Taxation – Page 125 – NewzIntel.com

MIL-OSI Europe: The EBA publishes key indicators on climate risk in the EU/EEA banking sector

Source: European Banking Authority

The European Banking Authority (EBA) today released an ESG dashboard that establishes a broader ESG risks monitoring framework and allows centralised access to comparable climate risk indicators. This dashboard provides benchmarks and enhances the assessment and monitoring of transition and physical climate-related risk across the EU/EEA banking sector. It is based on the information disclosed by banks as part of their Pillar 3 ESG disclosures.

This dashboard covers climate risk, both from a transition and a physical perspective. The indicators show the spectrum of green financing, based on the alignment with the EU Taxonomy, as well as beyond the Taxonomy criteria, considering internal definitions of green finance used by institutions.

The data show a substantial exposure (above 70% in most countries) of the EU/EEA banks to corporates from sectors highly contributing to climate change. This may imply a significant exposure to climate-related transition risk, especially if companies are affected by policy measures related to sustainability objectives, if a need to invest in technological change arises, or are affected by changing consumer preferences. Companies active in these sectors may of course be affected by these risks to a different extent and the aggregate data cannot recognise individual differences or transition measures already taken.

Indicators related to physical risk show an average share of exposures in areas subject to elevated physical risk below 30% in most countries. However, the granularity at which data is disclosed in different geographical locations, as well as the assessment methodologies vary across institutions. The indicators are built on data disclosed by institutions presenting their own assessment of the exposures and geographical areas exposed to this type of risk.

The dashboard also includes specific indicators for exposures secured by immovable property collateral, showing that approximately half of the EU real estate lending is classified in the first two buckets of energy efficiency, lower than 200 kWh/m2 of collateral. This may indicate relatively limited transition risk related to immovable property collateral. However, banks report that they largely rely on proxies and estimates with regard to energy efficiency data, hence the need to interpret this data with caution.

Finally, the tool provides indicators related to EU/EEA banks’ alignment with the EU Taxonomy and beyond. While the Green Asset Ratio (GAR) remains low, slightly below 3% on average, there is noticeable dispersion across EU/EEA banks and countries. The currently low level of the indicator owes to the structure of the indicator itself. The computed loan GAR, which aligns the numerator and the denominator of the indicator, displays higher levels. The low level of the indicator is also due to the fact that the economy is still under transition, with at this stage few activities being able to demonstrate alignment with the Taxonomy criteria. To facilitate the interpretation, the GAR figures are accompanied by further indicators, offering a more detailed focus on lending to specific types of counterparties, presenting the scope of exposures that are eligible to be assessed against the Taxonomy criteria, and the extent of green lending based on other criteria than the EU Taxonomy.

Legal basis, background and next steps

The development of the ESG risk monitoring framework supports the Commission’s objective to systemically monitor climate-related financial stability risks. The ESG risk indicators have been developed in accordance with Article 29(f) of the EBA founding regulation (Regulation EU 1093/201), requiring the EBA to put in place a monitoring system to assess environmental, social and governance-related risks taking into account the Paris Agreement to the United Nations Framework Convention on Climate Change.

The indicators are built based on Pillar 3 ESG data disclosed by banks with reference dates of 31 December 2023 and 30 June 2024.

The EBA intends to regularly update and evolve the indicators over time. Given that the Pillar 3 disclosure templates are presently under revision, the charts and indicators may be adjusted in future updated versions. This relates in particular to the Taxonomy alignment indicators (any changes to the GAR in the relevant regulations would be reflected in future updates of the ESG risks monitoring tool).

MIL OSI Europe News –

April 25, 2025

MIL-OSI: WithSecure Interim Report 1 January – 31 March 2025: Elements ARR growth continued, 70% ARR growth for Cloud Protection for Salesforce

Source: GlobeNewswire (MIL-OSI)

WithSecure Corporation, Interim Report 1 January – 31 March 2025, 25 April 2025 at 8.00 EEST

WithSecure Interim Report 1 January – 31 March 2025: Elements ARR growth continued, 70% ARR growth for Cloud Protection for Salesforce

Highlights of January – March 2025 (“first quarter”)

Annual Recurring Revenue (ARR)¹ for Elements Cloud products and services increased by 8% to EUR 86.6 million (EUR 80.5 million)
Elements Cloud ARR increase from previous quarter was 4%
Net Revenue Retention (NRR) for Elements Cloud was 103%
Revenue for Elements Cloud increased by 6% to EUR 21.9 million (EUR 20.6 million)
Adjusted EBITDA for Elements Company was EUR 0.9 million (EUR 0.7 million, restated)
ARR for Cloud Protection for Salesforce increased by 70% to EUR 13.9 million (EUR 8.2 million)
Net Revenue Retention (NRR) for CPSF was 133%
Operative cash flow of the first quarter was EUR -2.6 million (EUR -2.4 million)
Items affecting comparability (IAC) of adjusted EBITDA were EUR -0.2 million (EUR +0.1 million).

Annual recurring revenue (ARR) of cloud products is calculated by multiplying monthly recurring revenue of last month of quarter by twelve. Monthly recurring revenue includes recognized revenue within the month excluding non-recurring revenue and adjustments for one-off items

Outlook for 2025 (unchanged)
Annual Recurring Revenue (ARR) for Elements Cloud products and services will grow by 10-20% from the end of 2024.
At the end of 2024, Elements Cloud ARR was EUR 83.3 million.

Elements Company segment’s Adjusted EBITDA will be 3-7% of revenue.

Annual Recurring Revenue (ARR) for Cloud Protection for Salesforce (CPSF) will grow by 20-35% from the end of 2024.
At the end of 2024, CPSF ARR was EUR 12.8 million.

Cyber security consulting business will be divested in 2025. Elements company and CPSF will have their own guidance going forward. Both are recurring, subscription-based businesses, which is reflected in the new guidance.

Medium-term financial target (for Elements Company segment) (unchanged)
Over the next three years (2025-2027), WithSecure will become a “Rule of 30+” company.
The components of the target are

Annual revenue growth as percentage
Adjusted EBITDA as percentage of revenue

WithSecure is targeting to reach a sum of the components that exceeds 30.

Figures in this release are unaudited. Figures in brackets refer to the corresponding period in the previous year, unless otherwise stated. Percentages and figures presented may include rounding differences and might therefore not add up precisely to the totals presented.

CEO Antti Koskela
First quarter of 2025 was marked by many unusual events impacting the world politics and economy. Despite the turbulence, both of WithSecure’s businesses remained on the growth track. Elements Cloud Annual Recurring Revenue (ARR) increased by 8% to EUR 86.6 million (EUR 80.5 million), and the Elements Cloud revenue grew by 6% to EUR 21.9 million (EUR 20.6 million). Cloud Protection for Salesforce, reported as a separate segment from the Elements, had a 70% ARR growth to EUR 13.9 million (EUR 8.2 million).

In a world where cyber security is not just a technical challenge but also a geopolitical one, we believe that how and where technology is built truly matters. Our strategy is to become a flagship for European cyber security, and we are positioning ourselves at the forefront of this transformation. Given the geopolitical situation, we have seen significant interest in a European alternative among our partners and customers. We signed an agreement in the beginning of the second quarter to divest our Malaysian entity to a partner, who will become WithSecure’s preferred distributor in the region. Once this transaction is complete, all WithSecure’s products and services will be developed and delivered from Europe. We continue to develop our partner channel, and signed several new key partner agreements during the first quarter.

Inside Elements Cloud, the ARR for Elements Cloud software and co-security services increased by 14% to EUR 65.7 million (EUR 57.8 million). The growth is driven by both new customers and the expansion of existing customers. Especially the new portfolio items Exposure Management and Elements MDR, launched in May 2024, have already begun to contribute to the growth. The Managed services ARR declined by 8% to EUR 20.9 million (EUR 22.7 million). The ARR decline is mostly related to customers in the UK.

Elements Company Adjusted EBITDA in the first quarter was EUR 0.9 million (EUR 0.7 million, restated figure). Operative cash flow was EUR -2.6 million (EUR -2.4 million). Cash flow was impacted by the previous year’s bonus payments, as well as the additional costs related to divestments.

Cloud Protection for Salesforce (CPSF) continued with a strong performance and achieved a 70% growth of ARR, to EUR 13.9 million (EUR 8.2 million). The growth was driven by many new enterprise customer logos, as well as smaller Salesforce users who want to protect their Salesforce Cloud from vulnerabilities caused by external content uploads. The CPSF segment became profitable for the first time, with EUR 0.4 million Adjusted EBITDA (EUR -0.4 million). We continue to develop CPSF as an independent business inside WithSecure, while keeping the strategic review options open.

The divestment of our Cyber security consulting business, announced on 23 January 2025, is progressing as planned. The carve-out process is ongoing in collaboration with the buyer, and the target to close the transaction during the second quarter of 2025 remains valid.

Financial performance – WithSecure Group

(mEUR)	1-3/2025	1-3/2024	Change %	1-12/2024
Continuing operations
Revenue	30.1	28.8	4%	116.0
Cost of revenue	-5.7	-5.9	-3%	-23.4
Gross Margin	24.4	22.9	6%	92.6
% of revenue	81.0 %	79.4 %		79.8 %
Other income for adjusted EBITDA¹	0.1	0.4	-83%	2.0
Operating expenses for adjusted EBITDA¹	-23.1	-23.2	0%	-92.6
Sales & Marketing	-11.8	-11.3	4%	-47.9
Research & Development	-8.1	-9.1	-11%	-35.0
Administration	-3.2	-2.7	18%	-9.7
Adjusted EBITDA¹	1.3	0.2	618%	2.0
% of revenue	4.5 %	0.7 %		1.7 %
Items affecting comparability (IAC)
Other items	0.0	0.3	-100%	-1.0
Divestments	0.0	-0.7	-95%	1.2
Restructuring	-0.1	0.4	-130%	-1.1
EBITDA	1.2	0.3	339%	1.1
% of revenue	3.9 %	0.9 %		1.0 %
Depreciation & amortization, excluding PPA	-2.1	-2.2	-3%	-9.0
PPA amortization²	-0.5	-0.6	-17%	-2.2
EBIT	-1.5	-2.6	43%	-10.1
% of revenue	-4.9 %	-8.9 %		-8.7 %
Adjusted EBIT¹	-0.8	-2.0	61%	-7.0
% of revenue	-2.6 %	-7.0 %		-6.0 %

Discontinued operations
Revenue	6.5	7.4	-13%	31.4
Adjusted EBITDA¹	-1.6	-0.2	-736%	1.1
% of revenue	-24.4 %	-2.5 %		3.6 %
Items affecting comparability (IAC)
Divestments	0.6			1.1
EBIT	-2.3	-0.4	-548%	-29.3
% of revenue	-36.1 %	-4.9 %		-93.6 %

Combined operations
Revenue	36.6	36.2	1%	147.4
Adjusted EBITDA¹	-0.2	0.0	n/a	3.1
% of revenue	-0.6 %	0.0 %		2.1 %
Earnings per share, (EUR)³	-0.02	-0.01	-66%	-0.22
Deferred revenue	69.5	69.9	-1%	67.7
Cash flow from operations before financial items and taxes	-2.6	-2.4	-5%	2.1
Cash and cash equivalents	22.7	32.3	-30%	27.3
ROI, %	-3.1 %	-7.1 %		-34.1 %
Equity ratio, %	60.4 %	77.1 %		59.1 %
Gearing, %	7.3 %	-18.9 %		0.4 %
Personnel, end of period	964	996	-3%	961

Adjustments are material items outside the normal course of business associated with acquisitions, integration, restructuring, gains or losses from sales of businesses and other items affecting comparability. For reconciliation and breakdown of adjusted costs, see Note 6 (Reconciliation of alternative performance measures)
Amortization of intangible assets from business combinations (PPA, purchase price allocation, related amortizations).
Based on the weighted average number of outstanding shares during the period 176,098,739 (1-3/2025).

Events after period-end
On 14 April 2025, WithSecure published its intention to divest the Malaysian entity and business operations to LS Systems Group. The transaction is expected to close during the second quarter of 2025. The responsibilities of the Malaysia site will be transitioned to WithSecure’s European locations. The transaction underscores WithSecure’s commitment to the European way in cyber security, and ensures consolidation of all WithSecure’s operations in Europe.

Additional information
This is a summary of WithSecure’s Interim Report 1 January – 31 March 2025. The full report is a PDF file attached to this stock exchange release. Full report is also available on the company website.

Webcast
WithSecure’s CEO Antti Koskela and CFO Tom Jansson will present the results in a webcast on 25 April starting at 14.00 EEST. The webcast will be held in English and can be accessed at

https://withsecure.events.inderes.com/q1-2025

Questions in written format are requested in the webcast portal. Presentation material and the webcast recording will be available on the company website

Materials | Investor Relations | WithSecure™

Financial calendar
During the year 2025, WithSecure Corporation will publish financial information as follows:

16 July 2025: Half-Year Report for January–June 2025
22 October 2025: Interim Report for January–September 2025

WithSecure observes at least a three-week (21 days) silent period prior to publication of financial reports, during which it refrains from engaging in discussions with capital market representatives or the media regarding WithSecure’s financial position or the factors affecting it.

Contact information

Tom Jansson, CFO
WithSecure Corporation

Laura Viita, VP, Controlling, investor relations and sustainability
WithSecure Corporation
+358 50 487 1044
investor-relations@withsecure.com

Attachment

Interim report 1 January – 31 March 2025

The MIL Network –

April 25, 2025

MIL-OSI USA: DelBene Highlights Nationwide Affordable Housing Crisis at Bellevue Development

Source: United States House of Representatives – Congresswoman Suzan DelBene (1st District of Washington)

Today, Congresswoman Suzan DelBene (WA-01) visited August Wilson Place, a 57-unit affordable housing development in downtown Bellevue, to highlight the nationwide shortage of affordable housing. The property was made possible because of the Low-Income Housing Tax Credit (LIHTC/Housing Credit), the nation’s most effective tool for creating affordable housing. During the visit, DelBene participated in a roundtable to hear from a wide range of local housing stakeholders, including Bellevue community officials, property operators, housing advocates, employers, and facility residents.

Washington faces one of the most severe affordable housing shortages in the country, with more than 250,000 households spending over half of their income on rent. The Housing Credit has been instrumental in financing the construction and preservation of over 4 million affordable homes nationwide since its inception.

Earlier this month, DelBene introduced bipartisan legislation with over 100 members of the House that would build or restore 1.6 million more affordable homes, including 53,000 in Washington, by expanding the Housing Credit.

“Access to a safe, affordable home is foundational to a family’s well-being, yet far too many families in Washington are being priced out of their communities,” said DelBene. “This development underscores the impact the Housing Credit can have and why it’s a proven solution to help address the affordable housing crisis. This crisis won’t be solved overnight, but with the right tools and smart federal investment, we can make a real difference. Expanding the Housing Credit is one of the most effective ways we can deliver the affordable housing our state desperately needs.”

“LIHTC is the single most important source of financing for creating and preserving affordable housing in Bellevue,” said Bellevue Mayor Lynne Robinson. “Expanding LIHTC through the Affordable Housing Credit Improvement Act will help us to create more housing opportunities for families, seniors, low-wage workers, and people seeking stable housing.”

This week, House Democrats are hosting a Cost of Living Week of Action to highlight the affordability challenges facing American families.

MIL OSI USA News –

April 25, 2025

MIL-OSI: BlackRock® Canada Announces Final April Cash Distributions for the iShares® Premium Money Market ETF

Source: GlobeNewswire (MIL-OSI)

TORONTO, April 24, 2025 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced the final April 2025 cash distributions for the iShares Premium Money Market ETF. Unitholders of record on April 25, 2025 will receive cash distributions payable on April 30, 2025.

Details regarding the final “per unit” distribution amounts are as follows:

Fund Name	Fund Ticker	Cash Distribution Per Unit
iShares Premium Money Market ETF	CMR	$0.121

Further information on the iShares ETFs can be found at http://www.blackrock.com/ca.

About BlackRock

BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @BlackRockCA

About iShares ETFs

iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1500+ exchange traded funds (ETFs) and US$4.3 trillion in assets under management as of March 31, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

iShares^® ETFs are managed by BlackRock Asset Management Canada Limited.

Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares ETFs. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

Contact for Media:
Sydney Punchard
Email: Sydney.Punchard@blackrock.com

The MIL Network –

April 25, 2025

MIL-OSI: Next Hydrogen Reports Q4 2024 and Fiscal 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

MISSISSAUGA, Ontario, April 24, 2025 (GLOBE NEWSWIRE) — Next Hydrogen Solutions Inc. (the “Company” or “Next Hydrogen”) (TSXV:NXH, OTC:NXHSF), a designer and manufacturer of electrolyzers, is pleased to report its financial results for the fourth quarter and full year ended December 31, 2024.

“Next Hydrogen demonstrated best commercially available cell performance with best-in-class operating range, delivered its second-generation system to a customer site after an extended Factory Acceptance Test, secured a strategically important Green Ammonia project in partnership with GE and Casale, entered the aviation fuels vertical in partnership with Pratt & Whitney and secured funding support from Export Development Canada and existing investors,” said Raveel Afzaal, President & CEO. “With proven technology advantage and globally competitive gigawatt scale manufacturing capacity available through partnering with a leading hydrogen production system manufacturer, our objective is to drive a significant growth in our sales backlog in strategic verticals in 2025.”

2024 Financial Highlights

Cash balance was $3.5M as of December 31, 2024, compared to $10.9M as of December 31, 2023.
Revenue for the year ended December 31, 2024 was $1.4M compared to $1.0M in the same period of the prior year.
Net loss and comprehensive loss for the year ended December 31, 2024 was $14.6M compared to $12.0M in the same period of the prior year.

Management is proud to highlight several recent milestones that demonstrate significant recent progress:

In April 2025, Next Hydrogen received a $5M working capital debt facility from the Export Development Canada (“EDC”), of which approximately $3M has been received in cash and the remaining $2M is expected later in the year. Next Hydrogen intends to use the funds where necessary to improve on its technology and for general corporate purposes.
Next Hydrogen has achieved over 40,000 hours of data on its test platform driving the significant improvement in cell performance achieved to date.
In March 2025, Next Hydrogen partnered with a leading hydrogen production system manufacturer with an existing gigawatt scale manufacturing facility to accelerate the scale-up and commercialization of its water electrolysis technology. This partnership provides Next Hydrogen with world-leading manufacturing capacity and competitively positions it to bid on large-scale projects globally starting in 2026. Next Hydrogen will continue to maintain control over intellectual property and electrolyzer design. The Company also aims to further expand its Canadian operations to ensure flexible supply chain and production that aligns with evolving clean energy policies, driving global green hydrogen adoption.
In March 2025, Next Hydrogen received ISO 9001-2015 and ISO 45001-2018 certifications for its 6610 Edwards Boulevard site in Mississauga, Canada. This demonstrates and certifies Next Hydrogen’s standardized quality systems, health and safety management systems, supplier selection processes, and continuous improvement processes. These certifications show that the Company has an efficient operating system capable of scaling to support its expanding customer base.
In March 2025, the Company appointed Adarsh Mehta to the Company’s board of directors (the “Board”). Ms. Mehta filled the vacancy on the Board resulting from the resignation of Mr. Matthew Fairlie, who resigned from the Board effective January 15, 2025. Ms. Mehta is VP of Business Development at Jenner Renewable Consulting, with 22 years of experience in renewable energy, leading technical reviews, due diligence, and development for over 2,500MW of wind and solar projects in the Americas. She served on the Canadian Wind Energy Association’s Board from 2008 to 2015 and was Chairperson in 2011. Her extensive expertise in renewable energy and project development is crucial for the Company’s growth.
As of December 2024, the Company closed a private placement offering (the “Offering”) and received unsecured convertible debentures (each, a “Debenture”) consisting of about $2.7M principal amount of Debentures. Next Hydrogen intends to use the proceeds of the Offering to invest in its scale-up efforts and for general corporate purposes.

In November 2024, Next Hydrogen and Pratt & Whitney announced a collaboration to demonstrate the use of hydrogen in aircraft engines as an enabler for reducing CO2 emissions. This project is partially funded by Canada’s Initiative for Sustainable Aviation Technology (“INSAT”) and will accelerate the Company’s efforts towards high efficiency, low-cost electrolyzers which are needed for establishing hydrogen production infrastructure for aviation fuel.
In October 2024, the Company successfully completed a durability test of its second-generation water electrolyzer technology (“GEN2”) electrolysis cells used in the efficient production of green hydrogen. The GEN2 cells will be deployed in Next Hydrogen electrolyzers at customer sites for commercial operation. Next Hydrogen previously reported that it has achieved its energy efficiency targets cell performance of 1.90 V/cell at 1 A/cm2 and 70°C for its GEN2 water electrolyzer technology which exceeded the reported US Department of Energy (“DOE”) technical targets status for energy efficiency. The GEN2 performance achievement has positioned the Company to being the industry leader in electrolysis cell performance.
In October 2024, Next Hydrogen welcomed Premier Doug Ford, Associate Minister Sam Oosterhoff, Minister Stephen Lecce, MPP Deepak Anand and MPP Rudy Cuzzetto to their manufacturing facility. This along with the visit from our Deputy Prime Minister (see below) demonstrates the strong alignment between the Company’s work and the national strategy for Canada to be a leader in green hydrogen production.
In September 2024, the Company successfully completed an extended Factory Acceptance Test for its GEN2 electrolysis cells. The Company plans to commission the system at an external reference site for market demonstration in 2025.
In August 2024, the Company was awarded a contract by the University of Minnesota (“UMN”) for its latest generation electrolysis technology to be installed at the UMN West Central Research and Outreach Center (“WCROC”). The WCROC project is supported by the U.S. Department of Energy’s Advanced Research Project Agency (“ARPA-E”) as well as other partners including RTI International (“RTI”) and will include technologies from Casale SA, RTI, UMN, Nutrien and Shell to demonstrate the production of ammonia from renewable energy targeting emerging energy markets and existing agricultural markets. Next Hydrogen will be supplying its latest third-generation Alkaline Water Electrolyzers featuring further advancements in energy efficiency, current density and operating pressure.
In May 2024, the Company was granted a repayable contribution of $2M from Federal Economic Development Agency for Southern Ontario. This non-interest-bearing contribution is intended to support the Company’s growth initiatives aimed at commercialization and business development advancements. The Company continues to be in advanced discussions with FedDev Ontario to help support its activities for 2025 and beyond.
In April 2024, Next Hydrogen welcomed former Deputy Prime Minister Chrystia Freeland, MP Kamal Khera and MP Peter Fonseca to their manufacturing facility to announce new investment tax credits which further supported the Canadian clean technology sector. Minister Freeland also stated publicly “Next Hydrogen in Mississauga is changing the game in renewable energy and clean hydrogen production!”

For a more detailed discussion of Next Hydrogen’s fourth quarter and fiscal 2024 results, please see the Company’s financial statements and management’s discussion and analysis, which are available on the Company’s website at nexthydrogen.com or on SEDAR+ at www.sedarplus.ca.

In addition, to better understand our achievements from 2024 and the outlook for 2025, please refer to the CEO letter included in the 2024 year-end MD&A.

About Next Hydrogen

Founded in 2007, Next Hydrogen is a designer and manufacturer of electrolyzers that use water and electricity as inputs to generate clean hydrogen for use as an energy source. Next Hydrogen’s unique cell design architecture supported by 40 patents enables high current density operations and superior dynamic response to efficiently convert intermittent renewable electricity into green hydrogen on an infrastructure scale. Following successful pilots, Next Hydrogen is scaling up its technology to deliver commercial solutions to decarbonize industrial and transportation sectors.

Contact Information

Raveel Afzaal, President and Chief Executive Officer
Next Hydrogen Solutions Inc.
Email: rafzaal@nexthydrogen.com
Phone: 647-961-6620

www.nexthydrogen.com

Cautionary Statements

This news release contains “forward-looking information” and “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the risks associated with the hydrogen industry in general; delays or changes in plans with respect to infrastructure development or capital expenditures; cell efficiency targets; expected order sizes for the product line; customer relationships and customer terms for testing of products at a customer site; the ability of the Corporation to optimize energy efficiencies; the Corporation’s available resources to double its growing backlog; uncertainty with respect to the timing of any contemplated transactions or partnerships, or whether such contemplated transactions or partnerships will be completed at all; whether the uncertainty of estimates and projections relating to costs and expenses; failure to obtain necessary regulatory approvals; health, safety and environmental risks; uncertainties resulting from potential delays or changes in plans with respect to infrastructure developments or capital expenditures; currency exchange rate fluctuations; as well as general economic conditions, stock market volatility; and the ability to access sufficient capital. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, there will be no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.

The MIL Network –

April 25, 2025

MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

JEFFERSONVILLE, Ind., April 24, 2025 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $5.5 million, or $0.79 per diluted share, for the quarter ended March 31, 2025, compared to net income of $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $5.3 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.76 (non-GAAP measure)⁽¹⁾ for the quarter ended March 31, 2025 compared to $3.6 million, or $0.52 per diluted share for the quarter ended March 31, 2024.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the second fiscal quarter performance, including the continued improvement in the net interest margin, which has increased eighteen and twenty-one basis points for the three and six months ended, respectively. The SBA Lending segment posted its first profitable quarter since March 2024 and posted a solid level of loans originations and sales. Asset quality improved with nonperforming loans decreasing $3.8 million from the prior quarter and the ratio of nonperforming loans to total gross loans improving to 0.67%, a decrease of twenty basis points from the prior quarter. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit (“HELOCS”), and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value.”

^{(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.}

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

Net interest income increased $1.7 million, or 11.6%, to $16.0 million for the three months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended March 31, 2025 was 2.93% as compared to 2.66% for the same period in 2024. The increase in net interest income was due to an increase of $807,000 in interest income and a decrease of $846,000 in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a reversal of provision for credit losses for loans and securities of $357,000 and $1,000, respectively, and a provision for unfunded lending commitments of $123,000 for the three months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $713,000 and $23,000, respectively, and reversal of provision for unfunded lending commitments of $259,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to a decrease in qualitative reserves and $156,000 in net recoveries recognized during the period. The $156,000 in net recoveries during the three months ended March 31, 2025 included $215,000 in net recoveries related to unguaranteed portions of SBA loans. During the three months ended March 31, 2024, the Company recognized net charge-offs of $110,000, of which $15,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $4.2 million from $16.9 million at September 30, 2024 to $12.7 million at March 31, 2025, due primary to a $4.9 million decrease in loan balances guaranteed by the SBA.

Noninterest income decreased $150,000 for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was due primarily to a $539,000 decrease in other income, partially offset by a $154,000 increase in service charges on deposit accounts and a $127,000 increase in net gain on sales of SBA loans. The decrease in other income in 2025 was primarily due to $492,000 gain on the sale of mortgage servicing rights during the 2024 period with no corresponding amount for 2025.

Noninterest expense increased $1.9 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $940,000 and $948,000, respectively. The increase in compensation and benefits was primarily due to an increase in bonus and incentive accruals in 2025. The increase in other operating expenses was primarily due a $656,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period compared to a reversal of $41,000 for the same period in 2025 and an adjustment to the valuation allowance related to the sale of residential mortgage servicing rights of $247,000 in 2024 with no corresponding amount in 2025.

The Company recognized income tax expense of $589,000 for the three months ended March 31, 2025 compared to $866,000 for the same period in 2024. The decrease is due primarily to greater utilization of investment tax credits in the 2025 period. The effective tax rate for 2025 was 9.7% compared to 14.9% for 2024. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

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

The Company reported net income of $11.7 million, or $1.68 per diluted share, for the six months ended March 31, 2025 compared to net income of $5.8 million, or $0.85 per diluted share, for the six months ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $1.35 (non-GAAP measure)⁽¹⁾ for the six months ended March 31, 2025 compared to net income of $4.5 million and net income per diluted share of $0.66 for the six months ended March 31, 2024. The core banking segment reported net income of $11.4 million, or $1.64 per diluted share for the six months ended March 31, 2025 compared to net income of $8.6 million and net income per diluted share of $1.25 for the six months ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $9.1 million (non-GAAP measure)⁽¹⁾, or $1.31 per diluted share (non-GAAP measure)⁽¹⁾ for the six months ended March 31, 2025 compared to net income of $7.7 million and net income per diluted share of $1.12 for the six months ended March 31, 2024.

Net interest income increased $3.0 million, or 10.6%, to $31.5 million for the six months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the six months ended March 31, 2025 was 2.84% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $4.6 million increase in interest income, partially offset by a $1.6 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a reversal of provision for credit losses for loans and securities of $848,000 and $7,000, respectively, and a provision for unfunded lending commitments of $169,000 for the six months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $1.2 million and $23,000, respectively, and reversal of provision for unfunded lending commitments of $317,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOCS during the period and a decrease in qualitative reserves. The Company recognized net recoveries totaling $38,000 for the six months ended March 31, 2025, of which $164,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $119,000 in 2024, of which $64,000 was related to unguaranteed portions of SBA loans.

Noninterest income increased $3.2 million for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to a $2.5 million net gain on sale of HELOCs in 2025, net gains of $403,000 on the sale of equity securities in 2025 with no corresponding gains for 2024, a $248,000 increase in service charges on deposit accounts, and a $263,000 increase in ATM and interchange fees, slightly offset by a $508,000 decrease in other income due to a $495,000 gain recognized on the sale of mortgage servicing rights during 2024 with no corresponding amount for 2025.

Noninterest expense increased $824,000 for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other operating expenses and compensation and benefits of $962,000 and $453,000, respectively, partially offset by decreases in professional fees and occupancy and equipment of $454,000 and $380,000, respectively. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 compared to a reversal of $148,000 in 2025 and a $400,000 accrued contingent liability associated with employee benefits recognized in 2025 with no corresponding amount in 2024, partially offset by a decrease of $180,000 in 2025 to reverse previously accrued litigation expenses. The increase in compensation and benefits is primarily due to an increase in bonus and incentive accruals in 2025 compared to 2024. The decrease in professional fees and occupancy and equipment is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $1.4 million for the six months ended March 31, 2025 compared to $390,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period, including the aforementioned net gain on sale of loans. The effective tax rate for 2025 was 10.9% compared to 6.3%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

Comparison of Financial Condition at March 31, 2025 and September 30, 2024

Total assets decreased $74.1 million, from $2.45 billion at September 30, 2024 to $2.38 billion at March 31, 2025. Net loans held for investment decreased $83.7 million during the six months ended March 31, 2025 due primarily to the $87.2 million bulk sale of home equity lines of credit.

Total liabilities decreased $76.2 million due primarily to a decrease in total deposits of $91.7 million, partially offset by an increase in FHLB borrowings of $23.7 million. The decrease in total deposits was due to a decrease in brokered deposits of $112.4 million, due primarily to proceeds from the aforementioned bulk sale of home equity lines of credit and an increase in customer deposits of $20.7 million. As of March 31, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.8% of total deposits and 15.1% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Total stockholders’ equity increased $2.1 million, from $177.1 million at September 30, 2024 to $179.2 million at March 31, 2025, due primarily to a $9.6 million increase in retained net income, partially offset by a $8.2 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the six months ended March 31, 2025, which resulted in a decrease in the fair value of securities available for sale. At March 31, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company’s periodic filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724


FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)


	Three Months Ended						Six Months Ended
OPERATING DATA:	March 31,						March 31,
(In thousands, except share and per share data)		2025			2024			2025			2024

Total interest income	$	30,823		$	30,016		$	63,272		$	58,671
Total interest expense		14,832			15,678			31,819			30,220

Net interest income		15,991			14,338			31,453			28,451

Provision (credit) for credit losses – loans		(357	)		713			(848	)		1,183
Provision (credit) for unfunded lending commitments		123			(259	)		169			(317	)
Provision (credit) for credit losses – securities		(1	)		23			(7	)		23

Total provision (credit) for credit losses		(235	)		477			(686	)		889

Net interest income after provision (credit) for credit losses		16,226			13,861			32,139			27,562

Total noninterest income		3,560			3,710			9,663			6,492
Total noninterest expense		13,698			11,778			28,641			27,817

Income before income taxes		6,088			5,793			13,161			6,237
Income tax expense		589			866			1,437			390

Net income	$	5,499		$	4,927		$	11,724		$	5,847

Net income per share, basic	$	0.80		$	0.72		$	1.71		$	0.86
Weighted average shares outstanding, basic		6,875,826			6,832,130			6,861,061			6,828,017

Net income per share, diluted	$	0.79		$	0.72		$	1.68		$	0.85
Weighted average shares outstanding, diluted		6,960,020			6,859,611			6,961,829			6,849,928


Performance ratios (annualized)
Return on average assets		0.93	%		0.84	%		0.98	%		0.50	%
Return on average equity		12.24	%		11.96	%		13.15	%		7.38	%
Return on average common stockholders’ equity		12.34	%		11.96	%		13.15	%		7.38	%
Net interest margin (tax equivalent basis)		2.93	%		2.66	%		2.84	%		2.68	%
Efficiency ratio		70.06	%		65.26	%		69.66	%		79.61	%


							QTD						FYTD
FINANCIAL CONDITION DATA:	March 31,			December 31,			Increase			September 30,			Increase
(In thousands, except per share data)		2025			2024		(Decrease)				2024		(Decrease)

Total assets	$	2,376,230		$	2,388,735		$	(12,505	)	$	2,450,368		$	(74,138	)
Cash and cash equivalents		28,683			76,224			(47,541	)		52,142			(23,459	)
Investment securities		244,084			242,634			1,450			249,719			(5,635	)
Loans held for sale		61,239			24,441			36,798			25,716			35,523
Gross loans		1,900,660			1,905,199			(4,539	)		1,985,146			(84,486	)
Allowance for credit losses		20,484			20,685			(201	)		21,294			(810	)
Interest earning assets		2,219,504			2,234,258			(14,754	)		2,277,512			(58,008	)
Goodwill		9,848			9,848			–			9,848			–
Core deposit intangibles		316			357			(41	)		398			(82	)
Loan servicing rights		2,744			2,661			83			2,754			(10	)
Noninterest-bearing deposits		185,252			183,239			2,013			191,528			(6,276	)
Interest-bearing deposits (customer)		1,207,159			1,212,527			(5,368	)		1,180,196			26,963
Interest-bearing deposits (brokered)		396,770			437,008			(40,238	)		509,157			(112,387	)
Federal Home Loan Bank borrowings		325,310			295,000			30,310			301,640			23,670
Subordinated debt and other borrowings		48,682			48,642			40			48,603			79
Total liabilities		2,197,041			2,212,708			(15,667	)		2,273,253			(76,212	)
Accumulated other comprehensive loss		(19,385	)		(17,789	)		(1,596	)		(11,195	)		(8,190	)
Total stockholders’ equity		179,189			176,027			3,162			177,115			2,074

Book value per share	$	25.90		$	25.48			0.42		$	25.72			0.18
Tangible book value per share (non-GAAP) (1)		24.43			24.00			0.43			24.23			0.20

Non-performing assets:
Nonaccrual loans – SBA guaranteed	$	123		$	4,444		$	(4,321	)	$	5,036		$	(4,913	)
Nonaccrual loans		12,597			12,124			473			11,906			691
Total nonaccrual loans	$	12,720		$	16,568		$	(3,848	)	$	16,942		$	(4,222	)
Accruing loans past due 90 days		–			–			–			–			–
Total non-performing loans		12,720			16,568			(3,848	)		16,942			(4,222	)
Foreclosed real estate		444			444			–			444			–
Total non-performing assets	$	13,164		$	17,012		$	(3,848	)	$	17,386		$	(4,222	)

Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.08	%		1.09	%		(0.01	%)		1.07	%		0.01	%
Allowance for credit losses as a percent of nonperforming loans		161.04	%		124.85	%		36.19	%		125.69	%		35.35	%
Nonperforming loans as a percent of total gross loans		0.67	%		0.87	%		(0.20	%)		0.85	%		(0.18	%)
Nonperforming assets as a percent of total assets		0.55	%		0.71	%		(0.16	%)		0.71	%		(0.16	%)

^{(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.}


RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

	Three Months Ended						Six Months Ended
Net Income	March 31,						March 31,
(In thousands)		2025			2024			2025			2024

Net income attributable to the Company (non-GAAP)	$	5,313		$	3,561		$	9,367		$	4,481
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		–			–			1,869			–
Plus: Gain on sale of equity securities, net of tax effect		–			–			302			–
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		–			492			–			492
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect		–			583			–			583
Plus: Gain on sale of premises and equipment, net of tax effect		186			90			186			90
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			117			–			117
Plus: Distribution from equity investment, net of tax effect		–			85			–			85
Net income attributable to the Company (GAAP)	$	5,499		$	4,927		$	11,724		$	5,847

Net Income per Share, Diluted

Net income per share attributable to the Company, diluted (non-GAAP)	$	0.76		$	0.52		$	1.35		$	0.65
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		–			–			0.27			–
Plus: Gain on sale of equity securities, net of tax effect		–			–			0.03			–
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		–			0.07			–			0.07
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect		–			0.08			–			0.08
Plus: Gain on sale of premises and equipment, net of tax effect		0.03			0.01			0.03			0.01
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			0.02			–			0.02
Plus: Distribution from equity investment, net of tax effect		–			0.02			–			0.02
Net income per share, diluted (GAAP)	$	0.79		$	0.72		$	1.68		$	0.85

Core Bank Segment Net Income
(In thousands)

Net income attributable to the Core Bank (non-GAAP)	$	4,883		$	3,637		$	9,081		$	7,685
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		–			–			1,869			–
Plus: Gain on sale of equity securities, net of tax effect		–			–			302			–
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect		–			583			–			583
Plus: Gain on sale of premises and equipment, net of tax effect		186			90			186			90
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		–			117			–			117
Plus: Distribution from equity investment, net of tax effect		–			85			–			85
Net income attributable to the Core Bank (GAAP)	$	5,069		$	4,511		$	11,438		$	8,559

Core Bank Segment Net Income per Share, Diluted

Core Bank net income per share, diluted (non-GAAP)	$	0.70		$	0.53		$	1.31		$	1.12
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		–			–			0.27			–
Plus: Gain on sale of equity securities, net of tax effect		–			–			0.03			–
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect		–			0.08			–			0.08
Plus: Gain on sale of premises and equipment, net of tax effect		–			0.01			0.03			0.01
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		0.03			0.02			–			0.02
Plus: Distribution from equity investment, net of tax effect		–			0.02			–			0.02
Core Bank net income per share, diluted (GAAP)	$	0.73		$	0.66		$	1.64		$	1.25


RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):	Three Months Ended						Fiscal Year Ended
Efficiency Ratio	March 31,						March 31,
(In thousands)		2025			2024			2025			2024

Net interest income (GAAP)	$	15,991		$	14,338		$	31,453		$	28,451

Noninterest income (GAAP)		3,560			3,710			9,663			6,492

Noninterest expense (GAAP)		13,698			11,778			28,641			27,817

Efficiency ratio (GAAP)		70.06	%		65.26	%		69.66	%		79.61	%

Noninterest income (GAAP)	$	3,560		$	3,710		$	9,663		$	6,492
Less: Gain on sale of loans, home equity lines of credit		–			–			(2,492	)		–
Less: Gain on sale of equity securities		–			–			(403	)		–
Less: Gain on sale of premises and equipment		(248	)		(120	)		(248	)		(120	)
Less: Adjustment to MSR valuation allowance related to sale		–			(530	)		–			(530	)
Less: Distribution from equity investment		–			(113	)		–			(113	)
Noninterest income (Non-GAAP)		3,312			2,947			6,520			5,729

Noninterest expense (GAAP)	$	13,698		$	11,778		$	28,641		$	27,817
Plus: Adjustment to MSR valuation allowance related to sale		–			247			–			247
Plus: Decrease in loss contingency for SBA-guaranteed loans		–			656			–			656
Plus: Adjustment to previous data processing contract termination accrual		–			156			–			156
Noninterest expense (Non-GAAP)	$	13,698		$	12,837		$	28,641		$	28,876

Efficiency ratio (excluding nonrecurring items) (non-GAAP)		70.96	%		74.27	%		75.42	%		84.48	%


							QTD						FYTD
Tangible Book Value Per Share	March 31,			December 31,			Increase			September 30,			Increase
(In thousands, except share and per share data)		2025			2024		(Decrease)				2024		(Decrease)

Stockholders’ equity (GAAP)	$	179,189		$	176,027		$	3,162		$	177,115		$	2,074
Less: goodwill and core deposit intangibles		(10,164	)		(10,205	)		41			(10,246	)		82
Tangible stockholders’ equity (non-GAAP)	$	169,025		$	165,822		$	3,203		$	166,869		$	2,156

Outstanding common shares		6,919,136			6,909,173		$	9,963			6,887,106		$	32,030

Tangible book value per share (non-GAAP)	$	24.43		$	24.00		$	0.43		$	24.23		$	0.20

Book value per share (GAAP)	$	25.90		$	25.48		$	0.42		$	25.72		$	0.18


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except per share data)		2025			2024			2024			2024			2024

Total cash and cash equivalents	$	28,683		$	76,224		$	52,142		$	42,423		$	62,969
Total investment securities		244,084			242,634			249,719			238,785			240,142
Total loans held for sale		61,239			24,441			25,716			125,859			19,108
Total loans, net of allowance for credit losses		1,880,176			1,884,514			1,963,852			1,826,980			1,882,458
Loan servicing rights		2,744			2,661			2,754			2,860			3,028
Total assets		2,376,230			2,388,735			2,450,368			2,393,491			2,364,983

Customer deposits	$	1,392,411		$	1,395,766		$	1,371,724		$	1,312,997		$	1,239,271
Brokered deposits		396,770			437,008			509,157			399,151			548,175
Total deposits		1,789,181			1,832,774			1,880,881			1,712,148			1,787,446
Federal Home Loan Bank borrowings		325,310			295,000			301,640			425,000			315,000

Common stock and additional paid-in capital	$	28,650		$	28,382		$	27,725		$	27,592		$	27,475
Retained earnings – substantially restricted		182,918			178,526			173,337			170,688			167,648
Accumulated other comprehensive loss		(19,385	)		(17,789	)		(11,195	)		(17,415	)		(17,144	)
Unearned stock compensation		(862	)		(973	)		(901	)		(999	)		(1,096	)
Less treasury stock, at cost		(12,132	)		(12,119	)		(11,851	)		(11,866	)		(11,827	)
Total stockholders’ equity		179,189			176,027			177,115			168,000			165,056

Outstanding common shares		6,919,136			6,909,173			6,887,106			6,883,656			6,883,160


	Three Months Ended
Summarized Consolidated Statements of Income	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except per share data)		2025			2024			2024			2024			2024

Total interest income	$	30,823		$	32,449		$	32,223		$	31,094		$	30,016
Total interest expense		14,832			16,987			17,146			16,560			15,678
Net interest income		15,991			15,462			15,077			14,534			14,338
Provision (credit) for credit losses – loans		(357	)		(491	)		1,808			501			713
Provision (credit) for unfunded lending commitments		123			46			(262	)		158			(259	)
Provision (credit) for credit losses – securities		(1	)		(6	)		(86	)		84			23
Total provision (credit) for credit losses		(235	)		(451	)		1,460			743			477

Net interest income after provision for credit losses		16,226			15,913			13,617			13,791			13,861

Total noninterest income		3,560			6,103			2,842			3,196			3,710
Total noninterest expense		13,698			14,943			12,642			12,431			11,778
Income before income taxes		6,088			7,073			3,817			4,556			5,793
Income tax expense (benefit)		589			848			145			483			866
Net income		5,499			6,225			3,672			4,073			4,927


Net income per share, basic	$	0.80		$	0.91		$	0.54		$	0.60		$	0.72
Weighted average shares outstanding, basic		6,875,826			6,851,153			6,832,626			6,832,452			6,832,130

Net income per share, diluted	$	0.79		$	0.89		$	0.53		$	0.60		$	0.72
Weighted average shares outstanding, diluted		6,960,020			6,969,223			6,894,532			6,842,336			6,859,611


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2025			2024			2024			2024			2024

Service charges on deposit accounts	$	541		$	567		$	552		$	538		$	387
ATM and interchange fees		632			665			642			593			585
Net unrealized gain on equity securities		47			78			28			419			6
Net gain on equity securities		–			403			–			–			–
Net gain on sales of loans, Small Business Administration		1,078			711			647			581			951
Net gain on sales of loans, home equity lines of credit		–			2,492			–			–			–
Mortgage banking income		104			78			6			49			53
Increase in cash surrender value of life insurance		380			361			363			353			333
Gain on life insurance		–			108			–			–			–
Commission income		255			210			294			220			220
Real estate lease income		122			121			122			154			115
Net gain (loss) on premises and equipment		–			45			(4	)		–			120
Other income		401			264			192			289			940
Total noninterest income	$	3,560		$	6,103		$	2,842		$	3,196		$	3,710


	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Consolidated Performance Ratios (Annualized)		2025			2024			2024			2024			2024

