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MIL-OSI: First Mid Bancshares, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

MATTOON, Ill., April 30, 2025 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2025.

Highlights

Record high quarterly net income of $22.2 million, or $0.93 diluted EPS, an increase of $0.13
Adjusted net income (non-GAAP*) of $23.1 million, or $0.96 diluted EPS, an increase of $0.09 for the quarter
Net interest margin tax equivalent (non-GAAP*) expands to 3.60% helping drive fourth consecutive quarter of growth in net interest income
Tangible book value per share (non-GAAP*) increased 4.4% during the quarter
Board of Directors declares regular quarterly dividend of $0.24 per share

“We kicked off 2025 with a record high quarterly net income that reflects our strategic focus on driving a higher return on assets,” said Joe Dively, Chairman and Chief Executive Officer. “We delivered growth in both loans and deposits in what is typically a seasonally pressured quarter, and we significantly expanded our net interest margin through both an increase in earning asset yields and a decrease in the average cost of funds. In addition, we successfully completed our retail online system conversion during the quarter providing a better overall product for our customers and an improved platform to grow relationships across business lines.”

“Lastly, while we recognize the uncertainty that exists in the macro environment, we are well-prepared with a disciplined credit culture and diversified revenue sources that position us to weather economic disruptions and continue to deliver exceptional service to our customers and communities,” Dively concluded.

Net Interest Income
Net interest income for the first quarter of 2025 increased by $0.5 million, or 0.8% compared to the fourth quarter of 2024. The increase was primarily the result of interest expense declining at a faster pace than interest income. Less days in the quarter drove declines in both interest income and expense. The decline in interest income included $0.5 million in lower accretion income, which totaled $2.9 million compared to $3.4 million of accretion income in the fourth quarter.

In comparison to the first quarter of 2024, net interest income increased $3.9 million, or 7.1%. Interest income was lower by $0.1 million, inclusive of a decline in accretion income of $0.7 million compared to the first quarter last year. Interest expense was lower by $4.1 million compared to the same period last year.

Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.60% for the first quarter of 2025 representing an increase of 19 basis points over the prior quarter driven by both an increase to earning asset yields and a decrease to funding costs. Excluding the decline in accretion income, the net interest margin increased 23 basis points in the period. Beginning with the first quarter of 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets. This change added five-basis points to the net interest margin in the first quarter 2025 compared to the fourth quarter of 2024.

In comparison to the first quarter of last year, the net interest margin increased 35 basis points, with an average earning asset increase of 13 basis points, despite a five-basis point reduction to accretion income.

Loan Portfolio
Total loans ended the quarter at $5.70 billion, representing an increase of $26.4 million, or 0.5%, from the prior quarter, despite elevated payoffs during the period. The increase was primarily in construction and land development, multifamily residential properties, and agriculture operating loans. The largest declines were in commercial real estate and commercial and industrial loans. The average loan balance for the quarter declined compared to the fourth quarter, as a majority of the net loan growth occurred in March 2025.

In comparison to the first quarter last year, loan growth increased $199.6 million, or 3.6%. The largest increases were in construction and development, agriculture operating lines, and commercial and industrial loans.

Asset Quality
The first quarter was another solid performance with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $70.1 million and the ACL to total loans ratio was 1.23%. In addition to the ACL, an unearned discount of $32.6 million remains at quarter end. Provision expense was recorded in the amount of $1.7 million with net charge-offs of $1.8 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.47%, the ACL to non-performing loans was 263.4%, and the ratio of nonperforming assets to total assets was 0.38%. Nonperforming loans declined by $3.2 million to $26.6 million at quarter end. Special mention loans increased by $16.2 million to $74.0 million and substandard loans decreased $1.6 million to $33.9 million.

Deposits
Total deposits ended the quarter at $6.13 billion, which represented an increase of $73.3 million, or 1.2%, from the prior quarter. Noninterest bearing and time deposits were the primary drivers of the increase with growth of $65.4 million and $75.4 million for the period, respectively. The increase in time deposits was driven by a combination of the Company retaining a vast majority of customers with maturing CD’s, gaining new customers with its promotional offerings, and the addition of $52.0 million in brokered deposits as rates declined and the wholesale market became attractive. With the Company’s strong liquidity position, it was able to reduce outstanding FHLB borrowings and subordinated debt during the quarter by a combined $55.5 million helping lower overall funding costs.

Noninterest Income
Noninterest income for the first quarter of 2025 was $24.9 million compared to $26.4 million in the fourth quarter of 2024. The decline was primarily driven by a $1.3 million gain on the sale of property in the fourth quarter. The current quarter included losses on securities sales of $0.2 million. Excluding those two items, noninterest income was flat versus the prior period. The decline of $0.5 million in wealth management revenue was as expected given the seasonal nature of farmland sales. Overall Ag Services revenue was $2.6 million in the period. Insurance revenues achieved a record high quarter of revenue, despite a challenging operating environment for the industry. Debit card fee income was down $0.6 million primarily driven by less usage due to a pullback in consumer spending.

In comparison to the first quarter of 2024, noninterest income increased $0.4 million, or 1.6%, with increases in wealth management and insurance as the key drivers. The combined increase for these two business lines was 8.2% year-over-year. Debit card fee income reflected the largest decline from lower consumer spending in the first quarter of 2025.

Noninterest Expenses
Noninterest expense for the first quarter of 2025 totaled $54.5 million compared to $56.3 million in the prior quarter. The current quarter included $1.0 million of nonrecurring expenses primarily related to the Company’s technology initiatives, including the successful conversion of its retail online platform during the first quarter, versus $2.2 million in nonrecurring costs in the prior quarter. Excluding these items, noninterest expenses were down $0.6 million with the largest decreases in salaries and benefits and debit card expenses.

In comparison to the first quarter of 2024, noninterest expenses increased $1.1 million. The increase was primarily driven by annual compensation increases and a $0.9 million credit in the first quarter of last year for a debit card fee negotiated settlement agreement with its primary provider.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2025 was 58.9% compared to 58.8% in the prior quarter and 59.1% for the same period last year.

Capital Levels and Dividend
The Company’s capital levels remained strong and above the “well capitalized” levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets	15.59%
Tier 1 capital to risk-weighted assets	13.13%
Common equity tier 1 capital to risk-weighted assets	12.73%
Leverage ratio	10.73%

Tangible book value per share (non-GAAP) increased $1.07, or 4.4% during the first quarter of 2025. The increase was driven primarily by earnings growth, which accounted for $0.79 of the increase. The remaining increase of $0.28 was the result of improvement in accumulated other comprehensive income from a lower unrealized loss position in the investment portfolio.

The Company’s Board of Directors approved a regular quarterly dividend of $0.24 payable on May 30, 2025, for shareholders of record on May 15, 2025.

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.6 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 160 years. More information about the Company is available on our website at www.firstmid.com.

*Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Earnings,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” “Tangible Book Value per Common Share,” “Adjusted Tangible Book Value per Common Share,” “Adjusted Return on Assets,” and “Adjusted Return on Average Common Equity”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of pandemics on First Mid’s businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Investor Contact:
Austin Frank
SVP, Shareholder Relations
217-258-5522
afrank@firstmid.com

Matt Smith
Chief Financial Officer
217-258-1528
msmith@firstmid.com

– Tables Follow –


FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)

	As of
	March 31,			December 31,			March 31,
	2025			2024			2024

Assets
Cash and cash equivalents	$	201,470		$	121,216		$	355,701
Investment securities		1,049,003			1,073,510			1,149,752
Loans (including loans held for sale)		5,698,858			5,672,462			5,499,295
Less allowance for credit losses		(70,051	)		(70,182	)		(67,936	)
Net loans		5,628,807			5,602,280			5,431,359
Premises and equipment, net		97,446			100,234			101,666
Goodwill and intangibles, net		258,671			261,906			260,699
Bank Owned Life Insurance		171,127			170,854			167,247
Other assets		166,164			189,734			211,822
Total assets	$	7,572,688		$	7,519,734		$	7,678,246

Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing	$	1,394,590		$	1,329,155		$	1,448,299
Interest bearing		4,735,790			4,727,941			4,794,637
Total deposits		6,130,380			6,057,096			6,242,936
Repurchase agreements with customers		219,772			204,122			210,719
Other borrowings		195,000			242,520			238,761
Junior subordinated debentures		24,335			24,280			24,113
Subordinated debt		79,535			87,472			106,862
Other liabilities		52,717			57,853			56,903
Total liabilities		6,701,739			6,673,343			6,880,294

Total stockholders’ equity		870,949			846,391			797,952
Total liabilities and stockholders’ equity	$	7,572,688		$	7,519,734		$	7,678,246

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	Three Months Ended
	March 31,
	2025			2024
Interest income:
Interest and fees on loans	$	79,918		$	77,823
Interest on investment securities		6,777			7,405
Interest on federal funds sold & other deposits		864			2,444
Total interest income		87,559			87,672
Interest expense:
Interest on deposits		23,722			26,096
Interest on securities sold under agreements to repurchase		1,180			2,056
Interest on other borrowings		1,831			2,314
Interest on jr. subordinated debentures		468			542
Interest on subordinated debt		949			1,194
Total interest expense		28,150			32,202
Net interest income		59,409			55,470
Provision for credit losses		1,652			(357	)
Net interest income after provision for credit losses		57,757			55,827
Non-interest income:
Wealth management revenues		5,800			5,322
Insurance commissions		9,925			9,213
Service charges		2,901			2,956
Net securities gains/(losses)		(181	)		0
Mortgage banking revenues		711			706
ATM/debit card revenue		3,646			4,055
Other		2,062			2,226
Total non-interest income		24,864			24,478
Non-interest expense:
Salaries and employee benefits		31,748			30,448
Net occupancy and equipment expense		8,479			7,560
Net other real estate owned (income) expense		101			(21	)
FDIC insurance		849			869
Amortization of intangible assets		3,231			3,497
Stationary and supplies		431			391
Legal and professional expense		3,076			2,449
ATM/debit card expense		1,831			1,191
Marketing and donations		852			862
Other		3,874			6,116
Total non-interest expense		54,472			53,362
Income before income taxes		28,149			26,943
Income taxes		5,978			6,440
Net income	$	22,171		$	20,503

Per Share Information
Basic earnings per common share	$	0.93		$	0.86
Diluted earnings per common share		0.93			0.86

Weighted average shares outstanding		23,858,817			23,872,731
Diluted weighted average shares outstanding		23,959,228			23,960,335

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	For the Quarter Ended
	March 31,			December 31,		September 30,			June 30,			March 31,
	2025				2024	2024			2024			2024
Interest income:
Interest and fees on loans	$	79,918		$	81,288	$	81,775		$	79,560		$	77,823
Interest on investment securities		6,777			6,990		7,036			7,405			7,405
Interest on federal funds sold & other deposits		864			1,564		2,371			1,718			2,444
Total interest income		87,559			89,842		91,182			88,683			87,672
Interest expense:
Interest on deposits		23,722			26,144		28,341			26,338			26,096
Interest on securities sold under agreements to repurchase		1,180			1,333		1,444			1,615			2,056
Interest on other borrowings		1,831			1,917		2,195			2,248			2,314
Interest on jr. subordinated debentures		468			510		567			537			542
Interest on subordinated debt		949			988		1,092			1,180			1,194
Total interest expense		28,150			30,892		33,639			31,918			32,202
Net interest income		59,409			58,950		57,543			56,765			55,470
Provision for credit losses		1,652			3,643		1,266			1,083			(357	)
Net interest income after provision for credit losses		57,757			55,307		56,277			55,682			55,827
Non-interest income:
Wealth management revenues		5,800			6,275		5,816			5,405			5,322
Insurance commissions		9,925			6,805		6,003			6,531			9,213
Service charges		2,901			3,058		3,121			3,227			2,956
Net securities gains/(losses)		(181	)		0		(277	)		(156	)		0
Mortgage banking revenues		711			1,104		1,109			1,038			706
ATM/debit card revenue		3,646			4,204		4,267			4,281			4,055
Other		2,062			4,917		2,984			2,096			2,226
Total non-interest income		24,864			26,363		23,023			22,422			24,478
Non-interest expense:
Salaries and employee benefits		31,748			31,957		31,565			30,164			30,448
Net occupancy and equipment expense		8,479			7,285		8,055			7,507			7,560
Net other real estate owned (income) expense		101			240		107			85			(21	)
FDIC insurance		849			863		829			902			869
Amortization of intangible assets		3,231			3,314		3,405			3,340			3,497
Stationary and supplies		431			642		482			370			391
Legal and professional expense		3,076			5,386		2,573			2,536			2,449
ATM/debit card expense		1,831			2,043		1,869			1,281			1,191
Marketing and donations		852			906		836			814			862
Other		3,874			3,661		4,212			4,392			6,116
Total non-interest expense		54,472			56,297		53,933			51,391			53,362
Income before income taxes		28,149			25,373		25,367			26,713			26,943
Income taxes		5,978			6,205		5,885			6,968			6,440
Net income	$	22,171		$	19,168	$	19,482		$	19,745		$	20,503

Per Share Information
Basic earnings per common share	$	0.93		$	0.80	$	0.81		$	0.83		$	0.86
Diluted earnings per common share		0.93			0.80		0.81			0.82			0.86

Weighted average shares outstanding		23,858,817			23,818,806		23,905,099			23,896,210			23,872,731
Diluted weighted average shares outstanding		23,959,228			23,908,340		24,006,647			23,998,152			23,960,335

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024

Loan Portfolio
Construction and land development	$	269,148		$	236,093		$	190,857		$	195,389		$	186,851
Farm real estate loans		373,413			390,760			384,620			387,015			388,941
1-4 Family residential properties		488,139			496,597			505,342			507,517			518,641
Multifamily residential properties		356,858			332,644			338,167			334,446			312,758
Commercial real estate		2,397,985			2,417,585			2,440,120			2,406,955			2,396,092
Loans secured by real estate		3,885,543			3,873,679			3,859,106			3,831,322			3,803,283
Agricultural operating loans		296,811			239,671			233,414			213,997			213,217
Commercial and industrial loans		1,303,712			1,335,920			1,283,631			1,268,646			1,227,906
Consumer loans		47,220			53,960			63,222			70,841			79,569
All other loans		165,572			169,232			175,218			175,811			175,320
Total loans		5,698,858			5,672,462			5,614,591			5,560,617			5,499,295

Deposit Portfolio
Non-interest bearing demand deposits	$	1,394,590		$	1,329,155		$	1,387,290		$	1,393,336		$	1,448,299
Interest bearing demand deposits		1,814,427			1,907,733			1,834,123			1,909,993			1,974,857
Savings deposits		643,289			636,427			648,582			673,381			704,777
Money Market		1,215,420			1,196,537			1,183,594			1,127,699			1,107,177
Time deposits		1,062,654			987,244			1,035,245			1,011,370			1,007,826
Total deposits		6,130,380			6,057,096			6,088,834			6,115,779			6,242,936

Asset Quality
Non-performing loans	$	26,598		$	29,835		$	18,242		$	19,079		$	20,064
Non-performing assets		28,703			32,030			20,076			20,557			21,471
Net charge-offs (recoveries)		1,783			2,235			804			708			381
Allowance for credit losses to non-performing loans		263.36	%		235.23	%		377.01	%		358.05	%		338.60	%
Allowance for credit losses to total loans outstanding		1.23	%		1.24	%		1.22	%		1.23	%		1.24	%
Nonperforming loans to total loans		0.47	%		0.53	%		0.32	%		0.34	%		0.36	%
Nonperforming assets to total assets		0.38	%		0.43	%		0.27	%		0.27	%		0.28	%
Special Mention loans		74,019			57,848			38,151			30,767			65,693
Substandard and Doubtful loans		33,884			35,516			29,037			27,594			29,296

Common Share Data
Common shares outstanding		23,981,916			23,895,807			23,904,051			23,895,868			23,888,929
Book value per common share	$	36.32		$	35.42		$	35.91		$	34.05		$	33.40
Tangible book value per common share ⁽¹⁾		25.53			24.46			24.82			23.28			22.49
Tangible book value per common share excluding other comprehensive income at period end ⁽¹⁾		31.21			30.42			29.70			29.43			28.67
Market price of stock		34.90			36.82			38.91			32.88			32.68

Key Performance Ratios and Metrics
End of period earning assets	$	6,844,096		$	6,775,075		$	6,786,458		$	6,812,574		$	6,923,742
Average earning assets		6,769,858			6,884,303			6,857,070			6,815,932			6,884,855
Average rate on average earning assets (tax equivalent)		5.29	%		5.24	%		5.35	%		5.27	%		5.16	%
Average rate on cost of funds		1.74	%		1.83	%		2.00	%		1.91	%		1.91	%
Net interest margin (tax equivalent) ⁽¹⁾⁽²⁾		3.60	%		3.41	%		3.35	%		3.36	%		3.25	%
Return on average assets		1.19	%		1.01	%		1.03	%		1.05	%		1.07	%
Adjusted return on average assets ⁽¹⁾		1.23	%		1.10	%		1.05	%		1.07	%		1.17	%
Return on average common equity		10.35	%		9.04	%		9.40	%		9.92	%		10.37	%
Adjusted return on average common equity ⁽¹⁾		10.78	%		9.80	%		9.58	%		10.11	%		11.28	%
Efficiency ratio (tax equivalent) ⁽¹⁾		58.88	%		58.76	%		61.33	%		59.61	%		59.09	%
Full-time equivalent employees		1,194			1,198			1,207			1,185			1,188


¹ Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
² During the first quarter 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks and research analysts. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets.

FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)

	For the Quarter Ended March 31, 2025
	QTD Average					Average
	Balance			Interest		Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	70,701		$	827		4.74	%
Federal funds sold		75			1		5.41	%
Certificates of deposits investments		3,162			36		4.62	%
Investment Securities		1,090,099			7,254		2.66	%
Loans (net of unearned income)		5,605,821			80,194		5.80	%

Total interest earning assets		6,769,858			88,312		5.29	%

NONEARNING ASSETS
Other nonearning assets		777,177
Allowance for loan losses		(70,620	)

Total assets	$	7,476,415

INTEREST BEARING LIABILITIES
Demand deposits	$	3,039,621		$	14,900		1.99	%
Savings deposits		640,687			164		0.10	%
Time deposits		1,022,200			8,658		3.44	%
Total interest bearing deposits		4,702,508			23,722		2.05	%
Repurchase agreements		201,679			1,180		2.37	%
FHLB advances		194,324			1,807		3.77	%
Federal funds purchased		–			–		0.00	%
Subordinated debt		82,608			949		4.66	%
Jr. subordinated debentures		24,306			468		7.81	%
Other debt		1,467			24		6.63	%
Total borrowings		504,384			4,428		3.56	%
Total interest bearing liabilities		5,206,892			28,150		2.19	%

NONINTEREST BEARING LIABILITIES
Demand deposits		1,370,107		Average cost of funds			1.74	%
Other liabilities		42,946
Stockholders’ equity		856,470

Total liabilities & stockholders’ equity	$	7,476,415

Net Interest Earnings / Spread				$	60,162		3.10	%

Tax effected yield on interest earning assets							3.60	%

Tax equivalent net interest margin is a non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024

Net interest income as reported	$	59,409		$	58,950		$	57,543		$	56,765		$	55,470
Net interest income, (tax equivalent)		60,162			59,717			58,627			57,361			56,086
Average earning assets		6,769,858			6,884,303			6,857,070			6,815,932			6,884,855
Net interest margin (tax equivalent)		3.60	%		3.41	%		3.35	%		3.36	%		3.25	%


Common stockholder’s equity	$	870,949		$	846,391		$	858,497		$	813,645		$	797,952
Goodwill and intangibles, net		258,671			261,906			265,139			257,377			260,699
Common shares outstanding		23,982			23,896			23,904			23,896			23,889
Tangible Book Value per common share	$	25.53		$	24.46		$	24.82		$	23.28		$	22.49
Accumulated other comprehensive loss (AOCI)		(136,097	)		(142,383	)		(116,692	)		(146,998	)		(147,667	)
Adjusted tangible book value per common share	$	31.21		$	30.42		$	29.70		$	29.43		$	28.67

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Adjusted earnings Reconciliation
Net Income – GAAP	$	22,171		$	19,168		$	19,482		$	19,745		$	20,503
Adjustments (post-tax): ⁽¹⁾
Nonrecurring technology project expenses		728			1,710			–			–			–
Net (gain)/loss on securities sales		143			–			219			123			–
Integration and acquisition expenses		41			–			137			250			1,804
Total non-recurring adjustments (non-GAAP)	$	912		$	1,710		$	356		$	373		$	1,804

Adjusted earnings – non-GAAP	$	23,083		$	20,878		$	19,838		$	20,118		$	22,307
Adjusted diluted earnings per share (non-GAAP)	$	0.96		$	0.87		$	0.83		$	0.84		$	0.93
Adjusted return on average assets – non-GAAP		1.23	%		1.10	%		1.05	%		1.07	%		1.17	%
Adjusted return on average common equity – non-GAAP		10.78	%		9.80	%		9.58	%		10.11	%		11.28	%


Efficiency Ratio Reconciliation
Noninterest expense – GAAP	$	54,472		$	56,297		$	53,933		$	51,391		$	53,362
Other real estate owned property income (expense)		(101	)		(240	)		(107	)		(85	)		21
Amortization of intangibles		(3,231	)		(3,314	)		(3,405	)		(3,340	)		(3,497	)
Nonrecurring technology project expense		(921	)		(2,164	)		–			–			–
Integration and acquisition expenses		(52	)		–			(174	)		(316	)		(2,283	)
Adjusted noninterest expense (non-GAAP)	$	50,167		$	50,579		$	50,247		$	47,650		$	47,603

Net interest income -GAAP	$	59,409		$	58,950		$	57,543		$	56,765		$	55,470
Effect of tax-exempt income ⁽¹⁾		753			767			1,084			596			616
Adjusted net interest income (non-GAAP)	$	60,162		$	59,717		$	58,627		$	57,361		$	56,086

Noninterest income – GAAP	$	24,864		$	26,363		$	23,023		$	22,422		$	24,478
Net (gain)/loss on securities sales		181			0			277			156			0
Adjusted noninterest income (non-GAAP)	$	25,045		$	26,363		$	23,300		$	22,578		$	24,478

Adjusted total revenue (non-GAAP)	$	85,207		$	86,080		$	81,927		$	79,939		$	80,564

Efficiency ratio (non-GAAP)		58.88	%		58.76	%		61.33	%		59.61	%		59.09	%

(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

The MIL Network –

May 1, 2025

MIL-OSI Economics: Microsoft Cloud and AI strength drives third quarter results

Source: Microsoft

Headline: Microsoft Cloud and AI strength drives third quarter results

Microsoft Cloud and AI Strength Drives Third Quarter Results

REDMOND, Wash. — April 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2025, as compared to the corresponding period of last fiscal year:

· Revenue was $70.1 billion and increased 13% (up 15% in constant currency)

· Operating income was $32.0 billion and increased 16% (up 19% in constant currency)

· Net income was $25.8 billion and increased 18% (up 19% in constant currency)

· Diluted earnings per share was $3.46 and increased 18% (up 19% in constant currency)

“Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, chairman and chief executive officer of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

“We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

Revenue in Productivity and Business Processes was $29.9 billion and increased 10% (up 13% in constant currency), with the following business highlights:

· Microsoft 365 Commercial products and cloud services revenue increased 11% (up 14% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 12% (up 15% in constant currency)

· Microsoft 365 Consumer products and cloud services revenue increased 10% (up 12% in constant currency) driven by Microsoft 365 Consumer cloud revenue growth of 10% (up 12% in constant currency)

· LinkedIn revenue increased 7% (up 8% in constant currency)

· Dynamics products and cloud services revenue increased 11% (up 13% in constant currency) driven by Dynamics 365 revenue growth of 16% (up 18% in constant currency)

Revenue in Intelligent Cloud was $26.8 billion and increased 21% (up 22% in constant currency), with the following business highlights:

· Server products and cloud services revenue increased 22% (up 24% in constant currency) driven by Azure and other cloud services revenue growth of 33% (up 35% in constant currency)

Revenue in More Personal Computing was $13.4 billion and increased 6% (up 7% in constant currency), with the following business highlights:

· Windows OEM and Devices revenue increased 3%

· Xbox content and services revenue increased 8% (up 9% in constant currency)

· Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 23% in constant currency)

Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2025.

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Environmental, Social, and Governance (ESG)

To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 30, 2026.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

	Three Months Ended March 31,
($ in millions, except per share amounts)	Revenue	Operating Income	Net Income	Diluted Earnings per Share
2024 As Reported (GAAP)	$61,858	$27,581	$21,939	$2.94
2025 As Reported (GAAP)	$70,066	$32,000	$25,824	$3.46
Percentage Change Y/Y (GAAP)	13%	16%	18%	18%
Constant Currency Impact	$(1,059)	$(703)	$(392)	$(0.05)
Percentage Change Y/Y Constant Currency	15%	19%	19%	19%

Segment Revenue Constant Currency Reconciliation

	Three Months Ended March 31,
($ in millions)	Productivity and Business Processes	Intelligent Cloud	More Personal Computing
2024 As Reported (GAAP)	$27,113	$22,141	$12,604
2025 As Reported (GAAP)	$29,944	$26,751	$13,371
Percentage Change Y/Y (GAAP)	10%	21%	6%
Constant Currency Impact	$(626)	$(308)	$(125)
Percentage Change Y/Y Constant Currency	13%	22%	7%

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

Selected Product and Service Revenue Constant Currency Reconciliation

	Three Months Ended March 31, 2025
	Percentage Change Y/Y (GAAP)	Constant Currency Impact	Percentage Change Y/Y Constant Currency
Microsoft Cloud	20%	2%	22%
Microsoft 365 Commercial products and cloud services	11%	3%	14%
Microsoft 365 Commercial cloud	12%	3%	15%
Microsoft 365 Consumer products and cloud services	10%	2%	12%
Microsoft 365 Consumer cloud	10%	2%	12%
LinkedIn	7%	1%	8%
Dynamics products and cloud services	11%	2%	13%
Dynamics 365	16%	2%	18%
Server products and cloud services	22%	2%	24%
Azure and other cloud services	33%	2%	35%
Windows OEM and Devices	3%	0%	3%
Xbox content and services	8%	1%	9%
Search and news advertising excluding traffic acquisition costs	21%	2%	23%

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

· intense competition in all of our markets that may adversely affect our results of operations;

· focus on cloud-based and AI services presenting execution and competitive risks;

· significant investments in products and services that may not achieve expected returns;

· acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

· impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

· cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

· disclosure and misuse of personal data that could cause liability and harm to our reputation;

· the possibility that we may not be able to protect information stored in our products and services from use by others;

· abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

· products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

· issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

· excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

· supply or quality problems;

· government enforcement under competition laws and new market regulation may limit how we design and market our products;

· potential consequences of trade and anti-corruption laws;

· potential consequences of existing and increasing legal and regulatory requirements;

· laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

· claims against us that may result in adverse outcomes in legal disputes;

· uncertainties relating to our business with government customers;

· additional tax liabilities;

· sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

· an inability to protect and utilize our intellectual property may harm our business and operating results;

· claims that Microsoft has infringed the intellectual property rights of others;

· damage to our reputation or our brands that may harm our business and results of operations;

· adverse economic or market conditions that may harm our business;

· catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

· exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

· the dependence of our business on our ability to attract and retain talented employees.

