employee compensation costs attributable to higher commission expenses related to loan production. The increase in non-interest expense also reflects extraordinary legal, professional, and audit fees incurred to date totaling $1.1 million associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A, approximately $786 thousand of these expenses were incurred during the first quarter of 2025. Additionally, data processing expenses increased $201 thousand when compared to the fourth quarter of 2024 related mainly to higher credit card volume. The increase in non-interest expense from the first quarter of 2024 was driven by a $1.1 million increase in employee compensation costs due to increased staffing levels, as well as a $1.5 million increase in other expenses due to the previously mentioned legal, professional, and audit fees associated with the registration statement filing and increases in data processing, supplies, and other non-interest expenses to support the growth of the organization.

Income tax expense was $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024, and $1.1 million for the first quarter of 2024. The Company’s effective tax rate was 21.4% for the quarter ended March 31, 2025 compared to 19.1% for the quarter ended December 31, 2024 and 23.1% for the quarter ended March 31, 2024. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.

Net income was $4.5 million for the first quarter of 2025, a decrease of $774 thousand from $5.2 million for the fourth quarter of 2024, and an increase of $769 thousand from $3.7 million for the first quarter of 2024. Diluted earnings per share totaled $0.31 for the first quarter of 2025, compared to $0.37 for the fourth quarter of 2024 and $0.29 for the first quarter of 2024. Earnings per share and other share-based metrics have been impacted by the shares issued in the previously mentioned Offering.

The Company had 175 full-time equivalent employees as of March 31, 2025, compared to 169 full-time equivalent employees as of December 31, 2024, and 150 full-time equivalent employees as of March 31, 2024.

Balance Sheet

Total loans, net of deferred fees and costs were $843.4 million as of March 31, 2025, compared to $816.0 million as of December 31, 2024, and $733.6 million as of March 31, 2024. Loans, net of deferred fees and costs increased $27.4 million during the first quarter of 2025 as increases in commercial real estate loans more than offset decreases in commercial and industrial and residential loans. The increase in loans, net of deferred fees and costs of $109.8 million from March 31, 2024 was primarily driven by increases of $97.7 million in commercial real estate loans. Total guaranteed loans as a percentage of loans⁽¹⁾ were 24.2% as of March 31, 2025, compared to 24.7% as of December 31, 2024, and 29.8% as of March 31, 2024.

The Company’s allowance for credit losses totaled $9.0 million as of March 31, 2025, compared to $9.1 million as of December 31, 2024 and $7.1 million as of March 31, 2024. The allowance for credit losses as a percentage of total loans was 1.07% as of March 31, 2025, compared to 1.12% as of December 31, 2024, and 0.97% as of March 31, 2024. The allowance for loan losses as a percentage of total loans, excluding guaranteed portions⁽¹⁾, was 1.41% as of March 31, 2025, compared to 1.48% as of December 31, 2024, and 1.38% as of March 31, 2024.

Deposits totaled $995.9 million as of March 31, 2025, an increase of $60.9 million from $935.1 million as of December 31, 2024, and an increase of $189.0 million from $806.9 million as of March 31, 2024. By deposit type, the increase from the prior quarter was driven by an increase of $40.7 million in certificates of deposit and a $23.3 million increase in savings and money market accounts. From March 31, 2024, certificates of deposit increased by $83.9 million, and savings and money market accounts increased by $80.5 million. Noninterest-bearing deposits totaled $242.7 million as of March 31, 2025, an increase of $3.0 million from $239.7 million as of December 31, 2024, and an increase of $26.3 million from $216.3 million as of March 31, 2024.

The Company’s ratio of loans to deposits was 84.7% as of March 31, 2025, compared to 87.3% as of December 31, 2024, and 90.9% as of March 31, 2024.

The Company held no short-term borrowings as of March 31, 2025 or December 31, 2024, compared to short term borrowings of $10.0 million as of March 31, 2024. As of March 31, 2025, the Company had approximately $488.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.

Subordinated notes totaled $26.1 million as of March 31, 2025 and December 31, 2024, compared to $26.0 million as of March 31, 2024.

Stockholders’ equity was $146.6 million as of March 31, 2025, compared to $140.7 million as of December 31, 2024, and $102.6 million as of March 31, 2024. The increase in stockholders’ equity from December 31, 2024 is attributable to increases in retained earnings resulting from net income earned during the quarter. The increase in stockholders’ equity since March 31, 2024 was driven by the previously mentioned Offering, net income earned during the previous twelve months, as well as an increase in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.

The Company’s common equity to tangible assets ratio was 12.3% as of March 31, 2025, compared to 12.5% as of December 31, 2024, and 10.6% as of March 31, 2024. The Bank’s Tier 1 leverage ratio was 14.2% as of March 31, 2025, compared to 12.9% as of December 31, 2024, and 13.0% as of March 31, 2024. The increase in the Bank’s Tier 1 leverage ratio was the result of the downstream of $15.0 million in additional capital from the holding company to the Bank during the first quarter of 2025. The Company’s book value per share was $10.27 as of March 31, 2025, an increase of 4.1% from $9.87 as of December 31, 2024, and an increase of 28.4% from $8.00 as of March 31, 2024. The increase in tangible book value per share from December 31, 2024 is attributable to net income and increases in additional paid in capital resulting from certain stock-based compensation activity during the quarter. The increase since March 31, 2024 is attributable to net income, the Offering, and the increases in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.

Total assets increased 6.0% to $1.190 billion as of March 31, 2025, from $1.122 billion as of December 31, 2024, and increased 23.5% from $963.4 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in loans and interest-bearing deposits with banks. The increase in total assets from March 31, 2024 was primarily driven by increases in loans, interest bearing deposits with banks, and investment securities.

Asset Quality

The provision for credit losses on loans totaled $710 thousand for the first quarter of 2025, compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. Net loan charge-offs in the first quarter of 2025 totaled $828 thousand, or 0.39% of average net loans (annualized), compared to net loan charge-offs of $157 thousand, or 0.07% of average net loans (annualized) in the fourth quarter of 2024 and no net loan charge-offs or recoveries during the first quarter of 2024.

Nonaccrual loans increased $5.1 million during the quarter to $19.2 million as of March 31, 2025, and increased $13.1 million from $6.1 million as of March 31, 2024. Loans past due 90 days and accruing interest totaled $1.2 million as of March 31, 2025, compared to $40 thousand as of December 31, 2024, and $33 thousand as of March 31, 2024. The balance of loans past due 90 days and accruing of $1.2 million at March 31, 2025 was comprised of one commercial real estate loan totaling $1.1 million and certain credit card balances totaling $49 thousand.

The Company held no other real estate owned as of March 31, 2025 or 2024, or December 31, 2024.

Total non-performing assets totaled $20.4 million as of March 31, 2025, an increase of $6.2 million from $14.2 million as of December 31, 2024, and an increase of $14.2 million from $6.1 million as of March 31, 2024. Non-performing assets, excluding guaranteed portions, totaled $5.7 million as of March 31, 2025, an increase of $839 thousand from $4.8 million as of December 31, 2024 and an increase of $4.1 million from $1.6 million as of March 31, 2024.

Loans past due between 30 and 89 days and accruing interest totaled $14.9 million as of March 31, 2025, an increase of $3.0 million from $11.8 million as of December 31, 2024, and an increase of $11.4 million from $3.4 million as of March 31, 2024. The guaranteed portion of loans past due between 30 and 89 days and accruing interest totaled $11.9 million as of March 31, 2025.

The ratio of total non-performing assets to total assets was 1.71% as of March 31, 2025, compared to 1.26% as of December 31, 2024, and 0.64% as of March 31, 2024. The ratio of non-performing assets, excluding guaranteed portions, to total assets⁽¹⁾ was 0.48% as of March 31, 2025, compared to 0.43% as of December 31, 2024, and 0.16% as of March 31, 2024.

Other Financial Highlights

SBA Lending and Commercial Banking

SBA Lending and Commercial Banking loan originations totaled $133.0 million for the first quarter of 2025, compared to $120.0 million for the fourth quarter of 2024 and $136.6 million for the first quarter of 2024. Loan sale volume decreased to $68.7 million during the first quarter of 2025, compared to $98.5 million for the fourth quarter of 2024, and increased slightly from $68.6 million during the first quarter of 2024. Gain on sale of loans decreased 36.5% to $2.5 million, compared to $4.0 million for the fourth quarter of 2024, and increased 21.8% from $2.1 million for the first quarter of 2024. The average pretax gain on sale of loans margin was 3.69% for the first quarter of 2025, compared to 4.06% for the fourth quarter of 2024 and 3.04% for the first quarter of 2024.

Gaming FinTech

GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS is currently onboarding three new programs. BCS is working with two gaming operators as a part of the latest Product Express partnership with MasterCard and i2c announced during the third quarter of 2024. One client is a cash access service provider in the casino industry and the other is a social gaming operator. Both are working to onboard their prepaid issuing program through this partnership. These programs are expected to be active early in the second quarter of 2025. BCS has executed an additional card issuing agreement with a client offering prepaid access services for cashless venues nationwide. This program went live in the first quarter of 2025. Additionally, the BoltBetz slot machine application is now expected to be fully live in the second quarter of 2025.

BCS and GBank now have seventeen active payment and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for three new clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $37.1 million for the first quarter of 2025, compared to $30.5 million for the fourth quarter of 2024.

The Bank launched its GBank Visa Signature® Card in the second quarter of 2023 for prime and super-prime consumers, offering one percent cash rewards on gaming transactions and two percent cash rewards on all other purchases.

Credit card charge transactions were $105.6 million for the first quarter of 2025, compared to $51.7 million for the fourth quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $2.3 million as of March 31, 2025, compared to $1.6 million as of December 31, 2024 and $542 thousand as of March 31, 2024. Through March 31, 2025, and since launch, the Bank has processed over $172 million in gaming transactions through its credit card product.

GBank continues to develop and improve its operational credit card systems, including the internal implementation of application landing pages and internal customer service resources. These efforts are a continuation of the Company’s ongoing strategy to ultimately manage all systems directly as opposed to relying on outsourced third parties. Direct control over these critical resources has become more important as we focus are executing on new marketing agreements, create significant additional social media presence, and require related product systems with the ability to perform on a mass scale. Implementation and testing of these initiatives is currently underway with completion anticipated during the third quarter of 2025, which is expected to cause slowing growth in credit card transactions and growth over the short-term.

Non-Voting Equity Investment in BankCard Services, LLC

On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.

Earnings Call

The Company will host its first quarter 2025 earnings call on Wednesday, April 30, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.

Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:

ZOOM Conference ID 826 3030 7240
Passcode: 549549

Joining by ZOOM Conference (audio only):

Log in on your computer at
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Joining by Telephone

Dial (408) 638-0968. The conference ID is 826 3030 7240. Passcode: 549549.

Click here to learn more about GBank Financial Holdings Inc.

Notice Regarding Disclosures and Forward-Looking Statements

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

GBank Financial Holdings Inc.
9115 West Russell Road, Suite 110
Las Vegas, Nevada 89148
https://www.gbankfinancialholdings.com/

FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

Quarter Highlights:
Net Income	Earnings per diluted share	Net revenue⁽¹⁾	Net interest margin	On-balance sheet guaranteed loans	Book value per common share
$4.5 million	$0.31	$17.4 million	4.47%	$245.6 million	$10.27

CEO COMMENTARY:

“Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO

LINKED QUARTER BASIS

QTD YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:
Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand	Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million	Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand	Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
Net revenue⁽¹⁾ of $17.4 million, a decrease of 1.1%, or $196 thousand	Net revenue⁽¹⁾ of $17.4 million, an increase of 31.4%, or $4.2 million
Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million	Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million

FINANCIAL POSITION RESULTS:
On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million	On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million	Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million	Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million

LOANS AND ASSET QUALITY:
Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%	Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64% Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%	ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%

KEY PERFORMANCE METRICS:
Net interest margin decreased to 4.47%, compared to 4.53%	Net interest margin decreased to 4.47%, compared to 4.85%
Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million	Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively	Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
Book value per share of $10.27, an increase of 4.1% from $9.87	Book value per share of $10.27, an increase of 28.4% from $8.00

GBank Financial Holdings Inc.
Condensed Consolidated Balance Sheets
(Unaudited)

																Linked Quarter					Quarter YOY
																3/31/25 vs. 12/31/24					3/31/25 vs. 3/31/24
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024			$ Var			% Var		$ Var			% Var
Assets
Cash and Due From Banks	$	6,701		$	9,262		$	5,798		$	5,409		$	8,334		$	(2,561	)	-27.6	%	$	(1,633	)	-19.6	%
Interest-Bearing Deposits With Other Financial Institutions		140,270			114,860			65,160			82,749			45,844			25,410		22.1	%		94,426		206.0	%
Total Cash and Cash Equivalents		146,971			124,122			70,958			88,158			54,178			22,849		18.4	%		92,793		171.3	%

Investment Securities:
Available For Sale, at Fair Value		71,468			65,609			39,381			2,330			2,588			5,859		8.9	%		68,880		2661.5	%
Held to Maturity, at Amortized Cost		39,903			40,569			46,043			56,520			86,999			(666	)	-1.6	%		(47,096	)	-54.1	%

Loans Held For Sale		41,313			32,649			68,317			40,489			44,901			8,664		26.5	%		(3,588	)	-8.0	%
Loans, Net of Deferred Fees and Costs:
Commercial and Industrial		56,885			64,000			53,490			50,498			46,863			(7,115	)	-11.1	%		10,022		21.4	%
Commercial Real Estate – Non-owner Occupied		672,379			630,551			607,864			583,463			546,408			41,828		6.6	%		125,971		23.1	%
Commercial Real Estate – Owner Occupied		81,768			88,802			86,785			106,595			110,065			(7,034	)	-7.9	%		(28,297	)	-25.7	%
Construction and Land Development		3,201			2,934			2,161			529			386			267		9.1	%		2,815		729.3	%
Multifamily		19,011			17,374			17,398			17,420			17,037			1,637		9.4	%		1,974		11.6	%
Residential		7,619			10,584			12,025			13,443			12,281			(2,965	)	-28.0	%		(4,662	)	-38.0	%
Consumer		2,502			1,713			1,276			909			549			789		46.1	%		1,953		355.7	%
Total Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589			27,407		3.4	%		109,776		15.0	%
Less: Allowance for Credit Losses		(8,997	)		(9,114	)		(7,934	)		(7,342	)		(7,088	)		117		-1.3	%		(1,909	)	26.9	%
Total Net Loans		834,368			806,844			773,065			765,515			726,501			27,524		3.4	%		107,867		14.8	%

Loan Servicing Asset		9,231			8,976			8,046			7,698			7,124			255		2.8	%		2,107		29.6	%
Restricted Investment in Bank Stock		4,652			4,652			4,652			4,652			3,222			–		0.0	%		1,430		44.4	%
All Other Assets		42,106			38,943			37,540			43,992			37,937			3,163		8.1	%		4,169		11.0	%
Total Assets	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%
Liabilities
Non-Interest Bearing Demand	$	242,650		$	239,672		$	229,875		$	220,438		$	216,307		$	2,978		1.2	%	$	26,343		12.2	%
Interest Bearing Demand		62,035			68,132			65,623			65,120			63,740			(6,097	)	-8.9	%		(1,705	)	-2.7	%
Savings and Money Market		280,056			256,724			244,091			222,115			199,549			23,332		9.1	%		80,507		40.3	%
Certificates of Deposit		411,201			370,552			343,931			332,695			327,326			40,649		11.0	%		83,875		25.6	%
Total Deposits		995,942			935,080			883,520			840,368			806,922			60,862		6.5	%		189,020		23.4	%

Short-Term Borrowings		–			–			–			12,000			10,000			–		0.0	%		(10,000	)	-100.0	%
Subordinated Debt		26,107			26,088			26,070			26,051			26,032			19		0.1	%		75		0.3	%
Operating Lease Liability		6,299			4,839			5,032			5,221			5,409			1,460		30.2	%		890		16.5	%
Other Liabilities		15,048			15,657			16,997			14,769			12,521			(609	)	-3.9	%		2,527		20.2	%
Total Liabilities		1,043,396			981,664			931,619			898,409			860,884			61,732		6.3	%		182,512		21.2	%

Equity
Common Stock		1			1			1			1			1			–		0.0	%		–		0.0	%
Additional Paid-in Capital		78,718			77,571			57,287			56,966			53,322			1,147		1.5	%		25,396		47.6	%
Retained Earnings		68,906			64,437			59,192			54,177			49,501			4,469		6.9	%		19,405		39.2	%
Accumulated Other Comprehensive Loss		(1,009	)		(1,309	)		(97	)		(199	)		(258	)		300		-22.9	%		(751	)	291.1	%
Total Stockholders’ Equity		146,616			140,700			116,383			110,945			102,566			5,916		4.2	%		44,050		42.9	%
Total Liabilities & Stockholders’ Equity	$	1,190,012		$	1,122,364		$	1,048,002		$	1,009,354		$	963,450		$	67,648		6.0	%	$	226,562		23.5	%

Book Value Per Common Share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00		$	0.40		4.1	%	$	2.27		28.4	%

GBank Financial Holdings Inc.
Condensed Consolidated Income Statements
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Interest Income
Loans	$	16,836		$	17,231		$	17,347		$	16,360		$	15,330
Deposits With Other Financial Institutions		1,192			1,099			1,367			1,165			972
Investment Securities		1,281			1,177			924			868			1,014
Other Interest Bearing Balances		100			103			102			96			74
Total Interest Income		19,409			19,610			19,740			18,489			17,390

Interest Expense
Deposits		7,230			7,535			7,194			6,848			6,198
Short-term Borrowings and Subordinated Debt		285			286			287			293			390
Total Interest Expense		7,515			7,821			7,481			7,141			6,588

Net Interest Income		11,894			11,789			12,259			11,348			10,802
Provision for Credit Losses – Loans		(710	)		(1,337	)		(570	)		(283	)		–
Provision for Credit Losses – Unfunded Commitments		(11	)		(13	)		(8	)		(12	)		(20	)
Net Interest Income after Provision for Credit Losses		11,173			10,439			11,681			11,053			10,782

Other Income
Gain on Sales of Loans		2,537			3,998			2,838			3,163			2,083
Loan Servicing Income		703			597			566			534			60
Service Charges and Fees		56			54			48			41			41
Net Interchange Fees		2,003			947			284			146			20
Other Income		164			168			166			282			201
Total Other Income		5,463			5,764			3,902			4,166			2,405

Noninterest Expenses
Salaries and Employee Benefits		6,400			5,813			5,495			5,752			5,290
Occupancy Expenses		392			398			404			417			447
Other Expenses		4,115			3,509			3,156			2,963			2,637
Total Noninterest Expenses		10,907			9,720			9,055			9,132			8,374

Income Before Provision For Income Taxes		5,729			6,483			6,528			6,087			4,813
Provision For Income Taxes		(1,224	)		(1,239	)		(1,513	)		(1,411	)		(1,112	)
Net Income Before Equity Investment Loss		4,505			5,244			5,015			4,676			3,701
Net Loss Attributable to Equity Investment		(35	)		–			–			–			–
Net Income	$	4,470		$	5,244		$	5,015		$	4,676		$	3,701

Earnings Per Share	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29
Earnings Per Share (Diluted)	$	0.31		$	0.37		$	0.38		$	0.36		$	0.29

GBank Financial Holdings Inc.
Average Balances, Rates, and Interest Income and Expense
(Unaudited)

				For the Three Months Ended
				March 31, 2025						December 31, 2024						March 31, 2024
(Dollars in thousands)				Average				Yield/		Average				Yield/		Average				Yield/
				Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾		Balance		Interest		Rate⁽²⁾
ASSETS:
	Interest Bearing Deposits			$	102,628	$	1,192	4.71	%	$	85,424	$	1,099	5.12	%	$	66,100	$	972	5.91	%
	Investment Securities:
		Taxable			105,222		1,281	4.94	%		98,712		1,177	4.74	%		98,084		1,014	4.16	%
	Loans and Loans Held For Sale				866,690		16,836	7.88	%		846,583		17,231	8.10	%		727,786		15,330	8.47	%
	Restricted Investment in Bank Stock				4,652		100	8.72	%		4,652		103	8.81	%		3,222		74	9.24	%
		Total Earning Assets			1,079,192		19,409	7.29	%		1,035,371		19,610	7.53	%		895,192		17,390	7.81	%

	Cash and Due From Banks				6,216						5,938						5,935
	Other Assets				39,177						38,753						33,602
			Total Assets	$	1,124,585					$	1,080,062					$	934,729

LIABILITIES & SHAREHOLDERS’ EQUITY
	Deposits:
		Interest-bearing Demand		$	65,693	$	355	2.19	%	$	64,453	$	385	2.38	%	$	65,303	$	393	2.42	%
		Money Market and Savings			264,085		2,411	3.70	%		255,068		2,496	3.89	%		186,372		1,759	3.80	%
		Certificates of Deposit			385,704		4,464	4.69	%		359,285		4,654	5.15	%		309,221		4,046	5.26	%
			Total Interest-Bearing Deposits		715,482		7,230	4.10	%		678,806		7,535	4.42	%		560,896		6,198	4.44	%

	Short-Term Borrowings				–		–	0.00	%		2		–	0.00	%		7,583		104	5.52	%
	Subordinated Debt				26,095		285	4.43	%		26,076		286	4.36	%		26,021		286	4.42	%
			Total Interest-Bearing Liabilities		741,577		7,515	4.11	%		704,884		7,821	4.41	%		594,500		6,588	4.46	%

	Noninterest-bearing Deposits				218,874						214,880						220,767
	Other Liabilities				20,139						22,403						18,003
	Shareholders’ Equity				143,995						137,895						101,459
			Total Liabilities & Shareholders’ Equity	$	1,124,585					$	1,080,062					$	934,729

	Net Interest Income					$	11,894					$	11,789					$	10,802

	Total Yield on Earning Assets							7.29	%					7.53	%					7.81	%
	Cost on Interest-Bearing Liabilities							4.11	%					4.41	%					4.46	%
	Average Interest Spread							3.18	%					3.12	%					3.35	%
	Net Interest Margin							4.47	%					4.53	%					4.85	%
	Net Interest Margin (Bank Only)							4.58	%					4.64	%					4.98	%

GBank Financial Holdings Inc.
Additional Financial Information
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Key Performance Metrics
Return on Average Assets-Net Income ⁽²⁾		1.61	%		1.93	%		1.96	%		1.90	%		1.59	%
Return on Average Stockholders’ Equity⁽²⁾		12.59	%		15.13	%		17.29	%		17.59	%		14.67	%
Efficiency Ratio		62.84	%		55.38	%		56.03	%		58.86	%		63.41	%
Net Interest Margin⁽²⁾		4.47	%		4.53	%		5.00	%		4.82	%		4.85	%
Net Revenue⁽¹⁾	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207
Common Equity / Assets		12.3	%		12.5	%		11.1	%		11.0	%		10.6	%
Tier 1 Leverage Ratio – Bank		14.23	%		12.90	%		13.08	%		12.88	%		13.03	%

Selected Loan Metrics
Guaranteed Portion of Loans Held for Sale	$	41,313		$	32,649		$	68,317		$	40,489		$	44,901
Guaranteed Portion of Loans Held for Investment		204,239			201,267			203,027			215,382			218,619
Total Guaranteed Loans		245,552			233,916			271,344			255,871			263,520
Guaranteed Loans as a Percent of Loans⁽¹⁾		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Asset Quality
Total nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Loans past due 90 days and still accruing		1,153			40			27			1,142			33
Other real estate owned		–			–			–			–			–
Total non-performing assets		20,373			14,168			5,408			7,612			6,129
Non-performing assets: guaranteed portion		14,687			9,321			3,838			5,396			4,572
Non-performing assets: non-guaranteed portion		5,686			4,847			1,570			2,216			1,557

Non-performing assets to total assets		1.71	%		1.26	%		0.52	%		0.75	%		0.64	%
Non-performing assets, excluding guaranteed, to total assets⁽¹⁾		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%
Net charge-offs (recoveries)	$	828		$	157		$	(22	)	$	29		$	–

Loans past due 30-89 days and accruing	$	14,853		$	11,822		$	12,390		$	1,054		$	3,428
Loans past due 30-89 days and accruing: guaranteed portion	$	11,915		$	8,713		$	8,535		$	–		$	1,028
Loans past due 30-89 days and accruing: non-guaranteed portion	$	2,938		$	3,109		$	3,855		$	1,054		$	2,400

Allowance for Credit Losses (ACL)	$	8,997		$	9,114		$	7,934		$	7,342		$	7,088
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
ACL to nonaccrual loans		47	%		65	%		147	%		113	%		116	%
ACL to nonaccrual loans, excluding guaranteed⁽¹⁾		168	%		190	%		514	%		130	%		465	%
ACL to loans		1.07	%		1.12	%		1.02	%		0.95	%		0.97	%
ACL to loans, excluding guaranteed⁽¹⁾		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

Book Value
Stockholders’ Equity	$	146,616		$	140,700		$	116,383		$	110,945		$	102,566
Common shares outstanding		14,271			14,252			13,067			13,061			12,824
Book value per common share	$	10.27		$	9.87		$	8.91		$	8.49		$	8.00
Employees – FTE		175			169			159			155			150

GBank Financial Holdings Inc.
Reconciliation of Non-GAAP Financial Measures
(Unaudited)

	Three Months Ended
($’s in 000, except per share data)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Net Revenue⁽³⁾
Net Interest Income	$	11,894		$	11,789		$	12,259		$	11,348		$	10,802
Non-Interest Income		5,463			5,764			3,902			4,166			2,405
Net Revenue	$	17,357		$	17,553		$	16,161		$	15,514		$	13,207

Guaranteed Loans as a Percent of Loans⁽⁴⁾
SBA and USDA Guaranteed Loans	$	204,239		$	201,267		$	203,027		$	215,382		$	218,619
Loans, Net of Deferred Fees and Costs		843,365			815,958			780,999			772,857			733,589
Guaranteed Loans as a % of Loans		24.2	%		24.7	%		26.0	%		27.9	%		29.8	%

Non-performing assets, excluding guaranteed, to total assets⁽⁴⁾
Non-performing assets	$	20,373		$	14,168		$	5,408		$	7,612		$	6,129
Less: SBA and USDA guaranteed portions of non-performing assets		14,687			9,321			3,838			5,396			4,572
Non-performing assets, excluding guaranteed portions		5,686			4,847			1,570			2,216			1,557
Total assets		1,190,012			1,122,364			1,048,002			1,009,354			963,450
Non-performing assets, excluding guaranteed, to total assets		0.48	%		0.43	%		0.15	%		0.22	%		0.16	%

Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed⁽⁴⁾
Nonaccrual loans	$	19,220		$	14,128		$	5,381		$	6,470		$	6,096
Less: SBA and USDA guaranteed portions of nonaccrual loans		13,859			9,321			3,838			833			4,572
Nonaccrual loans, excluding guaranteed portions		5,361			4,807			1,543			5,637			1,524
ACL to nonaccrual loans, excluding guaranteed		168	%		190	%		514	%		130	%		465	%

ACL to loans, excluding guaranteed⁽⁴⁾
Loans, net of deferred fees and costs	$	843,365		$	815,958		$	780,999		$	772,857		$	733,589
Less: SBA and USDA guaranteed portions of loans		204,239			201,267			203,027			215,382			218,619
Loans, excluding guaranteed		639,126			614,691			577,972			557,475			514,970
ACL to loans, excluding guaranteed		1.41	%		1.48	%		1.37	%		1.32	%		1.38	%

	⁽¹⁾	See Reconciliation of Non-GAAP Financial Measures
	⁽²⁾	Ratios are annualized on an actual/actual basis
	⁽³⁾	We believe this non-GAAP measurement presents trends in income generation of the Company.
	⁽⁴⁾	We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.