Return on average assets		0.93	%		1.02	%		0.61	%		0.69	%		0.92	%
Return on average equity		12.24	%		14.07	%		8.52	%		9.86	%		13.06	%
Return on average common stockholders’ equity		12.34	%		14.07	%		8.52	%		9.86	%		13.06	%
Net interest margin (tax equivalent basis)		2.93	%		2.75	%		2.72	%		2.67	%		2.66	%
Efficiency ratio		70.06	%		69.29	%		70.55	%		70.11	%		65.26	%


	As of or for the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Consolidated Asset Quality Ratios		2025			2024			2024			2024			2024

Nonperforming loans as a percentage of total loans		0.67	%		0.87	%		0.85	%		0.91	%		0.82	%
Nonperforming assets as a percentage of total assets		0.55	%		0.71	%		0.71	%		0.72	%		0.68	%
Allowance for credit losses as a percentage of total loans		1.08	%		1.09	%		1.07	%		1.07	%		1.02	%
Allowance for credit losses as a percentage of nonperforming loans		161.04	%		124.85	%		125.69	%		118.12	%		124.01	%
Net charge-offs to average outstanding loans		-0.01	%		0.01	%		0.02	%		0.01	%		0.01	%


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2025			2024			2024			2024			2024

Core Banking Segment:
Net interest income	$	14,259		$	13,756		$	14,083		$	13,590		$	13,469
Provision (credit) for credit losses – loans		(540	)		(745	)		1,339			320			909
Provision (credit) for unfunded lending commitments		35			(75	)		78			64			(259	)
Provision (credit) for credit losses – securities		(1	)		(7	)		(86	)		84			23
Net interest income after provision (credit) for credit losses		14,765			14,583			12,752			13,122			12,796
Noninterest income		2,242			5,253			2,042			2,474			2,537
Noninterest expense		11,486			12,574			10,400			10,192			10,093
Income before income taxes		5,521			7,262			4,394			5,404			5,240
Income tax expense		452			893			301			689			729
Net income	$	5,069		$	6,369		$	4,093		$	4,715		$	4,511

SBA Lending Segment (Q2):
Net interest income	$	1,732		$	1,706		$	994		$	944		$	869
Provision (credit) for credit losses – loans		183			255			469			181			(196	)
Provision (credit) for unfunded lending commitments		88			121			(340	)		94			–
Net interest income after provision for credit losses		1,461			1,330			865			669			1,065
Noninterest income		1,318			850			800			722			1,173
Noninterest expense		2,212			2,369			2,242			2,239			1,685
Income (loss) before income taxes		567			(189	)		(577	)		(848	)		553
Income tax expense (benefit)		137			(45	)		(156	)		(206	)		137
Net income (loss)	$	430		$	(144	)	$	(421	)	$	(642	)	$	416


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except percentage data)		2025			2024			2024			2024			2024

Net Income (Loss) Per Share by Segment
Net income per share, basic – Core Banking	$	0.74		$	0.93		$	0.60		$	0.69		$	0.66
Net income (loss) per share, basic – SBA Lending (Q2)		0.06			(0.02	)		(0.06	)		(0.09	)		0.06
Total net income (loss) per share, basic	$	0.80		$	0.91		$	0.54		$	0.60		$	0.72

Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted – Core Banking	$	0.73		$	0.91		$	0.59		$	0.69		$	0.66
Net income (loss) per share, diluted – SBA Lending (Q2)		0.06			(0.02	)		(0.06	)		(0.09	)		0.06
Total net income (loss) per share, diluted	$	0.79		$	0.89		$	0.53		$	0.60		$	0.72

Return on Average Assets by Segment (annualized) (3)
Core Banking		0.90	%		1.09	%		0.71	%		0.83	%		0.80	%
SBA Lending		1.58	%		(0.55	%)		(1.71	%)		(2.91	%)		1.81	%

Efficiency Ratio by Segment (annualized) (3)
Core Banking		69.61	%		66.15	%		64.50	%		63.45	%		63.06	%
SBA Lending		72.52	%		92.68	%		124.97	%		134.39	%		82.52	%


	Three Months Ended
Noninterest Expense Detail by Segment	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2025			2024			2024			2024			2024

Core Banking Segment:
Compensation	$	6,637		$	7,245		$	5,400		$	5,587		$	5,656
Occupancy		1,648			1,577			1,554			1,573			1,615
Advertising		429			338			399			253			205
Other		2,772			3,414			3,047			2,779			2,617
Total Noninterest Expense	$	11,486		$	12,574		$	10,400		$	10,192		$	10,093

SBA Lending Segment (Q2):
Compensation	$	1,892		$	1,931		$	1,854		$	1,893		$	1,933
Occupancy		50			59			55			51			58
Advertising		10			14			17			12			7
Other		260			365			316			283			(313	)
Total Noninterest Expense	$	2,212		$	2,369		$	2,242		$	2,239		$	1,685


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
SBA Lending (Q2) Data	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands, except percentage data)		2025			2024			2024			2024			2024

Final funded loans guaranteed portion sold, SBA	$	15,716		$	10,785		$	10,880		$	7,515		$	15,144

Gross gain on sales of loans, SBA	$	1,508		$	1,141		$	1,029		$	811		$	1,443
Weighted average gross gain on sales of loans, SBA		9.60	%		10.58	%		9.46	%		10.79	%		9.53	%

Net gain on sales of loans, SBA (2)	$	1,078		$	711		$	647		$	581		$	951
Weighted average net gain on sales of loans, SBA		6.86	%		6.59	%		5.95	%		7.73	%		6.28	%


^{(2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.}


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2025			2024			2024			2024			2024
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	11,851		$	21,102		$	16,841		$	26,100		$	24,587
Loans		1,946,338			2,010,082			1,988,997			1,943,716			1,914,609
Investment securities – taxable		102,744			101,960			99,834			101,350			102,699
Investment securities – nontaxable		161,579			160,929			158,917			157,991			157,960
FRB and FHLB stock		24,986			24,986			24,986			24,986			24,986
Total interest-earning assets	$	2,247,498		$	2,319,059		$	2,289,575		$	2,254,143		$	2,224,841

Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	168		$	210		$	209		$	324		$	261
Loans		27,998			29,617			29,450			28,155			27,133
Investment securities – taxable		921			914			910			918			923
Investment securities – nontaxable		1,719			1,715			1,685			1,665			1,662
FRB and FHLB stock		511			493			471			519			499
Total interest income (tax equivalent basis)	$	31,317		$	32,949		$	32,725		$	31,581		$	30,478

Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		5.67	%		3.98	%		4.96	%		4.97	%		4.25	%
Loans		5.75	%		5.89	%		5.92	%		5.79	%		5.67	%
Investment securities – taxable		3.59	%		3.59	%		3.65	%		3.62	%		3.59	%
Investment securities – nontaxable		4.26	%		4.26	%		4.24	%		4.22	%		4.21	%
FRB and FHLB stock		8.18	%		7.89	%		7.54	%		8.31	%		7.99	%
Total interest-earning assets		5.57	%		5.68	%		5.72	%		5.60	%		5.48	%

Interest-bearing liabilities
Interest-bearing deposits	$	1,653,058		$	1,671,156		$	1,563,258		$	1,572,871		$	1,549,012
Federal Home Loan Bank borrowings		266,975			315,583			378,956			351,227			333,275
Subordinated debt and other borrowings		48,656			48,616			48,576			48,537			48,497
Total interest-bearing liabilities	$	1,968,689		$	2,035,355		$	1,990,790		$	1,972,635		$	1,930,784

Interest expense:
Interest-bearing deposits	$	12,069		$	13,606		$	12,825		$	12,740		$	12,546
Federal Home Loan Bank borrowings		2,001			2,617			3,521			3,021			2,298
Subordinated debt and other borrowings		762			764			800			799			833
Total interest expense	$	14,832		$	16,987		$	17,146		$	16,560		$	15,677

Weighted average cost (annualized):
Interest-bearing deposits		2.92	%		3.26	%		3.28	%		3.24	%		3.24	%
Federal Home Loan Bank borrowings		3.00	%		3.32	%		3.72	%		3.44	%		2.76	%
Subordinated debt and other borrowings		6.26	%		6.29	%		6.59	%		6.58	%		6.87	%
Total interest-bearing liabilities		3.01	%		3.34	%		3.45	%		3.36	%		3.25	%

Net interest income (taxable equivalent basis)	$	16,485		$	15,962		$	15,579		$	15,021		$	14,801
Less: taxable equivalent adjustment		(494	)		(500	)		(502	)		(487	)		(463	)
Net interest income	$	15,991		$	15,462		$	15,077		$	14,534		$	14,338

Interest rate spread (tax equivalent basis, annualized)		2.56	%		2.34	%		2.27	%		2.24	%		2.23	%

Net interest margin (tax equivalent basis, annualized)		2.93	%		2.75	%		2.72	%		2.67	%		2.66	%

The MIL Network –

April 25, 2025

MIL-OSI Security: Federal Jury Convicts Five in Drug Trafficking Conspiracy that Used Semi-Trucks to Transport Liquid Meth from Mexico to Oklahoma

Source: Office of United States Attorneys

18 Now Convicted as Part of Drug Trafficking Organization Responsible for Approximately 16,000 Kilos of Methamphetamine with Estimated Street Value of $64,000,000

OKLAHOMA CITY – A federal jury has convicted JUAN HERNANDEZ, 49, a Mexican-national living in Oklahoma City, JESSICA MUNIZ, 32, of Oklahoma City, and DENIS LEAL GUTIERREZ, 59, CESAR AZAMAR, 52, and ADRIAN NARVAEZ, 58, of Texas, for their roles in a drug trafficking organization (DTO) that specialized in transporting liquid methamphetamine by semi-truck from Mexico, through Texas, to Oklahoma City, and laundering the subsequent drug proceeds, announced U.S. Attorney Robert J. Troester.

“Coordinating their drug trafficking scheme across international borders and state lines, these defendants flooded our state with methamphetamine worth millions of dollars,” said U.S. Attorney Robert J. Troester. “I praise the exceptional work of the federal and state law enforcement, and the federal prosecutors, for untangling and disrupting this major drug operation and for stopping its flow of lethal drugs into our communities.”

“This multi-year collaboration among the FBI, DEA, IRS, Oklahoma City Police Department, and the U.S. Attorney’s Office has effectively dismantled a major drug trafficking organization that had been poisoning our community with deadly narcotics for years,” said FBI Oklahoma City Special Agent in Charge Doug Goodwater. “Together, we will continue to ensure those who participate in these dangerous criminal networks face the full weight of the American justice system.”

On December 17, 2024, a federal Grand Jury returned a 16-count Second Superseding Indictment, charging the defendants for their respective roles in the DTO. The Second Superseding Indictment charged Gutierrez, Azamar, and Narvaez with drug conspiracy, Muniz with money laundering conspiracy, two counts of domestic money laundering, and five counts of international money laundering, and Hernandez with money laundering conspiracy, three counts of domestic money laundering, and three counts of international money laundering.

On April 18, 2025, following a nine-day trial, a federal jury convicted the defendants on all counts.

According to evidence presented at trial, the defendants and other co-conspirators worked with high-ranking members of a Mexico-based DTO to import liquid methamphetamine into the U.S. hidden in the gas tanks of semi-trucks. Gutierrez’s trucking company, DGC Express Co., had been responsible for transporting shipments of liquid methamphetamine to Oklahoma as far back as February 2021. Another trucking company owned by Gutierrez, Dare Express Co., assumed responsibility for transporting the liquid methamphetamine to Oklahoma and Georgia starting in at least May of 2023. Evidence at trial further showed that Azamar was responsible for facilitating the transfer of the liquid methamphetamine from the Mexico-based semi-truck into the Dare Express semi-truck, which first occurred at a property rented by Gutierrez in Alamo, Texas, and later at the main business location of Dare Express in Edinburg, Texas. The Dare Express semi-truck used throughout 2023 to deliver liquid methamphetamine to Oklahoma and Georgia was registered under Narvaez’s name, and both Gutierrez and Narvaez instructed the truck drivers to deliver this liquid methamphetamine to Oklahoma and elsewhere.

At trial, evidence also established that law enforcement seized significant amounts of methamphetamine during the investigation, including:

907 kilograms on March 3, 2021, in Tecumseh, Oklahoma;
92 kilograms on September 6, 2023, in Oklahoma City, Oklahoma;
615 kilograms on December 8, 2023, in Wellston, Oklahoma;
42 kilograms on April 1, 2024, in Tecumseh, Oklahoma; and
86 kilograms on April 2, 2024, in Newalla, Oklahoma.

There was also evidence presented at trial about the DTO’s money laundering activities. A high-ranking member of this DTO in Mexico directed family members in Oklahoma, specifically his brother, Hernandez, and his niece, Muniz, to launder drug proceeds on his behalf. Testimony and other evidence, including court documents, CashApp records, international wire remitter service records, and records from the Federal Bureau of Prisons and Oklahoma Department of Corrections, also established that this DTO supplied Oklahoma prison gangs with methamphetamine, specifically the Irish Mob Gang, the Universal Aryan Brotherhood, and the Sureños. These gang members or their associates then sent payments for methamphetamine disguised as CashApp payments to Hernandez and Muniz, who then wired the money to close associates of the DTO’s head in Mexico.

At sentencing, Gutierrez, Azamar, and Narvaez each face up to life in federal prison and a fine of up to $10,000,000. Following their convictions for money laundering conspiracy, domestic money laundering, and international money laundering, Hernandez and Muniz face up to 20 years in federal prison and fines of up to $500,000 per charge.

As part of the overall investigation and prosecution of this DTO, two additional defendants have previously been sentenced and 11 additional codefendants have already pleaded guilty for their roles in the conspiracy. In total, law enforcement has attributed responsibility to this DTO for bringing approximately 16,000 kilograms of methamphetamine into the U.S. from Mexico at an estimated street value of $64,000,000.

In November 2024:

EVER ALONSO PANDO, 47, of Oklahoma City, was sentenced to serve 96 months in federal prison, and three years of supervised release, for two counts of maintaining a drug-involved premises, and
HECTOR REYES, 43, of Oklahoma City, was sentenced to serve 90 months in federal prison, followed by three years of supervised release, for possessing 50 grams or more of methamphetamine with intent to distribute.

The remaining defendants have pleaded guilty as follows:

ADAN GARCIA MIRANDA, 29, of Texas, pleaded guilty to conspiring to possess 50 grams or more of methamphetamine with intent to distribute. At sentencing, Miranda faces up to 40 years in prison, and a fine of up to $5,000,000;
JORGE RAUL VEGA GARCIA, 30, of Mexico, pleaded guilty to possession of 500 grams or more of methamphetamine with intent to distribute. At sentencing, Garcia faces up to life in federal prison, and a fine of up to $10,000,000;
LUIS ALBERTO ROJAS PRECIADO, 28, of Illinois, pleaded guilty to conspiring to possess 500 grams or more of methamphetamine with intent to distribute. At sentencing, Preciado faces up to life in federal prison, and a fine of up to $10,000,000;
JOSE ALFREDO EQUIHUA, 39, of Mexico, pleaded guilty to conspiring to possess 500 grams or more of methamphetamine with intent to distribute. At sentencing, Equihua faces up to life in federal prison, and a fine of up to $10,000,000;
EDGAR RODRIGUEZ ONTIVEROS, 32, of Mexico, pleaded guilty to conspiring to possess 500 grams or more of methamphetamine with intent to distribute. At sentencing, Ontiveros faces up to life in federal prison, and a fine of up to $10,000,000;
ADRIAN PEREZ, 39, of Oklahoma City, pleaded guilty to conspiring to possess 500 grams or more of methamphetamine with intent to distribute and being a felon in possession of a firearm. Public record shows that Perez has previous felony convictions that include being a felon in possession of a firearm in Oklahoma County District Court case number CF-2022-4831 and using a vehicle to facilitate the intentional discharge of a firearm in Oklahoma County District Court case number CF-2003-1656. At sentencing, Perez faces up to life in federal prison, and a fine of up to $10,250,000;
PHILLIP RAY HOWARD, 53, of Newalla, Oklahoma, pleaded guilty to conspiring to possess 50 grams or more of methamphetamine with intent to distribute and being a felon in possession of a firearm. Public record shows that Howard has previous felony convictions that include possession of cocaine with intent to distribute in Oklahoma County District Court case number CF-2005-878. At sentencing, Howard faces up to 40 years in prison for the conspiracy charge, 15 years in prison for the firearm possession charge, and fines of up to $5,250,000;
RAY DAVID LARA, JR., 44, of Oklahoma City, pleaded guilty to possession of 500 grams or more of methamphetamine with intent to distribute. At sentencing, Perez faces up to life in federal prison and a fine of up to $10,250,000;
HERIBERTO DONAN OCHOA, 33, of Mexico, pleaded guilty to possession of 500 grams or more of methamphetamine with intent to distribute. At sentencing, Ochoa faces up to life in federal prison, and a fine of up to $10,000,000;
BRAULIO PADILLA, 50, of Oklahoma City, pleaded guilty to conspiring to possess 500 grams or more of methamphetamine with intent to distribute and being a felon in possession of a firearm. Public record reflects that Howard has several felony convictions, including for possession of a controlled dangerous substance in the presence of a child under 12 and possession of methamphetamine with intent to distribute in Oklahoma County District Court case numbers CF-2010-4880 and CF-2019-155, respectively. At sentencing, Padilla faces up to life in federal prison, and a fine of up to $10,250,000; and
MICHAEL J. ESTRADA, 36, of Chicago, pleaded guilty to possession of 500 grams or more of methamphetamine with intent to distribute. At sentencing, Estrada faces up to life in federal prison, and a fine of up to $10,000,000.

This case is the result of an investigation by the FBI Oklahoma City Field Office, with assistance from the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Oklahoma City Police Department. This case is also 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 Force (OCDETF) and Project Safe Neighborhood (PSN).

Reference is made to public filings for additional information.

MIL Security OSI –

April 25, 2025

MIL-OSI Security: Bank General Counsel Sentenced to 4 Years in Prison for $7.4 Million Embezzlement Scheme

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that JAMES BLOSE, 56, of Fairfield, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 48 months of imprisonment, followed by three years of supervised release, for offenses stemming from a decade-long embezzlement scheme at banks where he served as General Counsel and held other high-ranking positions.

According to court documents and statements made in court, from approximately 2013 to January 2022, Blose was an attorney and held high-ranking positions, including General Counsel, at Hudson Valley Bank and Sterling National Bank. From approximately January 2022, when Webster Bank acquired Sterling National Bank, until February 2023, Blose served as Executive Vice President and General Counsel and Corporate Secretary at Webster Bank.

From approximately 2013 until Webster Bank discovered his scheme and his employment was terminated in February 2023, Blose defrauded his employers (“The Bank”) in various ways. In certain commercial loan transactions where The Bank was the lender, Blose fraudulently retained for himself portions of closing costs, including legal fees. In certain real estate transactions in which The Bank was the seller, Blose retained portions of the sale proceeds for himself. For some of the real estate transactions, Blose created false documents in order to hide his theft from The Bank. Blose also stole from The Bank in other ways.

As part of the scheme, Blose used his attorney trust accounts to make personal expenditures, and to transfer funds to accounts in the names of business entities he created and controlled, and then used those funds for his personal benefit. Through this scheme, Blose stole approximately $7.4 million from his employers, and used the stolen funds to purchase a vacation property on Kiawah Island in South Carolina, for construction of his Connecticut home, and for luxury vehicles, jewelry, private jets charters, multiple country club memberships, and other expenses.

Judge Chatigny will determine restitution after additional court proceedings.

On December 20, 2024, Blose pleaded guilty to one count of bank fraud and one count of engaging in illegal monetary transactions.

Blose, who is released on a $250,000 bond, is required to report to prison on June 23

This investigation was conducted by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General. Financial crimes investigators from Webster Bank assisted the investigation.

This case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

MIL Security OSI –

April 25, 2025

MIL-OSI USA: Congressman Don Davis Introduces Bill to Ensure U.S. Coast Guard Veterans Receive Earned Benefits

Source: US Congressman Don Davis (NC-01)

WASHINGTON, D.C. —U.S. Representative Don Davis (D-NC) and U.S. Representative Don Bacon (R-NE) introduced H.R. 2973, the Coast Guard Combat-Injured Tax Fairness Act, which ensures U.S. Coast Guard veterans receive the full benefits they earned through their service. The legislation would close a loophole in an existing law that failed to provide U.S. Coast Guard servicemembers with the same tax break afforded to other active duty personnel.

“It is essential that we prioritize the well-being of our U.S. Coast Guard combat-injured veterans, closing this loophole and ensuring they receive full benefits,” said Congressman Don Davis. “We must not stop advocating passionately for our U.S. Coast Guard veterans, who have devoted their lives to serving our country. Together, we must work to ensure no veteran is left behind.”

“In 2016, the Combat-Injured Veterans Tax Fairness Act returned taxes that were improperly withheld from combat-injured veterans of the Army, Navy, Air Force, and Marine Corps. However, Coast Guard personnel injured while serving in combat were not included in that legislation,” said Congressman Bacon. “The Coast Guard Combat-Injured Tax Fairness Act would ensure that combat-injured Coast Guard veterans receive their full benefits as combat-injured veterans in their sister services and will prevent similar oversight in the future.”

Without H.R. 2973 Coast Guard veterans are not able to access the same tax refund on disability severance payments.

In 2018, the U.S. Department of Defense and Internal Revenue Service (IRS) estimated that there were 130,000 non-U.S. Coast Guard veterans eligible for an estimated $280 million in tax refunds for disability severance payments.

As of 2023, there are an estimated 4,860 U.S. Coast Guard veterans with service-connected disabilities, who may be eligible for an estimated $11 million in refunds.

However, many of the veterans had taxes withheld. The Combat-Injured Veterans Tax Fairness Act of 2016 remedies that. The law directed the U.S. Secretary of Defense to identify disability severance payments paid after Jan. 17, 1991, that were included as taxable income. The 2016 law required the U.S. Secretary of Defense to notify servicemembers about their eligibility for tax refunds under that law, but it left out ex-U.S. Coast Guard personnel. Therefore, H.R. 2973 expands the tax refund eligibility to former members of the Coast Guard by closing a loophole that made them ineligible for such benefits.

The deadline to file for the refund is one year from the date of the U.S. Defense Department notice, or three years after the due date for filing the original return for the year the disability severance payment was made, or two years after the tax was paid for the year the disability severance payment was made, according to the IRS.

Congressman Don Davis serves as the vice ranking member of the House Armed Services Committee and sits on the Subcommittees on Tactical Air and Land Forces and Readiness. He graduated from the U.S. Air Force Academy in 1994 and is a veteran of the U.S. Air Force.

MIL OSI USA News –

April 25, 2025

MIL-OSI USA: Congressman Don Davis Remarks at Press Conference on First 100 Days of the 119th Congress

Source: US Congressman Don Davis (NC-01)

ROCKY MOUNT, N.C. — Congressman Don Davis delivered the following remarks at his press conference on the first 100 days of the 119th Congress:

Hi, everybody! It is always great to be back home, in eastern North Carolina. I have worked to share the stories, concerns, and issues impacting eastern North Carolina families. Our district now spans 22 incredible counties, from the coastlines of Currituck and Camden counties through the farmland of Lenoir and Wayne counties to the heart of Oxford and everywhere between. My vision for NC-01 is: “We must meet our constituents where they are, ensuring they are seen and heard in Washington, D.C., to make life better for all families and provide hope and assurance they are not forgotten.” We work to achieve this daily.

We’ve opened three new offices: 1. Rocky Mount, 2. Goldsboro, and 3. Elizabeth City. We held listening sessions in Camden, Currituck, Granville, Wayne, and Lenoir counties. Due to an increased interest in town halls, we hosted a telephone town hall with nearly 13,000 participants. So far this year, we helped close more than 240 constituent cases and returned over $821,000 to eastern North Carolina families, cutting through bureaucracy to return money directly to our neighbors. Our District Outreach Team has made over 156 visits to meet with constituents across the district, showing up, listening, attending events and meetings, and responding to issues.

During the 119th Congress, 11,750 constituents have reached out to the office. In comparison, during the 118th Congress, 8,745 constituents reached out to the office through April 14. The top three campaigns during the 119th Congress have been: 1) Protect Social Security, 2) Oppose the Department of Government Efficiency (DOGE) and Elon Musk, and 3) Support the Ensuring Pathways to Innovative Cures (EPIC) Act.

I have introduced 14 bills in the 119th Congress, including:

H.R. 1060, Modern Authentication of Pharmaceuticals (MAP) Act of 2025: The first bill we introduced was the Modern Authentication of Pharmaceuticals Act, legislation that seeks to secure the United States drug supply chain and close vulnerabilities that allow counterfeit controlled substances, including lethal fentanyl, into our communities;
H.R. 1244, Reducing Drug Prices for Seniors Act, legislation that reduces out-of-pocket expenses for Medicare patients by calculating the coinsurance cost at the pharmacy counter based on the drug’s net, or actual price, rather than its list price;
H.R. 1298, Veterans Jobs Opportunity Act, legislation that sets a new business-related tax credit for the start-up expenses of a veteran-owned small business in an underserved community;
H.R. 1363, Honor and Remember Flag Recognition Act of 2025, legislation that designates the Honor and Remember Flag, created by Honor and Remember, Inc., as a national symbol to honor service members who died in the line of duty;
H.R. 1377, Sarah Keys Evans Congressional Gold Medal Act in recognition of her achievements relating to the desegregation of passengers on interstate buses in the 1950s. Before there was Rosa Parks, there was Sara Keys Evans;
H.R. 1672, Maintaining New Investments in New Innovation (MINI) Act ensures lifesaving genetic treatments remain accessible;
H.R. 1858, Flooding Prevention, Assessment, and Restoration Act would strengthen flood prevention measures and provide support for rural communities facing flood risks;
H.R. 1985, Promoting Precision Agriculture Act, ensuring our growers have access to the cutting-edge precision agriculture technologies and broadband services necessary to do what they do best — feed, fuel, and clothe the American people;
H.R. 2043, Agricultural Commodities Price Enhancement Act, legislation that increases the reference price for seed cotton, peanuts, corn, soybeans, and wheat;
H.R. 2109, Cybersecurity for Rural Water Systems Act, ensures our water systems that rural communities and farmers rely on have the necessary protections to successfully guard against cyber-attacks;
H.R. 2541, Nuclear Medicine Clarification Act of 2025, legislation that would close a loophole that currently allows patients to be unintentionally exposed to high levels of radiation without reporting or disclosure. The legislation would improve care and ensure transparency for patients and simplify federal rules coming from the Nuclear Regulatory Commission (NRC);
H.R. 2542, Old Drugs, New Cures Act, legislation to improve access to innovative, affordable medication and tackle health disparities in rural and low-income communities across America;
H.R. 2625, Veterans Employment Readiness Yield (VERY) Act, which updates outdated language. The VERY Act makes changes to let our disabled vets know that they are receiving the respect and dignity they have rightfully earned; and
H.R. 2707, Protecting American Families and Servicemembers from Anthrax Act, ensuring the U.S. Department of Defense and Department of Health and Human Services develop a long-term stockpiling strategy that leverages the Strategic National Stockpile to enhance national preparedness.

I am committed to:

Fighting for our farmers by advocating for a temporary pause on the Adverse Effective Wage Rate and pushing for a comprehensive Farm Bill that enhances commodity pricing. We also need continued support for agricultural assistance for farmers hurt by difficult times;
Protecting Seymour Johnson Air Force Base. We are working to protect Seymour Johnson Air Force Base, including two visits and annual defense priorities focusing on F-15EX procurement, Child Development Center upgrades, maintenance dollars for F-15E aircraft, and $41 million in Combat Arms Training & Maintenance funds;
Building our local economy, by creating good-paying jobs in shipbuilding with Newport News Shipyard and the Global TransPark, a critical hub for jobs, logistics, and innovation, while addressing local government infrastructure needs.We are also working to address our Interstate, broadband, and housing needs;
Enhancing our healthcare outcomes is vital. I support Martin County’s efforts to enhance its healthcare system and advocate for a new Health Sciences facility at Barton College by advocating for $10 million through Barton’s application to the Golden LEAF Foundation;
On border security, I will continue supporting a secure border and meaningful immigration reform that respects our values. I have visited the ICE facility that services eastern North Carolina in Alamance County Detention Center and traveled as part of an Armed Services Committee CODEL to Naval Station Guantanamo Bay to gain firsthand insight into the role these facilities play in our border security strategy. Next week, I will travel to Lumpkin, Georgia to tour a regional ICE facility;
I will be filing key legislation that addresses federal recognition for the Haliwa Saponi Indian Tribe, support for the Southeast Crescent Regional Commission, and tax fairness for combat-injured Coast Guard veterans.

Together, these efforts will contribute to a brighter future for our region. We’re not sitting on the sidelines. We are working hard every day on healthcare, agriculture, defense, and working families.

An early victory during the Trump Administration includes the decision by the Food and Drug Administration to formally withdraw and end the effort by the agency to consider a ban on menthol cigarettes and flavored cigars. As the Ranking Member of the Commodity Markets, Digital Assets, and Rural Development Subcommittee of the House Agriculture Committee, I am working on regulatory framework legislation for the crypto and digital assets industry that is a priority of the Administration.

I also know that people are currently nervous about the state of the country and the world.

Specific concerns include: 1. Helene and agriculture assistance, 2. education funding reductions, and 3. tariffs.

I voted in support of disaster assistance for Helene in the West and drought in the East. I am glad that economic assistance was included. But we are way short. We are a billion short for agricultural assistance alone.

I visited North Lenoir High School in Lenoir County just this morning, one of the four public school districts in North Carolina that no longer has access to COVID-19-related funding that they had been promised because the U.S. Department of Education terminated their ability to liquidate those federal dollars.

On Friday, I visited Halifax County Schools to discuss the same issue.

We are:

Sending a letter to the U.S. Department of Education Secretary Linda McMahon;
Seeking to schedule a meeting with the Secretary;
Reaching out to other North Carolina delegation members to consider a joint letter; and
Communicating our findings to the White House.

For tariffs, eastern North Carolina cannot afford to be collateral damage in a trade war. We need tough and targeted trade policies, but our policies must also protect jobs, lower input costs, and keep our communities strong.

Previously, I voted in support of the SAVE ACT. After speaking with North Carolina State Board of Election officials, I voted against it based on the concern that the bill cannot be implemented as drafted. While I support the intent of the SAVE Act that makes crystal clear only U.S. citizens should vote in elections, N.C. election officials have shared serious concerns about its implementation. The limited time for modernizing our information systems, uncertain taxpayer costs, and the need for clear standards to verify U.S. citizenship pose risks to administering federal elections. I remain committed to improving this bill and ensuring free and fair elections.

We are meeting residents where they are. We read “Pete the Cat and His Magic Sunglasses” at St. Stephens Daycare. Federal funds for early childhood education remain important. I visited International Paper at Manson, spoke with quilters in Warrenton, and held a meeting with the Global TransPark. This morning, I traveled to N. Lenoir High School to look at their roof.

I plan to visit Pine Gates Renewables, Freedom Industries, and the Boys and Girls Club of the Tar River Region later today. Over the course of the next week, I will attend the 60th Annual Haliwa Saponi Blooming of the Dogwood Powwow, visit Airbus and Collins Aerospace, Barton College, Davita Kidney Care in Wilson, and Wilson Community College.

I plan to meet with the Albemarle Area United Way, break ground at Elizabeth City State University for an aviation building, visit U.S. Coast Guard Elizabeth City, visit the Food Bank of Albemarle, and meet with the Perquimans County EMS director to discuss recovery efforts.

As this is Holy Week, I wish everyone a wonderful Easter. Meanwhile, we will keep looking for opportunities to work with the Administration. Tax filing deadline was extended to May 1 for federal and state for all NC residents due to Helene. I encourage residents to file their taxes or an extension. We will keep advocating for our families, our farmers, our veterans, our students, and the future we believe in. May God bless eastern North Carolina, and our nation.

MIL OSI USA News –

April 25, 2025

MIL-OSI USA News: Fact Sheet: President Donald J. Trump Strengthens Probationary Periods to Improve the Federal Service

Source: The White House

ENHANCING FEDERAL WORKFORCE ACCOUNTABILITY: Today, President Donald J. Trump signed an Executive Order strengthening probationary periods in the federal service.

The Order establishes a new Civil Service Rule XI to govern probationary and trial periods for federal employees, superseding existing civil service regulations that limited agency discretion in evaluating such employees.
Instead of these employees becoming tenured civil servants by default, Rule XI requires agencies to affirmatively certify that finalizing their appointment after their probationary or trial period concludes advances the public interest.
- This fulfills a longstanding Merit Systems Protection Board recommendation.
The Order mandates that agencies utilize probationary and trial periods (typically one year) to assess employees’ fitness and alignment with agency needs and the public interest.
It creates an individualized review process, requiring a designee of agency leadership to meet with probationary employees at least 60 days before their probationary period ends to discuss their performance and continued employment.
The Order allows the Office of Personnel Management (OPM) Director to establish an appeals process for probationary terminations in some circumstances.
The Order requires agencies to identify current probationary employees and designate evaluators within 15 days, ensuring accountability from the outset.

ENSURING A HIGH-QUALITY FEDERAL WORKFORCE: President Trump believes a meaningful probationary process is essential to maintaining a merit-based federal workforce that serves the American people.

Probationary periods are a critical part of the hiring process to confirm an employee’s ability to perform their duties, yet agencies have underutilized this tool, resulting in the indefinite retention of underperforming staff.
The Government Accountability Office has documented that agencies often fail to screen out unsuitable employees during their probationary period, contrary to congressional intent in the Civil Service Reform Act of 1978.
Existing OPM regulations have hindered agencies by imposing unnecessary obstacles to terminating probationary employees and failing to require certification that continued employment benefits the public interest.
A high-quality, efficient federal workforce, dedicated to the public interest and no larger than necessary, is vital to serving taxpayers.
Strengthening probationary periods ensures federal employees are held to high standards.

DRAINING THE SWAMP: The federal workforce must work for the American people, and thanks to President Trump, the federal bureaucracy is being held accountable.

Taxpayers will no longer be burdened by an oversized, unaccountable federal bureaucracy that fails to prioritize the public interest.
Last month, President Trump signed a Presidential Memorandum clarifying federal authority to take “suitability” actions against federal employees, ensuring accountability for bad conduct and preventing security risks both before and after appointment to federal service.
President Trump also signed the DOGE Workforce Optimization Executive Order to make the federal workforce more efficient and effective, significantly reducing the size of government.
This Executive Order builds on the President’s longstanding power to create Civil Service Rules to govern probationary periods in the federal government.

MIL OSI USA News –

April 25, 2025

MIL-OSI: Provident Financial Services, Inc. Announces First Quarter Earnings and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

ISELIN, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $64.0 million, or $0.49 per basic and diluted share for the three months ended March 31, 2025, compared to $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024 and $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024. Net income for the three months ended March 31, 2025 was negatively impacted by a $2.7 million write-down on a foreclosed property, partially offset by a $624,000 profit on fixed asset sales related to the consolidation of three branches. While there were no transaction costs related to our merger with Lakeland Bancorp, Inc. (“Lakeland”) for the 2025 period, these costs totaled $20.2 million for the three months ended December 31, 2024 and $2.2 million for the three months ended March 31, 2024, respectively.

Anthony J. Labozzetta, President and Chief Executive Officer commented, “With the integration of Lakeland behind us, we are starting to see the benefits of the transaction come to fruition. We are very pleased with our first quarter financial results and encouraged by the promising start to the year. Despite ongoing uncertainty in the markets, our core businesses, credit quality and risk management remain strong. Our team is focused on building the business, delivering exceptional customer service and creating value for all stakeholders while remaining agile in this rapidly changing economic and regulatory environment.”

Performance Highlights for the First Quarter of 2025

Adjusted for a one-time write-down on a foreclosed property in the current quarter, as well as transaction costs related to the merger with Lakeland in prior quarters, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity⁽¹⁾ were 1.11%, 10.13% and 16.15% for the quarter ended March 31, 2025, compared to 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity⁽²⁾ were 1.61%, 14.63% and 21.18% for the quarter ended March 31, 2025, compared to 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 11 of the earnings release.
The Company’s total commercial and industrial (“C&I”) loan portfolio increased $74.3 million, or 6.5% annualized, to $4.68 billion as of March 31, 2025, from $4.61 billion as of December 31, 2024. Additionally, the Company’s total commercial portfolio increased $150.0 million, or 3.8% annualized to $16.19 billion as of March 31, 2025, from $16.04 billion as of December 31, 2024.
The net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter, while the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased nine basis points from the trailing quarter to 2.94%. The average yield on total loans decreased four basis points to 5.95% for the quarter ended March 31, 2025, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 14 basis points to 2.11% for the quarter ended March 31, 2025.
The Company recorded a $325,000 provision for credit losses on loans for the quarter ended March 31, 2025, compared to a $7.8 million provision for the trailing quarter. The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our Current Expected Credit Loss (“CECL”) model. The allowance for credit losses as a percentage of loans decreased to 1.02% as of March 31, 2025, from 1.04% as of December 31, 2024.
Insurance Agency income increased $858,000 or 17.9%, versus the same period in 2024, while pre-tax Insurance Agency net income increased $544,000 or 23.3% versus the same period in 2024.
As of March 31, 2025, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion, with a weighted average interest rate of 6.31%.

Declaration of Quarterly Dividend

The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on May 30, 2025 to stockholders of record as of the close of business on May 16, 2025.

Results of Operations

Three months ended March 31, 2025 compared to the three months ended December 31, 2024

For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $48.5 million, or $0.37 per basic and diluted share, for the three months ended December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income was $181.7 million for the three months ended March 31, 2025 and the trailing quarter, despite there being two fewer calendar days in the first quarter of 2025, primarily due to favorable repricing of deposits.

The Company’s net interest margin increased six basis points to 3.34% for the quarter ended March 31, 2025, from 3.28% for the trailing quarter. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 decreased three basis points to 5.63%, compared to the trailing quarter. The weighted average cost of interest-bearing liabilities for the quarter ended March 31, 2025 decreased 13 basis points from the trailing quarter to 2.90%. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 decreased 17 basis points to 2.64%, compared to 2.81% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared to 2.25% for the trailing quarter. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.64% for the quarter ended December 31, 2024.

Provision for Credit Losses on Loans

For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a provision for credit losses of $7.8 million for the quarter ended December 31, 2024. The decrease in the provision for credit losses for the quarter was primarily attributable to the change in a qualitative factor indexed to the forecasted unemployment rate that resulted in a decrease in reserves required on pooled loans within our CECL model. For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $5.5 million, or an annualized nine basis points of average loans, for the trailing quarter.

Non-Interest Income and Expense

For the three months ended March 31, 2025, non-interest income totaled $27.0 million, an increase of $2.9 million, compared to the trailing quarter. Insurance agency income increased $2.4 million to $5.7 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to the receipt of contingent commissions and additional business in the current quarter. Additionally, other income increased $920,000 to $2.2 million for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions. Partially offsetting these increases to non-interest income, wealth management income decreased $327,000 to $7.3 million for the three months ended March 31, 2025, compared to the trailing quarter, mainly due to a decrease in the average market value of assets under management during the period, while BOLI income decreased $169,000 for the three months ended March 31, 2025, compared to the trailing quarter, primarily due to decreased equity valuations.

Non-interest expense totaled $116.3 million for the three months ended March 31, 2025, a decrease of $18.1 million, compared to $134.3 million for the trailing quarter. Merger-related expenses, which were completed at the end of 2024, decreased $20.2 million for the three months ended March 31, 2025, compared to the trailing quarter. Other operating expenses decreased $929,000 to $16.4 million for the three months ended March 31, 2025, compared to $17.4 million for the trailing quarter, largely due to a prior quarter $1.4 million charge for contingent litigation reserves, combined with decreases in professional service and insurance expenses, partially offset by a $2.7 million write-down on a foreclosed property. Partially offsetting these decreases in non-interest expense, compensation and benefits expense increased $2.4 million to $62.4 million for the three months ended March 31, 2025, compared to $59.9 million for the trailing quarter. The increase in compensation and benefit expense was primarily due to increases in salary expense related to company-wide annual merit increases and severance expense, partially offset by a decrease in stock-based compensation. Additionally, net occupancy expense increased $1.4 million to $13.9 million for the three months ended March 31, 2025, compared to the trailing quarter, largely due to seasonal increases in snow removal, utilities and other maintenance costs.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽¹⁾ totaled 1.92% for the quarter ended March 31, 2025, compared to 1.90% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽¹⁾ was 54.43% for the three months ended March 31, 2025, compared to 55.43% for the trailing quarter.

Income Tax Expense

For the three months ended March 31, 2025, the Company’s income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with income tax expense of $14.2 million with an effective tax rate of 22.6% for the trailing quarter. The increase in tax expense and the effective tax rate for the three months ended March 31, 2025, compared with the trailing quarter was largely due to an increase in taxable income and a discrete item related to stock-based compensation, combined with a prior quarter $4.2 million tax benefit related to the revaluation of certain deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

Three months ended March 31, 2025 compared to the three months ended March 31, 2024

For the three months ended March 31, 2025, net income was $64.0 million, or $0.49 per basic and diluted share, compared to net income of $32.1 million, or $0.43 per basic and diluted share, for the three months ended March 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $88.1 million to $181.7 million for the three months ended March 31, 2025, from $93.7 million for same period in 2024. The increase in net interest income was favorably impacted by the net assets added in the May 16, 2024 acquisition of Lakeland and related accretion of purchase accounting adjustments.

The Company’s net interest margin increased 47 basis points to 3.34% for the quarter ended March 31, 2025, from 2.87% for the same period last year. The weighted average yield on interest-earning assets for the quarter ended March 31, 2025 increased 57 basis points to 5.63%, compared to 5.06% for the quarter ended March 31, 2024. The weighted average cost of interest-bearing liabilities increased 10 basis points for the quarter ended March 31, 2025 to 2.90%, compared to 2.80% for the first quarter of 2024. The average cost of interest-bearing deposits for the quarter ended March 31, 2025 was 2.64%, compared to 2.60% for the same period last year. Average non-interest-bearing demand deposits increased $1.65 billion to $3.72 billion for the quarter ended March 31, 2025, compared to $2.07 billion for the quarter ended March 31, 2024. The average cost of total deposits, including non-interest-bearing deposits, was 2.11% for the quarter ended March 31, 2025, compared with 2.04% for the quarter ended March 31, 2024. The average cost of borrowed funds for the quarter ended March 31, 2025 was 3.76%, compared to 3.60% for the same period last year.

Provision for Credit Losses on Loans

For the quarter ended March 31, 2025, the Company recorded a $325,000 provision for credit losses on loans, compared with a $200,000 provision for credit losses on loans for the quarter ended March 31, 2024. The increase in the provision for credit losses was due to an increase in specific reserves on impaired credits. For the three months ended March 31, 2025, net charge-offs totaled $2.0 million, or an annualized four basis points of average loans, compared with net charge-offs of $971,000, or an annualized four basis points of average loans, for the quarter ended March 31, 2024.

Non-Interest Income and Expense

Non-interest income totaled $27.0 million for the quarter ended March 31, 2025, an increase of $6.2 million, compared to the same period in 2024. Fee income increased $3.7 million to $9.7 million for the three months ended March 31, 2025, compared to the prior year quarter, primarily due to increases in deposit fee income, debit card related fee income and commercial loan prepayment fees, resulting from the Lakeland merger. Other income increased $1.4 million to $2.2 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to an increase in profit on fixed asset sales, combined with an increase in net fees on loan-level interest rate swap transactions and an increase in gains on sales of mortgage loans. Insurance agency income increased $858,000 to $5.7 million for the three months ended March 31, 2025, compared to the quarter ended March 31, 2024, largely due to an increase in contingency income and business activity, while BOLI income increased $275,000 to $2.1 million for the three months ended March 31, 2025, compared to the prior year quarter, related to the addition of Lakeland’s BOLI, partially offset by a decrease in equity valuations.

For the three months ended March 31, 2025, non-interest expense totaled $116.3 million, an increase of $44.4 million, compared to the three months ended March 31, 2024. Compensation and benefits expense increased $22.3 million to $62.4 million for three months ended March 31, 2025, compared to $40.0 million for the same period in 2024. The increase was primarily due to the addition of Lakeland, combined with an increase in salary expense associated with Company-wide annual merit increases. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended March 31, 2024, compared to $705,000 for 2024, largely due to core deposit intangible amortization related to the addition of Lakeland. Other operating expense increased $6.1 million to $16.4 million for the three months ended March 31, 2025, compared to $10.3 million for the three months ended March 31, 2024, largely due to the addition of Lakeland and a $2.7 million write-down on a foreclosed property in the current quarter. Net occupancy expense increased $5.4 million to $13.9 million for the three months ended March 31, 2024, compared to the same period in 2024, primarily due to increased depreciation and maintenance expenses because of the addition of Lakeland. Data processing expense increased $2.8 million to $9.6 million for three months ended March 31, 2025, compared to $6.8 million for the same period in 2024. The increase in data processing expense was primarily due to increases in software service, telecommunication and core service expenses, due to the addition of Lakeland. Additionally, FDIC insurance expense increased $1.1 million to $3.4 million for the three months ended March 31, 2025, compared to the same period in 2024, primarily due to increases in the assessment rate and average assets, as a result of the addition of Lakeland. Partially offsetting these increases in non-interest expense, merger-related expenses, which completed at the end of 2024 decreased $2.2 million for the three months ended March 31, 2025, compared to the same period in 2024.