For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of March 31, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

**MICROSOFT CORPORATION**

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)
	Three Months Ended March 31,		Nine Months Ended March 31,
	Three Months Ended March 31,		Nine Months Ended March 31,
	2025	2024	2025	2024
Revenue:
Product	$15,319	$17,080	$46,810	$51,556
Service and other	54,747	44,778	158,473	128,839
Total revenue	70,066	61,858	205,283	180,395
Cost of revenue:
Product	3,037	4,339	10,187	13,834
Service and other	18,882	14,166	53,630	40,596
Total cost of revenue	21,919	18,505	63,817	54,430
Gross margin	48,147	43,353	141,466	125,965
Research and development	8,198	7,653	23,659	21,454
Sales and marketing	6,212	6,207	18,369	17,640
General and administrative	1,737	1,912	5,233	5,363
Operating income	32,000	27,581	94,205	81,508
Other expense, net	(623)	(854)	(3,194)	(971)
Income before income taxes	31,377	26,727	91,011	80,537
Provision for income taxes	5,553	4,788	16,412	14,437
Net income	$25,824	$21,939	$74,599	$66,100
Earnings per share:
Basic	$3.47	$2.95	$10.03	$8.90
Diluted	$3.46	$2.94	$9.99	$8.85
Weighted average shares outstanding:
Basic	7,434	7,431	7,434	7,431
Diluted	7,461	7,472	7,466	7,467

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)
	Three Months Ended March 31,		Nine Months Ended March 31,
	Three Months Ended March 31,		Nine Months Ended March 31,
	2025	2024	2025	2024
Net income	$25,824	$21,939	$74,599	$66,100
Other comprehensive income (loss), net of tax:
Net change related to derivatives	(20)	10	4	28
Net change related to investments	450	(202)	1,130	869
Translation adjustments and other	353	(294)	(377)	11
Other comprehensive income (loss)	783	(486)	757	908
Comprehensive income	$26,607	$21,453	$75,356	$67,008

BALANCE SHEETS

(In millions) (Unaudited)
	March 31, 2025	June 30, 2024
Assets
Current assets:
Cash and cash equivalents	$28,828	$18,315
Short-term investments	50,790	57,228
Total cash, cash equivalents, and short-term investments	79,618	75,543
Accounts receivable, net of allowance for doubtful accounts of $695 and $830	51,700	56,924
Inventories	848	1,246
Other current assets	24,478	26,021
Total current assets	156,644	159,734
Property and equipment, net of accumulated depreciation of $87,074 and $76,421	183,939	135,591
Operating lease right-of-use assets	24,475	18,961
Equity and other investments	16,035	14,600
Goodwill	119,329	119,220
Intangible assets, net	23,968	27,597
Other long-term assets	38,234	36,460
Total assets	$562,624	$512,163
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$26,250	$21,996
Short-term debt	0	6,693
Current portion of long-term debt	2,999	2,249
Accrued compensation	10,579	12,564
Short-term income taxes	6,805	5,017
Short-term unearned revenue	44,636	57,582
Other current liabilities	22,937	19,185
Total current liabilities	114,206	125,286
Long-term debt	39,882	42,688
Long-term income taxes	25,061	27,931
Long-term unearned revenue	2,840	2,602
Deferred income taxes	2,522	2,618
Operating lease liabilities	17,686	15,497
Other long-term liabilities	38,536	27,064
Total liabilities	240,733	243,686
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital – shares authorized 24,000; outstanding 7,434 and 7,434	106,965	100,923
Retained earnings	219,759	173,144
Accumulated other comprehensive loss	(4,833)	(5,590)
Total stockholders’ equity	321,891	268,477
Total liabilities and stockholders’ equity	$562,624	$512,163

CASH FLOWS STATEMENTS

(In millions) (Unaudited)
	Three Months Ended March 31,		Nine Months Ended March 31,
	Three Months Ended March 31,		Nine Months Ended March 31,
	2025	2024	2025	2024
Operations
Net income	$25,824	$21,939	$74,599	$66,100
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other	8,740	6,027	22,950	15,907
Stock-based compensation expense	2,980	2,703	8,901	8,038
Net recognized losses (gains) on investments and derivatives	(298)	49	553	261
Deferred income taxes	(2,244)	(1,323)	(4,835)	(3,593)
Changes in operating assets and liabilities:
Accounts receivable	(2,461)	(2,028)	5,598	6,055
Inventories	52	260	390	1,229
Other current assets	1,076	951	642	880
Other long-term assets	(518)	(2,137)	(3,368)	(5,577)
Accounts payable	1,179	648	1,221	(659)
Unearned revenue	(1,032)	(645)	(12,923)	(10,309)
Income taxes	1,298	2,622	(1,081)	2,493
Other current liabilities	2,839	2,803	576	215
Other long-term liabilities	(391)	48	292	313
Net cash from operations	37,044	31,917	93,515	81,353
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net	0	(3,810)	(5,746)	6,392
Proceeds from issuance of debt	0	6,352	0	24,198
Repayments of debt	(2,250)	(11,589)	(3,216)	(16,005)
Common stock issued	546	522	1,508	1,468
Common stock repurchased	(4,781)	(4,213)	(13,874)	(13,044)
Common stock cash dividends paid	(6,169)	(5,572)	(17,913)	(16,197)
Other, net	(382)	(498)	(1,614)	(1,006)
Net cash used in financing	(13,036)	(18,808)	(40,855)	(14,194)
Investing
Additions to property and equipment	(16,745)	(10,952)	(47,472)	(30,604)
Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets	(981)	(1,575)	(4,235)	(67,790)
Purchases of investments	(4,474)	(2,183)	(8,144)	(14,901)
Maturities of investments	6,721	3,350	11,461	23,218
Sales of investments	2,161	1,941	6,688	8,871
Other, net	604	(1,281)	(325)	(916)
Net cash used in investing	(12,714)	(10,700)	(42,027)	(82,122)
Effect of foreign exchange rates on cash and cash equivalents	52	(80)	(120)	(107)
Net change in cash and cash equivalents	11,346	2,329	10,513	(15,070)
Cash and cash equivalents, beginning of period	17,482	17,305	18,315	34,704
Cash and cash equivalents, end of period	$28,828	$19,634	$28,828	$19,634

SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)
	Three Months Ended March 31,		Nine Months Ended March 31,
	Three Months Ended March 31,		Nine Months Ended March 31,
	2025	2024	2025	2024
Revenue
Productivity and Business Processes	$29,944	$27,113	$87,698	$78,193
Intelligent Cloud	26,751	22,141	76,387	63,679
More Personal Computing	13,371	12,604	41,198	38,523
Total	$70,066	$61,858	$205,283	$180,395
Operating Income
Productivity and Business Processes	$17,379	$15,143	$50,780	$43,955
Intelligent Cloud	11,095	9,515	32,449	27,978
More Personal Computing	3,526	2,923	10,976	9,575
Total	$32,000	$27,581	$94,205	$81,508

We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

MIL OSI Economics –

May 1, 2025

MIL-OSI USA: Wyden, Colleagues Introduce Bipartisan Bill to Tackle Housing Affordability Crisis

US Senate News:

Source: United States Senator Ron Wyden (D-Ore)

April 30, 2025

Washington D.C.—U.S. Senator Ron Wyden, D-Ore today joined Senate colleagues in reintroducing a bipartisan bill that would expand the existing, successful Low-Income Housing Tax Credit and increase the supply of affordable housing units in Oregon and nationwide.

“It’s time for Congress to meet the housing crisis with the bold solutions it demands and that starts with increasing housing supply,” said Wyden, Ranking Member of the Senate Finance Committee. “Our bill will deliver some much-needed relief to families by supporting existing, successful federal housing programs and building over one million new units of affordable housing. I am all in to bring down costs and make housing more affordable for everyone no matter your zip code.”

Since 1986, the Housing Credit has paid for 90% of the federally-funded affordable housing construction across the country, and has financed 4 million affordable homes. The National Association of Homebuilders reports that building materials have increased in cost by an average of 5.5% due to enacted or anticipated tariffs since January 2025, underscoring the urgent need for this legislation. Moreover, according to the association, 60% of builders reported that as a result of tariffs, their suppliers have already increased or announced increases of material prices – with tariffs increasing the cost of a typical home by $10,900.

The Affordable Housing Credit Improvement Act would support the financing of new affordable homes by:

Increasing the amount of credits allocated to each state. The legislation would increase the number of credits available to states by 50 percent for the next two years and make permanent the temporary 12.5 percent increase secured in 2018 —which has already helped build more than 59,000 additional affordable housing units nationwide.
Increasing the number of affordable housing projects that can be built using private activity bonds. This provision would stabilize financing for workforce housing projects built using private activity bonds by decreasing the amount of private activity bonds needed to secure the Housing Credit. As a result, projects would have to carry less debt, and more projects would be eligible to receive the credit.
Improving the Housing Credit program to better serve at-risk and underserved communities. The legislation would also make improvements to better serve veterans, victims of domestic violence, formerly homeless students, Native American communities, and rural Americans.

This legislation builds on Wyden’s long history of working to address the national housing crisis. In 2023, he introduced his comprehensive Decent, Affordable, Safe Housing for All (DASH) Act, which would expand essential services to ensure permanent housing stability, create a new down payment tax credit for first-time homebuyers, and expand the production of affordable housing for low-income and middle-income families.

In addition to Wyden, the bill was co-led by Sens. Maria Cantwell, D-Wash., Todd Young, R-Ind., and Marsha Blackburn, R-Tenn. It has 30 total original cosponsors, with an equal split of Democrats and Republicans.

MIL OSI USA News –

May 1, 2025

MIL-OSI Security: Former Salem County Resident Admits Filing False Tax Returns

Source: Office of United States Attorneys

CAMDEN, N.J. – A former resident of Salem County admitted to filing false tax returns and causing a tax loss of approximately $590,000, U.S. Attorney Alina Habba announced.

Michael DiPaolo, Jr., 47, of Newtown Square, Pennsylvania, pleaded guilty before U.S. District Judge Edward S. Kiel to an information charging him with one count of filing a false income tax return.

According to documents filed in this case and statements made in court:

From 2018 through 2022, DiPaolo was the manager of a restaurant in Salem County, New Jersey, and received income from the restaurant. DiPaolo received and failed to report more than $1,700,000 in income from 2018 through 2022. By failing to report the income, DiPaolo avoided approximately $590,000 in federal income taxes.

The count of filing a false tax return is punishable by a maximum of 3 years in prison and a maximum fine of $250,000, or twice the gross loss or gain, whichever is greatest.

Sentencing is scheduled for September 3, 2025.

U.S. Attorney Habba credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to this guilty plea.

The government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division.

###

Defense counsel:

Michael S. Adelman, Esq., Cherry Hill, New Jersey

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Real Estate Developer Sentenced to More Than Six Years in Prison for Embezzling Millions From the Failed Washington Federal Bank in Chicago

Source: Office of United States Attorneys

CHICAGO — A federal judge in Chicago has sentenced a real estate developer to more than six years in prison for participating in a conspiracy that embezzled millions of dollars from the failed Washington Federal Bank for Savings in Chicago.

Washington Federal, which was based in Chicago’s Bridgeport neighborhood, was shut down in 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. For more than a decade, developer MIROSLAW KREJZA was part of a conspiracy that embezzled millions of dollars in bank funds. The embezzled funds were disguised as purported real estate development loan disbursements to Krejza and others. The conspirators were not required to repay these purported loans, and they never did.

A federal jury in 2023 convicted Krejza, 67, of Chicago, of conspiring to commit embezzlement and falsify bank records, and aiding and abetting embezzlement by bank employees. On Tuesday, U.S. District Judge Virginia M. Kendall sentenced Krejza to six years and eight months in prison and ordered him to pay more than $2 million in restitution.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Vincent R. Zehme, Special Agent-in-Charge of the Chicago Region of the FDIC’s Office of Inspector General; Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI; Machelle L. Jindra, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development’s Office of Inspector General in Chicago; Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Korey Brinkman, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Andrea Peacock, Special Agent-in-Charge of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Kristin Pinkston, and Jeffrey Snell, and Special Assistant U.S. Attorney Brian Netols.

The federal investigation into the collapse of Washington Federal led to criminal charges against 16 defendants, including the bank’s Chief Financial Officer, Treasurer, and other high-ranking employees, for conspiring to embezzle at least $31 million in bank funds. Krejza and three others were convicted after jury trials, while ten defendants pleaded guilty and two entered into deferred prosecution agreements.

Much of the embezzled money was transferred to Chicago attorney ROBERT M. KOWALSKI, real estate developer MAREK MATCZUK, and other individuals outside the bank without all of the required documentation and often without any documentation whatsoever. A jury convicted Robert Kowalski on bankruptcy fraud, bank embezzlement, and tax charges, while Matczuk was convicted of conspiring to commit embezzlement and falsify bank records, as well as aiding and abetting embezzlement by bank employees. Judge Kendall last year sentenced Robert Kowalski to 25 years in federal prison and Matczuk to nearly 13 years.

Robert Kowalski’s sister, JAN R. KOWALSKI, also an attorney, pleaded guilty and was sentenced to more than three years in prison for fraudulently enabling her brother to conceal more than $357,000 from creditors and the trustee in his bankruptcy case.

Three former members of Washington Federal’s Board of Directors pleaded guilty to conspiring to falsify bank records to deceive the OCC. WILLIAM M. MAHON was sentenced to 18 months in prison; GEORGE F. KOZDEMBA was sentenced to a year in prison; and JANICE M. WESTON was sentenced to three months in prison.

MIL Security OSI –

May 1, 2025

MIL-OSI: National Fuel Reports Second Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

WILLIAMSVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2025 fiscal year.

FISCAL 2025 SECOND QUARTER SUMMARY

GAAP net income of $216 million, or $2.37 per share, an increase of 32% per share compared to the prior year.
Adjusted operating results of $218 million, or $2.39 per share, an increase of 34% per share compared to the prior year. See non-GAAP reconciliation on page 2.
Seneca produced a record 105.5 Bcf of natural gas, an increase of 3% from the prior year and 8% sequentially, largely due to strong results from pads recently turned in line in the Eastern Development Area (“EDA”).
Utility segment net income of $63.5 million, or $0.70 per share, an increase of 44% per share compared to the prior year, primarily as a result of the New York jurisdiction’s 2024 rate settlement, which led to its first base rate increase since 2017.
Pipeline & Storage segment net income of $31.7 million, or $0.35 per share, an increase of 5% per share compared to the prior year. In addition, Empire Pipeline reached an agreement with its customers to amend its existing rate settlement, which was approved by the FERC on March 17, 2025, with new rates effective November 1, 2025.
The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.75 to $7.05.

MANAGEMENT COMMENTS

David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “During our second quarter, National Fuel built upon its positive momentum which, along with the tailwind of higher natural gas price realizations, drove a 32% increase in earnings per share over the prior year.

“Our integrated Appalachian natural gas development program, focused on the highly prolific EDA, continues to deliver strong operational results and improving capital efficiency. Seneca’s recent well results exhibited the highest productivity we’ve seen to date, giving us further confidence in our deep, high-quality well inventory, and allowing us to increase our production guidance for fiscal 2025. On the regulated side of the business, we saw significant earnings growth during the quarter, driven by the ongoing impact of positive rate case outcomes that balance the continued investment in modernizing our infrastructure with the goal of maintaining affordable rates for our customers.

“National Fuel’s integrated natural gas business, track record of strong operational execution, and consistent approach to managing risk, collectively position us well to navigate an uncertain global economic backdrop. As such, we remain confident in our ability to provide strong returns, achieve our long-term growth targets, and continue to deliver shareholder value.”

RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS


	Three Months Ended March 31,
	(Thousands)						(Per Share)
		2025			2024			2025			2024
Reported GAAP Earnings	$	216,358		$	166,272		$	2.37		$	1.80
Items impacting comparability:
Premiums paid on early redemption of debt (E&P / Midstream)		2,385			—			0.03			—
Tax impact of premiums paid on early redemption of debt		(642	)		—			(0.01	)		—
Unrealized (gain) loss on derivative asset (E&P)		335			(536	)		0.00			0.00
Tax impact of unrealized (gain) loss on derivative asset		(90	)		147			0.00			0.00
Unrealized (gain) loss on other investments (Corporate / All Other)		(17	)		(769	)		0.00			(0.01	)
Tax impact of unrealized (gain) loss on other investments		4			162			0.00			0.00
Adjusted Operating Results	$	218,333		$	165,276		$	2.39		$	1.79

FISCAL 2025 GUIDANCE UPDATE

National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which is now expected to be within a range of $6.75 to $7.05, an increase of $0.15 at the midpoint of the Company’s prior guidance range. This updated range incorporates our second quarter results as well as higher expected production and lower unit costs in the Exploration and Production segment for the remainder of the fiscal year.

The Company is assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining six months of fiscal 2025 (no change from previous guidance), which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

NYMEX Assumption *Remaining 6 months* ($/MMBtu)		Fiscal 2025 Adjusted Earnings Per Share Sensitivities
$3.00		$6.50 – $6.80
$3.50		$6.75 – $7.05
$4.00		$7.05 – $7.35

The Company’s other fiscal 2025 guidance assumptions remain largely unchanged as detailed in the table on page 7.

FINANCING ACTIVITIES UPDATE

In February 2025, the Company issued $1 billion of new five- and ten-year notes (split in two equal tranches) to refinance the early redemption of $950 million of notes that were scheduled to mature in July 2025 and January 2026. In addition, the Company placed $50 million (plus interest) in trust for the benefit of holders of long-term debt issued under the Company’s 1974 Indenture and scheduled to mature in June 2025. Placing these funds in trust discharged the 1974 Indenture, relieving the Company from its obligations to comply with the indenture’s covenants. In connection with these transactions, the Company recognized an after-tax loss of $1.7 million, which is presented as an item impacting comparability for the quarter.

DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

The following earnings discussion of each operating segment for the quarter ended March 31, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2025 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

Upstream Business

Exploration and Production Segment

The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

	Three Months Ended
	March 31,
(in thousands)		2025		2024		Variance
GAAP Earnings	$	97,828	$	62,065		$	35,763

Premiums paid on early redemption of debt, net of tax		1,045		—			1,045
Unrealized (gain) loss on derivative asset (2022 CA asset sale), net of tax		245		(389	)		634
Adjusted Operating Results	$	99,118	$	61,676		$	37,442

Adjusted EBITDA	$	214,350	$	172,068		$	42,282

Seneca’s second quarter GAAP earnings increased $35.8 million versus the prior year. GAAP earnings included a $1.0 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Seneca’s share of premiums paid by the Company associated with its long-term debt redemptions.

Excluding items impacting comparability, Seneca’s adjusted operating results in the second quarter increased $37.4 million primarily due to higher realized natural gas prices and natural gas production, as well as lower per unit operating expenses.

During the second quarter, Seneca produced 105.5 Bcf of natural gas, an increase of 2.6 Bcf, or 3%, from the prior year, and 7.8 Bcf, or 8%, higher compared to the fiscal 2025 first quarter. Two highly prolific pads turned in line this year in the EDA (Tioga Utica) were the main drivers behind these increases in production.

Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.94 per Mcf, an increase of $0.38 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania.

	Three Months Ended
	March 31,
(Cost per Mcf)		2025		2024	Variance
Lease Operating and Transportation Expense (“LOE”)	$	0.67	$	0.68	$	(0.01	)
General and Administrative Expense (“G&A”)	$	0.18	$	0.17	$	0.01
Taxes and Other	$	0.07	$	0.06	$	0.01
Total Cash Operating Costs	$	0.92	$	0.91	$	0.01
Depreciation, Depletion and Amortization Expense (“DD&A”)	$	0.61	$	0.71	$	(0.10	)
Total Operating Costs	$	1.53	$	1.62	$	(0.09	)

On a per unit basis, the second quarter total cash operating costs were up slightly compared to the prior year as other taxes increased as a result of a higher Impact Fee in Pennsylvania due to the increase in NYMEX natural gas prices. LOE included $59 million ($0.56 per Mcf), or 84% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.61 per Mcf, a decrease of $0.10 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base.

Midstream Businesses

Pipeline and Storage Segment

The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

	Three Months Ended
	March 31,
(in thousands)		2025		2024	Variance
GAAP Earnings	$	31,707	$	30,737	$	970

Adjusted EBITDA	$	70,169	$	70,033	$	136

The Pipeline and Storage segment’s second quarter GAAP earnings increased $1.0 million versus the prior year primarily due to higher operating revenues. The increase in operating revenues of $1.6 million, or 1%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024.

Empire Rate Case Update

On March 17, 2025, FERC approved an amendment to Empire’s 2019 rate case settlement, which provides for modest unit rate reductions for Empire’s transportation services. Based on current contracts, this settlement amendment is estimated to decrease Empire’s revenues on a yearly basis by approximately $0.5 million with new rates effective November 1, 2025. Under the amendment, Empire may not file a new rate case before April 30, 2027, and is required to file a rate case by May 31, 2031.

Gathering Segment

The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

	Three Months Ended
	March 31,
(in thousands)		2025		2024	Variance
GAAP Earnings	$	26,342	$	28,706	$	(2,364	)
Premiums paid on early redemption of debt, net of tax		698		—		698
Adjusted Operating Results	$	27,040	$	28,706	$	(1,666	)

Adjusted EBITDA	$	52,748	$	53,103	$	(355	)

The Gathering segment’s second quarter GAAP earnings decreased $2.4 million versus the prior year as higher operating revenues were more than offset by higher O&M and DD&A expense. GAAP earnings also included a $0.7 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Gathering’s share of premiums paid by the Company associated with its long-term debt redemptions.

Operating revenues increased $1.0 million, or 2%, primarily due to an increase in throughput from Seneca’s new wells in Tioga County. While O&M expense increased $1.5 million, the per unit rate of $0.09 per Mcf remained unchanged. DD&A expense increased $1.2 million primarily due to higher average depreciable plant in service compared to the prior year.

Downstream Business

Utility Segment

The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

	Three Months Ended
	March 31,
(in thousands)		2025		2024	Variance
GAAP Earnings	$	63,544	$	44,739	$	18,805

Adjusted EBITDA	$	95,270	$	78,326	$	16,944

The Utility segment’s second quarter GAAP earnings increased $18.8 million, or 42%, primarily as a result of the implementation of the recently approved rate case settlement in the Utility’s New York jurisdiction, which became effective October 1, 2024.

For the quarter, customer margin (operating revenues less purchased gas sold) increased $22.2 million, primarily due to the New York rate case settlement. Other income increased $10.8 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income.

O&M expense increased by $4.2 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. Further, interest expense increased $2.4 million primarily due to a higher average amount of net borrowings.

Corporate and All Other

The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.1 million in the current year second quarter, compared to combined earnings of less than $0.1 million in the prior year. The reduction in earnings during the second quarter was primarily driven by higher interest expense due to a higher average amount of net borrowings. A decrease in investment income on marketable securities and corporate-owned life insurance policies also contributed to the earnings reduction.

EARNINGS TELECONFERENCE

A conference call to discuss the results will be held on Thursday, May 1, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, May 8, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 458634.

National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
GUIDANCE SUMMARY

As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the remaining six months ending September 30, 2025, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

	Previous FY 2025 Guidance	Updated FY 2025 Guidance

Consolidated Adjusted Earnings per Share	$6.50 to $7.00	$6.75 to $7.05
Consolidated Effective Tax Rate	~ 25%	~ 25%

Capital Expenditures (Millions)
Exploration and Production	$495 – $515	$495 – $515
Pipeline and Storage	$130 – $150	$130 – $150
Gathering	$95 – $110	$95 – $110
Utility	$165 – $185	$165 – $185
Consolidated Capital Expenditures	$885 – $960	$885 – $960

Exploration and Production Segment Guidance

Commodity Price Assumptions (remaining six months)
NYMEX natural gas price	$3.50 /MMBtu	$3.50 /MMBtu
Appalachian basin spot price	$2.90 /MMBtu	$2.60 /MMBtu
Realized natural gas prices, after hedging ($/Mcf)	$2.77 – $2.81	$2.72 – $2.76

Production (Bcf)	410 to 425	415 to 425

E&P Operating Costs($/Mcf)
LOE	$0.68 – $0.70	$0.68 – $0.69
G&A	$0.18 – $0.19	$0.18 – $0.19
DD&A	$0.63 – $0.67	$0.63 – $0.65

Other Business Segment Guidance(Millions)
Gathering Segment Revenues	$250 – $260	$250 – $260
Pipeline and Storage Segment Revenues	$415 – $435	$415 – $435

Utility Segment Guidance(Millions)
Customer Margin*	$445 – $465	$445 – $465
O&M Expense	$240 – $250	$240 – $245
Non-Service Pension & OPEB Income	$23 – $27	$23 – $27

* Customer Margin is defined as Operating Revenues less Purchased Gas Expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
QUARTER ENDED MARCH 31, 2025
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*

Second quarter 2024 GAAP earnings	$	62,065		$	30,737		$	28,706		$	44,739		$	25		$	166,272
Items impacting comparability:
Unrealized (gain) loss on derivative asset		(536	)														(536	)
Tax impact of unrealized (gain) loss on derivative asset		147															147
Unrealized (gain) loss on other investments														(769	)		(769	)
Tax impact of unrealized (gain) loss on other investments														162			162
Second quarter 2024 adjusted operating results		61,676			30,737			28,706			44,739			(582	)		165,276
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		5,322															5,322
Higher (lower) realized natural gas prices, after hedging		31,956															31,956
Midstream Revenues
Higher (lower) operating revenues					1,227			819									2,046
Downstream Margins***
Impact of usage and weather											3,011						3,011
Impact of new rates in New York											14,577						14,577
Higher (lower) other operating revenues											(924	)					(924	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(1,196	)														(1,196	)
Lower (higher) operating expenses		(1,855	)		(1,248	)		(1,168	)		(3,330	)					(7,601	)
Lower (higher) property, franchise and other taxes		(948	)														(948	)
Lower (higher) depreciation / depletion		6,973			745			(966	)		(685	)					6,067
Other Income (Expense)
Higher (lower) other income											8,545			612			9,157
(Higher) lower interest expense					331			(891	)		(1,895	)		(2,902	)		(5,357	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(2,331	)		241			463			(545	)		(159	)		(2,331	)
All other / rounding		(479	)		(326	)		77			51			(45	)		(722	)
Second quarter 2025 adjusted operating results		99,118			31,707			27,040			63,544			(3,076	)		218,333
Items impacting comparability:
Premiums paid on early redemption of debt		(1,430	)					(955	)								(2,385	)
Tax impact of premiums paid on early redemption of debt		385						257									642
Unrealized gain (loss) on derivative asset		(335	)														(335	)
Tax impact of unrealized gain (loss) on derivative asset		90															90
Unrealized gain (loss) on other investments														17			17
Tax impact of unrealized gain (loss) on other investments														(4	)		(4	)
Second quarter 2025 GAAP earnings	$	97,828		$	31,707		$	26,342		$	63,544		$	(3,063	)	$	216,358

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
QUARTER ENDED MARCH 31, 2025
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*

Second quarter 2024 GAAP earnings per share	$	0.67		$	0.33		$	0.31		$	0.48		$	0.01		$	1.80
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		—															—
Unrealized (gain) loss on other investments, net of tax														(0.01	)		(0.01	)
Second quarter 2024 adjusted operating results per share		0.67			0.33			0.31			0.48			—			1.79
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		0.06															0.06
Higher (lower) realized natural gas prices, after hedging		0.35															0.35
Midstream Revenues
Higher (lower) operating revenues					0.01			0.01									0.02
Downstream Margins***
Impact of usage and weather											0.03						0.03
Impact of new rates in New York											0.16						0.16
Higher (lower) other operating revenues											(0.01	)					(0.01	)
Operating Expenses
Lower (higher) lease operating and transportation expenses		(0.01	)														(0.01	)
Lower (higher) operating expenses		(0.02	)		(0.01	)		(0.01	)		(0.04	)					(0.08	)
Lower (higher) property, franchise and other taxes		(0.01	)														(0.01	)
Lower (higher) depreciation / depletion		0.09			0.01			(0.01	)		(0.01	)					0.08
Other Income (Expense)
Higher (lower) other income											0.09			0.01			0.10
(Higher) lower interest expense					—			(0.01	)		(0.02	)		(0.03	)		(0.06	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(0.03	)		—			0.01			(0.01	)		—			(0.03	)
All other / rounding		(0.02	)		0.01			—			0.03			(0.02	)		—
Second quarter 2025 adjusted operating results per share		1.08			0.35			0.30			0.70			(0.04	)		2.39
Items impacting comparability:
Premiums paid on early redemption of debt, net of tax		(0.01	)					(0.01	)								(0.02	)
Unrealized gain (loss) on derivative asset, net of tax		—															—
Unrealized gain (loss) on other investments, net of tax														—			—
Second quarter 2025 GAAP earnings per share	$	1.07		$	0.35		$	0.29		$	0.70		$	(0.04	)	$	2.37

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
SIX MONTHS ENDED MARCH 31, 2025
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
(Thousands of Dollars)	Production			Storage			Gathering			Utility			All Other			Consolidated*
Six months ended March 31, 2024 GAAP earnings	$	114,548		$	54,792		$	57,531		$	71,289		$	1,132		$	299,292
Items impacting comparability:
Unrealized (gain) loss on derivative asset		3,662															3,662
Tax impact of unrealized (gain) loss on derivative asset		(1,004	)														(1,004	)
Unrealized (gain) loss on other investments														(1,818	)		(1,818	)
Tax impact of unrealized (gain) loss on other investments														382			382
Six months ended March 31, 2024 adjusted operating results		117,206			54,792			57,531			71,289			(304	)		300,514
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		(817	)														(817	)
Higher (lower) realized natural gas prices, after hedging		33,964															33,964
Midstream Revenues
Higher (lower) operating revenues					10,865			(332	)								10,533
Downstream Margins***
Impact of usage and weather											2,685						2,685
Impact of new rates in New York											22,442						22,442
Higher (lower) other operating revenues											(1,364	)					(1,364	)
Operating Expenses
Lower (higher) operating expenses		(1,742	)		(2,105	)		(1,108	)		(4,575	)					(9,530	)
Lower (higher) property, franchise and other taxes		(746	)														(746	)
Lower (higher) depreciation / depletion		13,816			452			(1,802	)		(1,309	)					11,157
Other Income (Expense)
Higher (lower) other income		(1,888	)		(603	)					11,720			2,300			11,529
(Higher) lower interest expense					328			(1,271	)		(3,679	)		(3,165	)		(7,787	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(2,338	)		(246	)		905			(1,128	)		43			(2,764	)
All other / rounding		(226	)		679			262			(38	)		(219	)		458
Six months ended March 31, 2025 adjusted operating results		157,229			64,162			54,185			96,043			(1,345	)		370,274
Items impacting comparability:
Impairment of assets		(141,802	)														(141,802	)
Tax impact of impairment of assets		37,169															37,169
Premiums paid on early redemption of debt		(1,430	)					(955	)								(2,385	)
Tax impact of premiums paid on early redemption of debt		385						257									642
Unrealized gain (loss) on derivative asset		(684	)														(684	)
Tax impact of unrealized gain (loss) on derivative asset		184															184
Unrealized gain (loss) on other investments														(2,600	)		(2,600	)
Tax impact of unrealized gain (loss) on other investments														546			546
Six months ended March 31, 2025 GAAP earnings	$	51,051		$	64,162		$	53,487		$	96,043		$	(3,399	)	$	261,344