The MIL Network –

April 30, 2025

MIL-OSI USA: Warren Warns Walgreens Buyout by Private Equity May Lead to Pharmacy Closures, Lost Jobs in Massachusetts, Limit Access to Medication

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
April 29, 2025
Warren seeks assurances from Sycamore Partners that its heavily-leveraged, debt-fueled acquisition of Walgreens will not lead to layoffs, store closures
After private equity looted Steward Health Care hospitals, Warren concerned that Walgreens could be next: “These private equity buyouts of companies facing financial hardship…frequently lead to worse outcomes for employees and consumers.”
Text of Letter (PDF)
Washington D.C. – U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, wrote to private equity firm Sycamore Partners (Sycamore) regarding concerns that the firm’s proposed acquisition of retail pharmacy chain Walgreens may cost hardworking Massachusetts residents their jobs and create difficulties for patients who need access to lifesaving medications.
Sycamore’s multi-billion-dollar takeover of Walgreens has been touted as an attempt to keep the struggling retail pharmacy chain alive. However, private equity buyouts have a record of running already-struggling companies into the ground and producing devastating consequences for workers and communities, as witnessed by private equity’s looting of Steward Health Care, which resulted in two shuttered hospitals in Massachusetts.
“My primary concern is that Sycamore’s acquisition of Walgreens may lead to restructuring of the company that results in layoffs and pharmacy closures in the Commonwealth,” said Senator Warren.
Walgreens has already announced plans to close nine locations across Massachusetts, in addition to the six stores closed in the state within the past year. Many of the shuttered Walgreens stores are located in vulnerable communities, leaving thousands of residents without reliable pharmacy access.
Sycamore has a troubling history of leading the companies it acquires into bankruptcy, further harming already-struggling communities.
“These private equity buyouts…frequently lead to worse outcomes for employees and consumers: private equity firms sell off assets and close locations, employees lose their jobs, and consumers lose access to essential goods and services,” wrote Senator Warren.
A review by the Private Equity Stakeholder Project (PESP) revealed that the Walgreens buyout will be heavily leveraged with debt, heightening the risk of bankruptcy and threatening the availability of critical services to customers and patients.
“These are deeply troubling conclusions, suggesting that yet another private equity firm might leverage a failing health care chain to turn a profit at the expense of Massachusetts’ patients, providers, and taxpayers,” wrote Senator Warren.
Millions of customers across the United States rely on Walgreens for primary care, essential medications, and household items, and if the Walgreens-Sycamore deal leads to even more store closures, customers could be left in “pharmacy deserts” without access to necessities.
“I seek assurances that Sycamore’s buyout of Walgreens will not damage the company further, and will not cost hardworking Americans their jobs or create difficulties for patients who need access to lifesaving medications,” concluded Senator Warren.
Senator Warren requested a response identifying the impact Sycamore’s acquisition of Walgreens will have on workers and communities by May 13, 2025.
Senator Warren has repeatedly called out the harms of private equity ownership on health care costs and quality of care and has fought to prevent companies from taking advantage of the bankruptcy system:
In February 2025, Senator Warren questioned private equity executive Stephen Feinberg, President of Cerberus Capital Management and nominee for Deputy Secretary of Defense, on his actions to enrich himself and his investors at the expense of Steward Health Care patients and workers.
In October 2024, Senator Warren led colleagues in reintroducing the Stop Wall Street Looting Act, comprehensive legislation to fundamentally reform the private equity industry and level the playing field by forcing private investment firms to take responsibility for the outcomes of companies they take over, empowering workers and protecting investors. This reintroduction comes after private equity firm Cerberus looted Steward Health Care, leaving hospitals, patients, and workers hanging out to dry.
In September 2024, Senators Warren and Markey (D-Mass.), alongside Representatives Auchincloss and Lynch, sent a letter to RHG raising concerns over its proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
In September 2024, Senator Warren urged the IRS to crack down on Real Estate Investment Trusts (REITs) squeezing the health care industry.
In August 2024, Senators Warren and Markey requested information from private equity firm Apollo Global Management (Apollo) on the company’s role in Steward’s bankruptcy, and urged Apollo to work in good faith to facilitate the sale of Steward’s Massachusetts hospitals.
In July 2024, Senators Warren and Markey wrote to Medical Properties Trust and Macquarie Infrastructure Partners, owners of Steward’s eight Massachusetts hospitals, urging them to offer lease concessions to keep the hospitals open and viable.
In June 2024, Senator Warren, Representative Chu, and Representative Nadler urged CMS to increase oversight of artificial intelligence (AI) and algorithmic software tools used to guide coverage decisions in Medicare Advantage (MA) plans, citing the NaviHealth scandal as cause for concern.
In June 2024, Senators Warren and Markey introduced the Corporate Crimes Against Health Care Act of 2024 to root out corporate greed and private equity abuse in the health care system, specifically preventing what happened with Steward from happening again.
In June 2024, Senator Warren wrote to the DOJ, FTC, and HHS calling out high health care costs due to vertically-integrated insurers, private equity companies, and pharmaceutical companies that are driving health care consolidation.
In June 2024, Senators Warren, Brown (D-Ohio), and Markey wrote to the Director of the U.S. Trustee Program (USTP), calling for USTP to move to appoint a Chapter 11 trustee to run the company in place of Steward’s current management, and to monitor the hospitals’ bankruptcy proceedings to protect patients and local communities.
In May 2024, Senator Warren sent a letter to the U.S. Department of Health and Human Services and the U.S. Centers for Medicare & Medicaid Services, urging them to support communities and health care providers affected by the crisis caused by Steward’s financial mismanagement.
In April 2024, Senators Warren and Senator Markey (D-Mass.) sent a letter to six private credit funds that are holders of Steward’s debt, asking them a series of questions about their loans and calling on them to offer loan modifications that could potentially help keep the hospitals afloat.
In April 2024, Senators Warren and Markey called out Medical Properties Trust and Macquarie Infrastructure Partners for exploiting Steward Hospitals, and urged them to help keep the hospitals open.
In April 2024, Senators Warren, Markey, and the rest of the MA delegation urged the FTC and DOJ to closely scrutinize UnitedHealth Group’s proposed acquisition of Steward Health Care’s physician group, Stewardship Health.
In April 2024, Senator Warren delivered remarks at a Senate hearing in Boston titled, “When Health Care Becomes Wealth Care: How Corporate Greed Puts Patient Care and Health Workers at Risk,” which centered on Steward Health Care’s Massachusetts hospitals.
In April 2024, Senators Warren and Ed Markey (D-Mass.) called out private equity firm Cerberus Capital Management (Cerberus) for its role in creating Steward Health Care’s financial challenges, following Cerberus’s reply to the Massachusetts congressional delegation’s February 2024 probe.
In February 2024, Senator Warren slammed UnitedHealth Group for leveraging NaviHealth’s unregulated artificial intelligence algorithm to unlawfully deny health care to seniors with severe injuries.
In March 2024, Senator Warren released a statement about Steward’s plan to sell its physician group Stewardship Health to UnitedHealth Group’s subsidiary Optum.
In March 2024, Senators Warren and Markey sent a letter to Steward CEO and Chairman Dr. Ralph de la Torre, calling on him to testify at a congressional hearing in Boston.
In March 2024, Senators Warren and Markey sent a letter to Dr. de la Torre, blasting him for years of financial mismanagement, private equity schemes, and executive profiteering that have led to Steward Health Care’s financial crisis.
In February 2024, Senators Warren and Markey, along with all nine members of the Massachusetts congressional delegation, sent a letter to Cerberus seeking answers from the private equity firm for its role in creating the current financial challenges at Steward hospitals.
In January 2024, Senator Warren released a statement about Steward’s financial situation and allegations of patient neglect at Steward facilities.
In January 2024, Senator Warren led the Massachusetts congressional delegation in a letter to the CEO of Steward Health Care pressing the company to brief them on Steward’s financial position, the status of their Massachusetts facilities, and their plans to ensure the communities they serve are not abandoned.

MIL OSI USA News –

April 30, 2025

MIL-OSI Russia: Marat Khusnullin: Russians have built more than 170 thousand private houses since the beginning of the year

Translation. Region: Russian Federal

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Since the beginning of 2025, residents of the country have built and registered 170.4 thousand individual residential buildings. This was reported by Deputy Prime Minister Marat Khusnullin.

At the April 15 meeting of the State Council Presidium on the development of infrastructure for life, Russian President Vladimir Putin noted that individual housing construction is the most important area in demand among citizens. The head of state also emphasized that it is necessary to expand this segment of housing, pay special attention to the provision of land plots, their provision with infrastructure and the creation of reliable mechanisms so that people can invest their funds in individual construction.

“A number of measures have been taken to develop housing construction, including the individual housing construction sector. In recent years, interest in individual housing construction has grown significantly. Since the beginning of 2025, citizens have built and registered 170.4 thousand private houses with a total area of 24.7 million square meters in the Rosreestr, which is almost 17% more than in the same period of 2024,” said Marat Khusnullin.

Today, individual housing construction accounts for more than half of the housing commissioning in the country. In 2024, 62.3 million square meters of private housing were commissioned in Russia, which became a record figure in the entire history of Russia.

“The leader in this segment is the Central Federal District. Since the beginning of 2025, 36.6 thousand individual houses with a total area of 7.2 million square meters have been built here, or 29% of the total individual housing construction fund built since the beginning of 2025. Including in the Moscow Region, more than 14 thousand individual housing construction objects have been built and registered with the cadastral register, which is 38.2% of the total number in the Central Federal District,” commented Oleg Skufinsky, head of Rosreestr.

Almost as in the Central Federal District, private construction is popular in the Volga region, where from January to March of this year, almost 31.7 thousand individual houses with a total area of 4.2 million square meters were built. The Republic of Tatarstan is the leader here with 10.5 thousand houses. At the same time, according to the results of 2024, the Republic of Bashkortostan became the leader in the number of private houses commissioned in the Volga Federal District (19.8 thousand houses).

The Southern Federal District rounds out the top three, where 23.2 thousand individual housing construction objects with an area of 3.2 million square meters have been built since the beginning of 2025. This is 20% more than the figure for the same period in 2024. The best indicators in the district are in Krasnodar Krai – 10.8 thousand private houses.

The main building material in the period under review was wood. According to the Unified State Register of Real Estate, 55.5 thousand individual housing construction objects with an area of 7 million square meters were built from it, which is 22% more than at the beginning of 2024. Slightly less often, citizens built houses from brick – 31.4 thousand houses with an area of 5 million square meters. The least amount of panel houses were erected – only 1.7 thousand buildings on 214 thousand square meters.

As for the number of storeys, in most cases Russians built single-storey houses, 100 thousand of which were registered – this is 16% more than at the beginning of 2024. Two-storey buildings were erected in 65.1 thousand, three-storey buildings – 4.8 thousand.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

April 30, 2025

MIL-OSI: FinWise Bancorp Announces Strategic Lending and Credit Enhanced Balance Sheet Program with Backd to Support Business Owners

Source: GlobeNewswire (MIL-OSI)

MURRAY, Utah, April 29, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced the launch of a new strategic lending program with leading fintech Backd Business Funding (“Backd”). Since its inception in 2019, Backd’s highly rated and experienced team has utilized an efficient and user-friendly process to support business owners with lending solutions best suited for their needs.

FinWise, through its relationship with Backd, will provide business installment loans to small and medium-sized (“SMB”) businesses. FinWise will also provide Backd with access to its Credit Enhanced Balance Sheet program, which benefits strategic programs through capital efficiency, allows them to diversify their sources of funding and extends the reach of their warehouse facilities.

“Backd continues to make strides in its mission to empower SMBs across the U.S. to achieve their greatest potential through fast and easy financing solutions. This lending and Credit Enhanced Balance Sheet partnership with FinWise gives us an opportunity to continue to scale and grow our business while ensuring deep regulatory expertise and guidance,” said Xan Myburgh, Backd’s CEO & Co-Founder. “We have proven success in multiple sectors including healthcare and e-commerce and believe we have a substantial runway for growth as the SMB population makes up nearly 44% of overall GDP and approximately $734 billion of the digital lending and credit market.”

Robert Keil, EVP and Chief Fintech Officer of FinWise commented, “We are thrilled that Backd chose FinWise to augment their thriving business by using both our Strategic Lending and Credit Enhanced Balance Sheet programs. The trust that they have placed in us is a testament to the strength of the FinWise multi-product offering and the innovative lending products that we deliver to our strategic partners.”

About Backd
Backd was founded to support relentless entrepreneurs—the true “men and women in the arena”—who build, innovate, and push their businesses forward. Backd provides fast, flexible financing to help business owners overcome critical financial challenges.

Backd believes courage, resilience, and ambition drive success. When financial resources make the difference between opportunity and setback, Backd bridges the gap with tailored funding solutions, keeping businesses moving forward.

Rooted in respect and partnership, Backd understands the challenges entrepreneurs face. With transparency, integrity, and a commitment to growth, obstacles are tackled head-on. As risks are taken and perseverance is tested in the arena, Backd stands beside business owners at every vital step.
https://www.backd.com/

About FinWise

FinWise provides Banking and Payments solutions to fintech brands. Its existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. As part of Strategic Program Lending, FinWise also provides a Credit Enhanced Balance Sheet Program, which addresses the challenges that lending and card programs face securing warehouse facilities and managing capital requirements. 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. The Company is also expanding and diversifying its business model by incorporating Payments (MoneyRails ™) and BIN Sponsorship offerings. 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.

https://www.finwise.bank/

Contacts

investors@finwisebank.com
media@finwisebank.com
info@backd.com
marketing@backd.com

The MIL Network –

April 30, 2025

MIL-OSI Russia: Marat Khusnullin: In new regions, about 252 thousand real estate objects were identified as part of a comprehensive inventory

Translation. Region: Russian Federal

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

In order to involve new real estate objects into circulation and increase the level of investment activity in the reunited regions, work on a complete inventory is ongoing. Thanks to it, 251,750 objects have been identified, information about which has been entered into the Unified State Register of Real Estate, Deputy Prime Minister Marat Khusnullin reported.

“A comprehensive inventory in new regions is being conducted in two directions – studying archival documents confirming property rights to real estate objects or describing objects, and inspecting the territories. Thus, since the beginning of the project, work has been completed in 4,230 cadastral blocks. Also, based on archival documents, information on 1.4 million objects has been entered into the Unified State Register of Real Estate. In general, this colossal work allows us to create an accurate real estate register not only for the inclusion of new objects in circulation, but also so that citizens can quickly and without delays formalize their property rights and protect their property rights. Inventory is also necessary for further mass cadastral valuation of objects,” said Marat Khusnullin.

As part of the inventory, the characteristics of objects, information about which is entered into the Unified State Register of Real Estate, are also clarified, and the title holders, unused lands, and ownerless buildings, structures, and premises are identified.

“This work is carried out by the Roscadastre PPC under the coordination of Rosreestr. In particular, 13,662 unused land plots and territories with a total area of 112 thousand hectares have already been identified. In total, by the end of 2026, it is planned to conduct an inventory of more than 28 thousand cadastral quarters available for survey,” added Rosreestr head Oleg Skufinsky.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

April 30, 2025

MIL-OSI: NMI Holdings, Inc. Reports Record First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

EMERYVILLE, Calif., April 29, 2025 (GLOBE NEWSWIRE) — NMI Holdings, Inc. (Nasdaq: NMIH) today reported net income of $102.6 million, or $1.28 per diluted share, for the first quarter ended March 31, 2025, compared to $86.2 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024. Adjusted net income for the quarter was $102.5 million, or $1.28 per diluted share, compared to $86.1 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024 and $89.0 million, or $1.08 per diluted share, for the first quarter ended March 31, 2024.

Adam Pollitzer, President and Chief Executive Officer of National MI, said, “In the first quarter, we again delivered standout operating performance, continued growth in our high-quality insured portfolio and record financial results. We have a strong customer franchise, a talented team driving us forward every day, an exceptionally high-quality book covered by a comprehensive set of risk transfer solutions, and a robust balance sheet supported by the significant earnings power of our platform. We continue to manage our business with discipline and a focus on through-the-cycle performance, and looking forward, we’re well positioned to continue to serve our customers and their borrowers, support our talented team, and deliver sustained performance and long-term value for our shareholders.”

Selected first quarter 2025 highlights include:

Primary insurance-in-force at quarter end was $211.3 billion, compared to $210.2 billion at the end of the fourth quarter and $199.4 billion at the end of the first quarter of 2024.
Net premiums earned were $149.4 million, compared to $143.5 million in the fourth quarter and $136.7 million in the first quarter of 2024.
Total revenue was $173.2 million, compared to $166.5 million in the fourth quarter and $156.3 million in the first quarter of 2024.
Insurance claims and claim expenses were $4.5 million, compared to $17.3 million in the fourth quarter and $3.7 million in the first quarter of 2024. Loss ratio was 3.0%, compared to 12.0% in the fourth quarter and 2.7% in the first quarter of 2024.
Underwriting and operating expenses were $30.2 million, compared to $31.1 million in the fourth quarter and $29.8 million in the first quarter of 2024. Expense ratio was 20.2%, compared to 21.7% in the fourth quarter and 21.8% in the first quarter of 2024.
Net income was $102.6 million, compared to $86.2 million in the fourth quarter and $89.0 million in the first quarter of 2024. Diluted EPS was $1.28, compared to $1.07 in the fourth quarter and $1.08 in the first quarter of 2024.
Shareholders’ equity was $2.3 billion at quarter end and book value per share was $29.65. Book value per share excluding the impact of net unrealized gains and losses in the investment portfolio was $30.85, up 4% compared to $29.80 in the fourth quarter and 17% compared to $26.42 in the first quarter of 2024.
Annualized return on equity for the quarter was 18.1%, compared to 15.6% in the fourth quarter and 18.2% in the first quarter of 2024.
At quarter-end, total PMIERs available assets were $3.2 billion and net risk-based required assets were $1.9 billion.

	*Quarter Ended*			*Quarter Ended*			*Quarter Ended*			*Change*⁽¹⁾		*Change*⁽¹⁾
	*3/31/2025*			*12/31/2024*			*3/31/2024*			*Q/Q*		*Y/Y*
INSURANCE METRICS ($billions)
Primary Insurance-in-Force	$	211.3		$	210.2		$	199.4		1	%	6	%
New Insurance Written – NIW		9.2			11.9			9.4		(23)	%	(2)%

FINANCIAL HIGHLIGHTS (Unaudited, $millions, except per share amounts)
Net Premiums Earned	$	149.4		$	143.5		$	136.7		4	%	9	%
Net Investment Income		23.7			22.7			19.4		4	%	22	%
Insurance Claims and Claim Expenses		4.5			17.3			3.7		(74)	%	21	%
Underwriting and Operating Expenses		30.2			31.1			29.8		(3)	%	1	%
Net Income		102.6			86.2			89.0		19	%	15	%
Diluted EPS	$	1.28		$	1.07		$	1.08		20	%	18	%
Book Value per Share (excluding net unrealized gains and losses)⁽²⁾	$	30.85		$	29.80		$	26.42		4	%	17	%
Loss Ratio		3.0	%		12.0	%		2.7	%
Expense Ratio		20.2	%		21.7	%		21.8	%

(1) Percentages may not be replicated based on the rounded figures presented in the table. (2) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Conference Call and Webcast Details

The company will hold a conference call, which will be webcast live today, April 29, 2025, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. The webcast will be available on the company’s website, www.nationalmi.com, in the “Investor Relations” section. The conference call can also be accessed by dialing (844) 481-2708 in the U.S., or (412) 317-0664 internationally, by referencing NMI Holdings, Inc.

About NMI Holdings, Inc.

NMI Holdings, Inc. (NASDAQ: NMIH), is the parent company of National Mortgage Insurance Corporation (National MI), a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default. To learn more, please visit www.nationalmi.com.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained in this press release or any other written or oral statements made by or on behalf of the Company in connection therewith may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995 (the “PSLRA”). The PSLRA provides a “safe harbor” for any forward-looking statements. All statements other than statements of historical fact included in or incorporated by reference in this release are forward-looking statements, including any statements about our expectations, outlook, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believe,” “can,” “could,” “may,” “predict,” “assume,” “potential,” “should,” “will,” “estimate,” “perceive,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend” and similar words or phrases. All forward-looking statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties that may turn out to be inaccurate and could cause actual results to differ materially from those expressed in them. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to our business and operations. Important factors that could cause actual events or results to differ materially from those indicated in such statements include, but are not limited to: changes in general economic, market and political conditions and policies (including changes in interest rates and inflation) and investment results or other conditions that affect the U.S. housing market or the U.S. markets for home mortgages, mortgage insurance, reinsurance and credit risk transfer markets, including the risk related to geopolitical instability, inflation, an economic downturn (including any decline in home prices) or recession, and their impacts on our business, operations and personnel; changes in the charters, business practices, policies, pricing or priorities of Fannie Mae and Freddie Mac (collectively, the GSEs), which may include decisions that have the impact of decreasing or discontinuing the use of mortgage insurance as credit enhancement generally, or with first time homebuyers or on very high loan-to-value mortgages; or changes in the direction of housing policy objectives of the Federal Housing Finance Agency (“FHFA”), such as the FHFA’s priority to increase the accessibility to and affordability of homeownership for low-and-moderate income borrowers and underrepresented communities; our ability to remain an eligible mortgage insurer under the private mortgage insurer eligibility requirements (“PMIERs”) and other requirements imposed by the GSEs, which they may change at any time; retention of our existing certificates of authority in each state and the District of Columbia (“D.C.”) and our ability to remain a mortgage insurer in good standing in each state and D.C.; our future profitability, liquidity and capital resources; actions of existing competitors, including other private mortgage insurers and government mortgage insurers such as the Federal Housing Administration, the U.S. Department of Agriculture’s Rural Housing Service and the U.S. Department of Veterans Affairs, and potential market entry by new competitors or consolidation of existing competitors; adoption of new or changes to existing laws, rules and regulations that impact our business or financial condition directly or the mortgage insurance industry generally or their enforcement and implementation by regulators, including the implementation of the final rules defining and/or concerning “Qualified Mortgage” and “Qualified Residential Mortgage”; U.S. federal tax reform and other potential changes in tax law and their impact on us and our operations; legislative or regulatory changes to the GSEs’ role in the secondary mortgage market or other changes that could affect the residential mortgage industry generally or mortgage insurance industry in particular; potential legal and regulatory claims, investigations, actions, audits or inquiries that could result in adverse judgements, settlements, fines or other reliefs that could require significant expenditures or have other negative effects on our business; our ability to successfully execute and implement our capital plans, including our ability to access the equity, credit and reinsurance markets and to enter into, and receive approval of, reinsurance arrangements on terms and conditions that are acceptable to us, the GSEs and our regulators; lenders, the GSEs, or other market participants seeking alternatives to private mortgage insurance; our ability to implement our business strategy, including our ability to write mortgage insurance on high quality low down payment residential mortgage loans, implement successfully and on a timely basis, complex infrastructure, systems, procedures, and internal controls to support our business and regulatory and reporting requirements of the insurance industry; our ability to attract and retain a diverse customer base, including the largest mortgage originators; failure of risk management or pricing or investment strategies; decrease in the length of time our insurance policies are in force; emergence of unexpected claim and coverage issues, including claims exceeding our reserves or amounts we had expected to experience; potential adverse impacts arising from natural disasters including, with respect to affected areas, a decline in new business, adverse effects on home prices, and an increase in notices of default on insured mortgages; climate risk and efforts to manage or regulate climate risk by government agencies could affect our business and operations; potential adverse impacts arising from the occurrence of any man-made disasters or public health emergencies, including pandemics; the inability of our counter-parties, including third party reinsurers, to meet their obligations to us; failure to maintain, improve and continue to develop necessary information technology systems or the failure of technology providers to perform; effectiveness and security of our information technology systems and digital products and services, including the risks these systems, products or services may fail to operate as expected or planned, or expose us to cybersecurity or third-party risks (including the exposure of our confidential customer and other information); and ability to recruit, train and retain key personnel. These risks and uncertainties also include, but are not limited to, those set forth under the heading “Risk Factors” detailed in Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2024, as subsequently updated through other reports we file with the SEC. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. We caution you not to place undue reliance on any forward-looking statement, which speaks only as of the date on which it is made, and we undertake no obligation to publicly update or revise any forward-looking statement to reflect new information, future events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events except as required by law.