The Company’s annualized adjusted non-interest expense as a percentage of average assets⁽¹⁾ was 1.92% for the quarter ended March 31, 2025, compared to 1.99% for the same period in 2024. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)⁽¹⁾ was 54.43% for the three months ended March 31, 2025 compared to 60.82% for the same respective period in 2024.

Income Tax Expense

For the three months ended March 31, 2025, the Company’s income tax expense was $27.8 million with an effective tax rate of 30.3%, compared with $10.9 million with an effective tax rate of 25.3% for the three months ended March 31, 2024. The increase in tax expense for the three months ended March 31, 2025, compared with the same period last year, was largely the result of an increase in taxable income and an increase in state tax rates as a result of the May 2024 Lakeland merger, as well as a discrete item related to stock-based compensation. The increase in state tax rates is a result of the Company no longer receiving benefit of a reduced New Jersey state rate available for the Company’s REIT and New Jersey investment company subsidiaries. The state of New Jersey allows certain bank subsidiaries with assets under $15 billion to benefit from the lower rate, however due to the Lakeland merger in May of 2024, the $15 billion asset threshold was crossed and the increased New Jersey rate was applicable.

Asset Quality

The Company’s total non-performing loans as of March 31, 2025 were $103.2 million, or 0.54% of total loans, compared $72.1 million, or 0.39% of total loans as of December 31, 2024 and $35.5 million, or 0.35% of total loans as of March 31, 2024. The $31.2 million increase in non-performing loans as of March 31, 2025, compared to the trailing quarter, was primarily attributable to two loans: a $20.3 million commercial real estate loan secured by a mixed use property with a current loan-to value of 53% and an $11.5 million construction loan secured by a nearly complete warehouse facility with a current loan-to-value of 62%. These loans have no prior charge-off history and carry no specific reserve allocations. As of March 31, 2025, impaired loans totaled $86.1 million with related specific reserves of $7.9 million, compared with impaired loans totaling $55.4 million with related specific reserves of $7.5 million as of December 31, 2024. As of March 31, 2024, impaired loans totaled $40.1 million with related specific reserves of $8.2 million.

As of March 31, 2025, the Company’s allowance for credit losses related to the loan held for investment portfolio was 1.02% of total loans, compared to 1.04% and 0.98% as of December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses decreased $1.7 million to $191.8 million as of March 31, 2025, from $193.4 million as of December 31, 2024. The decrease in the allowance for credit losses on loans at March 31, 2025 compared to December 31, 2024 was due to net charge-offs of $2.0 million, partially offset by a $325,000 provision for credit losses.

The following table shows accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

	March 31, 2025			December 31, 2024			March 31, 2024
	Number of Loans	Principal Balance of Loans		Number of Loans	Principal Balance of Loans		Number of Loans	Principal Balance of Loans
	(Dollars in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial mortgage loans	8	$	13,696	7	$	8,538	3	$	5,052
Multi-family mortgage loans	1		7,433	—		—	4		12,069
Construction loans	—		—	—		—	—		—
Residential mortgage loans	27		6,905	22		6,388	11		3,568
Total mortgage loans	36		28,034	29		14,926	18		20,689
Commercial loans	37		13,472	23		4,248	11		4,493
Consumer loans	22		1,604	47		3,152	22		803
Total 30 to 59 days past due	95	$	43,110	99	$	22,326	51	$	25,985

60 to 89 days past due:
Commercial mortgage loans	2	$	196	4	$	3,954	3	$	1,148
Multi-family mortgage loans	—		—	—		—	—		—
Construction loans	—		—	—		—	—		—
Residential mortgage loans	18		5,009	17		5,049	6		804
Total mortgage loans	20		5,205	21		9,003	9		1,952
Commercial loans	15		3,743	9		2,377	3		332
Consumer loans	12		854	15		856	8		755
Total 60 to 89 days past due	47		9,802	45		12,236	20		3,039
Total accruing past due loans	142	$	52,912	144	$	34,562	71	$	29,024

Non-accrual:
Commercial mortgage loans	18	$	42,931	17	$	20,883	8	$	5,938
Multi-family mortgage loans	5		7,294	6		7,498	2		2,355
Construction loans	3		18,929	2		13,246	—		—
Residential mortgage loans	22		5,246	23		4,535	10		1,647
Total mortgage loans	48		74,400	48		46,162	20		9,940
Commercial loans	83		27,471	65		24,243	21		36,892
Consumer loans	19		1,352	23		1,656	11		760
Total non-accrual loans	150	$	103,223	136	$	72,061	52	$	47,592

Non-performing loans to total loans			0.54%			0.39%			0.44%
Allowance for loan losses to total non-performing loans			185.78%			268.43%			223.63%
Allowance for loan losses to total loans			1.02%			1.04%			0.98%

The increase in accruing past due loans versus the trailing quarter was primarily attributable to two loans: a $10.5 million commercial real estate loan which is expected to be fully resolved in the second quarter through the completion of a pending note sale and a $7.4 million commercial real estate loan that is in the process of refinancing with the Company.

As of March 31, 2025 and December 31, 2024, the Company held foreclosed assets of $6.8 million and $9.5 million, respectively. Foreclosed assets as of March 31, 2025 were comprised of commercial real estate. Total non-performing assets as of March 31, 2025 increased $28.4 million to $110.0 million, or 0.45% of total assets, from $81.5 million, or 0.34% of total assets as of December 31, 2024. During the three months ended March 31, 2025, there was a write-down of a foreclosed commercial property of $2.7 million based on a contracted sales price. The sale of this property is expected to close in the second quarter of 2025, reducing foreclosed assets by $5.8 million.

Balance Sheet Summary

Total assets as of March 31, 2025 were $24.22 billion, a $172.9 million increase from December 31, 2024. The increase in total assets was primarily due to a $132.0 million increase in total loans and a $110.5 million increase in total investments, partially offset by a decrease in intangible and other assets.

The Company’s loans held for investment portfolio totaled $18.79 billion as of March 31, 2025 and $18.66 billion as of December 31, 2024. The portfolio consisted of the following:

	March 31, 2025		December 31, 2024
	(Dollars in thousands)
Mortgage loans:
Commercial	$	7,295,651	$	7,228,078
Multi-family		3,458,190		3,382,933
Construction		756,356		823,503
Residential		1,994,404		2,010,637
Total mortgage loans		13,504,601		13,445,151
Commercial loans		4,682,902		4,608,600
Consumer loans		613,453		613,819
Total gross loans		18,800,956		18,667,570
Premiums on purchased loans		1,337		1,338
Net deferred fees and unearned discounts		(10,922)		(9,538)
Total loans	$	18,791,371	$	18,659,370

During the three months ended March 31, 2025, the loans held for investment portfolio had net increases of $75.3 million of multi-family loans, $74.3 million of commercial loans and $67.6 million of commercial mortgage loans, partially offset by net decreases of $67.1 million of construction loans and $16.2 million of residential mortgage loans. Total commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 86.1% of the loan portfolio as of March 31, 2025, compared to 85.9% as of December 31, 2024.

For the three months ended March 31, 2025, loan funding, including advances on lines of credit, totaled $1.93 billion, compared with $622.7 million for the same period in 2024.

As of March 31, 2025, the Company’s unfunded loan commitments totaled $2.88 billion, including commitments of $1.75 billion in commercial loans, $517.7 million in construction loans and $141.4 million in commercial mortgage loans. Unfunded loan commitments as of December 31, 2024 and March 31, 2024 were $2.73 billion and $1.97 billion, respectively.

The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $2.77 billion as of March 31, 2025, compared to $1.79 billion and $1.08 billion as of December 31, 2024 and March 31, 2024, respectively.

Total investment securities were $3.34 billion as of March 31, 2025, a $110.5 million increase from December 31, 2024. This increase was primarily due to purchases of mortgage-backed and municipal securities and a decrease in unrealized losses on available for sale debt securities.

Total deposits decreased $175.0 million during the three months ended March 31, 2025, to $18.45 billion. Total savings and demand deposit accounts decreased $172.5 million to $15.28 billion as of March 31, 2025, while total time deposits decreased $2.4 million to $3.17 billion as of March 31, 2025. The decrease in savings and demand deposits consisted of a $142.8 million decrease in interest bearing demand deposits, a $22.0 million decrease in money market deposits and a $8.7 million decrease in savings deposits, partially offset by a $1.1 million increase in non-interest-bearing demand deposits. Within total savings and demand deposits, total municipal deposits decreased $130.8 million to $3.38 billion as of March 31, 2025, mainly due to seasonal outflows. The decrease in time deposits consisted of a $78.6 million decrease in retail time deposits, partially offset by a $76.2 million increase in brokered time deposits.

Borrowed funds increased $315.8 million during the three months ended March 31, 2025, to $2.34 billion. The increase in borrowings was largely due to asset funding requirements. Borrowed funds represented 9.6% of total assets as of March 31, 2025, an increase from 8.4% as of December 31, 2024.

Stockholders’ equity increased $57.6 million during the three months ended March 31, 2025, to $2.66 billion, primarily due to net income earned for the period and a decrease in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the three months ended March 31, 2025, common stock repurchases totaled 99,541 shares at an average cost of $18.19 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. As of March 31, 2025, approximately 873,000 shares remained eligible for repurchase under the current authorization. Book value per share and tangible book value per share⁽¹⁾ as of March 31, 2025 were $20.35 and $14.15, respectively, compared with $19.93 and $13.66, respectively, as of December 31, 2024.

About the Company

Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “Commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

Post Earnings Conference Call

Representatives of the Company will hold a conference call for investors on Friday, April 25, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter ended March 31, 2025. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

Forward Looking Statements

Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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,” “project,” “intend,” “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 set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, and the impact of a potential shutdown of the federal government.

The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises 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 assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

Footnotes

⁽¹⁾ Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.


PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Financial Highlights
(Dollars in Thousands, except share data) (Unaudited)

	As of or for the Three months ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Statement of Income
Net interest income	$	181,728	$	181,737	$	93,670
Provision for credit losses		638		8,880		186
Non-interest income		27,030		24,175		20,807
Non-interest expense		116,267		134,323		71,321
Income before income tax expense		91,853		62,709		42,970
Net income		64,028		48,524		32,082
Diluted earnings per share	$	0.49	$	0.37	$	0.43
Interest rate spread		2.73%		2.63%		2.26%
Net interest margin		3.34%		3.28%		2.87%

Profitability
Annualized return on average assets		1.08%		0.81%		0.92%
Annualized adjusted return on average assets ⁽¹⁾		1.11%		1.05%		0.97%
Annualized return on average equity		9.84%		7.36%		7.60%
Annualized adjusted return on average equity ⁽¹⁾		10.13%		9.53%		8.04%
Annualized return on average tangible equity ⁽¹⁾		15.73%		12.21%		10.40%
Annualized adjusted return on average tangible equity ⁽¹⁾		16.15%		15.39%		11.16%
Annualized adjusted non-interest expense to average assets ⁽³⁾		1.92%		1.90%		1.99%
Efficiency ratio ⁽⁴⁾		54.43%		55.43%		60.82%

Asset Quality
Non-accrual loans	$	103,223	$	72,061	$	47,592
90+ and still accruing		—		—		—
Non-performing loans		103,223		72,061		47,592
Foreclosed assets		6,755		9,473		11,324
Non-performing assets		109,978		81,534		58,916
Non-performing loans to total loans		0.54%		0.39%		0.44%
Non-performing assets to total assets		0.45%		0.34%		0.42%
Allowance for loan losses	$	191,770	$	193,432	$	106,429
Allowance for loan losses to total non-performing loans		185.78%		268.43%		223.63%
Allowance for loan losses to total loans		1.02%		1.04%		0.98%
Net loan charge-offs	$	1,987	$	5,493	$	971
Annualized net loan charge-offs to average total loans		0.04%		0.12%		0.04%

Average Balance Sheet Data
Assets	$	24,049,318	$	23,908,514	$	14,093,767
Loans, net		18,590,877		18,487,443		10,668,992
Earning assets		21,946,053		21,760,458		12,862,910
Core deposits		15,497,343		15,581,608		9,129,244
Borrowings		1,918,069		1,711,806		1,940,981
Interest-bearing liabilities		17,297,892		17,093,382		10,074,106
Stockholders’ equity		2,638,361		2,624,019		1,698,170
Average yield on interest-earning assets		5.63%		5.66%		5.06%
Average cost of interest-bearing liabilities		2.90%		3.03%		2.80%

Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
(Dollars in Thousands, except share data)

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.


(1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity
	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Net Income	$	64,028	$	48,524	$	32,082
Write-down on ORE property		2,690		—		—
Merger-related transaction costs		—		20,184		2,202
Less: income tax expense		(809)		(5,819)		(342)
Annualized adjusted net income	$	65,909	$	62,889	$	33,942
Less: Amortization of Intangibles (net of tax)	$	6,642	$	6,649	$	493
Annualized adjusted net income for annualized adjusted return on average tangible equity	$	72,551	$	69,538	$	34,434

Annualized Adjusted Return on Average Assets		1.11%		1.05%		0.97%
Annualized Adjusted Return on Average Equity		10.13%		9.53%		8.04%
Annualized Adjusted Return on Average Tangible Equity		16.15%		15.39%		11.16%

(2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity
	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Net income	$	64,028	$	48,524	$	32,082
Adjustments to net income:
Provision charge (benefit) for credit losses		638		8,880		(320)
Write-down on ORE property		2,690		—		—
Merger-related transaction costs		—		20,184		2,202
Income tax expense		27,825		14,185		10,888
PTPP income	$	95,181	$	91,773	$	44,852

Annualized adjusted PTPP income	$	386,012	$	365,097	$	180,394
Average assets	$	24,049,318	$	23,908,514	$	14,093,767
Average equity	$	2,638,361	$	2,624,019	$	1,698,170
Average tangible equity	$	1,822,407	$	1,797,994	$	1,240,475

Annualized adjusted PTPP return on average assets		1.61%		1.53%		1.28%
Annualized adjusted PTPP return on average equity		14.63%		13.91%		10.62%
Annualized adjusted PTPP return on average tangible equity		21.18%		20.31%		14.54%

(3) Annualized Return on Average Tangible Equity
	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Total average stockholders’ equity	$	2,638,361	$	2,624,019	$	1,698,170
Less: total average intangible assets		815,954		826,025		457,695
Total average tangible stockholders’ equity	$	1,822,407	$	1,797,994	$	1,240,475

Net income		64,028		48,524		32,082
Less: Amortization of Intangibles, net of tax		6,642		6,649		493
Total net income	$	70,670	$	55,173	$	32,575

Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)		15.73%		12.21%		10.56%

(4) Annualized Adjusted Non-Interest Expense to Average Assets
	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Reported non-interest expense	$	116,267	$	134,323	$	71,321
Adjustments to non-interest expense:
Credit loss (benefit) expense for off-balance sheet credit exposures		—		—		(506)
Write-down on ORE property		2,690		—		—
Merger-related transaction costs		—		20,184		2,202
Adjusted non-interest expense	$	113,577	$	114,139	$	69,625

Annualized adjusted non-interest expense	$	460,618	$	454,075	$	280,030

Average assets	$	24,049,318	$	23,908,514	$	14,093,767

Annualized adjusted non-interest expense/average assets		1.92%		1.90%		1.99%

(5) Efficiency Ratio Calculation
	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Net interest income	$	181,728	$	181,737	$	93,670
Non-interest income		27,030		24,175		20,807
Adjustments to non-interest income:
Net (gain) loss on securities transactions		(87)		14		1
Adjusted non-interest income	$	26,943	$	24,189	$	20,808
Total income	$	208,671	$	205,926	$	114,478

Adjusted non-interest expense	$	113,577	$	114,139	$	69,625

Efficiency ratio (adjusted non-interest expense/income)		54.43%		55.43%		60.82%

(6) Book and Tangible Book Value per Share	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Total stockholders’ equity	$	2,658,794	$	2,601,207	$	1,695,162
Less: total intangible assets		809,725		819,230		457,239
Total tangible stockholders’ equity	$	1,849,069	$	1,781,977	$	1,237,923

Shares outstanding		130,661,195		130,489,493		75,928,193

Book value per share (total stockholders’ equity/shares outstanding)	$	20.35	$	19.93	$	22.33
Tangible book value per share (total tangible stockholders’ equity/shares outstanding)	$	14.15	$	13.66	$	16.30

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Financial Condition
March 31, 2025 (Unaudited) and December 31, 2024
(Dollars in Thousands)

Assets	March 31, 2025		December 31, 2024
Cash and cash equivalents	$	234,076	$	205,939
Available for sale debt securities, at fair value		2,878,785		2,768,915
Held to maturity debt securities, (net of $17,000 allowance as of March 31, 2025 (unaudited) and $14,000 allowance as of December 31, 2024)		314,005		327,623
Equity securities, at fair value		19,871		19,110
Federal Home Loan Bank stock		126,271		112,767
Loans held for sale		149,961		162,453
Loans held for investment		18,791,371		18,659,370
Less allowance for credit losses		191,770		193,432
Net loans		18,749,562		18,628,391
Foreclosed assets, net		6,755		9,473
Banking premises and equipment, net		115,424		119,622
Accrued interest receivable		91,776		91,160
Intangible assets		809,725		819,230
Bank-owned life insurance		407,986		405,893
Other assets		470,523		543,702
Total assets	$	24,224,759	$	24,051,825

Liabilities and Stockholders’ Equity
Deposits:
Demand deposits	$	13,612,189	$	13,775,991
Savings deposits		1,670,920		1,679,667
Certificates of deposit of $250,000 or more		767,626		789,342
Other time deposits		2,398,128		2,378,813
Total deposits		18,448,863		18,623,813
Mortgage escrow deposits		51,261		42,247
Borrowed funds		2,336,191		2,020,435
Subordinated debentures		402,853		401,608
Other liabilities		326,797		362,515
Total liabilities		21,565,965		21,450,618

Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued		—		—
Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,663,184 shares outstanding as of March 31, 2025 and 130,489,493 outstanding as of December 31, 2024.		1,376		1,376
Additional paid-in capital		1,836,665		1,834,495
Retained earnings		1,021,266		989,111
Accumulated other comprehensive loss		(110,246)		(135,355)
Treasury stock		(90,267)		(88,420)
Total stockholders’ equity		2,658,794		2,601,207
Total liabilities and stockholders’ equity	$	24,224,759	$	24,051,825

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Consolidated Statements of Income
Three months ended March 31, 2025, December 31, 2024 and March 31, 2024
(Dollars in Thousands, except per share data) (Unaudited)

	Three Months Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Interest and dividend income:
Real estate secured loans	$	187,054	$	194,236	$	107,456
Commercial loans		75,819		75,978		36,100
Consumer loans		10,158		10,815		4,523
Available for sale debt securities, equity securities and Federal Home Loan Bank stock		29,644		27,197		12,330
Held to maturity debt securities		1,996		2,125		2,268
Deposits, federal funds sold and other short-term investments		675		1,596		1,182
Total interest income		305,346		311,947		163,859

Interest expense:
Deposits		97,420		105,922		52,534
Borrowed funds		17,778		15,652		17,383
Subordinated debt		8,420		8,636		272
Total interest expense		123,618		130,210		70,189
Net interest income		181,728		181,737		93,670
Provision charge for credit losses		638		8,880		(320)
Net interest income after provision for credit losses		181,090		172,857		93,990

Non-interest income:
Fees		9,655		9,687		5,912
Wealth management income		7,328		7,655		7,488
Insurance agency income		5,651		3,289		4,793
Bank-owned life insurance		2,092		2,261		1,817
Net gain (loss) on securities transactions		87		(14)		(1)
Other income		2,217		1,297		798
Total non-interest income		27,030		24,175		20,807

Non-interest expense:
Compensation and employee benefits		62,366		59,937		40,048
Net occupancy expense		13,927		12,562		8,520
Data processing expense		9,605		9,881		6,783
FDIC Insurance		3,385		3,411		2,272
Amortization of intangibles		9,501		9,511		705
Advertising and promotion expense		1,060		1,485		966
Merger-related expenses		—		20,184		2,202
Other operating expenses		16,423		17,352		10,331
Total non-interest expense		116,267		134,323		71,827
Income before income tax expense		91,853		62,709		42,970
Income tax expense		27,825		14,185		10,888
Net income	$	64,028	$	48,524	$	32,082

Basic earnings per share	$	0.49	$	0.37	$	0.43
Average basic shares outstanding		130,325,393		130,067,244		75,260,029

Diluted earnings per share	$	0.49	$	0.37	$	0.43
Average diluted shares outstanding		130,380,475		130,163,872		75,275,660

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Quarterly Average Balances
(Dollars in Thousands) (Unaudited)
	March 31, 2025						December 31, 2024						March 31, 2024
	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Deposits	$	80,074	$	675	4.21%		$	117,998	$	1,596	5.38%		$	87,869	$	1,182	5.41%
Available for sale debt securities		2,827,699		27,621	3.89%			2,720,066		25,064	3.69%			1,673,950		10,022	2.39%
Held to maturity debt securities, net ⁽¹⁾		320,036		1,996	2.50%			328,147		2,125	2.59%			357,246		2,268	2.54%
Equity securities, at fair value		19,840		—	—	%		19,920		—	—	%		1,099		—	—	%
Federal Home Loan Bank stock		107,527		2,023	7.53%			86,885		2,134	9.82%			73,754		2,308	12.52%
Net loans: ⁽²⁾
Total mortgage loans		13,297,168		187,054	5.70%			13,287,942		194,236	5.75%			7,990,218		107,456	5.33%
Total commercial loans		4,684,572		75,819	6.56%			4,587,048		75,978	6.54%			2,381,965		36,100	6.03%
Total consumer loans		609,137		10,158	6.76%			612,453		10,815	7.02%			296,809		4,523	6.13%
Total net loans		18,590,877		273,031	5.95%			18,487,443		281,029	5.99%			10,668,992		148,079	5.51%
Total interest-earning assets	$	21,946,053	$	305,346	5.63%		$	21,760,458	$	311,947	5.66%		$	12,862,910	$	163,859	5.06%

Non-Interest Earning Assets:
Cash and due from banks		134,205						159,151						116,563
Other assets		1,969,060						1,988,905						1,114,294
Total assets	$	24,049,318					$	23,908,514					$	14,093,767

Interest-Bearing Liabilities:
Demand deposits	$	10,095,570	$	65,433	2.63%		$	10,115,827	$	71,265	2.80%		$	5,894,062	$	41,566	2.84%
Savings deposits		1,682,596		924	0.22%			1,677,725		968	0.23%			1,163,181		637	0.22%
Time deposits		3,199,620		31,063	3.94%			3,187,172		33,689	4.21%			1,065,170		10,331	3.90%
Total Deposits		14,977,786		97,420	2.64%			14,980,724		105,922	2.81%			8,122,413		52,534	2.60%

Borrowed funds		1,918,069		17,778	3.76%			1,711,806		15,652	3.64%			1,940,981		17,383	3.60%
Subordinated debentures		402,037		8,420	8.49%			400,852		8,636	8.57%			10,712		272	10.23%
Total interest-bearing liabilities		17,297,892		123,618	2.90%			17,093,382		130,210	3.03%			10,074,106		70,189	2.80%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,719,177						3,788,056						2,072,001
Other non-interest bearing liabilities		393,888						403,057						249,490
Total non-interest bearing liabilities		4,113,065						4,191,113						2,321,491
Total liabilities		21,410,957						21,284,495						12,395,597
Stockholders’ equity		2,638,361						2,624,019						1,698,170
Total liabilities and stockholders’ equity	$	24,049,318					$	23,908,514					$	14,093,767

Net interest income			$	181,728					$	181,737					$	93,670

Net interest rate spread					2.73%						2.63%						2.26%
Net interest-earning assets	$	4,648,161					$	4,667,076					$	2,788,804

Net interest margin ⁽³⁾					3.34%						3.28%						2.87%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x						1.27x						1.28x


(1	)	Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2	)	Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include loans held for sale and non-accrual loans.
(3	)	Annualized net interest income divided by average interest-earning assets.

The following table summarizes the quarterly net interest margin for the previous five quarters.
	3/31/25	12/31/24	9/30/24	6/30/24	3/31/24
	1st Qtr.	4th Qtr.	3rd Qtr.	2nd Qtr.	1st Qtr.
Interest-Earning Assets:
Securities	3.86%	3.78%	3.69%	3.40%	2.87%
Net loans	5.95%	5.99%	6.21%	6.05%	5.51%
Total interest-earning assets	5.63%	5.66%	5.84%	5.67%	5.06%

Interest-Bearing Liabilities:
Total deposits	2.64%	2.81%	2.96%	2.84%	2.60%
Total borrowings	3.76%	3.64%	3.73%	3.83%	3.60%
Total interest-bearing liabilities	2.90%	3.03%	3.19%	3.09%	2.80%

Interest rate spread	2.73%	2.63%	2.65%	2.58%	2.26%
Net interest margin	3.34%	3.28%	3.31%	3.21%	2.87%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x	1.27x	1.26x	1.25x	1.28x

PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
Net Interest Margin Analysis
Average Year to Date Balances
(Dollars in Thousands) (Unaudited)

	March 31, 2025					March 31, 2024
	Average				Average	Average				Average
	Balance		Interest		Yield/Cost	Balance		Interest		Yield/Cost
Interest-Earning Assets:
Deposits	$	80,074	$	675	4.21%	$	87,869	$	1,182	5.41%
Available for sale debt securities		2,827,699		27,621	3.89%		1,673,950		10,022	2.39%
Held to maturity debt securities, net ⁽¹⁾		320,036		1,996	2.50%		357,246		2,268	2.54%
Equity securities, at fair value		19,840		—	—%		1,099		—	—%
Federal Home Loan Bank stock		107,527		2,023	7.53%		73,754		2,308	12.52%
Net loans: ⁽²⁾
Total mortgage loans		13,297,168		187,054	5.70%		7,990,218		107,456	5.33%
Total commercial loans		4,684,572		75,819	6.56%		2,381,965		36,100	6.03%
Total consumer loans		609,137		10,158	6.76%		296,809		4,523	6.13%
Total net loans		18,590,877		273,031	5.95%		10,668,992		148,079	5.51%
Total interest-earning assets	$	21,946,053	$	305,346	5.63%	$	12,862,910	$	163,859	5.06%

Non-Interest Earning Assets:
Cash and due from banks		134,205					116,563
Other assets		1,969,060					1,114,294
Total assets	$	24,049,318				$	14,093,767

Interest-Bearing Liabilities:
Demand deposits	$	10,095,570	$	65,433	2.63%	$	5,894,062	$	41,566	2.84%
Savings deposits		1,682,596		924	0.22%		1,163,181		637	0.22%
Time deposits		3,199,620		31,063	3.94%		1,065,170		10,331	3.90%
Total deposits		14,977,786		97,420	2.64%		8,122,413		52,534	2.60%
Borrowed funds		1,918,069		17,778	3.76%		1,940,981		17,383	3.60%
Subordinated debentures		402,037		8,420	8.49%		10,712		272	10.23%
Total interest-bearing liabilities	$	17,297,892	$	123,618	2.90%	$	10,074,106	$	70,189	2.80%

Non-Interest Bearing Liabilities:
Non-interest bearing deposits		3,719,177					2,072,001
Other non-interest bearing liabilities		393,888					249,490
Total non-interest bearing liabilities		4,113,065					2,321,491
Total liabilities		21,410,957					12,395,597
Stockholders’ equity		2,638,361					1,698,170
Total liabilities and stockholders’ equity	$	24,049,318				$	14,093,767

Net interest income			$	181,728				$	93,670

Net interest rate spread					2.73%					2.26%
Net interest-earning assets	$	4,648,161				$	2,788,804

Net interest margin ⁽³⁾					3.34%					2.87%

Ratio of interest-earning assets to total interest-bearing liabilities	1.27x					1.28x


(1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
(2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include loans held for sale and non-accrual loans.
(3) Annualized net interest income divided by average interest-earning assets.

The following table summarizes the year-to-date net interest margin for the previous three years.

	Three Months Ended
	March 31, 2025	March 31, 2024	March 31, 2023
Interest-Earning Assets:
Securities	3.86%	2.87%	2.52%
Net loans	5.95%	5.51%	5.12%
Total interest-earning assets	5.63%	5.06%	4.63%

Interest-Bearing Liabilities:
Total deposits	2.64%	2.60%	1.39%
Total borrowings	3.76%	3.60%	2.48%
Total interest-bearing liabilities	2.90%	2.80%	1.54%

Interest rate spread	2.73%	2.26%	3.09%
Net interest margin	3.34%	2.87%	3.48%

Ratio of interest-earning assets to interest-bearing liabilities	1.27x	1.28x	1.34x

CONTACT: Investor Relations, 1-732-590-9300

The MIL Network –

April 25, 2025

MIL-OSI Africa: May 31 deadline for Employer’s Annual Declaration

Source: South Africa News Agency

Thursday, April 24, 2025

The deadline for the Employer’s Annual Declaration period has been set as 31 May 2025 by the South African Revenue Service (SARS).

The revenue service described the process as an integral part preceding the Personal Income Tax (PIT) Filing Season.

“The information gathered during the Employer Annual Declaration period, the monthly declaration in EMP201 and reconciliation in EMP501 aids SARS to issue taxpayers with accurate auto-assessed or pre-populated Income Tax Returns (ITR12).

“Incomplete or incorrect information will make it difficult for employees to fulfil their tax obligations. Timely distribution of IRP5 and IT3 certificates by employers is extremely important as employees require these certificates to file their ITR12s returns during tax season,” SARS said.

Furthermore, the revenue service has introduced an enhanced e-filing version aimed at enriching the filing experience.

“The latest version comes with improved capability, ensuring a smoother, more efficient reconciliation process. We encourage employers, tax practitioners, and payroll administrators to download the new e@syfile™ Employer v8.0 from the e@syFile download page on www.sars.gov.za before submitting the Employer Annual declarations.

“It is important to note that all employers are required and must submit their Employers Annual Declaration, including those Employers who are not economically active. SARS will hold all Employers liable for the non-compliance of the Employers Annual Declaration submission,” SARS said. – SAnews.gov.za

MIL OSI Africa –

April 25, 2025

MIL-OSI USA: DelBene, Davis, Sánchez Introduce Child and Dependent Care Tax Credit Enhancement Act

Source: United States House of Representatives – Congresswoman Suzan DelBene (1st District of Washington)

Today, Representatives Suzan DelBene (WA-01) Danny Davis (IL-07), and Linda Sánchez (CA-38) introduced the Child and Dependent Care Tax Credit Enhancement Act, legislation which would permanently expand the child and dependent care tax credit. The bill would raise the maximum credit from $1,050 to $4,000 for one child, and $2,100 to $8,000 for two or more children.

The Child and Dependent Care Tax Credit (CDCTC) is the only tax credit that helps working parents offset the rising cost of child care. In 2021, Democrats successfully enhanced both the CDCTC and the Child Tax Credit because both credits are essential to support parents’ ability to provide for their families.

The current CDCTC fails to meet the needs of tens of millions of working families. Very few families receive meaningful benefit from the credit due to the extremely low phase-out level of $15,000, the low expense limits, the non-refundable nature, and the loss of benefit due to inflation. The Tax Policy Center estimates that only 13% of families with children claimed the CDCTC in 2022.

The bill increases the credit amount, expands eligibility to low-income families, makes the credit available to married couples who file separately due to high student loan debt, and retains the credit’s value over time by indexing it to inflation.

High-quality, affordable child care is essential to the economic well-being of families, businesses, and our country. Yet, child care places a major financial burden on American families. The price of child care can range from $5,357 to $17,171 per year depending on location and type of care. Astoundingly, the cost of center-based care for two children is more than the average mortgage in 41 states and more than the average annual rent in all 50 states plus DC.

“Access to affordable child care is one of the biggest barriers families face. Enhancing the Child and Dependent Care Tax Credit will give parents the relief they need by supporting both families and care providers,” said DelBene. “This bill is a commonsense step toward making child care more accessible and affordable for every family.”

“High-quality, affordable child care is essential to the economic well-being of families, businesses, and our country,” said Davis. “I am proud to lead the Child and Dependent Care Tax Credit Enhancement Act that would restore the 2021 credit so that families can receive up to $4,000 for child care for one child or up to $8,000 for two or more children, much better than the almost $600 that the typical family receives currently. This bill would strengthen the financial well-being of families and grow our economy. It is critical that Congress acts now to help working families.”

“Working parents shouldn’t have to choose between earning a paycheck and caring for their kids,” said Sánchez. “Expanding the child care tax credit will make child care more affordable and accessible, so parents can focus on their work knowing their kids are being cared for.”

“For families with young children, the cost of childcare is often unaffordable and impacts their economic opportunity—the cornerstone of child and family well-being. The Child and Dependent Care Tax Credit (CDCTC) Enhancement Act of 2025 is an important effort to update the CDCTC to ensure that more families can offset their child care costs. We are grateful to Rep. Danny Davis and his longstanding efforts to support children and families in his district and across the country, and also extend that appreciation to Reps. Suzan DelBene and Linda Sanchez,” said Diana Rauner, President, Start Early.

“Often conflated with the child tax credit, the Child and Dependent Care Tax Credit is one of the only tax incentives that helps working families with their child care expenses. As the cost of care increases, many families must contend with whether their current job pays enough to justify their child care expenses,” said Radha Mohan, Executive Director, Early Care & Education Consortium. “For families where one parent must leave the workforce because they cannot afford the cost of care, this often hurts the family from an economic standpoint in the long run. The CDCTC Enhancement Act helps ensure that families do not have to make this choice by providing a credit to offset the cost of care. When paired with programs such as the Child Care and Development Block Grant, this bill will ensure that many families will have reduced their child care costs by over 50%.”

“As almost any working family with young children will tell you, the cost of child care is a major source of financial stress, putting immense pressure on already tight budgets,” First Five Years Fund Executive Director Sarah Rittling. “The Child and Dependent Care Tax Credit Enhancement would make essential updates to the CDCTC to ensure more parents are able to keep more of what they earn to offset the high cost of care. We are grateful to Reps. Danny Davis, Suzan DelBene, and Linda Sanchez for their leadership and commitment to supporting families with young children.”

“Affordable child care isn’t a luxury—it’s the backbone of our economy,” said Yelena Tsilker, Senior Government Relations and Advocacy Director at ZERO TO THREE. “Parents of infants now face child care bills that top $16,000 a year—higher than in-state college tuition in many states. The Child and Dependent Care Tax Credit Enhancement Act tackles that crisis head-on by making the CDCTC fully refundable and increasing the maximum credit, so families of every income can choose the high-quality care their babies need. This relief will keep parents in the workforce and help millions of children thrive. We applaud Representatives Davis, DelBene, and Sánchez for championing legislation that hard-working families have long awaited.”

The bill has been endorsed by the Center for Law and Social Policy; Child Care Aware of America; Early Care and Education Consortium; First Five Years Fund; First Focus Campaign for Children; MomsRising; National Association for the Education of Young Children; National Women’s Law Center Action Fund; Save the Children; Start Early; Society for Human Resource Management (SHRM); and ZERO TO THREE.

This bill is led by Tina Smith (MN), Ron Wyden (OR), and Patty Murray (WA) in the Senate.

A copy of the bill can be found here.

MIL OSI USA News –

April 25, 2025

MIL-OSI: First Western Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Summary

Net income available to common shareholders of $4.2 million in Q1 2025, compared to $2.7 million in Q4 2024
Diluted earnings per share of $0.43 in Q1 2025, compared to $0.28 in Q4 2024
Net interest income of $17.5 million in Q1 2025, compared to $16.9 million in Q4 2024
Net interest margin increased 16 basis points from 2.45% in Q4 2024 to 2.61% in Q1 2025
Other real estate owned (“OREO”) decreased $31.5 million from $35.9 million in Q4 2024 to $4.4 million in Q1 2025 due to the sale of two properties for a net gain of $0.5 million
Noninterest-bearing deposits increased 9.1% from $375.6 million as of Q4 2024 to $409.7 million as of Q1 2025

DENVER, April 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the first quarter ended March 31, 2025.

Net income available to common shareholders was $4.2 million, or $0.43 per diluted share, for the first quarter of 2025. This compares to net income of $2.7 million, or $0.28 per diluted share, for the fourth quarter of 2024, and net income of $2.5 million, or $0.26 per diluted share, for the first quarter of 2024.

Scott C. Wylie, CEO of First Western, commented, “As expected, we generated a significant improvement in our level of profitability in the first quarter. We saw positive trends in many areas including an expansion in our net interest margin, a higher level of non-interest income, an increase in noninterest-bearing deposits, solid loan production, and well managed expenses. We also saw general stability in asset quality while having a substantial reduction in our nonperforming assets following the successful resolution of our two largest OREO properties, which were sold for a net gain.

“We expect to see a continuation of the positive trends we are seeing, while we also redeploy the cash from the sale of our two largest OREO properties into interest-earning assets. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.


	For the Three Months Ended
	March 31,			December 31,			March 31,
*(Dollars in thousands, except per share data)*		2025			2024			2024
Earnings Summary
Net interest income	$	17,453		$	16,908		$	16,070
Less: Provision (release) for credit losses		80			(974	)		72
Total non-interest income		7,345			6,459			7,277
Total non-interest expense		19,361			20,427			19,696
Income before income taxes		5,357			3,914			3,579
Income tax expense		1,172			1,166			1,064
Net income available to common shareholders		4,185			2,748			2,515
Basic earnings per common share		0.43			0.28			0.26
Diluted earnings per common share		0.43			0.28			0.26

Return on average assets (annualized)		0.59	%		0.38	%		0.35	%
Return on average shareholders’ equity (annualized)		6.63			4.39			4.10
Return on tangible common equity (annualized)⁽¹⁾		7.44			4.98			4.71
Net interest margin		2.61			2.45			2.34
Efficiency ratio⁽¹⁾		79.16			80.74			83.68

_____________________

⁽¹⁾	Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Operating Results for the First Quarter 2025

Revenue

Total income before non-interest expense was $24.7 million for the first quarter of 2025, compared to $24.3 million for the fourth quarter of 2024. Gross revenue⁽¹⁾ was $24.6 million for the first quarter of 2025, compared to $23.8 million for the fourth quarter of 2024. Relative to the fourth quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income, Net gain on mortgage loans, Net gain on other real estate owned, and Net gain on loans held for sale, partially offset by an increase in provision for credit losses and a decrease in Risk management and insurance fees. Relative to the first quarter of 2024, total income before non-interest expense increased 6.0% from $23.3 million and Gross revenue increased 4.7% from $23.5 million. Relative to the first quarter of 2024, the increase in total income before non-interest expense was primarily driven by increases in Net interest income and Net gain on other real estate owned, partially offset by decreases in Bank fees and Trust and investment management fees.

⁽¹⁾	Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Net Interest Income

Net interest income for the first quarter of 2025 was $17.5 million, an increase of 3.6% from $16.9 million in the fourth quarter of 2024. The increase quarter over quarter was primarily driven by a 16 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the first quarter of 2024, net interest income increased 8.7% from $16.1 million. The increase compared to the first quarter of 2024 was primarily driven by an 27 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets.

Net Interest Margin

Net interest margin for the first quarter of 2025 increased 16 basis points to 2.61% from 2.45% reported in the fourth quarter of 2024, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield.

The yield on interest-earning assets increased 4 basis points to 5.57% from 5.53% reported in the fourth quarter of 2024 and the cost of interest-bearing deposits decreased 19 basis points to 3.59% from 3.78% reported in the fourth quarter of 2024.

Relative to the first quarter of 2024, net interest margin increased 27 basis points from 2.34%, primarily due to a 32 basis point decrease in total cost of funds.

Non-interest Income

Non-interest income for the first quarter of 2025 was $7.3 million, an increase of 12.3% from $6.5 million in the fourth quarter of 2024. The increase was driven primarily by increases in Net gain on other real estate owned, Net gain on mortgage loans, and Net gain on loans held for sale, partially offset by a decrease in Risk management and insurance fees. The increase in Net gain on other real estate was due to the sale of our two largest OREO properties for a net gain of $0.5 million. The increase in Net gain on loans held for sale was due to the reversal of the previous quarter’s write-down on a non-performing loan. This loan was previously classified as held for sale; however, during the quarter it was transferred to held for investment and charged off through the Allowance for credit losses.

Relative to the first quarter of 2024, non-interest income increased slightly, driven primarily by increases in Net gain on other real estate owned and Net gain on loans accounted for under the fair value option, offset partially by decreases in Trust and investment management fees and Bank fees.

Non-interest Expense

Non-interest expense for the first quarter of 2025 was $19.4 million, a decrease of 4.9% from $20.4 million in the fourth quarter of 2024. The decrease was primarily driven by the one-time $1.1 million Other real estate owned (“OREO”) write-down recognized in the fourth quarter of 2024, offset partially by an increase in Salaries and employee benefits.

Relative to the first quarter of 2024, non-interest expense decreased 1.5% from $19.7 million, driven primarily by a decrease in Professional services due to decreases in legal expenses, audit fees, and FDIC insurance fees, partially offset by increases in Occupancy and equipment expenses and Salaries and employee benefits.

The Company’s efficiency ratio⁽¹⁾ was 79.2% in the first quarter of 2025, compared with 80.7% in the fourth quarter of 2024 and 83.7% in the first quarter of 2024.

⁽¹⁾	Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Income Taxes

The Company recorded Income tax expense of $1.2 million for the first quarter of 2025, compared to Income tax expense of $1.2 million for the fourth quarter of 2024 and Income tax expense of $1.1 million for the first quarter of 2024.

Loans

Total loans held for investment of $2.43 billion as of March 31, 2025 was flat compared to December 31, 2024. Changes in the quarter included net growth in the commercial real estate and 1 – 4 family residential portfolios, offset by net decreases in the cash, securities, and other and construction and development portfolios. Total average loans were $2.41 billion for the first quarter of 2025, an increase of $21.4 million from $2.39 billion for the fourth quarter of 2024. Relative to the first quarter of 2024, total loans held for investment decreased from $2.48 billion as of March 31, 2024, primarily driven by net decreases in the commercial and industrial, construction and development, and cash, securities, and other portfolios, partially offset by net growth in the 1 – 4 family residential and non-owner occupied commercial real estate portfolios.

Deposits

Total deposits were $2.52 billion as of March 31, 2025, an increase of 0.4% from $2.51 billion as of December 31, 2024. Relative to the first quarter of 2024, total deposits decreased from $2.53 billion as of March 31, 2024, driven primarily by a decrease in Noninterest-bearing deposits.

Borrowings

Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $51.6 million as of March 31, 2025, a decrease of $5.4 million from $57.0 million as of December 31, 2024. The change when compared to December 31, 2024 was primarily driven by net pay downs on the Company’s FHLB line of credit. Relative to the first quarter of 2024, borrowings decreased $17.9 million from $69.5 million as of March 31, 2024. The decrease in borrowings from March 31, 2024 was primarily driven by BTFP payoffs and net pay downs on the Company’s FHLB line of credit.

Subordinated notes were $44.6 million as of March 31, 2025, compared to $52.6 million as of December 31, 2024. Subordinated notes decreased $7.8 million from $52.4 million as of March 31, 2024. Relative to the fourth quarter of 2024 and first quarter of 2024, the decrease was due to the call of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

Assets Under Management

Assets Under Management (“AUM”) decreased to $7.18 billion as of March 31, 2025, compared to $7.32 billion as of December 31, 2024. The decrease in AUM during the quarter was primarily attributable to net withdrawals throughout the first quarter of 2025. Compared to March 31, 2024, total AUM increased slightly from $7.14 billion.

Credit Quality

Non-performing assets totaled $17.1 million, or 0.59% of total assets, as of March 31, 2025, compared to $49.0 million, or 1.68% of total assets, as of December 31, 2024. The decrease in non-performing assets during the quarter was primarily due to the sale of two OREO properties for a net gain of $0.5 million. As of March 31, 2024, non-performing assets totaled $46.0 million, or 1.57% of total assets. Relative to the first quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of March 31, 2025 a decrease of $31.5 million from $35.9 million as of December 31, 2024. As of March 31, 2024, the Company held no OREO.

Non-performing loans totaled $12.8 million as of March 31, 2025, a decrease of $0.3 million from $13.1 million as of December 31, 2024. The decrease was primarily due to the charge-off of a non-performing loan that had previously been held for sale. As of March 31, 2024, non-performing loans totaled $46.0 million. The decrease when compared to March 31, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

During the first quarter of 2025, the Company recorded provision expense of $0.1 million, compared to a provision release of $1.0 million in the fourth quarter of 2024 and provision expense of $0.1 million in the first quarter of 2024.

Capital

As of March 31, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of March 31, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:


	March 31,
	2025
Consolidated Capital
Tier 1 capital to risk-weighted assets	10.35	%
Common Equity Tier 1 (“CET1”) to risk-weighted assets	10.35
Total capital to risk-weighted assets	13.15
Tier 1 capital to average assets	8.12

Bank Capital
Tier 1 capital to risk-weighted assets	11.76	%
CET1 to risk-weighted assets	11.76
Total capital to risk-weighted assets	12.52
Tier 1 capital to average assets	9.24

Book value per common share increased 1.3% from $26.10 as of December 31, 2024 to $26.44 as of March 31, 2025. Book value per common share increase 3.6% from $25.52 as of March 31, 2024.