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
SIX MONTHS ENDED MARCH 31, 2025
(Unaudited)

	Upstream			Midstream						Downstream

	Exploration &			Pipeline &									Corporate /
	Production			Storage			Gathering			Utility			All Other			Consolidated*
Six months ended March 31, 2024 GAAP earnings per share	$	1.24		$	0.59		$	0.62		$	0.77		$	0.02		$	3.24
Items impacting comparability:
Unrealized (gain) loss on derivative asset, net of tax		0.03															0.03
Unrealized (gain) loss on other investments, net of tax														(0.02	)		(0.02	)
Six months ended March 31, 2024 adjusted operating results per share		1.27			0.59			0.62			0.77			—			3.25
Drivers of adjusted operating results**
Upstream Revenues
Higher (lower) natural gas production		(0.01	)														(0.01	)
Higher (lower) realized natural gas prices, after hedging		0.37															0.37
Midstream Revenues
Higher (lower) operating revenues					0.12			—									0.12
Downstream Margins***
Impact of usage and weather											0.03						0.03
Impact of new rates in New York											0.25						0.25
Higher (lower) other operating revenues											(0.01	)					(0.01	)
Operating Expenses
Lower (higher) operating expenses		(0.02	)		(0.02	)		(0.01	)		(0.05	)					(0.10	)
Lower (higher) property, franchise and other taxes		(0.01	)														(0.01	)
Lower (higher) depreciation / depletion		0.15			—			(0.02	)		(0.01	)					0.12
Other Income (Expense)
Higher (lower) other income		(0.02	)		(0.01	)					0.13			0.03			0.13
(Higher) lower interest expense					—			(0.01	)		(0.04	)		(0.03	)		(0.08	)
Income Taxes
Lower (higher) income tax expense / effective tax rate		(0.03	)		—			0.01			(0.01	)		—			(0.03	)
All other / rounding		0.02			0.02			0.01			(0.01	)		(0.01	)		0.03
Six months ended March 31, 2025 adjusted operating results per share		1.72			0.70			0.60			1.05			(0.01	)		4.06
Items impacting comparability:
Impairment of assets, net of tax		(1.14	)														(1.14	)
Premiums paid on early redemption of debt, net of tax		(0.01	)					(0.01	)								(0.02	)
Unrealized gain (loss) on derivative asset, net of tax		(0.01	)														(0.01	)
Unrealized gain (loss) on other investments, net of tax														(0.02	)		(0.02	)
Rounding														(0.01	)		(0.01	)
Six months ended March 31, 2025 GAAP earnings per share	$	0.56		$	0.70		$	0.59		$	1.05		$	(0.04	)	$	2.86

* Amounts do not reflect intercompany eliminations.
** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
*** Downstream margin defined as operating revenues less purchased gas expense.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

(Thousands of Dollars, except per share amounts)
	Three Months Ended						Six Months Ended
	March 31,						March 31,
	(Unaudited)						(Unaudited)
SUMMARY OF OPERATIONS		2025			2024			2025			2024
Operating Revenues:
Utility Revenues	$	343,574		$	290,198		$	571,998		$	492,119
Exploration and Production and Other Revenues		311,958			264,614			560,818			518,633
Pipeline and Storage and Gathering Revenues		74,418			75,127			146,616			144,549
		729,950			629,939			1,279,432			1,155,301
Operating Expenses:
Purchased Gas		135,338			105,940			200,675			162,491
Operation and Maintenance:
Utility		63,447			59,288			118,691			112,993
Exploration and Production and Other		35,059			32,794			68,600			67,620
Pipeline and Storage and Gathering		42,363			39,340			78,304			74,303
Property, Franchise and Other Taxes		25,214			23,019			47,270			45,434
Depreciation, Depletion and Amortization		111,277			118,935			220,647			234,725
Impairment of Assets		—			—			141,802			—
		412,698			379,316			875,989			697,566

Operating Income		317,252			250,623			403,443			457,735

Other Income (Expense):
Other Income (Deductions)		15,232			6,070			22,952			9,801
Interest Expense on Long-Term Debt		(39,662	)		(28,453	)		(73,024	)		(56,915	)
Other Interest Expense		(5,095	)		(6,636	)		(9,476	)		(12,910	)

Income Before Income Taxes		287,727			221,604			343,895			397,711

Income Tax Expense		71,369			55,332			82,551			98,419

Net Income Available for Common Stock	$	216,358		$	166,272		$	261,344		$	299,292

Earnings Per Common Share
Basic	$	2.39		$	1.81		$	2.88		$	3.25
Diluted	$	2.37		$	1.80		$	2.86		$	3.24

Weighted Average Common Shares:
Used in Basic Calculation		90,500,162			92,114,415			90,640,333			92,011,772
Used in Diluted Calculation		91,176,327			92,512,447			91,312,334			92,478,604

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

	March 31,			September 30,
(Thousands of Dollars)		2025			2024
ASSETS
Property, Plant and Equipment	$	14,834,817		$	14,524,798
Less – Accumulated Depreciation, Depletion and Amortization		7,487,618			7,185,593
Net Property, Plant and Equipment		7,347,199			7,339,205
Current Assets:
Cash and Temporary Cash Investments		39,954			38,222
Cash Held in Trust for Bondholders		51,352			—
Receivables – Net		291,132			127,222
Unbilled Revenue		49,077			15,521
Gas Stored Underground		6,413			35,055
Materials and Supplies – at average cost		48,451			47,670
Unrecovered Purchased Gas Costs		3,562			—
Other Current Assets		78,532			92,229
Total Current Assets		568,473			355,919
Other Assets:
Recoverable Future Taxes		88,623			80,084
Unamortized Debt Expense		7,166			5,604
Other Regulatory Assets		118,800			108,022
Deferred Charges		69,572			69,662
Other Investments		71,958			81,705
Goodwill		5,476			5,476
Prepaid Pension and Post-Retirement Benefit Costs		194,325			180,230
Fair Value of Derivative Financial Instruments		45			87,905
Other		8,326			5,958
Total Other Assets		564,291			624,646
Total Assets	$	8,479,963		$	8,319,770
CAPITALIZATION AND LIABILITIES
Capitalization:
Comprehensive Shareholders’ Equity
Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and
Outstanding – 90,397,698 Shares and 91,005,993 Shares, Respectively	$	90,398		$	91,006
Paid in Capital		1,042,822			1,045,487
Earnings Reinvested in the Business		1,855,366			1,727,326
Accumulated Other Comprehensive Loss		(222,975	)		(15,476	)
Total Comprehensive Shareholders’ Equity		2,765,611			2,848,343
Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs		2,381,126			2,188,243
Total Capitalization		5,146,737			5,036,586
Current and Accrued Liabilities:
Notes Payable to Banks and Commercial Paper		208,400			90,700
Current Portion of Long-Term Debt		350,000			500,000
Accounts Payable		127,611			165,068
Amounts Payable to Customers		34,393			42,720
Dividends Payable		46,555			46,872
Interest Payable on Long-Term Debt		19,454			27,247
Customer Advances		—			19,373
Customer Security Deposits		30,358			36,265
Other Accruals and Current Liabilities		184,925			162,903
Fair Value of Derivative Financial Instruments		201,464			4,744
Total Current and Accrued Liabilities		1,203,160			1,095,892
Other Liabilities:
Deferred Income Taxes		1,072,436			1,111,165
Taxes Refundable to Customers		302,293			305,645
Cost of Removal Regulatory Liability		300,256			292,477
Other Regulatory Liabilities		140,828			151,452
Other Post-Retirement Liabilities		3,404			3,511
Asset Retirement Obligations		193,802			203,006
Other Liabilities		117,047			120,036
Total Other Liabilities		2,130,066			2,187,292
Commitments and Contingencies		—			—
Total Capitalization and Liabilities	$	8,479,963		$	8,319,770

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
	March 31,
(Thousands of Dollars)		2025			2024

Operating Activities:
Net Income Available for Common Stock	$	261,344		$	299,292
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Impairment of Assets		141,802			—
Depreciation, Depletion and Amortization		220,647			234,725
Deferred Income Taxes		25,787			65,187
Premiums Paid on Early Redemption of Debt		2,385			—
Stock-Based Compensation		10,487			10,477
Other		14,317			11,874
Change in:
Receivables and Unbilled Revenue		(197,553	)		(50,123	)
Gas Stored Underground and Materials and Supplies		27,861			25,675
Unrecovered Purchased Gas Costs		(3,562	)		—
Other Current Assets		13,737			15,201
Accounts Payable		17,322			(15,641	)
Amounts Payable to Customers		(8,327	)		13,327
Customer Advances		(19,373	)		(21,003	)
Customer Security Deposits		(5,907	)		1,836
Other Accruals and Current Liabilities		21,528			26,927
Other Assets		(20,282	)		(22,165	)
Other Liabilities		(28,343	)		(9,328	)
Net Cash Provided by Operating Activities	$	473,870		$	586,261

Investing Activities:
Capital Expenditures	$	(434,260	)	$	(481,958	)
Other		8,881			(1,189	)
Net Cash Used in Investing Activities	$	(425,379	)	$	(483,147	)

Financing Activities:
Changes in Notes Payable to Banks and Commercial Paper		117,700			(8,600	)
Shares Repurchased Under Repurchase Plan		(50,471	)		(4,230	)
Reduction of Long-Term Debt		(954,086	)		—
Net Proceeds From Issuance of Long-Term Debt		989,019			—
Dividends Paid on Common Stock		(93,543	)		(91,048	)
Net Repurchases of Common Stock Under Stock and Benefit Plans		(4,026	)		(3,914	)
Net Cash Provided by (Used in) Financing Activities	$	4,593		$	(107,792	)

Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash		53,084			(4,678	)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		38,222			55,447
Cash, Cash Equivalents, and Restricted Cash at March 31	$	91,306		$	50,769

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

UPSTREAM BUSINESS

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
EXPLORATION AND PRODUCTION SEGMENT		2025			2024		Variance				2025			2024		Variance
Total Operating Revenues	$	311,958		$	264,614		$	47,344		$	560,818		$	518,633		$	42,185
Operating Expenses:
Operation and Maintenance:
General and Administrative Expense		18,847			17,165			1,682			38,173			34,958			3,215
Lease Operating and Transportation Expense		71,176			69,662			1,514			136,816			136,736			80
All Other Operation and Maintenance Expense		3,310			2,644			666			7,178			8,188			(1,010	)
Property, Franchise and Other Taxes		4,275			3,075			1,200			7,657			6,713			944
Depreciation, Depletion and Amortization		64,622			73,448			(8,826	)		127,925			145,413			(17,488	)
Impairment of Assets		—			—			—			141,802			—			141,802
		162,230			165,994			(3,764	)		459,551			332,008			127,543

Operating Income		149,728			98,620			51,108			101,267			186,625			(85,358	)

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		37			100			(63	)		74			201			(127	)
Interest and Other Income (Deductions)		101			1,170			(1,069	)		373			(342	)		715
Interest Expense on Long-Term Debt		(1,949	)		—			(1,949	)		(1,949	)		—			(1,949	)
Other Interest Expense		(15,091	)		(15,108	)		17			(30,291	)		(30,377	)		86
Income Before Income Taxes		132,826			84,782			48,044			69,474			156,107			(86,633	)
Income Tax Expense		34,998			22,717			12,281			18,423			41,559			(23,136	)
Net Income	$	97,828		$	62,065		$	35,763		$	51,051		$	114,548		$	(63,497	)
Net Income Per Share (Diluted)	$	1.07		$	0.67		$	0.40		$	0.56		$	1.24		$	(0.68	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

MIDSTREAM BUSINESSES

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
PIPELINE AND STORAGE SEGMENT		2025			2024		Variance				2025			2024		Variance
Revenues from External Customers	$	71,185		$	71,210		$	(25	)	$	139,935		$	136,036		$	3,899
Intersegment Revenues		38,388			36,810			1,578			76,251			66,397			9,854
Total Operating Revenues		109,573			108,020			1,553			216,186			202,433			13,753
Operating Expenses:
Purchased Gas		162			325			(163	)		121			926			(805	)
Operation and Maintenance		30,642			29,062			1,580			57,677			55,013			2,664
Property, Franchise and Other Taxes		8,600			8,600			—			17,266			17,320			(54	)
Depreciation, Depletion and Amortization		18,547			19,490			(943	)		37,132			37,704			(572	)
		57,951			57,477			474			112,196			110,963			1,233

Operating Income		51,622			50,543			1,079			103,990			91,470			12,520

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		952			1,257			(305	)		1,905			2,515			(610	)
Interest and Other Income		1,794			2,046			(252	)		3,833			3,978			(145	)
Interest Expense		(11,700	)		(12,119	)		419			(23,428	)		(23,843	)		415
Income Before Income Taxes		42,668			41,727			941			86,300			74,120			12,180
Income Tax Expense		10,961			10,990			(29	)		22,138			19,328			2,810
Net Income	$	31,707		$	30,737		$	970		$	64,162		$	54,792		$	9,370
Net Income Per Share (Diluted)	$	0.35		$	0.33		$	0.02		$	0.70		$	0.59		$	0.11


	Three Months Ended									Six Months Ended
	March 31,									March 31,
GATHERING SEGMENT		2025			2024		Variance				2025			2024		Variance
Revenues from External Customers	$	3,233		$	3,917		$	(684	)	$	6,681		$	8,513		$	(1,832	)
Intersegment Revenues		61,797			60,076			1,721			119,480			118,068			1,412
Total Operating Revenues		65,030			63,993			1,037			126,161			126,581			(420	)
Operating Expenses:
Operation and Maintenance		12,275			10,796			1,479			21,703			20,300			1,403
Property, Franchise and Other Taxes		7			94			(87	)		(227	)		117			(344	)
Depreciation, Depletion and Amortization		10,834			9,611			1,223			21,349			19,068			2,281
		23,116			20,501			2,615			42,825			39,485			3,340

Operating Income		41,914			43,492			(1,578	)		83,336			87,096			(3,760	)

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit (Costs)		—			9			(9	)		(1	)		19			(20	)
Interest and Other Income		93			72			21			152			143			9
Interest Expense on Long-Term Debt		(1,334	)		—			(1,334	)		(1,334	)		—			(1,334	)
Other Interest Expense		(4,450	)		(3,701	)		(749	)		(8,661	)		(7,431	)		(1,230	)
Income Before Income Taxes		36,223			39,872			(3,649	)		73,492			79,827			(6,335	)
Income Tax Expense		9,881			11,166			(1,285	)		20,005			22,296			(2,291	)
Net Income	$	26,342		$	28,706		$	(2,364	)	$	53,487		$	57,531		$	(4,044	)
Net Income Per Share (Diluted)	$	0.29		$	0.31		$	(0.02	)	$	0.59		$	0.62		$	(0.03	)

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

DOWNSTREAM BUSINESS

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
UTILITY SEGMENT		2025			2024		Variance				2025			2024		Variance
Revenues from External Customers	$	343,574		$	290,198		$	53,376		$	571,998		$	492,119		$	79,879
Intersegment Revenues		119			306			(187	)		203			393			(190	)
Total Operating Revenues		343,693			290,504			53,189			572,201			492,512			79,689
Operating Expenses:
Purchased Gas		171,777			140,836			30,941			273,249			224,886			48,363
Operation and Maintenance		64,444			60,229			4,215			120,704			114,913			5,791
Property, Franchise and Other Taxes		12,202			11,113			1,089			22,313			21,019			1,294
Depreciation, Depletion and Amortization		17,135			16,268			867			33,962			32,305			1,657
		265,558			228,446			37,112			450,228			393,123			57,105

Operating Income		78,135			62,058			16,077			121,973			99,389			22,584

Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Credit		12,299			857			11,442			18,170			1,327			16,843
Interest and Other Income		714			1,340			(626	)		1,242			3,250			(2,008	)
Interest Expense		(10,927	)		(8,528	)		(2,399	)		(21,643	)		(16,986	)		(4,657	)
Income Before Income Taxes		80,221			55,727			24,494			119,742			86,980			32,762
Income Tax Expense		16,677			10,988			5,689			23,699			15,691			8,008
Net Income	$	63,544		$	44,739		$	18,805		$	96,043		$	71,289		$	24,754
Net Income Per Share (Diluted)	$	0.70		$	0.48		$	0.22		$	1.05		$	0.77		$	0.28

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT OPERATING RESULTS AND STATISTICS
(UNAUDITED)

	Three Months Ended									Six Months Ended
(Thousands of Dollars, except per share amounts)	March 31,									March 31,
ALL OTHER		2025			2024		Variance				2025			2024		Variance
Total Operating Revenues	$	—		$	—		$	—		$	—		$	—		$	—
Operating Expenses:
Operation and Maintenance		—			—			—			—			—			—
		—			—			—			—			—			—

Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest and Other Income (Deductions)		(222	)		(41	)		(181	)		(358	)		(119	)		(239	)
Interest Expense		(131	)		(84	)		(47	)		(248	)		(165	)		(83	)
Loss before Income Taxes		(353	)		(125	)		(228	)		(606	)		(284	)		(322	)
Income Tax Benefit		(82	)		(29	)		(53	)		(141	)		(67	)		(74	)
Net Loss	$	(271	)	$	(96	)	$	(175	)	$	(465	)	$	(217	)	$	(248	)
Net Loss Per Share (Diluted)	$	—		$	—		$	—		$	(0.01	)	$	—		$	(0.01	)

	Three Months Ended									Six Months Ended
	March 31,									March 31,
CORPORATE		2025			2024		Variance				2025			2024		Variance
Revenues from External Customers	$	—		$	—		$	—		$	—		$	—		$	—
Intersegment Revenues		1,341			1,286			55			2,683			2,571			112
Total Operating Revenues		1,341			1,286			55			2,683			2,571			112
Operating Expenses:
Operation and Maintenance		5,219			5,121			98			9,266			8,916			350
Property, Franchise and Other Taxes		130			137			(7	)		261			265			(4	)
Depreciation, Depletion and Amortization		139			118			21			279			235			44
		5,488			5,376			112			9,806			9,416			390

Operating Loss		(4,147	)		(4,090	)		(57	)		(7,123	)		(6,845	)		(278	)
Other Income (Expense):
Non-Service Pension and Post-Retirement Benefit Costs		(212	)		(387	)		175			(423	)		(774	)		351
Interest and Other Income		41,785			40,234			1,551			82,846			81,262			1,584
Interest Expense on Long-Term Debt		(36,379	)		(28,453	)		(7,926	)		(69,741	)		(56,915	)		(12,826	)
Other Interest Expense		(4,905	)		(7,683	)		2,778			(10,066	)		(15,767	)		5,701
Income (Loss) before Income Taxes		(3,858	)		(379	)		(3,479	)		(4,507	)		961			(5,468	)
Income Tax Benefit		(1,066	)		(500	)		(566	)		(1,573	)		(388	)		(1,185	)
Net Income (Loss)	$	(2,792	)	$	121		$	(2,913	)	$	(2,934	)	$	1,349		$	(4,283	)
Net Income (Loss) Per Share (Diluted)	$	(0.04	)	$	0.01		$	(0.05	)	$	(0.03	)	$	0.02		$	(0.05	)


	Three Months Ended									Six Months Ended
	March 31,									March 31,
INTERSEGMENT ELIMINATIONS		2025			2024		Variance				2025			2024		Variance
Intersegment Revenues	$	(101,645	)	$	(98,478	)	$	(3,167	)	$	(198,617	)	$	(187,429	)	$	(11,188	)
Operating Expenses:
Purchased Gas		(36,601	)		(35,221	)		(1,380	)		(72,695	)		(63,321	)		(9,374	)
Operation and Maintenance		(65,044	)		(63,257	)		(1,787	)		(125,922	)		(124,108	)		(1,814	)
		(101,645	)		(98,478	)		(3,167	)		(198,617	)		(187,429	)		(11,188	)
Operating Income		—			—			—			—			—			—
Other Income (Expense):
Interest and Other Deductions		(42,109	)		(40,587	)		(1,522	)		(84,861	)		(81,659	)		(3,202	)
Interest Expense		42,109			40,587			1,522			84,861			81,659			3,202
Net Income	$	—		$	—		$	—		$	—		$	—		$	—
Net Income Per Share (Diluted)	$	—		$	—		$	—		$	—		$	—		$	—

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

SEGMENT INFORMATION (Continued)
(Thousands of Dollars)

	Three Months Ended										Six Months Ended
	March 31,										March 31,
	(Unaudited)										(Unaudited)
								Increase										Increase
		2025				2024		(Decrease)				2025				2024		(Decrease)

Capital Expenditures:
Exploration and Production	$	108,384		⁽¹⁾	$	124,184	⁽³⁾	$	(15,800	)	$	230,986		⁽¹⁾⁽²⁾	$	285,141	⁽³⁾⁽⁴⁾	$	(54,155	)
Pipeline and Storage		15,626		⁽¹⁾		18,025	⁽³⁾		(2,399	)		35,417		⁽¹⁾⁽²⁾		42,579	⁽³⁾⁽⁴⁾		(7,162	)
Gathering		18,499		⁽¹⁾		19,949	⁽³⁾		(1,450	)		31,526		⁽¹⁾⁽²⁾		39,518	⁽³⁾⁽⁴⁾		(7,992	)
Utility		41,867		⁽¹⁾		37,741	⁽³⁾		4,126			78,298		⁽¹⁾⁽²⁾		68,251	⁽³⁾⁽⁴⁾		10,047
Total Reportable Segments		184,376				199,899			(15,523	)		376,227				435,489			(59,262	)
All Other		—				—			—			—				—			—
Corporate		174				121			53			378				182			196
Eliminations		(3,520	)			—			(3,520	)		(3,520	)			—			(3,520	)
Total Capital Expenditures	$	181,030			$	200,020		$	(18,990	)	$	373,085			$	435,671		$	(62,586	)

⁽¹⁾		Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $44.8 million, $2.4 million, $6.8 million, and $4.8 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2025, since they represent non-cash investing activities at that date.
⁽²⁾		Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the six months ended March 31, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2025.
⁽³⁾		Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2024, since they represented non-cash investing activities at that date.
⁽⁴⁾		Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2024.

DEGREE DAYS
				Percent Colder
				(Warmer) Than:
Three Months Ended March 31,	Normal	2025	2024	Normal⁽¹⁾			Last Year⁽¹⁾
Buffalo, NY⁽²⁾	3,226	3,116	2,705		(3.4	)	15.2
Erie, PA	3,023	3,017	2,576		(0.2	)	17.1

Six Months Ended March 31,
Buffalo, NY⁽²⁾	5,352	5,000	4,563		(6.6	)	9.6
Erie, PA	4,917	4,714	4,240		(4.1	)	11.2

⁽¹⁾		Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.
⁽²⁾		Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

EXPLORATION AND PRODUCTION INFORMATION

	Three Months Ended							Six Months Ended
	March 31,							March 31,
					Increase							Increase
		2025		2024	(Decrease)				2025		2024	(Decrease)

Gas Production/Prices:
Production (MMcf)
Appalachia		105,514		102,883		2,631			203,232		203,640		(408	)

Average Prices (Per Mcf)
Weighted Average	$	3.02	$	1.98	$	1.04		$	2.64	$	2.14	$	0.50
Weighted Average after Hedging	$	2.94	$	2.56	$	0.38		$	2.74	$	2.53	$	0.21

Selected Operating Performance Statistics:
General and Administrative Expense per Mcf⁽¹⁾	$	0.18	$	0.17	$	0.01		$	0.19	$	0.17	$	0.02
Lease Operating and Transportation Expense per Mcf⁽¹⁾⁽²⁾	$	0.67	$	0.68	$	(0.01	)	$	0.67	$	0.67	$	—
Depreciation, Depletion and Amortization per Mcf⁽¹⁾	$	0.61	$	0.71	$	(0.10	)	$	0.63	$	0.71	$	(0.08	)

⁽¹⁾		Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
⁽²⁾		Amounts include transportation expense of $0.57 per Mcf for the three months ended March 31, 2025 and March 31, 2024. Amounts include transportation expense of $0.57 per Mcf for the six months ended March 31, 2025 and March 31, 2024.

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES

Pipeline and Storage Throughput – (millions of cubic feet – MMcf)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
				Increase						Increase
		2025	2024	(Decrease)				2025	2024	(Decrease)
Firm Transportation – Affiliated		49,240	42,561		6,679			81,110	74,056		7,054
Firm Transportation – Non-Affiliated		185,490	179,697		5,793			356,502	348,303		8,199
Interruptible Transportation		454	1,271		(817	)		515	1,389		(874	)
		235,184	223,529		11,655			438,127	423,748		14,379

Gathering Volume – (MMcf)
	Three Months Ended						Six Months Ended
	March 31,						March 31,
				Increase						Increase
		2025	2024	(Decrease)				2025	2024	(Decrease)
Gathered Volume		129,771	125,565		4,206			250,732	249,388		1,344


Utility Throughput – (MMcf)
	Three Months Ended						Six Months Ended
	March 31,						March 31,
				Increase						Increase
		2025	2024	(Decrease)				2025	2024	(Decrease)
Retail Sales:
Residential Sales		32,111	27,063		5,048			50,587	45,045		5,542
Commercial Sales		5,420	4,293		1,127			8,339	7,093		1,246
Industrial Sales		302	190		112			501	327		174
		37,833	31,546		6,287			59,427	52,465		6,962
Transportation		25,086	22,637		2,449			42,028	40,166		1,862
		62,919	54,183		8,736			101,455	92,631		8,824

NATIONAL FUEL GAS COMPANY
AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES

In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three and six months ended March 31, 2025 and 2024:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands except per share amounts)		2025			2024			2025			2024
Reported GAAP Earnings	$	216,358		$	166,272		$	261,344		$	299,292
Items impacting comparability:
Impairment of assets (E&P)		—			—			141,802			—
Tax impact of impairment of assets		—			—			(37,169	)		—
Premiums paid on early redemption of debt (E&P / Midstream)		2,385			—			2,385			—
Tax impact of premiums paid on early redemption of debt		(642	)		—			(642	)		—
Unrealized (gain) loss on derivative asset (E&P)		335			(536	)		684			3,662
Tax impact of unrealized (gain) loss on derivative asset		(90	)		147			(184	)		(1,004	)
Unrealized (gain) loss on other investments (Corporate / All Other)		(17	)		(769	)		2,600			(1,818	)
Tax impact of unrealized (gain) loss on other investments		4			162			(546	)		382
Adjusted Operating Results	$	218,333		$	165,276		$	370,274		$	300,514

Reported GAAP Earnings Per Share	$	2.37		$	1.80		$	2.86		$	3.24
Items impacting comparability:
Impairment of assets, net of tax (E&P)		—			—			1.14			—
Premiums paid on early redemption of debt, net of tax (E&P / Midstream)		0.02			—			0.02			—
Unrealized (gain) loss on derivative asset, net of tax (E&P)		—			—			0.01			0.03
Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)		—			(0.01	)		0.02			(0.02	)
Rounding		—			—			0.01			—
Adjusted Operating Results Per Share	$	2.39		$	1.79		$	4.06		$	3.25

Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2025 and 2024:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands)		2025			2024			2025			2024
Reported GAAP Earnings	$	216,358		$	166,272		$	261,344		$	299,292
Depreciation, Depletion and Amortization		111,277			118,935			220,647			234,725
Other (Income) Deductions		(15,232	)		(6,070	)		(22,952	)		(9,801	)
Interest Expense		44,757			35,089			82,500			69,825
Income Taxes		71,369			55,332			82,551			98,419
Impairment of Assets		—			—			141,802			—
Adjusted EBITDA	$	428,529		$	369,558		$	765,892		$	692,460

Adjusted EBITDA by Segment
Pipeline and Storage Adjusted EBITDA	$	70,169		$	70,033		$	141,122		$	129,174
Gathering Adjusted EBITDA		52,748			53,103			104,685			106,164
Total Midstream Businesses Adjusted EBITDA		122,917			123,136			245,807			235,338
Exploration and Production Adjusted EBITDA		214,350			172,068			370,994			332,038
Utility Adjusted EBITDA		95,270			78,326			155,935			131,694
Corporate and All Other Adjusted EBITDA		(4,008	)		(3,972	)		(6,844	)		(6,610	)
Total Adjusted EBITDA	$	428,529		$	369,558		$	765,892		$	692,460

NATIONAL FUEL GAS COMPANY AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES SEGMENT ADJUSTED EBITDA

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(in thousands)		2025			2024			2025			2024
Exploration and Production Segment
Reported GAAP Earnings	$	97,828		$	62,065		$	51,051		$	114,548
Depreciation, Depletion and Amortization		64,622			73,448			127,925			145,413
Other (Income) Deductions		(138	)		(1,270	)		(447	)		141
Interest Expense		17,040			15,108			32,240			30,377
Income Taxes		34,998			22,717			18,423			41,559
Impairment of Assets		—			—			141,802			—
Adjusted EBITDA	$	214,350		$	172,068		$	370,994		$	332,038

Pipeline and Storage Segment
Reported GAAP Earnings	$	31,707		$	30,737		$	64,162		$	54,792
Depreciation, Depletion and Amortization		18,547			19,490			37,132			37,704
Other (Income) Deductions		(2,746	)		(3,303	)		(5,738	)		(6,493	)
Interest Expense		11,700			12,119			23,428			23,843
Income Taxes		10,961			10,990			22,138			19,328
Adjusted EBITDA	$	70,169		$	70,033		$	141,122		$	129,174

Gathering Segment
Reported GAAP Earnings	$	26,342		$	28,706		$	53,487		$	57,531
Depreciation, Depletion and Amortization		10,834			9,611			21,349			19,068
Other (Income) Deductions		(93	)		(81	)		(151	)		(162	)
Interest Expense		5,784			3,701			9,995			7,431
Income Taxes		9,881			11,166			20,005			22,296
Adjusted EBITDA	$	52,748		$	53,103		$	104,685		$	106,164

Utility Segment
Reported GAAP Earnings	$	63,544		$	44,739		$	96,043		$	71,289
Depreciation, Depletion and Amortization		17,135			16,268			33,962			32,305
Other (Income) Deductions		(13,013	)		(2,197	)		(19,412	)		(4,577	)
Interest Expense		10,927			8,528			21,643			16,986
Income Taxes		16,677			10,988			23,699			15,691
Adjusted EBITDA	$	95,270		$	78,326		$	155,935		$	131,694

Corporate and All Other
Reported GAAP Earnings	$	(3,063	)	$	25		$	(3,399	)	$	1,132
Depreciation, Depletion and Amortization		139			118			279			235
Other (Income) Deductions		758			781			2,796			1,290
Interest Expense		(694	)		(4,367	)		(4,806	)		(8,812	)
Income Taxes		(1,148	)		(529	)		(1,714	)		(455	)
Adjusted EBITDA	$	(4,008	)	$	(3,972	)	$	(6,844	)	$	(6,610	)

Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

The MIL Network –

May 1, 2025

MIL-OSI: COMSTOCK RESOURCES, INC. REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS

Source: GlobeNewswire (MIL-OSI)

FRISCO, TX, April 30, 2025 (GLOBE NEWSWIRE) — Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2025.