Use of Non-GAAP Financial Measures

We believe the use of the non-GAAP measures of adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) enhances the comparability of our fundamental financial performance between periods, and provides relevant information to investors. These non-GAAP financial measures align with the way the company’s business performance is evaluated by management. These measures are not prepared in accordance with GAAP and should not be viewed as alternatives to GAAP measures of performance. These measures have been presented to increase transparency and enhance the comparability of our fundamental operating trends across periods. Other companies may calculate these measures differently; their measures may not be comparable to those we calculate and present.

Adjusted income before tax is defined as GAAP income before tax, excluding the pre-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred.

Adjusted net income is defined as GAAP net income, excluding the after-tax effects of net realized gains or losses from our investment portfolio, periodic costs incurred in connection with capital markets transactions, and other infrequent, unusual or non-operating items in the periods in which such items are incurred. Adjustments to components of pre-tax income are tax effected using the applicable federal statutory tax rate for the respective periods.

Adjusted diluted EPS is defined as adjusted net income divided by adjusted weighted average diluted shares outstanding. Adjusted weighted average diluted shares outstanding is defined as weighted average diluted shares outstanding, adjusted for changes in the dilutive effect of non-vested shares that would otherwise have occurred had GAAP net income been calculated in accordance with adjusted net income. There will be no adjustment to weighted average diluted shares outstanding in the periods that non-vested shares are anti-dilutive under GAAP.

Adjusted return on equity is calculated by dividing adjusted net income on an annualized basis by the average shareholders’ equity for the period.

Adjusted expense ratio is defined as GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions, divided by net premiums earned.

Adjusted combined ratio is defined as the total of GAAP underwriting and operating expenses, excluding the pre-tax effects of periodic costs incurred in connection with capital markets transactions and insurance claims and claims expenses, divided by net premiums earned.

Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on investments, divided by shares outstanding.

Although adjusted income before tax, adjusted net income, adjusted diluted EPS, adjusted return-on-equity, adjusted expense ratio, adjusted combined ratio and book value per share (excluding net unrealized gains and losses) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items: (1) are not viewed as part of the operating performance of our primary activities; or (2) are impacted by market, economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, and the reasons for their treatment, are described below.

(1) Net realized investment gains and losses. The recognition of net realized investment gains or losses can vary significantly across periods as the timing is highly discretionary and is influenced by factors such as market opportunities, tax and capital profile, and overall market cycles that do not reflect our current period operating results.

(2) Capital markets transaction costs. Capital markets transaction costs result from activities that are undertaken to improve our debt profile or enhance our capital position through activities such as debt refinancing and capital markets reinsurance transactions that may vary in their size and timing due to factors such as market opportunities, tax and capital profile, and overall market cycles.

(3) Other infrequent, unusual or non-operating items. Items that are the result of unforeseen or uncommon events, and are not expected to recur with frequency in the future. Identification and exclusion of these items provides clarity about the impact special or rare occurrences may have on our current financial performance. Past adjustments under this category include infrequent, unusual or non-operating adjustments related to severance, restricted stock modification and other expenses incurred in connection with the CEO transition announced in September 2021 and the effects of the release of the valuation allowance recorded against our net federal and certain state net deferred tax assets in 2016 and the re-measurement of our net deferred tax assets in connection with tax reform in 2017. We believe such items are infrequent or non-recurring in nature, and are not indicative of the performance of, or ongoing trends in, our primary operating activities or business.

(4) Net unrealized gains and losses on investments. The recognition of net unrealized gains or losses on investment can vary significantly across periods and is influenced by factors such as interest rate movement, overall market and economic conditions, and tax and capital profiles. These valuation adjustments may not necessarily result in economic gains or losses and not reflective of ongoing operations.

Investor Contact
Gregory Epps
Senior Manager, Investor Relations and Treasury
Investor.relations@nationalmi.com

Consolidated statements of operations and comprehensive income (unaudited)	For the three months ended March 31,
		2025			2024
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	136,657
Net investment income		23,686			19,436
Net realized investment gains		24			—
Other revenues		170			160
Total revenues		173,246			156,253
Expenses
Insurance claims and claim expenses		4,478			3,694
Underwriting and operating expenses		30,175			29,815
Service expenses		116			137
Interest expense		7,106			8,040
Total expenses		41,875			41,686

Income before income taxes		131,371			114,567
Income tax expense		28,812			25,517
Net income	$	102,559		$	89,050

Earnings per share
Basic	$	1.31		$	1.10
Diluted	$	1.28		$	1.08

Weighted average common shares outstanding
Basic		78,407			80,726
Diluted		79,858			82,099

Loss ratio⁽¹⁾		3.0	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.8	%
Combined ratio		23.2	%		24.5	%

Net income	$	102,559		$	89,050
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) in accumulated other comprehensive loss, net of tax expense (benefit) of $8,186 and $(2,729) for the quarters ended March 31, 2025 and 2024, respectively		30,795			(9,905	)
Reclassification adjustment for realized gains included in net income, net of tax expense of $5 for the quarter ended March 31, 2025		(19	)		—
Other comprehensive income (loss), net of tax		30,776			(9,905	)
Comprehensive income	$	133,335		$	79,145

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Consolidated balance sheets (unaudited)	March 31, 2025			December 31, 2024
Assets	(In Thousands, except for share data)
Fixed maturities, available-for-sale, at fair value (amortized cost of $2,923,088 and $2,876,343 as of March 31, 2025 and December 31, 2024, respectively)	$	2,809,247		$	2,723,541
Cash and cash equivalents (including restricted cash of $90 as of December 31, 2024)		74,209			54,308
Premiums receivable, net		84,153			82,804
Accrued investment income		23,641			22,386
Deferred policy acquisition costs, net		64,013			64,327
Software and equipment, net		24,960			25,681
Intangible assets and goodwill		3,634			3,634
Reinsurance recoverable		31,379			32,260
Prepaid federal income taxes		322,175			322,175
Other assets		18,785			18,857
Total assets	$	3,456,196		$	3,349,973

Liabilities
Debt	$	415,606		$	415,146
Unearned premiums		59,176			65,217
Accounts payable and accrued expenses		78,937			103,164
Reserve for insurance claims and claim expenses		151,847			152,071
Deferred tax liability, net		418,916			386,192
Other liabilities		10,143			10,751
Total liabilities		1,134,625			1,132,541

Shareholders’ equity
Common stock – $0.01 par value; 88,321,226 shares issued and 78,301,469 shares outstanding as of March 31, 2025 and 87,902,626 shares issued and 78,600,726 shares outstanding as of December 31, 2024 (250,000,000 shares authorized)		883			879
Additional paid-in capital		1,001,545			1,004,692
Treasury Stock, at cost: 10,019,757 and 9,301,900 common shares as of March 31, 2025 and December 31, 2024, respectively		(272,647	)		(246,594	)
Accumulated other comprehensive loss, net of tax		(94,028	)		(124,804	)
Retained earnings		1,685,818			1,583,259
Total shareholders’ equity		2,321,571			2,217,432
Total liabilities and shareholders’ equity	$	3,456,196		$	3,349,973

Non-GAAP Financial Measure Reconciliations (unaudited)
	As of and for the three months ended
	3/31/2025			12/31/2024			3/31/2024
As Reported	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	136,657
Net investment income		23,686			22,718			19,436
Net realized investment gains		24			33			—
Other revenues		170			233			160
Total revenues		173,246			166,504			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			3,694
Underwriting and operating expenses		30,175			31,092			29,815
Service expenses		116			184			137
Interest expense		7,106			7,102			8,040
Total expenses		41,875			55,631			41,686

Income before income taxes		131,371			110,873			114,567
Income tax expense		28,812			24,706			25,517
Net income	$	102,559		$	86,167		$	89,050

Adjustments:
Net realized investment gains		(24	)		(33	)		—
Adjusted income before taxes		131,347			110,840			114,567

Income tax benefit on adjustments⁽¹⁾		5			7			—
Adjusted net income	$	102,540		$	86,141		$	89,050

Weighted average diluted shares outstanding		79,858			80,623			82,099

Diluted EPS	$	1.28		$	1.07		$	1.08
Adjusted diluted EPS	$	1.28		$	1.07		$	1.08

Return on equity		18.1	%		15.6	%		18.2	%
Adjusted return on equity		18.1	%		15.6	%		18.2	%

Expense ratio⁽²⁾		20.2	%		21.7	%		21.8	%
Adjusted expense ratio⁽³⁾		20.2	%		21.7	%		21.8	%

Combined ratio⁽⁴⁾		23.2	%		33.7	%		24.5	%
Adjusted combined ratio⁽⁵⁾		23.2	%		33.7	%		24.5	%

Book value per share⁽⁶⁾	$	29.65		$	28.21		$	24.56
Book value per share (excluding net unrealized gains and losses)⁽⁷⁾	$	30.85		$	29.80		$	26.42

(1) Marginal tax impact of non-GAAP adjustments is calculated based on our statutory U.S. federal corporate income tax rate of 21%, except for those items that are not eligible for an income tax deduction. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned. (3) Adjusted expense ratio is calculated by dividing adjusted underwriting and operating expense (underwriting and operating expenses excluding costs related to capital markets reinsurance transactions) by net premiums earned. (4) Combined ratio is calculated by dividing the total of underwriting and operating expenses and insurance claims and claim expenses by net premiums earned. (5) Adjusted combined ratio is calculated by dividing the total of adjusted underwriting and operating expenses (underwriting and operating expenses excluding costs related to capital market reinsurance transaction) and insurance claims and claim expenses by net premiums earned. (6) Book value per share is calculated by dividing total shareholders’ equity by shares outstanding. (7) Book value per share (excluding net unrealized gains and losses) is defined as total shareholders’ equity, excluding the after-tax effects of unrealized gains and losses on our investment portfolio, divided by shares outstanding.

Historical Quarterly Data		2025			2024
	March 31			December 31			September 30			June 30			March 31
	(In Thousands, except for per share data)
Revenues
Net premiums earned	$	149,366		$	143,520		$	143,343		$	141,168		$	136,657
Net investment income		23,686			22,718			22,474			20,688			19,436
Net realized investment gains (losses)		24			33			(10	)		—			—
Other revenues		170			233			285			266			160
Total revenues		173,246			166,504			166,092			162,122			156,253
Expenses
Insurance claims and claim expenses		4,478			17,253			10,321			276			3,694
Underwriting and operating expenses		30,175			31,092			29,160			28,330			29,815
Service expenses		116			184			208			194			137
Interest expense		7,106			7,102			7,076			14,678			8,040
Total expenses		41,875			55,631			46,765			43,478			41,686

Income before income taxes		131,371			110,873			119,327			118,644			114,567
Income tax expense		28,812			24,706			26,517			26,565			25,517
Net income	$	102,559		$	86,167		$	92,810		$	92,079		$	89,050

Earnings per share
Basic	$	1.31		$	1.09		$	1.17		$	1.15		$	1.10
Diluted	$	1.28		$	1.07		$	1.15		$	1.13		$	1.08

Weighted average common shares outstanding
Basic		78,407			78,997			79,549			80,117			80,726
Diluted		79,858			80,623			81,045			81,300			82,099

Other data
Loss ratio⁽¹⁾		3.0	%		12.0	%		7.2	%		0.2	%		2.7	%
Expense ratio⁽²⁾		20.2	%		21.7	%		20.3	%		20.1	%		21.8	%
Combined ratio		23.2	%		33.7	%		27.5	%		20.3	%		24.5	%

(1) Loss ratio is calculated by dividing insurance claims and claim expenses by net premiums earned. (2) Expense ratio is calculated by dividing underwriting and operating expenses by net premiums earned.

Portfolio Statistics

The table below highlights trends in our primary portfolio as of the date and for the periods indicated.

Primary portfolio trends	As of and for the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	($ Values In Millions, except as noted below)
New insurance written (NIW)	$	9,221		$	11,925		$	12,218		$	12,503		$	9,398
New risk written		2,428			3,134			3,245			3,335			2,486
Insurance-in-force (IIF)⁽¹⁾		211,308			210,183			207,538			203,501			199,373
Risk-in-force (RIF)⁽¹⁾		56,515			56,113			55,253			53,956			52,610
Policies in force (count)⁽¹⁾		661,490			659,567			654,374			645,276			635,662
Average loan size($ value in thousands)⁽¹⁾	$	319		$	319		$	317		$	315		$	314
Coverage percentage⁽²⁾		26.7	%		26.7	%		26.6	%		26.5	%		26.4	%
Loans in default (count)⁽¹⁾		6,859			6,642			5,712			4,904			5,109
Default rate⁽¹⁾		1.04	%		1.01	%		0.87	%		0.76	%		0.80	%
Risk-in-force on defaulted loans⁽¹⁾	$	567		$	545		$	468		$	401		$	414
Average net premium yield⁽³⁾		0.28	%		0.27	%		0.28	%		0.28	%		0.28	%
Earnings from cancellations	$	0.6		$	0.8		$	0.8		$	1.0		$	0.6
Annual persistency⁽⁴⁾		84.3	%		84.6	%		85.5	%		85.4	%		85.8	%
Quarterly run-off⁽⁵⁾		3.9	%		4.5	%		4.0	%		4.2	%		3.6	%

(1) Reported as of the end of the period. (2) Calculated as end of period RIF divided by end of period IIF. (3) Calculated as net premiums earned, divided by average primary IIF for the period, annualized. (4) Defined as the percentage of IIF that remains on our books after a given twelve-month period. (5) Defined as the percentage of IIF that is no longer on our books after a given three-month period.

NIW, IIF and Premiums

The tables below present NIW and primary IIF, as of the dates and for the periods indicated.

NIW	For the three months ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	9,049	$	11,688	$	11,978	$	12,288	$	9,175
Single		172		237		240		215		223
Total	$	9,221	$	11,925	$	12,218	$	12,503	$	9,398

Primary IIF	As of
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
	(In Millions)
Monthly	$	193,856	$	192,228	$	189,241	$	184,862	$	180,343
Single		17,452		17,955		18,297		18,639		19,030
Total	$	211,308	$	210,183	$	207,538	$	203,501	$	199,373

The following table presents the amounts related to the company’s quota-share reinsurance transactions (the 2016 QSR Transaction, 2018 QSR Transaction, 2020 QSR Transaction, 2021 QSR Transaction, 2022 QSR Transaction, 2022 Seasoned QSR Transaction, 2023 QSR Transaction, 2024 QSR Transaction, and 2025 QSR Transaction and collectively, the QSR Transactions), insurance-linked note transactions (the 2021-1 ILN Transaction, and 2021-2 ILN Transaction and collectively, the ILN Transactions), and traditional reinsurance transactions (the 2022-1 XOL Transaction, 2022-2 XOL Transaction, 2022-3 XOL Transaction, 2023-1 XOL Transaction, 2023-2 XOL Transaction, 2024 XOL Transaction, and 2025 XOL Transaction and collectively, the XOL Transactions) for the periods indicated.

	For the three months ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(In Thousands)
The QSR Transactions
Ceded risk-in-force	$	12,888,870		$	13,024,200		$	12,968,039		$	12,815,434		$	12,669,207
Ceded premiums earned		(41,011	)		(41,596	)		(41,761	)		(41,555	)		(41,269	)
Ceded claims and claim expenses (benefits)		523			4,075			2,449			(138	)		659
Ceding commission earned		9,768			9,997			10,152			10,222			10,292
Profit commission		23,398			20,149			21,883			24,351			23,407
The ILN Transactions⁽¹⁾
Ceded premiums	$	(3,311	)	$	(4,217	)	$	(4,302	)	$	(5,858	)	$	(5,976	)
The XOL Transactions
Ceded Premiums	$	(10,168	)	$	(9,969	)	$	(9,760	)	$	(9,403	)	$	(9,223	)

(1) Effective July 25, 2024 and December 27, 2024, NMIC exercised its optional termination rights to terminate and commute its previously outstanding excess-of-loss reinsurance agreements with Oaktown Re III Ltd. and Oaktown Re V Ltd., respectively. In connection with the terminations and commutations, the insurance-linked notes issued by Oaktown Re III Ltd. and Oaktown Re V Ltd. were redeemed in full with a distribution of remaining collateral assets.

The tables below present our total NIW by FICO, loan-to-value (LTV) ratio, and purchase/refinance mix for the periods indicated.

NIW by FICO	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	4,971	$	6,508	$	4,888
740-759		1,753		2,090		1,797
720-739		1,177		1,621		1,220
700-719		665		890		780
680-699		413		575		530
<=679		242		241		183
Total	$	9,221	$	11,925	$	9,398
Weighted average FICO		758		758		757

NIW by LTV	For the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
95.01% and above	$	1,147		$	1,510		$	1,062
90.01% to 95.00%		4,274			5,370			4,414
85.01% to 90.00%		2,751			3,740			2,931
85.00% and below		1,049			1,305			991
Total	$	9,221		$	11,925		$	9,398
Weighted average LTV		92.2	%		92.1	%		92.3	%

NIW by purchase/refinance mix	For the three months ended
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
Purchase	$	8,822	$	10,799	$	9,157
Refinance		399		1,126		241
Total	$	9,221	$	11,925	$	9,398

The table below presents a summary of our primary IIF and RIF by book year as of March 31, 2025.

Primary IIF and RIF	As of March 31, 2025
	IIF		RIF
Book Year	(In Millions)
2025	$	9,152	$	2,409
2024		42,379		11,242
2023		33,286		8,789
2022		46,203		12,356
2021		48,162		13,049
2020 and before		32,126		8,670
Total	$	211,308	$	56,515

The tables below present our total primary IIF and RIF by FICO and LTV, and total primary RIF by loan type as of the dates indicated.

Primary IIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	106,004	$	105,315	$	99,195
740-759		37,716		37,321		35,416
720-739		29,430		29,343		28,033
700-719		19,737		19,766		18,904
680-699		13,324		13,374		13,002
<=679		5,097		5,064		4,823
Total	$	211,308	$	210,183	$	199,373

Primary RIF by FICO	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
>= 760	$	28,117	$	27,883	$	25,935
740-759		10,132		10,006		9,392
720-739		7,966		7,926		7,484
700-719		5,384		5,383		5,089
680-699		3,610		3,615		3,479
<=679		1,306		1,300		1,231
Total	$	56,515	$	56,113	$	52,610

Primary IIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	24,167	$	23,555	$	20,277
90.01% to 95.00%		104,312		103,472		97,028
85.01% to 90.00%		64,298		64,290		61,169
85.00% and below		18,531		18,866		20,899
Total	$	211,308	$	210,183	$	199,373

Primary RIF by LTV	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Millions)
95.01% and above	$	7,546	$	7,345	$	6,275
90.01% to 95.00%		30,804		30,563		28,663
85.01% to 90.00%		15,957		15,956		15,174
85.00% and below		2,208		2,249		2,498
Total	$	56,515	$	56,113	$	52,610

Primary RIF by Loan Type	As of
	March 31, 2025		December 31, 2024		March 31, 2024
Fixed	98	%	98	%	98	%
Adjustable rate mortgages:
Less than five years	—		—		—
Five years and longer	2		2		2
Total	100	%	100	%	100	%

The table below presents a summary of the change in total primary IIF for the dates and periods indicated.

Primary IIF	As of and for the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(In Millions)
IIF, beginning of period	$	210,183		$	207,538		$	197,029
NIW		9,221			11,925			9,398
Cancellations, principal repayments and other reductions		(8,096	)		(9,280	)		(7,054	)
IIF, end of period	$	211,308		$	210,183		$	199,373

Geographic Dispersion

The following table shows the distribution by state of our primary RIF as of the periods indicated.

Top 10 primary RIF by state	As of
	March 31, 2025		December 31, 2024		March 31, 2024
California	10.1	%	10.1	%	10.2	%
Texas	8.5		8.6		8.8
Florida	7.3		7.3		7.5
Georgia	4.1		4.1		4.2
Washington	3.9		3.9		3.9
Illinois	3.8		3.8		3.9
Virginia	3.7		3.7		3.9
Pennsylvania	3.4		3.4		3.4
Ohio	3.3		3.3		3.0
North Carolina	3.2		3.2		3.1
Total	51.3	%	51.4	%	51.9	%

The table below presents selected primary portfolio statistics, by book year, as of March 31, 2025.

	As of March 31, 2025
Book Year	Original Insurance Written		Remaining Insurance in Force		% Remaining of Original Insurance		Policies Ever in Force	Number of Policies in Force	Number of Loans in Default	# of Claims Paid	Incurred Loss Ratio (Inception to Date)⁽¹⁾		Cumulative Default Rate⁽²⁾		Current default rate⁽³⁾
	($ Values In Millions)
2016 and prior	$	37,222	$	2,133	6	%	151,615	11,572	237	398	2.1	%	0.4	%	2.0	%
2017		21,582		1,753	8	%	85,897	10,007	263	189	1.8	%	0.5	%	2.6	%
2018		27,295		2,306	8	%	104,043	12,534	403	191	2.6	%	0.6	%	3.2	%
2019		45,141		5,923	13	%	148,423	26,358	509	99	2.1	%	0.4	%	1.9	%
2020		62,702		20,011	32	%	186,174	70,620	575	57	1.3	%	0.3	%	0.8	%
2021		85,574		48,162	56	%	257,972	160,946	1,704	95	3.3	%	0.7	%	1.1	%
2022		58,734		46,203	79	%	163,281	135,610	2,014	112	16.2	%	1.3	%	1.5	%
2023		40,473		33,286	82	%	111,994	96,394	836	17	14.0	%	0.8	%	0.9	%
2024		46,044		42,379	92	%	120,747	113,636	318	—	7.9	%	0.3	%	0.3	%
2025		9,221		9,152	99	%	23,956	23,813	—	—	—	%	—	%	—	%
Total	$	433,988	$	211,308			1,354,102	661,490	6,859	1,158

(1) Calculated as total claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance. (2) Calculated as the sum of the number of claims paid ever to date and number of loans in default divided by policies ever in force. (3) Calculated as the number of loans in default divided by number of policies in force.

The following table provides a reconciliation of the beginning and ending reserve balances for insurance claims and claim expenses:

	For the three months ended March 31,
		2025			2024
	(In Thousands)
Beginning balance	$	152,071		$	123,974
Less reinsurance recoverables⁽¹⁾		(32,260	)		(27,514	)
Beginning balance, net of reinsurance recoverables		119,811			96,460

Add claims incurred:
Claims and claim expenses incurred:
Current year⁽²⁾		34,559			32,976
Prior years⁽³⁾		(30,081	)		(29,282	)
Total claims and claim expenses incurred		4,478			3,694

Less claims paid:
Claims and claim expenses paid:
Current year⁽²⁾		—			—
Prior years⁽³⁾		4,076			852
Reinsurance terminations⁽⁴⁾		(255	)		—
Total claims and claim expenses paid		3,821			852

Reserve at end of period, net of reinsurance recoverables		120,468			99,302
Add reinsurance recoverables⁽¹⁾		31,379			27,880
Ending balance	$	151,847		$	127,182

(1) Related to ceded losses recoverable under the QSR Transactions. (2) Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $25.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $25.9 million attributed to net case reserves and $6.6 million attributed to net IBNR reserves for the three months ended March 31, 2024. (3) Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $21.8 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the three months ended March 31, 2025 and $22.4 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the three months ended March 31, 2024. (4) Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016, 2018 and 2021 QSR Transactions by mutual agreement on a cut-off basis with no termination fee.

The following table provides a reconciliation of the beginning and ending count of loans in default:

	For the three months ended March 31,
	2025		2024
Beginning default inventory	6,642		5,099
Plus: new defaults	2,421		1,876
Less: cures	(2,094	)	(1,817	)
Less: claims paid	(95	)	(42	)
Less: rescission and claims denied	(15	)	(7	)
Ending default inventory	6,859		5,109

The following table provides details of our claims paid, before giving effect to claims ceded under the QSR Transactions, for the periods indicated:

	For the three months ended March 31,
		2025			2024
	($ Values In Thousands)
Number of claims paid⁽¹⁾		95			42
Total amount paid for claims	$	5,225		$	1,145
Average amount paid per claim	$	55		$	27
Severity⁽²⁾		69	%		54	%

(1) Count includes 20 and 16 claims settled without payment during the three months ended March 31, 2025 and 2024, respectively. (2) Severity represents the total amount of claims paid including claim expenses divided by the related RIF on the loan at the time the claim is perfected, and is calculated including claims settled without payment.

The following table shows our average reserve per default, before giving effect to reserves ceded under the QSR Transactions, as of the dates indicated:

	As of March 31,
Average reserve per default:		2025		2024
	(In Thousands)
Case⁽¹⁾	$	20.3	$	22.9
IBNR⁽¹⁾⁽²⁾		1.8		2.0
Total	$	22.1	$	24.9

(1) Defined as the gross reserve per insured loan in default. (2) Amount includes claims adjustment expenses.

The following table provides a comparison of the PMIERs available assets and net risk-based required asset amount as reported by NMIC as of the dates indicated:

	As of
	March 31, 2025		December 31, 2024		March 31, 2024
	(In Thousands)
Available assets	$	3,230,653	$	3,108,211	$	2,821,803
Net risk-based required assets		1,867,414		1,828,807		1,561,655

The MIL Network –

April 30, 2025

MIL-OSI: Pinnacle Bankshares Corporation Announces First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

ALTAVISTA, Va., April 29, 2025 (GLOBE NEWSWIRE) — Net income for Pinnacle Bankshares Corporation (OTCQX:PPBN), the one-bank holding company (“Pinnacle” or the “Company”) for First National Bank (the “Bank”), was $2,261,000, or $1.02 per basic and diluted share, for the quarter ended March 31, 2025 compared to net income of $2,084,000, or $0.95 per basic and diluted share, for the same period of 2024. Quarterly consolidated results are unaudited.

First Quarter 2025 Highlights
Income Statement comparisons are to the first quarter of 2024
Balance Sheet, Capital Ratios, and Stock Price comparisons are to December 31, 2024

Income Statement

Net Income was $2,261,000 and Return on Assets was 0.88%.
Net Interest Income increased 13% due primarily to increased loan volume and yields on earning assets. Net Interest Margin increased 36 basis points to 3.92%.
Provision for Credit Losses was only $37,000 as Asset Quality remains strong with low Nonperforming Loans and no Other Real Estate Owned (OREO).
Noninterest Income increased 7% primarily due to higher commissions on investment and insurance products sales and fees on sales of mortgage loans.
Noninterest Expense increased 13% due primarily to higher salaries and benefits, occupancy, and core processing expenses.