Tangible book value per common share⁽¹⁾ increased 1.6% from $22.83 as of December 31, 2024, to $23.18 as of March 31, 2025. Tangible book value per common share increased 4.4% from $22.21 as of March 31, 2024.

⁽¹⁾	Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, April 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI019349e043a94dc394d0159a3c41719d.

A slide presentation relating to the first quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.

About First Western

First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” “Gross Revenue,” and “Allowance for Credit Losses to Adjusted Loans”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

Forward-Looking Statements

Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the lack of soundness of other financial institutions or financial market utilities may adversely affect the Company; the Company’s ability to engage in routine funding and other transactions could be adversely affected by the actions and commercial soundness of other financial institutions; financial institutions are interrelated because of trading, clearing, counterparty or other relationships; defaults by, or even rumors or questions about, one or more financial institutions or financial market utilities, or the financial services industry generally, may lead to market-wide liquidity problems and losses of client, creditor and counterparty confidence and could lead to losses or defaults by other financial institutions, or the Company; integration risks and projected cost savings in connection with acquisitions; the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of competition for investment managers and professionals; the risk of fluctuation in the value of our debt securities; the risk of changes in interest rates; the risk of the adequacy of our allowance for credit losses; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources; the risk of weak economic conditions and global trade, including the imposition of tariffs; the risk that legislative or regulatory actions may have a significant adverse effect on our operations. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com


First Western Financial, Inc. Condensed Consolidated Statements of Income (unaudited)

	Three Months Ended
	March 31,		December 31,			March 31,
*(dollars in thousands, except per share amounts)*		2025		2024			2024
Interest and dividend income:
Loans, including fees	$	34,068	$	34,287		$	35,139
Loans accounted for under the fair value option		111		118			209
Investment securities		681		696			603
Interest-bearing deposits in other financial institutions		2,221		2,879			2,352
Dividends, restricted stock		128		129			95
Total interest and dividend income		37,209		38,109			38,398

Interest expense:
Deposits		18,516		19,921			20,622
Other borrowed funds		1,240		1,280			1,706
Total interest expense		19,756		21,201			22,328
Net interest income		17,453		16,908			16,070
Less: Provision (release) for credit losses		80		(974	)		72
Net interest income, after provision (release) for credit losses		17,373		17,882			15,998

Non-interest income:
Trust and investment management fees		4,677		4,660			4,930
Net gain on mortgage loans		1,067		377			1,264
Net gain (loss) on loans held for sale		222		(222	)		117
Bank fees		422		426			891
Risk management and insurance fees		259		1,139			49
Income on company-owned life insurance		110		112			105
Net gain (loss) on loans accounted for under the fair value option		6		(149	)		(302	)
Net gain on other real estate owned		459		—			—
Unrealized gain (loss) recognized on equity securities		11		(49	)		(6	)
Other		112		165			229
Total non-interest income		7,345		6,459			7,277
Total income before non-interest expense		24,718		24,341			23,275

Non-interest expense:
Salaries and employee benefits		11,480		11,237			11,267
Occupancy and equipment		2,210		2,100			1,976
Professional services		1,704		1,821			2,411
Technology and information systems		1,078		1,073			1,010
Data processing		1,122		1,029			948
Marketing		216		397			194
Amortization of other intangible assets		51		56			57
Other		1,500		2,714			1,833
Total non-interest expense		19,361		20,427			19,696
Income before income taxes		5,357		3,914			3,579
Income tax expense		1,172		1,166			1,064
Net income available to common shareholders	$	4,185	$	2,748		$	2,515
Earnings per common share:
Basic	$	0.43	$	0.28		$	0.26
Diluted		0.43		0.28			0.26


First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited)

	March 31,			December 31,			March 31,
*(dollars in thousands)*		2025			2024			2024
Assets
Cash and cash equivalents:
Cash and due from banks	$	15,924		$	9,770		$	8,136
Interest-bearing deposits in other financial institutions		255,658			226,271			249,753
Total cash and cash equivalents		271,582			236,041			257,889

Held-to-maturity debt securities (fair value of $67,479, $68,161 and $64,908, respectively), net of allowance for credit losses of $71		73,775			75,724			72,303
Correspondent bank stock, at cost		5,968			5,864			4,461
Mortgage loans held for sale, at fair value		10,557			25,455			10,470
Loans held for sale, at fair value		—			251			—
Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively)		2,425,367			2,425,565			2,475,524
Allowance for credit losses		(17,956	)		(18,330	)		(24,630	)
Loans, net		2,407,411			2,407,235			2,450,894
Premises and equipment, net		24,554			24,129			24,869
Accrued interest receivable		10,623			10,364			11,919
Accounts receivable		4,505			4,763			4,980
Other receivables		4,608			5,710			5,254
Other real estate owned, net		4,385			35,929			—
Goodwill and other intangible assets, net		31,576			31,627			31,797
Deferred tax assets, net		2,856			3,079			5,695
Company-owned life insurance		17,071			16,961			16,635
Other assets		36,829			35,905			35,051
Total assets	$	2,906,300		$	2,919,037		$	2,932,217

Liabilities
Deposits:
Noninterest-bearing	$	409,696		$	375,603		$	434,236
Interest-bearing		2,105,701			2,138,606			2,097,734
Total deposits		2,515,397			2,514,209			2,531,970
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings		51,612			57,038			69,484
Subordinated notes		44,621			52,565			52,397
Accrued interest payable		2,371			1,995			2,415
Other liabilities		35,744			40,908			30,423
Total liabilities		2,649,745			2,666,715			2,686,689

Shareholders’ Equity
Total shareholders’ equity		256,555			252,322			245,528
Total liabilities and shareholders’ equity	$	2,906,300		$	2,919,037		$	2,932,217


First Western Financial, Inc. Consolidated Financial Summary (unaudited)

	March 31,			December 31,			March 31,
*(dollars in thousands)*		2025			2024			2024
Loan Portfolio
Cash, Securities, and Other⁽¹⁾	$	101,078		$	120,005		$	151,178
Consumer and Other		16,688			17,333			18,556
Construction and Development		291,133			315,686			333,284
1-4 Family Residential		971,179			960,354			910,129
Non-Owner Occupied CRE		636,820			614,384			562,862
Owner Occupied CRE		182,417			173,223			194,338
Commercial and Industrial		223,197			220,501			297,573
Total		2,422,512			2,421,486			2,467,920
Loans accounted for under the fair value option		6,280			7,508			12,276
Total loans held for investment		2,428,792			2,428,994			2,480,196
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net⁽²⁾		(3,425	)		(3,429	)		(4,672	)
Loans (includes $6,112, $7,283, and $11,922 measured at fair value, respectively)	$	2,425,367		$	2,425,565		$	2,475,524
Mortgage loans held for sale		10,557			25,455			10,470
Loans held for sale		—			251			—

Deposit Portfolio
Money market deposit accounts	$	1,566,737		$	1,513,605		$	1,503,598
Time deposits		379,533			471,415			442,834
Interest checking accounts		144,980			139,374			132,415
Savings accounts		14,451			14,212			18,887
Total interest-bearing deposits		2,105,701			2,138,606			2,097,734
Noninterest-bearing accounts		409,696			375,603			434,236
Total deposits	$	2,515,397		$	2,514,209		$	2,531,970

____________________

⁽¹⁾	Includes PPP loans of $1.6 million as of March 31, 2025, $2.1 million as of December 31, 2024, and $3.8 million as of March 31, 2024.
⁽²⁾	Includes fair value adjustments on loans held for investment accounted for under the fair value option.


First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
*(dollars in thousands)*		2025			2024			2024
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions	$	198,294		$	236,152		$	177,523
Debt securities		75,592			77,464			74,666
Correspondent bank stock		5,806			5,738			4,451
Gross loans		2,407,482			2,386,070			2,490,300
Mortgage loans held for sale		13,593			26,623			6,752
Loans held at fair value		6,846			8,136			13,134
Total interest-earning assets		2,707,613			2,740,183			2,766,826
Noninterest-earning assets		145,479			161,783			100,170
Total assets	$	2,853,092		$	2,901,966		$	2,866,996

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	2,090,505		$	2,095,204		$	2,008,246
FHLB and Federal Reserve borrowings		51,885			54,428			92,195
Subordinated notes		52,495			52,528			52,360
Total interest-bearing liabilities		2,194,885			2,202,160			2,152,801
Noninterest-bearing liabilities:
Noninterest-bearing deposits		363,922			403,433			446,457
Other liabilities		41,656			45,889			22,250
Total noninterest-bearing liabilities		405,578			449,322			468,707
Total shareholders’ equity		252,629			250,484			245,488
Total liabilities and shareholders’ equity	$	2,853,092		$	2,901,966		$	2,866,996

Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions		4.54	%		4.85	%		5.33	%
Debt securities		3.65			3.57			3.25
Correspondent bank stock		8.94			8.94			8.58
Loans		5.71			5.65			5.66
Loan held at fair value		6.58			5.77			6.40
Mortgage loans held for sale		5.46			6.02			6.79
Total interest-earning assets		5.57			5.53			5.58
Interest-bearing deposits		3.59			3.78			4.13
Total deposits		3.06			3.17			3.38
FHLB and Federal Reserve borrowings		3.92			3.96			4.23
Subordinated notes		5.70			5.59			5.66
Total interest-bearing liabilities		3.65			3.83			4.17
Net interest margin		2.61			2.45			2.34
Net interest rate spread		1.92			1.70			1.41


First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
*(dollars in thousands, except share and per share amounts)*		2025			2024			2024
Asset Quality
Non-performing loans	$	12,758		$	13,052		$	46,044
Non-performing assets		17,143			48,981			46,044
Net charge-offs (recoveries)		566			(270	)		—
Non-performing loans to total loans		0.53	%		0.54	%		1.86	%
Non-performing assets to total assets		0.59			1.68			1.57
Allowance for credit losses to non-performing loans		140.74			140.44			53.49
Allowance for credit losses to total loans		0.74			0.76			1.00
Allowance for credit losses to adjusted loans⁽¹⁾		0.74			0.76			1.00
Net charge-offs (recoveries) to average loans		0.02			(0.01	)		—

Assets Under Management	$	7,176,624		$	7,321,147		$	7,141,453

Market Data
Book value per share at period end	$	26.44		$	26.10		$	25.52
Tangible book value per common share⁽¹⁾		23.18			22.83			22.21
Weighted average outstanding shares, basic		9,704,419			9,665,621			9,621,309
Weighted average outstanding shares, diluted		9,798,591			9,794,797			9,710,764
Shares outstanding at period end		9,704,320			9,667,142			9,621,309

Consolidated Capital
Tier 1 capital to risk-weighted assets		10.35	%		10.07	%		9.77	%
CET1 to risk-weighted assets		10.35			10.07			9.77
Total capital to risk-weighted assets		13.15			13.12			13.15
Tier 1 capital to average assets		8.12			7.88			7.73

Bank Capital
Tier 1 capital to risk-weighted assets		11.76	%		11.41	%		11.00	%
CET1 to risk-weighted assets		11.76			11.41			11.00
Total capital to risk-weighted assets		12.52			12.10			12.02
Tier 1 capital to average assets		9.24			8.94			8.70

________________________

⁽¹⁾	Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.


First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

Reconciliations of Non-GAAP Financial Measures

	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
*(dollars in thousands, except share and per share amounts)*		2025			2024			2024
Tangible Common
Total shareholders’ equity	$	256,555		$	252,322		$	245,528
Less: goodwill and other intangibles, net		31,576			31,627			31,797
Tangible common equity	$	224,979		$	220,695		$	213,731

Common shares outstanding, end of period		9,704,320			9,667,142			9,621,309
Tangible common book value per share	$	23.18		$	22.83		$	22.21
Net income available to common shareholders		4,185			2,748			2,515
Return on tangible common equity (annualized)		7.44	%		4.98	%		4.71	%

Efficiency
Non-interest expense	$	19,361		$	20,427		$	19,696
Less: OREO expenses and write-downs		(80	)		1,222			—
Adjusted non-interest expense	$	19,441		$	19,205		$	19,696

Total income before non-interest expense	$	24,718		$	24,341		$	23,275
Less: unrealized gain (loss) recognized on equity securities		11			(49	)		(6	)
Less: net gain (loss) on loans accounted for under the fair value option		6			(149	)		(302	)
Less: net gain (loss) on loans held for sale		222			(222	)		117
Plus: provision (release) for credit losses		80			(974	)		72
Gross revenue	$	24,559		$	23,787		$	23,538
Efficiency ratio		79.16	%		80.74	%		83.68	%

The MIL Network –

April 25, 2025

MIL-OSI: NBT Bancorp Inc. Announces First Quarter 2025 Net Income

Source: GlobeNewswire (MIL-OSI)

NORWICH, N.Y., April 24, 2025 (GLOBE NEWSWIRE) — NBT Bancorp Inc. (“NBT” or the “Company”) (NASDAQ: NBTB) reported net income and diluted earnings per share for the three months ended March 31, 2025.

Net income for the first quarter of 2025 was $36.7 million, or $0.77 per diluted common share, compared to $33.8 million, or $0.71 per diluted common share, for the first quarter of 2024, and $36.0 million, or $0.76 per diluted common share, for the fourth quarter of 2024. Operating diluted earnings per share⁽¹⁾, a non-GAAP measure, was $0.80 for the first quarter of 2025, compared to $0.68 for the first quarter of 2024 and $0.77 for the fourth quarter of 2024.

CEO Comments

“Growth in both net interest income and noninterest income compared to the prior quarter and the first quarter of 2024 resulted in the generation of positive operating leverage by our team in the first quarter of 2025.” said NBT President and Chief Executive Officer Scott A. Kingsley. “Our capital position remains a key strength as we execute on strategic growth initiatives. We recently added new banking locations in South Burlington, VT and Webster, NY, and we look forward to completing our planned merger with Evans Bancorp, Inc. in early May. The addition of over 200 experienced bankers and 18 locations from Evans will firmly establish NBT’s presence in Buffalo and Rochester, Upstate New York’s two largest markets by population.”

First Quarter 2025 Financial Highlights

Net Income	Net income was $36.7 million and diluted earnings per share was $0.77
Net Interest Income / NIM	Net interest income on a fully taxable equivalent (“FTE”) basis was $107.2 million, an increase of $1.1 million from the prior quarter⁽¹⁾ Net interest margin (“NIM”) on an FTE basis was 3.44%⁽¹⁾, an increase of 10 basis points (“bps”) from the prior quarter Included in FTE net interest income was $2.2 million of acquisition-related net accretion, which was down $0.4 million from the fourth quarter of 2024 Earning asset yields of 4.95% were down 1 bp from the prior quarter Total cost of funds of 1.60% was down 11 bps from the prior quarter
Noninterest Income	Noninterest income was $47.6 million, an increase of 12.7% from the fourth quarter of 2024, excluding net securities gains (losses)
Loans and Credit Quality	Period end total loans were $9.98 billion as of March 31, 2025, up $10.4 million, or 0.4% annualized, from December 31, 2024 Net charge-offs to average loans was 0.27% annualized Nonperforming loans to total loans was 0.48% Allowance for loan losses to total loans was 1.17%
Deposits	Deposits were $11.71 billion as of March 31, 2025, up $161.8 million, or 1.4%, from December 31, 2024 Total cost of deposits was 1.49% for the first quarter of 2025, down 11 bps from the fourth quarter of 2024
Capital	Stockholders’ equity was $1.57 billion as of March 31, 2025 Tangible book value per share⁽²⁾ was $24.74 at March 31, 2025 Tangible equity to assets of 8.68%⁽¹⁾ CET1 ratio of 12.12%; Leverage ratio of 10.39%

Loans

Period end total loans were $9.98 billion at March 31, 2025, compared to $9.97 billion at December 31, 2024.
Period end total loans increased $10.4 million from December 31, 2024. Total commercial loans increased $23.9 million to $5.33 billion while total consumer loans decreased $13.6 million to $4.65 billion. Excluding the other consumer and residential solar portfolios, which are in a planned run-off status, period end loans increased $40.5 million, or 1.8% annualized. Residential real estate loan balances decreased $14.7 million from December 31, 2024 primarily due to seasonally lower originations and market conditions. In addition, the Company originated and sold $7.4 million of 30-year fixed rate mortgages in the first quarter of 2025.

Deposits

Total deposits at March 31, 2025 were $11.71 billion, compared to $11.55 billion at December 31, 2024. The $161.8 million increase in deposits from December 31, 2024 was primarily due to the inflow of seasonal municipal deposits during the quarter.
The loan to deposit ratio was 85.2% at March 31, 2025, compared to 86.3% at December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2025 was $107.2 million, an increase of $1.1 million, or 1.1%, from the fourth quarter of 2024 and an increase of $12.0 million, or 12.7%, from the first quarter of 2024. The increase in net interest income from the fourth quarter of 2024 resulted primarily from a decrease in the cost of deposits, partially offset by lower yields on loans and two fewer days in the first quarter of 2025.
The NIM on an FTE basis for the first quarter of 2025 was 3.44%, an increase of 10 bps from the fourth quarter of 2024. This increase was driven by the decrease in the cost of interest-bearing deposits. The NIM on an FTE basis increased 30 bps from the first quarter of 2024 due to higher average balances of earning assets and the yields on those assets, lower average balances of short-term borrowings and the decrease in the cost of interest-bearing deposits.
Earning asset yields for the three months ended March 31, 2025 decreased 1 bp from the prior quarter to 4.95%. Loan yields for the three months ended March 31, 2025 decreased 3 bps from the prior quarter to 5.62% primarily due to the repricing of $2.1 billion in variable rate loans from the 25 bps federal funds rate decrease in December, partially offset by loans originating at higher rates than portfolio yields during the quarter. Earnings asset yields increased 11 bps from the same quarter in the prior year as new loan yields were priced higher than portfolio yields. Average earning assets were consistent with the fourth quarter of 2024 due to the decrease in short-term interest-bearing accounts being mostly offset by an increase in securities and organic loan growth. Average earning assets grew $427.5 million, or 3.5%, from the first quarter of 2024 due to growth in average loans and securities.
Total cost of deposits, including noninterest bearing deposits, was 1.49% for the first quarter of 2025, a decrease of 11 bps from the prior quarter and a decrease of 12 bps from the same period in the prior year.
Total cost of funds for the three months ended March 31, 2025 was 1.60%, a decrease of 11 bps from the prior quarter and a decrease of 19 bps from the first quarter of 2024.

Asset Quality and Allowance for Loan Losses

Net charge-offs to total average loans for the first quarter of 2025 was 27 bps compared to 23 bps in the prior quarter primarily due to an increase in consumer net charge-offs. Included in net charge-offs for the first quarter of 2025 was a $2.1 million write-down of a nonperforming commercial real estate loan to the estimated fair value.
Nonperforming assets to total assets was 0.35% at March 31, 2025, compared to 0.38% at December 31, 2024.
Provision expense for the three months ended March 31, 2025 was $7.6 million, compared to $2.2 million for the fourth quarter of 2024. The increase in provision expense from the prior quarter was primarily due to the deterioration in economic forecasts and a higher level of net charge-offs partially offset by the run-off of the other consumer and residential solar portfolios.
The allowance for loan losses was $117.0 million, or 1.17% of total loans, at March 31, 2025, compared to $116.0 million, or 1.16% of total loans, at December 31, 2024.
The reserve for unfunded loan commitments was $4.5 million at March 31, 2025, compared to $4.4 million at December 31, 2024.

Noninterest Income

Total noninterest income, excluding securities gains (losses), was $47.6 million for the three months ended March 31, 2025, up $5.4 million, or 12.7%, from the fourth quarter of 2024, and up $4.3 million, or 10.1%, from the first quarter of 2024.
Retirement plan administration fees were up $2.9 million from the prior quarter and increased $1.6 million from the first quarter of 2024. The increase from the prior quarter was due to higher seasonal activity-based fees in the first quarter and the additional revenue from both organic growth and the acquisition of a small third-party administrator (“TPA”) business in the fourth quarter of 2024. The increase from the first quarter of 2024 was driven by the additional revenue from new customer plans, the TPA acquisition and higher market values of assets under administration.
Wealth management fees were consistent with the prior quarter and increased $1.2 million from the first quarter of 2024. The increase from the first quarter of 2024 was driven by market performance and growth in new customer accounts.
Insurance revenues increased $0.9 million from the fourth quarter of 2024 due to organic growth, higher levels of policy renewals and first quarter seasonality.
Bank owned life insurance income increased from both the fourth quarter of 2024 and the first quarter of 2024 due to a $1.3 million nonrecurring gain.

Noninterest Expense

Total noninterest expense was $99.9 million for the first quarter of 2025, compared to $100.8 million for the fourth quarter of 2024 and $91.8 million for the first quarter of 2024. Total noninterest expense decreased 1.1% compared to the previous quarter and increased 7.5% from the first quarter of 2024, excluding $1.2 million of acquisition expenses in the first quarter of 2025 and $1.0 million in the fourth quarter of 2024, respectively.
Salaries and benefits decreased 1.7% from the prior quarter driven by lower medical and other benefit costs, lower levels of incentive compensation and lower salaries due to two fewer payroll days in the quarter, partially offset by seasonally higher payroll taxes and stock-based compensation expenses. The increase from the first quarter of 2024 was driven by merit pay increases which were effective annually in March, an increase in employees supporting growth in our markets and higher medical and other benefit costs.
Occupancy costs increased $1.2 million from the prior quarter primarily due to seasonal maintenance and utilities costs. The $0.9 million increase from the first quarter of 2024 was driven by higher seasonal maintenance and utilities given the harsher winter and higher facilities costs related to new banking locations.
Other expense decreased $1.7 million from the prior quarter and was consistent with the first quarter of 2024. The decrease from the previous quarter was driven by timing of expenses and Company initiatives in the fourth quarter of 2024.

Income Taxes

The effective tax rate for the first quarter of 2025 was 22.2% which was up from 21.7% for the first quarter of 2024 primarily due to a lower level of tax-exempt income as a percentage of total taxable income.

Capital

Tangible common equity to tangible assets⁽¹⁾ was 8.68% at March 31, 2025. Tangible book value per share⁽²⁾ was $24.74 at March 31, 2025 and $23.88 at December 31, 2024.
Stockholders’ equity increased $39.6 million from December 31, 2024 driven by net income generation of $36.7 million and a $20.3 million decrease in accumulated other comprehensive loss reflecting the change in the fair value of securities available for sale, partially offset by dividends declared of $16.1 million.
As of March 31, 2025, CET1 capital ratio of 12.12%, leverage ratio of 10.39% and total risk-based capital ratio of 15.24%.

Stock Repurchase

The Company did not purchase shares of its common stock during the three months ended March 31, 2025. The Company may repurchase shares of its common stock from time to time to mitigate the potential dilutive effects of stock-based incentive plans and other potential uses of common stock for corporate purposes. As of March 31, 2025, there were 1,992,400 shares available under the Company’s share repurchase program.

Evans Bancorp, Inc. Merger

NBT and Evans anticipate completing the previously announced merger on May 2, 2025 simultaneously with the core system conversion, pending customary closing conditions. Evans had assets of $2.19 billion, deposits of $1.87 billion and net loans of $1.76 billion as of December 31, 2024. Pursuant to the merger agreement, NBT will acquire 100% of the outstanding shares of Evans in exchange for common shares of NBT. The exchange ratio will be fixed at 0.91 NBT shares for each share of Evans.

Conference Call and Webcast

The Company will host a conference call at 10:00 a.m. (Eastern) Friday, April 25, 2025, to review the first quarter 2025 financial results. The audio webcast link, along with the corresponding presentation slides, will be available on the Company’s Event Calendar page at www.nbtbancorp.com/bn/presentations-events.html#events and will be archived for twelve months.

Corporate Overview

NBT Bancorp Inc. is a financial holding company headquartered in Norwich, NY, with total assets of $13.86 billion at March 31, 2025. The Company primarily operates through NBT Bank, N.A., a full-service community bank, and through two financial services companies. NBT Bank, N.A. has 157 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, Maine and Connecticut. EPIC Retirement Plan Services, based in Rochester, NY, is a national benefits administration firm. NBT Insurance Agency, LLC, based in Norwich, NY, is a full-service insurance agency. More information about NBT and its divisions is available online at: www.nbtbancorp.com, www.nbtbank.com, www.epicrps.com and www.nbtbank.com/Insurance.

Forward-Looking Statements

This press release contains forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of phrases such as “anticipate,” “believe,” “expect,” “forecasts,” “projects,” “will,” “can,” “would,” “should,” “could,” “may,” or other similar terms. There are a number of factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, the following possibilities: (1) local, regional, national and international economic conditions, including actual or potential stress in the banking industry, and the impact they may have on the Company and its customers, and the Company’s assessment of that impact; (2) changes in the level of nonperforming assets and charge-offs; (3) changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements; (4) the effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board (“FRB”) and international trade disputes (including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation); (5) inflation, interest rate, securities market and monetary fluctuations; (6) political instability; (7) acts of war, including international military conflicts, or terrorism; (8) the timely development and acceptance of new products and services and the perceived overall value of these products and services by users; (9) changes in consumer spending, borrowing and saving habits; (10) changes in the financial performance and/or condition of the Company’s borrowers; (11) technological changes; (12) acquisition and integration of acquired businesses; (13) the possibility that NBT and Evans may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all or to successfully integrate Evans operations and those of NBT; (14) the ability to increase market share and control expenses; (15) changes in the competitive environment among financial holding companies; (16) the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiaries must comply, including those under the Dodd-Frank Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018; (17) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (18) changes in the Company’s organization, compensation and benefit plans; (19) the costs and effects of legal and regulatory developments, including the resolution of legal proceedings or regulatory or other governmental inquiries, and the results of regulatory examinations or reviews; (20) greater than expected costs or difficulties related to the integration of new products and lines of business; and (21) the Company’s success at managing the risks involved in the foregoing items.

The Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, and advises readers that various factors, including, but not limited to, those described above and other factors discussed in the Company’s annual and quarterly reports previously filed with the SEC, could affect the Company’s financial performance and could cause the Company’s actual results or circumstances for future periods to differ materially from those anticipated or projected.

Unless required by law, the Company does not undertake, and specifically disclaims any obligations to, publicly release any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Non-GAAP Measures

This press release contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles (“GAAP”). Where non-GAAP disclosures are used in this press release, the comparable GAAP measure, as well as a reconciliation to the comparable GAAP measure, is provided in the accompanying tables. Management believes that these non-GAAP measures provide useful information that is important to an understanding of the results of the Company’s core business as well as provide information standard in the financial institution industry. Non-GAAP measures should not be considered a substitute for financial measures determined in accordance with GAAP and investors should consider the Company’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Amounts previously reported in the consolidated financial statements are reclassified whenever necessary to conform to current period presentation.

Contact:	Scott A. Kingsley, President and CEO
	Annette L. Burns, Executive Vice President and CFO
	NBT Bancorp Inc.
	52 South Broad Street
	Norwich, NY 13815
	607-337-6589

NBT Bancorp Inc. and Subsidiaries
Selected Financial Data
(unaudited, dollars in thousands except per share data)

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Profitability (reported)
Diluted earnings per share	$	0.77		$	0.76		$	0.80		$	0.69		$	0.71
Weighted average diluted common shares outstanding		47,477,391			47,505,760			47,473,417			47,382,814			47,370,145
Return on average assets⁽³⁾		1.08	%		1.04	%		1.12	%		0.98	%		1.02	%
Return on average equity⁽³⁾		9.68	%		9.44	%		10.21	%		9.12	%		9.52	%
Return on average tangible common equity⁽¹⁾⁽³⁾		13.63	%		13.36	%		14.54	%		13.23	%		13.87	%
Net interest margin⁽¹⁾⁽³⁾		3.44	%		3.34	%		3.27	%		3.18	%		3.14	%

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Profitability (operating)
Diluted earnings per share⁽¹⁾	$	0.80		$	0.77		$	0.80		$	0.69		$	0.68
Return on average assets⁽¹⁾⁽³⁾		1.11	%		1.06	%		1.12	%		0.98	%		0.97	%
Return on average equity⁽¹⁾⁽³⁾		9.95	%		9.60	%		10.23	%		9.14	%		9.04	%
Return on average tangible common equity⁽¹⁾⁽³⁾		13.99	%		13.57	%		14.56	%		13.26	%		13.20	%

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Balance sheet data
Short-term interest-bearing accounts	$	37,385		$	78,973		$	231,671		$	35,207		$	156,632
Securities available for sale		1,704,677			1,574,664			1,509,338			1,439,445			1,418,471
Securities held to maturity		836,833			842,921			854,941			878,909			890,863
Net loans		9,863,267			9,853,910			9,787,541			9,733,847			9,572,777
Total assets		13,864,251			13,786,666			13,839,552			13,501,909			13,439,199
Total deposits		11,708,511			11,546,761			11,588,278			11,271,459			11,195,289
Total borrowings		312,977			414,983			456,666			476,082			518,190
Total liabilities		12,298,476			12,260,525			12,317,572			12,039,954			11,997,784
Stockholders’ equity		1,565,775			1,526,141			1,521,980			1,461,955			1,441,415

Capital
Equity to assets		11.29	%		11.07	%		11.00	%		10.83	%		10.73	%
Tangible equity ratio⁽¹⁾		8.68	%		8.42	%		8.36	%		8.11	%		7.98	%
Book value per share	$	33.13		$	32.34		$	32.26		$	31.00		$	30.57
Tangible book value per share⁽²⁾	$	24.74		$	23.88		$	23.83		$	22.54		$	22.07
Leverage ratio		10.39	%		10.24	%		10.29	%		10.16	%		10.09	%
Common equity tier 1 capital ratio		12.12	%		11.93	%		11.86	%		11.70	%		11.68	%
Tier 1 capital ratio		13.02	%		12.83	%		12.77	%		12.61	%		12.61	%
Total risk-based capital ratio		15.24	%		15.03	%		15.02	%		14.88	%		14.87	%
Common stock price (end of period)	$	42.90		$	47.76		$	44.23		$	38.60		$	36.68

NBT Bancorp Inc. and Subsidiaries
Asset Quality and Consolidated Loan Balances
(unaudited, dollars in thousands)

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Asset quality
Nonaccrual loans	$	44,829		$	45,819		$	33,338		$	34,755		$	35,189
90 days past due and still accruing		2,862			5,798			3,981			3,333			2,600
Total nonperforming loans		47,691			51,617			37,319			38,088			37,789
Other real estate owned		308			182			127			74			–
Total nonperforming assets		47,999			51,799			37,446			38,162			37,789
Allowance for loan losses		117,000			116,000			119,500			120,500			115,300

Asset quality ratios
Allowance for loan losses to total loans		1.17	%		1.16	%		1.21	%		1.22	%		1.19	%
Total nonperforming loans to total loans		0.48	%		0.52	%		0.38	%		0.39	%		0.39	%
Total nonperforming assets to total assets		0.35	%		0.38	%		0.27	%		0.28	%		0.28	%
Allowance for loan losses to total nonperforming loans		245.33	%		224.73	%		320.21	%		316.37	%		305.12	%
Past due loans to total loans⁽⁴⁾		0.32	%		0.34	%		0.36	%		0.30	%		0.33	%
Net charge-offs to average loans⁽³⁾		0.27	%		0.23	%		0.16	%		0.15	%		0.19	%

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Loan net charge-offs by line of business
Commercial	$	2,109		$	2,542		$	807		$	(8	)	$	772
Residential real estate and home equity		(25	)		(25	)		(64	)		(76	)		(32	)
Indirect auto		1,155			675			725			747			665
Residential solar and other consumer		3,315			2,517			2,452			3,036			3,274
Total loan net charge-offs	$	6,554		$	5,709		$	3,920		$	3,699		$	4,679

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Allowance for loan losses as a percentage of loans by segment
Commercial & industrial		0.76	%		0.73	%		0.73	%		0.76	%		0.79	%
Commercial real estate		1.02	%		0.95	%		1.01	%		1.00	%		0.97	%
Residential real estate		1.00	%		1.00	%		1.00	%		0.98	%		0.89	%
Auto		0.72	%		0.81	%		0.83	%		0.85	%		0.81	%
Residential solar and other consumer		3.61	%		3.64	%		3.69	%		3.78	%		3.63	%
Total		1.17	%		1.16	%		1.21	%		1.22	%		1.19	%

		2025			2024
	1st Q			4th Q			3rd Q			2nd Q			1st Q
Loans by line of business
Commercial & industrial	$	1,436,990		$	1,426,482		$	1,458,926		$	1,397,935		$	1,353,446
Commercial real estate		3,890,115			3,876,698			3,792,498			3,784,214			3,646,739
Residential real estate		2,127,588			2,142,249			2,143,766			2,134,875			2,133,289
Home equity		331,400			334,268			328,687			326,556			328,673
Indirect auto		1,309,084			1,273,253			1,235,175			1,225,786			1,190,734
Residential solar and other consumer		885,090			916,960			947,989			984,981			1,035,196
Total loans	$	9,980,267		$	9,969,910		$	9,907,041		$	9,854,347		$	9,688,077

NBT Bancorp Inc. and Subsidiaries
Consolidated Balance Sheets
(unaudited, in thousands)

	March 31,		December 31,
	2025		2024
Assets
Cash and due from banks	$	216,698	$	205,083
Short-term interest-bearing accounts		37,385		78,973
Equity securities, at fair value		41,561		42,372
Securities available for sale, at fair value		1,704,677		1,574,664
Securities held to maturity (fair value $756,404 and $749,945, respectively)		836,833		842,921
Federal Reserve and Federal Home Loan Bank stock		32,117		33,957
Loans held for sale		13,628		9,744
Loans		9,980,267		9,969,910
Less allowance for loan losses		117,000		116,000
Net loans	$	9,863,267	$	9,853,910
Premises and equipment, net		81,598		80,840
Goodwill		362,663		362,663
Intangible assets, net		34,249		36,360
Bank owned life insurance		271,723		272,657
Other assets		367,852		392,522
Total assets	$	13,864,251	$	13,786,666

Liabilities and stockholders’ equity
Demand (noninterest bearing)	$	3,399,393	$	3,446,068
Savings, NOW and money market		6,858,372		6,658,188
Time		1,450,746		1,442,505
Total deposits	$	11,708,511	$	11,546,761
Short-term borrowings		85,597		162,942
Long-term debt		4,605		29,644
Subordinated debt, net		121,579		121,201
Junior subordinated debt		101,196		101,196
Other liabilities		276,988		298,781
Total liabilities	$	12,298,476	$	12,260,525

Total stockholders’ equity	$	1,565,775	$	1,526,141

Total liabilities and stockholders’ equity	$	13,864,251	$	13,786,666

NBT Bancorp Inc. and Subsidiaries
Quarterly Consolidated Statements of Income
(unaudited, in thousands except per share data)

		2025			2024
	1st Q			4th Q			3rd Q		2nd Q			1st Q
Interest, fee and dividend income
Interest and fees on loans	$	138,052		$	141,103		$	141,991	$	136,606		$	133,146
Securities available for sale		10,262			8,773			7,815		7,562			7,124
Securities held to maturity		4,914			4,931			5,042		5,190			5,303
Other		1,176			2,930			1,382		1,408			1,364
Total interest, fee and dividend income	$	154,404		$	157,737		$	156,230	$	150,766		$	146,937
Interest expense
Deposits	$	42,588		$	46,815		$	49,106	$	46,688		$	44,339
Short-term borrowings		866			918			1,431		2,899			3,421
Long-term debt		266			293			292		291			290
Subordinated debt		1,822			1,816			1,810		1,806			1,800
Junior subordinated debt		1,639			1,790			1,922		1,908			1,913
Total interest expense	$	47,181		$	51,632		$	54,561	$	53,592		$	51,763
Net interest income	$	107,223		$	106,105		$	101,669	$	97,174		$	95,174
Provision for loan losses		7,554			2,209			2,920		8,899			5,579
Net interest income after provision for loan losses	$	99,669		$	103,896		$	98,749	$	88,275		$	89,595
Noninterest income
Service charges on deposit accounts	$	4,243		$	4,411		$	4,340	$	4,219		$	4,117
Card services income		5,317			5,652			5,897		5,587			5,195
Retirement plan administration fees		15,858			12,924			14,578		14,798			14,287
Wealth management		10,946			10,842			10,929		10,173			9,697
Insurance services		4,761			3,883			4,913		3,848			4,388
Bank owned life insurance income		3,397			2,271			1,868		1,834			2,352
Net securities (losses) gains		(104	)		222			476		(92	)		2,183
Other		3,034			2,221			2,773		2,865			3,173
Total noninterest income	$	47,452		$	42,426		$	45,774	$	43,232		$	45,392
Noninterest expense
Salaries and employee benefits	$	60,694		$	61,749		$	59,641	$	55,393		$	55,704
Technology and data services		10,238			10,220			9,920		9,249			9,750
Occupancy		9,027			7,786			7,754		7,671			8,098
Professional fees and outside services		4,952			4,843			4,871		4,565			4,853
Amortization of intangible assets		2,111			2,080			2,062		2,133			2,168
Reserve for unfunded loan commitments		90			(125	)		250		(380	)		(450	)
Acquisition expenses		1,221			988			543		–			–
Other		11,567			13,234			10,704		10,957			11,650
Total noninterest expense	$	99,900		$	100,775		$	95,745	$	89,588		$	91,773
Income before income tax expense	$	47,221		$	45,547		$	48,778	$	41,919		$	43,214
Income tax expense		10,476			9,542			10,681		9,203			9,391
Net income	$	36,745		$	36,005		$	38,097	$	32,716		$	33,823
Earnings Per Share
Basic	$	0.78		$	0.76		$	0.81	$	0.69		$	0.72
Diluted	$	0.77		$	0.76		$	0.80	$	0.69		$	0.71

NBT Bancorp Inc. and Subsidiaries
Average Quarterly Balance Sheets
(unaudited, dollars in thousands)

	Average Balance		Yield / Rates		Average Balance		Yield / Rates		Average Balance		Yield / Rates		Average Balance		Yield / Rates		Average Balance		Yield / Rates
	Q1 – 2025				Q4 – 2024				Q3 – 2024				Q2 – 2024				Q1 – 2024
Assets
Short-term interest-bearing accounts	$	63,198	4.51	%	$	184,988	5.27	%	$	62,210	4.87	%	$	48,861	5.48	%	$	47,972	4.48	%
Securities taxable⁽¹⁾		2,402,772	2.30	%		2,317,034	2.10	%		2,266,930	1.99	%		2,280,767	1.97	%		2,278,029	1.91	%
Securities tax-exempt⁽¹⁾⁽⁵⁾		220,210	3.60	%		211,493	3.46	%		217,251	3.47	%		226,032	3.56	%		230,468	3.58	%
FRB and FHLB stock		33,469	5.73	%		33,261	5.75	%		35,395	6.97	%		40,283	7.41	%		42,296	7.89	%
Loans⁽¹⁾⁽⁶⁾		9,981,487	5.62	%		9,957,879	5.65	%		9,865,412	5.74	%		9,772,014	5.63	%		9,674,892	5.54	%
Total interest-earning assets	$	12,701,136	4.95	%	$	12,704,655	4.96	%	$	12,447,198	5.01	%	$	12,367,957	4.92	%	$	12,273,657	4.84	%
Other assets		1,088,069				1,093,419				1,072,277				1,064,487				1,055,386
Total assets	$	13,789,205			$	13,798,074			$	13,519,475			$	13,432,444			$	13,329,043
Liabilities and stockholders’ equity
Money market deposit accounts	$	3,496,552	3.04	%	$	3,504,937	3.27	%	$	3,342,845	3.68	%	$	3,254,252	3.65	%	$	3,129,160	3.56	%
NOW deposit accounts		1,682,265	0.84	%		1,664,960	0.91	%		1,600,547	0.87	%		1,603,695	0.78	%		1,600,288	0.75	%
Savings deposits		1,571,673	0.05	%		1,561,703	0.05	%		1,566,316	0.05	%		1,586,753	0.05	%		1,607,659	0.04	%
Time deposits		1,450,846	3.55	%		1,446,798	3.85	%		1,442,424	4.00	%		1,391,062	4.00	%		1,352,559	4.00	%
Total interest-bearing deposits	$	8,201,336	2.11	%	$	8,178,398	2.28	%	$	7,952,132	2.46	%	$	7,835,762	2.40	%	$	7,689,666	2.32	%
Federal funds purchased		2,278	4.45	%		–	–			2,609	5.34	%		29,945	5.56	%		19,769	5.53	%
Repurchase agreements		107,496	2.87	%		116,408	3.13	%		98,035	2.80	%		86,405	1.55	%		82,419	1.55	%
Short-term borrowings		7,033	4.61	%		174	4.57	%		48,875	5.74	%		155,159	5.58	%		213,390	5.34	%
Long-term debt		27,674	3.90	%		29,657	3.93	%		29,696	3.91	%		29,734	3.94	%		29,772	3.92	%
Subordinated debt, net		121,331	6.09	%		120,967	5.97	%		120,594	5.97	%		120,239	6.04	%		119,873	6.04	%
Junior subordinated debt		101,196	6.57	%		101,196	7.04	%		101,196	7.56	%		101,196	7.58	%		101,196	7.60	%
Total interest-bearing liabilities	$	8,568,344	2.23	%	$	8,546,800	2.40	%	$	8,353,137	2.60	%	$	8,358,440	2.58	%	$	8,256,085	2.52	%
Demand deposits		3,385,080				3,438,194				3,389,894				3,323,906				3,356,607
Other liabilities		296,983				295,292				292,446				306,747				286,749
Stockholders’ equity		1,538,798				1,517,788				1,483,998				1,443,351				1,429,602
Total liabilities and stockholders’ equity	$	13,789,205			$	13,798,074			$	13,519,475			$	13,432,444			$	13,329,043
Interest rate spread			2.72	%			2.56	%			2.41	%			2.34	%			2.32	%
Net interest margin (FTE)⁽¹⁾			3.44	%			3.34	%			3.27	%			3.18	%			3.14	%


⁽¹⁾	The following tables provide the Non-GAAP reconciliations for the Non-GAAP measures contained in this release:

	Non-GAAP measures
	(unaudited, dollars in thousands except per share data)

			2025			2024
		1st Q			4th Q			3rd Q			2nd Q			1st Q
	Operating net income
	Net income	$	36,745		$	36,005		$	38,097		$	32,716		$	33,823
	Acquisition expenses		1,221			988			543			–			–
	Securities losses (gains)		104			(222	)		(476	)		92			(2,183	)
	Adjustments to net income	$	1,325		$	766		$	67		$	92		$	(2,183	)
	Adjustments to net income (net of tax)	$	1,020		$	604		$	52		$	72		$	(1,703	)
	Operating net income	$	37,765		$	36,609		$	38,149		$	32,788		$	32,120
	Operating diluted earnings per share	$	0.80		$	0.77		$	0.80		$	0.69		$	0.68

			2025			2024
		1st Q			4th Q			3rd Q			2nd Q			1st Q
	FTE adjustment
	Net interest income	$	107,223		$	106,105		$	101,669		$	97,174		$	95,174
	Add: FTE adjustment		636			619			639			658			658
	Net interest income (FTE)	$	107,859		$	106,724		$	102,308		$	97,832		$	95,832
	Average earning assets	$	12,701,136		$	12,704,655		$	12,447,198		$	12,367,957		$	12,273,657
	Net interest margin (FTE)⁽³⁾		3.44	%		3.34	%		3.27	%		3.18	%		3.14	%

	Interest income for tax-exempt securities and loans have been adjusted to an FTE basis using the statutory Federal income tax rate of 21%.

			2025			2024
		1st Q			4th Q			3rd Q			2nd Q			1st Q
	Tangible equity to tangible assets
	Total equity	$	1,565,775		$	1,526,141		$	1,521,980		$	1,461,955		$	1,441,415
	Intangible assets		396,912			399,023			397,853			398,686			400,819
	Total assets	$	13,864,451		$	13,786,666		$	13,839,552		$	13,501,909		$	13,439,199
	Tangible equity to tangible assets		8.68	%		8.42	%		8.36	%		8.11	%		7.98	%

			2025			2024
		1st Q			4th Q			3rd Q			2nd Q			1st Q
	Return on average tangible common equity
	Net income	$	36,745		$	36,005		$	38,097		$	32,716		$	33,823
	Amortization of intangible assets (net of tax)		1,583			1,560			1,547			1,600			1,626
	Net income, excluding intangibles amortization	$	38,328		$	37,565		$	39,644		$	34,316		$	35,449

	Average stockholders’ equity	$	1,538,798		$	1,517,788		$	1,483,998		$	1,443,351		$	1,429,602
	Less: average goodwill and other intangibles		398,233			399,139			399,113			399,968			401,756
	Average tangible common equity	$	1,140,565		$	1,118,649		$	1,084,885		$	1,043,383		$	1,027,846
	Return on average tangible common equity⁽³⁾		13.63	%		13.36	%		14.54	%		13.23	%		13.87	%

⁽²⁾	Non-GAAP measure – Stockholders’ equity less goodwill and intangible assets divided by common shares outstanding.
⁽³⁾	Annualized.
⁽⁴⁾	Total past due loans, defined as loans 30 days or more past due and in an accrual status.
⁽⁵⁾	Securities are shown at average amortized cost.
⁽⁶⁾	For purposes of these computations, nonaccrual loans and loans held for sale are included in the average loan balances outstanding.