Highlights of 2025‘s First Quarter

Higher natural gas prices in the first quarter drove improved financial results in the quarter.
- Natural gas and oil sales, including realized hedging gains, were $405 million for the quarter.
- Operating cash flow was $239 million or $0.81 per diluted share.
- Adjusted EBITDAX for the quarter was $293 million.
- Adjusted net income was $53.8 million or $0.18 per diluted share for the quarter.
Comstock resumed completion activity in late 2024 allowing it to turn fourteen (11.3 net) operated wells to sales since the last update with an average per well initial production rate of 25 MMcf per day.
The successful results of Comstock’s step out Western Haynesville well drilled in Freestone County, Texas substantially extended the success the Company has had in proving up its Western Haynesville acreage.

Financial Results for the Three Months Ended March 31, 2025

Natural gas prices improved substantially in the first quarter of 2025 and Comstock realized $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its natural gas production of 115 Bcf in the quarter. Comstock’s natural gas and oil sales in the first quarter of 2025 increased to $405.0 million (including realized hedging losses of $8.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2025 was $239.0 million, and net loss for the first quarter was $115.4 million or $0.40 per share. The net loss in the quarter included a pre-tax $322.4 million unrealized loss on hedging contracts held for price risk management resulting from the rise in future natural gas prices since the end of 2024. Excluding this item and exploration expense, adjusted net income for the first quarter of 2025 was $53.8 million, or $0.18 per diluted share.

Comstock’s production cost per Mcfe in the first quarter averaged $0.83 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.30 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock’s unhedged operating margin was 77% in the first quarter of 2025 and 76% after hedging.

Drilling Results

Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2025, which had an average lateral length of 11,660 feet. Comstock turned eleven (8.3 net) operated wells to sales in the first quarter of 2025.

Since its last operational update in February, Comstock has turned fourteen (11.3 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 12,220 feet. Included in the wells turned to sales was our first Western Haynesville well drilled in Freestone county, the Olajuwon Pickens #1, which had a 10,306 foot completed lateral. This well is 24.4 miles away from the closest producing Western Haynesville well and represents a major milestone in Comstock’s progress in delineating its Western Haynesville acreage. The Olajuwon Pickens #1 was turned to sales at an initial production rate of 41 MMcf per day.

Other

On April 29, 2025, Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on May 1, 2025, to discuss the first quarter 2025 operational and financial results. Investors wishing to listen should visit the Company’s website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BIe794f2ba5583499f970858176fd39094.
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/99m3j47q.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on May 1, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/99m3j47q.

This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company’s filings with the Securities and Exchange Commission (“SEC”) available on the Company’s website or the SEC’s website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company’s stock is traded on the New York Stock Exchange under the symbol CRK.

COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

	Three Months Ended March 31,
	2025			2024
Revenues:
Natural gas sales	$	412,286		$	287,083
Oil sales		702			876
Total natural gas and oil sales		412,988			287,959
Gas services		99,866			47,813
Total revenues		512,854			335,772
Operating expenses:
Production and ad valorem taxes		11,179			17,908
Gathering and transportation		42,617			47,099
Lease operating		35,000			35,072
Exploration		2,150			—
Depreciation, depletion and amortization		167,891			190,689
Gas services		116,769			48,680
General and administrative		11,080			9,171
Total operating expenses		386,686			348,619
Operating income (loss)		126,168			(12,847	)
Other income (expenses):
Gain (loss) from derivative financial instruments		(330,339	)		39,307
Other income		339			331
Interest expense		(54,837	)		(49,557	)
Total other expenses		(384,837	)		(9,919	)
Loss before income taxes		(258,669	)		(22,766	)
Benefit from income taxes		143,276			8,292
Net loss		(115,393	)		(14,474	)
Net income attributable to noncontrolling interest		(5,885	)		(1,847	)
Net loss available to the Company	$	(121,278	)	$	(16,321	)

Net loss per share
Basic	$	(0.40	)	$	(0.05	)
Diluted	$	(0.40	)	$	(0.05	)
Weighted average shares outstanding:
Basic		290,303			277,962
Diluted		290,303			277,962

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)

	Three Months Ended March 31,
	2025			2024
Natural gas production (MMcf)		115,029			139,443
Oil production (Mbbls)		10			12
Total production (MMcfe)		115,091			139,515

Natural gas sales	$	412,286		$	287,083
Natural gas hedging settlements ⁽¹⁾		(7,959	)		47,995
Total natural gas including hedging		404,327			335,078
Oil sales		702			876
Total natural gas and oil sales including hedging	$	405,029		$	335,954

Average natural gas price (per Mcf)	$	3.58		$	2.06
Average natural gas price including hedging (per Mcf)	$	3.52		$	2.40
Average oil price (per barrel)	$	70.20		$	73.00
Average price (per Mcfe)	$	3.59		$	2.06
Average price including hedging (per Mcfe)	$	3.52		$	2.41

Production and ad valorem taxes	$	11,179		$	17,908
Gathering and transportation		42,617			47,099
Lease operating		35,000			35,072
Cash general and administrative ⁽²⁾		6,640			5,755
Total production costs	$	95,436		$	105,834

Production and ad valorem taxes (per Mcfe)	$	0.10		$	0.13
Gathering and transportation (per Mcfe)		0.37			0.34
Lease operating (per Mcfe)		0.30			0.25
Cash general and administrative (per Mcfe)		0.06			0.04
Total production costs (per Mcfe)	$	0.83		$	0.76

Unhedged operating margin		77	%		63	%
Hedged operating margin		76	%		68	%

Gas services revenue	$	99,866		$	47,813
Gas services expenses		116,769			48,680
Gas services margin	$	(16,903	)	$	(867	)

Natural Gas and Oil Capital Expenditures:
Unproved property acquisitions	$	9,684		$	69,444
Total natural gas and oil properties acquisitions	$	9,684		$	69,444
Exploration and Development:
Development leasehold	$	3,556		$	3,938
Exploratory drilling and completion		100,107			106,456
Development drilling and completion		145,578			145,793
Other development costs		515			37
Total exploration and development capital expenditures	$	249,756		$	256,224

(1) Included in gain (loss) from derivative financial instruments in operating results.

(2) Excludes stock-based compensation.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

	Three Months Ended March 31,
	2025			2024
ADJUSTED NET INCOME (LOSS):
Net loss	$	(115,393	)	$	(14,474	)
Unrealized loss from derivative financial instruments		322,380			8,688
Exploration expense		2,150			—
Adjustment to income taxes		(155,292	)		(2,752	)
Adjusted net income (loss)	$	53,845		$	(8,538	)

Adjusted net income (loss) per share ⁽²⁾	$	0.18		$	(0.03	)
Diluted shares outstanding		293,633			277,962


ADJUSTED EBITDAX:
Net loss	$	(115,393	)	$	(14,474	)
Interest expense		54,837			49,557
Income taxes		(143,276	)		(8,292	)
Depreciation, depletion, and amortization		167,891			190,689
Exploration		2,150			—
Unrealized loss from derivative financial instruments		322,380			8,688
Stock-based compensation		4,442			3,415
Total Adjusted EBITDAX ⁽³⁾	$	293,031		$	229,583

(1) Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company’s profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.

(2) Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.

(3) Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock’s results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands)

	Three Months Ended March 31,
	2025			2024
OPERATING CASH FLOW ⁽¹⁾:
Net loss	$	(115,393	)	$	(14,474	)
Reconciling items:
Unrealized loss from derivative financial instruments		322,380			8,688
Deferred income taxes		(143,276	)		(8,287	)
Depreciation, depletion and amortization		167,891			190,689
Amortization of debt discount and issuance costs		2,944			1,984
Stock-based compensation		4,442			3,415
Operating cash flow	$	238,988		$	182,015
(Increase) decrease in accounts receivable		(33,660	)		99,418
Decrease in other current assets		559			5,576
Decrease in accounts payable and accrued expenses		(31,141	)		(115,470	)
Net cash provided by operating activities	$	174,746		$	171,539

	Three Months Ended March 31,
	2025			2024
FREE CASH FLOW (DEFICIT)⁽²⁾:
Operating cash flow	$	238,988		$	182,015
Less:
Exploration and development capital expenditures		(249,756	)		(256,224	)
Midstream capital expenditures		(48,668	)		(5,298	)
Other capital expenditures		(86	)		(29	)
Contributions from midstream partner		59,500			6,000
Free cash deficit from operations	$	(22	)	$	(73,536	)
Acquisitions		(9,684	)		(69,444	)
Free cash deficit after acquisitions	$	(9,706	)	$	(142,980	)

(1) Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

(2) Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company’s ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

	March 31, 2025		December 31, 2024
ASSETS
Cash and cash equivalents	$	32,875	$	6,799
Accounts receivable		208,506		174,846
Derivative financial instruments		—		4,865
Other current assets		97,595		97,524
Total current assets		338,976		284,034
Property and equipment, net		5,828,842		5,688,389
Goodwill		335,897		335,897
Operating lease right-of-use assets		97,832		73,777
	$	6,601,547	$	6,382,097

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	433,797	$	421,814
Accrued costs		113,231		146,173
Operating leases		47,256		35,927
Derivative financial instruments		263,796		8,940
Total current liabilities		858,080		612,854
Long-term debt		3,050,034		2,952,090
Deferred income taxes		201,841		345,116
Derivative financial instruments		129,416		66,757
Long-term operating leases		50,485		37,740
Asset retirement obligation		34,507		33,996
Total liabilities		4,324,363		4,048,553
Stockholders’ Equity:
Common stock		146,460		146,130
Additional paid-in capital		1,367,696		1,366,274
Accumulated earnings		607,341		728,619
Total stockholders’ equity attributable to Comstock		2,121,497		2,241,023
Noncontrolling interest		155,687		92,521
Total stockholders’ equity		2,277,184		2,333,544
	$	6,601,547	$	6,382,097

The MIL Network –

May 1, 2025

MIL-OSI: Orange County Bancorp, Inc. Announces First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Highlights include:

Net interest margin of 3.95% for the quarter ended March 31, 2025 increased 31 basis points, or 8.5%, versus 3.64% for the quarter ended March 31, 2024
Total Deposits grew $128.3 million, or 6.0%, reaching $2.3 billion at March 31, 2025 as compared to $2.2 billion at December 31, 2024
Total Loans of $1.9 billion at March 31, 2025 increased $38.5 million, or 2.1%, from $1.8 billion at December 31, 2024
Net Income reached $8.7 million for the three months ended March 31, 2025 representing a decrease of $586 thousand, or 6.3%, as compared to $9.3 million for the three months ended March 31, 2024
Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025 from $2.9 million for the quarter ended March 31, 2024
Book value per share increased $1.34, or 8.2%, reaching $17.69 at March 31, 2025 as compared to $16.35 at December 31, 2024

MIDDLETOWN, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of $8.7 million, or $0.77 per basic and diluted share, for the quarter ended March 31, 2025. This represents a $586 thousand, or 6.3%, decrease in net income as compared to $9.3 million, or $0.82 per basic and diluted share, for the quarter ended March 31, 2024. The year-over-year comparison reflects a reduction in provision for credit losses on loans and increases in net interest income and total noninterest income in the most recent quarter, while the same period last year benefitted from a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt previously written off. The prior year’s gain had an approximately $.17 per share impact on first quarter earnings. Non-interest income for the quarter ended March 31, 2025 rose $670 thousand, or 18.2%, to $4.4 million, as compared to $3.7 million for the quarter ended March 31, 2024.

Book value per share rose $1.34, or 8.2%, from $16.35 at December 31, 2024 to $17.69 at March 31, 2025. Tangible book value per share also increased $1.35, or 8.5%, from $15.80 at December 31, 2024 to $17.15 at March 31, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were the result of earnings growth during the quarter combined with a decrease in unrealized losses in the investment portfolio attributed to interest rate changes during the first quarter of 2025.

“2025 began with anticipation of a deregulatory, pro-business agenda from the incoming administration that would accelerate economic growth, but saw the quarter marked instead by uncertainty and market volatility stemming from government cost cutting and tariff policy,” said Orange Bank President and CEO, Michael Gilfeather. “Despite this unexpected shift, I am pleased to announce Orange Bank posted another excellent quarterly performance. For the three months ended March 31, 2025, the Company earned $8.7 million. This was a $586 thousand, or 6.3%, decrease versus the same quarter in 2024, but reflects solid growth in net interest income and noninterest income and a meaningful reduction in our provision for credit losses excluding a $1.9 million gain we realized last year as the result of recovery from the sale of Signature Bank subordinated debt previously written off. Excluding last year’s one-time gain, earnings for Q1 2025 would have exceeded Q1 2024.

While we hope for the return of more stable, predictable markets, for the benefit of local economic activity and businesses, our clients continue to identify compelling long-term investment opportunities for us to finance. Total loans grew $38.5 million, or 2.1%, for the quarter, from $1.8 billion at December 31, 2024. As discussed in prior quarters, we continue to employ a conservative underwriting posture that guides the prioritization, sizing, and pricing of loans to ensure we thoughtfully manage risk while providing our clients with access to capital.

The quarter also saw strong deposit growth; up $128.3 million, or 6.0%, to $2.3 billion at March 31, 2025 from $2.2 billion at December 31, 2024. Growth in deposits remains a priority for the Bank, and effective management of their costs has long been a strategic and differentiating strength of our organization. Our cost of deposits for the first quarter of 2025 was 1.29%, down compared to 1.34% for the first quarter of 2024.

Also embedded in our operational results is solid expansion of net interest margin, which ended the quarter at 3.95%. This is a 31 basis points, or 8.5%, increase, over the same quarter last year, once again reflecting management of our overall process and drive to source appropriately priced deposits.

Our Wealth Management division also continued its strong recent performance in the quarter. Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025, from $2.9 million for the quarter ended March 31, 2024. This division not only provides the Bank an important, diversified source of revenue, but also offers clients additional, value-added service that leads to stronger, longer-lasting business relationships.

Though it’s difficult to predict when the current period of market volatility and uncertainty will subside, I remain confident in our team and Company’s ability to adapt and meet our clients’ needs. This is a testament to strategic initiatives and execution we’ve committed to the past several years and is only possible through the dedication of our employees, the continued trust of our clients, and the support of our stockholders. I thank you all.”

First Quarter 2025 Financial Review

Net Income

Net income for the first quarter of 2025 was $8.7 million, a decrease of $586 thousand, or 6.3%, from net income of $9.3 million for the first quarter of 2024. This decrease was the result of a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt in the first quarter of 2024 offset by higher net interest income and noninterest income as well as a reduced provision for credit losses on loans during the first quarter of 2025 as compared to the first quarter of 2024.

Net Interest Income

For the three months ended March 31, 2025, net interest income rose $2.0 million, or 9.4%, to $23.6 million versus $21.6 million during the same period last year reflecting an increase in total interest income of $834 thousand and a decrease in total interest expense of $1.2 million mainly due to lower borrowing costs during the current period.

Total interest income rose $834 thousand, or 2.7%, to $31.9 million for the three months ended March 31, 2025, compared to $31.1 million for the three months ended March 31, 2024. The increase reflected 6.6% growth in interest and fees associated with loans which was offset by decreases in interest income associated with investment securities, fed funds, and balances held at correspondent banks.

Total interest expense decreased $1.2 million during the first quarter of 2025, to $8.3 million, as compared to $9.5 million in the first quarter of 2024. Interest expense from FHLB advances and borrowings during the current quarter totaled $931 thousand as compared to $2.3 million during the first quarter of 2024. The decrease primarily represented the effect of lower average balances and costs associated with FHLB borrowings. Interest expense associated with savings and NOW accounts totaled $4.9 million during the first quarter of 2025 as compared to $4.6 million during the first quarter of 2024. Interest expense related to brokered deposits totaled $2.1 million during the first quarter of 2025 as compared to $2.3 million during the first quarter of 2024.

Provision for Credit Losses

Provision for credit losses amounted to $202 thousand for the three months ended March 31, 2025 and a net credit of $1.6 million for the three months ended March 31, 2024. The increase in the provision for credit losses was primarily attributable to the investment recovery during 2024. The allowance for credit losses to total loans was 1.42% as of March 31, 2025 versus 1.44% as of December 31, 2024. No additional reserves for investment securities were recorded during 2025 or 2024, respectively.

Non-Interest Income

Non-interest income rose $670 thousand, or 18.2%, to $4.4 million for the three months ended March 31, 2025 as compared to $3.7 million for the three months ended March 31, 2024. This growth was related to increased fee income within each of the Company’s fee income categories, including investment advisory, trust, and service charges on deposit accounts.

Non-Interest Expense

Non-interest expense was $16.5 million for the first quarter of 2025, reflecting an increase of $1.2 million, or 7.7%, as compared to $15.3 million for the same period in 2024. The increase in non-interest expense for the current three-month period continues to reflect the Company’s investment in growth. This investment consists primarily of increases in compensation, occupancy, and information technology. Our efficiency ratio, which is a non-GAAP measurement, decreased to 58.9% for the three months ended March 31, 2025, from 60.5% for the same period in 2024.

Income Tax Expense

Provision for income taxes for the three months ended March 31, 2025 was $2.6 million, representing an increase of $257 thousand, or 11.0%, as compared to $2.3 million for the three months ended March 31, 2024. The amount was directly related to provisions associated with the Company’s earnings as well as the effect of certain tax adjustments for the quarter. Our effective tax rate for the three-month period ended March 31, 2025 was 22.9%, as compared to 20.0% for the same period in 2024.

Financial Condition

Total consolidated assets increased by $50.2 million, or 2.0%, and grew from $2.5 billion at December 31, 2024 to $2.6 billion at March 31, 2025. The increase reflected increases in cash and loans during the first quarter of 2025.

Total cash and due from banks increased from $150.3 million at December 31, 2024, to $164.2 million at March 31, 2025, an increase of approximately $13.8 million, or 9.2%. This increase resulted mainly from higher levels of deposit balances.

Total investment securities fell $4.2 million, or 0.9%, from $453.4 million at December 31, 2024 to $449.3 million at March 31, 2025. The decrease was driven primarily by investment securities maturities during the first three months of 2025.

Total loans increased $38.5 million, or 2.1%, to $1.9 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The increase was due primarily to growth of $19.7 million in CRE loans, including additional growth of $16.7 million in CRE Construction loans as well as $4.9 million in commercial and industrial loans.

Total deposits increased $128.3 million, to $2.3 billion at March 31, 2025 from approximately $2.2 billion at December 31, 2024. This increase was due primarily to $50.8 million of growth in interest bearing demand deposits; $24.3 million increase in money market accounts; $11.5 million growth in savings accounts; and $38.8 million increase in time deposits mainly associated with brokered deposits which the Bank utilized to increase cash balances and reduce borrowings during the first quarter. The increases in deposits also included a $2.9 million increase in noninterest-bearing demand deposit accounts during the quarter. Deposit composition at March 31, 2025 included 45.4% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 39% at March 31, 2025 and December 31, 2024, respectively.

FHLBNY short-term borrowings were $20.5 million at March 31, 2025 down from $113.5 million at December 31, 2024. The decrease in borrowings was driven mainly by increased deposits which outpaced loan growth during the quarter and allowed for paydowns of borrowings while maintaining consistent levels of cash at March 31, 2025.

Stockholders’ equity increased $15.8 million, or 8.5%, to $201.3 million at March 31, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of $8.7 million in net income and a decrease in unrealized losses of approximately $7.7 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first quarter of 2025 offset by dividends of $1.5 million.

At March 31, 2025, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital-to-average-assets ratio was 10.41%, both common equity and Tier 1 capital-to-risk-weighted-assets were 14.16%, and total-capital-to-risk-weighted-assets was 15.42%.

Wealth Management

At March 31, 2025, our Wealth Management Division, which includes trust and investment advisory, totaled $1.7 billion in assets under management or advisory as compared to $1.8 billion at December 31, 2024, reflecting a decrease of $43.0 million, or 2.4%. Trust and investment advisory income for the quarter ended March 31, 2025 totaled $3.4 million and represented an increase of 19.2%, or $553 thousand, as compared to $2.9 million for the quarter ended March 31, 2024.

The breakdown of trust and investment advisory assets as of March 31, 2025 and December 31, 2024, respectively, is as follows:

ORANGE COUNTY BANCORP, INC.
SUMMARY OF AUM/AUA
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2025				At December 31, 2024
	Amount		Percent		Amount		Percent
Investment Assets Under Management & Advisory	$	1,105,692	63.55	%	$	1,105,143	61.99	%
Trust Asset Under Administration & Management		634,177	36.45	%		677,723	38.01	%
Total	$	1,739,869	100.00	%	$	1,782,866	100.00	%

Loan Quality

At March 31, 2025, the Bank had total non-performing loans of $6.2 million, or 0.33% of total loans. Total non-accrual loans represented approximately $6.2 million of loans at March 31, 2025, compared to $6.3 million at December 31, 2024.

Liquidity

Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of March 31, 2025, the Bank’s cash and due from banks totaled $164.2 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of March 31, 2025, the Bank’s investment in securities available for sale was $443.8 million, of which $80.3 million was not pledged as collateral. Additionally, as of March 31, 2025, the Bank’s overnight advance line capacity at the Federal Home Loan Bank of New York was $631.0 million, of which $96.4 million was used to collateralize municipal deposits and $10.0 million was utilized for overnight and long term FHLBNY advances. As of March 31, 2025, the Bank’s unused borrowing capacity at the FHLBNY was $524.6 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. At March 31, 2025, the Bank also held $91.0 million of collateral at the Federal Reserve Bank which could be utilized to provide additional funding through the discount window.

The Bank also considers brokered deposits as an element of its deposit strategy. As of March 31, 2025, the Bank had brokered deposit arrangements with various terms totaling $220.0 million.


Non-GAAP Financial Measure Reconciliations
The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.

	March 31, 2025			December 31, 2024
	(Dollars in thousands except for share data)
Tangible Common Equity:
Total stockholders’ equity	$	201,324		$	185,531
Adjustments:
Goodwill		(5,359	)		(5,359	)
Other intangible assets		(750	)		(821	)
Tangible common equity	$	195,215		$	179,351
Common shares outstanding		11,383,738			11,350,158
Book value per common share	$	17.69		$	16.35
Tangible book value per common share	$	17.15		$	15.80

Tangible Assets
Total assets	$	2,560,128		$	2,509,927
Adjustments:
Goodwill		(5,359	)		(5,359	)
Other intangible assets		(750	)		(821	)
Tangible assets	$	2,554,019		$	2,503,747
Tangible common equity to tangible assets		7.64	%		7.16	%

NOTE: Share data and related information has been adjusted for the effect of the 2 for 1 stock split in January 2025

About Orange County Bancorp, Inc.

Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.6 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

Forward Looking Statements

Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, tariffs, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

For further information:
Michael Lesler
EVP & Chief Financial Officer
mlesler@orangebanktrust.com
Phone: (845) 341-5111


ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
(UNAUDITED)
	(Dollar Amounts in thousands except per share data)

			March 31, 2025			December 31, 2024

		ASSETS

Cash and due from banks			$	164,173		$	150,334
Investment securities – available-for-sale				443,797			443,775
(Amortized cost $509,906 at March 31, 2025 and $519,567 at December 31, 2024)
Restricted investment in bank stocks				5,525			9,716
Loans				1,854,254			1,815,751
Allowance for credit losses				(26,373	)		(26,077	)
	Loans, net			1,827,881			1,789,674

Premises and equipment, net				15,904			15,808
Accrued interest receivable				11,002			6,680
Bank owned life insurance				42,516			42,257
Goodwill				5,359			5,359
Intangible assets				750			821
Other assets				43,221			45,503

		TOTAL ASSETS	$	2,560,128		$	2,509,927

		LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits:
	Noninterest bearing		$	654,061		$	651,135
	Interest bearing			1,627,637			1,502,224
		Total deposits		2,281,698			2,153,359

FHLB advances, short term				20,500			113,500
FHLB advances, long term				10,000			10,000
Subordinated notes, net of issuance costs				19,609			19,591
Accrued expenses and other liabilities				26,997			27,946

		TOTAL LIABILITIES		2,358,804			2,324,396

		STOCKHOLDERS’ EQUITY

Common stock, $0.25 par value; 30,000,000 shares authorized;
	11,391,755 and 11,366,608 issued; 11,383,738 and 11,350,158 outstanding,
	at March 31, 2025 and December 31, 2024, respectively			2,848			2,842
Surplus				121,546			120,896
Retained Earnings				137,148			129,919
Accumulated other comprehensive income (loss), net of taxes				(60,019	)		(67,751	)
Treasury stock, at cost; 8,017 and 16,450 shares at March 31,
	2025 and December 31, 2024, respectively			(199	)		(375	)
		TOTAL STOCKHOLDERS’ EQUITY		201,324			185,531

		TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,560,128		$	2,509,927


ORANGE COUNTY BANCORP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
				For Three Months Ended March 31,
				2025		2024
INTEREST INCOME
	Interest and fees on loans			$	27,314	$	25,614
	Interest on investment securities:
		Taxable			2,664		3,226
		Tax exempt			576		568
	Interest on Federal funds sold and other				1,353		1,665

		TOTAL INTEREST INCOME			31,907		31,073

INTEREST EXPENSE
	Savings and NOW accounts				4,894		4,577
	Time deposits				2,224		2,414
	FHLB advances and borrowings				931		2,251
	Subordinated notes				230		230
		TOTAL INTEREST EXPENSE			8,279		9,472

		NET INTEREST INCOME			23,628		21,601

Provision for credit losses					202		(1,640	)
		NET INTEREST INCOME AFTER
			PROVISION FOR CREDIT LOSSES		23,426		23,241

NONINTEREST INCOME
	Service charges on deposit accounts				290		235
	Trust income				1,674		1,312
	Investment advisory income				1,766		1,575
	Earnings on bank owned life insurance				259		242
	Other				367		322
		TOTAL NONINTEREST INCOME			4,356		3,686

NONINTEREST EXPENSE
	Salaries				6,905		6,738
	Employee benefits				2,450		2,122
	Occupancy expense				1,277		1,161
	Professional fees				1,347		1,436
	Directors’ fees and expenses				306		322
	Computer software expense				1,982		1,235
	FDIC assessment				330		418
	Advertising expenses				389		364
	Advisor expenses related to trust income				22		33
	Telephone expenses				207		187
	Intangible amortization				71		72
	Other				1,208		1,222
		TOTAL NONINTEREST EXPENSE			16,494		15,310

	Income before income taxes				11,288		11,617

Provision for income taxes					2,584		2,327
		NET INCOME		$	8,704	$	9,290

Basic and diluted earnings per share				$	0.77	$	0.82

Weighted average shares outstanding					11,331,884		11,269,874


ORANGE COUNTY BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(UNAUDITED)
(Dollar Amounts in thousands)

	Three Months Ended March 31,
	2025							2024
	Average Balance			Interest		Average Rate		Average Balance			Interest		Average Rate
Assets:
Loans Receivable (net of PPP)	$	1,829,917		$	27,311	6.05	%	$	1,738,199		$	25,611	5.91	%
PPP Loans		163			3	7.46	%		209			3	5.76	%
Investment securities		441,776			3,123	2.87	%		481,530			3,432	2.86	%
Due from banks		146,657			1,353	3.74	%		149,596			1,665	4.46	%
Other		7,979			117	5.95	%		10,894			362	13.33	%
Total interest earning assets		2,426,492			31,907	5.33	%		2,380,428			31,073	5.24	%
Non-interest earning assets		101,960							94,647
Total assets	$	2,528,452						$	2,475,075

Liabilities and equity:
Interest-bearing demand accounts	$	357,057		$	403	0.46	%	$	360,287		$	437	0.49	%
Money market accounts		685,827			3,634	2.15	%		620,028			3,355	2.17	%
Savings accounts		269,019			857	1.29	%		235,829			785	1.34	%
Certificates of deposit		222,992			2,224	4.04	%		209,642			2,414	4.62	%
Total interest-bearing deposits		1,534,895			7,118	1.88	%		1,425,786			6,991	1.97	%
FHLB Advances and other borrowings		85,011			931	4.44	%		167,484			2,251	5.39	%
Subordinated notes		19,597			230	4.76	%		19,526			230	4.72	%
Total interest bearing liabilities		1,639,503			8,279	2.05	%		1,612,796			9,472	2.36	%
Non-interest bearing demand accounts		667,564							668,439
Other non-interest bearing liabilities		29,907							28,446
Total liabilities		2,336,974							2,309,681
Total shareholders’ equity		191,478							165,394
Total liabilities and shareholders’ equity	$	2,528,452						$	2,475,075

Net interest income				$	23,628						$	21,601
Interest rate spread¹						3.28	%						2.88	%
Net interest margin²						3.95	%						3.64	%
Average interest earning assets to interest-bearing liabilities		148.0	%						147.6	%

Notes:
¹The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
²Net interest margin is the annualized net interest income divided by average interest-earning assets


ORANGE COUNTY BANCORP, INC.
SELECTED RATIOS AND OTHER DATA
(UNAUDITED)

		Three Months Ended March 31,
		2025		2024
Performance Ratios:
Return on average assets (1)		1.38	%	1.50	%
Return on average equity (1)		18.18	%	22.47	%
Interest rate spread (2)		3.28	%	2.88	%
Net interest margin (3)		3.95	%	3.64	%
Dividend payout ratio (4)		16.92	%	13.95	%
Non-interest income to average total assets		0.17	%	0.15	%
Non-interest expenses to average total assets		0.65	%	0.62	%
Average interest-earning assets to average interest-bearing liabilities		148.00	%	147.60	%

		At		At
		March 31, 2025		March 31, 2024
Asset Quality Ratios:
Non-performing assets to total assets		0.24	%	0.24	%
Non-performing loans to total loans		0.33	%	0.33	%
Allowance for credit losses to non-performing loans		425.03	%	440.86	%
Allowance for credit losses to total loans		1.42	%	1.47	%

Capital Ratios (5):
Total capital (to risk-weighted assets)		15.42	%	14.74	%
Tier 1 capital (to risk-weighted assets)		14.16	%	13.49	%
Common equity tier 1 capital (to risk-weighted assets)		14.16	%	13.49	%
Tier 1 capital (to average assets)		10.41	%	9.72	%

Notes:
(1)	Annualized for the three month periods ended March 31, 2025 and 2024, respectively.
(2)	Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods.
(3)	The net interest margin represents net interest income as a percent of average interest-earning assets for the periods.
(4)	The dividend payout ratio represents dividends paid per share divided by net income per share.
(5)	Ratios are for the Bank only.