Balance Sheet

Total Assets decreased $5.8 million, or less than 1%, which was driven by a decrease in Deposits.
Loans increased $8.6 million, or 1%.
Securities decreased $18 million due to $38 million in maturing U.S. Treasury Securities that yielded approximately 2.13% partially offset by $20 million in purchases of U.S. Treasury Securities yielding approximately 4.13%.
Deposits decreased $10.2 million, or 1%, to $941 million.
The Liquidity Ratio was strong at 31% (13% excluding Available for Sale Securities).

Capital Ratios & Stock Price

Capital levels are stable as the Bank’s Leverage Ratio increased to 9.35% and the Total Risk-Based Capital Ratio increased to 13.65% due primarily to profitability.
Our Stock Price ended the quarter at $31.94 per share, based on the last trade, which is an increase of $0.74, or 2%.

Net Income & Profitability

Net income generated during the first quarter of 2025 represents a $177,000, or 8%, increase as compared to the same time period of the prior year, which was driven by higher net interest income and noninterest income partially offset by higher noninterest expense and slightly higher provision for credit losses.

Profitability as measured by the Company’s return on average assets (“ROA”) was 0.88% for the first quarter of 2025, which is a 4 basis points increase from the 0.84% produced in the first quarter of 2024. Return on average equity (“ROE”) decreased in the first quarter of 2025 to 11.31%, compared to 12.02% for the same time period of the prior year due to higher equity driven by retained earnings and increases in the market value of the Bank’s securities portfolio.

“We are pleased to have generated higher net income for the first quarter of 2025 as compared to the same period of last year. Pinnacle remains well positioned with continued ample liquidity and strong asset quality, which will serve us well we navigate through current economic uncertainties,” stated Aubrey H. Hall, III, President and Chief Executive Officer for both the Company and the Bank.

Net Interest Income & Margin

The Company generated $9,480,000 in net interest income for the first quarter of 2025, which represents a $1,070,000, or 13%, increase as compared to the first quarter of 2024 as net interest margin increased 36 basis points to 3.92%. Interest income increased $1,191,000, or approximately 11%, to $12,375,000 due to an increase in average loan volume as well as increased yield on earning assets, which improved 38 basis points to 5.11%. Interest expense increased $122,000, or 4%, to $2,896,000 as the cost to fund earning assets increased only 2 basis points to 1.19%.

Reserves for Credit Losses & Asset Quality

The provision for credit losses was minimal and increased only $19,000 to $37,000 in the first quarter of 2025 as compared to the same period of the prior year due to continued strong asset quality.

The allowance for credit losses was $5,131,000 as of March 31, 2025, representing 0.71% of total loans outstanding. In comparison, the allowance for credit losses was $5,084,000 as of December 31, 2024, which was also 0.71% of total loans outstanding. Non-performing loans to total loans were 0.14% as of March 31, 2025, compared to 0.22% at year-end 2024. Allowance coverage of non-performing loans was 519% as of the end of the first quarter of 2025 compared to 321% as of year-end 2024. Management views the allowance balance as being sufficient to offset potential future losses associated with problem loans.

Noninterest Income & Expense

Noninterest income for the first quarter of 2025 was $1,745,000, representing a $122,000, or 7%, increase compared to first quarter of 2024. Higher noninterest income was mainly due to a $78,000 increase in commissions from sales of investment and insurance products and a $59,000 increase in fees on sales of mortgage loans.

Noninterest expense for the first quarter of 2025 was $8,361,000 representing a $959,000, or approximately 13%, increase compared to the first quarter of 2024. Higher operating costs were mainly due to a $625,000 increase in salaries and benefits as we have expanded into a new market and added key operational staff, a $149,000 increase in occupancy expense due to the upgrading and maintenance of our facilities, and a $93,000 increase in core operating system expense due to increased volume of transactions.

The Balance Sheet & Liquidity

Total assets as of March 31, 2025 were $1,038,147,000, down $5,847,000, or less than 1%, from $1,043,994,000 as of December 31, 2024. The principal components of the Company’s assets as of March 31, 2025 were $720,482,000 in total loans, $157,564,000 in securities, and $109,707,000 in cash and cash equivalents. During the first quarter of 2025, total loans increased $8,564,000, or approximately 1%, from $711,918,000 as of December 31, 2024, while securities decreased $18,252,000, or approximately 10%, from $175,816,000.

The majority of the Company’s securities portfolio is relatively short-term in nature with 43% invested in U.S. Treasury Securities with an average maturity of 1.2 years and $20,000,000 maturing in the second quarter of 2025. All of the Company’s securities were classified as available for sale as of March 31, 2025, which provides transparency regarding unrealized losses. Unrealized losses associated with the available for sale securities portfolio were $10,250,000 as of March 31, 2025 or 6% of book value, an improvement from $11,817,000 as of December 31, 2024.

Cash and cash equivalents increased $1,494,000, or approximately 1%, to $109,707,000 as of March 31, 2025 from $108,213,000 as of December 31, 2024. The Company had a strong liquidity ratio of 31% as of quarter end. The liquidity ratio excluding the available for sale securities portfolio was 13% providing the opportunity to sell excess funds at an attractive federal funds rate. The Company has access to multiple liquidity lines of credit through its correspondent banking relationships and the Federal Home Loan Bank. None of these contingency funding sources have been utilized over the past year.

Total liabilities as of March 31, 2025 were $956,624,000, down $8,984,000, or 1%, from $965,608,000 as of December 31, 2024 as deposits decreased $10,239,000, or 1%, to $940,680,000 during the first quarter of 2025. The number of deposit accounts grew by less than 1% during the first quarter of 2025. The Bank retains and acquires customer relationships through providing personalized service and utilization of a community bank approach while capitalizing on market disruption caused by further bank consolidation and large national bank branch closures.

Total stockholders’ equity as of March 31, 2025 was $81,523,000, an increase of $3,137,000, or 4%, compared to year-end 2024 and consisted primarily of $70,741,000 in retained earnings. The increase in equity is due to retained earnings and a decrease in unrealized losses associated with the Bank’s securities portfolio. Both the Company and Bank remain “well capitalized” per all regulatory definitions.

Annual Meeting of Shareholders

As a reminder, Pinnacle Bankshares Corporation’s Annual Meeting of Shareholders will be held at 11:00 AM Eastern Time on Tuesday, May 13, 2025, at Virginia Technical Institute located at 201 Ogden Road, Altavista VA 24517. Please plan to join us as we discuss the Company’s performance and direction moving forward.

Company Information

Pinnacle Bankshares Corporation is a locally managed community banking organization serving Central and Southern Virginia. The one-bank holding company of First National Bank serves market areas consisting primarily of all or portions of the Counties of Amherst, Bedford, Campbell, Halifax, and Pittsylvania, and the Cities of Charlottesville, Danville, and Lynchburg. The Company has a total of nineteen branches with one branch in Amherst County within the Town of Amherst, two branches in Bedford County; five branches in Campbell County, including two within the Town of Altavista, where the Bank was founded; one branch in the City of Charlottesville, three branches in the City of Danville; three branches in the City of Lynchburg; and three branches in Pittsylvania County, including one within the Town of Chatham. A Loan Production Office and a full-service branch have recently been opened in the South Boston area of Halifax County. First National Bank is in its 117^th year of operation.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Any statements contained herein that are not historical facts are forward-looking and are based on current assumptions and analysis by the Company. These forward-looking statements, including statements made in Mr. Hall’s quotes may include, but are not limited to, statements regarding the credit quality of our asset portfolio in future periods, the expected losses of nonperforming loans in future periods, returns and capital accretion during future periods, our cost of funds, the maintenance of our net interest margin, future operating results and business performance and our growth initiatives. Although we believe our plans and expectations reflected in these forward-looking statements are reasonable, our ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and we can give no assurance that these plans or expectations will be achieved. Factors that could cause actual results to differ materially from management’s expectations include, but are not limited to: changes in consumer spending and saving habits that may occur, including increased inflation; changes in general business, economic and market conditions; attracting, hiring, training, motivating and retaining qualified employees; changes in fiscal and monetary policies, and laws and regulations; changes in interest rates, inflation rates, deposit flows, loan demand and real estate values; changes in the quality or composition of the Company’s loan portfolio and the value of the collateral securing loans; changes in macroeconomic trends and uncertainty, including liquidity concerns at other financial institutions, and the potential for local and/or global economic recession; changes in demand for financial services in Pinnacle’s market areas; increased competition from both banks and non-banks in Pinnacle’s market areas; a deterioration in credit quality and/or a reduced demand for, or supply of, credit; increased information security risk, including cyber security risk, which may lead to potential business disruptions or financial losses; volatility in the securities markets generally, including in the value of securities in the Company’s securities portfolio or in the market price of Pinnacle common stock specifically; and other factors, which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. These risks and uncertainties should be considered in evaluating the forward-looking statements contained herein, and you should not place undue reliance on such statements, which reflect our views as of the date of this release.

Selected financial highlights are shown below.


Pinnacle Bankshares Corporation
Selected Financial Highlights
(3/31/2025 and 3/31/2024 results unaudited, 12/31/2024 results audited)
(In thousands, except ratios, share and per share data)

		3 Months Ended	3 Months Ended	3 Months Ended
Income Statement Highlights		3/31/2025	12/31/2024	3/31/2024
Interest Income	$12,375		$12,543	$11,184
Interest Expense		2,896	3,264	2,774
Net Interest Income		9,480	9,279	8,410
Provision for Credit Losses		37	356	18
Noninterest Income		1,745	2,681	1,623
Noninterest Expense		8,361	8,373	7,402
Net Income		2,261	2,800	2,084
Earnings Per Share (Basic)		1.02	1.27	0.95
Earnings Per Share (Diluted)		1.02	1.27	0.95

Balance Sheet Highlights		3/31/2025	12/31/2024	3/31/2024
Cash and Cash Equivalents	$109,707		$108,213	$88,502
Total Loans		720,482	711,918	651,593
Total Securities		157,564	175,816	180,196
Total Assets		1,038,147	1,043,994	1,000,006
Total Deposits		940,680	950,919	914,923
Total Liabilities		956,624	965,608	929,448
Stockholders’ Equity		81,523	78,386	70,558
Shares Outstanding		2,216,616	2,212,270	2,205,666

Ratios and Stock Price		3/31/2025	12/31/2024	3/31/2024
Gross Loan-to-Deposit Ratio		76.59%	74.87%	71.22%
Net Interest Margin (Year-to-date)		3.92%	3.70%	3.56%
Liquidity (Liquid assets to liabilities)		30.58%	32.60%	32.08%
Efficiency Ratio		74.45%	72.49%	73.64%
Return on Average Assets (ROA)		0.88%	0.92%	0.84%
Return on Average Equity (ROE)		11.31%	12.49%	12.02%
Leverage Ratio (Bank)		9.35%	9.21%	8.94%
Tier 1 Risk-based Capital Ratio (Bank)		12.94%	12.81%	12.93%
Total Risk-Based Capital Ratio (Bank)		13.65%	13.52%	13.61%
Stock Price	$31.94		$31.20	$28.46
Book Value	$36.78		$35.43	$31.99

Asset Quality Highlights		3/31/2025	12/31/2024	3/31/2024
Nonaccruing Loans	$988		$1,582	$1,270
Loans 90 Days or More Past Due & Accruing		0	0	0
Total Nonperforming Loans		988	1,582	1,270
Loan Modifications		109	109	350
Loans Individually Evaluated		1,097	2,010	1,981
Other Real Estate Owned (OREO) (Foreclosed Assets)		0	0	0
Total Nonperforming Assets		988	1,582	1,270
Nonperforming Loans to Total Loans		0.14%	0.22%	0.19%
Nonperforming Assets to Total Assets		0.10%	0.15%	0.13%
Allowance for Credit Losses	$5,131		$5,084	$4,484
Allowance for Credit Losses to Total Loans		0.71%	0.71%	0.69%
Allowance for Credit Losses to Nonperforming Loans		519%	321%	353%

CONTACT: Pinnacle Bankshares Corporation, Bryan M. Lemley, 434-477-5882 or bryanlemley@1stnatbk.com

The MIL Network –

April 30, 2025

MIL-OSI: Summit State Bank Earns $2.5 Million, or $0.37 Per Diluted Share, in First Quarter 2025

Source: GlobeNewswire (MIL-OSI)

SANTA ROSA, Calif., April 29, 2025 (GLOBE NEWSWIRE) — Summit State Bank (the “Bank”) (Nasdaq: SSBI) today reported net income of $2,494,000, or $0.37 per diluted share for the first quarter ended March 31, 2025, compared to net income of $1,395,000, or $0.21 per diluted share for the first quarter ended March 31, 2024.

“Our operating performance for the first quarter of 2025 was a significant improvement over the prior quarter, fueled by strong net interest income generation and net interest margin expansion,” said Brian Reed, President and CEO. “We are feeling positive about our earnings trajectory, as we have made significant progress in resolving problem loans which negatively impacted the Bank’s performance in 2024. While market volatility continues throughout the financial sector, we will remain consistent with our balance sheet management and operating procedures. Continued repricing of our deposit and loan portfolio is expected to have a positive impact on our net interest margin and financial results going forward.”

“We continue to focus on maintaining strong capital levels by strategically managing the balance sheet and suspending cash dividends,” said Reed. “As such, the Board determined it will also suspend cash dividends in the second quarter of 2025 so that we can continue to build capital, increase liquidity, and position the Bank to create long-term value for our shareholders.”

“Another highlight of the first quarter was the substantial decrease in problem loans and non-performing assets,” said Reed. “We have been aggressively pursuing solutions to problem loans and have reduced our non-performing loans by $10,307,000 during the first quarter of 2025 compared to the preceding quarter, and by $24,101,000 compared to a year ago. Additionally, we anticipate non-performing loans will be further reduced by $8,016,000 in the second quarter of 2025 as a result of loan payoffs from the sale of collateral that is currently under contract. These loans represent 46% of our $17,400,000 in non-performing loans. We are encouraged with our progress in resolving problem loans and will continue to make this a primary focus of the Bank.”

First Quarter 2025 Financial Highlights (at or for the three months ended March 31, 2025)

Net income was $2,494,000, or $0.37 per diluted share, compared to $1,395,000, or $0.21 per diluted share, in the first quarter of 2024 and a net loss of $7,142,000, or $1.06 loss per diluted share for the quarter ended December 31, 2024.
Net interest margin was 3.19% in the first quarter of 2025 compared to 2.81% in the first quarter of 2024 and 2.88% in the fourth quarter of 2024.
Non-performing assets decreased to $21,884,000 at March 31, 2025 compared to $41,548,000 in non-performing assets at March 31, 2024 and $32,191,000 at December 31, 2024.
Collateral relating to three of the non-performing loans to one borrower is under contract to sell in the second quarter of 2025 and the expected proceeds represent 46% or $8,016,000 of the remaining $17,447,000 of non-performing loans.
The Bank’s Tier 1 Leverage ratio increased to 9.45% at March 31, 2025 compared to 9.21% at March 31, 2024. This ratio remains well above the minimum of 5% required to be considered “well-capitalized” for regulatory capital purposes.
The Bank’s annualized return on average assets and annualized return on average equity for the first quarter of 2025 was 0.95% and 10.80%, respectively. This compared to annualized return on average assets and annualized return on average equity for the first quarter of 2024 of 0.51% and 5.74%, respectively.
The allowance for credit losses to total loans was 1.53% at March 31, 2025 compared to 1.66% one year earlier and 1.49% in the preceding quarter.
The Bank maintained strong total liquidity of $448,039,000, or 42.1% of total assets as of March 31, 2025. This includes on balance sheet liquidity (cash and equivalents and unpledged available-for-sale securities) of $141,145,000 or 13.3% of total assets, plus available borrowing capacity of $306,894,000 or 28.9% of total assets.
The Bank has been strategically managing its loan and deposit portfolios to reduce risk in the balance sheet and improve capital ratios. The Bank has been successful in reducing the size of its balance sheet as noted below:
- Net loans decreased 4% to $877,354,000 at March 31, 2025, compared to $917,685,000 one year earlier and decreased 3% compared to $905,075,000 in the fourth quarter of 2024.
- Total deposits increased 2% to $957,065,000 at March 31, 2025, compared to $939,202,000 at March 31, 2024, and decreased 1% when compared to the fourth quarter of 2024, at $962,562,000.
Book value was $14.07 per share, compared to $14.43 per share a year ago and $13.53 in the fourth quarter of 2024.

Operating Results

For the first quarter of 2025, the annualized return on average assets was 0.95% and the annualized return on average equity was 10.80%. This compared to an annualized return on average assets of 0.51% and an annualized return on average equity of 5.74%, respectively, for the first quarter of 2024.

“The 31 basis point improvement in our net interest margin during the first quarter of 2025, compared to the preceding quarter, was a result of lower cost of funds as well as higher loan yields as existing loans continue to reprice,” said Reed. “We anticipate additional improvement to our net interest margin over the next few quarters as time deposits and loans reprice.” The Bank’s net interest margin was 3.19% in the first quarter of 2025 compared to 2.81% in the first quarter of 2024 and 2.88% in fourth quarter of 2024.

Interest and dividend income increased 0.4% to $14,542,000 in the first quarter of 2025 compared to $14,477,000 in the first quarter of 2024. The increase in interest income is attributable to a $146,000 increase in interest and fees on loans, an increase of $115,000 in interest on deposits with banks offset by a $197,000 decrease in interest on investment securities.

Interest expense decreased 9% to $6,464,000 in the first quarter of 2025 compared to $7,070,000 in the first quarter of 2024. The decrease in interest expense is primarily attributable to a $498,000 decrease in interest expense on deposits resulting from lower cost of funds and a $150,000 decrease in interest expense on Federal Home Loan Bank advances due to decreased borrowing volume.

Noninterest income decreased in the first quarter of 2025 to $646,000 compared to $948,000 in the first quarter of 2024. The decrease is primarily attributed to the Bank recognizing $514,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2024 compared to $22,000 in gains on sales of SBA guaranteed loan balances in the first quarter of 2025.

“We have worked hard at implementing significant cost savings throughout the Bank to improve operating efficiencies,” said Reed. Operating expenses decreased in the first quarter of 2025 to $6,253,000 compared to $6,400,000 in the first quarter of 2024. The savings is primarily due to a decrease of $455,000 in salaries and employee benefits from an 8% reduction in force due to a cost savings initiative in the fourth quarter of 2024 offset by an increase in FDIC deposit insurance and stock appreciation rights expense in the first quarter of 2025.

Balance Sheet Review

During the first quarter of 2025, the Bank strategically managed its loan and deposit portfolios to reduce balance sheet risk and improve liquidity and capital ratios. As a result, net loans decreased 4% to $877,354,000 and total deposits increased 2% to $957,065,000 as of March 31, 2025 compared to March 31, 2024.

Net loans were $877,354,000 at March 31, 2025 compared to $917,685,000 at March 31, 2024, and decreased 3% compared to December 31, 2024. The Bank’s largest loan types are commercial real estate loans which make up 78% of the portfolio and loans “secured by farmland” totaling 8% of the portfolio. Of the commercial real estate total, approximately 33% or $222,334,000 is owner occupied and the remaining 67% or $443,684,000 is non-owner occupied. The Bank’s entire loan portfolio is well diversified between industries and product type. The office space product type totals $154,512,000 or 17% of the total loan portfolio; of this total owner occupied is $59,563,00 or 39% and non-owner occupied is $94,949,000 or 61%.
Total deposits were $957,065,000 at March 31, 2025 compared to $939,202,000 at March 31, 2024, and decreased 1% compared to the prior quarter end. At March 31, 2025, noninterest bearing demand deposit accounts increased 11% compared to a year ago and represented 21% of total deposits; savings, NOW and money market accounts decreased 10% compared to a year ago and represented 46% of total deposits, and CDs increased 17% compared to a year ago and comprised 33% of total deposits.

Shareholders’ equity was $95,341,000 at March 31, 2025, compared to $97,878,000 one year earlier and $91,723,000 three months earlier. The decrease in shareholders’ equity compared to a year ago was due to a reduction in retained earnings. At March 31, 2025 book value was $14.07 per share, compared to $13.53 three months earlier, and $14.43 at March 31, 2024.

The Bank’s Tier 1 Leverage ratio continues to exceed the minimum of 5% necessary to be categorized as “well-capitalized” for regulatory capital purposes. The Tier-1 leverage ratio for the first quarter of 2025 was 9.45%, an increase compared to 9.21% for the first quarter of 2024.

Credit Quality

Non-performing assets were $21,884,000, or 2.06% of total assets, at March 31, 2025. This compared to $32,191,000 in non-performing assets at December 31, 2024, and $41,548,000 in non-performing assets at March 31, 2024. Non-performing assets include $4,437,000 for one other real estate owned property at March 31, 2025 and December 31, 2024, compared to no other real estate owned property at March 31, 2024.

“While we are encouraged with the improvements in credit quality metrics, our primary focus remains on managing asset quality and reducing portfolio risk,” said Reed. “As of March 31, 2025, six loans to two borrowers totaling $16,047,000 or 92% of our non-performing loans are “secured by farmland,” a sector that has been hit hard by the current economic environment. Outside of these loans, the Bank holds a small portion, $54,714,000 or 6%, of its total loans in this industry and actively monitors the performance of these loans. Collateral relating to three of these loans to one borrower is under contract to sell during the second quarter of 2025 and represents 46% or $8,016,000 of the total non-performing loan portfolio.”

There was $509,000 in net recoveries during the three months ended March 31, 2025, compared to $8,343,000 in net charge-offs during the three months ended December 31, 2024 and net recoveries of $281,000 during the three months ended March 31, 2024.

For the first quarter of 2025, consistent with factors within the allowance for credit losses model, the Bank recorded a $577,000 reversal of credit loss expense for loans due to a $509,000 recovery received on a paid off loan previously charged-off, a $38,000 reversal of credit losses for unfunded loan commitments and a $13,000 reversal of credit losses on investments. This compared to a $15,000 reversal of credit loss expense on loans, a $65,000 reversal of credit losses on unfunded loan commitments and a $5,000 reversal of credit losses on investments in the first quarter of 2024. The allowance for credit losses to total loans was 1.53% on March 31, 2025, and 1.66% on March 31, 2024.

About Summit State Bank

Founded in 1982 and headquartered in Sonoma County, Summit State Bank is an award-winning community bank serving the North Bay. The Bank serves small businesses, nonprofits and the community, with total assets of $1.1 billion and total equity of $95 million as of March 31, 2025. The Bank has built its reputation over the past 40 years by specializing in providing exceptional customer service and customized financial solutions to aid in the success of its customers.

Summit State Bank is committed to embracing the diverse backgrounds, cultures and talents of its employees to create high performance and support the evolving needs of its customers and community it serves. Through the engagement of its team, Summit State Bank has received many esteemed awards including: Top Performing Community Bank by American Banker, Best Places to Work in the North Bay and Diversity in Business by North Bay Business Journal, Corporate Philanthropy Award by the San Francisco Business Times, and Hall of Fame by North Bay Biz Magazine. Summit State Bank’s stock is traded on the Nasdaq Global Market under the symbol SSBI. Further information can be found at www.summitstatebank.com.

Cautionary Note Regarding Preliminary Financial Results and Forward-looking Statements

The financial results in this release are preliminary and unaudited. Final audited financial results and other disclosures will be reported in Summit State Bank’s annual report on Form 10-Q for the period ended March 31, 2025, and may differ materially from the results and disclosures in this release due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information.

Except for historical information, the statements contained in this release, are forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are non-historical statements regarding management’s expectations and beliefs about the Bank’s future financial performance and financial condition and trends in its business and markets. Words such as “expects,” “anticipates,” “believes,” “estimates” and similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Examples of forward-looking statements include but are not limited to statements regarding future operating results, operating improvements, loans sales and resolutions, cost savings, insurance recoveries and dividends. The forward-looking statements in this release are based on current information and on assumptions about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond the Bank’s control. As a result of those risks and uncertainties, the Bank’s actual future results and outcomes could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this release. Those risks and uncertainties include, but are not limited to, the risk of incurring credit losses; the quality and quantity of deposits; the market for deposits, adverse developments in the financial services industry and any related impact on depositor behavior or investor sentiment; risks related to the sufficiency of the Bank’s liquidity; fluctuations in interest rates; governmental regulation and supervision; the risk that the Bank will not maintain growth at historic rates or at all; general economic conditions, either nationally or locally in the areas in which the Bank conducts its business; risks associated with changes in interest rates, which could adversely affect future operating results; the risk that customers or counterparties may not performance in accordance with the terms of credit documents or other agreements due a decline in credit worthiness, business conditions or other reasons;; adverse conditions in real estate markets; and the inherent uncertainty of expectations regarding litigation, insurance claims and the performance or resolution of loans. Additional information regarding these and other risks and uncertainties to which the Bank’s business and future financial performance are subject is contained in the Bank’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other documents the Bank files with the FDIC from time to time. Readers should not place undue reliance on the forward-looking statements, which reflect management’s views only as of the date of this release. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.