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

The MIL Network –

April 25, 2025

MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

IOWA CITY, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we,” “our,” or the “Company”) today reported results for the first quarter of 2025.

First Quarter 2025 Summary¹

Net income of $15.1 million, or $0.73 per diluted common share.
- Net interest margin (tax equivalent) was 3.44%;² core net interest margin expanded 10 basis points (“bps”) to 3.36%.²
- Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.²
- Return on average assets of 1.00%.
Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
Tangible book value per share of $23.36,² an increase of 4.4%.
Common equity tier 1 (“CET1”) capital ratio improved 24 bps to 10.97%.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps² and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.36² and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

¹ First Quarter Summary compares to the fourth quarter of 2024 (the “linked quarter”) unless noted.
² Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

	As of or for the quarter ended
(Dollars in thousands, except per share amounts and as noted)	March 31,			December 31,			March 31,
		2025			2024			2024
Financial Results
Revenue	$	57,575		$	59,775		$	44,481
Credit loss expense		1,687			1,291			4,689
Noninterest expense		36,293			37,372			35,565
Net income		15,138			16,330			3,269
Adjusted earnings⁽³⁾		15,301			16,112			4,504
Per Common Share
Diluted earnings per share	$	0.73		$	0.78		$	0.21
Adjusted earnings per share⁽³⁾		0.73			0.77			0.29
Book value		27.85			26.94			33.53
Tangible book value⁽³⁾		23.36			22.37			27.14
Balance Sheet & Credit Quality
Loans In millions	$	4,304.2		$	4,315.6		$	4,414.6
Investment securities In millions		1,305.5			1,328.4			1,862.2
Deposits In millions		5,489.1			5,478.0			5,585.2
Net loan charge-offs In millions		3.1			0.7			0.2
Allowance for credit losses ratio		1.25	%		1.28	%		1.27	%
Selected Ratios
Return on average assets		1.00	%		1.03	%		0.20	%
Net interest margin, tax equivalent⁽³⁾		3.44	%		3.43	%		2.33	%
Return on average equity		10.74	%		11.53	%		2.49	%
Return on average tangible equity⁽³⁾		13.75	%		14.80	%		4.18	%
Efficiency ratio⁽³⁾		59.38	%		59.06	%		71.28	%

REVENUE REVIEW

Revenue							Change	Change
Revenue							1Q25 vs	1Q25 vs
(Dollars in thousands)	1Q25		4Q24		1Q24		4Q24	1Q24
Net interest income	$	47,439	$	48,938	$	34,731	(3)%	37	%
Noninterest income		10,136		10,837		9,750	(6)%	4	%
Total revenue, net of interest expense	$	57,575	$	59,775	$	44,481	(4)%	29	%

Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

The Company’s tax equivalent net interest margin was 3.44%³ in the first quarter of 2025, compared to 3.43%³ in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

The Company’s tax equivalent net interest margin was 3.44%³ in the first quarter of 2025, compared to 2.33%³ in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

³ Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

Noninterest Income									Change		Change
Noninterest Income									1Q25 vs		1Q25 vs
(In thousands)	1Q25			4Q24		1Q24			4Q24		1Q24
Investment services and trust activities	$	3,544		$	3,779	$	3,503		(6)%		1	%
Service charges and fees		2,131			2,159		2,144		(1)%		(1)%
Card revenue		1,744			1,833		1,943		(5)%		(10)%
Loan revenue		1,194			1,841		856		(35)%		39	%
Bank-owned life insurance		1,057			719		660		47	%	60	%
Investment securities gains, net		33			161		36		(80)%		(8)%
Other		433			345		608		26	%	(29)%
Total noninterest income	$	10,136		$	10,837	$	9,750		(6)%		4	%

MSR adjustment (included above in Loan revenue)	$	(213	)	$	164	$	(368	)	(230)%		(42)%

Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration (“SBA”) gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

EXPENSE REVIEW

Noninterest Expense							Change		Change
Noninterest Expense							1Q25 vs		1Q25 vs
(In thousands)	1Q25		4Q24		1Q24		4Q24		1Q24
Compensation and employee benefits	$	21,212	$	20,684	$	20,930	3	%	1	%
Occupancy expense of premises, net		2,588		2,772		2,813	(7)%		(8)%
Equipment		2,426		2,688		2,600	(10)%		(7)%
Legal and professional		2,226		2,534		2,059	(12)%		8	%
Data processing		1,698		1,719		1,360	(1)%		25	%
Marketing		552		793		598	(30)%		(8)%
Amortization of intangibles		1,408		1,449		1,637	(3)%		(14)%
FDIC insurance		917		980		942	(6)%		(3)%
Communications		159		154		196	3	%	(19)%
Foreclosed assets, net		74		56		358	32	%	(79)%
Other		3,033		3,543		2,072	(14)%		46	%
Total noninterest expense	$	36,293	$	37,372	$	35,565	(3)%		2	%

Merger-related Expenses
Merger-related Expenses
(In thousands)	1Q25		4Q24		1Q24
Compensation and employee benefits	$	—	$	—	$	241
Occupancy expense of premises, net		—		—		152
Equipment		—		21		149
Legal and professional		40		—		573
Data processing		—		10		61
Marketing		—		—		32
Communications		—		—		1
Other		—		—		105
Total merger-related expenses	$	40	$	31	$	1,314

Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

The Company’s effective tax rate was 22.7% in the first quarter of 2025 and the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

BALANCE SHEET REVIEW

Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program (“BTFP”) borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

Loans Held for Investment	March 31, 2025			December 31, 2024			March 31, 2024
(Dollars in thousands)	Balance	% of Total		Balance	% of Total		Balance	% of Total
Commercial and industrial	$1,140,138	26.5	%	$1,126,813	26.1	%	$1,105,718	25.0	%
Agricultural	131,409	3.1		119,051	2.8		113,029	2.6
Commercial real estate
Construction and development	293,280	6.8		324,896	7.5		403,571	9.1
Farmland	180,633	4.2		182,460	4.2		184,109	4.2
Multifamily	421,204	9.8		423,157	9.8		409,504	9.3
Other	1,425,062	33.0		1,414,168	32.7		1,440,645	32.7
Total commercial real estate	2,320,179	53.8		2,344,681	54.2		2,437,829	55.3
Residential real estate
One-to-four family first liens	471,688	11.0		477,150	11.1		495,408	11.2
One-to-four family junior liens	182,346	4.2		179,232	4.2		182,001	4.1
Total residential real estate	654,034	15.2		656,382	15.3		677,409	15.3
Consumer	58,424	1.4		68,700	1.6		80,661	1.8
Loans held for investment, net of unearned income	$4,304,184	100.0	%	$4,315,627	100.0	%	$4,414,646	100.0	%

Total commitments to extend credit	$1,080,300			$1,080,737			$1,230,612

Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

Investment Securities	March 31, 2025			December 31, 2024			March 31, 2024
(Dollars in thousands)	Balance	% of Total		Balance	% of Total		Balance	% of Total
Available for sale	$1,305,530	100.0	%	$1,328,433	100.0	%	$797,230	42.8	%
Held to maturity	—	—	%	—	—	%	1,064,939	57.2	%
Total investment securities	$1,305,530			$1,328,433			$1,862,169

Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities.

Deposits	March 31, 2025			December 31, 2024			March 31, 2024
(Dollars in thousands)	Balance	% of Total		Balance	% of Total		Balance	% of Total
Noninterest bearing deposits	$903,714	16.5	%	$951,423	17.4	%	$920,764	16.5	%
Interest checking deposits	1,283,328	23.3		1,258,191	22.9		1,349,823	24.2
Money market deposits	1,002,066	18.3		1,053,988	19.2		1,122,717	20.1
Savings deposits	877,348	16.0		820,549	15.0		728,276	13.0
Time deposits of $250 and under	818,012	14.9		826,793	15.1		787,851	14.1
Total core deposits	4,884,468	89.0		4,910,944	89.6		4,909,431	87.9
Brokered time deposits	200,000	3.6		200,000	3.7		205,000	3.7
Time deposits over $250	404,674	7.4		367,038	6.7		470,805	8.4
Total deposits	$5,489,142	100.0	%	$5,477,982	100.0	%	$5,585,236	100.0	%

Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

Borrowed Funds	March 31, 2025			December 31, 2024			March 31, 2024
(Dollars in thousands)	Balance	% of Total		Balance	% of Total		Balance	% of Total
Short-term borrowings	$1,482	1.3	%	$3,186	2.7	%	$422,988	77.6	%
Long-term debt	111,398	98.7	%	113,376	97.3	%	122,066	22.4	%
Total borrowed funds	$112,880			$116,562			$545,054

Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

Capital	March 31,			December 31,			March 31,
(Dollars in thousands)	2025 ⁽¹⁾				2024			2024
Total shareholders’ equity	$	579,625		$	559,696		$	528,040
Accumulated other comprehensive loss		(63,098	)		(72,762	)		(60,804	)
MidWestOneFinancial Group, Inc. Consolidated
Tier 1 leverage to average assets ratio		9.50	%		9.15	%		8.16	%
Common equity tier 1 capital to risk-weighted assets ratio		10.97	%		10.73	%		8.98	%
Tier 1 capital to risk-weighted assets ratio		11.84	%		11.59	%		9.75	%
Total capital to risk-weighted assets ratio		14.34	%		14.07	%		11.97	%
MidWestOneBank
Tier 1 leverage to average assets ratio		10.42	%		10.12	%		9.36	%
Common equity tier 1 capital to risk-weighted assets ratio		13.02	%		12.86	%		11.20	%
Tier 1 capital to risk-weighted assets ratio		13.02	%		12.86	%		11.20	%
Total capital to risk-weighted assets ratio		14.21	%		14.02	%		12.25	%
⁽¹⁾ Regulatory capital ratios for March 31, 2025 are preliminary

Total shareholders’ equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders’ equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

On April 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 16, 2025, to shareholders of record at the close of business on June 2, 2025.

No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. As of March 31, 2025, $15.0 million remained available under this program.

CREDIT QUALITY REVIEW

Credit Quality	As of or For the Three Months Ended
Credit Quality	March 31,			December 31,			March 31,
(Dollars in thousands)		2025			2024			2024
Credit loss expense related to loans	$	1,787		$	1,891		$	4,589
Net charge-offs		3,087			691			189
Allowance for credit losses		53,900			55,200			55,900
Pass	$	4,068,707		$	4,056,361		$	4,098,102
Special Mention		121,494			148,462			152,604
Classified		113,983			110,804			163,940
Criticized		235,477			259,266			316,544
Loans greater than 30 days past due and accruing	$	6,119		$	9,378		$	8,772
Nonperforming loans	$	17,470		$	21,847		$	29,267
Nonperforming assets		20,889			25,184			33,164
Net charge-off ratio⁽¹⁾		0.29	%		0.06	%		0.02	%
Classified loans ratio⁽²⁾		2.65	%		2.57	%		3.71	%
Criticized loans ratio⁽³⁾		5.47	%		6.01	%		7.17	%
Nonperforming loans ratio⁽⁴⁾		0.41	%		0.51	%		0.66	%
Nonperforming assets ratio⁽⁵⁾		0.33	%		0.40	%		0.49	%
Allowance for credit losses ratio⁽⁶⁾		1.25	%		1.28	%		1.27	%
Allowance for credit losses to nonaccrual loans ratio⁽⁷⁾		309.47	%		254.32	%		197.53	%
⁽¹⁾ Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
⁽²⁾ Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽³⁾ Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁴⁾ Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁵⁾ Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
⁽⁶⁾ Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁷⁾ Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

Nonperforming Loans Roll Forward	Nonaccrual	90+ Days Past Due & Still Accruing	Total
(Dollars in thousands)	Nonaccrual	90+ Days Past Due & Still Accruing	Total
Balance at December 31, 2024	$21,705	$142	$21,847
Loans placed on nonaccrual or 90+ days past due & still accruing	3,121	225	3,346
Proceeds related to repayment or sale	(4,158)	—	(4,158)
Loans returned to accrual status or no longer past due	(336)	(49)	(385)
Charge-offs	(2,774)	(259)	(3,033)
Transfers to foreclosed assets	(141)	—	(141)
Transfer to nonaccrual	—	(6)	(6)
Balance at March 31, 2025	$17,417	$53	$17,470

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED BALANCE SHEETS

	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)		2025			2024			2024			2024			2024
ASSETS
Cash and due from banks	$	68,545		$	71,803		$	72,173		$	66,228		$	68,430
Interest earning deposits in banks		182,360			133,092			129,695			35,340			29,328
Federal funds sold		—			—			—			—			4
Total cash and cash equivalents		250,905			204,895			201,868			101,568			97,762
Debt securities available for sale at fair value		1,305,530			1,328,433			1,623,104			771,034			797,230
Held to maturity securities at amortized cost		—			—			—			1,053,080			1,064,939
Total securities		1,305,530			1,328,433			1,623,104			1,824,114			1,862,169
Loans held for sale		13,836			749			3,283			2,850			2,329
Gross loans held for investment		4,315,546			4,328,413			4,344,559			4,304,619			4,433,258
Unearned income, net		(11,362	)		(12,786	)		(15,803	)		(17,387	)		(18,612	)
Loans held for investment, net of unearned income		4,304,184			4,315,627			4,328,756			4,287,232			4,414,646
Allowance for credit losses		(53,900	)		(55,200	)		(54,000	)		(53,900	)		(55,900	)
Total loans held for investment, net		4,250,284			4,260,427			4,274,756			4,233,332			4,358,746
Premises and equipment, net		90,031			90,851			90,750			91,793			95,986
Goodwill		69,788			69,788			69,788			69,388			71,118
Other intangible assets, net		23,611			25,019			26,469			27,939			29,531
Foreclosed assets, net		3,419			3,337			3,583			6,053			3,897
Other assets		246,990			252,830			258,881			224,621			226,477
Total assets	$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658		$	6,748,015
LIABILITIES
Noninterest bearing deposits	$	903,714		$	951,423		$	917,715		$	882,472		$	920,764
Interest bearing deposits		4,585,428			4,526,559			4,451,012			4,529,947			4,664,472
Total deposits		5,489,142			5,477,982			5,368,727			5,412,419			5,585,236
Short-term borrowings		1,482			3,186			410,630			414,684			422,988
Long-term debt		111,398			113,376			115,051			114,839			122,066
Other liabilities		72,747			82,089			95,836			96,430			89,685
Total liabilities		5,674,769			5,676,633			5,990,244			6,038,372			6,219,975
SHAREHOLDERS’ EQUITY
Common stock		21,580			21,580			21,580			16,581			16,581
Additional paid-in capital		414,258			414,987			414,965			300,831			300,845
Retained earnings		227,790			217,776			206,490			306,030			294,066
Treasury stock		(20,905	)		(21,885	)		(21,955	)		(22,021	)		(22,648	)
Accumulated other comprehensive loss		(63,098	)		(72,762	)		(58,842	)		(58,135	)		(60,804	)
Total shareholders’ equity		579,625			559,696			562,238			543,286			528,040
Total liabilities and shareholders’ equity	$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658		$	6,748,015

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended
	March 31,		December 31,		September 30,			June 30,		March 31,
(In thousands, except per share data)		2025		2024		2024			2024		2024
Interest income
Loans, including fees	$	59,462	$	62,458	$	62,521		$	61,643	$	57,947
Taxable investment securities		13,327		11,320		8,779			9,228		9,460
Tax-exempt investment securities		703		728		1,611			1,663		1,710
Other		1,247		3,761		785			242		418
Total interest income		74,739		78,267		73,696			72,776		69,535
Interest expense
Deposits		25,484		27,324		29,117			28,942		27,726
Short-term borrowings		25		115		5,043			5,409		4,975
Long-term debt		1,791		1,890		2,015			2,078		2,103
Total interest expense		27,300		29,329		36,175			36,429		34,804
Net interest income		47,439		48,938		37,521			36,347		34,731
Credit loss expense		1,687		1,291		1,535			1,267		4,689
Net interest income after credit loss expense		45,752		47,647		35,986			35,080		30,042
Noninterest income
Investment services and trust activities		3,544		3,779		3,410			3,504		3,503
Service charges and fees		2,131		2,159		2,170			2,156		2,144
Card revenue		1,744		1,833		1,935			1,907		1,943
Loan revenue		1,194		1,841		760			1,525		856
Bank-owned life insurance		1,057		719		879			668		660
Investment securities gains (losses), net		33		161		(140,182	)		33		36
Other		433		345		640			11,761		608
Total noninterest income (loss)		10,136		10,837		(130,388	)		21,554		9,750
Noninterest expense
Compensation and employee benefits		21,212		20,684		19,943			20,985		20,930
Occupancy expense of premises, net		2,588		2,772		2,443			2,435		2,813
Equipment		2,426		2,688		2,486			2,530		2,600
Legal and professional		2,226		2,534		2,261			2,253		2,059
Data processing		1,698		1,719		1,580			1,645		1,360
Marketing		552		793		619			636		598
Amortization of intangibles		1,408		1,449		1,470			1,593		1,637
FDIC insurance		917		980		923			1,051		942
Communications		159		154		159			191		196
Foreclosed assets, net		74		56		330			138		358
Other		3,033		3,543		3,584			2,304		2,072
Total noninterest expense		36,293		37,372		35,798			35,761		35,565
Income (loss) before income tax expense		19,595		21,112		(130,200	)		20,873		4,227
Income tax expense (benefit)		4,457		4,782		(34,493	)		5,054		958
Net income (loss)	$	15,138	$	16,330	$	(95,707	)	$	15,819	$	3,269

Earnings (loss) per common share
Basic	$	0.73	$	0.79	$	(6.05	)	$	1.00	$	0.21
Diluted	$	0.73	$	0.78	$	(6.05	)	$	1.00	$	0.21
Weighted average basic common shares outstanding		20,797		20,776		15,829			15,763		15,723
Weighted average diluted common shares outstanding		20,849		20,851		15,829			15,781		15,774
Dividends paid per common share	$	0.2425	$	0.2425	$	0.2425		$	0.2425	$	0.2425

MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS

	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share amounts)		2025			2024			2024
Earnings:
Net interest income	$	47,439		$	48,938		$	34,731
Noninterest income		10,136			10,837			9,750
Total revenue, net of interest expense		57,575			59,775			44,481
Credit loss expense		1,687			1,291			4,689
Noninterest expense		36,293			37,372			35,565
Income before income tax expense		19,595			21,112			4,227
Income tax expense		4,457			4,782			958
Net income	$	15,138		$	16,330		$	3,269
Adjusted earnings⁽¹⁾	$	15,301		$	16,112		$	4,504
Per Share Data:
Diluted earnings	$	0.73		$	0.78		$	0.21
Adjusted earnings⁽¹⁾		0.73			0.77			0.29
Book value		27.85			26.94			33.53
Tangible book value⁽¹⁾		23.36			22.37			27.14
Ending Balance Sheet:
Total assets	$	6,254,394		$	6,236,329		$	6,748,015
Loans held for investment, net of unearned income		4,304,184			4,315,627			4,414,646
Total securities		1,305,530			1,328,433			1,862,169
Total deposits		5,489,142			5,477,982			5,585,236
Short-term borrowings		1,482			3,186			422,988
Long-term debt		111,398			113,376			122,066
Total shareholders’ equity		579,625			559,696			528,040
Average Balance Sheet:
Average total assets	$	6,168,546		$	6,279,975		$	6,635,379
Average total loans		4,290,710			4,307,583			4,298,216
Average total deposits		5,398,819			5,464,900			5,481,114
Financial Ratios:
Return on average assets		1.00	%		1.03	%		0.20	%
Return on average equity		10.74	%		11.53	%		2.49	%
Return on average tangible equity⁽¹⁾		13.75	%		14.80	%		4.18	%
Efficiency ratio⁽¹⁾		59.38	%		59.06	%		71.28	%
Net interest margin, tax equivalent⁽¹⁾		3.44	%		3.43	%		2.33	%
Loans to deposits ratio		78.41	%		78.78	%		79.04	%
CET1 Ratio		10.97	%		10.73	%		8.98	%
Common equity ratio		9.27	%		8.97	%		7.83	%
Tangible common equity ratio⁽¹⁾		7.89	%		7.57	%		6.43	%
Credit Risk Profile:
Total nonperforming loans	$	17,470		$	21,847		$	29,267
Nonperforming loans ratio		0.41	%		0.51	%		0.66	%
Total nonperforming assets	$	20,889		$	25,184		$	33,164
Nonperforming assets ratio		0.33	%		0.40	%		0.49	%
Net charge-offs	$	3,087		$	691		$	189
Net charge-off ratio		0.29	%		0.06	%		0.02	%
Allowance for credit losses	$	53,900		$	55,200		$	55,900
Allowance for credit losses ratio		1.25	%		1.28	%		1.27	%
Allowance for credit losses to nonaccrual ratio		309.47	%		254.32	%		197.53	%

⁽¹⁾ Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
(Dollars in thousands)	Average Balance	Interest Income/ Expense	Average Yield/ Cost	Average Balance	Interest Income/ Expense	Average Yield/ Cost	Average Balance	Interest Income/ Expense	Average Yield/ Cost
ASSETS
Loans, including fees ^(1)(2)(3)	$4,290,710	$60,443	5.71%	$4,307,583	$63,443	5.86%	$4,298,216	$58,867	5.51%
Taxable investment securities	1,207,844	13,327	4.47%	1,080,716	11,320	4.17%	1,557,603	9,460	2.44%
Tax-exempt investment securities ⁽²⁾⁽⁴⁾	105,563	865	3.32%	109,183	896	3.26%	328,736	2,097	2.57%
Total securities held for investment⁽²⁾	1,313,407	14,192	4.38%	1,189,899	12,216	4.08%	1,886,339	11,557	2.46%
Other	124,133	1,247	4.07%	309,904	3,761	4.83%	30,605	418	5.49%
Total interest earning assets⁽²⁾	$5,728,250	$75,882	5.37%	$5,807,386	$79,420	5.44%	$6,215,160	$70,842	4.58%
Other assets	440,296			472,589			420,219
Total assets	$6,168,546			$6,279,975			$6,635,379
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$1,240,586	$2,127	0.70%	$1,252,481	$2,205	0.70%	$1,301,470	$2,890	0.89%
Money market deposits	1,002,743	6,333	2.56%	1,046,571	7,197	2.74%	1,102,543	8,065	2.94%
Savings deposits	835,731	3,057	1.48%	799,931	3,158	1.57%	694,143	2,047	1.19%
Time deposits	1,397,595	13,967	4.05%	1,410,542	14,764	4.16%	1,446,981	14,724	4.09%
Total interest bearing deposits	4,476,655	25,484	2.31%	4,509,525	27,324	2.41%	4,545,137	27,726	2.45%
Securities sold under agreements to repurchase	2,705	5	0.75%	3,640	8	0.87%	5,330	11	0.83%
Other short-term borrowings	—	20	—%	6,465	107	6.58%	409,525	4,964	4.88%
Total short-term borrowings	2,705	25	3.75%	10,105	115	4.53%	414,855	4,975	4.82%
Long-term debt	113,364	1,791	6.41%	116,018	1,890	6.48%	123,266	2,103	6.86%
Total borrowed funds	116,069	1,816	6.35%	126,123	2,005	6.32%	538,121	7,078	5.29%
Total interest bearing liabilities	$4,592,724	$27,300	2.41%	$4,635,648	$29,329	2.52%	$5,083,258	$34,804	2.75%
Noninterest bearing deposits	922,164			955,375			935,977
Other liabilities	82,280			125,536			88,611
Shareholders’ equity	571,378			563,416			527,533
Total liabilities and shareholders’ equity	$6,168,546			$6,279,975			$6,635,379
Net interest income⁽²⁾		$48,582			$50,091			$36,038
Net interest spread⁽²⁾			2.96%			2.92%			1.83%
Net interest margin⁽²⁾			3.44%			3.43%			2.33%

Total deposits⁽⁵⁾	$5,398,819	$25,484	1.91%	$5,464,900	$27,324	1.99%	$5,481,114	$27,726	2.03%
Cost of funds⁽⁶⁾			2.01%			2.09%			2.33%

⁽¹⁾	Average balance includes nonaccrual loans.
⁽²⁾	Tax equivalent. The federal statutory tax rate utilized was 21%.
⁽³⁾	Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
⁽⁴⁾	Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
⁽⁵⁾	Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
⁽⁶⁾	Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	March 31,			December 31,			September 30,			June 30,			March 31,
(Dollars in thousands, except per share data)		2025			2024			2024			2024			2024
Total shareholders’ equity	$	579,625		$	559,696		$	562,238		$	543,286		$	528,040
Intangible assets, net		(93,399	)		(94,807	)		(96,257	)		(97,327	)		(100,649	)
Tangible common equity	$	486,226		$	464,889		$	465,981		$	445,959		$	427,391

Total assets	$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658		$	6,748,015
Intangible assets, net		(93,399	)		(94,807	)		(96,257	)		(97,327	)		(100,649	)
Tangible assets	$	6,160,995		$	6,141,522		$	6,456,225		$	6,484,331		$	6,647,366

Book value per share	$	27.85		$	26.94		$	27.06		$	34.44		$	33.53
Tangible book value per share⁽¹⁾	$	23.36		$	22.37		$	22.43		$	28.27		$	27.14
Shares outstanding		20,815,715			20,777,485			20,774,919			15,773,468			15,750,471

Common equity ratio		9.27	%		8.97	%		8.58	%		8.25	%		7.83	%
Tangible common equity ratio⁽²⁾		7.89	%		7.57	%		7.22	%		6.88	%		6.43	%

⁽¹⁾ Tangible common equity divided by shares outstanding.
⁽²⁾ Tangible common equity divided by tangible assets.

	Three Months Ended
Return on Average Tangible Equity	March 31,			December 31,			March 31,
(Dollars in thousands)		2025			2024			2024
Net income	$	15,138		$	16,330		$	3,269
Intangible amortization, net of tax⁽¹⁾		1,047			1,075			1,228
Tangible net income	$	16,185		$	17,405		$	4,497

Average shareholders’ equity	$	571,378		$	563,416		$	527,533
Average intangible assets, net		(94,169	)		(95,498	)		(95,296	)
Average tangible equity	$	477,209		$	467,918		$	432,237

Return on average equity		10.74	%		11.53	%		2.49	%
Return on average tangible equity⁽²⁾		13.75	%		14.80	%		4.18	%

⁽¹⁾ The income tax rate utilized was the blended marginal tax rate.
⁽²⁾ Annualized tangible net income divided by average tangible equity.

Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)		2025			2024			2024
Net interest income	$	47,439		$	48,938		$	34,731
Tax equivalent adjustments:
Loans⁽¹⁾		981			985			920
Securities⁽¹⁾		162			168			387
Net interest income, tax equivalent	$	48,582		$	50,091		$	36,038
Loan purchase discount accretion		(1,166	)		(2,496	)		(1,152	)
Core net interest income	$	47,416		$	47,595		$	34,886

Net interest margin		3.36	%		3.35	%		2.25	%
Net interest margin, tax equivalent⁽²⁾		3.44	%		3.43	%		2.33	%
Core net interest margin⁽³⁾		3.36	%		3.26	%		2.26	%
Average interest earning assets	$	5,728,250		$	5,807,386		$	6,215,160

⁽¹⁾ The federal statutory tax rate utilized was 21%.
⁽²⁾ Annualized tax equivalent net interest income divided by average interest earning assets.
⁽³⁾ Annualized core net interest income divided by average interest earning assets.

	Three Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	March 31,			December 31,			March 31,
(Dollars in thousands)		2025			2024			2024
Loan interest income, including fees	$	59,462		$	62,458		$	57,947
Tax equivalent adjustment⁽¹⁾		981			985			920
Tax equivalent loan interest income	$	60,443		$	63,443		$	58,867
Loan purchase discount accretion		(1,166	)		(2,496	)		(1,152	)
Core loan interest income	$	59,277		$	60,947		$	57,715

Yield on loans		5.62	%		5.77	%		5.42	%
Yield on loans, tax equivalent⁽²⁾		5.71	%		5.86	%		5.51	%
Core yield on loans⁽³⁾		5.60	%		5.63	%		5.40	%
Average loans	$	4,290,710		$	4,307,583		$	4,298,216

⁽¹⁾ The federal statutory tax rate utilized was 21%.
⁽²⁾ Annualized tax equivalent loan interest income divided by average loans.
⁽³⁾ Annualized core loan interest income divided by average loans.

	Three Months Ended
Efficiency Ratio	March 31,			December 31,			March 31,
(Dollars in thousands)		2025			2024			2024
Total noninterest expense	$	36,293		$	37,372		$	35,565
Amortization of intangibles		(1,408	)		(1,449	)		(1,637	)
Merger-related expenses		(40	)		(31	)		(1,314	)
Noninterest expense used for efficiency ratio	$	34,845		$	35,892		$	32,614

Net interest income, tax equivalent⁽¹⁾	$	48,582		$	50,091		$	36,038
Plus: Noninterest income		10,136			10,837			9,750
Less: Investment securities gains, net		33			161			36
Net revenues used for efficiency ratio	$	58,685		$	60,767		$	45,752

Efficiency ratio ⁽²⁾		59.38	%		59.06	%		71.28	%

⁽¹⁾ The federal statutory tax rate utilized was 21%.
⁽²⁾ Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.

	Three Months Ended
Adjusted Earnings	March 31,			December 31,		March 31,
(Dollars in thousands, except per share data)		2025			2024		2024
Net income	$	15,138		$	16,330	$	3,269
Less: Investment securities gains, net of tax⁽¹⁾		25			119		27
Less: Mortgage servicing rights (loss) gain, net of tax⁽¹⁾		(158	)		122		(276	)
Plus: Merger-related expenses, net of tax⁽¹⁾		30			23		986
Adjusted earnings	$	15,301		$	16,112	$	4,504

Weighted average diluted common shares outstanding		20,849			20,851		15,774

Earnings per common share – diluted	$	0.73		$	0.78	$	0.21
Adjusted earnings per common share⁽²⁾	$	0.73		$	0.77	$	0.29

⁽¹⁾ The income tax rate utilized was the blended marginal tax rate.
⁽²⁾ Adjusted earnings divided by weighted average diluted common shares outstanding.

Category: Earnings

This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

Source: MidWestOne Financial Group, Inc.

Industry: Banks

Contact:

	Charles N. Reeves	Barry S. Ray
	Chief Executive Officer	Chief Financial Officer
	319.356.5800	319.356.5800

The MIL Network –

April 25, 2025

MIL-OSI: South Plains Financial, Inc. Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

LUBBOCK, Texas, April 24, 2025 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

Net income for the first quarter of 2025 was $12.3 million, compared to $16.5 million for the fourth quarter of 2024 and $10.9 million for the first quarter of 2024.
Diluted earnings per share for the first quarter of 2025 was $0.72, compared to $0.96 for the fourth quarter of 2024 and $0.64 for the first quarter of 2024.
Average cost of deposits for the first quarter of 2025 was 219 basis points, compared to 229 basis points for the fourth quarter of 2024 and 241 basis points for the first quarter of 2024.
Net interest margin, on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024.
Nonperforming assets to total assets were 0.16% at March 31, 2025, compared to 0.58% at December 31, 2024 and 0.10% at March 31, 2024.
Return on average assets for the first quarter of 2025 was 1.16%, compared to 1.53% for the fourth quarter of 2024 and 1.04% for the first quarter of 2024.
Tangible book value (non-GAAP) per share was $26.05 as of March 31, 2025, compared to $25.40 as of December 31, 2024 and $23.56 as of March 31, 2024.
The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at March 31, 2025 were 17.93%, 13.59%, and 12.04%, respectively.

Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered strong first quarter results highlighted by solid deposit growth, healthy margin expansion as our cost of funds continued to improve, and loan growth that was in line with our expectations. Additionally, the credit quality of our loan portfolio continued to strengthen in the quarter which is a testament to our conservative culture and proactive approach to managing credit. While the outlook is uncertain, we believe that we are in an advantageous position relative to our peers and are actively looking to expand in both our metropolitan and rural markets. We have the liquidity, capital, and team to take advantage of opportunities that come our way. While the economy may slow and businesses may reduce their risk appetites, we will be ready to meet the needs of our customers in these uncertain times. We will also continue to add experienced lenders who fit our culture and want to bring their customers to a better, more stable bank. However, we will maintain our conservative credit culture and will never sacrifice credit quality for growth as we work to maintain the strong credit quality of our loan portfolio. While we see many opportunities to continue growing the Bank, we believe our share price does not reflect the value that we are creating. As a result, we spent $8.3 million to repurchase 250,000 shares in the first quarter, leaving approximately $7 million under our previously announced share repurchase program.”

Results of Operations, Quarter Ended March 31, 2025

Net Interest Income

Net interest income was $38.5 million for the first quarter of 2025, compared to $38.5 million for the fourth quarter of 2024 and $35.4 million for the first quarter of 2024. Net interest margin, calculated on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024. The average yield on loans was 6.67% for the first quarter of 2025, compared to 6.69% for the fourth quarter of 2024 and 6.53% for the first quarter of 2024. The average cost of deposits was 219 basis points for the first quarter of 2025, which is 10 basis points lower than the fourth quarter of 2024 and 22 basis points lower than the first quarter of 2024.

Interest income was $59.9 million for the first quarter of 2025, compared to $61.3 million for the fourth quarter of 2024 and $58.7 million for the first quarter of 2024. Interest income decreased $1.4 million in the first quarter of 2025 from the fourth quarter of 2024, which was primarily comprised of a decrease of $692 thousand in loan interest income and a decrease of $408 thousand in interest income on other earning assets. The decline in interest income was due primarily to fewer days in the first quarter as compared to the fourth quarter of 2024. Interest income increased $1.2 million in the first quarter of 2025 compared to the first quarter of 2024. This increase was primarily due to an increase of average loans of $60.0 million and higher loan interest rates during the period, resulting in growth of $1.6 million in loan interest income.

Interest expense was $21.4 million for the first quarter of 2025, compared to $22.8 million for the fourth quarter of 2024 and $23.4 million for the first quarter of 2024. Interest expense decreased $1.4 million compared to the fourth quarter of 2024 and decreased $2.0 million compared to the first quarter of 2024. The $1.4 million decrease was primarily as a result of a 19 basis point decline in the cost of interest-bearing deposits and fewer days in the quarter, partially offset by an increase of $50.0 million in average interest-bearing deposits in the first quarter of 2025 as compared to the fourth quarter of 2024. The $2.0 million decrease was primarily as a result of a 34 basis point decline in the cost of interest-bearing deposits, partially offset by an increase of $83.4 million in average interest-bearing deposits in the first quarter of 2025 as compared to the first quarter of 2024.

Noninterest Income and Noninterest Expense

Noninterest income was $10.6 million for the first quarter of 2025, compared to $13.3 million for the fourth quarter of 2024 and $11.4 million for the first quarter of 2024. The decrease from the fourth quarter of 2024 was primarily due to a decrease of $2.8 million in mortgage banking revenues, mainly as a result of a decrease of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. The decrease in noninterest income for the first quarter of 2025 as compared to the first quarter of 2024 was primarily due to a decrease of $1.8 million in mortgage banking activities revenue mainly from a decrease of $1.6 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. This decrease in mortgage banking activities revenue was partially offset by growth in service charges on deposits revenue and bank card services and interchange revenue.

Noninterest expense was $33.0 million for the first quarter of 2025, compared to $29.9 million for the fourth quarter of 2024 and $31.9 million for the first quarter of 2024. The $3.1 million increase from the fourth quarter of 2024 was largely the result of an increase of $2.1 million in personnel expenses, primarily from annual salary adjustments, increased health insurance costs as the fourth quarter of 2024 included annual rebates received, and increased annual incentive compensation expense. There were also increases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The increase in noninterest expense for the first quarter of 2025 as compared to the first quarter of 2024 was largely the result of an increase of $453 thousand in personnel expenses, largely a result of annual salary adjustments.

Loan Portfolio and Composition

Loans held for investment were $3.08 billion as of March 31, 2025, compared to $3.06 billion as of December 31, 2024 and $3.01 billion as of March 31, 2024. The increase of $20.8 million, or 2.7% annualized, during the first quarter of 2025 as compared to the fourth quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans and commercial goods and services loans, partially offset by a seasonal decrease in agricultural production loans. As of March 31, 2025, loans held for investment increased $64.1 million, or 2.1%, from March 31, 2024, primarily attributable to organic loan growth, occurring broadly across the real estate and commercial loan segments, partially offset by decreases in auto loans and other consumer loans.

Deposits and Borrowings

Deposits totaled $3.79 billion as of March 31, 2025, compared to $3.62 billion as of December 31, 2024 and $3.64 billion as of March 31, 2024. Deposits increased by $171.6 million, or 4.7%, in the first quarter of 2025 from December 31, 2024. Deposits increased by $153.9 million, or 4.2%, at March 31, 2025 as compared to March 31, 2024. Noninterest-bearing deposits were $966.5 million as of March 31, 2025, compared to $935.5 million as of December 31, 2024 and $974.2 million as of March 31, 2024. Noninterest-bearing deposits represented 25.5% of total deposits as of March 31, 2025. The quarterly change in total deposits was mainly due to a seasonal increase of $70.2 million in public fund deposits and strong organic growth in retail and commercial deposits. The year-over-year increase in total deposits was primarily the result of continued organic growth in retail and commercial deposits.

Asset Quality

The Company recorded a provision for credit losses in the first quarter of 2025 of $420 thousand, compared to $1.2 million in the fourth quarter of 2024 and $830 thousand in the first quarter of 2024. The provision during the first quarter of 2025 was largely attributable to net charge-off activity and increased loan balances, partially offset by improved credit quality as noted below in the nonperforming assets to total assets ratio.

The ratio of allowance for credit losses to loans held for investment was 1.40% as of March 31, 2025, compared to 1.42% as of December 31, 2024 and 1.40% as of March 31, 2024.

The ratio of nonperforming assets to total assets was 0.16% as of March 31, 2025, compared to 0.58% as of December 31, 2024 and 0.10% as of March 31, 2024. A $19.0 million credit was placed back on accrual status at the end of the first quarter of 2025, based on sustained payment performance and improved credit structure. This credit was repaid in full subsequent to March 31, 2025. Annualized net charge-offs were 0.07% for the first quarter of 2025, compared to 0.11% for the fourth quarter of 2024 and 0.13% for the first quarter of 2024.

Capital

Book value per share increased to $27.33 at March 31, 2025, compared to $26.67 at December 31, 2024. The change was primarily driven by $9.8 million of net income after dividends paid and by an increase in accumulated other comprehensive income of $2.7 million, partially offset by stock repurchases of $8.3 million. The tangible common equity to tangible assets ratio (non-GAAP) decreased 28 basis points to 9.64% in the first quarter of 2025, largely due to growth of $173.0 million in tangible assets.

Conference Call

South Plains will host a conference call to discuss its first quarter 2025 financial results today, April 24, 2025, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13752910. The replay will be available until May 8, 2025.

About South Plains Financial, Inc.

South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

Available Information

The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from uncertainty in the banking industry as a whole; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; adverse changes in customer spending and savings habits; declines in commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

Contact:	Mikella Newsom, Chief Risk Officer and Secretary
	(866) 771-3347
	investors@city.bank

Source: South Plains Financial, Inc.