ORANGE COUNTY BANCORP, INC.
SELECTED OPERATING DATA
(UNAUDITED)
(Dollar Amounts in thousands except per share data)
	Three Months Ended March 31,
	2025		2024
Interest income	$	31,907	$	31,073
Interest expense		8,279		9,472
Net interest income		23,628		21,601
Provision for credit losses		202		(1,640	)
Net interest income after provision for credit losses		23,426		23,241
Noninterest income		4,356		3,686
Noninterest expenses		16,494		15,310
Income before income taxes		11,288		11,617
Provision for income taxes		2,584		2,327
Net income	$	8,704	$	9,290

Basic and diluted earnings per share	$	0.77	$	0.82
Weighted average common shares outstanding		11,331,884		11,269,874

	At		At
	March 31, 2025		December 31, 2024
Book value per share	$	17.69	$	16.35
Net tangible book value per share (1)	$	17.15	$	15.80
Outstanding common shares		11,383,738		11,350,158

Notes:
(1) Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by $5,359 in goodwill and $750, and $821 in other intangible assets for March 31, 2025 and December 31, 2024, respectively.


ORANGE COUNTY BANCORP, INC.
LOAN COMPOSITION
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2025				At December 31, 2024
	Amount		Percent		Amount		Percent
Commercial and industrial (a)	$	247,284	13.34	%	$	242,390	13.35	%
Commercial real estate		1,381,719	74.52	%		1,362,054	75.01	%
Commercial real estate construction		97,703	5.27	%		80,993	4.46	%
Residential real estate		73,090	3.94	%		74,973	4.13	%
Home equity		18,211	0.98	%		17,365	0.96	%
Consumer		36,247	1.95	%		37,976	2.09	%
Total loans		1,854,254	100.00	%		1,815,751	100.00	%
Allowance for loan losses		26,373				26,077
Total loans, net	$	1,827,881			$	1,789,674

(a) – Includes PPP loans of:	$	159			$	170


ORANGE COUNTY BANCORP, INC.
DEPOSITS BY ACCOUNT TYPE
(UNAUDITED)
(Dollar Amounts in thousands)
	At March 31, 2025						At December 31, 2024
	Amount		Percent		Average Rate		Amount		Percent		Average Rate
Noninterest-bearing demand accounts	$	654,061	28.66	%	0.00	%	$	651,135	30.24	%	0.00	%
Interest bearing demand accounts		381,878	16.74	%	0.48	%		331,115	15.38	%	0.42	%
Money market accounts		703,384	30.83	%	2.14	%		679,082	31.54	%	2.15	%
Savings accounts		282,563	12.38	%	1.23	%		271,014	12.59	%	1.25	%
Certificates of Deposit		259,812	11.39	%	3.93	%		221,013	10.26	%	3.97	%
Total	$	2,281,698	100.00	%	1.34	%	$	2,153,359	100.00	%	1.31	%


ORANGE COUNTY BANCORP, INC.
NON-PERFORMING ASSETS
(UNAUDITED)
	(Dollar Amounts in thousands)

	March 31, 2025			December 31, 2024

Non-accrual loans:
Commercial and industrial	$	200		$	293
Commercial real estate		6,000			6,000
Commercial real estate construction		–			–
Residential real estate		5			6
Home equity		–			–
Consumer		–			–
Total non-accrual loans		6,205			6,299
Accruing loans 90 days or more past due:
Commercial and industrial		–			–
Commercial real estate		–			–
Commercial real estate construction		–			–
Residential real estate		–			–
Home equity		–			–
Consumer		–			–
Total loans 90 days or more past due		–			–
Total non-performing loans		6,205			6,299
Other real estate owned		–			–
Other non-performing assets		–			–
Total non-performing assets	$	6,205		$	6,299

Ratios:
Total non-performing loans to total loans		0.33	%		0.35	%
Total non-performing loans to total assets		0.24	%		0.25	%
Total non-performing assets to total assets		0.24	%		0.25	%
Net-chargeoffs to total loans		0.00	%		0.00	%

The MIL Network –

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

Source: GlobeNewswire (MIL-OSI)

First Quarter Results

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

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

Review and Outlook

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

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

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

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

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

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

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

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

Financial Review

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

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

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

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

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

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

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

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

Liquidity and Capital Expenditures

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

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

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

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

Conference Call

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

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

About NCS Multistage Holdings, Inc.

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

Forward Looking Statements

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

Contact

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


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

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


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

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


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

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

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

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

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

Non-GAAP Financial Measures

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

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

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

NET WORKING CAPITAL

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

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

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

ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

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

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

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

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

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

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

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

___________________

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

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

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

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

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

The MIL Network –

May 1, 2025

MIL-OSI: Enact Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

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

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

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

Key Financial Highlights

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

First Quarter 2025 Financial and Operating Highlights

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

Capital and Liquidity

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

Recent Events

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Debt to Capital Ratio	13%	13%	14%

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

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

The MIL Network –

May 1, 2025

MIL-OSI: SEACOR Marine Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its first quarter ended March 31, 2025.

SEACOR Marine’s consolidated operating revenues for the first quarter of 2025 were $55.5 million, operating loss was $5.3 million, and direct vessel profit (“DVP”)⁽¹⁾ was $13.6 million. This compares to consolidated operating revenues of $62.8 million, operating loss of $10.6 million, and DVP of $14.7 million in the first quarter of 2024, and consolidated operating revenues of $69.8 million, operating income of $10.6 million, and DVP of $23.1 million in the fourth quarter of 2024.

Notable first quarter items include:

11.6% decrease in revenues from the first quarter of 2024 and a 20.5% decrease from the fourth quarter of 2024.
Average day rates of $18,825, a 1.1% decrease from the first quarter of 2024, and flat from the fourth quarter of 2024.
60% utilization, a decrease from 62% in the first quarter of 2024 and from 72% in the fourth quarter of 2024.
DVP margin of 24.5%, an increase from 23.4% in the first quarter of 2024 and a decrease from 33.1% in the fourth quarter of 2024, due in part to $5.2 million of drydocking and major repairs during the first quarter of 2025 compared to $8.5 million in the first quarter of 2024 and $3.5 million in the fourth quarter of 2024, all of which are expensed as incurred.
Completed the sale of one 2005 built liftboat which had been in long-term layup for total proceeds of $7.5 million and a gain of $5.6 million.
At the end of the first quarter of 2025, the Company had three vessels as held for sale, consisting of two platform supply vessels (“PSVs”) and one fast supply vessel (“FSV”). The sales of these vessels closed in April 2025 for total proceeds of $33.2 million and a gain of $20.6 million, and the proceeds were used to (a) fund the repurchase of shares and warrants from Carlyle and (b) partially fund the construction of two new PSVs scheduled to deliver in the fourth quarter of 2026 and first quarter of 2027.

For the first quarter of 2025, net loss was $15.5 million ($0.56 loss per basic and diluted share). This compares to a net loss for the first quarter of 2024 of $23.1 million ($0.84 loss per basic and diluted share). Sequentially, the first quarter 2025 results compare to a net loss of $26.2 million ($0.94 loss per basic and diluted share) in the fourth quarter of 2024. All per share calculations do not reflect the share and warrant repurchase that occurred on April 4, 2025 as further discussed below.

Chief Executive Officer John Gellert commented:

“The first quarter results reflect lower utilization during our seasonally low first quarter, as well as flat average rates compared to the last two quarters of 2024. We typically target maintenance, drydocking and repositioning activities during the first quarter to take advantage of seasonality. Such activities accounted for a higher percentage of our utilization loss this quarter compared to the first quarter of 2024, although the associated expenses were substantially down. Average rates held stable for a third consecutive quarter, despite continued market softness in the North Sea and the Gulf of America, as well as customer delays in Mexico.

We continue to see healthy tendering activity in international markets where SEACOR Marine is active, such as South America, West Africa and the Middle East. We have reduced our exposure in the North Sea, and will be closely monitoring our customer activity in the U.S., particularly in the decommissioning market in the Gulf of America, as we enter the seasonally higher quarters of the year.

As previously announced, on April 4, 2025, we repurchased shares and warrants representing 9.1% of the outstanding shares of common stock of the Company, assuming the full exercise of the warrants, from Carlyle. The aggregate purchase price was approximately $12.9 million. This was a unique opportunity to buy back a significant number of shares and warrants in a single block, and to simplify our capital structure by eliminating all outstanding warrants. We funded this repurchase with a portion of the proceeds from the sale of one PSV built in 2014 that was classified as held for sale at the end of the first quarter.

I am confident about SEACOR Marine’s positioning for the rest of 2025, even in an unpredictable macro environment. We have mostly rotated out of markets with high spot exposure and/or lower specification assets. We have a modern fleet, with additional high specification vessels scheduled to deliver in less than two years.”
___________________

(1)		Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.

SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
For all other requests, contact InvestorRelations@seacormarine.com

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except share data)

	Three Months Ended March 31,
	2025			2024
Operating Revenues	$	55,499		$	62,770
Costs and Expenses:
Operating		41,928			48,099
Administrative and general		11,486			11,917
Lease expense		337			481
Depreciation and amortization		12,810			12,882
		66,561			73,379
Gains (Losses) on Asset Dispositions and Impairments, Net		5,809			(1	)
Operating Loss		(5,253	)		(10,610	)
Other Income (Expense):
Interest income		436			593
Interest expense		(9,586	)		(10,309	)
Derivative gains (losses), net		125			(543	)
Foreign currency losses, net		(1,196	)		(80	)
Other, net		—			(95	)
		(10,221	)		(10,434	)
Loss Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies		(15,474	)		(21,044	)
Income Tax Expense		904			925
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies		(16,378	)		(21,969	)
Equity in Earnings (Losses) of 50% or Less Owned Companies		889			(1,100	)
Net Loss	$	(15,489	)	$	(23,069	)

Net Loss Per Share:
Basic	$	(0.56	)	$	(0.84	)
Diluted	$	(0.56	)	$	(0.84	)
Weighted Average Common Stock and Warrants Outstanding:
Basic		27,908,297			27,343,604
Diluted		27,908,297			27,343,604

SEACOR MARINE HOLDINGS INC. UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (in thousands, except statistics and per share data)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
Time Charter Statistics:
Average Rates Per Day	$	18,825		$	18,901		$	18,879		$	19,141		$	19,042
Fleet Utilization		60	%		72	%		67	%		69	%		62	%
Fleet Available Days ⁽²⁾		4,583			4,870			5,026			4,994			5,005
Operating Revenues:
Time charter	$	51,933		$	66,095		$	63,313		$	65,649		$	59,263
Bareboat charter		708			364			372			364			364
Other marine services		2,858			3,349			5,231			3,854			3,143
		55,499			69,808			68,916			69,867			62,770
Costs and Expenses:
Operating:
Personnel		18,537			20,365			21,940			21,566			21,670
Repairs and maintenance		8,520			10,433			9,945			10,244			9,763
Drydocking		3,869			2,467			6,068			6,210			6,706
Insurance and loss reserves		2,153			2,473			2,584			3,099			1,738
Fuel, lubes and supplies		4,546			4,884			6,574			3,966			4,523
Other		4,303			6,104			5,796			4,435			3,699
		41,928			46,726			52,907			49,520			48,099
Direct Vessel Profit ⁽¹⁾		13,571			23,082			16,009			20,347			14,671
Other Costs and Expenses:
Lease expense		337			347			364			486			481
Administrative and general		11,486			10,888			11,019			10,889			11,917
Depreciation and amortization		12,810			12,879			12,928			12,939			12,882
		24,633			24,114			24,311			24,314			25,280
Gains (Losses) on Asset Dispositions and Impairments, Net		5,809			11,624			1,821			37			(1	)
Operating (Loss) Income		(5,253	)		10,592			(6,481	)		(3,930	)		(10,610	)
Other Income (Expense):
Interest income		436			372			358			445			593
Interest expense		(9,586	)		(10,001	)		(10,127	)		(10,190	)		(10,309	)
Derivative gains (losses), net		125			(536	)		67			104			(543	)
Loss on debt extinguishment		—			(31,923	)		—			—			—
Foreign currency (losses) gains, net		(1,196	)		1,308			(1,717	)		(560	)		(80	)
Other, net		—			187			29			—			(95	)
		(10,221	)		(40,593	)		(11,390	)		(10,201	)		(10,434	)
Loss Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies		(15,474	)		(30,001	)		(17,871	)		(14,131	)		(21,044	)
Income Tax Expense (Benefit)		904			(2,345	)		(513	)		(682	)		925
Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies		(16,378	)		(27,656	)		(17,358	)		(13,449	)		(21,969	)
Equity in Earnings (Losses) of 50% or Less Owned Companies		889			1,430			1,012			966			(1,100	)
Net Loss	$	(15,489	)	$	(26,226	)	$	(16,346	)	$	(12,483	)	$	(23,069	)

Net Loss Per Share:
Basic	$	(0.56	)	$	(0.94	)	$	(0.59	)	$	(0.45	)	$	(0.84	)
Diluted	$	(0.56	)	$	(0.94	)	$	(0.59	)	$	(0.45	)	$	(0.84	)
Weighted Average Common Stock and Warrants Outstanding:
Basic		27,908			27,773			27,773			27,729			27,344
Diluted		27,908			27,773			27,773			27,729			27,344
Common Shares and Warrants Outstanding at Period End		29,488			28,950			28,950			28,941			28,906

_______________
(1) See full description of footnote above.
(2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*United States, primarily Gulf of America*
Time Charter Statistics:
Average rates per day worked	$	23,874		$	26,116		$	17,188		$	22,356		$	28,156
Fleet utilization		25	%		45	%		42	%		37	%		27	%
Fleet available days		1,121			920			920			921			927
Out-of-service days for repairs, maintenance and drydockings		153			75			116			179			137
Out-of-service days for cold-stacked status ⁽²⁾		173			184			175			127			182
Operating Revenues:
Time charter	$	6,765		$	10,744		$	6,593		$	7,697		$	6,957
Other marine services		235			1,114			1,188			480			1,026
		7,000			11,858			7,781			8,177			7,983
Direct Costs and Expenses:
Operating:
Personnel		6,486			6,097			6,297			6,284			5,781
Repairs and maintenance		1,479			1,680			1,655			1,879			1,404
Drydocking		1,066			1,451			2,615			2,570			1,968
Insurance and loss reserves		702			854			799			943			396
Fuel, lubes and supplies		819			854			964			866			667
Other		349			229			225			226			(171	)
		10,901			11,165			12,555			12,768			10,045
Direct Vessel (Loss) Profit ⁽¹⁾	$	(3,901	)	$	693		$	(4,774	)	$	(4,591	)	$	(2,062	)
Other Costs and Expenses:
Lease expense	$	136		$	136		$	140		$	141		$	138
Depreciation and amortization		3,705			3,196			3,194			3,194			2,750

*Africa and Europe*
Time Charter Statistics:
Average rates per day worked	$	17,294		$	16,895		$	18,875		$	18,580		$	15,197
Fleet utilization		70	%		73	%		77	%		74	%		76	%
Fleet available days		1,710			1,856			1,990			1,969			1,775
Out-of-service days for repairs, maintenance and drydockings		382			180			203			203			238
Out-of-service days for cold-stacked status		—			—			58			91			91
Operating Revenues:
Time charter	$	20,835		$	22,999		$	28,809		$	27,047		$	20,555
Other marine services		852			1,027			3,048			1,028			169
		21,687			24,026			31,857			28,075			20,724
Direct Costs and Expenses:
Operating:
Personnel		5,183			5,654			6,083			4,969			5,181
Repairs and maintenance		3,462			3,712			3,455			3,161			3,209
Drydocking		1,241			835			681			1,226			2,032
Insurance and loss reserves		594			577			599			819			334
Fuel, lubes and supplies		2,180			2,226			2,514			1,170			1,287
Other		2,727			3,748			3,975			2,801			2,199
		15,387			16,752			17,307			14,146			14,242
Direct Vessel Profit ⁽¹⁾	$	6,300		$	7,274		$	14,550		$	13,929		$	6,482
Other Costs and Expenses:
Lease expense	$	63		$	82		$	75		$	172		$	178
Depreciation and amortization		4,402			4,477			4,540			4,565			3,915

_______________
(1) See full description of footnote above.
(2) Includes one FSV cold-stacked in this region as of March 31, 2025.

SEACOR MARINE HOLDINGS INC. UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*Middle East and Asia*
Time Charter Statistics:
Average rates per day worked	$	17,848		$	17,337		$	17,825		$	17,083		$	16,934
Fleet utilization		75	%		88	%		71	%		82	%		71	%
Fleet available days		1,170			1,266			1,288			1,296			1,365
Out-of-service days for repairs, maintenance and drydockings		82			30			229			168			224
Operating Revenues:
Time charter	$	15,710		$	19,385		$	16,411		$	18,073		$	16,477
Other marine services		292			635			375			619			350
		16,002			20,020			16,786			18,692			16,827
Direct Costs and Expenses:
Operating:
Personnel		4,927			5,470			5,769			6,930			5,963
Repairs and maintenance		2,505			3,574			3,318			3,443			2,712
Drydocking		1,031			(226	)		832			707			1,483
Insurance and loss reserves		702			804			927			798			618
Fuel, lubes and supplies		883			840			1,043			1,103			1,198
Other		881			1,305			1,131			989			1,000
		10,929			11,767			13,020			13,970			12,974
Direct Vessel Profit ⁽¹⁾	$	5,073		$	8,253		$	3,766		$	4,722		$	3,853
Other Costs and Expenses:
Lease expense	$	83		$	72		$	73		$	71		$	85
Depreciation and amortization		3,230			3,272			3,261			3,247			3,496

*Latin America*
Time Charter Statistics:
Average rates per day worked	$	22,084		$	21,390		$	21,984		$	22,437		$	28,308
Fleet utilization		67	%		73	%		63	%		71	%		58	%
Fleet available days ⁽²⁾		582			828			828			808			938
Out-of-service days for repairs, maintenance and drydockings		—			20			94			41			1
Operating Revenues:
Time charter	$	8,623		$	12,967		$	11,500		$	12,832		$	15,274
Bareboat charter		708			364			372			364			364
Other marine services		1,479			573			620			1,727			1,598
		10,810			13,904			12,492			14,923			17,236
Direct Costs and Expenses:
Operating:
Personnel		1,941			3,144			3,791			3,383			4,745
Repairs and maintenance		1,074			1,467			1,517			1,761			2,438
Drydocking		531			407			1,940			1,707			1,223
Insurance and loss reserves		155			238			259			539			390
Fuel, lubes and supplies		664			964			2,053			827			1,371
Other		346			822			465			419			671
		4,711			7,042			10,025			8,636			10,838
Direct Vessel Profit ⁽¹⁾	$	6,099		$	6,862		$	2,467		$	6,287		$	6,398
Other Costs and Expenses:
Lease expense	$	55		$	57		$	76		$	102		$	80
Depreciation and amortization		1,473			1,934			1,933			1,933			2,721

_______________
(1) See full description of footnote above.
(2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*AHTS*
Time Charter Statistics:
Average rates per day worked	$	—		$	10,410		$	10,316		$	8,125		$	8,538
Fleet utilization		—	%		79	%		46	%		49	%		75	%
Fleet available days		—			178			334			364			364
Out-of-service days for repairs, maintenance and drydockings		—			28			87			29			—
Out-of-service days for cold-stacked status		—			—			58			91			91
Operating Revenues:
Time charter	$	15		$	1,465		$	1,576		$	1,459		$	2,331
Other marine services		9			—			13			219			—
		24			1,465			1,589			1,678			2,331
Direct Costs and Expenses:
Operating:
Personnel	$	1		$	595		$	981		$	1,045		$	1,064
Repairs and maintenance		38			128			239			465			220
Drydocking		—			5			436			280			68
Insurance and loss reserves		—			49			66			97			43
Fuel, lubes and supplies		66			25			90			69			616
Other		12			210			263			230			287
		117			1,012			2,075			2,186			2,298
Other Costs and Expenses:
Lease expense	$	—		$	7		$	4		$	164		$	171
Depreciation and amortization		4			122			175			175			175

*FSV*
Time Charter Statistics:
Average rates per day worked	$	13,786		$	13,643		$	13,102		$	12,978		$	11,834
Fleet utilization		71	%		72	%		81	%		80	%		72	%
Fleet available days		1,980			2,024			2,024			2,002			2,002
Out-of-service days for repairs, maintenance and drydockings		135			118			96			128			216
Out-of-service days for cold-stacked status		90			92			83			36			91
Operating Revenues:
Time charter	$	19,357		$	19,992		$	21,606		$	20,698		$	17,081
Other marine services		762			416			1,012			516			126
		20,119			20,408			22,618			21,214			17,207
Direct Costs and Expenses:
Operating:
Personnel	$	4,933		$	5,078		$	5,637		$	5,829		$	5,649
Repairs and maintenance		2,983			4,480			4,378			4,572			3,093
Drydocking		353			426			448			457			1,869
Insurance and loss reserves		517			422			532			546			277
Fuel, lubes and supplies		1,173			1,586			1,962			993			1,051
Other		1,782			2,456			2,238			1,850			1,649
		11,741			14,448			15,195			14,247			13,588
Other Costs and Expenses:
Depreciation and amortization	$	4,932		$	4,746		$	4,744		$	4,746		$	4,744

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*PSV*
Time Charter Statistics:
Average rates per day worked	$	19,424		$	17,912		$	21,819		$	20,952		$	19,133
Fleet utilization		55	%		72	%		58	%		66	%		53	%
Fleet available days ⁽¹⁾		1,890			1,932			1,932			1,900			1,911
Out-of-service days for repairs, maintenance and drydockings		396			117			349			291			307
Operating Revenues:
Time charter	$	20,286		$	24,865		$	24,488		$	26,390		$	19,390
Bareboat charter		708			364			372			364			364
Other marine services		508			1,561			2,855			2,266			416
		21,502			26,790			27,715			29,020			20,170
Direct Costs and Expenses:
Operating:
Personnel	$	8,351		$	8,999		$	9,360		$	8,979		$	8,850
Repairs and maintenance		3,949			4,101			3,798			3,151			4,393
Drydocking		2,513			1,046			2,629			2,616			3,386
Insurance and loss reserves		631			618			636			1,037			395
Fuel, lubes and supplies		2,594			2,379			3,594			1,575			1,889
Other		2,018			2,566			2,821			1,850			1,395
		20,056			19,709			22,838			19,208			20,308
Other Costs and Expenses:
Lease expense	$	—		$	—		$	(3	)	$	3		$	—
Depreciation and amortization		4,133			4,122			4,117			4,128			4,073

_______________
(1) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

SEACOR MARINE HOLDINGS INC. UNAUDITED PERFORMANCE BY VESSEL CLASS (continued) (in thousands, except statistics)

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
*Liftboats*
Time Charter Statistics:
Average rates per day worked	$	39,559		$	39,326		$	36,423		$	43,204		$	53,506
Fleet utilization		44	%		68	%		58	%		54	%		53	%
Fleet available days		713			736			736			728			728
Out-of-service days for repairs, maintenance and drydockings		87			41			109			143			78
Out-of-service days for cold-stacked status		83			92			92			91			91
Operating Revenues:
Time charter	$	12,275		$	19,773		$	15,643		$	17,102		$	20,461
Other marine services		1,289			1,177			1,142			666			1,772
		13,564			20,950			16,785			17,768			22,233
Direct Costs and Expenses:
Operating:
Personnel	$	5,247		$	5,678		$	5,926		$	6,842		$	6,140
Repairs and maintenance		1,571			1,722			1,531			2,054			2,035
Drydocking		1,003			990			2,555			2,857			1,383
Insurance and loss reserves		1,241			1,384			1,334			1,482			1,282
Fuel, lubes and supplies		712			894			928			1,329			967
Other		482			860			473			519			343
		10,256			11,528			12,747			15,083			12,150
Other Costs and Expenses:
Depreciation and amortization		3,719			3,866			3,866			3,865			3,866

*Other Activity*
Operating Revenues:
Other marine services	$	290		$	195		$	209		$	187		$	829
		290			195			209			187			829
Direct Costs and Expenses:
Operating:
Personnel	$	5		$	15		$	36		$	(1,129	)	$	(33	)
Repairs and maintenance		(21	)		2			(1	)		2			22
Insurance and loss reserves		(236	)		—			16			(63	)		(259	)
Fuel, lubes and supplies		1			—			—			—			—
Other		9			12			1			(14	)		25
		(242	)		29			52			(1,204	)		(245	)
Other Costs and Expenses:
Lease expense	$	337		$	340		$	363		$	319		$	310
Depreciation and amortization		22			23			26			25			24

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	42,988		$	59,491		$	35,601		$	40,605		$	59,593
Restricted cash		2,440			16,649			2,263			2,255			2,566
Receivables:
Trade, net of allowance for credit loss		63,946			69,888			76,497			70,770			58,272
Other		8,811			7,913			7,841			6,210			12,210
Tax receivable		1,602			1,601			983			983			983
Inventories		2,827			2,760			3,139			3,117			2,516
Prepaid expenses and other		6,075			4,406			4,840			5,659			3,425
Assets held for sale		12,195			10,943			—			500			500
Total current assets		140,884			173,651			131,164			130,099			140,065
Property and Equipment:
Historical cost		881,961			900,414			921,445			921,443			919,139
Accumulated depreciation		(365,422	)		(367,448	)		(362,604	)		(349,799	)		(337,001	)
		516,539			532,966			558,841			571,644			582,138
Construction in progress		27,248			11,904			11,935			11,518			13,410
Net property and equipment		543,787			544,870			570,776			583,162			595,548
Right-of-use asset – operating leases		3,293			3,436			3,575			3,683			3,988
Right-of-use asset – finance leases		28			36			19			28			29
Investments, at equity, and advances to 50% or less owned companies		4,507			3,541			2,046			2,641			3,122
Other assets		1,665			1,577			1,864			1,953			2,094
Total assets	$	694,164		$	727,111		$	709,444		$	721,566		$	744,846
LIABILITIES AND EQUITY
Current Liabilities:
Current portion of operating lease liabilities	$	540		$	606		$	494		$	861		$	1,285
Current portion of finance lease liabilities		11			17			17			26			33
Current portion of long-term debt		30,000			27,500			28,605			28,605			28,605
Accounts payable		28,445			29,236			22,744			17,790			23,453
Other current liabilities		16,414			27,683			28,808			23,795			21,067
Total current liabilities		75,410			85,042			80,668			71,077			74,443
Long-term operating lease liabilities		2,926			2,982			3,221			3,276			3,390
Long-term finance lease liabilities		17			20			4			5			—
Long-term debt		310,108			317,339			272,325			277,740			281,989
Deferred income taxes		20,312			22,037			26,802			30,083			33,873
Deferred gains and other liabilities		1,356			1,369			1,416			1,447			2,285
Total liabilities		410,129			428,789			384,436			383,628			395,980
Equity:
SEACOR Marine Holdings Inc. stockholders’ equity:
Common stock		293			287			287			286			286
Additional paid-in capital		480,904			479,283			477,661			476,020			474,433
Accumulated deficit		(196,089	)		(180,600	)		(154,374	)		(138,028	)		(125,609	)
Shares held in treasury		(9,628	)		(8,110	)		(8,110	)		(8,110	)		(8,071	)
Accumulated other comprehensive income, net of tax		8,234			7,141			9,223			7,449			7,506
		283,714			298,001			324,687			337,617			348,545
Noncontrolling interests in subsidiaries		321			321			321			321			321
Total equity		284,035			298,322			325,008			337,938			348,866
Total liabilities and equity	$	694,164		$	727,111		$	709,444		$	721,566		$	744,846