SUMMIT STATE BANK
STATEMENTS OF INCOME
(In thousands except earnings per share data)
			Three Months Ended
			March 31, 2025			December 31, 2024			March 31, 2024
			(Unaudited)			(Unaudited)			(Unaudited)

Interest and dividend income:
	Interest and fees on loans		$	13,420		$	13,623		$	13,274
	Interest on deposits with banks			477			655			362
	Interest on investment securities			515			530			712
	Dividends on FHLB stock			130			127			129
		Total interest and dividend income		14,542			14,935			14,477
Interest expense:
	Deposits			6,288			7,099			6,786
	Federal Home Loan Bank advances			40			6			190
	Junior subordinated debt			136			128			94
		Total interest expense		6,464			7,233			7,070
		Net interest income before provision for (reversal of) credit losses		8,078			7,702			7,407
(Reversal of) provision for credit losses on loans				(577	)		6,570			(15	)
(Reversal of) provision for credit losses on unfunded loan commitments				(38	)		154			(65	)
(Reversal of) credit losses on investments				(13	)		(2	)		(5	)
		Net interest income after provision for (reversal of) credit
		losses on loans, unfunded loan commitments and investments		8,706			980			7,492
Non-interest income:
	Service charges on deposit accounts			225			225			233
	Rental income			57			61			60
	Net gain on loan sales			22			857			514
	Net gain on securities			–			6			–
	Loss on valuation of other real estate owned			–			(693	)		–
	Other income			342			224			141
		Total non-interest income		646			680			948
Non-interest expense:
	Salaries and employee benefits			3,727			3,429			4,182
	Occupancy and equipment			421			413			485
	Goodwill impairment			–			4,119			–
	Other expenses			2,105			2,239			1,733
		Total non-interest expense		6,253			10,200			6,400
		Income (loss) before provision for income taxes		3,099			(8,540	)		2,040
Provision for income tax expense (benefit)				605			(1,398	)		645
		Net income (loss)	$	2,494		$	(7,142	)	$	1,395

Basic earnings (loss) per common share			$	0.37		$	(1.06	)	$	0.21
Diluted earnings (loss) per common share			$	0.37		$	(1.06	)	$	0.21

Basic weighted average shares of common stock outstanding				6,719			6,719			6,698
Diluted weighted average shares of common stock outstanding				6,719			6,719			6,698


SUMMIT STATE BANK
BALANCE SHEETS
(In thousands except share data)
				March 31, 2025			December 31, 2024			March 31, 2024
				(Unaudited)			(Audited)			(Unaudited)
ASSETS
Cash and due from banks				$	72,408		$	51,403		$	37,712
			Total cash and cash equivalents		72,408			51,403			37,712

Investment securities:
	Available-for-sale, less allowance for credit losses of $23, $36 and $53
		(at fair value; amortized cost of $79,827, $80,887 and $96,973)			68,737			68,228			83,832

Loans, less allowance for credit losses of $13,625, $13,693 and $15,487					877,354			905,075			917,685
Bank premises and equipment, net					5,057			5,155			5,287
Investment in Federal Home Loan Bank stock (FHLB), at cost					5,889			5,889			5,541
Goodwill					–			–			4,119
Other Real Estate Owned					4,437			4,437			–
Affordable housing tax credit investments					7,202			7,413			8,165
Accrued interest receivable and other assets					22,279			19,494			17,850

			Total assets	$	1,063,363		$	1,067,094		$	1,080,191

LIABILITIES AND
SHAREHOLDERS’ EQUITY
Deposits:
	Demand – non interest-bearing			$	198,736		$	185,756		$	179,328
	Demand – interest-bearing				192,764			193,355			222,313
	Savings				39,000			47,235			48,214
	Money market				212,900			226,879			222,153
	Time deposits that meet or exceed the FDIC insurance limit				93,154			70,717			65,763
	Other time deposits				220,511			238,620			201,431
			Total deposits		957,065			962,562			939,202

Federal Home Loan Bank advances					–			–			28,600
Junior subordinated debt					5,938			5,935			5,924
Affordable housing commitment					511			511			4,094
Accrued interest payable and other liabilities					4,508			6,363			4,493

			Total liabilities		968,022			975,371			982,313

Shareholders’ equity
	Preferred stock, no par value; 20,000,000 shares authorized;
		no shares issued and outstanding			–			–			–
	Common stock, no par value; shares authorized – 30,000,000 shares;
		issued and outstanding 6,776,563, 6,776,563 and 6,784,099			37,803			37,740			37,552
	Retained earnings				65,364			62,869			69,539
	Accumulated other comprehensive loss, net				(7,826	)		(8,886	)		(9,213	)

			Total shareholders’ equity		95,341			91,723			97,878

			Total liabilities and shareholders’ equity	$	1,063,363		$	1,067,094		$	1,080,191

Financial Summary
(Dollars in thousands except per share data)
	As of and for the
	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(Unaudited)			(Unaudited)			(Unaudited)
Statement of Income Data:
Net interest income	$	8,078		$	7,702		$	7,407
(Reversal of) provision for credit losses on loans		(577	)		6,570			(15	)
(Reversal of) provision for credit losses on unfunded loan commitments		(38	)		154			(65	)
(Reversal of) credit losses on investments		(13	)		(2	)		(5	)
Non-interest income		646			680			948
Non-interest expense		6,253			10,199			6,400
Provision for income tax expense (benefit)		605			(1,398	)		645
Net income (loss)	$	2,494		$	(7,141	)	$	1,395

Selected per Common Share Data:
Basic earnings (loss) per common share	$	0.37		$	(1.06	)	$	0.21
Diluted earnings (loss) per common share	$	0.37		$	(1.06	)	$	0.21
Dividend per share	$	–		$	–		$	0.12
Book value per common share (1)	$	14.07		$	13.53		$	14.43

Selected Balance Sheet Data:
Assets	$	1,063,363		$	1,067,094		$	1,080,191
Loans, net		877,354			905,075			917,685
Deposits		957,065			962,562			939,202
Average assets		1,059,902			1,098,885			1,087,960
Average earning assets		1,028,563			1,064,872			1,057,338
Average shareholders’ equity		93,620			101,307			97,471
Nonperforming loans		17,447			27,754			41,548
Net loans recovered (charged-off)		509			(8,343	)		281
Other real estate owned		4,437			4,437			–
Total nonperforming assets		21,884			32,191			41,548

Selected Ratios:
Return (loss) on average assets (2)		0.95	%		-2.59	%		0.51	%
Return (loss) on average common shareholders’ equity (2)		10.80	%		-28.04	%		5.74	%
Efficiency ratio (3)		71.68	%		121.76	%		76.60	%
Net interest margin (2)		3.18	%		2.88	%		2.81	%
Common equity tier 1 capital ratio		10.47	%		10.14	%		10.37	%
Tier 1 capital ratio		10.47	%		10.14	%		10.37	%
Total capital ratio		12.22	%		11.89	%		12.24	%
Tier 1 leverage ratio		9.45	%		8.87	%		9.21	%
Common dividend payout ratio (4)		0.00	%		0.00	%		58.27	%
Average shareholders’ equity to average assets		8.83	%		9.22	%		8.96	%
Nonperforming loans to total loans		1.96	%		3.02	%		4.45	%
Nonperforming assets to total assets		2.06	%		3.02	%		3.85	%
Allowance for credit losses to total loans		1.53	%		1.49	%		1.66	%
Allowance for credit losses to nonperforming loans		78.09	%		49.34	%		37.27	%

(1) Total shareholders’ equity divided by total common shares outstanding.
(2) Annualized.
(3) Non-interest expenses to net interest and non-interest income, net of securities gains.
(4) Common dividends divided by net income available for common shareholders.

Contact: Brian Reed, President and CEO, Summit State Bank (707) 568-4908

The MIL Network –

April 30, 2025

MIL-OSI: Riverview Bancorp Reports Net Income of $1.1 Million in Fourth Fiscal Quarter 2025 and $4.9 Million for Fiscal 2025

Source: GlobeNewswire (MIL-OSI)

FISCAL Q4 2025 HIGHLIGHTS


$1.1 Million	$0.05	$6.33	0.01%
Net Income	Diluted Earnings per Common Share	Tangible Book Value per Share	NPAs to Total Assets

Fiscal Quarter Comparison Highlights
Net Interest Income and Net Interest Margin	$9.2 million net interest income for the quarter compared to $8.6 million in Fiscal Q4 2024 Net interest margin at 2.65% for the quarter compared to 2.32% in Fiscal Q4 2024	Credit Quality	Non-performing assets at 0.01% of total assets and 0.01% of total loans – similar to year ago quarter No provision booked for the quarter and net recoveries were minimal

Non-Interest Income and Non-Interest Expense	Non-interest income of $3.7 million for the quarter compared to $494 thousand in Fiscal Q4 2024 (due to strategic investment restructure) Non-interest expense of $11.4 million for the quarter compared to $13.1 million in Fiscal Q4 2024	Shareholder Returns and Stock Activity	On April 25, 2025, the Company paid a cash dividend of $0.02 per share $2.0 million stock repurchase plan completed during the quarter

VANCOUVER, Wash., April 29, 2025 (GLOBE NEWSWIRE) — Riverview Bancorp, Inc. (Nasdaq GSM: RVSB) (“Riverview” or the “Company”) today reported earnings of $1.1 million, or $0.05 per diluted share, in the fourth fiscal quarter ended March 31, 2025, compared to $1.2 million, or $0.06 per diluted share, in the third fiscal quarter ended December 31, 2024. During the fourth fiscal quarter of 2024, Riverview strategically restructured a portion of its balance sheet resulting in an after-tax impact of $2.1 million and recorded $2.3 million in non-interest expense related to a litigation charge. Including the effects of the investment portfolio restructuring and litigation charge, Riverview reported a net loss of $3.0 million, or $0.14 per diluted share, in the fourth fiscal quarter ended March 31, 2024.

For fiscal 2025, net income was $4.9 million, or $0.23 per diluted share, compared to $3.8 million, or $0.18 per diluted share, for fiscal 2024.

“We closed out our fiscal fourth quarter and fiscal year end on solid footing despite the economic uncertainty and market volatility impacting all banks,” stated Nicole Sherman, President and Chief Executive Officer. “Riverview’s operating performance during the quarter once again reflected steady improvements, with net interest margin expansion as a result of stabilizing funding costs and higher loan yields compared to a year ago. Loan growth was strong during the quarter, and I am proud of our team’s relationship-focused approach to clients and prospects which resulted in loan production outperforming the previous four quarters. A top priority remains improving our operating performance while also being the bank of choice to our SW Washington and NW Oregon clients that we have served for over 100 years. With our strong capital levels, disciplined credit culture and stable balance sheet, we have a great foundation to build upon in fiscal 2026.

Riverview recently completed our three-year strategic plan focusing on profitable growth, digital leadership, and data empowerment, with our employees, clients, and communities being seen, heard, and valued in everything we do. We continue to expand revenue opportunities through our C&I, business banking, and treasury management initiatives. Strategic investments in people and technology will be important, while managing operating expenses. At Riverview we are unwavering in our dedication to exceed the needs of our employees, clients, shareholders and all stakeholders,” Sherman concluded.

Fourth Quarter Highlights (at or for the period ended March 31, 2025)

Net interest income was $9.2 million for the quarter, compared to $9.4 million in the preceding quarter and $8.6 million in the fourth fiscal quarter a year ago.
Net interest margin (“NIM”) was 2.65% for the quarter, a five basis point improvement compared to the preceding quarter and a 33 basis point improvement compared to the year ago quarter.
Riverview Trust Company assets under management were $877.9 million at March 31, 2025. Asset management fees continue to improve and increased to $1.5 million for the quarter ended March 31, 2025.
Asset quality remained strong, with non-performing assets at $155,000, or 0.01% of total assets at March 31, 2025.
Riverview recorded no provision for credit losses during the current quarter, the preceding quarter, or in the year ago quarter.
Tangible book value per share (non-GAAP) was $6.33 at March 31, 2025 compared to $6.20 at December 31, 2024.

Fiscal 2025 Highlights (at or for the period ended March 31, 2025)

Total loans increased to $1.06 billion at March 31, 2025 compared to $1.02 billion at March 31, 2024.
Total deposits were $1.23 billion at both March 31, 2025 and March 31, 2024.
Tangible book value per share (non-GAAP) was $6.33 at March 31, 2025 compared to $6.07 at March 31, 2024.
Net income increased to $4.9 million for the fiscal year ended March 31, 2025 compared to $3.8 million for the fiscal year ended March 31, 2024.
Return on average assets for the fiscal year ended March 31, 2025 increased to 0.32% compared to 0.24% for the fiscal year ended March 31, 2024.

Income Statement Review

Riverview’s net interest income was $9.2 million in the current quarter, compared to $9.4 million in the preceding quarter, and $8.6 million in the fourth fiscal quarter a year ago. The decrease compared to the preceding quarter was primarily due to the recognition of a loan prepayment fee and related loan fees totaling $318,000 during the preceding quarter. The increase compared to the year ago quarter was driven by higher interest earning asset yields due to higher origination rates on new loan growth as well as loan repricing. In fiscal 2025, net interest income was $36.3 million, compared to $38.1 million in fiscal 2024. The decrease is attributed to the increase in interest expense over the respective periods. Investment income decreased compared to the year ago period due to the strategic investment restructuring that was executed in the fourth quarter of fiscal 2024.

Riverview’s NIM was 2.65% for the fourth quarter of fiscal 2025, a five basis point increase compared to 2.60% in the preceding quarter and a 33 basis-point increase compared to 2.32% in the fourth quarter of fiscal 2024. “Our NIM improved during the quarter, compared to the preceding quarter, as the decrease in funding costs more than offset the modest decrease in asset yields. The preceding quarter’s loan yield included the favorable impact from the recognition of the previously mentioned loan prepayment fee and related loan fees,” said David Lam, EVP and Chief Financial Officer. “With the Federal Reserve rate reductions implemented near the end of 2024, we anticipate deposit costs to further stabilize in future quarters. Additionally, the rate cuts reduced the interest expense on borrowings, which also benefitted NIM during the fourth quarter.” In fiscal 2025, the net interest margin was 2.54% compared to 2.56% in fiscal 2024.

Investment securities decreased $14.7 million during the quarter to $322.5 million at March 31, 2025, compared to $337.2 million at December 31, 2024, and decreased $50.2 million compared to $372.7 million at March 31, 2024. The average securities balances for the quarters ended March 31, 2025, December 31, 2024, and March 31, 2024, were $346.0 million, $364.2 million, and $444.1 million, respectively. The weighted average yields on securities balances for those same periods were 1.84%, 1.82%, and 2.02%, respectively. The duration of the investment portfolio at March 31, 2025, was approximately 5.1 years. The anticipated investment cashflows over the next twelve months is approximately $37.4 million. There were no investment purchases during the fourth fiscal quarter of 2025.

Riverview’s yield on loans was 4.91% during the fourth fiscal quarter, compared to 4.97% in the preceding quarter, and 4.63% in the fourth fiscal quarter a year ago. “Loan yields declined during the current quarter compared to the prior quarter due to the impact on the loan yield in the prior quarter from the recognition of the loan prepayment and related loan fees. Compared to a year ago, loan yields have increased as a result of the current yield curve which has resulted in higher yields on loans when compared to the existing loan portfolio. We continue to explore opportunities to enhance our loan yield by expanding our commercial business portfolio offerings to include more variable rate loan structures,” said Mike Sventek, EVP and Chief Lending Officer. Deposit costs improved to 1.30% during the fourth fiscal quarter compared to 1.32% in the preceding quarter and increased compared to 1.00% in the fourth fiscal quarter a year ago. The increase from clients seeking higher deposit yields has moderated quarter over quarter compared to the increase from the fourth fiscal quarter a year ago given the relative change in the interest rate environment during those respective periods.

Non-interest income increased to $3.7 million during the fourth fiscal quarter of 2025 compared to $3.3 million in the preceding quarter and $494,000 in the fourth fiscal quarter of 2024. Non-interest income during the quarter included a $261,000 BOLI death benefit. The fourth fiscal quarter of 2024 included a $2.7 million loss on the sale of investment securities from the balance sheet restructure. In fiscal 2025, non-interest income increased to $14.3 million compared to $10.2 million in fiscal 2024.

Asset management fees were $1.5 million during the fourth fiscal quarter, compared to $1.4 million in both the third fiscal quarter and in the fourth fiscal quarter a year ago. Asset management fees from new client relationships more than offset a volatile market performance during the fourth fiscal quarter. Riverview Trust Company’s assets under management were $877.9 million at March 31, 2025, compared to $872.6 million at December 31, 2024, and $961.8 million at March 31, 2024.

Non-interest expense was $11.4 million during the fourth fiscal quarter, compared to $11.2 million in the preceding quarter and $13.1 million in the fourth fiscal quarter a year ago. Salary and employee benefits, the largest component of non-interest expense, increased during the current quarter compared to the preceding quarter due to open positions being filled. Professional fees increased during the current quarter compared to the preceding quarter due to higher consulting fees. The efficiency ratio was 88.7% for the fourth fiscal quarter, compared to 87.6% for the preceding quarter and 144.9% in the fourth fiscal quarter a year ago. In fiscal 2025, non-interest expense was $44.3 million compared to $43.7 million in fiscal 2024.

Riverview’s effective tax rate for the fourth fiscal quarter of 2025 was 21.5%, compared to 21.8% for the preceding quarter and (27.0)% for the year ago quarter.

Balance Sheet Review

Total loans increased $17.4 million during the quarter to $1.06 billion at March 31, 2025, compared to $1.05 billion three months earlier and increased $38.4 million compared to $1.02 billion a year earlier. Riverview’s loan pipeline was $41.1 million at March 31, 2025, compared to $49.1 million at the end of the preceding quarter and $18.4 million at March 31, 2024. New loan originations during the quarter increased to $49.4 million, compared to $31.1 million in the preceding quarter and $12.7 million in the fourth fiscal quarter a year ago.

Undisbursed construction loans totaled $18.2 million at March 31, 2025, compared to $19.5 million at December 31, 2024, with the majority of the undisbursed construction loans expected to be funded over the next several quarters. Undisbursed homeowner association loans for the purpose of common area maintenance and repairs totaled $18.3 million at March 31, 2025, compared to $14.5 million at December 31, 2024. Revolving commercial business loan commitments totaled $48.9 million at March 31, 2025, compared to $46.9 million at December 31, 2024. Utilization on these loans totaled 28.90% at March 31, 2025, compared to 17.60% at December 31, 2024. The weighted average rate on loan originations during the quarter was 7.16% compared to 7.04% in the preceding quarter. Loan repricing and maturities with respective weighted average rate for fiscal year 2026 totaled $76.6 million with a weighted average rate of 4.65%. Looking ahead, loan repricing and maturities for fiscal year 2027 total $77.1 million with a weighted average rate of 4.03%, for fiscal year 2028 total $96.2 million with a weighted average rate of 5.42% and in aggregate for fiscal years after 2028 total $108.3 million with a weighted average rate of 6.09%.

The office building loan portfolio totaled $110.9 million at March 31, 2025, compared to $113.4 million at December 31, 2024. The average loan balance of the office building loan portfolio was $1.5 million with an average loan-to-value ratio of 53.5% and an average debt service coverage ratio of 1.80x at March 31, 2025. Office building loans within the Portland core consist of two loans totaling $20.5 million which is approximately 18.5% of the total office building loan portfolio or 1.92% of total loans.

Non-interest checking and interest checking accounts, as a percentage of total deposits, totaled 48.7% at March 31, 2025, compared to 46.8% at December 31, 2024, and 51.9% at March 31, 2024. The increase during the quarter was in part due to Riverview Bank reciprocation of $20 million of balances back from Riverview Trust. Riverview Bank had moved customer deposits to Riverview Trust as a higher yielding deposit alternative and those assets were all retained within the Company during the period of increasing interest rates. CDs decreased during the quarter as Riverview allowed higher cost CDs to run off. Total deposits increased $13.3 million during the quarter to $1.23 billion at March 31, 2025, compared to $1.22 billion at December 31, 2024, and were unchanged compared to a year ago.

FHLB advances decreased $7.8 million during the quarter to $76.4 million at March 31, 2025, compared to $84.2 million at December 31, 2024. FHLB advances decreased during the quarter as a result of the increase in deposits.

Shareholders’ equity increased to $160.0 million at March 31, 2025, compared to $158.3 million three months earlier and $155.6 million one year earlier. Tangible book value per share (non-GAAP) increased to $6.33 at March 31, 2025, compared to $6.20 at December 31, 2024, and $6.07 at March 31, 2024. Riverview paid a quarterly cash dividend of $0.02 per share on April 25, 2025, to shareholders of record on April 14, 2025.

Credit Quality

“Asset quality remains a priority during uncertain economic conditions, and we continue to closely monitor our portfolio mix, loan growth, and local and national conditions to maintain an appropriate allowance,” said Robert Benke, EVP and Chief Credit Officer. Non-performing loans, excluding SBA and USDA government guaranteed loans (“government guaranteed loans”) (non-GAAP) totaled $155,000 or 0.01% of total loans as of March 31, 2025, compared to $168,000, or 0.02% of total loans at December 31, 2024, and $173,000, or 0.02% of total loans at March 31, 2024. There were no non-performing government guaranteed loans at March 31, 2025, and one non-performing government guaranteed loan totaling $301,000 at December 31, 2024. At March 31, 2025, non-performing assets were $155,000, or 0.01% of total assets.

Riverview recorded $22,000 in net loan recoveries for the current quarter. This compared to $114,000 in net loan charge-offs for the preceding quarter. Riverview recorded no provision for credit losses for the current quarter, or for the preceding quarter.

Classified assets were $2.9 million at March 31, 2025, compared to $226,000 at December 31, 2024, and $723,000 at March 31, 2024. The classified assets to total capital ratio was 1.6% at March 31, 2025, compared to 0.1% at December 31, 2024, and 0.4% a year earlier. The increase in classified assets during the quarter was primarily due to one $2.0 million loan for which a plan is in place to either return to performing status or payoff. Additionally, there was a borrowing relationship with two loans totaling $725,000 that credit administration is working with the borrower to bring current or seek full payoff. Criticized assets were $48.5 million at March 31 2024, compared to $50.4 million at December 31, 2024, and $36.7 million at March 31, 2024. Criticized assets decreased during the current quarter compared to the prior quarter as a result of one loan payoff. The increase compared to a year ago was primarily due to one relationship that was moved to the criticized asset category as the loans go through probate. The Company does not anticipate any loss from this relationship.

The allowance for credit losses was $15.4 million at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The allowance for credit losses represented 1.45% of total loans at March 31, 2025, compared to 1.47% at December 31, 2024, and 1.50% a year earlier. The allowance for credit losses to loans, net of government guaranteed loans (non-GAAP), was 1.51% at March 31, 2025, compared to 1.54% at December 31, 2024, and 1.58% a year earlier.

Capital/Liquidity

Riverview continues to maintain capital levels well in excess of the regulatory requirements to be categorized as “well capitalized” with a total risk-based capital ratio of 16.27% and a Tier 1 leverage ratio of 11.10% at March 31, 2025. Tangible common equity to average tangible assets ratio (non-GAAP) was 8.93% at March 31, 2025.

Riverview has approximately $471.3 million in available liquidity at March 31, 2025, including $174.0 million of borrowing capacity from the FHLB and $297.3 million from the Federal Reserve Bank of San Francisco (“FRB”). At March 31, 2025, the Bank had $76.4 million in outstanding FHLB borrowings.

The uninsured deposit ratio was 23.4% at March 31, 2025. Available liquidity under the FRB borrowing line would cover nearly 100% of the estimated uninsured deposits and available liquidity under both the FHLB and FRB borrowing lines would cover 163.7% of the estimated uninsured deposits.

On September 25, 2024, the Company’s Board of Directors adopted a stock repurchase program. Under this repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares of common stock, in the open market, based on prevailing market prices, or in privately negotiated transactions. Once the repurchase program is effective, the repurchase program will continue until the earlier of the completion of the repurchase or 12 months after the effective date, depending upon market conditions. During the fiscal fourth quarter, the Company repurchased 158,558 shares of common stock at an average price of $5.65. As of February 2, 2025, the Company had completed the full $2.0 million stock repurchase plan, repurchasing 358,631 shares at an average price of $5.53 per share.

Non-GAAP Financial Measures

In addition to results presented in accordance with generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. Management has presented these non-GAAP financial measures in this earnings release because it believes that they provide useful and comparative information to assess trends in Riverview’s core operations reflected in the current quarter’s results and facilitate the comparison of our performance with the performance of our peers. However, these non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP. Where applicable, comparable earnings information using GAAP financial measures is also presented. Because not all companies use the same calculations, our presentation may not be comparable to other similarly titled measures as calculated by other companies. For a reconciliation of these non-GAAP financial measures, see the tables below.