South Plains Financial, Inc.
Consolidated Financial Highlights – (Unaudited)
(Dollars in thousands, except share data)

	As of and for the quarter ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Selected Income Statement Data:
Interest income	$	59,922		$	61,324		$	61,640		$	59,208		$	58,727
Interest expense		21,395			22,776			24,346			23,320			23,359
Net interest income		38,527			38,548			37,294			35,888			35,368
Provision for credit losses		420			1,200			495			1,775			830
Noninterest income		10,625			13,319			10,635			12,709			11,409
Noninterest expense		33,030			29,948			33,128			32,572			31,930
Income tax expense		3,408			4,222			3,094			3,116			3,143
Net income		12,294			16,497			11,212			11,134			10,874
Per Share Data (Common Stock):
Net earnings, basic	$	0.75		$	1.01		$	0.68		$	0.68		$	0.66
Net earnings, diluted		0.72			0.96			0.66			0.66			0.64
Cash dividends declared and paid		0.15			0.15			0.14			0.14			0.13
Book value		27.33			26.67			27.04			25.45			24.87
Tangible book value (non-GAAP)		26.05			25.40			25.75			24.15			23.56
Weighted average shares outstanding, basic		16,415,862			16,400,361			16,386,079			16,425,360			16,429,919
Weighted average shares outstanding, dilutive		17,065,599			17,161,646			17,056,959			16,932,077			16,938,857
Shares outstanding at end of period		16,235,647			16,455,826			16,386,627			16,424,021			16,431,755
Selected Period End Balance Sheet Data:
Cash and cash equivalents	$	536,300		$	359,082		$	471,167		$	298,006		$	371,939
Investment securities		571,527			577,240			606,889			591,031			599,869
Total loans held for investment		3,075,860			3,055,054			3,037,375			3,094,273			3,011,799
Allowance for credit losses		42,968			43,237			42,886			43,173			42,174
Total assets		4,405,209			4,232,239			4,337,659			4,220,936			4,218,993
Interest-bearing deposits		2,826,055			2,685,366			2,720,880			2,672,948			2,664,397
Noninterest-bearing deposits		966,464			935,510			998,480			951,565			974,174
Total deposits		3,792,519			3,620,876			3,719,360			3,624,513			3,638,571
Borrowings		110,400			110,354			110,307			110,261			110,214
Total stockholders’ equity		443,743			438,949			443,122			417,985			408,712
Summary Performance Ratios:
Return on average assets (annualized)		1.16	%		1.53	%		1.05	%		1.07	%		1.04	%
Return on average equity (annualized)		11.30	%		14.88	%		10.36	%		10.83	%		10.72	%
Net interest margin⁽¹⁾		3.81	%		3.75	%		3.65	%		3.63	%		3.56	%
Yield on loans		6.67	%		6.69	%		6.68	%		6.60	%		6.53	%
Cost of interest-bearing deposits		2.93	%		3.12	%		3.36	%		3.33	%		3.27	%
Efficiency ratio		66.90	%		57.50	%		68.80	%		66.72	%		67.94	%
Summary Credit Quality Data:
Nonperforming loans	$	6,467		$	24,023		$	24,693		$	23,452		$	3,380
Nonperforming loans to total loans held for investment		0.21	%		0.79	%		0.81	%		0.76	%		0.11	%
Other real estate owned	$	600		$	530		$	973		$	755		$	862
Nonperforming assets to total assets		0.16	%		0.58	%		0.59	%		0.57	%		0.10	%
Allowance for credit losses to total loans held for investment		1.40	%		1.42	%		1.41	%		1.40	%		1.40	%
Net charge-offs to average loans outstanding (annualized)		0.07	%		0.11	%		0.11	%		0.10	%		0.13	%

	As of and for the quarter ended
	March 31 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Capital Ratios:
Total stockholders’ equity to total assets		10.07	%		10.37	%		10.22	%		9.90	%		9.69	%
Tangible common equity to tangible assets (non-GAAP)		9.64	%		9.92	%		9.77	%		9.44	%		9.22	%
Common equity tier 1 to risk-weighted assets		13.59	%		13.53	%		13.25	%		12.61	%		12.67	%
Tier 1 capital to average assets		12.04	%		12.04	%		11.76	%		11.81	%		11.51	%
Total capital to risk-weighted assets		17.93	%		17.86	%		17.61	%		16.86	%		17.00	%

(1) Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

South Plains Financial, Inc.
Average Balances and Yields – (Unaudited)
(Dollars in thousands)

	For the Three Months Ended
	March 31, 2025							March 31, 2024

	Average Balance		Interest		Yield/Rate			Average Balance		Interest		Yield/Rate
Assets
Loans	$	3,074,568	$	50,577		6.67	%	$	3,014,537	$	48,940		6.53	%
Debt securities – taxable		510,354		4,692		3.73	%		554,081		5,511		4.00	%
Debt securities – nontaxable		153,229		1,014		2.68	%		156,254		1,024		2.64	%
Other interest-bearing assets		386,979		3,859		4.04	%		298,969		3,475		4.67	%

Total interest-earning assets		4,125,130		60,142		5.91	%		4,023,841		58,950		5.89	%
Noninterest-earning assets		171,683							184,293

Total assets	$	4,296,813						$	4,208,134

Liabilities & stockholders’ equity
NOW, Savings, MMDA’s	$	2,302,344		15,511		2.73	%	$	2,285,981		17,997		3.17	%
Time deposits		441,895		4,316		3.96	%		374,852		3,666		3.93	%
Short-term borrowings		3		–		0.00	%		3		–		0.00	%
Notes payable & other long-term borrowings		–		–		0.00	%		–		–		0.00	%
Subordinated debt		63,984		835		5.29	%		63,798		835		5.26	%
Junior subordinated deferrable interest debentures		46,393		733		6.41	%		46,393		861		7.46	%

Total interest-bearing liabilities		2,854,619		21,395		3.04	%		2,771,027		23,359		3.39	%
Demand deposits		934,775							958,334
Other liabilities		66,073							70,860
Stockholders’ equity		441,346							407,913

Total liabilities & stockholders’ equity	$	4,296,813						$	4,208,134

Net interest income			$	38,747						$	35,591
Net interest margin⁽²⁾						3.81	%						3.56	%

(1) Average loan balances include nonaccrual loans and loans held for sale.
(2) Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

South Plains Financial, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)

	As of
	March 31, 2025			December 31, 2024

Assets
Cash and due from banks	$	56,006		$	54,114
Interest-bearing deposits in banks		480,294			304,968
Securities available for sale		571,527			577,240
Loans held for sale		13,931			20,542
Loans held for investment		3,075,860			3,055,054
Less: Allowance for credit losses		(42,968	)		(43,237	)
Net loans held for investment		3,032,892			3,011,817
Premises and equipment, net		50,873			52,951
Goodwill		19,315			19,315
Intangible assets		1,569			1,720
Mortgage servicing rights		24,906			26,292
Other assets		153,896			163,280
Total assets	$	4,405,209		$	4,232,239

Liabilities and Stockholders’ Equity
Noninterest-bearing deposits	$	966,464		$	935,510
Interest-bearing deposits		2,826,055			2,685,366
Total deposits		3,792,519			3,620,876
Subordinated debt		64,007			63,961
Junior subordinated deferrable interest debentures		46,393			46,393
Other liabilities		58,547			62,060
Total liabilities		3,961,466			3,793,290
Stockholders’ Equity
Common stock		16,236			16,456
Additional paid-in capital		89,799			97,287
Retained earnings		395,652			385,827
Accumulated other comprehensive income (loss)		(57,944	)		(60,621	)
Total stockholders’ equity		443,743			438,949
Total liabilities and stockholders’ equity	$	4,405,209		$	4,232,239

South Plains Financial, Inc.
Consolidated Statements of Income
(Unaudited)
(Dollars in thousands)

	Three Months Ended
	March 31, 2025		March 31, 2024

Interest income:
Loans, including fees	$	50,570	$	48,932
Other		9,352		9,795
Total interest income		59,922		58,727
Interest expense:
Deposits		19,827		21,663
Subordinated debt		835		835
Junior subordinated deferrable interest debentures		733		861
Other		–		–
Total interest expense		21,395		23,359
Net interest income		38,527		35,368
Provision for credit losses		420		830
Net interest income after provision for credit losses		38,107		34,538
Noninterest income:
Service charges on deposits		2,141		1,813
Income from insurance activities		28		34
Mortgage banking activities		2,113		3,945
Bank card services and interchange fees		3,379		3,061
Other		2,964		2,556
Total noninterest income		10,625		11,409
Noninterest expense:
Salaries and employee benefits		19,441		18,988
Net occupancy expense		4,027		3,920
Professional services		1,730		1,483
Marketing and development		905		754
Other		6,927		6,785
Total noninterest expense		33,030		31,930
Income before income taxes		15,702		14,017
Income tax expense		3,408		3,143
Net income	$	12,294	$	10,874

South Plains Financial, Inc.
Loan Composition
(Unaudited)
(Dollars in thousands)

	As of
	March 31, 2025		December 31, 2024

Loans:
Commercial Real Estate	$	1,126,800	$	1,119,063
Commercial – Specialized		366,796		388,955
Commercial – General		584,705		557,371
Consumer:
1-4 Family Residential		569,799		566,400
Auto Loans		261,629		254,474
Other Consumer		64,090		64,936
Construction		102,041		103,855
Total loans held for investment	$	3,075,860	$	3,055,054

South Plains Financial, Inc.
Deposit Composition
(Unaudited)
(Dollars in thousands)

	As of
	March 31, 2025		December 31, 2024

Deposits:
Noninterest-bearing deposits	$	966,464	$	935,510
NOW & other transaction accounts		1,302,642		498,718
MMDA & other savings		1,082,596		1,741,988
Time deposits		440,817		444,660
Total deposits	$	3,792,519	$	3,620,876

South Plains Financial, Inc.
Reconciliation of Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands)

	For the quarter ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Pre-tax, pre-provision income
Net income	$	12,294	$	16,497	$	11,212	$	11,134	$	10,874
Income tax expense		3,408		4,222		3,094		3,116		3,143
Provision for credit losses		420		1,200		495		1,775		830
Pre-tax, pre-provision income	$	16,122	$	21,919	$	14,801	$	16,025	$	14,847

	As of
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Tangible common equity
Total common stockholders’ equity	$	443,743		$	438,949		$	443,122		$	417,985		$	408,712
Less: goodwill and other intangibles		(20,884	)		(21,035	)		(21,197	)		(21,379	)		(21,562	)

Tangible common equity	$	422,859		$	417,914		$	421,925		$	396,606		$	387,150

Tangible assets
Total assets	$	4,405,209		$	4,232,239		$	4,337,659		$	4,220,936		$	4,218,993
Less: goodwill and other intangibles		(20,884	)		(21,035	)		(21,197	)		(21,379	)		(21,562	)

Tangible assets	$	4,384,325		$	4,211,204		$	4,316,462		$	4,199,557		$	4,197,431

Shares outstanding		16,235,647			16,455,826			16,386,627			16,424,021			16,431,755

Total stockholders’ equity to total assets		10.07	%		10.37	%		10.22	%		9.90	%		9.69	%
Tangible common equity to tangible assets		9.64	%		9.92	%		9.77	%		9.44	%		9.22	%
Book value per share	$	27.33		$	26.67		$	27.04		$	25.45		$	24.87
Tangible book value per share	$	26.05		$	25.40		$	25.75		$	24.15		$	23.56

The MIL Network –

April 25, 2025

MIL-OSI: Middlefield Banc Corp. Reports 2025 Three-Month Financial Results

Source: GlobeNewswire (MIL-OSI)

MIDDLEFIELD, Ohio, April 24, 2025 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the three months ended March 31, 2025.

2025 Three-Month Financial Highlights (on a year-over-year basis):

	●	Earnings per share increased 17.6% year-over-year to $0.60 per diluted share
	●	Net interest margin expanded 15 basis points to 3.69%
	●	Return on average assets (annualized) increased 12 basis points year-over-year to 1.04%
	●	Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 6 basis points to 1.56%
	●	First quarter dividend payment increased 5% to $0.21 per share

“The first quarter of 2025 was a strong period of growth, profitability and value creation for Middlefield,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “Total loans increased by 4% year-over-year to a record $1.55 billion, driven by stable economic trends within our Ohio markets, the strength of our balance sheet, and the continued execution of our strategic initiatives. The 15-basis point expansion in our net interest margin is encouraging, reflecting our disciplined approach to pricing and ongoing efforts to reduce our cost of funds. As a result, net income expanded by 15.9% year-over-year to $4.8 million, delivering a strong return on average assets of 1.04% and supporting a 5.5% increase in tangible book value per share⁽¹⁾, which reached $21.29 as of March 31, 2025.” ⁽¹⁾ See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

“During the quarter, we made significant upgrades to our infrastructure to support our multi-year technology road map. Additional investments in our physical footprint and back-office capabilities are planned throughout the year as we continue to strengthen Middlefield’s platform and support our long-term growth. We believe 2025 will be another good year of profitable expansion, reflecting our commitment to disciplined underwriting, community banking values, and ongoing reinvestment in the business,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the three months ended March 31, 2025, increased $1.1 million to $16.1 million, compared to $15.0 million for the same period last year. The increase was driven by strong loan growth and the impact of rate cuts on our short-term borrowings. The net interest margin for the three months ended March 31, 2025, was 3.69%, compared to 3.54% last year.

For the three months ended March 31, 2025, noninterest income increased $148,000 to $1.9 million, compared to $1.8 million for the same period in 2024.

Noninterest expense for the three months ended March 31, 2025, was $12.2 million, compared to $12.0 million for the same period in 2024.

Net income for the three months ended March 31, 2025, was $4.8 million, or $0.60 per diluted share, compared to $4.2 million, or $0.51 per diluted share, for the same period last year.

For the three months ended March 31, 2025, pre-tax, pre-provision net income was $5.8 million, compared to $4.8 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at March 31, 2025, increased 3.9% to $1.89 billion, compared to $1.82 billion at March 31, 2024. Total loans at March 31, 2025, were $1.55 billion, compared to $1.49 billion at March 31, 2024. The 4.0% year-over-year increase in total loans was primarily due to higher residential real estate loans, home equity lines of credit, and non-owner occupied loans, partially offset by a reduction in construction and other loans.

The investment securities available-for-sale portfolio was $165.0 million at March 31, 2025, compared with $167.9 million at March 31, 2024.

Total liabilities at March 31, 2025, increased 3.9% to $1.67 billion, compared to $1.61 billion at March 31, 2024. Total deposits at March 31, 2025, were $1.54 billion, compared to $1.45 billion at March 31, 2024. The 6.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in time and noninterest-bearing demand deposit accounts. Noninterest-bearing demand deposits were 24.0% of total deposits at March 31, 2025, compared to 27.0% at March 31, 2024. At March 31, 2025, the Company had brokered deposits of $92.4 million, compared to $90.4 million at March 31, 2024.

Michael C. Ranttila, Chief Financial Officer, stated, “We remain focused on proactively managing our funding sources to support loan growth, while optimizing our cost of funds. At March 31, 2025, we reduced our balance of Federal Home Loan Bank advances by $62.4 million from December 31, 2024, and ended the first quarter with $346.9 million in additional borrowing capacity. The combination of high levels of potentially liquid assets, cash flows from operations, and additional borrowing capacity continues to provide us with excellent liquidity levels to support our long-term growth strategies and our legacy of returning excess capital to shareholders.”

Middlefield’s CRE portfolio included the following categories at March 31, 2025:

			Percent of			Percent of			Weighted Average
(Dollar amounts in thousands)	Balance		CRE Portfolio			Loan Portfolio			Loan-to-Value

Multi-Family	$	88,737		12.9	%		5.7	%		61.3	%
Owner Occupied
Real Estate and Rental and Leasing		61,835		9.0	%		4.0	%		55.7	%
Other Services (except Public Administration)		32,815		4.8	%		2.1	%		54.1	%
Manufacturing		18,397		2.7	%		1.2	%		44.7	%
Agriculture, Forestry, Fishing and Hunting		12,628		1.8	%		0.8	%		36.4	%
Other		59,737		8.6	%		3.9	%		54.0	%
Total Owner Occupied	$	185,412		26.9	%		12.0	%
Non-Owner Occupied
Real Estate and Rental and Leasing		343,169		49.9	%		22.1	%		55.5	%
Accommodation and Food Services		40,039		5.8	%		2.6	%		55.9	%
Health Care and Social Assistance		19,328		2.8	%		1.2	%		65.5	%
Manufacturing		7,428		1.1	%		0.5	%		49.5	%
Other		3,657		0.6	%		0.2	%		85.4	%
Total Non-Owner Occupied	$	413,621		60.2	%		26.6	%
Total CRE	$	687,770		100.0	%		44.3	%

Stockholders’ Equity and Dividends
At March 31, 2025, stockholders’ equity was $213.8 million, compared to $205.6 million at March 31, 2024. The 4.0% year-over-year increase in stockholders’ equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders’ equity at March 31, 2025, was $26.46, compared to $25.48 at March 31, 2024.

At March 31, 2025, tangible stockholders’ equity⁽¹⁾ was $172.1 million, compared to $162.8 million at March 31, 2024. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $21.29 at March 31, 2025, compared to $20.18 at March 31, 2024. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the three months ended March 31, 2025, the Company declared cash dividends of $0.21 per share, totaling $1.7 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01 or 5% from the previous quarter’s $0.20 per share cash dividend.

For the three months ended March 31, 2025, the Company did not repurchase any shares of its common stock. The Company repurchased 43,858 shares of its common stock, at an average price of $24.00 per share during the same period in 2024.

At March 31, 2025, the Company’s equity-to-assets ratio was 11.32%, compared to 11.32% at March 31, 2024.

Asset Quality

For the 2025 first quarter, the Company recorded a provision for credit losses of $95,000, compared to a recovery of credit losses of $136,000 for the same period of 2024.

Net recoveries were $209,000, or (0.06%) of average loans, annualized, for the 2025 first quarter, compared to net recoveries of $68,000, or (0.02%) of average loans, annualized, for the same period of 2024.

Nonperforming loans at March 31, 2025, were $29.6 million, compared to $10.8 million at March 31, 2024. The increase in nonperforming assets is primarily the result of a $12.4 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at March 31, 2025, stood at $22.4 million, or 1.44% of total loans, compared to $21.1 million, or 1.41% of total loans at March 31, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

Mr. Ranttila continued, “Asset quality remains stable, with nonperforming assets to total assets of 1.56% at March 31, 2025, compared to 1.62% at December 31, 2024. Nonperforming assets at March 31, 2025, included two relationships that moved into nonaccrual status in the second quarter of 2024 and one that moved into nonaccrual status in the third quarter of 2024. We remain well reserved for potential credit losses with an allowance for credit losses to total loans of 1.44% at March 31, 2025, compared to 1.48% at December 31, 2024, and 1.41% at March 31, 2024. We continue to expect stable economic activity across our Central, Western, and Northeast Ohio markets that will support loan demand and asset quality throughout 2025.”

About Middlefield Banc Corp.

Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.89 billion at March 31, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank.

NON-GAAP FINANCIAL MEASURES

This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.

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

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

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	March 31,		December 31,		September 30,		June 30,		March 31,
Balance Sheets (period end)	2025		2024		2024		2024		2024
ASSETS
Cash and due from banks	$	56,150	$	46,037	$	61,851	$	50,496	$	44,816
Federal funds sold		10,720		9,755		12,022		1,762		1,438
Cash and cash equivalents		66,870		55,792		73,873		52,258		46,254
Investment securities available for sale, at fair value		165,014		165,802		169,895		166,424		167,890
Other investments		1,021		855		895		881		907
Loans held for sale		–		–		249		–		–
Loans:
Commercial real estate:
Owner occupied		185,412		181,447		187,313		182,809		178,543
Non-owner occupied		413,621		412,291		407,159		385,648		398,845
Multifamily		88,737		89,849		94,798		86,951		81,691
Residential real estate		351,274		353,442		345,748		337,121		331,480
Commercial and industrial		235,547		229,034		213,172		234,702		227,433
Home equity lines of credit		147,154		143,379		137,761		131,047		129,287
Construction and other		122,653		103,608		111,550		132,530		135,716
Consumer installment		5,951		6,564		7,030		6,896		7,131
Total loans		1,550,349		1,519,614		1,504,531		1,497,704		1,490,126
Less allowance for credit losses		22,401		22,447		22,526		21,795		21,069
Net loans		1,527,948		1,497,167		1,482,005		1,475,909		1,469,057
Premises and equipment, net		22,339		20,565		20,528		20,744		21,035
Goodwill		36,356		36,356		36,356		36,356		36,356
Core deposit intangibles		5,361		5,611		5,869		6,126		6,384
Bank-owned life insurance		34,866		35,259		35,049		34,802		34,575
Accrued interest receivable and other assets		28,581		35,952		32,916		34,686		34,210
TOTAL ASSETS	$	1,888,356	$	1,853,359	$	1,857,635	$	1,828,186	$	1,816,668

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
LIABILITIES
Deposits:
Noninterest-bearing demand	$	369,492		$	377,875		$	390,933		$	387,024		$	390,185
Interest-bearing demand		222,953			208,291			218,002			206,542			209,015
Money market		481,664			414,074			376,619			355,630			318,823
Savings		189,943			197,749			199,984			192,472			196,721
Time		275,673			247,704			327,231			327,876			332,165
Total deposits		1,539,725			1,445,693			1,512,769			1,469,544			1,446,909
Federal Home Loan Bank advances		110,000			172,400			106,000			125,000			137,000
Other borrowings		11,609			11,660			11,711			11,762			11,812
Accrued interest payable and other liabilities		13,229			13,044			16,450			15,092			15,372
TOTAL LIABILITIES		1,674,563			1,642,797			1,646,930			1,621,398			1,611,093
STOCKHOLDERS’ EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,960,503
shares issued, 8,081,193 shares outstanding as of March 31, 2025		162,195			161,999			161,916			161,823			161,823
Additional paid-in capital		515			246			108			–			–
Retained earnings		112,432			109,299			106,067			105,342			102,791
Accumulated other comprehensive loss		(20,440	)		(20,073	)		(16,477	)		(19,468	)		(18,130	)
Treasury stock, at cost; 1,879,310 shares as of March 31, 2025		(40,909	)		(40,909	)		(40,909	)		(40,909	)		(40,909	)
TOTAL STOCKHOLDERS’ EQUITY		213,793			210,562			210,705			206,788			205,575

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,888,356		$	1,853,359		$	1,857,635		$	1,828,186		$	1,816,668

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended
	March 31,			December 31,			September 30,		June 30,			March 31,
Statements of Income	2025			2024			2024		2024			2024

INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	23,387		$	23,308		$	23,441	$	23,422		$	22,395
Interest-earning deposits in other institutions		291			320			348		386			437
Federal funds sold		155			151			143		122			152
Investment securities:
Taxable interest		530			528			528		505			467
Tax-exempt interest		960			961			962		966			972
Dividends on stock		150			170			191		198			189
Total interest and dividend income		25,473			25,438			25,613		25,599			24,612
INTEREST EXPENSE
Deposits		7,885			8,582			8,792		8,423			7,466
Short-term borrowings		1,347			1,128			1,575		1,920			1,993
Other borrowings		143			173			173		173			184
Total interest expense		9,375			9,883			10,540		10,516			9,643
NET INTEREST INCOME		16,098			15,555			15,073		15,083			14,969
Provision for (recovery of) credit losses		95			(177	)		2,234		87			(136	)
NET INTEREST INCOME AFTER PROVISION
FOR (RECOVERY OF) CREDIT LOSSES		16,003			15,732			12,839		14,996			15,105
NONINTEREST INCOME
Service charges on deposit accounts		989			1,068			959		971			909
Gain (Loss) on equity securities		(34	)		56			14		(27	)		(52	)
Earnings on bank-owned life insurance		493			230			246		227			227
Gain on sale of loans		24			64			56		69			10
Revenue from investment services		268			237			206		269			204
Gross rental income		–			1			–		–			67
Other income		204			258			262		251			431
Total noninterest income		1,944			1,914			1,743		1,760			1,796

NONINTEREST EXPENSE
Salaries and employee benefits		6,557			5,996			6,201		6,111			6,333
Occupancy expense		687			596			627		601			552
Equipment expense		225			221			203		261			240
Data processing costs		1,271			1,174			1,214		1,135			1,217
Ohio state franchise tax		399			390			399		397			397
Federal deposit insurance expense		267			293			255		256			251
Professional fees		598			611			539		557			558
Advertising expense		364			371			283		508			419
Software amortization expense		90			83			74		21			22
Core deposit intangible amortization		249			258			257		258			258
Gross other real estate owned expenses		–			–			–		–			99
Other expense		1,486			1,810			1,819		1,797			1,619
Total noninterest expense		12,193			11,803			11,871		11,902			11,965

Income before income taxes		5,754			5,843			2,711		4,854			4,936
Income taxes		924			995			371		690			769

NET INCOME	$	4,830		$	4,848		$	2,340	$	4,164		$	4,167

PTPP ⁽¹⁾	$	5,849		$	5,666		$	4,945	$	4,941		$	4,800

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Per common share data
Net income per common share – basic	$	0.60		$	0.60		$	0.29		$	0.52		$	0.52
Net income per common share – diluted	$	0.60		$	0.60		$	0.29		$	0.52		$	0.51
Dividends declared per share	$	0.21		$	0.20		$	0.20		$	0.20		$	0.20
Book value per share (period end)	$	26.46		$	26.08		$	26.11		$	25.63		$	25.48
Tangible book value per share (period end) (1) (2)	$	21.29		$	20.88		$	20.87		$	20.37		$	20.18
Dividends declared	$	1,697		$	1,616		$	1,615		$	1,613		$	1,613
Dividend yield		3.05	%		2.84	%		2.76	%		3.34	%		3.37	%
Dividend payout ratio		35.13	%		33.33	%		69.02	%		38.74	%		38.71	%
Average shares outstanding – basic		8,078,805			8,071,905			8,071,032			8,067,144			8,091,203
Average shares outstanding – diluted		8,097,545			8,092,357			8,086,872			8,072,499			8,096,317
Period ending shares outstanding		8,081,193			8,073,708			8,071,032			8,067,144			8,067,144

Selected ratios
Return on average assets (Annualized)		1.04	%		1.04	%		0.50	%		0.91	%		0.92	%
Return on average equity (Annualized)		9.22	%		9.19	%		4.45	%		8.15	%		8.16	%
Return on average tangible common equity (1) (3)		11.48	%		11.50	%		5.58	%		10.29	%		10.30	%
Efficiency (4)		65.22	%		65.05	%		67.93	%		67.97	%		68.68	%
Equity to assets at period end		11.32	%		11.36	%		11.34	%		11.31	%		11.32	%
Noninterest expense to average assets		0.65	%		0.63	%		0.66	%		0.64	%		0.66	%

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

⁽²⁾ Calculated by dividing tangible common equity by shares outstanding.

⁽³⁾ Calculated by dividing annualized net income for each period by average tangible common equity.

⁽⁴⁾ The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income.

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Yields	2025			2024			2024			2024			2024
Interest-earning assets:
Loans receivable (1)		6.17	%		6.12	%		6.19	%		6.27	%		6.11	%
Investment securities (1) (2)		3.69	%		3.63	%		3.62	%		3.59	%		3.52	%
Interest-earning deposits with other banks		3.57	%		4.23	%		4.27	%		4.59	%		4.88	%
Total interest-earning assets		5.81	%		5.78	%		5.84	%		5.92	%		5.77	%
Deposits:
Interest-bearing demand deposits		2.13	%		2.07	%		2.16	%		1.93	%		1.86	%
Money market deposits		3.38	%		3.81	%		3.93	%		3.95	%		3.81	%
Savings deposits		0.82	%		0.75	%		0.71	%		0.64	%		0.58	%
Certificates of deposit		3.93	%		4.21	%		4.49	%		4.57	%		4.06	%
Total interest-bearing deposits		2.82	%		3.05	%		3.17	%		3.15	%		2.88	%
Non-Deposit Funding:
Borrowings		4.58	%		4.93	%		5.54	%		5.60	%		5.61	%
Total interest-bearing liabilities		3.01	%		3.21	%		3.41	%		3.45	%		3.23	%
Cost of deposits		2.10	%		2.24	%		2.33	%		2.30	%		2.08	%
Cost of funds		2.30	%		2.41	%		2.58	%		2.61	%		2.42	%
Net interest margin (3)		3.69	%		3.56	%		3.46	%		3.51	%		3.54	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
Asset quality data	2025			2024			2024			2024			2024
(Dollar amounts in thousands, unaudited)
Nonperforming assets ⁽¹⁾	$	29,550		$	29,984		$	30,078		$	15,961		$	10,831

Allowance for credit losses	$	22,401		$	22,447		$	22,526		$	21,795		$	21,069
Allowance for credit losses/total loans		1.44	%		1.48	%		1.50	%		1.46	%		1.41	%
Net charge-offs (recoveries):
Quarter-to-date	$	(209	)	$	151		$	1,382		$	(29	)	$	(68	)
Year-to-date		(209	)		1,436			1,285			(97	)		(68	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		(0.06	%)		0.04	%		0.36	%		(0.01	%)		(0.02	%)
Year-to-date		(0.06	%)		0.10	%		0.11	%		(0.01	%)		(0.02	%)

Nonperforming loans/total loans		1.91	%		1.97	%		2.00	%		1.07	%		0.73	%
Allowance for credit losses/nonperforming loans		75.81	%		74.86	%		74.89	%		136.55	%		194.52	%
Nonperforming assets/total assets		1.56	%		1.62	%		1.62	%		0.87	%		0.60	%

(1) Nonperforming assets consist of nonperforming loans.

MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity	For the Three Months Ended
(Dollar amounts in thousands, unaudited)	March 31,		December 31,		September 30,		June 30,		March 31,
	2025		2024		2024		2024		2024

Stockholders’ equity	$	213,793	$	210,562	$	210,705	$	206,788	$	205,575
Less goodwill and other intangibles		41,717		41,967		42,225		42,482		42,740
Tangible common equity	$	172,076	$	168,595	$	168,480	$	164,306	$	162,835

Shares outstanding		8,081,193		8,073,708		8,071,032		8,067,144		8,067,144
Tangible book value per share	$	21.29	$	20.88	$	20.87	$	20.37	$	20.18

Reconciliation of Average Equity to Return on Average Tangible Common Equity	For the Three Months Ended

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024

Average stockholders’ equity	$	212,465		$	209,864		$	209,096		$	205,379		$	205,342
Less average goodwill and other intangibles		41,839			42,092			42,350			42,607			42,654
Average tangible common equity	$	170,626		$	167,772		$	166,746		$	162,772		$	162,688

Net income	$	4,830		$	4,848		$	2,340		$	4,164		$	4,167
Return on average tangible common equity (annualized)		11.48	%		11.50	%		5.58	%		10.29	%		10.30	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended

	March 31,		December 31,			September 30,		June 30,		March 31,
	2025		2024			2024		2024		2024

Net income	$	4,830	$	4,848		$	2,340	$	4,164	$	4,167
Add income taxes		924		995			371		690		769
Add provision for (recovery of) credit losses		95		(177	)		2,234		87		(136	)
PTPP	$	5,849	$	5,666		$	4,945	$	4,941	$	4,800

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended
	March 31,							March 31,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable (1)	$	1,537,337	$	23,387		6.17	%	$	1,476,543	$	22,395		6.11	%
Investment securities (1) (2)		191,996		1,490		3.69	%		191,851		1,439		3.56	%
Interest-earning deposits with other banks (3)		67,661		596		3.57	%		64,139		778		4.88	%
Total interest-earning assets		1,796,994		25,473		5.81	%		1,732,533		24,612		5.78	%
Noninterest-earning assets		84,542							90,151
Total assets	$	1,881,536						$	1,822,684
Interest-bearing liabilities:
Interest-bearing demand deposits	$	220,192	$	1,154		2.13	%	$	211,009	$	978		1.86	%
Money market deposits		458,446		3,816		3.38	%		298,479		2,827		3.81	%
Savings deposits		192,931		388		0.82	%		201,080		290		0.58	%
Certificates of deposit		261,006		2,527		3.93	%		333,871		3,371		4.06	%
Short-term borrowings		120,238		1,347		4.54	%		144,357		1,993		5.55	%
Other borrowings		11,639		143		4.98	%		11,840		184		6.25	%
Total interest-bearing liabilities		1,264,452		9,375		3.01	%		1,200,636		9,643		3.23	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		390,354							400,209
Other liabilities		14,265							16,497
Stockholders’ equity		212,465							205,342
Total liabilities and stockholders’ equity	$	1,881,536						$	1,822,684
Net interest income			$	16,098						$	14,969
Interest rate spread (4)						2.80	%						2.55	%
Net interest margin (5)						3.69	%						3.54	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.12	%						144.30	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $281 for the three months ended March 31, 2025 and 2024, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	March 31,							December 31,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable (1)	$	1,537,337	$	23,387		6.17	%	$	1,517,051	$	23,308		6.12	%
Investment securities (1) (2)		191,996		1,490		3.69	%		191,390		1,489		3.63	%
Interest-earning deposits with other banks (3)		67,661		596		3.57	%		60,241		641		4.23	%
Total interest-earning assets		1,796,994		25,473		5.81	%		1,768,682		25,438		5.78	%
Noninterest-earning assets		84,542							88,205
Total assets	$	1,881,536						$	1,856,887
Interest-bearing liabilities:
Interest-bearing demand deposits	$	220,192	$	1,154		2.13	%	$	216,492	$	1,126		2.07	%
Money market deposits		458,446		3,816		3.38	%		393,298		3,768		3.81	%
Savings deposits		192,931		388		0.82	%		197,257		373		0.75	%
Certificates of deposit		261,006		2,527		3.93	%		313,582		3,315		4.21	%
Short-term borrowings		120,238		1,347		4.54	%		93,200		1,128		4.81	%
Other borrowings		11,639		143		4.98	%		11,690		173		5.89	%
Total interest-bearing liabilities		1,264,452		9,375		3.01	%		1,225,519		9,883		3.21	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		390,354							404,428
Other liabilities		14,265							17,076
Stockholders’ equity		212,465							209,864
Total liabilities and stockholders’ equity	$	1,881,536						$	1,856,887
Net interest income			$	16,098						$	15,555
Interest rate spread (4)						2.80	%						2.57	%
Net interest margin (5)						3.69	%						3.56	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.12	%						144.32	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $272 and $280 for the three months ended March 31, 2025 and December 31, 2024, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

The MIL Network –

April 25, 2025

MIL-OSI: USCB Financial Holdings, Inc. Reports Record Fully Diluted EPS of $0.38 for Q1 2025, a 65% increase over same period last year; ROAA of 1.19% and ROAE of 14.15%

Source: GlobeNewswire (MIL-OSI)

MIAMI, April 24, 2025 (GLOBE NEWSWIRE) — USCB Financial Holdings, Inc. (the “Company”) (NASDAQ: USCB), the holding company for U.S. Century Bank (the “Bank”), reported net income of $7.7 million or $0.38 per fully diluted share for the three months ended March 31, 2025, compared with net income of $4.6 million or $0.23 per fully diluted share for the same period in 2024.

“We are proud to report a record quarter, highlighted by fully diluted EPS of $0.38. This performance reflects solid execution across all of our strategic priorities including annualized double-digit loan and deposit growth, maintaining disciplined pricing, clean asset quality, and strong cost controls. Our return on average assets was 1.19%, the highest since the fourth quarter of 2021,” said Luis de la Aguilera. Chairman, President and CEO. “Our continued focus on asset quality, profitability, and growing the Bank in a safe and sound manner has positioned the Company well to navigate the current challenging market and economic environment with confidence and resilience.”

Unless otherwise stated, all percentage comparisons in the bullet points below are calculated at or for the quarter ended March 31, 2025 compared to at or for the quarter ended March 31, 2024 and annualized where appropriate.

Profitability

Annualized return on average assets for the quarter ended March 31, 2025 was 1.19% compared to 0.76% for the first quarter of 2024.
Annualized return on average stockholders’ equity for the quarter ended March 31, 2025 was 14.15% compared to 9.61% for the first quarter of 2024.
The efficiency ratio for the quarter ended March 31, 2025 was 52.79% compared to 63.41% for the first quarter of 2024.
Net interest margin for the quarter ended March 31, 2025 was 3.10% compared to 2.62% for the first quarter of 2024.
Net interest income before provision for credit losses was $19.1 million for the quarter ended March 31, 2025, an increase of $4.0 million or 26.1% compared to $15.2 million for the same period in 2024.

Balance Sheet

Total assets were $2.7 billion at March 31, 2025, representing an increase of $188.2 million or 7.6% from $2.5 billion at March 31, 2024.
Total loans held for investment were $2.0 billion at March 31, 2025, representing an increase of $215.0 million or 11.8% from $1.8 billion at March 31, 2024.
Total deposits were $2.3 billion at March 31, 2025, representing an increase of $206.8 million or 9.8% from $2.1 billion at March 31, 2024.
Total stockholders’ equity was $225.1 million at March 31, 2025, representing an increase of $30.1 million or 15.4% from $195.0 million at March 31, 2024. Total stockholders’ equity included accumulated comprehensive loss of $41.1 million at March 31, 2025 compared to accumulated comprehensive loss of $45.4 million at March 31, 2024.

Asset Quality

The allowance for credit losses (“ACL”) increased by $3.3 million to $24.7 million at March 31, 2025 from $21.5 million at March 31, 2024.
The ACL represented 1.22% of total loans at March 31, 2025 and 1.18% at March 31, 2024.
The provision for credit loss was $681 thousand for the quarter ended March 31, 2025, an increase of $271 thousand compared to $410 thousand for the same period in 2024.
The ratio of non-performing loans to total loans was 0.20% at March 31, 2025 and 0.03% at March 31, 2024. Non-performing loans totaled $4.2 million at March 31, 2025 and $456 thousand at March 31, 2024.

Non-interest Income and Non-interest Expense

Non-interest income was $3.7 million for the three months ended March 31, 2025, an increase of $1.3 million or 50.8% compared to $2.5 million for the same period in 2024.
Non-interest expense was $12.1 million for the three months ended March 31, 2025, an increase of $0.9 million or 7.9% compared to $11.2 million for the same period in 2024.

Capital

On April 21, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.10 per share of the Company’s Class A common stock. The dividend will be paid on June 5, 2025 to shareholders of record at the close of business on May 15, 2025.
As of March 31, 2025, total risk-based capital ratios for the Company and the Bank were 13.72% and 13.65%, respectively.
Tangible book value per common share (a non-GAAP measure) was $11.23 at March 31, 2025, representing increase of $0.42 or 3.9% from $10.81 at December 31, 2024. At March 31, 2025, tangible book value per common share was negatively affected by ($2.05) per share due to an accumulated comprehensive loss of $41.1 million mostly due to changes in the market value of the Company’s available for sale securities. At December 31, 2024, tangible book value per common share was negatively affected by ($2.24) per share due to an accumulated comprehensive loss of $44.5 million.

Conference Call and Webcast

The Company will host a conference call on Friday, April 25, 2025, at 11:00 a.m. Eastern Time to discuss the Company’s unaudited financial results for the quarter ended March 31, 2025. To access the conference call, dial (833) 816-1416 (U.S. toll-free) and ask to join the USCB Financial Holdings Call.

Additionally, interested parties can listen to a live webcast of the call in the “Investor Relations” section of the Company’s website at www.uscentury.com. An archived version of the webcast will be available in the same location shortly after the live call has ended.

About USCB Financial Holdings, Inc.

USCB Financial Holdings, Inc. is the bank holding company for U.S. Century Bank. Established in 2002, U.S. Century Bank is one of the largest community banks headquartered in Miami, and one of the largest community banks in the State of Florida. U.S. Century Bank is rated 5-Stars by BauerFinancial, the nation’s leading independent bank rating firm. U.S. Century Bank offers customers a wide range of financial products and services and supports numerous community organizations, including the Greater Miami Chamber of Commerce, the South Florida Hispanic Chamber of Commerce, and ChamberSouth. For more information about us or to find a banking center near you, please call (305) 715-5200 or visit www.uscentury.com.

Forward-Looking Statements

This earnings release may contain statements that are not historical in nature and are intended to be, and are hereby identified as, forward-looking statements for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are those that are not historical facts. The words “may,” “will,” “anticipate,” “could,” “should,” “would,” “believe,” “contemplate,” “expect,” “aim,” “plan,” “estimate,” “seek,” “continue,” and “intend,”, the negative of these terms, as well as other similar words and expressions of the future, are intended to identify forward-looking statements. These forward-looking statements include, but are not limited to, statements related to our projected growth, anticipated future financial performance, and management’s long-term performance goals, as well as statements relating to the anticipated effects on our results of operations and financial condition from expected or potential developments or events, or business and growth strategies, including anticipated internal growth and balance sheet restructuring.

These forward-looking statements involve significant risks and uncertainties that could cause our actual results to differ materially from those anticipated in such statements. Potential risks and uncertainties include, but are not limited to:

the strength of the United States economy in general and the strength of the local economies in which we conduct operations;
our ability to successfully manage interest rate risk, credit risk, liquidity risk, and other risks inherent to our industry;
the accuracy of our financial statement estimates and assumptions, including the estimates used for our credit loss reserve and deferred tax asset valuation allowance;
the efficiency and effectiveness of our internal control procedures and processes;
our ability to comply with the extensive laws and regulations to which we are subject, including the laws for each jurisdiction where we operate;
adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry;
deposit attrition and the level of our uninsured deposits;
legislative or regulatory changes and changes in accounting principles, policies, practices or guidelines, including the on-going effects of the Current Expected Credit Losses (“CECL”) standard;
the lack of a significantly diversified loan portfolio and the concentration in the South Florida market, including the risks of geographic, depositor, and industry concentrations, including our concentration in loans secured by real estate, in particular, commercial real estate;
the effects of climate change;
the concentration of ownership of our common stock;
fluctuations in the price of our common stock;
our ability to fund or access the capital markets at attractive rates and terms and manage our growth, both organic growth as well as growth through other means, such as future acquisitions;
inflation, interest rate, unemployment rate, and market and monetary fluctuations;
the effects of potential new or increased tariffs and trade restrictions
impacts of international hostilities and geopolitical events;
increased competition and its effect on the pricing of our products and services as well as our interest rate spread and net interest margin;
the loss of key employees;
the effectiveness of our risk management strategies, including operational risks, including, but not limited to, client, employee, or third-party fraud and security breaches; and
other risks described in this earnings release and other filings we make with the Securities and Exchange Commission (“SEC”).

All forward-looking statements are necessarily only estimates of future results, and there can be no assurance that actual results will not differ materially from expectations. Therefore, you are cautioned not to place undue reliance on any forward-looking statements. Further, forward-looking statements included in this earnings release are made only as of the date hereof, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events, unless required to do so under the federal securities laws. You should also review the risk factors described in the reports the Company filed or will file with the SEC.

Non-GAAP Financial Measures

This earnings release includes financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). This financial information includes certain operating performance measures. Management has included these non-GAAP measures because it believes these measures may provide useful supplemental information for evaluating the Company’s operations and underlying performance trends. Further, management uses these measures in managing and evaluating the Company’s business and intends to refer to them in discussions about our operations and performance. Operating performance measures should be viewed in addition to, and not as an alternative to or substitute for, measures determined in accordance with GAAP, and are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the ‘Non-GAAP Reconciliation Tables’ included in the exhibits to this earnings release.

All numbers included in this press release are unaudited unless otherwise noted.

Contacts:

Investor Relations
InvestorRelations@uscentury.com

Media Relations
Martha Guerra-Kattou
MGuerra@uscentury.com


USCB FINANCIAL HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share data)

	Three Months Ended March 31,
	2025		2024
Interest income:
Loans, including fees	$	30,245	$	26,643
Investment securities		3,024		2,811
Interest-bearing deposits in financial institutions		709		1,433
Total interest income		33,978		30,887
Interest expense:
Interest-bearing checking deposits		338		369
Savings and money market deposits		9,335		10,394
Time deposits		3,918		3,294
FHLB advances and other borrowings		1,272		1,672
Total interest expense		14,863		15,729
Net interest income before provision for credit losses		19,115		15,158
Provision for credit losses		681		410
Net interest income after provision for credit losses		18,434		14,748
Non-interest income:
Service fees		2,331		1,651
Gain on sale of loans held for sale, net		525		67
Other non-interest income		860		746
Total non-interest income		3,716		2,464
Non-interest expense:
Salaries and employee benefits		7,636		6,310
Occupancy		1,284		1,314
Regulatory assessments and fees		421		433
Consulting and legal fees		193		592
Network and information technology services		505		507
Other operating expense		2,013		2,018
Total non-interest expense		12,052		11,174
Net income before income tax expense		10,098		6,038
Income tax expense		2,440		1,426
Net income	$	7,658	$	4,612
Per share information:
Net income per common share, basic	$	0.38	$	0.23
Net income per common share, diluted	$	0.38	$	0.23
Cash dividends declared	$	0.10	$	0.05
Weighted average shares outstanding:
Common shares, basic		20,020,933		19,633,330
Common shares, diluted		20,319,535		19,698,258

USCB FINANCIAL HOLDINGS, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share data)

	As of or For the Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Income statement data:
Net interest income	$	19,115		$	19,358		$	18,109		$	17,311		$	15,158
Provision for credit losses		681			1,030			931			786			410
Net interest income after provision for credit losses		18,434			18,328			17,178			16,525			14,748
Service fees		2,331			2,667			2,544			1,977			1,651
Gain on sale of securities available for sale, net		–			–			–			14			–
Gain on sale of loans held for sale, net		525			154			109			417			67
Other income		860			806			785			803			746
Total non-interest income		3,716			3,627			3,438			3,211			2,464
Salaries and employee benefits		7,636			7,930			7,200			7,353			6,310
Occupancy		1,284			1,337			1,341			1,266			1,314
Regulatory assessments and fees		421			405			452			476			433
Consulting and legal fees		193			552			161			263			592
Network and information technology services		505			494			513			479			507
Other operating expense		2,013			2,136			1,787			1,723			2,018
Total non-interest expense		12,052			12,854			11,454			11,560			11,174
Net income before income tax expense		10,098			9,101			9,162			8,176			6,038
Income tax expense		2,440			2,197			2,213			1,967			1,426
Net income	$	7,658		$	6,904		$	6,949		$	6,209		$	4,612
Per share information:
Net income per common share, basic	$	0.38		$	0.35		$	0.35		$	0.32		$	0.23
Net income per common share, diluted	$	0.38		$	0.34		$	0.35		$	0.31		$	0.23
Cash dividends declared	$	0.10		$	0.05		$	0.05		$	0.05		$	0.05
Balance sheet data (at period-end):
Cash and cash equivalents	$	97,984		$	77,035		$	38,486		$	77,261		$	126,546
Securities available-for-sale	$	275,139		$	260,221		$	259,527		$	236,444		$	259,992
Securities held-to-maturity	$	161,790		$	164,694		$	167,001		$	169,606		$	173,038
Total securities	$	436,929		$	424,915		$	426,528		$	406,050		$	433,030
Loans held for investment ⁽¹⁾	$	2,036,212		$	1,972,848		$	1,931,362		$	1,869,249		$	1,821,196
Allowance for credit losses	$	(24,740	)	$	(24,070	)	$	(23,067	)	$	(22,230	)	$	(21,454	)
Total assets	$	2,677,382		$	2,581,216		$	2,503,954		$	2,458,270		$	2,489,142
Non-interest-bearing demand deposits	$	605,489		$	575,159		$	637,313		$	579,243		$	576,626
Interest-bearing deposits	$	1,704,080		$	1,598,845		$	1,489,304		$	1,477,459		$	1,526,168
Total deposits	$	2,309,569		$	2,174,004		$	2,126,617		$	2,056,702		$	2,102,794
FHLB advances and other borrowings	$	108,000		$	163,000		$	118,000		$	162,000		$	162,000
Total liabilities	$	2,452,294		$	2,365,828		$	2,290,038		$	2,257,250		$	2,294,131
Total stockholders’ equity	$	225,088		$	215,388		$	213,916		$	201,020		$	195,011
Capital ratios:⁽²⁾
Leverage ratio		9.61	%		9.53	%		9.34	%		9.03	%		8.91	%
Common equity tier 1 capital		12.48	%		12.28	%		12.01	%		11.93	%		11.80	%
Tier 1 risk-based capital		12.48	%		12.28	%		12.01	%		11.93	%		11.80	%
Total risk-based capital		13.72	%		13.51	%		13.22	%		13.12	%		12.98	%

(1) Loan amounts include deferred fees/costs.
(2) Reflects the Company’s regulatory capital ratios which are provided for informational purposes only; as a small bank holding company, the Company is not subject to regulatory capital requirements. The Bank’s total risk-based capital at March 31, 2025 was 13.65%.