SEACOR MARINE HOLDINGS INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)

				Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024
Cash Flows from Operating Activities:
Net Loss	$	(15,489	)	$	(26,226	)	$	(16,346	)	$	(12,483	)	$	(23,069	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		12,810			12,879			12,928			12,939			12,882
Deferred financing costs amortization		43			254			298			297			295
Stock-based compensation expense		1,627			1,622			1,604			1,587			1,645
Debt discount amortization		226			1,799			2,061			1,993			1,926
Allowance for credit losses		(407	)		59			101			39			3
(Gains) losses from equipment sales, retirements or impairments		(5,809	)		(11,624	)		(1,821	)		(37	)		1
Losses on debt extinguishment		—			28,252			—			—			—
Derivative (gains) losses		(125	)		536			(67	)		(104	)		543
Interest on finance lease		1			2			—			1			—
Settlements on derivative transactions, net		(373	)		—			—			—			164
Currency losses (gains)		1,196			(1,308	)		1,717			560			80
Deferred income taxes		(1,725	)		(4,766	)		(3,281	)		(3,790	)		(1,845	)
Equity (earnings) losses		(889	)		(1,430	)		(1,012	)		(966	)		1,100
Dividends received from equity investees		—			—			1,498			1,418			—
Changes in Operating Assets and Liabilities:
Accounts receivables		5,333			5,448			(7,411	)		(6,928	)		4,291
Other assets		(1,681	)		1,338			1,032			(2,395	)		(1,290	)
Accounts payable and accrued liabilities		(6,204	)		1,693			9,325			(4,378	)		(3,895	)
Net cash (used in) provided by operating activities		(11,466	)		8,528			626			(12,247	)		(7,169	)
Cash Flows from Investing Activities:
Purchases of property and equipment		(20,795	)		(3,010	)		(210	)		(658	)		(3,416	)
Proceeds from disposition of property and equipment		8,472			22,441			2,331			86			—
Net cash (used in) provided by investing activities		(12,323	)		19,431			2,121			(572	)		(3,416	)
Cash Flows from Financing Activities:
Payments on long-term debt		(5,000	)		(2,479	)		(7,770	)		(6,533	)		(7,530	)
Payments on debt extinguishment		—			(328,712	)		—			—			—
Payments on debt extinguishment cost		—			(3,671	)		—			—			—
Proceeds from issuance of long-term debt, net of debt discount and issuance costs		(396	)		345,192			—			—			—
Payments on finance leases		(9	)		(13	)		(10	)		(9	)		(9	)
Proceeds from exercise of stock options and warrants		—			—			38			102			—
Tax withholdings on restricted stock vesting		(1,518	)		—			—			(39	)		(3,850	)
Net cash (used in) provided by financing activities		(6,923	)		10,317			(7,742	)		(6,479	)		(11,389	)
Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents		—			—			(1	)		(1	)		2
Net Change in Cash, Restricted Cash and Cash Equivalents		(30,712	)		38,276			(4,996	)		(19,299	)		(21,972	)
Cash, Restricted Cash and Cash Equivalents, Beginning of Period		76,140			37,864			42,860			62,159			84,131
Cash, Restricted Cash and Cash Equivalents, End of Period	$	45,428		$	76,140		$	37,864		$	42,860		$	62,159

SEACOR MARINE HOLDINGS INC. UNAUDITED FLEET COUNTS

	Owned		Managed		Total
March 31, 2025
AHTS		—		2		2
FSV		22		1		23
PSV		21		—		21
Liftboats		7		—		7
		50		3		53
December 31, 2024
AHTS		—		2		2
FSV		22		1		23
PSV		21		—		21
Liftboats		8		—		8
		51		3		54

The MIL Network –

May 1, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

First Quarter Highlights

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

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

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

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

Outlook

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

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

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

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

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

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

Use of Non-GAAP Financial Information:

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

About FormFactor:

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

Forward-looking Statements:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About our Non-GAAP Financial Measures:

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

Source: FormFactor, Inc.
FORM-F

The MIL Network –

May 1, 2025

MIL-OSI: Credit Acceptance Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Southfield, Michigan, April 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $106.3 million, or $8.66 per diluted share, for the three months ended March 31, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2025 was $114.8 million, or $9.35 per diluted share. The following table summarizes our financial results:

(In millions, except per share data)	For the Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
GAAP net income	$	106.3	$	151.9	$	64.3
GAAP net income per diluted share	$	8.66	$	12.26	$	5.08

Adjusted net income	$	114.8	$	126.0	$	117.4
Adjusted net income per diluted share	$	9.35	$	10.17	$	9.28

Our results and achievements for the first quarter of 2025 included the following:

A modest decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $20.9 million, or 0.2%, and slower forecasted net cash flow timing.
An 11.0% increase in the average balance of our loan portfolio from the first quarter of 2024 to $7.9 billion, which is our largest ever.
A decline in Consumer Loan assignment unit and dollar volumes of 10.1% and 15.5%, respectively, as compared to the first quarter of 2024.
The repurchase of approximately 329,000 shares, or 2.7% of the shares outstanding at the beginning of the quarter.
The enrollment of 1,617 new dealers with 10,789 active dealers during the quarter.
$68.0 million in dealer holdback and accelerated dealer holdback payments to dealers.
Maintained a strong liquidity position, with over $2.2 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of March 31, 2025.
Named a Top Workplaces USA award winner for the fifth year in a row, with a #2 ranking among companies of our size.

Consumer Loan Metrics

Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested.

We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2025, with the aggregated forecasts as of December 31, 2024, and at the time of assignment, segmented by year of assignment:

	Forecasted Collection Percentage as of (1)						Current Forecast Variance from
Consumer Loan Assignment Year	March 31, 2025		December 31, 2024		Initial Forecast		December 31, 2024		Initial Forecast
2016	63.9	%	63.9	%	65.4	%	0.0	%	-1.5	%
2017	64.8	%	64.7	%	64.0	%	0.1	%	0.8	%
2018	65.5	%	65.5	%	63.6	%	0.0	%	1.9	%
2019	67.2	%	67.2	%	64.0	%	0.0	%	3.2	%
2020	67.9	%	67.7	%	63.4	%	0.2	%	4.5	%
2021	63.9	%	63.8	%	66.3	%	0.1	%	-2.4	%
2022	60.0	%	60.2	%	67.5	%	-0.2	%	-7.5	%
2023	64.3	%	64.3	%	67.5	%	0.0	%	-3.2	%
2024	66.3	%	66.5	%	67.2	%	-0.2	%	-0.9	%
2025	66.0	%	—		66.2	%	—		-0.2	%

^{(1) Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

For the three months ended March 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020, declined for Consumer Loans assigned in 2022, 2024, and 2025, and were generally consistent with expectations at the start of the period for all other assignment years presented.

The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last five quarters are shown in the following table:

(Dollars in millions)	Decrease in Forecasted Net Cash Flows
Three Months Ended	Total Loans		% Change from Forecast at Beginning of Period
March 31, 2024	$	(30.8)	-0.3	%
June 30, 2024		(189.3)	-1.7	%
September 30, 2024		(62.8)	-0.6	%
December 31, 2024		(31.1)	-0.3	%
March 31, 2025		(20.9)	-0.2	%

The following table presents information on Consumer Loan assignments for each of the last 10 years:

	Average					Total Assignment Volume
Consumer Loan Assignment Year	Consumer Loan (1)		Advance (2)		Initial Loan Term (in months)	Unit Volume	Dollar Volume (2) (in millions)
2016	$	18,218	$	7,976	53	330,710	$	2,635.5
2017		20,230		8,746	55	328,507		2,873.1
2018		22,158		9,635	57	373,329		3,595.8
2019		23,139		10,174	57	369,805		3,772.2
2020		24,262		10,656	59	341,967		3,641.2
2021		25,632		11,790	59	268,730		3,167.8
2022		27,242		12,924	60	280,467		3,625.3
2023		27,025		12,475	61	332,499		4,147.8
2024		26,497		11,961	61	386,126		4,618.4
2025 (3)		25,188		11,096	60	100,278		1,112.7

^{(1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.}
^{(2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(3)   Represents activity for the three months ended March 31, 2025. Information in this table for each of the years prior to 2025 represents activity for all 12 months of that year.}

The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2025, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

	Forecasted Collection % as of						Spread % as of
Consumer Loan Assignment Year	March 31, 2025		Initial Forecast		Advance % (1)		March 31, 2025		Initial Forecast		% of Forecast Realized (2)
2016	63.9	%	65.4	%	43.8	%	20.1	%	21.6	%	99.6	%
2017	64.8	%	64.0	%	43.2	%	21.6	%	20.8	%	99.3	%
2018	65.5	%	63.6	%	43.5	%	22.0	%	20.1	%	98.8	%
2019	67.2	%	64.0	%	44.0	%	23.2	%	20.0	%	97.5	%
2020	67.9	%	63.4	%	43.9	%	24.0	%	19.5	%	93.9	%
2021	63.9	%	66.3	%	46.0	%	17.9	%	20.3	%	86.3	%
2022	60.0	%	67.5	%	47.4	%	12.6	%	20.1	%	70.6	%
2023	64.3	%	67.5	%	46.2	%	18.1	%	21.3	%	49.3	%
2024	66.3	%	67.2	%	45.1	%	21.2	%	22.1	%	22.9	%
2025	66.0	%	66.2	%	44.2	%	21.8	%	22.0	%	2.5	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}
^{(2) Presented as a percentage of total forecasted collections.}

The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

The spread between the forecasted collection rate as of March 31, 2025 and the advance rate ranges from 12.6% to 24.0%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2021 through 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of March 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2024 Consumer Loans has been lower than our initial estimates by a greater margin than 2025 Consumer Loans.

The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2025 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

	Dealer Loans						Purchased Loans
	Forecasted Collection Percentage as of (1)						Forecasted Collection Percentage as of (1)
Consumer Loan Assignment Year	March 31, 2025		Initial Forecast		Variance		March 31, 2025		Initial Forecast		Variance
2016	63.1	%	65.1	%	-2.0	%	66.1	%	66.5	%	-0.4	%
2017	64.1	%	63.8	%	0.3	%	66.4	%	64.6	%	1.8	%
2018	64.9	%	63.6	%	1.3	%	66.8	%	63.5	%	3.3	%
2019	66.9	%	63.9	%	3.0	%	67.9	%	64.2	%	3.7	%
2020	67.7	%	63.3	%	4.4	%	68.1	%	63.6	%	4.5	%
2021	63.6	%	66.3	%	-2.7	%	64.4	%	66.3	%	-1.9	%
2022	59.2	%	67.3	%	-8.1	%	61.9	%	68.0	%	-6.1	%
2023	63.0	%	66.8	%	-3.8	%	67.7	%	69.4	%	-1.7	%
2024	65.2	%	66.3	%	-1.1	%	70.6	%	70.7	%	-0.1	%
2025	64.7	%	64.9	%	-0.2	%	70.5	%	70.7	%	-0.2	%

^{(1) The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.}

The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of March 31, 2025 for dealer loans and purchased loans separately. All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

	Dealer Loans						Purchased Loans
Consumer Loan Assignment Year	Forecasted Collection % (1)		Advance % (1)(2)		Spread %		Forecasted Collection % (1)		Advance % (1)(2)		Spread %
2016	63.1	%	42.1	%	21.0	%	66.1	%	48.6	%	17.5	%
2017	64.1	%	42.1	%	22.0	%	66.4	%	45.8	%	20.6	%
2018	64.9	%	42.7	%	22.2	%	66.8	%	45.2	%	21.6	%
2019	66.9	%	43.1	%	23.8	%	67.9	%	45.6	%	22.3	%
2020	67.7	%	43.0	%	24.7	%	68.1	%	45.5	%	22.6	%
2021	63.6	%	45.1	%	18.5	%	64.4	%	47.7	%	16.7	%
2022	59.2	%	46.4	%	12.8	%	61.9	%	50.1	%	11.8	%
2023	63.0	%	44.8	%	18.2	%	67.7	%	49.8	%	17.9	%
2024	65.2	%	44.1	%	21.1	%	70.6	%	48.9	%	21.7	%
2025	64.7	%	42.8	%	21.9	%	70.5	%	49.1	%	21.4	%

^{(1) The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.}
^{(2) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans. Payments of dealer holdback and accelerated dealer holdback are not included.}

Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

The spread as of March 31, 2025 on 2025 dealer loans was 21.9%, as compared to a spread of 21.1% on 2024 dealer loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2024 dealer loans has been lower than our initial estimates by a greater margin than 2025 dealer loans.

The spread as of March 31, 2025 on 2025 purchased loans was 21.4%, as compared to a spread of 21.7% on 2024 purchased loans. The decrease was primarily a result of a lower initial spread on 2025 purchased loans, due to a higher advance rate.

Consumer Loan Volume

The following table summarizes changes in Consumer Loan assignment volume in each of the last five quarters as compared to the same period in the previous year:

	Year over Year Percent Change
Three Months Ended	Unit Volume		Dollar Volume (1)
March 31, 2024	24.1	%	20.2	%
June 30, 2024	20.9	%	16.3	%
September 30, 2024	17.7	%	12.2	%
December 31, 2024	0.3	%	-4.9	%
March 31, 2025	-10.1	%	-15.5	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

Unit and dollar volumes declined 10.1% and 15.5%, respectively, during the first quarter of 2025 as the number of active dealers declined 0.1% and the average unit volume per active dealer declined 9.7%. Dollar volume declined by more than unit volume during the first quarter of 2025 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended April 28, 2025 decreased 9.8% compared to the same period in 2024.

The following table summarizes the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended March 31,
	2025	2024	% Change
Consumer Loan unit volume	100,278	111,488	-10.1	%
Active dealers (1)	10,789	10,805	-0.1	%
Average volume per active dealer	9.3	10.3	-9.7	%

Consumer Loan unit volume from dealers active both periods	80,926	93,406	-13.4	%
Dealers active both periods	7,067	7,067	—
Average volume per dealer active both periods	11.5	13.2	-13.4	%

Consumer loan unit volume from dealers not active both periods	19,352	18,082	7.0	%
Dealers not active both periods	3,722	3,738	-0.4	%
Average volume per dealer not active both periods	5.2	4.8	8.3	%

^{(1) Active dealers are dealers who have received funding for at least one Consumer Loan during the period.}

The following table provides additional information on the changes in Consumer Loan unit volume and active dealers:

	For the Three Months Ended March 31,
	2025		2024		% Change
Consumer Loan unit volume from new active dealers	4,229		5,193		-18.6	%
New active dealers (1)	1,195		1,310		-8.8	%
Average volume per new active dealer	3.5		4.0		-12.5	%

Attrition (2)	-16.2	%	-16.0	%

^{(1) New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.}
^{(2) Attrition is measured according to the following formula: decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.}

The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last five quarters:

	Unit Volume				Dollar Volume (1)
Three Months Ended	Dealer Loans		Purchased Loans		Dealer Loans		Purchased Loans
March 31, 2024	78.2	%	21.8	%	76.6	%	23.4	%
June 30, 2024	78.5	%	21.5	%	77.3	%	22.7	%
September 30, 2024	79.5	%	20.5	%	78.4	%	21.6	%
December 31, 2024	78.7	%	21.3	%	77.7	%	22.3	%
March 31, 2025	77.0	%	23.0	%	75.1	%	24.9	%

^{(1) Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.}

As of March 31, 2025 and December 31, 2024, the net dealer loans receivable balance was 72.7% and 72.3%, respectively, of the total net loans receivable balance.

Financial Results

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025		2024	% Change
GAAP average debt	$	6,398.3	$	5,306.8	20.6	%
GAAP average shareholders’ equity		1,782.0		1,678.5	6.2	%
Average capital	$	8,180.3	$	6,985.3	17.1	%
GAAP net income	$	106.3	$	64.3	65.3	%
Diluted weighted average shares outstanding		12,279,446		12,646,529	-2.9	%
GAAP net income per diluted share	$	8.66	$	5.08	70.5	%

The increase in GAAP net income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

An increase in finance charges of 12.3% ($57.5 million), primarily due to an increase in the average balance of our loan portfolio.
A decrease in provision for credit losses of 13.0% ($24.1 million), due to:
- A decrease in provision for credit losses on forecast changes of $10.9 million, due to a smaller decline in Consumer Loan performance.
- A decrease in provision for credit losses on new Consumer Loan assignments of $13.2 million, due to a 10.1% decrease in Consumer Loan assignment unit volume and a 3.7% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2025 Consumer Loans.
An increase in operating expenses of 7.5% ($9.4 million), primarily due to an increase in salaries and wages expense of 12.9% ($10.1 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
An increase in provision for income taxes of 60.2% ($13.3 million), primarily due to an increase in pre-tax income.
An increase in interest expense of 24.0% ($22.2 million), primarily due to an increase in our average outstanding debt balance, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.

Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

Adjusted financial results for the three months ended March 31, 2025, compared to the same period in 2024, include the following:

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025			2024		% Change
Adjusted average capital	$	8,882.6		$	7,507.8		18.3	%
Adjusted net income	$	114.8		$	117.4		-2.2	%
Adjusted interest expense (after-tax)	$	88.3		$	71.2		24.0	%
Adjusted net income plus adjusted interest expense (after-tax)	$	203.1		$	188.6		7.7	%
Adjusted return on capital		9.2	%		10.1	%	-8.9	%
Cost of capital		7.6	%		7.3	%	4.1	%
Economic profit	$	35.3		$	51.4		-31.3	%
Diluted weighted average shares outstanding		12,279,446			12,646,529		-2.9	%
Adjusted net income per diluted share	$	9.35		$	9.28		0.8	%
Economic profit per diluted share	$	2.87		$	4.06		-29.3	%

Economic profit decreased 31.3% for the three months ended March 31, 2025, as compared to the same period in 2024. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024:

(In millions)	Year over Year Change in Economic Profit
	For the Three Months Ended March 31, 2025
Decrease in adjusted return on capital	$	(20.0)
Increase in cost of capital		(5.5)
Increase in adjusted average capital		9.4
Decrease in economic profit	$	(16.1)

The decrease in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

A decrease in our adjusted return on capital of 90 basis points, primarily due to:
- A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing throughout 2024 and the first quarter of 2025. The slower forecasted net cash flow timing was primarily due to lower-than-expected Consumer Loan prepayments, which remain below historical averages.
- Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 7.5% while adjusted average capital grew by 18.3%.
An increase in adjusted average capital of 18.3%, primarily due to an increase in the average balance of our loan portfolio.

The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

	For the Three Months Ended
	Mar. 31, 2025		Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023
Adjusted finance charges as a percentage of adjusted average loans receivable (1)	16.7	%	16.5	%	16.4	%	17.8	%	17.6	%	17.9	%	18.5	%	19.3	%
Adjusted revenue as a percentage of adjusted average capital (1)	18.0	%	18.4	%	18.2	%	19.6	%	19.8	%	20.2	%	20.7	%	21.2	%
Operating expenses as a percentage of adjusted average capital (1)	6.1	%	5.6	%	6.2	%	6.2	%	6.7	%	6.3	%	6.3	%	6.9	%
Adjusted return on capital (1)	9.2	%	9.8	%	9.3	%	10.3	%	10.1	%	10.6	%	11.1	%	11.1	%
Percentage change in adjusted average capital compared to the same period in the prior year	18.3	%	19.3	%	19.4	%	17.6	%	14.6	%	11.5	%	8.8	%	6.2	%

^{(1) Annualized.}

The decrease in adjusted return on capital for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, was primarily due to:

Faster growth in operating expenses, which decreased adjusted return on capital by 40 basis points, as operating expenses increased by 11.4% while adjusted average capital grew 2.9%. The $13.9 million increase in operating expenses was primarily due to the seasonal impact of the following:
- An increase in fringe benefits, primarily due to an increase in accrued paid time off.
- An increase in payroll taxes as a result of both taxes that are subject to income limitations and the taxes on the annual vesting of equity awards during the first quarter of the year.
- An increase in sales commissions driven by higher unit volume during the first quarter of the year.
A decrease in adjusted revenue as a percentage of adjusted average capital, primarily due to adjusted average capital growing faster than adjusted average loans receivable due to an increase in cash and cash equivalents, partially offset by an increase in the yield on our adjusted loan portfolio. The increase in cash and cash equivalents was primarily due to the timing of recently completed debt issuances and a decline in Consumer Loan assignment volume.

The following tables provide a reconciliation of non-GAAP measures to GAAP measures. Certain amounts do not recalculate due to rounding.

(Dollars in millions, except per share data)	For the Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023
Adjusted net income
GAAP net income (loss)	$	106.3		$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2
Floating yield adjustment (after-tax)		(118.9)			(116.8)			(115.1)			(96.1)			(92.4)			(83.9)			(76.4)			(73.9)
GAAP provision for credit losses (after-tax)		124.6			95.0			142.2			246.9			143.2			126.1			142.1			192.9
Loss on sale of building (after-tax) (1)		—			—			—			18.3			—			—			—			—
Senior notes adjustment (after-tax)		—			—			—			—			—			(2.6)			(0.5)			(0.6)
Income tax adjustment (2)		2.8			(4.1)			3.2			4.4			2.3			(4.1)			3.5			(0.6)
Adjusted net income	$	114.8		$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0

Adjusted net income per diluted share (3)	$	9.35		$	10.17		$	8.79		$	10.29		$	9.28		$	10.06		$	10.70		$	10.69
Diluted weighted average shares outstanding		12,279,446			12,388,072			12,415,143			12,282,174			12,646,529			12,837,181			13,039,638			13,099,961

Adjusted revenue
GAAP total revenue	$	571.1		$	565.9		$	550.3		$	538.2		$	508.0		$	491.6		$	478.6		$	477.9
Floating yield adjustment		(154.5)			(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)
GAAP provision for claims		(16.1)			(17.7)			(18.5)			(20.3)			(17.0)			(16.6)			(16.5)			(19.7)
Adjusted revenue	$	400.5		$	396.4		$	382.4		$	393.1		$	371.0		$	366.1		$	362.8		$	362.1

Adjusted average capital
GAAP average debt	$	6,398.3		$	6,202.5		$	6,071.1		$	5,818.2		$	5,306.8		$	4,986.3		$	4,831.4		$	4,730.3
Deferred debt issuance adjustment		—			—			—			—			—			20.9			24.5			24.0
Senior notes debt adjustment		—			—			—			—			—			2.8			3.4			3.4
Adjusted average debt		6,398.3			6,202.5			6,071.1			5,818.2			5,306.8			5,010.0			4,859.3			4,757.7
GAAP average shareholders’ equity		1,782.0			1,712.3			1,594.2			1,623.5			1,678.5			1,734.3			1,731.3			1,752.6
Senior notes equity adjustment		—			—			—			—			—			2.0			2.9			3.4
Income tax adjustment (4)		(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)			(118.5)
Floating yield adjustment		820.8			837.0			840.8			710.1			641.0			606.5			548.9			433.9
Adjusted average equity		2,484.3			2,430.8			2,316.5			2,215.1			2,201.0			2,224.3			2,164.6			2,071.4
Adjusted average capital	$	8,882.6		$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1
Adjusted revenue as a percentage of adjusted average capital (5)		18.0	%		18.4	%		18.2	%		19.6	%		19.8	%		20.2	%		20.7	%		21.2	%

Adjusted loans receivable
GAAP loans receivable, net	$	7,978.2		$	7,850.3		$	7,781.5		$	7,547.7		$	7,345.6		$	6,955.3		$	6,780.5		$	6,610.3
Floating yield adjustment		1,079.8			1,072.4			1,100.8			1,065.6			869.7			803.8			748.9			663.7
Adjusted loans receivable	$	9,058.0		$	8,922.7		$	8,882.3		$	8,613.3		$	8,215.3		$	7,759.1		$	7,529.4		$	7,274.0

Adjusted loan yield
GAAP finance charges	$	526.7		$	518.2		$	507.6		$	497.7		$	469.2		$	451.6		$	441.7		$	441.0
Floating yield adjustment		(154.5)			(151.8)			(149.4)			(124.8)			(120.0)			(108.9)			(99.3)			(96.1)
Adjusted finance charges	$	372.2		$	366.4		$	358.2		$	372.9		$	349.2		$	342.7		$	342.4		$	344.9

GAAP average loans receivable, net	$	7,882.4		$	7,831.4		$	7,690.9		$	7,499.2		$	7,101.3		$	6,867.8		$	6,690.8		$	6,596.6
Average floating yield adjustment		1,048.9			1,071.4			1,072.2			903.2			819.7			775.6			701.0			552.8
Adjusted average loans receivable	$	8,931.3		$	8,902.8		$	8,763.1		$	8,402.4		$	7,921.0		$	7,643.4		$	7,391.8		$	7,149.4
Adjusted finance charges as a percentage of adjusted average loans receivable (5)		16.7	%		16.5	%		16.4	%		17.8	%		17.6	%		17.9	%		18.5	%		19.3	%

^{(1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.}
^{(2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.}
^{(4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.}
^{(5)   Annualized.}

(Dollars in millions)	For the Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Sept. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sept. 30, 2023			Jun. 30, 2023
Adjusted interest expense (after-tax)
GAAP interest expense	$	114.7		$	111.3		$	111.2		$	104.5		$	92.5		$	78.8		$	70.5		$	62.8
Senior notes adjustment		—			—			—			—			—			3.5			0.7			0.7
Adjusted interest expense (pre-tax)		114.7			111.3			111.2			104.5			92.5			82.3			71.2			63.5
Adjustment to record tax effect (1)		(26.4)			(25.6)			(25.6)			(24.0)			(21.3)			(18.9)			(16.4)			(14.6)
Adjusted interest expense (after-tax)	$	88.3		$	85.7		$	85.6		$	80.5		$	71.2		$	63.4		$	54.8		$	48.9

Adjusted return on capital (2)
Adjusted net income	$	114.8		$	126.0		$	109.1		$	126.4		$	117.4		$	129.1		$	139.5		$	140.0
Adjusted interest expense (after-tax)		88.3			85.7			85.6			80.5			71.2			63.4			54.8			48.9
Adjusted net income plus adjusted interest expense (after-tax)	$	203.1		$	211.7		$	194.7		$	206.9		$	188.6		$	192.5		$	194.3		$	188.9

Reconciliation of GAAP return on equity to adjusted return on capital (5)
GAAP return on equity (3)		23.9	%		35.5	%		19.8	%		-11.6	%		15.3	%		21.6	%		16.4	%		5.1	%
Non-GAAP adjustments		-14.7	%		-25.7	%		-10.5	%		21.9	%		-5.2	%		-11.0	%		-5.3	%		6.0	%
Adjusted return on capital (2)		9.2	%		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%

Economic profit
Adjusted return on capital		9.2	%		9.8	%		9.3	%		10.3	%		10.1	%		10.6	%		11.1	%		11.1	%
Cost of capital (4) (5)		7.6	%		7.4	%		7.3	%		7.5	%		7.3	%		7.6	%		7.1	%		6.7	%
Adjusted return on capital in excess of cost of capital		1.6	%		2.4	%		2.0	%		2.8	%		2.8	%		3.0	%		4.0	%		4.4	%
Adjusted average capital	$	8,882.6		$	8,633.3		$	8,387.6		$	8,033.3		$	7,507.8		$	7,234.3		$	7,023.9		$	6,829.1
Economic profit	$	35.3		$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1

Reconciliation of GAAP net income (loss) to economic profit
GAAP net income (loss)	$	106.3		$	151.9		$	78.8		$	(47.1)		$	64.3		$	93.6		$	70.8		$	22.2
Non-GAAP adjustments		8.5			(25.9)			30.3			173.5			53.1			35.5			68.7			117.8
Adjusted net income		114.8			126.0			109.1			126.4			117.4			129.1			139.5			140.0
Adjusted interest expense (after-tax)		88.3			85.7			85.6			80.5			71.2			63.4			54.8			48.9
Adjusted net income plus adjusted interest expense (after-tax)		203.1			211.7			194.7			206.9			188.6			192.5			194.3			188.9
Less: cost of capital		167.8			160.4			153.3			150.7			137.2			136.6			125.2			114.8
Economic profit	$	35.3		$	51.3		$	41.4		$	56.2		$	51.4		$	55.9		$	69.1		$	74.1

Economic profit per diluted share (6)	$	2.87		$	4.14		$	3.33		$	4.58		$	4.06		$	4.35		$	5.30		$	5.66
Operating expenses as a percentage of adjusted average capital (5)		6.1	%		5.6	%		6.2	%		6.2	%		6.7	%		6.3	%		6.3	%		6.9	%
Percentage change in adjusted average capital compared to the same period in the prior year		18.3	%		19.3	%		19.4	%		17.6	%		14.6	%		11.5	%		8.8	%		6.2	%

^{(1)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%.}
^{(2)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.}
^{(3) Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.}^{(4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:}

	For the Three Months Ended
	Mar. 31, 2025		Dec. 31, 2024		Sept. 30, 2024		Jun. 30, 2024		Mar. 31, 2024		Dec. 31, 2023		Sept. 30, 2023		Jun. 30, 2023
Average 30-year Treasury rate	4.7	%	4.4	%	4.3	%	4.6	%	4.3	%	4.7	%	4.2	%	3.8	%
Pre-tax average cost of debt (5)	7.2	%	7.2	%	7.3	%	7.2	%	7.0	%	6.3	%	5.9	%	5.3	%

^{(5) Annualized.}
^{(6) Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.}

Floating Yield Adjustment

The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

Senior Notes Adjustment (applied in periods prior to December 31, 2023)

This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustments in connection with (i) the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes or (ii) the issuance by us in February 2025 of our 6.625% senior notes due 2030 and the related retirement of the 2026 senior notes, because the adjustments would not be material.