Tangible shareholders’ equity to tangible assets and tangible book value per share:

(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Shareholders’ equity (GAAP)	$	160,014		$	158,270		$	155,588
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(171	)		(196	)		(271	)
Tangible shareholders’ equity (non-GAAP)	$	132,767		$	130,998		$	128,241

Total assets (GAAP)	$	1,513,323		$	1,508,609		$	1,521,529
Exclude: Goodwill		(27,076	)		(27,076	)		(27,076	)
Exclude: Core deposit intangible, net		(171	)		(196	)		(271	)
Tangible assets (non-GAAP)	$	1,486,076		$	1,481,337		$	1,494,182

Shareholders’ equity to total assets (GAAP)		10.57	%		10.49	%		10.23	%

Tangible common equity to tangible assets (non-GAAP)		8.93	%		8.84	%		8.58	%

Shares outstanding		20,976,200			21,134,758			21,111,043

Book value per share (GAAP)		7.63			7.49			7.37

Tangible book value per share (non-GAAP)		6.33			6.20			6.07


Pre-tax, pre-provision income
	Three Months Ended									Twelve Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024

Net income (loss) (GAAP)	$	1,148		$	1,232		$	(2,968	)	$	4,903	$	3,799
Include: Provision (credit) for income taxes		314			343			(1,095	)		1,335		802
Include: Provision for credit losses		–			–			–			100		–
Pre-tax, pre-provision income (loss) (non-GAAP)	$	1,462		$	1,575		$	(4,063	)	$	6,338	$	4,601


Net income (loss) and earnings (loss) per share excluding securities restructure and litigation expense

	Three Months Ended									Twelve Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024

Net income (loss) (GAAP)	$	1,148		$	1,232		$	(2,968	)	$	4,903	$	3,799
Exclude impact of securities loss restructure, net of tax		–			–			2,074			–		2,074
Exclude impact of litigation expense, net of tax		–			–			1,748			–		1,748
Net income excluding securities restructure and litigation expense (non-GAAP)	$	1,148		$	1,232		$	854		$	4,903	$	7,621

Basic earnings (loss) per share (GAAP)	$	0.05		$	0.06		$	(0.14	)	$	0.23	$	0.18
Exclude impact of securities loss restructure, net of tax		–			–			0.10			–		0.10
Exclude impact of litigation expense, net of tax		–			–			0.08			–		0.08
Basic earnings per share excluding securities restructure and litigation expense (GAAP)	$	0.05		$	0.06		$	0.04		$	0.23	$	0.36

Diluted earnings (loss) per share (GAAP)	$	0.05		$	0.06		$	(0.14	)	$	0.23	$	0.18
Exclude impact of securities loss restructure, net of tax		–			–			0.10			–		0.10
Exclude impact of litigation expense, net of tax		–			–			0.08			–		0.08
Diluted earnings per share excluding securities restructure and litigation expense (GAAP)	$	0.05		$	0.06		$	0.04		$	0.23	$	0.36


Allowance for credit losses reconciliation, excluding Government Guaranteed loans

(Dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Allowance for credit losses	$	15,374		$	15,352		$	15,364

Loans receivable (GAAP)	$	1,062,460		$	1,045,109		$	1,024,013
Exclude: Government Guaranteed loans		(47,373	)		(49,024	)		(51,013	)
Loans receivable excluding Government Guaranteed loans (non-GAAP)	$	1,015,087		$	996,085		$	973,000

Allowance for credit losses to loans receivable (GAAP)		1.45	%		1.47	%		1.50	%

Allowance for credit losses to loans receivable excluding Government Guaranteed loans (non-GAAP)		1.51	%		1.54	%		1.58	%


Non-performing loans reconciliation, excluding Government Guaranteed Loans

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

Non-performing loans (GAAP)	$	155		$	469		$	178
Less: Non-performing Government Guaranteed loans		–			(301	)		(5	)
Adjusted non-performing loans excluding Government Guaranteed loans (non-GAAP)	$	155		$	168		$	173

Non-performing loans to total loans (GAAP)		0.01	%		0.04	%		0.02	%

Non-performing loans, excluding Government Guaranteed loans to total loans (non-GAAP)		0.01	%		0.02	%		0.02	%

Non-performing loans to total assets (GAAP)		0.01	%		0.03	%		0.01	%

Non-performing loans, excluding Government Guaranteed loans to total assets (non-GAAP)		0.01	%		0.01	%		0.01	%

About Riverview

Riverview Bancorp, Inc. (www.riverviewbank.com) is headquartered in Vancouver, Washington – just north of Portland, Oregon, on the I-5 corridor. With assets of $1.51 billion at March 31, 2025, it is the parent company of Riverview Bank, as well as Riverview Trust Company. The Bank offers true community banking services, focusing on providing the highest quality service and financial products to commercial, business and retail clients through 17 branches, including 13 in the Portland-Vancouver area, and 3 lending centers. For the past 11 years, Riverview has been named Best Bank by the readers of The Vancouver Business Journal and The Columbian.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements which include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions, future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession, the failure of the U.S. Congress to increase the debt ceiling, or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as supply chain disruptions, recent bank failures and any governmental or societal responses thereto; the credit risks of lending activities, including changes in the level and trend of loan delinquencies and write-offs and changes in the Company’s allowance for credit losses and provision for credit losses that may be impacted by deterioration in the housing and commercial real estate markets; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, the Company’s net interest margin and funding sources; the transition away from London Interbank Offered Rate toward new interest rate benchmarks; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in the Company’s market areas; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; results of examinations of the Bank by the Federal Deposit Insurance Corporation and the Washington State Department of Financial Institutions, Division of Banks, and of the Company by the Board of Governors of the Federal Reserve System, or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require the Company to increase its allowance for credit losses, write-down assets, reclassify its assets, change the Bank’s regulatory capital position or affect the Company’s ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; legislative or regulatory changes that adversely affect the Company’s business including changes in banking, securities and tax law, and in regulatory policies and principles, or the interpretation of regulatory capital or other rules; the Company’s ability to attract and retain deposits; the unexpected outflow of uninsured deposits that may require us to sell investment securities at a loss; the Company’s ability to control operating costs and expenses; the use of estimates in determining fair value of certain of the Company’s assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans on the Company’s consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect the Company’s workforce and potential associated charges; disruptions, security breaches or other adverse events, failures or interruptions in or attacks on our information technology systems or on the third-party vendors who perform several of our critical processing functions; the Company’s ability to retain key members of its senior management team; costs and effects of litigation, including settlements and judgments; the Company’s ability to implement its business strategies; the Company’s ability to successfully integrate any assets, liabilities, customers, systems, and management personnel it may acquire into its operations and the Company’s ability to realize related revenue synergies and cost savings within expected time frames; future goodwill impairment due to changes in Riverview’s business, changes in market conditions, or other factors; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; the Company’s ability to pay dividends on its common stock; the quality and composition of our securities portfolio and the impact of and adverse changes in the securities markets, including market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting standards; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other economic, competitive, governmental, regulatory, and technological factors affecting the Company’s operations, pricing, products and services, and the other risks described from time to time in our reports filed with and furnished to the U.S. Securities and Exchange Commission.

The Company cautions readers not to place undue reliance on any forward-looking statements. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements included in this report or the reasons why actual results could differ from those contained in such statements, whether as a result of new information or to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s consolidated financial condition and consolidated results of operations as well as its stock price performance.

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Balance Sheets


(In thousands, except share data) (Unaudited)	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS

Cash (including interest-earning accounts of $14,375, $12,573,	$	29,414		$	25,348		$	23,642
and $12,164)
Investment securities:
Available for sale, at estimated fair value		119,436			124,874			143,196
Held to maturity, at amortized cost		203,079			212,295			229,510
Loans receivable (net of allowance for credit losses of $15,374,
$15,352 and $15,364)		1,047,086			1,029,757			1,008,649
Prepaid expenses and other assets		12,523			12,945			14,469
Accrued interest receivable		4,525			4,639			4,415
Federal Home Loan Bank stock, at cost		4,342			4,742			4,927
Premises and equipment, net		22,304			22,731			21,718
Financing lease right-of-use assets		1,125			1,144			1,202
Deferred income taxes, net		8,625			9,471			9,778
Goodwill		27,076			27,076			27,076
Core deposit intangible, net		171			196			271
Bank owned life insurance		33,617			33,391			32,676

TOTAL ASSETS	$	1,513,323		$	1,508,609		$	1,521,529

LIABILITIES AND SHAREHOLDERS’ EQUITY

LIABILITIES:
Deposits	$	1,232,328		$	1,219,002		$	1,231,679
Accrued expenses and other liabilities		14,777			17,634			16,205
Advance payments by borrowers for taxes and insurance		614			317			581
Junior subordinated debentures		27,091			27,069			27,004
Federal Home Loan Bank advances		76,400			84,200			88,304
Finance lease liability		2,099			2,117			2,168
Total liabilities		1,353,309			1,350,339			1,365,941

SHAREHOLDERS’ EQUITY:
Serial preferred stock, $.01 par value; 250,000 authorized,
issued and outstanding, none		–			–			–
Common stock, $.01 par value; 50,000,000 authorized,
March 31, 2025 – 20,976,200 issued and outstanding;
December 31, 2024 – 21,134,758 issued and outstanding;		208			209			211
March 31, 2024 – 21,111,043 issued and outstanding;
Additional paid-in capital		53,392			54,227			55,005
Retained earnings		119,717			118,988			116,499
Accumulated other comprehensive loss		(13,303	)		(15,154	)		(16,127	)
Total shareholders’ equity		160,014			158,270			155,588

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,513,323		$	1,508,609		$	1,521,529

RIVERVIEW BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Income
	Three Months Ended							Twelve Months Ended
(In thousands, except share data) (Unaudited)	March 31, 2025		Dec. 31, 2024		March 31, 2024			March 31, 2025		March 31, 2024
INTEREST INCOME:
Interest and fees on loans receivable	$	12,685	$	13,201	$	11,743		$	50,621	$	46,031
Interest on investment securities – taxable		1,484		1,589		2,145			6,918		8,971
Interest on investment securities – nontaxable		64		65		65			260		261
Other interest and dividends		261		272		338			1,163		1,292
Total interest and dividend income		14,494		15,127		14,291			58,962		56,555

INTEREST EXPENSE:
Interest on deposits		3,910		4,101		3,021			15,313		8,285
Interest on borrowings		1,391		1,638		2,718			7,305		10,184
Total interest expense		5,301		5,739		5,739			22,618		18,469
Net interest income		9,193		9,388		8,552			36,344		38,086
Provision for credit losses		–		–		–			100		–

Net interest income after provision for credit losses		9,193		9,388		8,552			36,244		38,086

NON-INTEREST INCOME:
Fees and service charges		1,446		1,492		1,398			6,002		6,269
Asset management fees		1,472		1,443		1,408			5,906		5,328
Bank owned life insurance (“BOLI”)		226		225		222			941		891
BOLI death benefit in excess of cash surrender value		261		–		–			261		–
Loss on sale of investment securities		–		–		(2,729	)		–		(2,729	)
Other, net		302		181		195			1,146		483
Total non-interest income, net		3,707		3,341		494			14,256		10,242

NON-INTEREST EXPENSE:
Salaries and employee benefits		6,763		6,471		6,225			26,099		24,204
Occupancy and depreciation		1,873		1,871		1,942			7,560		6,872
Data processing		746		743		686			2,948		2,782
Amortization of core deposit intangible		25		25		27			100		108
Advertising and marketing		284		317		326			1,278		1,276
FDIC insurance premium		170		174		178			688		708
State and local taxes		265		327		196			1,042		1,010
Telecommunications		62		54		50			215		211
Professional fees		577		429		414			1,800		1,375
Other		673		743		3,065			2,532		5,181
Total non-interest expense		11,438		11,154		13,109			44,262		43,727

INCOME (LOSS) BEFORE INCOME TAXES		1,462		1,575		(4,063	)		6,238		4,601
PROVISION (CREDIT) FOR INCOME TAXES		314		343		(1,095	)		1,335		802
NET INCOME (LOSS)	$	1,148	$	1,232	$	(2,968	)	$	4,903	$	3,799

Earnings (loss) per common share:
Basic	$	0.05	$	0.06	$	(0.14	)	$	0.23	$	0.18
Diluted	$	0.05	$	0.06	$	(0.14	)	$	0.23	$	0.18
Weighted average number of common shares outstanding:
Basic		21,007,294		21,037,246		21,111,043			21,063,467		21,137,976
Diluted		21,007,294		21,037,246		21,111,043			21,063,467		21,139,322


(Dollars in thousands)	At or for the three months ended									At or for the twelve months ended
	March 31, 2025			Dec. 31, 2024			March 31, 2024			March 31, 2025		March 31, 2024
AVERAGE BALANCES
Average interest–earning assets	$	1,412,406		$	1,436,130		$	1,484,628		$	1,433,071	$	1,492,002
Average interest-bearing liabilities		1,011,116			1,019,265			1,047,712			1,010,592		1,028,042
Net average earning assets		401,290			416,865			436,916			422,479		463,960
Average loans		1,047,718			1,053,342			1,020,457			1,044,370		1,011,420
Average deposits		1,219,130			1,232,450			1,210,818			1,220,120		1,229,011
Average equity		159,766			160,532			158,776			158,570		156,137
Average tangible equity (non-GAAP)		132,506			133,245			131,413			131,271		128,733


ASSET QUALITY	March 31, 2025			Dec. 31, 2024			March 31, 2024

Non-performing loans	$	155		$	469		$	178
Non-performing loans excluding SBA Government Guarantee (non-GAAP)		155			168			173
Non-performing loans to total loans		0.01	%		0.04	%		0.02	%
Non-performing loans to total loans excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.02	%		0.02	%
Real estate/repossessed assets owned	$	–		$	–		$	–
Non-performing assets	$	155		$	469		$	178
Non-performing assets excluding SBA Government Guarantee (non-GAAP)		155			168			173
Non-performing assets to total assets		0.01	%		0.03	%		0.01	%
Non-performing assets to total assets excluding SBA Government Guarantee (non-GAAP)		0.01	%		0.01	%		0.01	%
Net loan charge-offs (recoveries) in the quarter	$	(22	)	$	114		$	(3	)
Net charge-offs (recoveries) in the quarter/average net loans		(0.01	)%		0.04	%		0.00	%

Allowance for credit losses	$	15,374		$	15,352		$	15,364
Average interest-earning assets to average
interest-bearing liabilities		139.69	%		140.90	%		141.70	%
Allowance for credit losses to
non-performing loans		9918.71	%		3273.35	%		8631.46	%
Allowance for credit losses to total loans		1.45	%		1.47	%		1.50	%
Shareholders’ equity to assets		10.57	%		10.49	%		10.23	%


CAPITAL RATIOS
Total capital (to risk weighted assets)		16.27	%		16.47	%		16.32	%
Tier 1 capital (to risk weighted assets)		15.01	%		15.21	%		15.06	%
Common equity tier 1 (to risk weighted assets)		15.01	%		15.21	%		15.06	%
Tier 1 capital (to average tangible assets)		11.10	%		10.86	%		10.29	%
Tangible common equity (to average tangible assets) (non-GAAP)		8.93	%		8.84	%		8.58	%


DEPOSIT MIX	March 31, 2025			Dec. 31, 2024			March 31, 2024

Interest checking	$	285,035		$	257,975		$	289,824
Regular savings		168,287			169,181			192,638
Money market deposit accounts		236,044			236,912			209,164
Non-interest checking		315,503			312,839			349,081
Certificates of deposit		227,459			242,095			190,972
Total deposits	$	1,232,328		$	1,219,002		$	1,231,679


COMPOSITION OF COMMERCIAL AND CONSTRUCTION LOANS

			Other				Commercial
	Commercial		Real Estate		Real Estate		& Construction
	Business		Mortgage		Construction		Total
March 31, 2025	(Dollars in thousands)
Commercial business	$	232,935	$	–	$	–	$	232,935
Commercial construction		–		–		18,368		18,368
Office buildings		–		110,949		–		110,949
Warehouse/industrial		–		114,925		–		114,925
Retail/shopping centers/strip malls		–		88,815		–		88,815
Assisted living facilities		–		358		–		358
Single purpose facilities		–		277,137		–		277,137
Land		–		4,610		–		4,610
Multi-family		–		91,452		–		91,452
One-to-four family construction		–		–		10,814		10,814
Total	$	232,935	$	688,246	$	29,182	$	950,363

March 31, 2024	(Dollars in thousands)
Commercial business	$	229,404	$	–	$	–	$	229,404
Commercial construction		–		–		20,388		20,388
Office buildings		–		114,714		–		114,714
Warehouse/industrial		–		106,649		–		106,649
Retail/shopping centers/strip malls		–		89,448		–		89,448
Assisted living facilities		–		378		–		378
Single purpose facilities		–		272,313		–		272,313
Land		–		5,692		–		5,692
Multi-family		–		70,771		–		70,771
One-to-four family construction		–		–		16,150		16,150
Total	$	229,404	$	659,965	$	36,538	$	925,907




LOAN MIX	March 31, 2025		Dec. 31, 2024		March 31, 2024
Commercial and construction	(Dollars in thousands)
Commercial business	$	232,935	$	224,506	$	229,404
Other real estate mortgage		688,246		657,380		659,965
Real estate construction		29,182		49,956		36,538
Total commercial and construction		950,363		931,842		925,907
Consumer
Real estate one-to-four family		97,683		97,760		96,366
Other installment		14,414		15,507		1,740
Total consumer		112,097		113,267		98,106

Total loans		1,062,460		1,045,109		1,024,013

Less:
Allowance for credit losses		15,374		15,352		15,364
Loans receivable, net	$	1,047,086	$	1,029,757	$	1,008,649


DETAIL OF NON-PERFORMING ASSETS
	Southwest
	Washington		Total
March 31, 2025	(Dollars in thousands)
Commercial business	$	37	$	37
Commercial real estate		88		88
Consumer		30		30
Total non-performing assets	$	155	$	155


	At or for the three months ended									At or for the twelve months ended
SELECTED OPERATING DATA	March 31, 2025			Dec. 31, 2024			March 31, 2024			March 31, 2025			March 31, 2024

Efficiency ratio (4)		88.67	%		87.63	%		144.91	%		87.47	%		90.48	%
Coverage ratio (6)		80.37	%		84.17	%		65.24	%		82.11	%		87.10	%
Return on average assets (1)		0.31	%		0.32	%		(0.76	)%		0.32	%		0.24	%
Return on average equity (1)		2.91	%		3.04	%		(7.52	)%		3.09	%		2.43	%
Return on average tangible equity (1) (non-GAAP)		3.51	%		3.67	%		(9.08	)%		3.74	%		2.95	%

NET INTEREST SPREAD
Yield on loans		4.91	%		4.97	%		4.63	%		4.85	%		4.55	%
Yield on investment securities		1.84	%		1.82	%		2.02	%		1.96	%		2.02	%
Total yield on interest-earning assets		4.17	%		4.18	%		3.88	%		4.12	%		3.80	%

Cost of interest-bearing deposits		1.76	%		1.81	%		1.41	%		1.74	%		0.97	%
Cost of FHLB advances and other borrowings		5.21	%		5.43	%		5.87	%		5.70	%		5.80	%
Total cost of interest-bearing liabilities		2.13	%		2.23	%		2.20	%		2.24	%		1.80	%

Spread (7)		2.04	%		1.95	%		1.68	%		1.88	%		2.00	%
Net interest margin		2.65	%		2.60	%		2.32	%		2.54	%		2.56	%

PER SHARE DATA
Basic earnings (loss) per share (2)	$	0.05		$	0.06		$	(0.14	)	$	0.23		$	0.18
Diluted earnings (loss) per share (3)		0.05			0.06			(0.14	)		0.23			0.18
Book value per share (5)		7.63			7.49			7.37			7.63			7.37
Tangible book value per share (5) (non-GAAP)		6.33			6.20			6.07			6.33			6.07
Market price per share:
High for the period	$	5.75		$	5.88		$	6.40		$	5.88		$	6.48
Low for the period		5.08			4.59			4.53			3.64			4.17
Close for period end		5.65			5.74			4.72			5.65			4.72
Cash dividends declared per share		0.0200			0.0200			0.0600			0.0800			0.2400

Average number of shares outstanding:
Basic (2)		21,007,294			21,037,246			21,111,043			21,063,467			21,137,976
Diluted (3)		21,007,294			21,037,246			21,111,043			21,063,467			21,139,322

(1) Amounts for the periods shown are annualized.
(2) Amounts exclude ESOP shares not committed to be released.
(3) Amounts exclude ESOP shares not committed to be released and include common stock equivalents.
(4) Non-interest expense divided by net interest income and non-interest income.
(5) Amounts calculated based on shareholders’ equity and include ESOP shares not committed to be released.
(6) Net interest income divided by non-interest expense.
(7) Yield on interest-earning assets less cost of funds on interest-bearing liabilities.

Contacts:

Nicole Sherman
David Lam
Riverview Bancorp, Inc. 360-693-6650

The MIL Network –

April 30, 2025

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

Source: GlobeNewswire (MIL-OSI)

First quarter net income of $21.5 million;
First quarter earnings per diluted common share of $0.71;
Annualized return on first quarter average assets of 1.03%;
Annualized return on first quarter average tangible common equity of 14.14%⁽¹⁾; and
Nonperforming assets remain low at 0.39% of total assets.

TYLER, Texas, April 29, 2025 (GLOBE NEWSWIRE) — Southside Bancshares, Inc. (“Southside” or the “Company”) (NYSE: SBSI) today reported its financial results for the quarter ended March 31, 2025. Southside reported net income of $21.5 million and earnings per diluted common share of $0.71 for both of the three month periods ended March 31, 2025 and 2024. The annualized return on average shareholders’ equity for the three months ended March 31, 2025 was 10.57%, compared to 11.02% for the same period in 2024. The annualized return on average assets was 1.03% for both of the three month periods ended March 31, 2025 and 2024.

“We are pleased to report financial results for the first quarter ended March 31, 2025, which included earnings per share of $0.71, a return on average assets of 1.03%, and a return on average tangible common equity of 14.14%,” stated Lee R. Gibson, Chief Executive Officer of Southside. “Linked quarter, the net interest margin increased three basis points to 2.86%, net interest income increased $145,000 to $53.9 million, and deposits net of public fund and brokered deposits increased $91.9 million. The linked quarter decrease in total loans was primarily due to payoffs exceeding original projections. Our loan pipeline is solid and we continue to anticipate mid-single-digit loan growth for 2025; however, it will likely be heavily weighted in the last half of the year.”

Operating Results for the Three Months Ended March 31, 2025

Net income was $21.5 million and earnings per diluted common share were $0.71 for both of the three month periods ended March 31, 2025 and 2024. Annualized returns on average assets and average shareholders’ equity for the three months ended March 31, 2025 were 1.03% and 10.57%, respectively, compared to 1.03% and 11.02%, respectively, for the three months ended March 31, 2024. Our efficiency ratio and tax-equivalent efficiency ratio⁽¹⁾ were 57.04% and 55.04%, respectively, for the three months ended March 31, 2025, compared to 57.95% and 55.54%, respectively, for the three months ended March 31, 2024, and 56.08% and 54.00%, respectively, for the three months ended December 31, 2024.

Net interest income for the three months ended March 31, 2025 was $53.9 million, an increase of $0.5 million, or 0.9%, compared to the same period in 2024. Linked quarter, net interest income increased $0.1 million, or 0.3%, compared to $53.7 million for the three months ended December 31, 2024. The increase in net interest income for both periods was due to the decrease in the average rate paid on interest bearing liabilities and the increase in the average balance of our interest earning assets, partially offset by the decrease in the average yield of interest earning assets and the increase in the average balance of our interest bearing liabilities.

Our net interest margin increased to 2.74% for the three months ended March 31, 2025, compared to 2.72% for the same period in 2024, while tax-equivalent net interest margin⁽¹⁾ was 2.86% for both of the three month periods ended March 31, 2025 and 2024. Linked quarter, net interest margin and tax-equivalent net interest margin⁽¹⁾ increased from 2.70% and 2.83%, respectively, for the three months ended December 31, 2024.

Noninterest income was $10.2 million for the three months ended March 31, 2025, an increase of $0.5 million, or 5.1%, compared to $9.7 million for the same period in 2024. The increase was primarily due to increases in gain on sale of loans and trust fees, partially offset by an increase in net loss on sale of securities available for sale (“AFS”). On a linked quarter basis, noninterest income decreased $2.1 million, or 16.8%, compared to the three months ended December 31, 2024. The decrease was primarily due to a decrease in other noninterest income, an increase in net loss on sale of securities AFS and a decrease in deposit services income. The decrease in other noninterest income was due to a decrease in swap fee income for the three months ended March 31, 2025.

Noninterest expense increased $0.2 million, or 0.6%, to $37.1 million for the three months ended March 31, 2025, compared to $36.9 million for the same period in 2024, due to increases in other noninterest expense and professional fees, partially offset by decreases in salaries and employee benefits expense and amortization of intangibles. On a linked quarter basis, noninterest expense decreased by $1.1 million, or 2.8%, compared to the three months ended December 31, 2024, due to decreases in salaries and employee benefits, net occupancy, other noninterest expense and professional fees.

Income tax expense increased $0.1 million, or 2.1%, for the three months ended March 31, 2025, compared to the same period in 2024. On a linked quarter basis, income tax expense increased $0.1 million, or 1.3%. Our effective tax rate (“ETR”) increased to 18.0% for the three months ended March 31, 2025, compared to 17.7% for the three months ended March 31, 2024, and increased from 17.6% for the three months ended December 31, 2024. The higher ETR for the three months ended March 31, 2025 compared to the same period in 2024, was primarily due to an increase in state income tax expense.

Balance Sheet Data

At March 31, 2025, Southside had $8.34 billion in total assets, compared to $8.35 billion at March 31, 2024, and $8.52 billion at December 31, 2024.

Loans at March 31, 2025 were $4.57 billion, a decrease of $10.1 million, or 0.2%, compared to $4.58 billion at March 31, 2024. Linked quarter, loans decreased $94.4 million, or 2.0%, due to decreases of $79.7 million in construction loans, $19.7 million in municipal loans, $2.5 million in commercial real estate loans and $1.9 million in loans to individuals. These decreases were partially offset by increases of $8.5 million in commercial loans and $1.0 million in 1-4 family residential loans.

Securities at March 31, 2025 were $2.74 billion, an increase of $24.2 million, or 0.9%, compared to $2.71 billion at March 31, 2024. Linked quarter, securities decreased $76.9 million, or 2.7%, from $2.81 billion at December 31, 2024.

Deposits at March 31, 2025 were $6.59 billion, an increase of $45.1 million, or 0.7%, compared to $6.55 billion at March 31, 2024. Linked quarter, deposits decreased $63.4 million, or 1.0%, from $6.65 billion at December 31, 2024.

At March 31, 2025, we had 178,840 total deposit accounts with an average balance of $34,000. Our estimated uninsured deposits were 40.0% of total deposits as of March 31, 2025. When excluding affiliate deposits (Southside-owned deposits) and public fund deposits (all collateralized), our total estimated deposits without insurance or collateral was 20.8% as of March 31, 2025. Our noninterest bearing deposits represent approximately 20.9% of total deposits. Linked quarter, our cost of interest bearing deposits decreased nine basis points from 2.92% in the prior quarter to 2.83%. Linked quarter, our cost of total deposits decreased five basis points from 2.31% in the prior quarter to 2.26%.

Our cost of interest bearing deposits decreased 14 basis points, from 2.97% for the three months ended March 31, 2024, to 2.83% for the three months ended March 31, 2025. Our cost of total deposits decreased 10 basis points, from 2.36% for the three months ended March 31, 2024, to 2.26% for the three months ended March 31, 2025.

Capital Resources and Liquidity

Our capital ratios and contingent liquidity sources remain solid. During the first quarter ended March 31, 2025, we did not purchase any common stock pursuant to our Stock Repurchase Plan. Under this plan, repurchases of our outstanding common stock may be carried out in open market purchases, privately negotiated transactions or pursuant to any trading plan that might be adopted in accordance with Rule 10b5-1 of The Securities Exchange Act of 1934, as amended. The Company has no obligation to repurchase any shares under the Stock Repurchase Plan and may modify, suspend or discontinue the plan at any time. Subsequent to March 31, 2025, and through April 25, 2025, we purchased 196,419 shares of common stock at an average price of $26.82 pursuant to the Stock Repurchase Plan.

As of March 31, 2025, our total available contingent liquidity, net of current outstanding borrowings, was $2.29 billion, consisting of FHLB advances, Federal Reserve Discount Window and correspondent bank lines of credit.

Asset Quality

Nonperforming assets at March 31, 2025 were $32.2 million, or 0.39% of total assets, an increase of $24.2 million, or 303.5%, compared to $8.0 million, or 0.10% of total assets, at March 31, 2024. Linked quarter, nonperforming assets increased $28.6 million, or 797.0%, from $3.6 million at December 31, 2024 due primarily to increases of $27.5 million in restructured loans and $1.1 million in nonaccrual loans. The increase in restructured loans was due to the extension of maturity on a $27.5 million commercial real estate loan to allow for an extended lease up period. Classified loans totaled $67.0 million on March 31, 2025, compared to $48.0 million on December 31, 2024, primarily due to the downgrade of a $17.9 million commercial real estate loan in the first quarter that paid off on April 4, 2025.

The allowance for loan losses totaled $44.6 million, or 0.98% of total loans, at March 31, 2025, compared to $44.9 million, or 0.96% of total loans, at December 31, 2024. The allowance for loan losses was $43.6 million, or 0.95% of total loans, at March 31, 2024. The increase in allowance as a percentage of total loans was primarily due to an increase in economic concerns forecasted in the CECL model, partially offset by a decrease in the loan portfolio due to payoffs.

For the three months ended March 31, 2025, we recorded a provision for credit losses for loans of $42,000, compared to a provision of $1.2 million and $1.6 million for the three months ended March 31, 2024 and December 31, 2024, respectively. Net charge-offs were $0.3 million for the three months ended March 31, 2025 and March 31, 2024, compared to net charge-offs of $1.0 million for the three months ended December 31, 2024.

We recorded a provision for credit losses on off-balance-sheet credit exposures of $0.7 million for the three months ended March 31, 2025, compared to a reversal of provision for credit losses on off-balance-sheet credit exposures $1.1 million and $0.2 million for the three months ended March 31, 2024 and December 31, 2024, respectively. The balance of the allowance for off-balance-sheet credit exposures was $3.8 million and $2.8 million at March 31, 2025 and 2024, respectively, and is included in other liabilities.

Dividend

Southside Bancshares, Inc. declared a first quarter cash dividend of $0.36 per share on February 6, 2025, which was paid on March 6, 2025, to all shareholders of record as of February 20, 2025.

_______________

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

Conference Call

Southside’s management team will host a conference call to discuss its first quarter ended March 31, 2025 financial results on Tuesday, April 29, 2025 at 11:00 a.m. CDT. The conference call can be accessed by webcast, for listen-only mode, on the company website, https://investors.southside.com, under Events.

Those interested in participating in the question and answer session, or others who prefer to call-in, can register at https://register-conf.media-server.com/register/BI1a8ec95cd2734970adaf83fadfc7f01d to receive the dial-in number and unique code to access the conference call seamlessly. While not required, it is recommended that those wishing to participate, register 10 minutes prior to the conference call to ensure a more efficient registration process.

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

Non-GAAP Financial Measures

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

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

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

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

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

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

About Southside Bancshares, Inc.

Southside Bancshares, Inc. is a bank holding company with approximately $8.34 billion in assets as of March 31, 2025, that owns 100% of Southside Bank. Southside Bank currently has 53 branches in Texas and operates a network of 73 ATMs/ITMs.

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

Forward-Looking Statements

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

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


Southside Bancshares, Inc. Consolidated Financial Summary (Unaudited) (Dollars in thousands)

	As of
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
ASSETS
Cash and due from banks	$	103,359		$	91,409		$	130,147		$	114,283		$	96,744
Interest earning deposits		293,364			281,945			333,825			272,469			307,257
Federal funds sold		34,248			52,807			22,325			65,244			65,372
Securities available for sale, at estimated fair value		1,457,939			1,533,894			1,408,437			1,405,944			1,405,221
Securities held to maturity, at net carrying value		1,278,330			1,279,234			1,288,403			1,305,975			1,306,898
Total securities		2,736,269			2,813,128			2,696,840			2,711,919			2,712,119
Federal Home Loan Bank stock, at cost		34,208			33,818			40,291			32,991			27,958
Loans held for sale		903			1,946			768			1,352			756
Loans		4,567,239			4,661,597			4,578,048			4,589,365			4,577,368
Less: Allowance for loan losses		(44,623	)		(44,884	)		(44,276	)		(42,407	)		(43,557	)
Net loans		4,522,616			4,616,713			4,533,772			4,546,958			4,533,811
Premises & equipment, net		142,245			141,648			138,811			138,489			139,491
Goodwill		201,116			201,116			201,116			201,116			201,116
Other intangible assets, net		1,531			1,754			2,003			2,281			2,588
Bank owned life insurance		137,962			138,313			137,489			136,903			136,604
Other assets		135,479			142,851			124,876			133,697			130,047
Total assets	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863

LIABILITIES AND SHAREHOLDERS’ EQUITY
Noninterest bearing deposits	$	1,379,641		$	1,357,152		$	1,377,022		$	1,366,924		$	1,358,827
Interest bearing deposits		5,211,210			5,297,096			5,058,680			5,129,008			5,186,933
Total deposits		6,590,851			6,654,248			6,435,702			6,495,932			6,545,760
Other borrowings and Federal Home Loan Bank borrowings		691,417			808,352			865,856			763,700			770,151
Subordinated notes, net of unamortized debt issuance costs		92,078			92,042			92,006			91,970			93,913
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,276			60,274			60,273			60,272			60,271
Other liabilities		92,055			90,590			103,172			144,858			95,846
Total liabilities		7,526,677			7,705,506			7,557,009			7,556,732			7,565,941
Shareholders’ equity		816,623			811,942			805,254			800,970			787,922
Total liabilities and shareholders’ equity	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Income Statement:
Total interest and dividend income	$	100,288		$	101,689		$	105,703		$	104,186		$	102,758
Total interest expense		46,436			47,982			50,239			50,578			49,410
Net interest income		53,852			53,707			55,464			53,608			53,348
Provision for (reversal of) credit losses		758			1,384			2,389			(485	)		58
Net interest income after provision for (reversal of) credit losses		53,094			52,323			53,075			54,093			53,290
Noninterest income
Deposit services		5,829			6,084			6,199			6,157			5,985
Net gain (loss) on sale of securities available for sale		(554	)		—			(1,929	)		(563	)		(18	)
Gain (loss) on sale of loans		55			138			115			220			(436	)
Trust fees		1,765			1,773			1,628			1,456			1,336
Bank owned life insurance		799			848			857			1,767			784
Brokerage services		1,120			1,054			1,068			1,081			1,014
Other		1,209			2,384			233			1,439			1,059
Total noninterest income		10,223			12,281			8,171			11,557			9,724
Noninterest expense
Salaries and employee benefits		22,382			22,960			22,233			21,984			23,113
Net occupancy		3,404			3,629			3,613			3,750			3,362
Advertising, travel & entertainment		924			884			734			795			950
ATM expense		378			378			412			368			325
Professional fees		1,520			1,645			1,206			1,075			1,154
Software and data processing		2,839			2,931			2,951			2,860			2,856
Communications		383			320			423			410			449
FDIC insurance		947			931			939			977			943
Amortization of intangibles		223			249			278			307			337
Other		4,089			4,232			3,543			3,239			3,392
Total noninterest expense		37,089			38,159			36,332			35,765			36,881
Income before income tax expense		26,228			26,445			24,914			29,885			26,133
Income tax expense		4,721			4,659			4,390			5,212			4,622
Net income	$	21,507		$	21,786		$	20,524		$	24,673		$	21,511

Common Share Data:
Weighted-average basic shares outstanding		30,390			30,343			30,286			30,280			30,262
Weighted-average diluted shares outstanding		30,483			30,459			30,370			30,312			30,305
Common shares outstanding end of period		30,410			30,379			30,308			30,261			30,284
Earnings per common share
Basic	$	0.71		$	0.72		$	0.68		$	0.81		$	0.71
Diluted		0.71			0.71			0.68			0.81			0.71
Book value per common share		26.85			26.73			26.57			26.47			26.02
Tangible book value per common share		20.19			20.05			19.87			19.75			19.29
Cash dividends paid per common share		0.36			0.36			0.36			0.36			0.36

Selected Performance Ratios:
Return on average assets		1.03	%		1.03	%		0.98	%		1.19	%		1.03	%
Return on average shareholders’ equity		10.57			10.54			10.13			12.46			11.02
Return on average tangible common equity ⁽¹⁾		14.14			14.12			13.69			16.90			15.07
Average yield on earning assets (FTE) ⁽¹⁾		5.23			5.24			5.51			5.45			5.38
Average rate on interest bearing liabilities		3.03			3.12			3.28			3.32			3.22
Net interest margin (FTE) ⁽¹⁾		2.86			2.83			2.95			2.87			2.86
Net interest spread (FTE) ⁽¹⁾		2.20			2.12			2.23			2.13			2.16
Average earning assets to average interest bearing liabilities		128.10			129.55			128.51			128.62			127.71
Noninterest expense to average total assets		1.78			1.80			1.73			1.72			1.77
Efficiency ratio (FTE) ⁽¹⁾		55.04			54.00			51.90			52.71			55.54

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


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Nonperforming Assets:	$	32,193		$	3,589		$	7,656		$	6,918		$	7,979
Nonaccrual loans		4,254			3,185			7,254			6,110			7,709
Accruing loans past due more than 90 days		—			—			—			—			—
Restructured loans		27,505			2			—			145			151
Other real estate owned		388			388			388			648			119
Repossessed assets		46			14			14			15			—

Asset Quality Ratios:
Ratio of nonaccruing loans to:
Total loans		0.09	%		0.07	%		0.16	%		0.13	%		0.17	%
Ratio of nonperforming assets to:
Total assets		0.39			0.04			0.09			0.08			0.10
Total loans		0.70			0.08			0.17			0.15			0.17
Total loans and OREO		0.70			0.08			0.17			0.15			0.17
Ratio of allowance for loan losses to:
Nonaccruing loans		1,048.97			1,409.23			610.37			694.06			565.01
Nonperforming assets		138.61			1,250.60			578.32			613.00			545.90
Total loans		0.98			0.96			0.97			0.92			0.95
Net charge-offs (recoveries) to average loans outstanding		0.03			0.08			0.04			0.02			0.03

Capital Ratios:
Shareholders’ equity to total assets		9.79			9.53			9.63			9.58			9.43
Common equity tier 1 capital		13.44			13.04			13.07			12.72			12.43
Tier 1 risk-based capital		14.49			14.07			14.12			13.76			13.47
Total risk-based capital		17.01			16.49			16.59			16.16			15.92
Tier 1 leverage capital		9.73			9.67			9.61			9.40			9.22
Period end tangible equity to period end tangible assets ⁽¹⁾		7.54			7.33			7.38			7.33			7.17
Average shareholders’ equity to average total assets		9.75			9.76			9.67			9.52			9.35

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


Southside Bancshares, Inc. Consolidated Financial Highlights (Unaudited) (Dollars in thousands)

	Three Months Ended
		2025			2024
Loan Portfolio Composition	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Real Estate Loans:
Construction	$	458,101		$	537,827		$	585,817		$	546,040		$	599,464
1-4 Family Residential		741,432			740,396			755,406			738,037			720,508
Commercial		2,577,229			2,579,735			2,422,612			2,472,771			2,413,345
Commercial Loans		371,643			363,167			358,854			359,807			358,053
Municipal Loans		371,271			390,968			402,041			416,986			427,225
Loans to Individuals		47,563			49,504			53,318			55,724			58,773
Total Loans	$	4,567,239		$	4,661,597		$	4,578,048		$	4,589,365		$	4,577,368

Summary of Changes in Allowances:
Allowance for Securities Held to Maturity
Balance at beginning of period	$	—		$	—		$	—		$	—		$	—
Provision for (reversal of) securities held to maturity		64			—			—			—			—
Balance at end of period	$	64		$	—		$	—		$	—		$	—

Allowance for Loan Losses
Balance at beginning of period	$	44,884		$	44,276		$	42,407		$	43,557		$	42,674
Loans charged-off		(613	)		(1,232	)		(773	)		(721	)		(634	)
Recoveries of loans charged-off		310			277			365			444			347
Net loans (charged-off) recovered		(303	)		(955	)		(408	)		(277	)		(287	)
Provision for (reversal of) loan losses		42			1,563			2,277			(873	)		1,170
Balance at end of period	$	44,623		$	44,884		$	44,276		$	42,407		$	43,557

Allowance for Off-Balance-Sheet Credit Exposures
Balance at beginning of period	$	3,141		$	3,320		$	3,208		$	2,820		$	3,932
Provision for (reversal of) off-balance-sheet credit exposures		652			(179	)		112			388			(1,112	)
Balance at end of period	$	3,793		$	3,141		$	3,320		$	3,208		$	2,820
Total Allowance for Credit Losses	$	48,480		$	48,025		$	47,596		$	45,615		$	46,377

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


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	March 31, 2025							December 31, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾		Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,625,902		$	68,160	5.98	%	$	4,604,175		$	70,155	6.06	%
Loans held for sale		752			11	5.93	%		1,562			23	5.86	%
Securities:
Taxable investment securities ⁽²⁾		749,155			6,363	3.44	%		784,321			6,949	3.52	%
Tax-exempt investment securities ⁽²⁾		1,134,590			10,253	3.66	%		1,138,271			10,793	3.77	%
Mortgage-backed and related securities ⁽²⁾		1,041,038			13,523	5.27	%		1,031,187			12,043	4.65	%
Total securities		2,924,783			30,139	4.18	%		2,953,779			29,785	4.01	%
Federal Home Loan Bank stock, at cost, and equity investments		43,285			483	4.53	%		37,078			591	6.34	%
Interest earning deposits		319,889			3,370	4.27	%		273,656			3,160	4.59	%
Federal funds sold		43,813			478	4.42	%		43,121			508	4.69	%
Total earning assets		7,958,424			102,641	5.23	%		7,913,371			104,222	5.24	%
Cash and due from banks		89,703							102,914
Accrued interest and other assets		457,948							454,387
Less: Allowance for loan losses		(45,105	)						(44,418	)
Total assets	$	8,460,970						$	8,426,254
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	593,953			1,429	0.98	%	$	594,196			1,456	0.97	%
Certificates of deposit		1,336,815			14,406	4.37	%		1,187,800			13,537	4.53	%
Interest bearing demand accounts		3,406,342			21,412	2.55	%		3,459,122			23,468	2.70	%
Total interest bearing deposits		5,337,110			37,247	2.83	%		5,241,118			38,461	2.92	%
Federal Home Loan Bank borrowings		614,897			5,837	3.85	%		572,993			5,557	3.86	%
Subordinated notes, net of unamortized debt issuance costs		92,060			932	4.11	%		92,024			945	4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,275			1,014	6.82	%		60,274			1,095	7.23	%
Repurchase agreements		75,291			666	3.59	%		80,891			782	3.85	%
Other borrowings		33,061			740	9.08	%		61,196			1,142	7.42	%
Total interest bearing liabilities		6,212,694			46,436	3.03	%		6,108,496			47,982	3.12	%
Noninterest bearing deposits		1,334,933							1,383,204
Accrued expenses and other liabilities		88,450							112,320
Total liabilities		7,636,077							7,604,020
Shareholders’ equity		824,893							822,234
Total liabilities and shareholders’ equity	$	8,460,970						$	8,426,254
Net interest income (FTE)				$	56,205						$	56,240
Net interest margin (FTE)						2.86	%						2.83	%
Net interest spread (FTE)						2.20	%						2.12	%

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

Note: As of March 31, 2025 and December 31, 2024, loans totaling $4.3 million and $3.2 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	September 30, 2024							June 30, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾		Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,613,028		$	72,493	6.25	%	$	4,595,980		$	70,293	6.15	%
Loans held for sale		871			11	5.02	%		1,489			24	6.48	%
Securities:
Taxable investment securities ⁽²⁾		791,914			7,150	3.59	%		783,856			7,009	3.60	%
Tax-exempt investment securities ⁽²⁾		1,174,445			11,825	4.01	%		1,254,097			12,761	4.09	%
Mortgage-backed and related securities ⁽²⁾		886,325			11,976	5.38	%		830,504			11,084	5.37	%
Total securities		2,852,684			30,951	4.32	%		2,868,457			30,854	4.33	%
Federal Home Loan Bank stock, at cost, and equity investments		41,159			582	5.63	%		40,467			573	5.69	%
Interest earning deposits		281,313			3,798	5.37	%		300,047			4,105	5.50	%
Federal funds sold		33,971			488	5.71	%		75,479			1,021	5.44	%
Total earning assets		7,823,026			108,323	5.51	%		7,881,919			106,870	5.45	%
Cash and due from banks		100,578							110,102
Accrued interest and other assets		455,091							424,323
Less: Allowance for loan losses		(42,581	)						(43,738	)
Total assets	$	8,336,114						$	8,372,606
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	598,116			1,490	0.99	%	$	604,753			1,454	0.97	%
Certificates of deposit		1,087,613			12,647	4.63	%		1,020,099			11,630	4.59	%
Interest bearing demand accounts		3,409,911			24,395	2.85	%		3,513,068			25,382	2.91	%
Total interest bearing deposits		5,095,640			38,532	3.01	%		5,137,920			38,466	3.01	%
Federal Home Loan Bank borrowings		618,708			6,488	4.17	%		606,851			6,455	4.28	%
Subordinated notes, net of unamortized debt issuance costs		91,988			937	4.05	%		92,017			936	4.09	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,273			1,180	7.79	%		60,271			1,171	7.81	%
Repurchase agreements		83,297			899	4.29	%		88,007			955	4.36	%
Other borrowings		137,482			2,203	6.37	%		143,169			2,595	7.29	%
Total interest bearing liabilities		6,087,388			50,239	3.28	%		6,128,235			50,578	3.32	%
Noninterest bearing deposits		1,344,165							1,346,274
Accrued expenses and other liabilities		98,331							101,399
Total liabilities		7,529,884							7,575,908
Shareholders’ equity		806,230							796,698
Total liabilities and shareholders’ equity	$	8,336,114						$	8,372,606
Net interest income (FTE)				$	58,084						$	56,292
Net interest margin (FTE)						2.95	%						2.87	%
Net interest spread (FTE)						2.23	%						2.13	%

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

Note: As of September 30, 2024 and June 30, 2024, loans totaling $7.3 million and $6.1 million, respectively, were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.


Southside Bancshares, Inc. Average Balances and Average Yields and Rates (Annualized) (Unaudited) (Dollars in thousands)

	Three Months Ended
	March 31, 2024
	Average Balance			Interest		Average Yield/Rate ⁽³⁾
ASSETS
Loans ⁽¹⁾	$	4,559,602		$	68,849	6.07	%
Loans held for sale		8,834			18	0.82	%
Securities:
Taxable investment securities ⁽²⁾		780,423			6,967	3.59	%
Tax-exempt investment securities ⁽²⁾		1,285,922			13,168	4.12	%
Mortgage-backed and related securities ⁽²⁾		764,713			10,119	5.32	%
Total securities		2,831,058			30,254	4.30	%
Federal Home Loan Bank stock, at cost, and equity investments		40,063			333	3.34	%
Interest earning deposits		380,181			5,202	5.50	%
Federal funds sold		62,599			838	5.38	%
Total earning assets		7,882,337			105,494	5.38	%
Cash and due from banks		114,379
Accrued interest and other assets		441,783
Less: Allowance for loan losses		(42,973	)
Total assets	$	8,395,526
LIABILITIES AND SHAREHOLDERS’ EQUITY
Savings accounts	$	604,529			1,424	0.95	%
Certificates of deposit		941,947			10,341	4.42	%
Interest bearing demand accounts		3,634,936			26,433	2.92	%
Total interest bearing deposits		5,181,412			38,198	2.97	%
Federal Home Loan Bank borrowings		607,033			5,950	3.94	%
Subordinated notes, net of unamortized debt issuance costs		93,895			956	4.10	%
Trust preferred subordinated debentures, net of unamortized debt issuance costs		60,270			1,175	7.84	%
Repurchase agreements		92,177			967	4.22	%
Other borrowings		137,287			2,164	6.34	%
Total interest bearing liabilities		6,172,074			49,410	3.22	%
Noninterest bearing deposits		1,338,384
Accrued expenses and other liabilities		100,014
Total liabilities		7,610,472
Shareholders’ equity		785,054
Total liabilities and shareholders’ equity	$	8,395,526
Net interest income (FTE)				$	56,084
Net interest margin (FTE)						2.86	%
Net interest spread (FTE)						2.16	%

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

Note: As of March 31, 2024, loans totaling $7.7 million were on nonaccrual status. Our policy is to reverse previously accrued but unpaid interest on nonaccrual loans; thereafter, interest income is recorded to the extent received when appropriate.

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


Southside Bancshares, Inc. Non-GAAP Reconciliation (Unaudited) (Dollars and shares in thousands, except per share data)

	Three Months Ended
		2025			2024
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
Reconciliation of return on average common equity to return on average tangible common equity:
Net income	$	21,507		$	21,786		$	20,524		$	24,673		$	21,511
After-tax amortization expense		176			196			220			243			266
Adjusted net income available to common shareholders	$	21,683		$	21,982		$	20,744		$	24,916		$	21,777

Average shareholders’ equity	$	824,893		$	822,234		$	806,230		$	796,698		$	785,054
Less: Average intangibles for the period		(202,784	)		(203,020	)		(203,288	)		(203,581	)		(203,910	)
Average tangible shareholders’ equity	$	622,109		$	619,214		$	602,942		$	593,117		$	581,144

Return on average tangible common equity		14.14	%		14.12	%		13.69	%		16.90	%		15.07	%

Reconciliation of book value per share to tangible book value per share:
Common equity at end of period	$	816,623		$	811,942		$	805,254		$	800,970		$	787,922
Less: Intangible assets at end of period		(202,647	)		(202,870	)		(203,119	)		(203,397	)		(203,704	)
Tangible common shareholders’ equity at end of period	$	613,976		$	609,072		$	602,135		$	597,573		$	584,218

Total assets at end of period	$	8,343,300		$	8,517,448		$	8,362,263		$	8,357,702		$	8,353,863
Less: Intangible assets at end of period		(202,647	)		(202,870	)		(203,119	)		(203,397	)		(203,704	)
Tangible assets at end of period	$	8,140,653		$	8,314,578		$	8,159,144		$	8,154,305		$	8,150,159

Period end tangible equity to period end tangible assets		7.54	%		7.33	%		7.38	%		7.33	%		7.17	%

Common shares outstanding end of period		30,410			30,379			30,308			30,261			30,284
Tangible book value per common share	$	20.19		$	20.05		$	19.87		$	19.75		$	19.29

Reconciliation of efficiency ratio to efficiency ratio (FTE), net interest margin to net interest margin (FTE) and net interest spread to net interest spread (FTE):
Net interest income (GAAP)	$	53,852		$	53,707		$	55,464		$	53,608		$	53,348
Tax-equivalent adjustments:
Loans		581			598			608			633			656
Tax-exempt investment securities		1,772			1,935			2,012			2,051			2,080
Net interest income (FTE) ⁽¹⁾		56,205			56,240			58,084			56,292			56,084
Noninterest income		10,223			12,281			8,171			11,557			9,724
Nonrecurring income ⁽²⁾		554			(25	)		2,797			(576	)		18
Total revenue	$	66,982		$	68,496		$	69,052		$	67,273		$	65,826

Noninterest expense	$	37,089		$	38,159		$	36,332		$	35,765		$	36,881
Pre-tax amortization expense		(223	)		(249	)		(278	)		(307	)		(337	)
Nonrecurring expense ⁽³⁾		(1	)		(919	)		(219	)		2			17
Adjusted noninterest expense	$	36,865		$	36,991		$	35,835		$	35,460		$	36,561

Efficiency ratio		57.04	%		56.08	%		53.94	%		54.90	%		57.95	%
Efficiency ratio (FTE) ⁽¹⁾		55.04	%		54.00	%		51.90	%		52.71	%		55.54	%

Average earning assets	$	7,958,424		$	7,913,371		$	7,823,026		$	7,881,919		$	7,882,337

Net interest margin		2.74	%		2.70	%		2.82	%		2.74	%		2.72	%
Net interest margin (FTE) ⁽¹⁾		2.86	%		2.83	%		2.95	%		2.87	%		2.86	%

Net interest spread		2.08	%		1.99	%		2.10	%		2.00	%		2.02	%
Net interest spread (FTE) ⁽¹⁾		2.20	%		2.12	%		2.23	%		2.13	%		2.16	%

(1)	These amounts are presented on a fully taxable-equivalent basis and are non-GAAP measures.
(2)	These adjustments may include net gain or loss on sale of securities available for sale, BOLI income related to death benefits realized and other investment income or loss in the periods where applicable.
(3)	These adjustments may include foreclosure expenses and branch closure expenses, in the periods where applicable.

The MIL Network –

April 29, 2025

MIL-Evening Report: How do the Coalition and Labor plans on housing differ – and what have they ignored?

Source: The Conversation (Au and NZ) – By Hal Pawson, Professor of Housing Research and Policy, and Associate Director, City Futures Research Centre, UNSW Sydney

Any doubts that Australia’s growing housing challenges would be a major focus of the federal election campaign have been dispelled over recent weeks.

Both major parties announced strikingly ambitious housing initiatives as campaign centrepiece offers. So how do they compare?

What’s the Coalition offering?

The Coalition had already pledged several significant housing initiatives, should it form government. Among those, the biggest ticket item is the $5 billion program for enabling infrastructure to “unlock up to 500,000 new homes”.

In the absence of underpinning detail, both the wording of this pledge and its alleged potential impact have generated some scepticism.

Also announced well ahead of the campaign was the Coalition’s plan to allow first home buyers to draw down on their superannuation. They could withdraw up to $50,000 to help fund mortgage deposits.

This proposal has attracted some qualified support. But it’s been rejected by most of Australia’s top economists. This reflects concerns the measure could prove highly inflationary. It also risks a net loss for scheme participants if devalued retirement savings outweigh the benefit of accelerated access to home ownership.