Cautionary Statement Regarding Forward-Looking Information

We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and Item 1A in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on April 30, 2025, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

Industry, Operational, and Macroeconomic Risks

Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
Reliance on our outsourced business functions could adversely affect our business.
Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
We may be unable to execute our business strategy due to current economic conditions.
Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

Capital and Liquidity Risks

We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
The terms of our debt limit how we conduct our business.
A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

Technology and Cybersecurity Risks

Our dependence on technology could have a material adverse effect on our business.
We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.
The development and use of artificial intelligence presents risks and challenges that may adversely impact our business.

Legal and Regulatory Risks

Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
The regulations to which we are or may become subject could result in a material adverse effect on our business.

Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

Webcast Details

We will host a webcast on April 30, 2025 at 5:00 p.m. Eastern Time to discuss our first quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website.

To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BI27a0a72b8917474a9a1c5c1f1a465ad7, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

Description of Credit Acceptance Corporation

We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(Dollars in millions, except per share data)	For the Three Months Ended March 31,
		2025		2024
Revenue:
Finance charges	$	526.7	$	469.2
Premiums earned		23.5		21.9
Other income		20.9		16.9
Total revenue		571.1		508.0
Costs and expenses:
Salaries and wages		88.6		78.5
General and administrative		22.1		23.7
Sales and marketing		24.8		23.9
Total operating expenses		135.5		126.1

Provision for credit losses on forecast changes		76.3		87.2
Provision for credit losses on new Consumer Loan assignments		85.6		98.8
Total provision for credit losses		161.9		186.0

Interest		114.7		92.5
Provision for claims		16.1		17.0
Loss on extinguishment of debt		1.2		—
Total costs and expenses		429.4		421.6
Income before provision for income taxes		141.7		86.4
Provision for income taxes		35.4		22.1
Net income	$	106.3	$	64.3

Net income per share:
Basic	$	8.79	$	5.15
Diluted	$	8.66	$	5.08

Weighted average shares outstanding:
Basic		12,091,027		12,481,139
Diluted		12,279,446		12,646,529

CREDIT ACCEPTANCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

(Dollars in millions, except per share data)	As of
	March 31, 2025		December 31, 2024
ASSETS:
Cash and cash equivalents	$	528.8	$	343.7
Restricted cash and cash equivalents		591.8		501.3
Restricted securities available for sale		109.0		106.4

Loans receivable		11,476.7		11,289.1
Allowance for credit losses		(3,498.5)		(3,438.8)
Loans receivable, net		7,978.2		7,850.3

Property and equipment, net		13.7		14.7
Income taxes receivable		6.4		4.2
Other assets		30.1		34.0
Total assets	$	9,258.0	$	8,854.6

LIABILITIES AND SHAREHOLDERS’ EQUITY:
Liabilities:
Accounts payable and accrued liabilities	$	377.0	$	315.8
Revolving secured lines of credit		1.4		0.1
Secured financing		5,618.0		5,361.5
Senior notes		1,085.8		991.3
Deferred income taxes, net		320.9		319.1
Income taxes payable		144.0		117.2
Total liabilities		7,547.1		7,105.0

Shareholders’ Equity:
Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued		—		—
Common stock, $.01 par value, 80,000,000 shares authorized, 11,747,851 and 12,048,151 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		0.1		0.1
Paid-in capital		351.7		335.1
Retained earnings		1,358.5		1,414.7
Accumulated other comprehensive income (loss)		0.6		(0.3)
Total shareholders’ equity		1,710.9		1,749.6
Total liabilities and shareholders’ equity	$	9,258.0	$	8,854.6

The MIL Network –

May 1, 2025

MIL-OSI: Medallion Financial Corp. Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025.

March 31, 2025 First Quarter Highlights

Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
The Company declared and paid a quarterly cash dividend of $0.11 per share.
Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.

Executive Commentary – Andrew Murstein, President of Medallion

“Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well. Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.

We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.

Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders.”

Business Segment Highlights

Recreation Lending Segment

Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.

Home Improvement Lending Segment

Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.

Commercial Lending Segment

Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
The average interest rate on the portfolio was 13.14%, compared to 13.00% a year ago.

Taxi Medallion Lending Segment

The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
Total net taxi medallion assets declined to $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of March 31, 2025.

Capital Allocation

Quarterly Dividend

The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.

Stock Repurchase Plan

During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.

Conference Call Information

The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 2025, at 9:00 a.m. Eastern time.

In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

How to Participate

Date: Thursday, May 1, 2025
Time: 9:00 a.m. Eastern time
U.S. dial-in number: (833) 816-1412
International dial-in number: (412) 317-0504
Live webcast: Link to Webcast of 1Q25 Earnings Call

A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

Replay Information

The webcast replay will be available at the Company’s IR website until the next quarter’s results are announced.

The conference call replay will be available following the end of the call through Thursday, May 8, 2025

U.S. dial-in number: (844) 512-2921
International dial-in number: (412) 317-6671
Passcode: 1019 8552

About Medallion Financial Corp.

Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

Forward-Looking Statements
Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2024 Annual Report on Form 10-K.

Company Contact:
Investor Relations
212-328-2176
InvestorRelations@medallion.com



MEDALLION FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except share and per share data)	March 31, 2025			December 31, 2024			March 31, 2024
Assets
Cash, cash equivalents, and federal funds sold	$	157,994		$	169,572		$	169,125
Investment securities		60,424			54,805			53,038
Equity investments		8,997			9,198			16,374
Loans held for sale, at lower of amortized cost or fair value		124,733			128,226			—
Loans		2,361,700			2,362,796			2,228,426
Allowance for credit losses		(100,366	)		(97,368	)		(83,827	)
Net loans receivable		2,261,334			2,265,428			2,144,599
Goodwill and intangible assets, net		169,588			169,949			171,033
Property, equipment, and right-of-use lease asset, net		12,814			13,756			14,024
Accrued interest receivable		14,437			15,314			12,673
Loan collateral in process of foreclosure		9,183			9,932			10,198
Other assets		28,234			32,426			27,698
Total assets	$	2,847,738		$	2,868,606		$	2,602,388
Liabilities
Deposits	$	2,022,828		$	2,090,071		$	1,879,061
Long-term debt		199,665			232,159			225,558
Short-term borrowings		111,750			49,000			32,500
Deferred tax liabilities, net		21,538			20,995			24,846
Operating lease liabilities		4,528			5,128			6,710
Accrued interest payable		6,610			8,231			6,077
Accounts payable and accrued expenses		31,807			24,064			26,186
Total liabilities		2,398,726			2,429,648			2,200,938
Total stockholders’ equity		380,224			370,170			349,036
Non-controlling interest in consolidated subsidiaries		68,788			68,788			68,788
Total equity		449,012			438,958			417,824
Total liabilities and equity	$	2,847,738		$	2,868,606		$	2,618,762
Number of shares outstanding		23,235,030			23,135,624			23,377,564
Book value per share	$	16.36		$	16.00		$	14.93


MEDALLION FINANCIAL CORP.‌ CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)‌

	Three Months Ended March 31,
(Dollars in thousands, except share and per share data)	2025		2024
Total interest income	$	75,425	$	67,070
Total interest expense		24,013		19,153
Net interest income		51,412		47,917
Provision for credit losses		22,014		17,201
Net interest income after provision for credit losses		29,398		30,716
Other income
Gain on equity investments, net		9,430		4,167
Gain on taxi medallion assets, net		843		629
Strategic partnership fees		685		326
Other income		641		281
Total other income, net		11,599		5,403
Other expenses
Salaries and employee benefits		9,993		9,457
Loan servicing fees		2,817		2,470
Collection costs		1,537		1,467
Regulatory fees		821		977
Professional fee costs, net		1,750		771
Rent expense		675		657
Amortization of intangible assets		361		361
Other expenses		2,804		2,065
Total other expenses		20,758		18,225
Income before income taxes		20,239		17,894
Income tax provision		6,713		6,358
Net income after taxes		13,526		11,536
Less: income attributable to the non-controlling interest		1,512		1,512
Total net income attributable to Medallion Financial Corp.	$	12,014	$	10,024
Basic net income per share	$	0.53	$	0.44
Diluted net income per share	$	0.50	$	0.42
Weighted average common shares outstanding
Basic		22,570,797		22,641,385
Diluted		23,897,167		23,765,045
Dividends declared per common share	$	0.12	$	0.10

The MIL Network –

May 1, 2025

MIL-OSI: Enovix Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

FREMONT, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Enovix Corporation (“Enovix”) (Nasdaq: ENVX), a global high-performance battery company, announced today financial results for the first quarter 2025, which included the summary below from its President and CEO, Dr. Raj Talluri.

Fellow Shareholders,

In the first quarter of 2025, Enovix advanced across critical milestones with our lead smartphone customer, keeping us on track for a customer product launch later this year. We also strengthened our leadership team, expanded our manufacturing footprint through a strategic acquisition in South Korea, and accelerated progress towards mass production readiness at Fab2 in Malaysia.

Recent Highlights

Revenue Growth: Preliminary and unaudited first quarter revenue was $5.1 million, exceeding the midpoint of our guidance range. We also secured bookings on defense orders which support growth into the second half of 2025.
Smartphone Batteries: Began development of cells with the exact dimensions of the planned commercial product this year; first qualification deliveries are scheduled in Q2.
XR Batteries: Delivered a significantly larger quantity of XR battery samples to our lead customer for extended testing and system-level integration. These packs, assembled in our South Korea facility using custom cells from Fab2, will support the customer’s ongoing evaluation ahead of product qualification.
Manufacturing Readiness: Fab2 in Malaysia achieved ISO 9001:2015 certification with zero major or minor findings. Additionally, we concluded the first customer audits of both Fab2 in Malaysia and our South Korea facility.
Leadership Team: Appointed Ryan Benton as chief financial officer and promoted Samira Naraghi to chief business officer.
South Korea Acquisition: Acquired SolarEdge assets, including coating equipment that supports capacity expansion at Fab2 and adds production capacity for South Korean defense programs, reinforcing our presence in a key strategic market.
Capitalization: Ended Q1 with $248 million in cash, cash equivalents, and marketable securities (preliminary and unaudited), driven by disciplined expense management ahead of mass production in Malaysia, and positive contribution from defense sales.

The north star for Enovix is commercialization of our breakthrough battery architecture, beginning with the launch of our first smartphone battery – an important step towards scaling the business to profitability. In parallel, like many global companies, we are actively monitoring changes in the global trade environment for any potential impacts to our operations and customers. At this time, we do not anticipate a material change in risk to our near-term outlook, as most of our planned sales are concentrated within Asia.

We also see opportunities in the evolving global trade landscape. In April 2025, we acquired a second facility in South Korea for $10 million. The asset purchase from SolarEdge includes equipment for additional coating capacity at Fab2, as well as expanded production for Korean defense programs, reinforcing our presence in a key strategic market. The facility that we acquired from SolarEdge also offers significant room for expansion, which could provide strategic value as global supply chains continue to rapidly evolve.

Our South Korea operations also help us with increased visibility on cutting-edge battery technology in conventional architectures. In 2024, we were among the battery manufacturers that deployed a technique called silicon doping where small amounts of silicon are added to graphite anodes which increases battery capacity. Based on our first-hand experience and feedback from our smartphone customers, we believe that our competition will be capped from achieving meaningful ED enhancements using this technique, within their current architecture, due to swelling and other trade-offs. Our internal benchmarking analysis of premium smartphone batteries launched in 2024 indicates that Enovix’s unique architecture with 100% active silicon will hold a material lead in ED, and we expect it will grow considerably with future generations.

We are focused on the smartphone industry not only because we believe it offers the largest and fastest profitability outlook, but also because the technical requirements are so demanding that addressing this market opens opportunities in others. Smart eyewear emerged as an example in Q1 when we delivered our first customer samples. This quarter, we are accelerating our expansion in the handheld computer and scanner segment, where we’ve been engaged with a market leader in retail and logistics for several quarters, and our samples have passed initial testing. Recent tariff developments have further strengthened our position in this segment, prompting increased urgency and deeper collaboration.

Business Update

Manufacturing. Key accomplishments in the first quarter included securing ISO 9001:2015 certification, driving targeted yield improvements, and continuing to build cumulative production volume. We see a clear path to execute against our manufacturing roadmap. We localized the supply chain which led to a reduction of our custom cell tooling and switchover time by over 40%. This enhanced flexibility improves our per zone capacity as we scale toward additional lines. During this ramp process, we’ve maintained open engagement with customers and partners who visit the facility, as well as one OEM concluding their audit.

Commercialization. The business team met our top objectives for the quarter – passing another milestone for our lead smartphone customer agreement, finalizing the chemistry, obtaining the precise smartphone cell dimensions, and commencing development of the final samples to be used in the qualification process this summer.

We continue to be actively engaged with other smartphone OEMs to ensure a rapid ramp once we are established in the market. Progress continues with our two marquee smart glasses customers, one of which received their unique battery samples this quarter, aligned with their product development schedules.

In the electric vehicle space, we achieved key milestones that significantly improved the likelihood of expanding our commercial agreement with one of our two OEM partners later this year. Our partners remain highly committed to electrification. We also noted a major charge time improvement announced by a leading battery supplier in Asia, which we view as a strong validation of our cooling architecture – designed for scalable production and industry-leading performance, particularly in charge time and energy density.

Products. Our internal benchmarking confirms that we are well-positioned to maintain technology leadership for the foreseeable future. The initial products slated for launch are built on our EX-1M technology node, with customer-specific customizations. While premium-category smartphones batteries improved energy density through silicon doping in 2024, we advanced our own electrochemistry with EX-2M – a foundational step that we believe will solidify our leadership position through 2026.

To further extend this lead, we finalized the design specification of EX-3M, which incorporates a significant architectural enhancement projected to deliver more than a 30% capacity advantage compared to premium solutions available today. We anticipate a similar performance leap with the development of EX-4M.

Q1 2025 Financial Highlights (Preliminary and Unaudited)

Revenue was $5.1 million in the first quarter of 2025, near the high end of our guidance range and roughly flat year over year. As expected, revenue declined from $9.7 million in the fourth quarter of 2024 due to the seasonal buying cycle of South Korean defense customers who typically procure a majority of orders in the second half of the calendar year – a trend we expect to repeat in 2025. Our GAAP cost of revenue was $4.8 million, resulting in our second consecutive quarter of positive gross margin.

GAAP operating expenses were $42.8 million in the first quarter of 2025, compared to $35.6 million in the fourth quarter of 2024 and $68.3 million in the first quarter of 2024, reflecting the impact of cost reduction initiatives implemented over the past year. Non-GAAP operating expenses were $29.7 million, up from $24.3 million in the previous quarter, reflecting preparation for mass production in Malaysia later this year, higher R&D depreciation from recent equipment additions, and increased SG&A expenses. Non-GAAP operating expenses for the first quarter of 2025, down significantly from $54.4 million in the first quarter of 2024, primarily reflecting the benefits of cost reduction initiatives implemented over the past year.

GAAP net loss attributable to Enovix was $23.5 million in the first quarter of 2025, compared to $37.5 million in the previous quarter. As a reminder, GAAP net loss is impacted quarterly by changes in the fair value of common stock warrants, which resulted in a $15.8 million gain in the first quarter of 2025 compared to a $5.1 million expense in the fourth quarter of 2024.

Adjusted EBITDA loss was $22.2 million in the first quarter of 2025, compared to a loss of $14.3 million in the previous quarter. The sequential change was driven primarily by increased operating expenses, including the impact of additional hiring at sites in Asia.

GAAP net loss per share attributable to Enovix was $0.12 and non-GAAP net loss per share attributable to Enovix was $0.15, compared to $0.20 on a GAAP basis and $0.11 on a non-GAAP basis in the fourth quarter of 2024.

We exited the first quarter of 2025 with $248.2 million in cash, cash equivalents, and marketable securities, down from $272.9 million in the prior quarter primarily due to $16.9 million used in operating activities and $6.3 million in capital expenditures.

A full reconciliation of our GAAP to non-GAAP results is available later in this report.

Q2 2025 Financial Outlook

Looking ahead, based upon current business trends and conditions, we expect for the second quarter of 2025:

Revenue in the range of $4.5 million to $6.5 million (Q1 2025: $5.1 million)
Non-GAAP operating loss¹ in the range of $31 million to $37 million (Q1 2025: $29.4 million)
Adjusted EBITDA loss¹ in the range of $23 million to $29 million (Q1 2025: $22.2 million)
Non-GAAP net loss¹per share attributable to Enovix in the range of $0.15 to $0.21 (Q1 2025: $0.15)

¹ We are not presenting a quantitative reconciliation to the GAAP equivalents for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Further information is provided below under the heading “Non-GAAP Financial Measures.”

Summary

Enovix delivered strong operational progress during the first quarter of 2025, progressing Fab2 to an advanced stage of readiness for mass production. With product qualification activities underway with marquee customers, we are positioned to drive volume production, achieve key commercialization milestones, and build the foundation for expanded production scale in 2026. Our focus remains on disciplined execution as we transition to high-volume manufacturing and capitalize on the significant growth opportunities ahead.

Conference Call Information

Enovix will hold a video conference call at 2:00 PM PT / 5:00 PM ET today, April 30, 2025, to discuss the company’s business updates and financial results. To join the call, participants must use the following link to register: https://enovix-q1-2025.open-exchange.net/registration This link will also be available via the Investor Relations section of the Enovix website at https://ir.enovix.com. An archived version of the call will be available on the Enovix website for one year at https://ir.enovix.com.

About Enovix

Enovix is on a mission to deliver high-performance batteries that unlock the full potential of technology products. Everything from IoT, mobile, and computing devices, to vehicles and headsets, needs a better battery. The company has developed an innovative, materials-agnostic approach to building a higher performing battery without compromising safety, and it partners with OEMs worldwide to usher in a new era of user experiences.

Enovix is headquartered in Silicon Valley with facilities in India, South Korea and Malaysia. For more information visit https://enovix.com and follow us on LinkedIn.

Non-GAAP Financial Measures

This shareholder letter includes the use of non-GAAP financial measures, which are intended to provide supplemental information regarding our performance. These non-GAAP measures include non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling, general and administrative expense, non-GAAP operating expenses, non-GAAP operating income (loss), EBITDA, adjusted EBITDA, non-GAAP net income (loss) attributable to Enovix shareholders, non-GAAP earnings (loss) per share, free cash flow, and other non-GAAP measures.

We use these non-GAAP measures to supplement our financial reporting and to evaluate ongoing operations and results, facilitate internal planning and forecasting, and assess performance against prior periods, industry peers, and the broader market. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles (GAAP) and should not be considered as an alternative to GAAP results. Industry peers and other companies may calculate similar non-GAAP measures differently. Non-GAAP financial measures have limitations, including but not limited to, that they exclude certain expenses that are required under GAAP, which adjustments reflect the exercise of judgment by management. We believe that these non-GAAP measures, when considered together with the GAAP results, provide investors with an additional understanding of our operating performance. Reconciliations of each non-GAAP financial measure to the most directly comparable GAAP financial measure can be found in the tables at the end of this shareholder letter.

While Enovix provides second quarter 2025 guidance for non-GAAP operating loss, adjusted EBITDA loss and non-GAAP net loss per share attributable to Enovix, we are unable to provide without unreasonable effort a GAAP to non-GAAP reconciliation of these projected non-GAAP measures, and we have not provided a quantitative reconciliation in reliance on the unreasonable efforts exception under Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliation to the corresponding GAAP financial measure cannot be provided without unreasonable effort because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjustments that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to change in fair value of common stock, stock-based compensation and related tax effects, acquisition-related costs, and restructuring costs. As a result, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.

Forward-Looking Statements

This letter to shareholders contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events or our future financial or operating performance and are identified by words such as anticipate, believe, could, estimate, expect, intend, may, might, plan, possible, potential, predict, project, should, will, would and similar expressions.

Forward-looking statements in this letter to shareholders include, but are not limited to, statements regarding: (a) our future operating results, financial position, growth opportunities and guidance, and our anticipation that changes in the global trade environment do not pose a material risk to our outlook; (b) our commercialization plans, strategy and product development roadmap, including the readiness, performance, timing, and customer qualification of EX-1M, EX-2M, EX-3M, EX-4M, and other battery nodes; (c) our manufacturing strategy, including scale-up and operational readiness, including at Fab2 in Malaysia, our assets and facility expansion in South Korea and the anticipated benefits of the SolarEdge asset purchase, and our ability to enhance per-zone capacity and reduce switching time between configurations; (d) our internal benchmarking of energy density and competitive positioning, including our ability to maintain and expand a performance lead over other silicon-doped or conventional battery architectures, and our beliefs about our competitors’ inability to achieve further energy density enhancements using these techniques due to swelling; (e) customer interest, qualification activities, and expected adoption of our products across smartphone, smart eyewear, AI-powered devices, XR, handheld computing, defense, drone, IoT, and EV segments; (f) our ability to enter into or expand commercial agreements, including strategic partnerships, design wins, production contracts, and potential expansion of agreements with automotive OEMs; (g) the strategic value and potential for expansion of our acquired South Korea facility, and its role in supporting defense programs and Fab2 capacity; (h) the impact of seasonal purchasing patterns, including defense procurement cycles; (i) the impacts of tariffs, trade policies, and regional market developments on our business strategy and demand outlook; (j) anticipated trends, risks, and opportunities across our addressable markets and the broader economic environment, including interest rates, inflation, currency fluctuations, and global supply chain evolution; (k) the timing and ability to raise additional capital through equity, debt, or other instruments to support operations, growth initiatives, or capital expenditures; (l) the impact of AI feature adoption on demand for energy-dense batteries; (m) the timing and expected success of achieving technical milestones, including audits by OEMs, production ramp-up readiness, and securing purchase orders; and (n) our exposure to and management of global trade risks.

It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. For additional information on these risks and uncertainties and other potential factors that could cause actual results to differ from the results predicted, please refer to our filings with the Securities and Exchange Commission (“SEC”), including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K and quarterly reports on Form 10-Q and other documents that we have filed, or will file, with the SEC. These documents are available in the SEC Filings section of the Investor Relations page at https://ir.enovix.com and at www.sec.gov.

The financial results presented herein are preliminary and based on information known by management as of the date of this press release; final financial results will be included in the Company’s quarterly report on Form 10-Q for the fiscal quarter ended March 30, 2025. Any forward-looking statements in this letter to shareholders speak only as of the date on which they are made. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Contact:
Enovix Corporation
Robert Lahey
Email: ir@enovix.com

Media Contact:
Bateman Agency for Enovix
Kaelyn Attridge
Email: enovix@bateman.agency

Enovix Corporation Condensed Consolidated Balance Sheets (Unaudited) (In Thousands, Except Share and per Share Amounts)

	March 30, 2025			December 29, 2024
Assets
Current assets:
Cash and cash equivalents	$	189,874		$	272,869
Short-term investments		58,281			—
Accounts receivable, net		2,897			4,566
Notes receivable, net		1,255			4
Inventory		10,483			7,664
Prepaid expenses and other current assets		7,382			9,903
Total current assets		270,172			295,006
Property and equipment, net		165,775			167,947
Customer relationship intangibles and other intangibles, net		35,205			36,394
Operating lease, right-of-use assets		12,921			13,479
Goodwill		12,217			12,217
Other assets, non-current		2,755			2,126
Total assets	$	499,045		$	527,169
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	20,610		$	9,492
Accrued expenses		8,540			19,843
Accrued compensation		6,481			8,228
Short-term debt		10,367			9,452
Deferred revenue		6,630			3,650
Other liabilities		5,161			3,036
Total current liabilities		57,789			53,701
Long-term debt, net		169,185			169,820
Warrant liability		12,584			28,380
Operating lease liabilities, non-current		12,638			13,293
Deferred revenue, non-current		300			3,774
Deferred tax liability		8,751			8,784
Other liabilities, non-current		14			14
Total liabilities		261,261			277,766
Commitments and Contingencies
Stockholders’ equity:
Common stock, $0.0001 par value; authorized shares of 1,000,000,000; issued and outstanding shares of 191,715,117 and 190,559,335 as of March 30, 2025 and December 29, 2024, respectively		19			19
Additional paid-in-capital		1,079,904			1,067,951
Accumulated other comprehensive loss		(184	)		(143	)
Accumulated deficit		(844,596	)		(821,086	)
Total Enovix stockholders’ equity		235,143			246,741
Non-controlling interest		2,641			2,662
Total equity		237,784			249,403
Total liabilities and equity	$	499,045		$	527,169

Enovix Corporation Condensed Consolidated Statements of Operations (Unaudited) (In Thousands, Except Share and per Share Amounts)

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Revenue	$	5,098		$	5,272
Cost of revenue		4,837			7,072
Gross profit		261			(1,800	)
Operating expenses:
Research and development		25,929			48,788
Selling, general and administrative		16,892			19,548
Total operating expenses		42,821			68,336
Loss from operations		(42,560	)		(70,136	)
Other income (expense):
Change in fair value of common stock warrants		15,796			21,120
Interest income		2,434			3,560
Interest expense		(1,716	)		(1,659	)
Other income, net		2,353			466
Total other income, net		18,867			23,487
Loss before income tax benefit		(23,693	)		(46,649	)
Income tax benefit		(162	)		(152	)
Net loss		(23,531	)		(46,497	)
Net loss attributable to non-controlling interests		(21	)		(129	)
Net loss attributable to Enovix	$	(23,510	)	$	(46,368	)

Net loss per share attributable to Enovix shareholders, basic and diluted	$	(0.12	)	$	(0.28	)
Weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

Enovix Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In Thousands)

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Cash flows used in operating activities:
Net loss	$	(23,531	)	$	(46,497	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, accretion and amortization		8,448			24,974
Stock-based compensation		12,014			12,760
Changes in fair value of common stock warrants		(15,796	)		(21,120	)
Others		479			173
Changes in operating assets and liabilities:
Accounts and notes receivables		430			505
Inventory		(2,826	)		2,202
Prepaid expenses and other assets		2,440			(1,809	)
Accounts payable		4,420			(7,281	)
Accrued expenses and compensation		(4,167	)		2,845
Deferred revenue		(457	)		(1,402	)
Deferred tax liability		(33	)		(222	)
Other liabilities		1,672			(172	)
Net cash used in operating activities		(16,907	)		(35,044	)
Cash flows from investing activities:
Purchase of property and equipment		(6,272	)		(15,088	)
Payment of acquisition costs		(16	)		—
Purchases of investments		(58,083	)		(17,066	)
Maturities of investments		—			51,260
Net cash provided by (used in) investing activities		(64,371	)		19,106
Cash flows from financing activities:
Proceeds from issuance of Convertible Senior Notes and loans		—			1,800
Payments of transaction costs related to common stock issuance		(512	)		—
Payroll tax payments for shares withheld upon vesting of RSUs		(1,761	)		(2,222	)
Proceeds from the exercise of stock options and issuance of common stock under ATM, net of issuance costs		782			5,852
Net cash provided by (used in) financing activities		(1,491	)		5,430
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(228	)		(541	)
Change in cash, cash equivalents, and restricted cash		(82,997	)		(11,049	)
Cash and cash equivalents and restricted cash, beginning of period		274,691			235,123
Cash and cash equivalents, and restricted cash, end of period	$	191,694		$	224,074

EBITDA and Adjusted EBITDA Reconciliation

Below we provide a reconciliation of GAAP net loss attributable to Enovix to EBITDA and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

We define EBITDA as net loss attributable to Enovix adjusted for interest expense, interest income, income tax benefit, and depreciation and amortization expense. Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation expense, change in fair value of common stock warrants, inventory step-up, import duty forgiveness, impairment of equipment and other special items not indicative of our core operating performance, as determined by management.

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Net loss attributable to Enovix	$	(23,510	)	$	(46,368	)
Interest income, net		(718	)		(1,901	)
Income tax benefit		(162	)		(152	)
Depreciation and amortization		8,448			24,974
EBITDA		(15,942	)		(23,447	)
Stock-based compensation expense		12,014			12,760
Change in fair value of common stock warrants		(15,796	)		(21,120	)
Inventory step-up		—			1,907
Import duty forgiveness		(2,431	)		—
Adjusted EBITDA	$	(22,155	)	$	(29,900	)

Reconciliation of Operating Loss to Non-GAAP Operating Loss and Adjusted EBITDA

Additionally, below is a reconciliation of GAAP operating loss to non-GAAP operating loss and adjusted EBITDA for the periods presented (preliminary and unaudited) (in thousands).