Likewise, the Coalition’s newly unveiled plan to allow mortgage interests for first home buyers to be tax-deductible has been fiercely criticised for its likely inflationary and regressive effects.

Such arrangements are novel in Australia, but exist in some other countries. These include the Netherlands, where their impact has been recently described as damaging to both housing affordability and public finances.

What’s Labor offering?

Labor’s two new offers are to enable access to a mortgage with only a 5% deposit, and its $10 billion “Build to Sell” program.

As a demand-side instrument, the first of these could have some inflationary impact. But given the modest nature of the assistance provided, and that it only expands the existing Home Guarantee Scheme from its current maximum annual quota of 50,000 to an expected take-up of around 80,000, this is likely to be limited.

The Build to Sell plan would see collaboration with state and territory governments to commission 100,000 new homes in eight years. These would be for first home buyers only and, likely, for cost-price sale.

In further details of the plan, released just days out from polling day, Labor says the plan would be progressed partly via $2 billion in concessional loans to the states.

The whole build-to-sell idea revives the practice of the 1950s and 1960s where, in addition to constructing public housing for rent, state governments commissioned homes for sale. This contributed to the rapid rise in home ownership during that period.

As a supply-side measure, the new plan builds on the 2022 National Housing Accord. The accord aims to expand overall housing industry output to 1.2 million new homes in the five years to 2029.

Much about the Build to Sell plan has yet to be revealed. But from what we know, it looks like a bold initiative in challenging conventional modern thinking about the proper limits of direct state involvement in supplying a commodity largely provided through the market.

By expanding overall housing production, it could help in slightly moderating prices market-wide, as well as benefiting the homebuyers directly involved.

One-eyed agendas

When it comes to helping first home buyers, both parties have put forth some ambitious new propositions. But social housing and homelessness pledges have been glaringly absent from their proposals.

Neither Labor nor the Coalition has announced any significant new initiative to relieve rental stress at the lower end of the housing market, affecting millions of Australians. Measures that might, at least indirectly, help stem the rising tide of homelessness that now sees more than 10,000 newly homeless people being taken on by support agencies every month.

Given its numerous initiatives to increase assistance to low-income and otherwise disadvantaged renters already enacted since 2022, Labor has a somewhat stronger excuse here.

But while Albanese government measures, such as increased rent assistance, have eased the situation for some hard-pressed tenants, many other measures will only start to help in the next term of parliament.

That’s especially true for the Housing Australia Future Fund and all of Labor’s other post-2022 federal programs to expand social and affordable housing construction. Pledged commitments during the current parliament should add 55,000 new social and affordable homes to the national portfolio.

In combination with the Build to Sell initiative, this would see state-commissioned or otherwise funded housing construction perhaps equating to as much as 10% of all home-building later this decade. While short of the 16% achieved in the 1945-70 period, that would be a giant increase over the 1-2% typically recorded during the 2010s.

Even so, social and affordable housing investment so far pledged by Labor is limited in relation to demand. It’s estimated 640,000 households have an unmet need for social or affordable housing.

The Coalition says if it wins the election, it would abolish the housing future fund. When asked how he would replace it, Shadow Treasurer Angus Taylor declared it unnecessary because “there’s billions of dollars that [already] goes to the states for social housing”.

While narrowly true, this is also disingenuous. The relatively modest funds referenced here – paid annually under the National Agreement on Social Housing and Homelessness – are entirely swallowed up in balancing the operating budgets of state public housing authorities.

With public housing systems otherwise mired deep in deficits, it’s been decades since this funding stream has been sufficient to generate any new housing supply.

In this respect, the Coalition’s 2025 housing pitch foreshadows a resumption of the Abbott-Turnbull-Morrison stance: nine years of federal subsidy drought for new social and affordable housing.

What else is missing?

Many have also criticised the recent major party offers as ignoring the overdue need for fundamental housing tax reform.

That’s true for Labor. But the Coalition’s pitch on mortgage interest would, in fact, amount to a major property tax reset.

Unfortunately, though, this so-called “negative gearing for first home buyers” would pile yet another damaging “market distortion” on top of all our existing property ownership tax breaks.

These concessions have, over decades, contributed to today’s housing affordability problem, as their value is capitalised into higher prices.

As observed by researcher Peter Mares, this new Coalition foray only goes to shine an even brighter light on the rational case to confront that problem head-on.

Hal Pawson receives funding from the Australian Research Council, the Australian Housing and Urban Research Institute and Crisis UK. He is a part-time unpaid advisor to Senator David Pocock.

– ref. How do the Coalition and Labor plans on housing differ – and what have they ignored? – https://theconversation.com/how-do-the-coalition-and-labor-plans-on-housing-differ-and-what-have-they-ignored-253337

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

MIL-OSI Economics: Forecast for Housing Activity Revised Slightly in April Outlook

Source: Fannie Mae

WASHINGTON, DC – Single-family home sales are expected to close 2025 at 4.86 million units, and new single-family construction is expected to total approximately 964,000 units this year, according to the April 2025 Economic and Housing Outlook from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. Revisions to the housing forecast were driven by a combination of recent actuals and adjustments to the ESR Group’s expectations for the macroeconomy, including economic growth, which is forecast at 0.5% for full-year 2025 and 1.9% for 2026. The ESR Group expects mortgage rates to end 2025 at 6.2% and 2026 at 6.0%, and projects home prices, as measured by the Fannie Mae Home Price Index (FNM-HPI), will rise 4.1% in 2025 and 2.0% in 2026.

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

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

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

MIL OSI Economics –

April 29, 2025

MIL-OSI: Aktsiaselts Infortar 2024 audited Annual Report

Source: GlobeNewswire (MIL-OSI)

The Supervisory Board of Aktsiaselts Infortar approved the audited annual report for 2024 and will submit it to the Annual General Meeting for approval.

Major events

Maritime transport

In the summer, Infortar invested €110 million in acquiring Tallink Grupp (Tallink) shares, increasing its shareholding in Tallink to 68.5%.

The total number of passengers in 2024 reached 5.6 million. As of the end of the financial year, Tallink operated 14 vessels. Three vessels were chartered out during the year. The number of transported cargo units exceeded 303,000, and passenger vehicles transported totalled 777,000.

Energy

Infortar’s subsidiary, Elenger Grupp (Elenger), signed a €120 million agreement with the German energy conglomerate EWE AG to acquire EWE Group’s business operations in Poland. The transaction included natural gas assets, a distribution network in Western Poland, and all energy sales segments.

In 2024, Elenger sold a total of 18.4 TWh of energy (15.9 TWh in 2023). Sales in Estonia accounted for 16% of the total energy sales in 2024. The company’s market share in gas sales across the Finland-Baltic gas market for the year was 24.3%.

Real estate

Infortar’s real estate portfolio has expanded from 100,000 to 141,000 square meters over the past year. At the end of last year, the Rimi logistics centre in Saue received its occupancy permit. This summer, a new bridge in Pärnu will be completed, followed by the opening of Lasnamäe’s second DEPO store in Estonia next year. In early 2028, the Kangru-Saku section of the Rail Baltica main route will also be completed.

Key figures of financial year

Key figures	12 months 2024	12 months 2023
Sales revenue. m€	1 371.775	1 084.626
Gross profit. m€	128.628	149.473
EBITDA. m€	145.275	143.283
EBITDA margin (%)	10.6%	13.2%
Operating profit. EBIT. m€	77.024	123.628
Total profit(-loss). m€^1,2	193.670	293.830
EPS (euros)²	9.36	14.62
Total equity m€	1 166.221	820.210
Total liabilities m€³	1 223.287	441.160
Net debt m€⁴	1 055.708	354.045
Investment loans to EBITDA (ratio)⁵	3.0x	1.7x

^1.The 2024 financial year total profit includes a one-off revaluation of €94 million, mainly arising from the acquisition of Tallink. The 2023 financial year profit includes a one-off revaluation of €159 million, mainly arising from the acquisition of Gaso.

^2. In the Q4 and 12-month annual results reported on 25 February 2025, the consolidated total profit for the financial year was €173.351 million, and earnings per share (EPS) amounted to €8.46. Adjustments have been made in the audited figures, mainly related to the purchase price allocation of Tallink Grupp, resulting in an increase of €20.319 million in the total profit for the annual year and an increase of earnings per share (EPS) by 0.9 euros.

^3–4. The significant increase in liabilities and net debt is due to the consolidation of Tallink’s loans into Infortar’s financial statements in 2024.

^5. Infortar Group’s investment loans / EBITDA ratio. For 2024 Tallink’s 12-month EBITDA (€265.447 million) has been used for comparability purposes

Revenue

2024. financial year, the group´s consolidated sales revenue increased by €287.149 million reaching €1 371.775 million (compared to €1 084.626 million in 2023). A significant impact was made by the consolidation of Tallink Grupp’s results into Infortar’s consolidated financial statements starting from August 1, 2024.

EBITDA and Segment Reporting

Maritime transport Segment: The EBITDA for the maritime transport segment in 2024 financial year was €175.181 million (compared to €214.528 million in the 2023 financial year). In segment reporting 100% Tallink results are presented.

Tallink´s financial results were affected by difficult economic environment across all our home markets, and the lowest consumer confidence levels in a decade.

Energy Segment: The EBITDA for the energy segment of the 2024 financial year was €77.235 million (compared to €135.999 million in 2023). Warmer winter led to a decrease in sales volumes, which in turn impacted profitability in the fourth quarter.

Real Estate Segment: The profitability assessment considers the EBITDA of individual real estate companies. The EBITDA for the real estate segment of the 2024 financial year was €13.567 million (compared to €12.39 million in 2023). Three new buildings at Liivalaia 9, Tähesaju 9, and Tähesaju 11 were included in the accounting for the 2023 financial year.

Total Profit

The consolidated total profit for the 2024 financial year was €193.67 million (compared to €293.83 million in the 2023 financial year). One-off significant impacts included the effects related to the acquisition of Tallink in 2024 and Latvian gas distribution company Gaso in 2023. The consolidated operating profit for the 2024 financial year was €77.024 million (compared to €123.628 million in 2023).

Investments

Infortar entered the agricultural sector by acquiring one of Estonia’s largest dairy farms in Halinga and began constructing a biomethane plant next to the farm for local biomethane production. Infortar invested €110 million in purchasing Tallink shares, increasing its shareholding in Tallink to 68,5%.

Infortar subsidiary Elenger signed a €120 million agreement with the German energy group EWE AG to acquire EWE Group’s entire Polish business. The transaction includes the natural gas distribution network in Western Poland as well as all energy sales operations.

Financing

Loan and lease liabilities amounted to €1 223.287 million in 2024 financial year (compared to €441.16 million in 2023 financial year). Significant increase in the 2024 financial year is primarily due to the line-by-line consolidation of Tallink Grupp, which resulted in the full inclusion of Tallink’s liabilities among the group’s obligations.

Proportionally to the growth in assets, Infortar’s net debt increased by €701.663 million, reaching €1 055.708 million (compared to €354,045 million in 2023 financial year). The net debt to EBITDA ratio was 3.4.

Dividends

According to the dividend policy, the objective is to pay dividends of at least 1 euro per share per financial year. Dividend payments are made semi-annually. Infortar Group’s management proposes to pay a dividend of 3 euros per share for the 2024 financial year results.

Consolidated statement of profit or loss and other comprehensive income

(in thousands of EUR)	12 months 2024	12 months 2023
Revenue	1 371 775	1 084 626
Cost of goods (goods and services) sold	-1 243 034	-934 811
Write-down of receivables	-113	-342
Gross profit	128 628	149 473
Marketing expenses	-21 086	-1 620
General administrative expenses	-50 438	-22 085
Profit (loss) from biological assets	-139	0
Profit (loss) from the change in the fair value of the investment property	-949	-4 074
Profit (loss) from changes in the fair value of fixed assets	-8 691
Unsettled gain/loss on derivative financial instruments	26 672	1 969
Other operating revenue	4 682	2 523
Other operating expenses	-1 655	-2 558
Operating profit	77 024	123 628
Profit (loss) from investments accounted for by equity method	22 974	39 639
Financial income and expenses	13 392	0
Other financial investments	-50	-4
Interest expense	-38 274	-22 573
Interest income	4 979	2 765
Profit (loss) from changes in exchange rates	100	-173
Gain from bargain purchase	93 659	159 158
Total financial income and expenses	73 806	139 173
Profit before tax	173 804	302 440
Corporate income tax	19 866	-8 610
Profit for the financial year	193 670	293 830
including:
Profit attributable to the owners of the parent company	191 253	293 778
Profit attributable to non-controlling interest	2 417	52
Other comprehensive income
Items that will not be reclassified to profit or loss
Revaluation of post-employment benefit obligations	-141	-44
Items that may be subsequently reclassified to the income statement:
Revaluation of risk hedging instruments	-45 792	-58 189
Exchange rate differences attributable to foreign subsidiaries	53	-42
Total of other comprehensive income	-45 880	-58 275
Total income	147 790	235 555
including:
Comprehensive profit attributable to the owners of the parent company	145 514	235 503
Comprehensive profit attributable to non-controlling interest	2 417	52
Ordinary earnings per share (in euros per share)	9,36	14,62
Diluted earnings per share (in euros per share)	9,12	14,15

Consolidated statement of financial position

(in thousands of EUR)	31.12.24	31.12.23
Current assets
Cash and cash equivalents	167 579	87 115
Short-term derivatives	8 333	28 728
Settled derivative receivables	676	5 958
Other prepayments and receivables	155 351	162 575
Prepaid taxes	3 831	925
Trade and other receivables	38 517	20 185
Prepayments for inventories	2 498	3 493
Inventories	215 914	146 884
Biological assets	941	0
Total current assets	593 640	455 863
Non-current assets
Investments to associates	16 603	346 014
Long-term derivative instruments	3 214	1 125
Long-term loans and other receivables	35 163	9 072
Investment property	67 931	176 024
Property, plant and equipment	1 909 458	446 748
Intangible assets	38 874	14 366
Right-of-use assets	47 598	11 300
Biological assets	2 753	0
Total non-current assets	2 121 594	1 004 649
TOTAL ASSETS	2 715 234	1 460 512

(in thousands of EUR)	31.12.24	31.12.23
Current liabilities
Loan liabilities	497 162	184 259
Rental liabilities	9 020	1 766
Payables to suppliers	87 941	74 751
Tax obligations	49 354	32 822
Buyers’ advances	31 126	3 099
Settled derivatives	8 728	1 463
Other current liabilities	63 431	10 851
Short term derivatives	27 704	3 659
Total current liabilities	774 466	312 670
Non-current liabilities
Long-term provisions	9 946	8 399
Deferred taxes	2 816	33 233
Other long-term liabilities	43 209	30 679
Long-term derivatives	1 471	186
Loan-liabilities	676 670	246 410
Rental liabilities	40 435	8 725
Total non-current liabilities	774 547	327 632
TOTAL LIABILITIES	1 549 013	640 302

(in thousands of EUR)	31.12.24	31.12.23
Equity
Share capital	2 117	2 105
Own shares	-72	-95
Share premium	32 484	29 344
Reserve capital	212	205
Option reserve	6 223	3 864
Hedging reserve*	-21 674	24 118
Unrealised exchange rate differences	45	-39
Post-employment benefit obligation reserve	-185	-44
Retained earnings from previous periods	890 167	759 918
Total equity attributable to equity holders of the Parent	909 317	819 376
Minority interests	256 904	834
Total equity	1 166 221	820 210

TOTAL LIABILITIES AND EQUITY	2 715 234	1 460 512

Consolidated statement of cash flows

Cash flows from operating activities
(in thousands of EUR)	12 months 2024	12 months 2023
Profit for the financial year	193 670	293 830
Adjustments:
Depreciation, amortisation, and impairment of non-current assets	68 251	19 655
Change in the fair value of the investment property	-22 974	-39 639
Change in the value of derivatives	-1 483	54 122
Other financial income/expenses	-112 030	-161 965
Calculated interest expenses	38 274	22 573
Profit/loss from non-current assets sold	-955	-91
Income from grants recognised as revenue	-643	784
Corporate income tax expense	-19 866	8 610
Income tax paid	-10 551	-267
Change in receivables and prepayments related to operating activities	52 023	54 540
Change in inventories	-12 831	-61 914
Change in payables and prepayments relating to operating activities	-81 275	-406
Change in biological assets	-322	0
Total cash flows from operating activities	89 288	189 832

Cash flows from investing activities
Purchases of associates	0	-10 314
Purchases of subsidiaries	-111 684	-103 414
Received dividends	20 862	0
Given loans	1 918	6 652
Interest gain	4 953	2 691
Purchases Investment property	-10 352	-18 304
Purchases of property, plant and equipment	-27 835	-18 143
Proceeds from sale of property	1 561	-252
Total cash flows used in investing activities	-120 577	-141 084

Cash flows used in financing activities	12 months 2024	12 months 2023
Proceeds from targeted financing	225	0
Changes in overdraft	12 863	14 348
Proceeds from borrowings	358 731	287 606
Repayments of borrowings	-151 790	-312 846
Repayment of finance lease liabilities	-11 300	-2 233
Interest paid	-39 153	-22 224
Dividends paid	-60 997	-15 750
Gain from share emission	3 174	29 464
Total cash flows used in financing activities	111 753	-21 635

TOTAL NET CASH FLOW	80 464	27 113
Cash at the beginning of the year	87 115	60 002
Cash at the end of the period	167 579	87 115
Net (decrease)/increase in cash	80 464	27 113

The 2024 Annual Report of Aktsiaselts Infortar is attached to this notice and will be made available on the website Reports | Infortar.

Infortar operates in seven countries, the company’s main fields of activity are maritime transport, energy and real estate. Infortar owns a 68.47% stake in Tallink Grupp, a 100% stake in Elenger Grupp and a versatile and modern real estate portfolio of approx. 141,000 m2. In addition to the three main areas of activity, Infortar also operates in construction and mineral resources, agriculture, printing, and other areas. A total of 110 companies belong to the Infortar group: 101 subsidiaries, 4 affiliated companies and 5 subsidiaries of affiliated companies. Excluding affiliates, Infortar employs 6,228 people.

Additional information:

Kadri Laanvee
Investor Relations Manager
Phone: +372 5156662
e-mail: kadri.laanvee@infortar.ee
www.infortar.ee/en/investor

Attachments

The MIL Network –

April 29, 2025

MIL-OSI: StepStone Real Estate Closes Record-Breaking $3.77 Billion Real Estate Secondaries Fund, Surpassing $4.5 Billion in Total Investment Capacity

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 28, 2025 (GLOBE NEWSWIRE) — StepStone Real Estate (SRE), the real estate arm of StepStone Group (Nasdaq: STEP), today announced the final closing of StepStone Real Estate Partners V (SREP V), its fifth flagship fund dedicated to GP-led secondaries and recapitalizations of real estate vehicles. With $3.77 billion in primary commitments, SREP V represents the largest real estate secondaries fund raised to date. Including co-investments completed and discretionary vehicles raised to invest alongside the fund, the total investment program exceeds $4.5 billion in capacity.

Despite challenging market conditions and a slowdown in fundraising across the real estate sector, SREP V was significantly oversubscribed, reflecting strong investor confidence in SRE’s differentiated strategy and past performance. To date, SREP V and related separate accounts have committed $1.7 billion across 8 investments, with a large pipeline of transactions currently closing, underscoring the significant demand for liquidity solutions from real estate GPs.

Founded in 2009, SRE was established by Jeff Giller, Partner and Head of StepStone Real Estate, Josh Cleveland, Partner and Head of EMEA, and Brendan MacDonald, Partner and Chief Operating Officer. Since inception, the firm has focused on providing liquidity to real estate funds and their investors during times of market dislocation.

“We believe the combination of value declines, historically low transaction volume, increased borrowing costs, and a slow fundraising environment has created unprecedented illiquidity across real estate markets,” said Giller. “Our strategy—providing liquidity solutions to real estate vehicles and investors when traditional liquidity avenues are challenged—has proven resilient through all phases of the market cycle, and it’s especially compelling today.”

“SREP V attracted a diverse global investor base, including sovereign wealth funds, pension funds, insurance companies, and wealth management platforms,” said Cleveland. “The fund saw notably higher participation from North American institutions compared to prior vintages, along with increased commitments from investors in Europe, Asia, the Middle East, and Latin America,” he added.

The success of the fundraise was also driven by the strength of SRE’s broader platform. “Our advisory practice, which oversees roughly $170 billion in real estate assets under advisement, continues to play a pivotal role in sourcing and evaluating secondaries transactions,” said MacDonald. “We conduct over 1,000 manager meetings annually and have allocated approximately $17 billion per year across primary investments in funds, secondaries, and co-investments. This level of engagement gives us a distinct vantage point in the market—and a strong edge in deal sourcing and diligence.”

SREP V continues a strategy pioneered by SRE’s founders following the Global Financial Crisis, shifting from traditional secondaries focused on passive limited partner interests to control-oriented, GP-led secondaries and recapitalizations.

Latham & Watkins LLP advised on the formation of the fund and Threadmark Partners Limited provided placement agent services.

About StepStone and StepStone Real Estate

StepStone Group Inc. (Nasdaq: STEP) is a global private markets investment firm focused on providing customized investment solutions and advisory and data services to its clients. As of December 31, 2024, StepStone was responsible for $698 billion of total capital, including $179 billion of assets under management. StepStone’s clients include some of the world’s largest public and private defined benefit and defined contribution pension funds, sovereign wealth funds and insurance companies, as well as prominent endowments, foundations, family offices and private wealth clients, which include high-net-worth and mass affluent individuals. StepStone partners with its clients to develop and build private markets portfolios designed to meet their specific objectives across the real estate, private equity, infrastructure, and private debt asset classes.

Contacts

Shareholder Relations:
Seth Weiss
shareholders@stepstonegroup.com
+1 (212) 351-6106

Media:
Brian Ruby / Chris Gillick / Matt Lettiero, ICR
StepStonePR@icrinc.com
+1 (203) 682-8268

The MIL Network –

April 29, 2025

MIL-OSI New Zealand: Accelerating building projects with self-certification and inspection targets

Source: New Zealand Government

The Government has agreed on a new scheme allowing trusted builders to sign off their own work and will set a mandatory target to tackle building inspection wait times, Building and Construction Minister Chris Penk has announced.

“Making it easier and more affordable to build opens the door to homeownership for more Kiwis, gives families choice about where they live, and supports growth and job creation in the construction sector,” Mr Penk says.

“We can’t achieve this vision while the building consent system remains slow and overloaded. Even simple, single-storey homes must go through around 12 inspections before they’re finished, with costly delays when demand is high.

“At a time when many Kiwis are locked out of the housing market, that’s simply not good enough.

“The Government is committed to making the building system more efficient and Cabinet has now agreed to an opt-in self-certification scheme, which will allow approved building firms, plumbers, and drainlayers to sign off their own work.

“Reputable building companies delivering large numbers of near-identical houses each year will be able to proceed without the need for Building Consent Authorities (BCAs) to approve a building consent and carry out inspections.

“Giving qualified plumbers and drainlayers the ability to self-certify their work puts them on equal footing with electricians and gasfitters, who’ve had that flexibility for years. It’s a common-sense change backed by Master Plumbers and delivers on a National Party campaign promise.

“Kiwis should have confidence that their homes are built to a high standard. That’s why only proven professionals who meet strict criteria will be eligible for the scheme – and only for simple residential dwellings.

“Initially these changes are expected to see around 3,000 homes built each year without delays from approvals or inspections. BCAs will be freed up to focus on high-risk, complex builds instead of being bogged down by simple homes.

“In addition, the Government will require BCAs complete 80 percent of building inspections within three working days.

“Master Builders have welcomed this announcement as a meaningful step toward reducing inspection delays. We regularly hear from builders frustrated by the disruption to project timelines and the uncertainty it creates for homeowners.

“Wait times sometimes stretch up to a week – having a knock-on effect which can add about $400 for every day a project is held up.

“Updated guidance will be issued to BCAs, outlining practical strategies to boost efficiency, reduce bottlenecks, and help authorities better prioritise their workloads.”

“BCAs success in meeting the target will be shown in quarterly performance data – giving the public greater transparency and encouraging improved performance.

“By backing skilled professionals and focusing council resources, we can cut building costs without sacrificing quality – delivering more affordable homes for Kiwi families.”

Inspection targets will come into force later this year and legislation to enable the self-certification scheme will be introduced by the end of 2025.

Notes to editors:

The self-certification scheme will be a voluntary, opt-in measure enabled by changes to the Building Act 2004 and the Plumbers, Gasfitters and Drainlayers Act 2006.
There will be two self-certification pathways available under the scheme:
- An opt-in self-certification scheme for house builders carrying out work on an entire simple residential dwelling (including design and construction).
- An opt-in self-certification scheme for plumbers and drainlayers carrying out work on a simple residential dwelling.
The definition of an eligible simple residential dwelling will be set down in regulation, following industry consultation.
BCAs will still be required to provide a nominal consent for entire simple homes where trusted building professionals are self-certifying their work.

MIL OSI New Zealand News –

April 28, 2025

	Month	Quarter	Annual	From peak	Median value
Aotearoa New Zealand	0.3%	0.9%	-2.0%	-15.9%	$819,096
Tāmaki Makaurau Auckland	0.3%	0.9%	-3.1%	-20.7%	$1,081,729
Kirikiriroa Hamilton	0.8%	2.1%	1.1%	-10.0%	$756,686
Tauranga	0.1%	-0.4%	-1.8%	-16.4%	$904,602
Te-Whanganui-a-Tara Wellington	0.1%	0.7%	-5.8%	-23.5%	$811,829
Ōtautahi Christchurch	0.5%	2.1%	1.9%	-4.4%	$678,745
Ōtepoti Dunedin	0.1%	-0.1%	-0.3%	-10.1%	$604,664

Category: Residential Housing Market

01 May 2025

Context

Summary

A changing construction landscape

The biggest gains go to the lowest-paid roles

Wage hikes have a ripple effect

What’s the Coalition offering?

What’s Labor offering?

One-eyed agendas

What else is missing?