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024

GAAP Operating Loss	$	(42,560	)	$	(70,136	)
Stock-based compensation expense		12,014			12,760
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Non-GAAP Operating Loss		(29,356	)		(54,297	)
Depreciation and amortization (excluding amortization of intangible assets)		7,258			23,802
Other income (loss), net (excluding import duty forgiveness)		(78	)		466
Net loss attributable to non-controlling interest		21			129
Adjusted EBITDA	$	(22,155	)	$	(29,900	)

Free Cash Flow Reconciliation

We define Free Cash Flow as net cash used in operating activities less capital expenditures, net of proceeds from disposals of property and equipment, each as reported in our consolidated statements of cash flows. Free Cash Flow is a non-GAAP financial measure and should not be considered an alternative to cash flows from operating activities as determined in accordance with GAAP.

We believe Free Cash Flow is a useful measure for investors because it provides insight into the cash generated or used by our operations after funding capital expenditures, and it helps assess our ability to pursue strategic growth initiatives. We use Free Cash Flow internally to evaluate performance, support decision-making, and measure our progress toward profitability and cash flow breakeven.

This non-GAAP measure may differ from similarly titled measures used by other companies.

Below is a reconciliation of net cash used in operating activities to the Free Cash Flow financial measure for the periods presented (preliminary and unaudited) (in thousands):

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Net cash used in operating activities	$	(16,907	)	$	(35,044	)
Capital expenditures		(6,272	)		(15,088	)
Free Cash Flow	$	(23,179	)	$	(50,132	)

Other Non-GAAP Financial Measures Reconciliation
(In Thousands, Except Share and per Share Amounts)

These non-GAAP measures may differ from similarly titled measures used by other companies.

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
Revenue	$	5,098		$	5,272

GAAP cost of revenue	$	4,837		$	7,072
Stock-based compensation expense		(121	)		—
Inventory step-up		—			(1,907	)
Non-GAAP cost of revenue	$	4,716		$	5,165

GAAP gross profit	$	261		$	(1,800	)
Stock-based compensation expense		121			—
Inventory step-up		—			1,907
Non-GAAP gross profit	$	382		$	107

GAAP research and development (R&D) expense	$	25,929		$	48,788
Stock-based compensation expense		(6,355	)		(6,554	)
Amortization of intangible assets		(416	)		(416	)
Non-GAAP R&D expense	$	19,158		$	41,818

GAAP selling, general and administrative (SG&A) expense	$	16,892		$	19,548
Stock-based compensation expense		(5,538	)		(6,206	)
Amortization of intangible assets		(774	)		(756	)
Non-GAAP SG&A expense	$	10,580		$	12,586

GAAP operating expenses	$	42,821		$	68,336
Stock-based compensation expense included in R&D expense		(6,355	)		(6,554	)
Stock-based compensation expense included in SG&A expense		(5,538	)		(6,206	)
Amortization of intangible assets		(1,190	)		(1,172	)
Non-GAAP operating expenses	$	29,738		$	54,404

	Fiscal Quarters Ended
	March 30, 2025			March 31, 2024
GAAP loss from operations	$	(42,560	)	$	(70,136	)
Stock-based compensation expense		12,014			12,760
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Non-GAAP loss from operations	$	(29,356	)	$	(54,297	)

GAAP net loss attributable to Enovix	$	(23,510	)	$	(46,368	)
Stock-based compensation expense		12,014			12,760
Change in fair value of common stock warrants		(15,796	)		(21,120	)
Amortization of intangible assets		1,190			1,172
Inventory step-up		—			1,907
Import duty forgiveness		(2,431	)		—
Non-GAAP net loss attributable to Enovix shareholders	$	(28,533	)	$	(51,649	)

GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.12	)	$	(0.28	)
GAAP weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

Non-GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.15	)	$	(0.31	)
GAAP weighted average number of common shares outstanding, basic and diluted		191,304,975			168,144,918

	Fiscal Quarter Ended
	December 29, 2024
GAAP net loss attributable to Enovix	$	(37,465	)
Stock-based compensation expense		10,207
Change in fair value of common stock warrants		5,115
Amortization of intangible assets		1,189
Non-GAAP net loss attributable to Enovix shareholders	$	(20,954	)

GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.20	)
GAAP weighted average number of common shares outstanding, basic and diluted		184,971,942

Non-GAAP net loss per share attributable to Enovix, basic and diluted	$	(0.11	)
GAAP weighted average number of common shares outstanding, basic and diluted		184,971,942

The MIL Network –

May 1, 2025

MIL-OSI: Robinhood Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

First Quarter Results

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

__________________________________

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

Highlights

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

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

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

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

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

Additional Q1 2025 Operating Data

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

Conference Call and Livestream Information

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

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

Financial Outlook

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

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

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

About Robinhood

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

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

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

Contacts

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

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


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

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

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

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

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

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

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

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

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

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

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

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

Reconciliation of GAAP to Non-GAAP Results
(Unaudited)

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

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

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

________________

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

Cautionary Note Regarding Forward-Looking Statements

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

Non-GAAP Financial Measures

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

Adjusted EBITDA

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

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

Adjusted EBITDA Margin

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

Adjusted Operating Expenses

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

Adjusted Operating Expenses and SBC

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

Key Performance Metrics

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

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

Assets Under Custody

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

Funded Customers

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

Total Platform Assets

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

Net Deposits

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

Average Revenue Per User (“ARPU”)

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

Robinhood Gold Subscribers

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

Additional Operating Metrics

Robinhood Retirement AUC

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

Cash Sweep

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

Margin Book

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

Notional Trading Volume

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

Options Contracts Traded

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

Glossary Terms

Investment Accounts

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

Robinhood Gold Adoption Rate

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

Growth Rate and Annualized Growth Rate with respect to Net Deposits

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

The MIL Network –

May 1, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

First Quarter 2025 Highlights and Key Developments

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

About Pathfinder Bancorp, Inc.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

May 1, 2025

MIL-OSI: 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 Security: Kingsville business owner pleads guilty to tax fraud

Source: Office of United States Attorneys

CORPUS CHRISTI, Texas – A local resident has admitted to failing to pay employment taxes, announced U.S. Attorney Nicholas J. Ganjei.

Timothy Gaines Pollard owned and operated Tim Pollard Construction, a residential remodeling and fence installation business in Bishop and Kingsville.

He admitted that from 2019 through 2021, he was responsible for collecting and withholding employment taxes from his employees’ paychecks. These included federal income, Social Security and Medicare taxes.

Pollard admitted he withheld those monies from his employees but failed to pay them to the United States, as the law requires. Instead, Pollard used the funds to cover personal expenses.

In total, Pollard’s scheme resulted in a total tax loss of over $400,000.

U.S. District Judge David S. Morales will impose sentencing July 30. At that time, Pollard faces up to five years in prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.

IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Tyler Foster and John Marck are prosecuting the case.

MIL Security OSI –

May 1, 2025

MIL-OSI Security: Three Charged with Trafficking Narcotics in the Naugatuck Valley

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, Stephen P. Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal grand jury in Hartford returned a 10-count indictment today charging KEYSHON ZIMMERMAN, also known as “AJ,” “Ace,” and “Slick,” 39, of Stratford; ROBERT SMITH, also known as “Mookie,” 43, of Ansonia; and MAHOGANY PETTWAY-STOKES, 45, of Ansonia with offenses related to the trafficking of fentanyl and cocaine in the Naugatuck Valley.

As alleged in court documents and statements made in court, an investigation by the FBI New Haven Transnational Organized Crime Task Force and the DEA New Haven District Office (NHDO) Task Force determined that Zimmerman and Smith were distributing fentanyl, cocaine, and prescription opioids in Connecticut’s Lower Naugatuck Valley. Zimmerman and Smith shared a phone used to coordinate drug transactions. Zimmerman typically used the phone in the morning and early afternoon and Smith used the phone in the late afternoon into the evening. Between July 2024 and April 2025, investigators made multiple controlled purchase of narcotics from Zimmerman, Smith, and Pettway-Stokes.

Zimmerman, Smith, and Pettway-Stokes were arrested on April 23, 2025. It is alleged that as investigators entered Zimmerman’s residence on Main Street in Stratford, they located Zimmerman in a bathroom attempting to flush fentanyl in a toilet. In association with the arrests, a search of Zimmerman’s residence revealed a large quantity of unpackaged fentanyl and cocaine, drug processing and packaging materials, and approximately $21,000 in cash. Searches of two cars parked in Stratford and Ansonia used by Zimmerman revealed additional quantities of fentanyl and cocaine, narcotic pills, a .40 caliber semi-automatic pistol with an obliterated serial number, and a 9mm caliber semi-automatic pistol with an extended magazine. A search of a residence shared by Smith and Pettway-Stokes on Wakelee Avenue in Ansonia revealed two handguns, and a search of an apartment on Olivia Street in Derby revealed narcotics processing and packaging materials, including a kilogram press.

The indictment charges Zimmerman, Smith, and Pettway-Stokes with one count of conspiracy to distribute, and to possess with intent to distribute, fentanyl and cocaine. As to this charge, based on the type and quantity of drug attributed to each defendant, Zimmerman faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and Smith and Pettway-Stokes each faces a maximum term of imprisonment of 20 years.

The indictment also charges Zimmerman, Smith, and Pettway-Stokes with multiple substantive counts related to the possession and distribution of controlled substances. Zimmerman is also charged with two counts of possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive term of imprisonment of at least five years on each count.

Zimmerman and Smith are currently detained and Pettway-Stokes is released on a $75,000 bond.

Acting U.S. Attorney Silverman stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the FBI New Haven Transnational Organized Crime Task Force and the DEA New Haven District Office (NHDO) Task Force. The FBI Task Force includes participants from the Connecticut State Police and the North Haven, New Haven, East Haven, Milford, and Brookfield Police Departments, and the DEA Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments. The case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhood (PSN).

MIL Security OSI –

May 1, 2025

MIL-OSI Africa: Budget to be re-tabled on 21 May 2025

Source: South Africa News Agency

Finance Minister Enoch Godongwana is expected to re-table the 2025 Budget Review on 21 May 2025.

This after National Treasury announced that it has withdrawn the proposed 0.5% Value-Added Tax (VAT) increase which was to be implemented on 1 May 2025.

Godongwana announced the date of the new budget review during a media briefing in Pretoria, on Wednesday.

The Minister described the ensuing debate following the announcement of the budget tabled on 12 March 2025 as “rigorous, as is right in a healthy democracy”.

“Today, there’s a clarity [that] VAT will remain at 15%. This decision was shaped not only by political debates but importantly, by the voices of South Africans.

“When people speak, we must also listen, and I’m encouraged by the passion shown. It reflects the seriousness with which we approach the hard choices needed to place our finances on a sustainable path, protect the vulnerable and accelerate growth,” he said.
Godongwana said he was “pleased” that the budget will be balanced “without raising VAT while protecting vital services like education, health and social grants.”

Three-pronged approach

The Minister said going forward, National Treasury’s focus will be threefold starting with balancing the budget by managing costs better.

“Raising other taxes besides VAT was not an option [as] it would harm growth, savings and jobs. Borrowing more would worsen our debt crisis. We already spend more than R1 billion servicing debt. We must do more with less, review government spending critically, root out waste, every cent of public money must be spent wisely.

“The second issue, we must strengthen revenue collection. In the [March] budget, we made provisions for SARS [the South African Revenue Service] to collect more particularly for those who still owe SARS and to deal with illicit trading,” he said.
The third area that Treasury will home in on is laying “strong foundations for economic growth”.

“Job creation is the number one priority. We must remove barriers to investment, unlock private sector capital and expand opportunities for all South Africans. Through Operation Vulindlela, we have already seen what focused collaboration can achieve and we will now accelerate these reforms.

“The challenges ahead are serious but not insurmountable. If we work together, stay focused and persevere, we can chart a better course for our economy and our people. That is my commitment to South Africans and that is what we aim to achieve when we table the new Budget on the 21st of May 2025,” he said. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI Africa: Work underway to develop new fiscal framework

Source: South Africa News Agency

Wednesday, April 30, 2025

National Treasury has assured South Africans that a revised budget will “adhere to all established technical processes and consultations, as set out in the Money Bills and Related Matters Act”.

This after Finance Minister Enoch Godongwana announced that the 2025 Budget Review will be re-tabled in Parliament on 21 May.

“This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the Government of National Unity as well as Cabinet approval before presentation to Parliament.

“While the postponement of the budget’s passage is not ideal, the circumstances leading to this decision have highlighted the importance of meaningful engagement on fiscal matters.

“This situation has provided a valuable opportunity for all stakeholders – citizens, Members of Parliament, labour organisations, and civil society – to thoroughly engage with the complex challenge of achieving fiscal sustainability, while promoting economic growth and protecting essential public services within very limited resources,” National Treasury said on Wednesday.

In the interim before the budget is passed in Parliament, government services “continue to be funded under section 29 of the Public Finance Management Act”.

“This allows spending of up to 45% of last year’s budget during the first four months, and up to 10% for each month after that.

“While we wait for the 2025 Division of Revenue Act to be passed, funding for provinces and municipalities will continue under the 2024 Act, allowing transfers of up to 45% of their allocated funds,” Treasury said.

New path

Work is already underway to develop a new fiscal framework that Treasury emphasises will “maintain the trajectory toward debt stabilisation, a crucial element in strengthening our public finances”.

The process for a new fiscal framework includes:

Revising economic assumptions using the latest available data.
Generating updated fiscal projects.
Recalculating revenue projections and tax implications.
Determining appropriate borrowing strategies.
Consolidating these elements into a coherent and sustainable fiscal framework.

“The Ministry remains committed to transparent communication throughout this process and will provide further updates as they become available.

“We owe it to the hardworking citizens of South Africans to be open and transparent about how tax money is spent.

“The budget that will be tabled on 21 May will aim to maintain these principles,” Treasury said. – SAnews.gov.za

MIL OSI Africa –

May 1, 2025

MIL-OSI USA: Sens. Wicker, Bennet Introduce the LOCAL Infrastructure Act

US Senate News:

Source: United States Senator for Mississippi Roger Wicker
WASHINGTON – U.S. Senators Roger Wicker, R-Miss., and Michael Bennet, D-Colo., introduced the Lifting Our Communities through Advance Liquidity for Infrastructure (LOCAL Infrastructure) Act of 2025. The legislation would amend the federal tax code to restore state and local governments’ ability to use advance refunding to manage bond debt and reduce borrowing costs for public infrastructure projects.
“The LOCAL Infrastructure Act would amend the federal tax code to give more financial flexibility to state and local governments. Restoring advance refunding would help community leaders manage their existing debts and allow for more investment to improve their existing infrastructure. Local leaders know what their states need best, and it’s important to give them the resources to ensure their community’s success,” said Senator Wicker.
“As state and local governments work to improve their communities and plan for the future, our bipartisan bill will support their efforts to revitalize infrastructure, create jobs, and improve quality of life for all Coloradans,” said Senator Bennet. “From improving our roads and bridges to modernizing our hospitals and schools, this legislation will help create stronger and more resilient communities.”
“SIFMA would like to thank Senator Roger Wicker (R-MS) and Senator Michael Bennet (D-CO) for their continued leadership on municipal bonds. Advance refunding is an important tool which permits state and local governments to save billions of dollars in interest costs by refinancing their outstanding debt to a lower interest rate. Our nation benefits by allowing for a robust capital market to flourish, which in turn helps local communities build affordable infrastructure specifically related to their needs. Reinstating the prior tax-exemption for advance refunding bonds is essential to making that happen and the LOCAL Infrastructure Act does just that,” said SIFMA President Kenneth E. Bentsen, Jr.
“Tax-exempt municipal bonds are a critical tool enabling counties to finance infrastructure projects for our communities” said National Association of Counties Executive Director Matthew Chase. “The LOCAL Infrastructure Act would restore the tax-exemption of advance refunding bonds and give counties the flexibility to respond to market conditions and lower borrowing costs for residents. Counties applaud Senators Wicker and Bennet for their bipartisan leadership and urge swift passage of this legislation.”
Advance refunding allows state and local governments to refinance outstanding municipal bonds to more favorable borrowing rates or conditions before the end of the initial bond term on a tax-exempt basis. This process is very similar to how a homeowner may refinance the mortgage on their property to lock in a lower interest rate. The federal tax-exempt debt could be refinanced only once, but local communities would be able to take advantage of the lower interest rates to generate additional savings on existing bonds. Local governments could reinvest these savings to fund infrastructure, education, health care, or other capital improvement projects. Advance refunding has saved state and local governments billions of dollars over decades, but has been unavailable to state and local governments since 2017.
Click here to read a one-page outline of the legislation.
Click here to view the full text of the legislation.

MIL OSI USA News –

May 1, 2025

MIL-OSI Canada: CTA announces Volume-Related Composite Price Indices for Crop Year 2025–2026 for CN and CPKC

Source: Government of Canada News

April 30, 2025 – Gatineau, QC – Canadian Transportation Agency

The Canadian Transportation Agency (CTA) has announced its determination of the Volume-Related Composite Price Index (VRCPI) for the Canadian National Railway Company (CN) at 1.9734 and the Canadian Pacific Kansas City (CPKC) Railway Company at 1.9349 for the 2025–2026 crop year beginning August 1st. This is an increase in the VRCPI over the last crop year of 1.72% for CN and 3.11% for CPKC.

The determination of the VRCPIs is based on detailed submissions from CN and CPKC on their historical price information for railway inputs involving labour, fuel, material, and other capital items as well as forecasted future changes in these railway price components.

These indices will be used in determining CN’s and CPKC’s Maximum Revenue Entitlement for the movement of western grain in the 2025–2026 crop year. The Maximum Revenue Entitlement limits the overall revenue earned by CN and CPKC for shipping regulated grain.

What is the VRCPI?

The VRCPI is an inflation factor. It reflects a composite of the forecasted prices for railway labour, fuel, material and capital purchases. As part of the process of determining the annual VRCPI, the CTA examines and verifies detailed railway submissions.

The VRCPI will be applied when the CTA makes its Maximum Revenue Entitlement determinations by December 31, 2026, for the 2025–2026 crop year.

For more information

For more information on the CTA’s maximum revenue entitlement determinations since 2000, please see Western Grain: Maximum Revenue Entitlement program.

To learn more about CTA’s mandate, please visit our website.

MIL OSI Canada News –

May 1, 2025

MIL-OSI: Societe Generale: Availability of the first amendment to 2025 Universal Registration Document

Source: GlobeNewswire (MIL-OSI)

AVAILABILITY OF THE FIRST AMENDMENT TO 2025 UNIVERSAL REGISTRATION DOCUMENT

Regulated Information

Paris, 30 April 2025

Societe Generale hereby informs the public that the first amendment to the 2025 Universal Registration Document filed on 12^th March 2025 under number D.25-0088, has been filed with the French Financial Markets Authority (AMF) on 30^th April 2025 under number D-25-0088-A01.
This document is made available to the public, free of charge, in accordance with the conditions provided for by the regulations in force and may be consulted in the “Regulated information” section of
the Company’s website (https://investors.societegenerale.com/en/financial-and-non-financial-information/regulated-information) and on the AMF’s website.

Press contacts:
Jean-Baptiste Froville_+33 1 58 98 68 00_ jean-baptiste.froville@socgen.com
Fanny Rouby_+33 1 57 29 11 12_ fanny.rouby@socgen.com

Societe Generale

Societe Generale is a top tier European Bank with around 119,000 employees serving more than 26 million clients in 62 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

In case of doubt regarding the authenticity of this press release, please go to the end of the Group News page on societegenerale.com website where official Press Releases sent by Societe Generale can be certified using blockchain technology. A link will allow you to check the document’s legitimacy directly on the web page.

For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

Attachment

Societe-Generale-Availability-1st-amendment-2025-universal-registration-document

The MIL Network –

May 1, 2025

MIL-OSI Video: POTUS: “The biggest thing we’re working on, maybe bigger than tariffs…one Big Beautiful Bill.”

Source: United States of America – The White House (video statements)

#Trump #DonaldTrump #POTUS #PresidentTrump #Taxes #Tax #Budget #Bill #Congress #America #USA

https://www.youtube.com/watch?v=_fIFS43cQZE

MIL OSI Video –

May 1, 2025

MIL-OSI USA: My weekly column: 100 days of promises kept under President Trump

Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

April 30^th marked 100 days of promises kept under President Trump. Like he pledged on the campaign trail, he has mobilized every tool at his disposal to make America strong again and reverse the failed policies pushed by the Biden administration. From border security and energy dominance to government efficiency and economic investment, President Trump has delivered real results for the American people and has worked around the clock to put our families, farmers, workers, and small businesses first.

The clearest example of President Trump’s decisive leadership is his complete and total lockdown of our southern border. Illegal border crossings have plummeted by 95% and illegal immigrant “gotaways” have fallen by 99%. Drug traffickers, criminals, sex traffickers, and violent MS-13 and Tren de Aragua gang members have been quickly removed from our country. After Biden halted construction of the border wall, President Trump immediately restarted this vital national security initiative and reiterated his unwavering support for our border patrol agents who were treated so poorly under the Biden administration. President Trump was absolutely right when he remarked during his joint address to Congress on March 4^th that “it turned out that all we really needed was a new President” to secure our border.

Strengthening his work to close the border, President Trump honored families who have lost loved ones to illegal immigrant crime by signing the Laken Riley Act – the first piece of legislation to become law this year. The Laken Riley Act also included Sarah’s Law, in honor of 21-year-old Iowan Sarah Root, who was senselessly killed by a drunk driving illegal immigrant in 2016. Instead of answering for his crimes, this criminal posted bail, was released from jail, and fled our country never to be seen again. Sarah’s Law – now the law of the land thanks to President Trump – ensures that illegal immigrants who murder or seriously injure American citizens are detained without bail and held accountable for their actions. Fortunately, the illegal immigrant who killed Sarah Root was recently arrested in Honduras and the Trump administration worked quickly with Honduran authorities to extradite this criminal back to the United States to face justice. This is the action that the American people wanted to see, and President Trump is delivering.

Upon his return to the White House, President Trump also announced that he would do everything in his power to restore American energy dominance – and that he did. He created the National Energy Dominance Council to determine every avenue available to increase energy production, lower gas prices, and make the United States the world’s energy powerhouse. He rescinded countless Biden executive orders that promoted the Green New Deal over affordable gas and electricity prices and cut needless red tape that prevented American energy producers from reaching their full production capacity. He overturned the Biden administration’s ban on liquefied natural gas exports, signed a resolution – that I voted for – to completely repeal Biden’s costly tax on natural gas production, and stopped the Biden administration’s ridiculous electric-vehicle mandates on American families. Under President Trump’s watch, we will use the energy resources abundantly available in our own country and reduce our dependence on our foreign adversaries for our energy needs.

Government efficiency is another bright spot of President Trump’s America First agenda. The Biden administration exploded our national debt with trillions of dollars of wasteful spending that fueled inflation and made life more expensive for Americans. As promised, the Trump administration uncovered example after example of waste, fraud, and abuse in our federal government. DEI positions in federal agencies have been cut, spending on liberal initiatives has been slashed, and welfare for illegal immigrants has been suspended. Eliminating this type of waste ensures that programs like Medicare and Social Security – intended for American citizens only – can remain solvent now and well into the future. With President Trump in the White House, taxpayer dollars are being treated with the care that they deserve.

Additionally, because of President Trump’s mission to hold our trading partners accountable to our laws and protect our farmers, workers, manufacturers, and businesses from unfair and unlawful trade practices, business investment is accelerating in our country. More than $5 trillion in new investments in America have been announced, which will create over 451,000 new jobs in American communities. This impressive figure does not even include pledges that other countries have made to bring manufacturing and jobs to the United States, spurring additional economic growth. To complement these investments, my Republican colleagues and I are working hard to extend President Trump’s Tax Cuts and Jobs Act to deliver tax relief for our families, farmers, workers, and businesses. While Democrats want Americans to see the highest tax hike in U.S. history, President Trump and Republicans are committed to lowering taxes and unleashing U.S. economic prosperity. The American workforce and American industry will no longer be taken advantage of by foreign nations, and American citizens will rightfully keep more of their hard-earned money.

This is not an exhaustive list of the amazing achievements that President Trump has delivered in just 100 days, but it does prove that he is working harder than ever to serve the American people. I know that President Trump will take this same aggressive and results-oriented approach to his next four years in office.

MIL OSI USA News –

May 1, 2025

MIL-OSI Security: Owner of Chicago-Area Convenience Stores Convicted of Defrauding Low-Income Food Program for Women and Children

Source: Office of United States Attorneys

CHICAGO — A federal jury has convicted the owner of several Chicago-area convenience stores of scheming to defraud a low-income food program for women and children.

HASSAN ABDELLATIF, also known as “Eric,” 36, of Chicago, was convicted of all five counts against him, including two counts of wire fraud, one count of fraudulently obtaining government benefits, and two counts of willfully failing to file corporate tax returns. The jury returned its verdicts on Monday after a week-long trial in federal court in Chicago. U.S. District Judge Jorge L. Alonso set sentencing for Aug. 26, 2025.

Evidence at trial revealed that Abdellatif, who owned or operated El Milagro Mini Market, Supermercado El Grande, Star Mini Market, In & Out Grocery, and Harding Grocery, schemed with eight other store owners or workers to fraudulently redeem checks from the Women, Infants, and Children (“WIC”) program, a federally funded initiative designed to provide a nutritious diet to moderate and low-income infants, children up to five years of age, and pregnant, breastfeeding, and post-partum women. Over a period of several years, Abdellatif and the others knowingly allowed customers to provide their WIC checks as payment for ineligible items at the stores, often at inflated prices. Abdellatif and a co-defendant redeemed more than $6.5 million in WIC checks at two of the stores alone, before law enforcement searched those premises and shut down the fraud scheme.

The evidence established that ten stores involved in the scheme redeemed more than $19 million in WIC checks over an eight-year period. All eight of Abdellatif’s co-defendants pleaded guilty prior to his trial.

The convictions were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, Shantel R. Robinson, Special Agent-in-Charge of the Midwest Regional Office of the U.S. Department of Agriculture, Office of Inspector General, and Ramsey E. Covington, Acting Special Agent-in-Charge of IRS Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorneys Kartik Raman, Rick Young, and Matthew Moyer.

MIL Security OSI –

May 1, 2025

MIL-OSI: PayBright Partners with Next Gen POS Provider Union for Bars and Nightclubs

Source: GlobeNewswire (MIL-OSI)

RALEIGH, N.C., April 30, 2025 (GLOBE NEWSWIRE) — PayBright, a leading merchant services provider, announced today it has partnered with Union, a data-driven hospitality point of sale and engagement platform powering high-volume venues across the country. Union joins PayBright’s more than two dozen industry partnerships as the company’s preferred point-of-sale (POS) solution for bars, nightclubs, and hospitality venues. Union drives operational efficiencies, delivers personalized guest experiences and rewards, and provides real-time data analytics.

“We are excited to offer Union’s next-gen POS solution to our hospitality clients,” said Dustin Magaziner, Founder and CEO of PayBright. “Innovative technology solutions are improving how bars and nightclubs deliver exceptional customer experiences – all backed by real-time data analytics and personalized customer engagement tools. Union is the best in the business at putting these tools together in one platform that’s simple to use and impactful to implement – and we couldn’t be happier to offer it on behalf of PayBright’s team.”

Featured on the 2025 Inc. 5000 list of the fastest growing private companies in the Mid-Atlantic region, PayBright is committed to enhancing the sales process for independent agents in the merchant services space, with a focus on transparency, affordability and simplicity – while delivering best-in-class technology solutions. The company’s nationwide network of 900 independent sales agents have worked with more than 15,000 businesses across the country, while delivering hyper-local merchant services and support.

High-volume venues depend on Union to deliver food and drink orders up to 80% faster and allow customers the option to pay their bill with a mobile device. With unique customer insights and data management tools, Union gives venues the information they need to deliver personalized guest services and exceptional experiences. The platform is built on the collective expertise of 50 successful hospitality veterans – designed by operators for operators. Union POS now powers over 1,500 of the nation’s highest-volume bars, nightclubs, and restaurants. While processing thousands of transactions an hour, the company delivers unprecedented insights into consumer behavior and market trends.

“This partnership with PayBright reflects Union’s commitment to hospitality success,” said Jeffrey Sanders, Chief Revenue Officer at Union. “By collaborating with specialized merchant partners, we’re able to give bar and restaurant operators the flexibility to choose the right experts, support, and financial structures that best serve their unique business needs. Together, we deliver an integrated ecosystem where complementary expertise creates superior solutions that drive operational efficiency and long-term growth for hospitality businesses.”

About PayBright
PayBright is a merchant services provider that works with independent agents, ISOs, banks and other strategic partners to provide payment solutions to businesses. By focusing on a ‘merchant services done right’ model, PayBright has become an industry leader by ensuring transparency, affordability and simplicity for agents and their local merchants. To learn more about PayBright, visit: https://www.gopaybright.com/.

About Union
Union powers a first-of-its-kind venue operating system purpose-built for the nation’s busiest bars and restaurants. More than a point-of-sale, Union connects 1,500+ establishments with 5M+ consumers and leading brands through real-time consumption data. The platform drives operational efficiency, enables frictionless mobile ordering, and facilitates brand-patron interactions that enhance venue loyalty. With $2B+ in annual transactions, Union creates a virtuous cycle where venues improve customer experiences, brands gain direct consumer engagement, and patrons enjoy personalized rewarding hospitality—transforming high-volume operations into next-gen guest experiences. To learn more about Union, visit http://www.getunion.com.

The MIL Network –

May 1, 2025

Category: Taxation