USCB FINANCIAL HOLDINGS, INC.
AVERAGE BALANCES, RATIOS, AND OTHER DATA (UNAUDITED)
(Dollars in thousands)

	As of or For the Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Average balance sheet data:
Cash and cash equivalents	$	82,610		$	56,937		$	87,937		$	107,831		$	132,266
Securities available-for-sale	$	265,154		$	255,786		$	244,882		$	263,345		$	239,896
Securities held-to-maturity	$	163,510		$	165,831		$	168,632		$	171,682		$	174,142
Total securities	$	428,664		$	421,617		$	413,514		$	435,027		$	414,038
Loans held for investment⁽¹⁾	$	1,986,856		$	1,958,566		$	1,878,230		$	1,828,487		$	1,781,528
Total assets	$	2,606,593		$	2,544,592		$	2,485,434		$	2,479,222		$	2,436,103
Interest-bearing deposits	$	1,652,147		$	1,547,789		$	1,468,067		$	1,473,513		$	1,473,831
Non-interest-bearing demand deposits	$	563,040		$	590,829		$	609,456		$	610,370		$	574,760
Total deposits	$	2,215,187		$	2,138,618		$	2,077,523		$	2,083,883		$	2,048,591
FHLB advances and other borrowings	$	138,944		$	151,804		$	156,043		$	162,000		$	164,187
Total liabilities	$	2,387,088		$	2,328,877		$	2,278,793		$	2,281,467		$	2,243,011
Total stockholders’ equity	$	219,505		$	215,715		$	206,641		$	197,755		$	193,092
Performance ratios:
Return on average assets ⁽²⁾		1.19	%		1.08	%		1.11	%		1.01	%		0.76	%
Return on average equity ⁽²⁾		14.15	%		12.73	%		13.38	%		12.63	%		9.61	%
Net interest margin ⁽²⁾		3.10	%		3.16	%		3.03	%		2.94	%		2.62	%
Non-interest income to average assets ⁽²⁾		0.58	%		0.57	%		0.55	%		0.52	%		0.41	%
Non-interest expense to average assets ⁽²⁾		1.88	%		2.01	%		1.83	%		1.88	%		1.84	%
Efficiency ratio ⁽³⁾		52.79	%		55.92	%		53.16	%		56.33	%		63.41	%
Loans by type (at period end): ⁽⁴⁾
Residential real estate	$	301,164		$	297,979		$	283,477		$	256,807		$	237,906
Commercial real estate	$	1,150,129		$	1,128,399		$	1,095,112		$	1,053,030		$	1,057,800
Commercial and industrial	$	256,326		$	258,311		$	246,539		$	248,525		$	228,045
Correspondent banks	$	103,026		$	82,438		$	103,815		$	112,510		$	100,182
Consumer and other	$	218,711		$	198,091		$	198,604		$	194,644		$	194,325
Asset quality data:
Allowance for credit losses to total loans		1.22	%		1.22	%		1.19	%		1.19	%		1.18	%
Allowance for credit losses to non-performing loans		595	%		889	%		846	%		2,933	%		4,705	%
Total non-performing loans⁽⁵⁾	$	4,156		$	2,707		$	2,725		$	758		$	456
Non-performing loans to total loans		0.20	%		0.14	%		0.14	%		0.04	%		0.03	%
Non-performing assets to total assets⁽⁵⁾		0.16	%		0.10	%		0.11	%		0.03	%		0.02	%
Net charge-offs (recoveries of) to average loans ⁽²⁾		0.00	%		(0.00	)%		(0.00	)%		(0.00	)%		(0.00	)%
Net charge-offs (recovery) of credit losses	$	2		$	(11	)	$	(6	)	$	(2	)	$	(7	)
Interest rates and yields:⁽²⁾
Loans held for investment		6.17	%		6.25	%		6.32	%		6.16	%		6.01	%
Investment securities		2.81	%		2.63	%		2.61	%		2.80	%		2.69	%
Total interest-earning assets		5.51	%		5.57	%		5.61	%		5.54	%		5.34	%
Deposits⁽⁶⁾		2.49	%		2.48	%		2.66	%		2.64	%		2.76	%
FHLB advances and other borrowings		3.71	%		3.81	%		4.05	%		4.03	%		4.10	%
Total interest-bearing liabilities		3.37	%		3.47	%		3.79	%		3.76	%		3.86	%
Other information:
Full-time equivalent employees		201			199			198			197			199

(1) Loan amounts include deferred fees/costs.
(2) Annualized.
(3) Efficiency ratio is defined as total non-interest expense divided by sum of net interest income and total non-interest income.
(4) Loan amounts exclude deferred fees/costs.
(5) The amounts for total non-performing loans and total non-performing assets are the same at the dates presented since there was no other real estate owned (OREO) recorded at any of the dates presented.
(6) Reflects effect of non-interest-bearing deposits.

USCB FINANCIAL HOLDINGS, INC.
NET INTEREST MARGIN (UNAUDITED)
(Dollars in thousands)

	Three Months Ended March 31,
	2025						2024
	Average Balance		Interest		Yield/Rate ⁽¹⁾		Average Balance		Interest		Yield/Rate ⁽¹⁾
Assets
Interest-earning assets:
Loans held for investment⁽²⁾	$	1,986,856	$	30,245	6.17	%	$	1,781,528	$	26,643	6.01	%
Investment securities ⁽³⁾		436,935		3,024	2.81	%		419,989		2,811	2.69	%
Other interest-earning assets		75,182		709	3.82	%		125,244		1,433	4.60	%
Total interest-earning assets		2,498,973		33,978	5.51	%		2,326,761		30,887	5.34	%
Non-interest-earning assets		107,620						109,342
Total assets	$	2,606,593					$	2,436,103
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing checking deposits	$	53,611		338	2.56	%	$	53,344		369	2.78	%
Saving and money market deposits		1,199,027		9,335	3.16	%		1,097,575		10,394	3.81	%
Time deposits		399,509		3,918	3.98	%		322,912		3,294	4.10	%
Total interest-bearing deposits		1,652,147		13,591	3.34	%		1,473,831		14,057	3.84	%
FHLB advances and other borrowings		138,944		1,272	3.71	%		164,187		1,672	4.10	%
Total interest-bearing liabilities		1,791,091		14,863	3.37	%		1,638,018		15,729	3.86	%
Non-interest-bearing demand deposits		563,040						574,760
Other non-interest-bearing liabilities		32,957						30,233
Total liabilities		2,387,088						2,243,011
Stockholders’ equity		219,505						193,092
Total liabilities and stockholders’ equity	$	2,606,593					$	2,436,103
Net interest income			$	19,115					$	15,158
Net interest spread ⁽⁴⁾					2.14	%					1.48	%
Net interest margin ⁽⁵⁾					3.10	%					2.62	%

(1) Annualized.
(2) Average loan balances include non-accrual loans. Interest income on loans includes accretion of deferred loan fees, net of deferred loan costs.
(3) At fair value except for securities held to maturity. This amount includes FHLB stock.
(4) Net interest spread is the average yield earned on total interest-earning assets minus the average rate paid on total interest-bearing liabilities.
(5) Net interest margin is the ratio of net interest income to total interest-earning assets.

USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands)

	As of or For the Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Pre-tax pre-provision (“PTPP”) income:⁽¹⁾
Net income	$	7,658		$	6,904		$	6,949		$	6,209		$	4,612
Plus: Provision for income taxes		2,440			2,197			2,213			1,967			1,426
Plus: Provision for credit losses		681			1,030			931			786			410
PTPP income	$	10,779		$	10,131		$	10,093		$	8,962		$	6,448

PTPP return on average assets:⁽¹⁾
PTPP income	$	10,779		$	10,131		$	10,093		$	8,962		$	6,448
Average assets	$	2,606,593		$	2,544,592		$	2,485,434		$	2,479,222		$	2,436,103
PTPP return on average assets ⁽²⁾		1.68	%		1.58	%		1.62	%		1.45	%		1.06	%

Operating net income:⁽¹⁾
Net income	$	7,658		$	6,904		$	6,949		$	6,209		$	4,612
Less: Net gains on sale of securities		–			–			–			14			–
Less: Tax effect on sale of securities		–			–			–			(4	)		–
Operating net income	$	7,658		$	6,904		$	6,949		$	6,199		$	4,612

Operating PTPP income:⁽¹⁾
PTPP income	$	10,779		$	10,131		$	10,093		$	8,962		$	6,448
Less: Net gains on sale of securities		–			–			–			14			–
Operating PTPP income	$	10,779		$	10,131		$	10,093		$	8,948		$	6,448

Operating PTPP return on average assets:⁽¹⁾
Operating PTPP income	$	10,779		$	10,131		$	10,093		$	8,948		$	6,448
Average assets	$	2,606,593		$	2,544,592		$	2,485,434		$	2,479,222		$	2,436,103
Operating PTPP return on average assets ⁽²⁾		1.68	%		1.58	%		1.62	%		1.45	%		1.06	%

Operating return on average assets:⁽¹⁾
Operating net income	$	7,658		$	6,904		$	6,949		$	6,199		$	4,612
Average assets	$	2,606,593		$	2,544,592		$	2,485,434		$	2,479,222		$	2,436,103
Operating return on average assets ⁽²⁾		1.19	%		1.08	%		1.11	%		1.01	%		0.76	%

Operating return on average equity:⁽¹⁾
Operating net income	$	7,658		$	6,904		$	6,949		$	6,199		$	4,612
Average equity	$	219,505		$	215,715		$	206,641		$	197,755		$	193,092
Operating return on average equity ⁽²⁾		14.15	%		12.73	%		13.38	%		12.61	%		9.61	%

Operating Revenue:⁽¹⁾
Net interest income	$	19,115		$	19,358		$	18,109		$	17,311		$	15,158
Non-interest income		3,716			3,627			3,438			3,211			2,464
Less: Net gains on sale of securities		–			–			–			14			–
Operating revenue	$	22,831		$	22,985		$	21,547		$	20,508		$	17,622

Operating Efficiency Ratio:⁽¹⁾
Total non-interest expense	$	12,052		$	12,854		$	11,454		$	11,560		$	11,174
Operating revenue	$	22,831		$	22,985		$	21,547		$	20,508		$	17,622
Operating efficiency ratio		52.79	%		55.92	%		53.16	%		56.37	%		63.41	%

(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Annualized.

USCB FINANCIAL HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(Dollars in thousands, except per share data)

	As of or For the Three Months Ended
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Tangible book value per common share (at period-end):⁽¹⁾
Total stockholders’ equity	$	225,088		$	215,388		$	213,916		$	201,020		$	195,011
Less: Intangible assets		–			–			–			–			–
Tangible stockholders’ equity	$	225,088		$	215,388		$	213,916		$	201,020		$	195,011
Total shares issued and outstanding (at period-end):
Total common shares issued and outstanding		20,048,385			19,924,632			19,620,632			19,630,632			19,650,463
Tangible book value per common share⁽²⁾	$	11.23		$	10.81		$	10.90		$	10.24		$	9.92

Operating diluted net income per common share:⁽¹⁾
Operating net income	$	7,658		$	6,904		$	6,949		$	6,199		$	4,612
Total weighted average diluted shares of common stock		20,319,535			20,183,731			19,825,211			19,717,167			19,698,258
Operating diluted net income per common share:	$	0.38		$	0.34		$	0.35		$	0.31		$	0.23

Tangible Common Equity/Tangible Assets⁽¹⁾
Tangible stockholders’ equity	$	225,088		$	215,388		$	213,916		$	201,020		$	195,011
Tangible total assets⁽³⁾	$	2,677,382		$	2,581,216		$	2,503,954		$	2,458,270		$	2,489,142
Tangible Common Equity/Tangible Assets		8.41	%		8.34	%		8.54	%		8.18	%		7.83	%

(1) The Company believes these non-GAAP measurements are key indicators of the ongoing earnings power of the Company.
(2) Excludes the dilutive effect, if any, of shares of common stock issuable upon exercise of outstanding stock options.
(3) Since the Company has no intangible assets, tangible total assets is the same amount as total assets calculated under GAAP.

The MIL Network –

April 25, 2025

MIL-OSI: Glacier Bancorp, Inc. Announces Results For the Quarter and Period Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

1st Quarter 2025 Highlights:

Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.
Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the prior year first quarter net income of $32.6 million.
The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent.
Total deposits of $20.634 billion increased $87.1 million, or 2 percent annualized, during the current quarter.
The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.
The total earning asset yield of 4.61 percent in the current quarter increased 4 basis points from the prior quarter earning asset yield of 4.57 percent and increased 30 basis points from the prior year first quarter earning asset yield of 4.31 percent.
The total core deposit cost (including non-interest bearing deposits) of 1.25 percent in the current quarter decreased 4 basis point from the prior quarter total core deposit cost of 1.29 percent.
The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis point from the prior quarter total cost of funding of 1.71 percent.
The Company declared a quarterly dividend of $0.33 per share. The Company has declared 160 consecutive quarterly dividends and has increased the dividend 49 times.
The Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the bank holding company for Bank of Idaho (collectively, “BOID”) which had total assets of $1.3 billion as of March 31, 2025. This will be the Company’s 26th bank acquisition since 2000 and its 12th announced transaction in the past 10 years.

Financial Summary

	At or for the Three Months ended
(Dollars in thousands, except per share and market data)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024
Operating results
Net income	$	54,568		61,754		32,627
Basic earnings per share	$	0.48		0.54		0.29
Diluted earnings per share	$	0.48		0.54		0.29
Dividends declared per share	$	0.33		0.33		0.33
Market value per share
Closing	$	44.22		50.22		40.28
High	$	52.81		60.67		42.75
Low	$	43.18		43.70		34.74
Selected ratios and other data
Number of common stock shares outstanding		113,517,944		113,401,955		113,388,590
Average outstanding shares – basic		113,451,199		113,398,213		112,492,142
Average outstanding shares – diluted		113,546,365		113,541,026		112,554,402
Return on average assets (annualized)		0.80	%	0.87	%	0.47	%
Return on average equity (annualized)		6.77	%	7.62	%	4.25	%
Efficiency ratio		65.49	%	60.50	%	74.41	%
Loan to deposit ratio		83.64	%	84.17	%	82.04	%
Number of full time equivalent employees		3,457		3,441		3,438
Number of locations		227		227		232
Number of ATMs		286		284		285

KALISPELL, Mont., April 24, 2025 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the $32.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 65 percent from the prior year first quarter diluted earnings per share of $0.29. “We are very pleased with the long-term positive trends we see in our Company. Deposit costs are decreasing, loan yields are increasing, and margin continues to grow,” said Randy Chesler, President and Chief Executive Officer. “While uncertainty about the economy persists, we remain optimistic about our customers’ ability to quickly adapt to a changing environment.”

On January 13, 2025, the Company announced the signing of a definitive agreement to acquire BOID with 15 branches across eastern Idaho, Boise and eastern Washington. As of March 31, 2025, BOID had total assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. Upon closing of the transaction, the BOID operations will join three existing Glacier Bank divisions. The Eastern Idaho operations of Bank of Idaho will join Citizens Community Bank, the Boise operations will join Mountain West Bank and the Eastern Washington operations will join Wheatland Bank. The acquisition has received all required regulatory approvals and is scheduled to close on April 30, 2025, subject to satisfaction of the remaining conditions set forth in the merger agreement and the approval by the BOID shareholders.

Asset Summary

								$ Change from
(Dollars in thousands)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024
Cash and cash equivalents	$	981,485		848,408		788,660		133,077		192,825
Debt securities, available-for-sale		4,172,312		4,245,205		4,629,073		(72,893	)	(456,761	)
Debt securities, held-to-maturity		3,261,575		3,294,847		3,451,583		(33,272	)	(190,008	)
Total debt securities		7,433,887		7,540,052		8,080,656		(106,165	)	(646,769	)
Loans receivable
Residential real estate		1,850,079		1,858,929		1,752,514		(8,850	)	97,565
Commercial real estate		10,952,809		10,963,713		10,672,269		(10,904	)	280,540
Other commercial		3,121,477		3,119,535		3,030,608		1,942		90,869
Home equity		920,132		930,994		883,062		(10,862	)	37,070
Other consumer		374,021		388,678		394,049		(14,657	)	(20,028	)
Loans receivable		17,218,518		17,261,849		16,732,502		(43,331	)	486,016
Allowance for credit losses		(210,400	)	(206,041	)	(198,779	)	(4,359	)	(11,621	)
Loans receivable, net		17,008,118		17,055,808		16,533,723		(47,690	)	474,395
Other assets		2,435,389		2,458,719		2,419,131		(23,330	)	16,258
Total assets	$	27,858,879		27,902,987		27,822,170		(44,108	)	36,709

The Company continues to maintain a strong cash position of $981 million at March 31, 2025 which was an increase of $133 million over the prior quarter and an increase of $193 million over the prior year first quarter. Total debt securities of $7.434 billion at March 31, 2025 decreased $106 million, or 1 percent, during the current quarter and decreased $647 million, or 8 percent, from the prior year first quarter. Debt securities represented 27 percent of total assets at March 31, 2025 and December 31, 2024 compared to 29 percent at March 31, 2024.

The loan portfolio of $17.219 billion at March 31, 2025 decreased $43 million, or 25 basis points, during the current quarter and increased $486 million, or 3 percent, from the prior year first quarter. Excluding the Rocky Mountain Bank (“RMB”) acquisition on July 19, 2024, the loan portfolio organically increased $214 million, or 1 percent, since the prior year first quarter. Excluding the RMB acquisition, the loan category with the largest dollar increase in the last twelve months was commercial real estate which increased $159 million, or 1 percent.

Credit Quality Summary

	At or for the Three Months ended			At or for the Year ended		At or for the Three Months ended
(Dollars in thousands)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024
Allowance for credit losses
Balance at beginning of period	$	206,041		192,757		192,757
Acquisitions		—		3		3
Provision for credit losses		6,154		27,179		9,091
Charge-offs		(3,897	)	(18,626	)	(4,295	)
Recoveries		2,102		4,728		1,223
Balance at end of period	$	210,400		206,041		198,779
Provision for credit losses
Loan portfolio	$	6,154		27,179		9,091
Unfunded loan commitments		1,660		1,127		(842	)
Total provision for credit losses	$	7,814		28,306		8,249
Other real estate owned	$	1,085		1,085		432
Other foreclosed assets		68		79		459
Accruing loans 90 days or more past due		5,289		6,177		3,796
Non-accrual loans		32,896		20,445		20,738
Total non-performing assets	$	39,338		27,786		25,425
Non-performing assets as a percentage of subsidiary assets		0.14	%	0.10	%	0.09	%
Allowance for credit losses as a percentage of non-performing loans		551	%	774	%	810	%
Allowance for credit losses as a percentage of total loans		1.22	%	1.19	%	1.19	%
Net charge-offs as a percentage of total loans		0.01	%	0.08	%	0.02	%
Accruing loans 30-89 days past due	$	46,458		32,228		62,423
U.S. government guarantees included in non-performing assets	$	685		748		1,490

Non-performing assets as a percentage of subsidiary assets at March 31, 2025 was 0.14 percent compared to 0.10 percent in the prior quarter and 0.09 percent in the prior year first quarter. Non-performing assets of $39.3 million at March 31, 2025 increased $11.6 million, or 42 percent, over the prior quarter and increased $13.9 million, or 55 percent, over the prior year first quarter. The increase in the non-performing loans in the current quarter was primarily attributable to a single credit relationship.

Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at March 31, 2025 were 0.27 percent compared to 0.19 percent for the prior quarter end and 0.37 percent for the prior year first quarter. Early stage delinquencies of $46.5 million at March 31, 2025 increased $14.2 million from the prior quarter and decreased $16.0 million from prior year first quarter.

The current quarter credit loss expense of $7.8 million included $6.2 million of provision for credit losses on loans and $1.7 million of provision for credit losses on unfunded commitments.

The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding at March 31, 2025 was 1.22 percent compared to 1.19 percent at year end and the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the provision for credit losses for loans.

Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

(Dollars in thousands)	Provision for Credit Losses Loans		Net Charge-Offs		ACL as a Percent of Loans		Accruing Loans 30-89 Days Past Due as a Percent of Loans		Non-Performing Assets to Total Subsidiary Assets
First quarter 2025	$	6,154	$	1,795	1.22	%	0.27	%	0.14	%
Fourth quarter 2024		6,041		5,170	1.19	%	0.19	%	0.10	%
Third quarter 2024		6,981		2,766	1.19	%	0.33	%	0.10	%
Second quarter 2024		5,066		2,890	1.19	%	0.29	%	0.06	%
First quarter 2024		9,091		3,072	1.19	%	0.37	%	0.09	%
Fourth quarter 2023		4,181		3,695	1.19	%	0.31	%	0.09	%
Third quarter 2023		5,095		2,209	1.19	%	0.09	%	0.15	%
Second quarter 2023		5,254		2,473	1.19	%	0.16	%	0.12	%

Net charge-offs for the current quarter were $1.8 million compared to $5.2 million in the prior quarter and $3.1 million for the prior year first quarter. The current quarter net charge-offs included $1.9 million in deposit overdraft net charge-offs and $78 thousand of net loan recoveries.

Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on the regulatory classification of loans is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

Liability Summary

					$ Change from
(Dollars in thousands)	Mar 31, 2025		Dec 31, 2024	Mar 31, 2024	Dec 31, 2024		Mar 31, 2024
Deposits
Non-interest bearing deposits	$	6,100,548	6,136,709	6,055,069	(36,161	)	45,479
NOW and DDA accounts		5,676,177	5,543,512	5,376,605	132,665		299,572
Savings accounts		2,896,378	2,845,124	2,949,908	51,254		(53,530	)
Money market deposit accounts		2,816,874	2,878,213	3,002,942	(61,339	)	(186,068	)
Certificate accounts		3,140,333	3,139,821	3,039,190	512		101,143
Core deposits, total		20,630,310	20,543,379	20,423,714	86,931		206,596
Wholesale deposits		3,740	3,615	3,809	125		(69	)
Deposits, total		20,634,050	20,546,994	20,427,523	87,056		206,527
Repurchase agreements		1,849,070	1,777,475	1,540,008	71,595		309,062
Deposits and repurchase agreements, total		22,483,120	22,324,469	21,967,531	158,651		515,589
Federal Home Loan Bank advances		1,520,000	1,800,000	2,140,157	(280,000	)	(620,157	)
Other borrowed funds		82,443	83,341	88,814	(898	)	(6,371	)
Subordinated debentures		133,145	133,105	132,984	40		161
Other liabilities		352,563	338,218	381,977	14,345		(29,414	)
Total liabilities	$	24,571,271	24,679,133	24,711,463	(107,862	)	(140,192	)

Total deposits of $20.634 billion at March 31, 2025 increased $87.1 million, or 2 percent annualized, from the prior quarter and increased $207 million, or 1 percent, from the prior year first quarter. Total repurchase agreements of $1.849 billion at March 31, 2025 increased $71.6 million, or 4 percent, from the prior quarter and increased $309 million, or 20 percent, from the prior year first quarter. Total deposits organically decreased $190 million, or 1 percent, from the prior year first quarter and total deposits and repurchase agreements organically increased $115 million, or 52 basis points, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Federal Home Loan Bank (“FHLB”) advances of $1.520 billion decreased $280 million, or 16 percent, from the prior quarter and decreased $620 million, or 29 percent, from the prior year first quarter.

Stockholders’ Equity Summary

								$ Change from
(Dollars in thousands, except per share data)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024		Dec 31, 2024	Mar 31, 2024
Common equity	$	3,550,719		3,533,150		3,483,012		17,569	67,707
Accumulated other comprehensive loss		(263,111	)	(309,296	)	(372,305	)	46,185	109,194
Total stockholders’ equity		3,287,608		3,223,854		3,110,707		63,754	176,901
Goodwill and intangibles, net		(1,099,229	)	(1,102,500	)	(1,069,808	)	3,271	(29,421	)
Tangible stockholders’ equity	$	2,188,379		2,121,354		2,040,899		67,025	147,480
Stockholders’ equity to total assets		11.80	%	11.55	%	11.18	%
Tangible stockholders’ equity to total tangible assets		8.18	%	7.92	%	7.63	%
Book value per common share	$	28.96		28.43		27.43		0.53	1.53
Tangible book value per common share	$	19.28		18.71		18.00		0.57	1.28

Tangible stockholders’ equity of $2.188 billion at March 31, 2025 increased $67.0 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities and earnings retention. Tangible stockholders’ equity at March 31, 2025 increased $147 million, or 7 percent, compared to the prior year first quarter and was primarily due to the decrease in unrealized loss on the available-for-sale debt securities and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the RMB acquisition. Tangible book value per common share of $19.28 at the current quarter end increased $0.57 per share, or 3 percent, from the prior quarter and increased $1.28 per share, or 7 percent, from the prior year first quarter.

Cash Dividends
On March 26, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 17, 2025 to shareholders of record on April 8, 2025. The dividend was the Company’s 160th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

Operating Results for Three Months Ended March 31, 2025
Compared to December 31, 2024, and March 31, 2024

Income Summary

	Three Months ended							$ Change from
(Dollars in thousands)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024
Net interest income
Interest income	$	289,925		297,036		279,402		(7,111	)	10,523
Interest expense		99,946		105,593		112,922		(5,647	)	(12,976	)
Total net interest income		189,979		191,443		166,480		(1,464	)	23,499

Non-interest income
Service charges and other fees		18,818		20,322		18,563		(1,504	)	255
Miscellaneous loan fees and charges		4,664		4,541		4,362		123		302
Gain on sale of loans		4,311		3,926		3,362		385		949
Gain on sale of securities		—		—		16		—		(16	)
Other income		4,849		2,760		3,686		2,089		1,163
Total non-interest income		32,642		31,549		29,989		1,093		2,653
Total income	$	222,621		222,992		196,469		(371	)	26,152
Net interest margin (tax-equivalent)		3.04	%	2.97	%	2.59	%

Net Interest Income
Net interest income of $190 million for the current quarter decreased $1.5 million, or 1 percent, from the prior quarter net interest income of $191 million and increased $23.5 million, or 14 percent, from the prior year first quarter net interest income of $166 million. The current quarter interest income of $290 million decreased $7.1 million, or 2 percent, over the prior quarter and was primarily driven by fewer days in the current quarter coupled with decreased average interest-bearing cash balances. The current quarter interest income increased $10.5 million, or 4 percent, over the prior year first quarter primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.

The current quarter interest expense of $99.9 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to a decrease in deposit costs. The current quarter interest expense decreased $13.0 million, or 11 percent, over the prior year first quarter and was primarily the result of lower average wholesale borrowings and a decrease in deposit costs. Core deposit cost (including non-interest bearing deposits) was 1.25 percent for the current quarter compared to 1.29 percent in the prior quarter and 1.34 percent for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis points from the prior quarter and decreased 16 basis point from the prior year first quarter.

The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and was primarily driven by an increase in loan yields and a decrease in total cost of funding. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent and was primarily driven by the increase in loan yields and the decrease in core deposit cost. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 5 basis points from discount accretion, the core net interest margin was 2.99 percent in the current quarter compared to 2.97 percent in the prior quarter and 2.59 in the prior year first quarter. “The Company’s net interest margin increased for the fifth consecutive quarter,” said Ron Copher, Chief Financial Officer. “The continued increase in loan yields and decrease in the deposit costs contributed to the 7 basis points increase in the net interest margin as it expanded to 3.04 percent in the current quarter.”

Non-interest Income
Non-interest income for the current quarter totaled $32.6 million, which was an increase of $1.1 million, or 3 percent, over the prior quarter and an increase of $2.7 million, or 9 percent, over the prior year first quarter. Service charges and other fees of $18.8 million for the current quarter decreased $1.5 million, or 7 percent, compared to the prior quarter and increased $255 thousand, or 1 percent, compared to the prior year first quarter. Gain on the sale of residential loans of $4.3 million for the current quarter increased $385 thousand, or 10 percent, compared to the prior quarter and increased $949 thousand, or 28 percent, from the prior year first quarter. Other income of $4.8 million increased $2.1 million, or 75 percent, over the prior quarter primarily due to other income of $1.1 million related to bank owned life insurance proceeds coupled with an increase in income from equity investments and other one-time adjustments. Other income increased $1.2 million, or 32 percent, over the prior year first quarter primarily due to the current quarter proceeds from bank owned life insurance.

Non-interest Expense Summary

	Three Months ended				$ Change from
(Dollars in thousands)	Mar 31, 2025		Dec 31, 2024	Mar 31, 2024	Dec 31, 2024		Mar 31, 2024
Compensation and employee benefits	$	91,443	81,600	85,789	9,843		5,654
Occupancy and equipment		12,294	11,589	11,883	705		411
Advertising and promotions		4,144	3,725	3,983	419		161
Data processing		9,138	9,145	9,159	(7	)	(21	)
Other real estate owned and foreclosed assets		63	30	25	33		38
Regulatory assessments and insurance		5,534	5,890	7,761	(356	)	(2,227	)
Intangibles amortization		3,270	3,613	2,760	(343	)	510
Other expenses		25,432	25,373	30,483	59		(5,051	)
Total non-interest expense	$	151,318	140,965	151,843	10,353		(525	)

Total non-interest expense of $151 million for the current quarter increased $10.4 million, or 7 percent, over the prior quarter and decreased $525 thousand, or 35 basis points, over the prior year first quarter. Compensation and employee benefits of $91.4 million increased by $9.8 million, or 12 percent, over the prior quarter and was primarily attributable to increased performance-related compensation. Compensation and employee benefits increased $5.6 million, or 7 percent, from the prior year first quarter and was primarily driven by annual salary increases and increases in staffing levels from prior year acquisitions. Regulatory assessment and insurance expense of $5.5 million decreased $2.2 million from the prior year first quarter as a result of adjustments to the FDIC special assessment.

Other expenses of $25.4 million increased $59 thousand, or 23 basis points, from the prior quarter. Other expenses decreased $5.1 million, or 17 percent, from the prior year first quarter and was primarily driven by a decrease in acquisition-related expense. Acquisition-related expense was $587 thousand in the current quarter compared to $491 thousand in the prior quarter and $5.7 million in the prior year first quarter. The current quarter other expenses included $1.2 million of gain from the sale of a former branch facility compared to a $2.1 million gain in the prior quarter and a $989 thousand gain in the prior year first quarter.

Federal and State Income Tax Expense

Tax expense during the first quarter of 2025 was $8.9 million, a decrease of $2.8 million, or 24 percent, compared to the prior quarter and an increase of $5.2 million, or 138 percent, from the prior year first quarter. The effective tax rate in the current quarter was 14.1 percent compared to 16.0 percent in the prior quarter. The lower tax expense and lower effective tax rate in the current quarter compared to the prior quarter was the result of a combination of higher federal income tax credits and a decrease in income before income tax expense.

Efficiency Ratio
The efficiency ratio was 65.49 percent in the current quarter compared to 60.50 percent in the prior quarter and 74.41 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the decrease in net interest income combined with an increase in non-interest expense. The decrease from the prior year first quarter was principally due to the increase in net interest income.

Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:

risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures and the potential for significant changes in economic and trade policies in the new administration;
risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Ukraine and the Middle East;
risks associated with the Company’s ability to negotiate, complete, and successfully integrate any pending or future acquisitions;
costs or difficulties related to the completion and integration of pending or future acquisitions;
impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
success in managing risks involved in any of the foregoing; and
effects of any reputational damage to the Company resulting from any of the foregoing.

The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

Conference Call Information
A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 25, 2025. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register-conf.media-server.com/register/BI3016c4b5b4bd4b0aac8f022e74f4c1d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ejk9q5pb.

About Glacier Bancorp, Inc.
Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

CONTACT: Randall M. Chesler, CEO

(406) 751-4722

Ron J. Copher, CFO

(406) 751-7706

Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Financial Condition

(Dollars in thousands, except per share data)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024
Assets
Cash on hand and in banks	$	322,253		268,746		232,064
Interest bearing cash deposits		659,232		579,662		556,596
Cash and cash equivalents		981,485		848,408		788,660
Debt securities, available-for-sale		4,172,312		4,245,205		4,629,073
Debt securities, held-to-maturity		3,261,575		3,294,847		3,451,583
Total debt securities		7,433,887		7,540,052		8,080,656
Loans held for sale, at fair value		40,523		33,060		27,035
Loans receivable		17,218,518		17,261,849		16,732,502
Allowance for credit losses		(210,400	)	(206,041	)	(198,779	)
Loans receivable, net		17,008,118		17,055,808		16,533,723
Premises and equipment, net		411,095		411,968		379,826
Right-of-use assets, net		54,441		56,252		63,447
Other real estate owned and foreclosed assets		1,153		1,164		891
Accrued interest receivable		103,992		99,262		106,063
Deferred tax asset		122,942		138,955		161,327
Intangibles, net		47,911		51,182		46,046
Goodwill		1,051,318		1,051,318		1,023,762
Non-marketable equity securities		88,134		99,669		111,129
Bank-owned life insurance		191,044		189,849		186,625
Other assets		322,836		326,040		312,980
Total assets	$	27,858,879		27,902,987		27,822,170
Liabilities
Non-interest bearing deposits	$	6,100,548		6,136,709		6,055,069
Interest bearing deposits		14,533,502		14,410,285		14,372,454
Securities sold under agreements to repurchase		1,849,070		1,777,475		1,540,008
FHLB advances		1,520,000		1,800,000		2,140,157
Other borrowed funds		82,443		83,341		88,814
Subordinated debentures		133,145		133,105		132,984
Accrued interest payable		30,231		33,626		32,584
Other liabilities		322,332		304,592		349,393
Total liabilities		24,571,271		24,679,133		24,711,463
Commitments and Contingent Liabilities		—		—		—
Stockholders’ Equity
Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding		—		—		—
Common stock, $0.01 par value per share, 234,000,000 shares authorized		1,135		1,134		1,134
Paid-in capital		2,449,311		2,448,758		2,443,584
Retained earnings – substantially restricted		1,100,273		1,083,258		1,038,294
Accumulated other comprehensive loss		(263,111	)	(309,296	)	(372,305	)
Total stockholders’ equity		3,287,608		3,223,854		3,110,707
Total liabilities and stockholders’ equity	$	27,858,879		27,902,987		27,822,170

Glacier Bancorp, Inc. Unaudited Condensed Consolidated Statements of Operations

	Three Months ended
(Dollars in thousands)	Mar 31, 2025		Dec 31, 2024	Mar 31, 2024
Interest Income
Investment securities	$	45,646	50,381	56,218
Residential real estate loans		24,275	23,960	20,764
Commercial loans		197,388	199,260	181,472
Consumer and other loans		22,616	23,435	20,948
Total interest income		289,925	297,036	279,402
Interest Expense
Deposits		62,865	67,079	67,196
Securities sold under agreements to repurchase		13,733	14,822	12,598
Federal Home Loan Bank advances		20,719	21,848	4,249
FRB Bank Term Funding		—	—	27,097
Other borrowed funds		402	348	344
Subordinated debentures		2,227	1,496	1,438
Total interest expense		99,946	105,593	112,922
Net Interest Income		189,979	191,443	166,480
Provision for credit losses		7,814	8,534	8,249
Net interest income after provision for credit losses		182,165	182,909	158,231
Non-Interest Income
Service charges and other fees		18,818	20,322	18,563
Miscellaneous loan fees and charges		4,664	4,541	4,362
Gain on sale of loans		4,311	3,926	3,362
Gain on sale of securities		—	—	16
Other income		4,849	2,760	3,686
Total non-interest income		32,642	31,549	29,989
Non-Interest Expense
Compensation and employee benefits		91,443	81,600	85,789
Occupancy and equipment		12,294	11,589	11,883
Advertising and promotions		4,144	3,725	3,983
Data processing		9,138	9,145	9,159
Other real estate owned and foreclosed assets		63	30	25
Regulatory assessments and insurance		5,534	5,890	7,761
Intangibles amortization		3,270	3,613	2,760
Other expenses		25,432	25,373	30,483
Total non-interest expense		151,318	140,965	151,843
Income Before Income Taxes		63,489	73,493	36,377
Federal and state income tax expense		8,921	11,739	3,750
Net Income	$	54,568	61,754	32,627

Glacier Bancorp, Inc. Average Balance Sheets

	Three Months ended
	March 31, 2025						December 31, 2024
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	1,885,497	$	24,275	5.15	%	$	1,885,146	$	23,960	5.08	%
Commercial loans ¹		14,091,210		198,921	5.73	%		14,059,864		200,956	5.69	%
Consumer and other loans		1,302,687		22,616	7.04	%		1,324,341		23,435	7.04	%
Total loans ²		17,279,394		245,812	5.77	%		17,269,351		248,351	5.72	%
Tax-exempt debt securities ³		1,604,851		13,936	3.47	%		1,615,474		14,501	3.59	%
Taxable debt securities ^{4, 5}		6,946,562		33,598	1.93	%		7,314,265		38,189	2.09	%
Total earning assets		25,830,807		293,346	4.61	%		26,199,090		301,041	4.57	%
Goodwill and intangibles		1,100,801						1,104,362
Non-earning assets		847,855						888,404
Total assets	$	27,779,463					$	28,191,856
Liabilities
Non-interest bearing deposits	$	5,989,490	$	—	—	%	$	6,343,443	$	—	—	%
NOW and DDA accounts		5,525,976		15,065	1.11	%		5,491,451		15,768	1.14	%
Savings accounts		2,861,675		5,159	0.73	%		2,824,126		5,316	0.75	%
Money market deposit accounts		2,849,470		13,526	1.93	%		2,878,415		14,232	1.97	%
Certificate accounts		3,152,198		29,075	3.74	%		3,174,923		31,716	3.97	%
Total core deposits		20,378,809		62,825	1.25	%		20,712,358		67,032	1.29	%
Wholesale deposits ⁶		3,600		40	4.53	%		3,654		47	4.95	%
Repurchase agreements		1,842,773		13,733	3.02	%		1,866,705		14,821	3.16	%
FHLB advances		1,744,000		20,719	4.75	%		1,800,000		21,848	4.75	%
Subordinated debentures and other borrowed funds		216,073		2,629	4.94	%		216,874		1,845	3.38	%
Total funding liabilities		24,185,255		99,946	1.68	%		24,599,591		105,593	1.71	%
Other liabilities		326,764						369,700
Total liabilities		24,512,019						24,969,291
Stockholders’ Equity
Stockholders’ equity		3,267,444						3,222,565
Total liabilities and stockholders’ equity	$	27,779,463					$	28,191,856
Net interest income (tax-equivalent)			$	193,400					$	195,448
Net interest spread (tax-equivalent)					2.93	%					2.86	%
Net interest margin (tax-equivalent)					3.04	%					2.97	%

______________________________

¹	Includes tax effect of $1.5 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and December 31, 2024, respectively.
²	Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
³	Includes tax effect of $1.7 million and $2.1 million on tax-exempt debt securities income for the three months ended March 31, 2025 and December 31, 2024, respectively.
⁴	Includes interest income of $6.1 million and $9.2 million on average interest-bearing cash balances of $559.5 million and $759.7 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
⁵	Includes tax effect of $150 thousand and $203 thousand on federal income tax credits for the three months ended March 31, 2025 and December 31, 2024, respectively.
⁶	Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc. Average Balance Sheets (continued)

	Three Months ended
	March 31, 2025						March 31, 2024
(Dollars in thousands)	Average Balance		Interest & Dividends		Average Yield/ Rate		Average Balance		Interest & Dividends		Average Yield/ Rate
Assets
Residential real estate loans	$	1,885,497	$	24,275	5.15	%	$	1,747,184	$	20,764	4.75	%
Commercial loans ¹		14,091,210		198,921	5.73	%		13,513,426		183,045	5.45	%
Consumer and other loans		1,302,687		22,616	7.04	%		1,283,388		20,948	6.56	%
Total loans ²		17,279,394		245,812	5.77	%		16,543,998		224,757	5.46	%
Tax-exempt debt securities ³		1,604,851		13,936	3.47	%		1,720,370		15,157	3.52	%
Taxable debt securities ^{4, 5}		6,946,562		33,598	1.93	%		8,176,974		43,477	2.13	%
Total earning assets		25,830,807		293,346	4.61	%		26,441,342		283,391	4.31	%
Goodwill and intangibles		1,100,801						1,051,954
Non-earning assets		847,855						611,550
Total assets	$	27,779,463					$	28,104,846
Liabilities
Non-interest bearing deposits	$	5,989,490	$	—	—	%	$	5,966,546	$	—	—	%
NOW and DDA accounts		5,525,976		15,065	1.11	%		5,275,703		15,918	1.21	%
Savings accounts		2,861,675		5,159	0.73	%		2,900,649		5,655	0.78	%
Money market deposit accounts		2,849,470		13,526	1.93	%		2,948,294		14,393	1.96	%
Certificate accounts		3,152,198		29,075	3.74	%		3,000,713		31,175	4.18	%
Total core deposits		20,378,809		62,825	1.25	%		20,091,905		67,141	1.34	%
Wholesale deposits ⁶		3,600		40	4.53	%		3,965		55	5.50	%
Repurchase agreements		1,842,773		13,733	3.02	%		1,513,397		12,598	3.35	%
FHLB advances		1,744,000		20,719	4.75	%		350,754		4,249	4.79	%
FRB Bank Term Funding		—		—	—	%		2,483,077		27,097	4.39	%
Subordinated debentures and other borrowed funds		216,073		2,629	4.94	%		218,271		1,782	3.28	%
Total funding liabilities		24,185,255		99,946	1.68	%		24,661,369		112,922	1.84	%
Other liabilities		326,764						356,554
Total liabilities		24,512,019						25,017,923
Stockholders’ Equity
Stockholders’ equity		3,267,444						3,086,923
Total liabilities and stockholders’ equity	$	27,779,463					$	28,104,846
Net interest income (tax-equivalent)			$	193,400					$	170,469
Net interest spread (tax-equivalent)					2.93	%					2.47	%
Net interest margin (tax-equivalent)					3.04	%					2.59	%

______________________________

¹	Includes tax effect of $1.5 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and 2024, respectively.
²	Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
³	Includes tax effect of $1.7 million and $2.2 million on tax-exempt debt securities income for the three months ended March 31, 2025 and 2024, respectively.
⁴	Includes interest income of $6.1 million and $15.3 million on average interest-bearing cash balances of $559.5 million and $1.12 billion for the three months ended March 31, 2025 and 2024, respectively.
⁵	Includes tax effect of $150 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2025 and 2024, respectively.
⁶	Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.

Glacier Bancorp, Inc.
Loan Portfolio by Regulatory Classification

	Loans Receivable, by Loan Type									% Change from
(Dollars in thousands)	Mar 31, 2025			Dec 31, 2024			Mar 31, 2024			Dec 31, 2024		Mar 31, 2024
Custom and owner occupied construction	$	233,584		$	242,844		$	273,835		(4)%		(15)%
Pre-sold and spec construction		200,921			191,926			223,294		5	%	(10)%
Total residential construction		434,505			434,770			497,129		—	%	(13)%
Land development		177,448			197,369			215,828		(10)%		(18)%
Consumer land or lots		197,553			187,024			188,635		6	%	5	%
Unimproved land		115,528			113,532			103,032		2	%	12	%
Developed lots for operative builders		64,782			61,661			47,591		5	%	36	%
Commercial lots		95,574			99,243			92,748		(4)%		3	%
Other construction		714,151			693,461			915,782		3	%	(22)%
Total land, lot, and other construction		1,365,036			1,352,290			1,563,616		1	%	(13)%
Owner occupied		3,182,589			3,197,138			3,057,348		—	%	4	%
Non-owner occupied		4,054,107			4,053,996			3,920,696		—	%	3	%
Total commercial real estate		7,236,696			7,251,134			6,978,044		—	%	4	%
Commercial and industrial		1,392,365			1,395,997			1,371,201		—	%	2	%
Agriculture		1,016,081			1,024,520			929,420		(1)%		9	%
First lien		2,499,494			2,481,918			2,276,638		1	%	10	%
Junior lien		85,343			76,303			51,579		12	%	65	%
Total 1-4 family		2,584,837			2,558,221			2,328,217		1	%	11	%
Multifamily residential		874,071			895,242			881,117		(2)%		(1)%
Home equity lines of credit		989,043			1,005,783			947,652		(2)%		4	%
Other consumer		188,388			209,457			223,566		(10)%		(16)%
Total consumer		1,177,431			1,215,240			1,171,218		(3)%		1	%
States and political subdivisions		1,001,058			983,601			848,454		2	%	18	%
Other		176,961			183,894			191,121		(4)%		(7)%
Total loans receivable, including loans held for sale		17,259,041			17,294,909			16,759,537		—	%	3	%
Less loans held for sale ¹		(40,523	)		(33,060	)		(27,035	)	23	%	50	%
Total loans receivable	$	17,218,518		$	17,261,849		$	16,732,502		—	%	3	%

______________________________

¹	Loans held for sale are primarily first lien 1-4 family loans.

Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification

	Non-performing Assets, by Loan Type				Non- Accrual Loans	Accruing Loans 90 Days or More Past Due	Other real estate owned and foreclosed assets
(Dollars in thousands)	Mar 31, 2025		Dec 31, 2024	Mar 31, 2024	Mar 31, 2025	Mar 31, 2025	Mar 31, 2025
Custom and owner occupied construction	$	194	198	210	194	—	—
Pre-sold and spec construction		2,896	2,132	1,049	2,133	763	—
Total residential construction		3,090	2,330	1,259	2,327	763	—
Land development		935	966	28	935	—	—
Consumer land or lots		173	78	144	173	—	—
Developed lots for operative builders		531	531	608	—	531	—
Commercial lots		47	47	2,205	—	47	—
Total land, lot and other construction		1,686	1,622	2,985	1,108	578	—
Owner occupied		3,601	2,979	1,501	3,073	96	432
Non-owner occupied		2,235	2,235	8,853	1,582	—	653
Total commercial real estate		5,836	5,214	10,354	4,655	96	1,085
Commercial and Industrial		12,367	2,069	1,698	11,640	727	—
Agriculture		2,382	2,335	2,855	2,090	292	—
First lien		8,752	9,053	2,930	6,796	1,956	—
Junior lien		296	315	69	296	—	—
Total 1-4 family		9,048	9,368	2,999	7,092	1,956	—
Multifamily residential		400	389	395	400	—	—
Home equity lines of credit		3,479	3,465	1,892	2,726	753	—
Other consumer		1,003	955	927	858	77	68
Total consumer		4,482	4,420	2,819	3,584	830	68
Other		47	39	61	—	47	—
Total	$	39,338	27,786	25,425	32,896	5,289	1,153

Glacier Bancorp, Inc.
Credit Quality Summary by Regulatory Classification (continued)

	Accruing 30-89 Days Delinquent Loans, by Loan Type						% Change from
(Dollars in thousands)	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024		Dec 31, 2024		Mar 31, 2024
Custom and owner occupied construction	$	786	$	969	$	4,784	(19)%		(84)%
Pre-sold and spec construction		—		564		1,181	(100)%		(100)%
Total residential construction		786		1,533		5,965	(49)%		(87)%
Land development		—		1,450		59	(100)%		(100)%
Consumer land or lots		1,026		402		332	155	%	209	%
Unimproved land		32		36		575	(11)%		(94)%
Developed lots for operative builders		—		214		—	(100)%		n/m
Commercial lots		189		—		1,225	n/m		(85)%
Other construction		—		—		1,248	n/m		(100)%
Total land, lot and other construction		1,247		2,102		3,439	(41)%		(64)%
Owner occupied		3,786		2,867		2,991	32	%	27	%
Non-owner occupied		346		5,037		18,118	(93)%		(98)%
Total commercial real estate		4,132		7,904		21,109	(48)%		(80)%
Commercial and industrial		5,358		6,194		14,806	(13)%		(64)%
Agriculture		5,731		744		3,922	670	%	46	%
First lien		14,826		6,326		5,626	134	%	164	%
Junior lien		1,023		214		145	378	%	606	%
Total 1-4 family		15,849		6,540		5,771	142	%	175	%
Home equity lines of credit		6,993		3,731		3,668	87	%	91	%
Other consumer		1,824		1,775		1,948	3	%	(6)%
Total consumer		8,817		5,506		5,616	60	%	57	%
States and political subdivisions		3,220		—		—	n/m		n/m
Other		1,318		1,705		1,795	(23)%		(27)%
Total	$	46,458	$	32,228	$	62,423	44	%	(26)%

______________________________

_{n/m – not measurable}

Glacier Bancorp, Inc. Credit Quality Summary by Regulatory Classification (continued)

	Net Charge-Offs (Recoveries), Year-to-Date Period Ending, By Loan Type							Charge-Offs	Recoveries
(Dollars in thousands)	Mar 31, 2025			Dec 31, 2024		Mar 31, 2024		Mar 31, 2025	Mar 31, 2025
Pre-sold and spec construction	$	—		(4	)	(4	)	—	—
Pre-sold and spec construction	$	—		(4	)	(4	)	—	—
Land development		(341	)	1,095		(1	)	—	341
Consumer land or lots		(3	)	(22	)	(1	)	—	3
Unimproved land		—		1,338		—		—	—
Commercial lots		—		319		—		—	—
Total land, lot and other construction		(344	)	2,730		(2	)	—	344
Owner occupied		(1	)	(73	)	(3	)	—	1
Non-owner occupied		(6	)	2		(1	)	—	6
Total commercial real estate		(7	)	(71	)	(4	)	—	7
Commercial and industrial		92		1,422		328		421	329
Agriculture		(1	)	64		68		—	1
First lien		(69	)	32		(4	)	—	69
Junior lien		(5	)	(65	)	(5	)	—	5
Total 1-4 family		(74	)	(33	)	(9	)	—	74
Home equity lines of credit		(20	)	69		5		—	20
Other consumer		276		1,078		251		331	55
Total consumer		256		1,147		256		331	75
Other		1,873		8,643		2,439		3,145	1,272
Total	$	1,795		13,898		3,072		3,897	2,102

Visit our website at www.glacierbancorp.com

The MIL Network –

April 25, 2025

MIL-OSI: Heritage Commerce Corp Reports First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”) today announced its financial results for the first quarter of 2025. All data are unaudited.

QUARTERLY HIGHLIGHTS:

Net Income	Earnings Per Share	Pre-Provision Net Revenue (“PPNR”)⁽¹⁾	Fully Tax Equivalent (“FTE”) Net Interest Margin⁽¹⁾	Efficiency Ratio⁽¹⁾	Tangible Book Value Per Share⁽¹⁾

$11.6 million	$0.19	$16.6 million	3.39%	63.96%	$8.48

CEO COMMENTARY:
“We delivered a solid quarter of performance with a 9% increase in our level of profitability from the prior quarter,” said Clay Jones, President and Chief Executive Officer. “While our balance sheet trends reflected the seasonally low loan demand and deposit outflows in the first quarter, we generated a higher level of profitability due to improved net interest margin, strong expense control, and an improvement in our asset quality. We also redeployed some of our excess liquidity to purchase new investment securities, which we expect will have a positive impact on our net interest income and net interest margin going forward. Our longer-term trends remain positive as well, with notable improvement in many areas compared to the first quarter of last year, including a 14% increase in net income and increases in the annualized returns on average assets and average equity.”

“While economic uncertainty has increased over the past few months, we still expect to deliver solid financial performance in 2025 as we continue to capitalize on our market position to assist new clients that have been impacted by dislocation and disruption in our markets resulting from bank failures and acquisitions. We believe that we will continue to see positive trends in areas such as net interest margin, loan and deposit growth, and expense management, which should lead to strong financial performance for our shareholders as we move through the year,” said Mr. Jones.

LINKED-QUARTER BASIS	YEAR-OVER-YEAR
FINANCIAL HIGHLIGHTS:
Net income of $11.6 million and earnings per share of $0.19, up 9% and 12%, from $10.6 million and $0.17, respectively Total revenue of $46.1 million, a decrease of 1%, or $314,000, compared to a decrease in noninterest expense of 3%, or $848,000 PPNR⁽¹⁾ of $16.6 million, up $534,000 from $16.1 million Effective tax rate of 28.8%, compared to 27.9%	Net income of $11.6 million and earnings per share of $0.19, up 14% and 12%, from $10.2 million and $0.17, respectively Total revenue of $46.1 million, an increase of 9%, or $3.9 million, compared to an increase in noninterest expense of 7%, or $1.9 million PPNR⁽¹⁾ of $16.6 million, up $2.0 million from $14.6 million Effective tax rate of 28.8%, compared to 29.5%
FINANCIAL CONDITION:
Loans held-for-investment (“HFI”) remained relatively flat at $3.5 billion Total deposits of $4.7 billion, down $136.8 million, or 3% Loan to deposit ratio of 74.45%, up from 72.45% Total shareholders’ equity of $696 million, up $6.5 million	Increase in loans HFI of $150.8 million, or 5% Increase in total deposits of $238.6 million, or 5% Loan to deposit ratio of 74.45%, down from 75.06% Increase in total shareholders’ equity of $19.9 million
CREDIT QUALITY:
Nonperforming assets (“NPAs”) to total assets of 0.11%, compared to 0.14% Classified assets to total assets of 0.73%, compared to 0.74%	NPAs to total assets of 0.11%, compared to 0.15% Classified assets to total assets of 0.73%, compared to 0.67%
KEY PERFORMANCE METRICS:
FTE net interest margin⁽¹⁾ of 3.39%, an increase from 3.32% Return on average tangible assets⁽¹⁾ and on tangible common equity⁽¹⁾ of 0.88% and 9.09%, compared to 0.78% and 8.25%, respectively Efficiency ratio⁽¹⁾ of 63.96%, compared to 65.35% Common equity tier 1 capital ratio of 13.6%, compared to 13.4% Total capital ratio of 15.9%, compared to 15.6% Tangible common equity ratio⁽¹⁾ of 9.78%, an increase of 4% from 9.43% Tangible book value per share⁽¹⁾ of $8.48, compared to $8.41	FTE net interest margin⁽¹⁾ of 3.39%, an increase from 3.31% Return on average tangible assets⁽¹⁾ and on tangible common equity⁽¹⁾ of 0.88% and 9.09%, compared to 0.82% and 8.24%, respectively Efficiency ratio⁽¹⁾ of 63.96%, compared to 65.34% Common equity tier 1 capital ratio of 13.6%, compared to 13.4% Total capital ratio of 15.9%, compared to 15.6% Tangible common equity ratio⁽¹⁾ of 9.78%, a decrease of 1% from 9.85% Tangible book value per share⁽¹⁾ of $8.48, compared to $8.17

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

Results of Operations:

Net interest income totaled $43.4 million for the first quarter of 2025, a slight decrease of $235,000, or 1%, compared to $43.6 million for the fourth quarter of 2024. The decrease was primarily due to two fewer accrual days during the quarter from the prior linked quarter, together with a lower average balance on interest earning assets, which was largely offset by a decrease in rates paid on deposits and a decrease of higher cost deposit balances. Net interest income increased $3.9 million, or 10%, compared to $39.5 million for the first quarter of 2024. The increase was primarily due to growth in average earning asset balances, partially offset by an increase in interest-bearing deposit balances.

The FTE net interest margin⁽¹⁾ was 3.39% for the first quarter of 2025, an increase over 3.32% for the fourth quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of securities and loans, and higher average yields on securities, partially offset by a decrease in the average balance of noninterest-bearing demand deposits and a lower average yield on overnight funds. The FTE net interest margin⁽¹⁾ increased from 3.31% for the first quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of loans, and higher average yields on securities and loans, and an increase in the average balance of deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

We recorded a provision for credit losses on loans of $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a $184,000 provision for credit losses on loans for the first quarter of 2024.

Total noninterest income remained relatively flat at $2.7 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.6 million for the first quarter of 2024.

Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, decreased $314,000, or 1%, to $46.1 million for the first quarter of 2025, compared to $46.4 million for the fourth quarter of 2024, and increased $3.9 million, or 9%, from $42.1 million for the first quarter of 2024.

Total noninterest expense for the first quarter of 2025 decreased to $29.5 million, compared to $30.3 million for the fourth quarter of 2024, primarily due to nonrecurring personnel related expenses and legal fees of approximately $1.1 million, and higher professional fees and homeowner association vendor payments during the fourth quarter of 2024. Total noninterest expense increased compared to $27.5 million for the first quarter of 2024, primarily due to higher salaries and employee benefits, professional fees, and information technology related expenses.

Income tax expense was $4.7 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024, and $4.3 million for the first quarter of 2024. The effective tax rate for the first quarter of 2025 was 28.8%, compared to 27.9% for the fourth quarter of 2024, and 29.5% for the first quarter of 2024.

Net income was $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025, compared to $10.6 million, or $0.17 per average diluted common share, for the fourth quarter of 2024, and $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024.

For the first quarter of 2025, the Company’s PPNR⁽¹⁾, which is defined as total revenue less noninterest expense, was $16.6 million, compared to $16.1 million for the fourth quarter of 2024, and $14.6 million for the first quarter of 2024.

The efficiency ratio⁽¹⁾ improved to 63.96% for the first quarter of 2025, compared to 65.35% for the fourth quarter of 2024, as a result of lower noninterest expense, partially offset by lower total revenue. The efficiency ratio⁽¹⁾ improved from 65.34% for the first quarter of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense during the first quarter of 2025.

Full time equivalent employees were 350 at March 31, 2025 compared to 355 at December 31, 2024, and 351 at March 31, 2024.

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

Financial Condition and Capital Management:

Total assets decreased 2% to $5.5 billion at March 31, 2025, compared to $5.6 billion at December 31, 2024, primarily due to a decrease in deposits resulting in a decrease in overnight funds. Total assets increased 5% from $5.3 billion at March 31, 2024, primarily due to an increase in deposits resulting in an increase in overnight funds, and an increase in loans.

Investment securities available-for-sale (at fair value) totaled $371.0 million at March 31, 2025, compared to $256.3 million at December 31, 2024, and $404.5 million at March 31, 2024. The pre-tax unrealized loss on the securities available-for-sale portfolio was $3.1 million, or $2.3 million net of taxes, which equaled less than 1% of total shareholders’ equity at March 31, 2025.

During the first quarter of 2025, the Company purchased $62.3 million of agency mortgage-backed securities, $44.8 million of collateralized mortgage obligations, and $44.7 million of U.S. Treasury securities, for total purchases of $151.8 million in the available-for-sale portfolio. Securities purchased had a book yield of 4.86% and an average life of 4.34 years.

Investment securities held-to-maturity (at amortized cost, net of allowance for credit losses of $12,000), totaled $576.7 million at March 31, 2025, compared to $590.0 million at December 31, 2024, and $636.2 million at March 31, 2024. The fair value of the securities held-to-maturity portfolio was $496.3 million at March 31, 2025. The pre-tax unrecognized loss on the securities held-to-maturity portfolio was $80.5 million, or $56.7 million net of taxes, which equaled 8.1% of total shareholders’ equity at March 31, 2025.

The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at March 31, 2025 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

Loans HFI, net of deferred costs and fees, remained flat at $3.5 billion at March 31, 2025 as compared to December 31, 2024, and increased $150.8 million, or 5%, from $3.3 billion at March 31, 2024. Loans HFI, excluding residential mortgages, remained flat at $3.0 billion at March 31, 2025 as compared to December 31, 2024, and increased $175.5 million, or 6%, from $2.8 billion at March 31, 2024.

Commercial and industrial line utilization was 31% at March 31, 2025, compared to 34% at December 31, 2024, and 28% at March 31, 2024. Commercial real estate (“CRE”) loans totaled $2.0 billion at March 31, 2025, of which 31% were owner occupied and 69% were investor CRE loans. Owner occupied CRE loans totaled 31% at December 31, 2024 and 32% at March 31, 2024. At March 31, 2025, approximately 24% of the Company’s loan portfolio consisted of floating interest rate loans, compared to 26% at both December 31, 2024 and March 31, 2024.

At March 31, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year totaled $395.6 million.

Total deposits decreased $136.8 million, or 3%, to $4.7 billion at March 31, 2025, compared to $4.8 billion at December 31, 2024 due to deposits outflows we typically see in the first quarter, and increased $238.6 million, or 5% from $4.4 billion at March 31, 2024.

The following table shows the Company’s deposit types as a percentage of total deposits at the dates indicated:


	March 31,		December 31,		March 31,
DEPOSITS TYPE % TO TOTAL DEPOSITS	2025		2024		2024
Demand, noninterest-bearing	24	%	25	%	28	%
Demand, interest-bearing	20	%	19	%	21	%
Savings and money market	29	%	28	%	25	%
Time deposits — under $250	1	%	1	%	1	%
Time deposits — $250 and over	5	%	4	%	4	%
ICS/CDARS — interest-bearing demand,
money market and time deposits	21	%	23	%	21	%
Total deposits	100	%	100	%	100	%

The loan to deposit ratio was 74.45% at March 31, 2025, compared to 72.45% at December 31, 2024, and 75.06% at March 31, 2024.

The Company’s total available liquidity and borrowing capacity was $3.2 billion at March 31, 2025, compared to $3.3 billion at December 31, 2024, and $3.0 billion at March 31, 2024.

Total shareholders’ equity was $696.2 million at March 31, 2025, compared to $689.7 million at December 31, 2024, and $676.3 million at March 31, 2024. The increase in shareholders’ equity at March 31, 2025 is primarily a function of net income and the decrease in the total accumulated other comprehensive loss, partially offset by dividends to stockholders.

Total accumulated other comprehensive loss of $6.8 million at March 31, 2025 was comprised of unrealized losses on securities available-for-sale of $2.3 million, a split dollar insurance contracts liability of $2.4 million, a supplemental executive retirement plan liability of $2.2 million, and a $49,000 unrealized gain on interest-only strip from SBA loans.

The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at March 31, 2025.

Tangible book value per share⁽¹⁾ was $8.48 at March 31, 2025, compared to $8.41 at December 31, 2024, and $8.17 at March 31, 2024.

In July 2024, the Company announced that its Board of Directors adopted a share repurchase program under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock. The Company did not repurchase any of its common stock during 2024 or the first quarter of 2025.

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

Credit Quality:

The provision for credit losses on loans totaled $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a provision for credit losses on loans of $184,000 for the first quarter of 2024. Net charge-offs totaled $965,000 for the first quarter of 2025, compared to $197,000 for the fourth quarter of 2024, and $254,000 for the first quarter of 2024. More than half of the net charge-offs for the first quarter of 2025 related to one commercial contractor that was previously reserved for during the fourth quarter of 2024. The remaining charge-offs were related to five different small businesses in a variety of industries. Four loans were underwritten using a scored small business product whose underwriting guidelines have been tightened since the loans were made.

The allowance for credit losses on loans (“ACLL”) at March 31, 2025 was $48.3 million, or 1.38% of total loans, representing 765% of total nonperforming loans. The ACLL at December 31, 2024 was $49.0 million, or 1.40% of total loans, representing 638% of total nonperforming loans. The ACLL at March 31, 2024 was $47.9 million, or 1.44% of total loans, representing 608% of total nonperforming loans. The reduction to the allowance for credit on losses on loans reflects our credit assessment and economic factors.

NPAs were $6.3 million at March 31, 2025, compared to $7.7 million at December 31, 2024, and $7.9 million at March 31, 2024. There were no CRE loans in NPAs at March 31, 2025, December 31, 2024, or March 31, 2024. There were no foreclosed assets on the balance sheet at March 31, 2025, December 31, 2024, or March 31, 2024. There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at March 31, 2025, December 31, 2024, or March 31, 2024.

Classified assets totaled $40.0 million, or 0.73% of total assets, at March 31, 2025, compared to $41.7 million, or 0.74% of total assets, at December 31, 2024, and $35.4 million, or 0.67% of total assets, at March 31, 2024. The increase in classified assets from March 31, 2024 was primarily the result of one downgraded owner occupied CRE credit, and a number of residential related loans downgraded during the fourth quarter of 2024. The loans are well-collateralized and we do not anticipate to incur losses as a result of the downgrades of these loans.

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange Commission.

Reclassifications

During the first quarter of 2025, we reclassified Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning assets to other assets on the “Net Interest Income and Net Interest Margin” tables. The amounts for the prior periods were reclassified to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.

Non-GAAP Financial Measures

Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes these non-GAAP financial measures are common in the banking industry, and may enhance comparability for peer comparison purposes. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.”

Forward-Looking Statement Disclaimer

Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and expectations for future events. These statements may include, among other things, those relating to the Company’s future financial performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and include: (i) risks of geographic concentration of our client base, our loans, and the collateral securing our loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that disproportionately affect that region; (ii) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial intelligence, such as data security breaches, “denial of service” attacks, “hacking” and identity theft affecting us, our clients, and our third-party vendors and service providers; (iii) domestic, international and multinational political events that have accompanied or that may in the future accompany or result from recent political changes, particularly including sociopolitical events and conditions that result from political conflicts and law enforcement activities that may adversely affect our markets or our clients; (iv) media items and consumer confidence as those factors affect our clients’ confidence in the banking system generally and in our bank specifically; (v) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; (vi) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (vii) the effects of recent wildfires affecting Southern California, which have affected certain clients and certain loans secured by mortgages in Los Angeles County, and which are affecting or may, in the future, affect other clients in those and other markets throughout California; (viii) factors that affect our liquidity and our ability to meet client demands for withdrawals from deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit; (ix) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (x) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business; (xi) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held in the portfolio or in the secondary market; (xii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (xiii) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; (xiv) events that affect our ability to attract, recruit, and retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (xv) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent and ongoing developments in California labor and employment laws, regulations and court decisions; and (xvi) our success in managing the risks involved in the foregoing factors.

Member FDIC

For additional information, contact:
Debbie Reuter
EVP, Corporate Secretary
Direct: (408) 494-4542
Debbie.Reuter@herbank.com


	For the Quarter Ended:									Percent Change From:
CONSOLIDATED INCOME STATEMENTS	March 31,			December 31,			March 31,			December 31,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Interest income	$	61,832		$	64,043		$	56,960		(3	)	%	9		%
Interest expense		18,472			20,448			17,458		(10	)	%	6		%
Net interest income before provision
for credit losses on loans		43,360			43,595			39,502		(1	)	%	10		%
Provision for credit losses on loans		274			1,331			184		(79	)	%	49		%
Net interest income after provision
for credit losses on loans		43,086			42,264			39,318		2		%	10		%
Noninterest income:
Service charges and fees on deposit
accounts		892			885			877		1		%	2		%
FHLB and FRB stock dividends		590			590			591		0		%	0		%
Increase in cash surrender value of
life insurance		538			528			518		2		%	4		%
Gain on sales of SBA loans		98			125			178		(22	)	%	(45	)	%
Servicing income		82			77			90		6		%	(9	)	%
Termination fees		87			18			13		383		%	569		%
Other		409			552			371		(26	)	%	10		%
Total noninterest income		2,696			2,775			2,638		(3	)	%	2		%
Noninterest expense:
Salaries and employee benefits		16,575			16,976			15,509		(2	)	%	7		%
Occupancy and equipment		2,534			2,495			2,443		2		%	4		%
Professional fees		1,580			1,711			1,327		(8	)	%	19		%
Other		8,767			9,122			8,257		(4	)	%	6		%
Total noninterest expense		29,456			30,304			27,536		(3	)	%	7		%
Income before income taxes		16,326			14,735			14,420		11		%	13		%
Income tax expense		4,700			4,114			4,254		14		%	10		%
Net income	$	11,626		$	10,621		$	10,166		9		%	14		%

PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.19		$	0.17		$	0.17		12		%	12		%
Diluted earnings per share	$	0.19		$	0.17		$	0.17		12		%	12		%
Weighted average shares outstanding – basic		61,479,579			61,320,505			61,186,623		0		%	0		%
Weighted average shares outstanding – diluted		61,708,361			61,679,735			61,470,552		0		%	0		%
Common shares outstanding at period-end		61,611,121			61,348,095			61,253,625		0		%	1		%
Dividend per share	$	0.13		$	0.13		$	0.13		0		%	0		%
Book value per share	$	11.30		$	11.24		$	11.04		1		%	2		%
Tangible book value per share⁽¹⁾	$	8.48		$	8.41		$	8.17		1		%	4		%

KEY PERFORMANCE METRICS
(in $000’s, unaudited)
Annualized return on average equity		6.81	%		6.16	%		6.08	%	11		%	12		%
Annualized return on average tangible
common equity⁽¹⁾		9.09	%		8.25	%		8.24	%	10		%	10		%
Annualized return on average assets		0.85	%		0.75	%		0.79	%	13		%	8		%
Annualized return on average tangible assets⁽¹⁾		0.88	%		0.78	%		0.82	%	13		%	7		%
Net interest margin (FTE)⁽¹⁾		3.39	%		3.32	%		3.31	%	2		%	2		%
Total revenue	$	46,056		$	46,370		$	42,140		(1	)	%	9		%
Pre-provision net revenue⁽¹⁾	$	16,600		$	16,066		$	14,604		3		%	14		%
Efficiency ratio⁽¹⁾		63.96	%		65.35	%		65.34	%	(2	)	%	(2	)	%

AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,559,896		$	5,607,840		$	5,178,636		(1	)	%	7		%
Average tangible assets⁽¹⁾	$	5,386,001		$	5,433,439		$	5,002,597		(1	)	%	8		%
Average earning assets	$	5,188,317		$	5,235,986		$	4,810,505		(1	)	%	8		%
Average loans held-for-sale	$	2,290		$	2,260		$	2,749		1		%	(17	)	%
Average loans held-for-investment	$	3,429,014		$	3,388,729		$	3,297,240		1		%	4		%
Average deposits	$	4,717,517		$	4,771,491		$	4,360,150		(1	)	%	8		%
Average demand deposits – noninterest-bearing	$	1,167,330		$	1,222,393		$	1,177,078		(5	)	%	(1	)	%
Average interest-bearing deposits	$	3,550,187		$	3,549,098		$	3,183,072		0		%	12		%
Average interest-bearing liabilities	$	3,589,872		$	3,588,755		$	3,222,603		0		%	11		%
Average equity	$	692,733		$	686,263		$	672,292		1		%	3		%
Average tangible common equity⁽¹⁾	$	518,838		$	511,862		$	496,253		1		%	5		%

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.


	For the Quarter Ended:
CONSOLIDATED INCOME STATEMENTS	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Interest income	$	61,832		$	64,043		$	60,852		$	58,489		$	56,960
Interest expense		18,472			20,448			21,523			19,622			17,458
Net interest income before provision
for credit losses on loans		43,360			43,595			39,329			38,867			39,502
Provision for credit losses on loans		274			1,331			153			471			184
Net interest income after provision
for credit losses on loans		43,086			42,264			39,176			38,396			39,318
Noninterest income:
Service charges and fees on deposit
accounts		892			885			908			891			877
FHLB and FRB stock dividends		590			590			586			588			591
Increase in cash surrender value of
life insurance		538			528			530			521			518
Gain on sales of SBA loans		98			125			94			76			178
Servicing income		82			77			108			90			90
Termination fees		87			18			46			100			13
Gain on proceeds from company-owned
life insurance		—			—			—			219			—
Other		409			552			554			379			371
Total noninterest income		2,696			2,775			2,826			2,864			2,638
Noninterest expense:
Salaries and employee benefits		16,575			16,976			15,673			15,794			15,509
Occupancy and equipment		2,534			2,495			2,599			2,689			2,443
Professional fees		1,580			1,711			1,306			1,072			1,327
Other		8,767			9,122			7,977			8,633			8,257
Total noninterest expense		29,456			30,304			27,555			28,188			27,536
Income before income taxes		16,326			14,735			14,447			13,072			14,420
Income tax expense		4,700			4,114			3,940			3,838			4,254
Net income	$	11,626		$	10,621		$	10,507		$	9,234		$	10,166

PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.19		$	0.17		$	0.17		$	0.15		$	0.17
Diluted earnings per share	$	0.19		$	0.17		$	0.17		$	0.15		$	0.17
Weighted average shares outstanding – basic		61,479,579			61,320,505			61,295,877			61,279,914			61,186,623
Weighted average shares outstanding – diluted		61,708,361			61,679,735			61,546,157			61,438,088			61,470,552
Common shares outstanding at period-end		61,611,121			61,348,095			61,297,344			61,292,094			61,253,625
Dividend per share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.13
Book value per share	$	11.30		$	11.24		$	11.18		$	11.08		$	11.04
Tangible book value per share⁽¹⁾	$	8.48		$	8.41		$	8.33		$	8.22		$	8.17

KEY PERFORMANCE METRICS
(in $000’s, unaudited)
Annualized return on average equity		6.81	%		6.16	%		6.14	%		5.50	%		6.08	%
Annualized return on average tangible
common equity⁽¹⁾		9.09	%		8.25	%		8.27	%		7.43	%		8.24	%
Annualized return on average assets		0.85	%		0.75	%		0.78	%		0.71	%		0.79	%
Annualized return on average tangible assets⁽¹⁾		0.88	%		0.78	%		0.81	%		0.74	%		0.82	%
Net interest margin (FTE)⁽¹⁾		3.39	%		3.32	%		3.15	%		3.23	%		3.31	%
Total revenue	$	46,056		$	46,370		$	42,155		$	41,731		$	42,140
Pre-provision net revenue⁽¹⁾	$	16,600		$	16,066		$	14,600		$	13,543		$	14,604
Efficiency ratio⁽¹⁾		63.96	%		65.35	%		65.37	%		67.55	%		65.34	%

AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,559,896		$	5,607,840		$	5,352,067		$	5,213,171		$	5,178,636
Average tangible assets⁽¹⁾	$	5,386,001		$	5,433,439		$	5,177,114		$	5,037,673		$	5,002,597
Average earning assets	$	5,188,317		$	5,235,986		$	4,980,082		$	4,840,670		$	4,810,505
Average loans held-for-sale	$	2,290		$	2,260		$	1,493		$	1,503		$	2,749
Average loans held-for-investment	$	3,429,014		$	3,388,729		$	3,359,647		$	3,328,358		$	3,297,240
Average deposits	$	4,717,517		$	4,771,491		$	4,525,946		$	4,394,545		$	4,360,150
Average demand deposits – noninterest-bearing	$	1,167,330		$	1,222,393		$	1,172,304		$	1,127,145		$	1,177,078
Average interest-bearing deposits	$	3,550,187		$	3,549,098		$	3,353,642		$	3,267,400		$	3,183,072
Average interest-bearing liabilities	$	3,589,872		$	3,588,755		$	3,393,264		$	3,306,972		$	3,222,603
Average equity	$	692,733		$	686,263		$	680,404		$	675,108		$	672,292
Average tangible common equity⁽¹⁾	$	518,838		$	511,862		$	505,451		$	499,610		$	496,253

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.


	End of Period:									Percent Change From:
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,			March 31,			December 31,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
ASSETS
Cash and due from banks	$	44,281		$	29,864		$	32,543		48		%	36		%
Other investments and interest-bearing deposits
in other financial institutions		700,769			938,259			508,816		(25	)	%	38		%
Securities available-for-sale, at fair value		370,976			256,274			404,474		45		%	(8	)	%
Securities held-to-maturity, at amortized cost		576,718			590,016			636,249		(2	)	%	(9	)	%
Loans – held-for-sale – SBA, including deferred costs		1,884			2,375			1,946		(21	)	%	(3	)	%
Loans – held-for-investment:
Commercial		489,241			531,350			452,231		(8	)	%	8		%
Real estate:
CRE – owner occupied		616,825			601,636			585,031		3		%	5		%
CRE – non-owner occupied		1,363,275			1,341,266			1,271,184		2		%	7		%
Land and construction		136,106			127,848			129,712		6		%	5		%
Home equity		119,138			127,963			122,794		(7	)	%	(3	)	%
Multifamily		284,510			275,490			269,263		3		%	6		%
Residential mortgages		465,330			471,730			490,035		(1	)	%	(5	)	%
Consumer and other		12,741			14,837			16,439		(14	)	%	(22	)	%
Loans		3,487,166			3,492,120			3,336,689		0		%	5		%
Deferred loan fees, net		(268	)		(183	)		(587	)	46		%	(54	)	%
Total loans – held-for-investment, net of deferred fees		3,486,898			3,491,937			3,336,102		0		%	5		%
Allowance for credit losses on loans		(48,262	)		(48,953	)		(47,888	)	(1	)	%	1		%
Loans, net		3,438,636			3,442,984			3,288,214		0		%	5		%
Company-owned life insurance		81,749			81,211			80,007		1		%	2		%
Premises and equipment, net		9,772			10,140			9,986		(4	)	%	(2	)	%
Goodwill		167,631			167,631			167,631		0		%	0		%
Other intangible assets		5,986			6,439			8,074		(7	)	%	(26	)	%
Accrued interest receivable and other assets		115,853			119,813			118,134		(3	)	%	(2	)	%
Total assets	$	5,514,255		$	5,645,006		$	5,256,074		(2	)	%	5		%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,128,593		$	1,214,192		$	1,242,059		(7	)	%	(9	)	%
Demand, interest-bearing		949,068			936,587			925,100		1		%	3		%
Savings and money market		1,353,293			1,325,923			1,124,900		2		%	20		%
Time deposits – under $250		37,592			38,988			38,105		(4	)	%	(1	)	%
Time deposits – $250 and over		213,357			206,755			200,739		3		%	6		%
ICS/CDARS – interest-bearing demand, money market
and time deposits		1,001,365			1,097,586			913,757		(9	)	%	10		%
Total deposits		4,683,268			4,820,031			4,444,660		(3	)	%	5		%
Subordinated debt, net of issuance costs		39,691			39,653			39,539		0		%	0		%
Accrued interest payable and other liabilities		95,106			95,595			95,579		(1	)	%	0		%
Total liabilities		4,818,065			4,955,279			4,579,778		(3	)	%	5		%

Shareholders’ Equity:
Common stock		511,596			510,070			507,578		0		%	1		%
Retained earnings		191,401			187,762			181,306		2		%	6		%
Accumulated other comprehensive loss		(6,807	)		(8,105	)		(12,588	)	(16	)	%	(46	)	%
Total shareholders’ equity		696,190			689,727			676,296		1		%	3		%
Total liabilities and shareholders’ equity	$	5,514,255		$	5,645,006		$	5,256,074		(2	)	%	5		%


	End of Period:
CONSOLIDATED BALANCE SHEETS	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
ASSETS
Cash and due from banks	$	44,281		$	29,864		$	49,722		$	37,497		$	32,543
Other investments and interest-bearing deposits
in other financial institutions		700,769			938,259			906,588			610,763			508,816
Securities available-for-sale, at fair value		370,976			256,274			237,612			273,043			404,474
Securities held-to-maturity, at amortized cost		576,718			590,016			604,193			621,178			636,249
Loans – held-for-sale – SBA, including deferred costs		1,884			2,375			1,649			1,899			1,946
Loans – held-for-investment:
Commercial		489,241			531,350			481,266			477,929			452,231
Real estate:
CRE – owner occupied		616,825			601,636			602,062			594,504			585,031
CRE – non-owner occupied		1,363,275			1,341,266			1,310,578			1,283,323			1,271,184
Land and construction		136,106			127,848			125,761			125,374			129,712
Home equity		119,138			127,963			124,090			126,562			122,794
Multifamily		284,510			275,490			273,103			268,968			269,263
Residential mortgages		465,330			471,730			479,524			484,809			490,035
Consumer and other		12,741			14,837			14,179			18,758			16,439
Loans		3,487,166			3,492,120			3,410,563			3,380,227			3,336,689
Deferred loan fees, net		(268	)		(183	)		(327	)		(434	)		(587	)
Total loans – held-for-investment, net of deferred fees		3,486,898			3,491,937			3,410,236			3,379,793			3,336,102
Allowance for credit losses on loans		(48,262	)		(48,953	)		(47,819	)		(47,954	)		(47,888	)
Loans, net		3,438,636			3,442,984			3,362,417			3,331,839			3,288,214
Company-owned life insurance		81,749			81,211			80,682			80,153			80,007
Premises and equipment, net		9,772			10,140			10,398			10,310			9,986
Goodwill		167,631			167,631			167,631			167,631			167,631
Other intangible assets		5,986			6,439			6,966			7,521			8,074
Accrued interest receivable and other assets		115,853			119,813			123,738			121,190			118,134
Total assets	$	5,514,255		$	5,645,006		$	5,551,596		$	5,263,024		$	5,256,074

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,128,593		$	1,214,192		$	1,272,139		$	1,187,320		$	1,242,059
Demand, interest-bearing		949,068			936,587			913,910			928,246			925,100
Savings and money market		1,353,293			1,325,923			1,309,676			1,126,520			1,124,900
Time deposits – under $250		37,592			38,988			39,060			39,046			38,105
Time deposits – $250 and over		213,357			206,755			196,945			203,886			200,739
ICS/CDARS – interest-bearing demand, money market
and time deposits		1,001,365			1,097,586			997,803			959,592			913,757
Total deposits		4,683,268			4,820,031			4,729,533			4,444,610			4,444,660
Other short-term borrowings		—			—			—			—			—
Subordinated debt, net of issuance costs		39,691			39,653			39,615			39,577			39,539
Accrued interest payable and other liabilities		95,106			95,595			97,096			99,638			95,579
Total liabilities		4,818,065			4,955,279			4,866,244			4,583,825			4,579,778

Shareholders’ Equity:
Common stock		511,596			510,070			509,134			508,343			507,578
Retained earnings		191,401			187,762			185,110			182,571			181,306
Accumulated other comprehensive loss		(6,807	)		(8,105	)		(8,892	)		(11,715	)		(12,588	)
Total shareholders’ equity		696,190			689,727			685,352			679,199			676,296
Total liabilities and shareholders’ equity	$	5,514,255		$	5,645,006		$	5,551,596		$	5,263,024		$	5,256,074


	At or For the Quarter Ended:									Percent Change From:
CREDIT QUALITY DATA	March 31,			December 31,			March 31,			December 31,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Nonaccrual loans – held-for-investment:
Land and construction loans	$	4,793		$	5,874		$	4,673		(18	)	%	3		%
Home equity and other loans		927			290			120		220		%	673		%
Commercial loans		324			1,014			1,127		(68	)	%	(71	)	%
CRE loans		—			—			—		N/A			N/A
Total nonaccrual loans – held-for-investment:		6,044			7,178			5,920		(16	)	%	2		%
Loans over 90 days past due
and still accruing		268			489			1,951		(45	)	%	(86	)	%
Total nonperforming loans		6,312			7,667			7,871		(18	)	%	(20	)	%
Foreclosed assets		—			—			—		N/A			N/A
Total nonperforming assets	$	6,312		$	7,667		$	7,871		(18	)	%	(20	)	%
Net charge-offs during the quarter	$	965		$	197		$	254		390		%	280		%
Provision for credit losses on loans during the quarter	$	274		$	1,331		$	184		(79	)	%	49		%
Allowance for credit losses on loans	$	48,262		$	48,953		$	47,888		(1	)	%	1		%
Classified assets	$	40,034		$	41,661		$	35,392		(4	)	%	13		%
Allowance for credit losses on loans to total loans		1.38	%		1.40	%		1.44	%	(1	)	%	(4	)	%
Allowance for credit losses on loans to total nonperforming loans		764.61	%		638.49	%		608.41	%	20		%	26		%
Nonperforming assets to total assets		0.11	%		0.14	%		0.15	%	(21	)	%	(27	)	%
Nonperforming loans to total loans		0.18	%		0.22	%		0.24	%	(18	)	%	(25	)	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		6	%	0		%	17		%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		6	%	0		%	17		%

OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity ⁽¹⁾	$	522,573		$	515,657		$	500,591		1		%	4		%
Shareholders’ equity / total assets		12.63	%		12.22	%		12.87	%	3		%	(2	)	%
Tangible common equity / tangible assets ⁽¹⁾		9.78	%		9.43	%		9.85	%	4		%	(1	)	%
Loan to deposit ratio		74.45	%		72.45	%		75.06	%	3		%	(1	)	%
Noninterest-bearing deposits / total deposits		24.10	%		25.19	%		27.94	%	(4	)	%	(14	)	%
Total capital ratio		15.9	%		15.6	%		15.6	%	2		%	2		%
Tier 1 capital ratio		13.6	%		13.4	%		13.4	%	1		%	1		%
Common Equity Tier 1 capital ratio		13.6	%		13.4	%		13.4	%	1		%	1		%
Tier 1 leverage ratio		9.8	%		9.6	%		10.2	%	2		%	(4	)	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets ⁽¹⁾		10.15	%		9.79	%		10.22	%	4		%	(1	)	%
Total capital ratio		15.4	%		15.1	%		15.1	%	2		%	2		%
Tier 1 capital ratio		14.1	%		13.9	%		13.9	%	1		%	1		%
Common Equity Tier 1 capital ratio		14.1	%		13.9	%		13.9	%	1		%	1		%
Tier 1 leverage ratio		10.2	%		10.0	%		10.6	%	2		%	(4	)	%

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.


	At or For the Quarter Ended:
CREDIT QUALITY DATA	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Nonaccrual loans – held-for-investment:
Land and construction loans	$	4,793		$	5,874		$	5,862		$	4,774		$	4,673
Home equity and other loans		927			290			84			108			120
Commercial loans		324			1,014			752			900			1,127
CRE loans		—			—			—			—			—
Total nonaccrual loans – held-for-investment:		6,044			7,178			6,698			5,782			5,920
Loans over 90 days past due
and still accruing		268			489			460			248			1,951
Total nonperforming loans		6,312			7,667			7,158			6,030			7,871
Foreclosed assets		—			—			—			—			—
Total nonperforming assets	$	6,312		$	7,667		$	7,158		$	6,030		$	7,871
Net charge-offs during the quarter	$	965		$	197		$	288		$	405		$	254
Provision for credit losses on loans during the quarter	$	274		$	1,331		$	153		$	471		$	184
Allowance for credit losses on loans	$	48,262		$	48,953		$	47,819		$	47,954		$	47,888
Classified assets	$	40,034		$	41,661		$	32,609		$	33,605		$	35,392
Allowance for credit losses on loans to total loans		1.38	%		1.40	%		1.40	%		1.42	%		1.44	%
Allowance for credit losses on loans to total nonperforming loans		764.61	%		638.49	%		668.05	%		795.26	%		608.41	%
Nonperforming assets to total assets		0.11	%		0.14	%		0.13	%		0.11	%		0.15	%
Nonperforming loans to total loans		0.18	%		0.22	%		0.21	%		0.18	%		0.24	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		6	%		6	%		6	%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		6	%		6	%		6	%

OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity ⁽¹⁾	$	522,573		$	515,657		$	510,755		$	504,047		$	500,591
Shareholders’ equity / total assets		12.63	%		12.22	%		12.35	%		12.91	%		12.87	%
Tangible common equity / tangible assets ⁽¹⁾		9.78	%		9.43	%		9.50	%		9.91	%		9.85	%
Loan to deposit ratio		74.45	%		72.45	%		72.11	%		76.04	%		75.06	%
Noninterest-bearing deposits / total deposits		24.10	%		25.19	%		26.90	%		26.71	%		27.94	%
Total capital ratio		15.9	%		15.6	%		15.6	%		15.6	%		15.6	%
Tier 1 capital ratio		13.6	%		13.4	%		13.4	%		13.4	%		13.4	%
Common Equity Tier 1 capital ratio		13.6	%		13.4	%		13.4	%		13.4	%		13.4	%
Tier 1 leverage ratio		9.8	%		9.6	%		10.0	%		10.2	%		10.2	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets ⁽¹⁾		10.15	%		9.79	%		9.86	%		10.28	%		10.22	%
Total capital ratio		15.4	%		15.1	%		15.1	%		15.1	%		15.1	%
Tier 1 capital ratio		14.1	%		13.9	%		13.9	%		13.9	%		13.9	%
Common Equity Tier 1 capital ratio		14.1	%		13.9	%		13.9	%		13.9	%		13.9	%
Tier 1 leverage ratio		10.2	%		10.0	%		10.4	%		10.6	%		10.6	%

⁽¹⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.


	For the Quarter Ended								For the Quarter Ended
	March 31, 2025								December 31, 2024
				Interest			Average					Interest			Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average			Income/			Yield/		Average			Income/			Yield/
(in $000’s, unaudited)	Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans, core bank	$	2,945,072			39,758		5.47	%	$	2,899,347		$	39,852		5.47	%
Prepayment fees		—			224		0.03	%		—			35		0.00	%
Bay View Funding factored receivables		60,250			2,942		19.80	%		59,153			3,084		20.74	%
Purchased residential mortgages		427,963			3,597		3.41	%		434,846			3,732		3.41	%
Loan fair value mark / accretion		(1,981	)		181		0.02	%		(2,357	)		429		0.06	%
Loans, gross ⁽¹⁾⁽²⁾		3,431,304			46,702		5.52	%		3,390,989			47,132		5.53	%
Securities – taxable		876,092			5,559		2.57	%		800,174			4,475		2.22	%
Securities – exempt from Federal tax ⁽³⁾		30,480			275		3.66	%		30,570			274		3.57	%
Other investments and interest-bearing deposits
in other financial institutions		850,441			9,354		4.46	%		1,014,253			12,220		4.79	%
Total interest earning assets ⁽³⁾		5,188,317			61,890		4.84	%		5,235,986			64,101		4.87	%
Cash and due from banks		31,869								32,569
Premises and equipment, net		10,007								10,301
Goodwill and other intangible assets		173,895								174,401
Other assets		155,808								154,583
Total assets	$	5,559,896							$	5,607,840

Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,167,330							$	1,222,393

Demand, interest-bearing		944,375			1,438		0.62	%		906,581			1,452		0.64	%
Savings and money market		1,323,038			8,073		2.47	%		1,339,397			9,090		2.70	%
Time deposits – under $100		11,383			47		1.67	%		11,388			49		1.71	%
Time deposits – $100 and over		234,421			2,129		3.68	%		234,446			2,310		3.92	%
ICS/CDARS – interest-bearing demand, money market
and time deposits		1,036,970			6,248		2.44	%		1,057,286			7,009		2.64	%
Total interest-bearing deposits		3,550,187			17,935		2.05	%		3,549,098			19,910		2.23	%
Total deposits		4,717,517			17,935		1.54	%		4,771,491			19,910		1.66	%

Short-term borrowings		18			—		0.00	%		28			—		0.00	%
Subordinated debt, net of issuance costs		39,667			537		5.49	%		39,629			538		5.40	%
Total interest-bearing liabilities		3,589,872			18,472		2.09	%		3,588,755			20,448		2.27	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,757,202			18,472		1.57	%		4,811,148			20,448		1.69	%
Other liabilities		109,961								110,429
Total liabilities		4,867,163								4,921,577
Shareholders’ equity		692,733								686,263
Total liabilities and shareholders’ equity	$	5,559,896							$	5,607,840

Net interest income / margin ⁽³⁾					43,418		3.39	%					43,653		3.32	%
Less tax equivalent adjustment ⁽³⁾					(58	)							(58	)
Net interest income				$	43,360		3.39	%				$	43,595		3.31	%

⁽¹⁾Includes loans held-for-sale. Nonaccrual loans are included in average balances.
⁽²⁾Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $167,000 for the fourth quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $35,000 for the fourth quarter of 2024.
⁽³⁾Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.


	For the Quarter Ended								For the Quarter Ended
	March 31, 2025								March 31, 2024
				Interest			Average					Interest			Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average			Income/			Yield/		Average			Income/			Yield/
(in $000’s, unaudited)	Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans, core bank	$	2,945,072		$	39,758		5.47	%	$	2,795,351		$	37,721		5.43	%
Prepayment fees		—			224		0.03	%		—			24		0.00	%
Bay View Funding factored receivables		60,250			2,942		19.80	%		53,511			2,838		21.33	%
Purchased residential mortgages		427,963			3,597		3.41	%		454,240			3,788		3.35	%
Loan fair value mark / accretion		(1,981	)		181		0.02	%		(3,113	)		229		0.03	%
Loans, gross ⁽¹⁾⁽²⁾		3,431,304			46,702		5.52	%		3,299,989			44,600		5.44	%
Securities – taxable		876,092			5,559		2.57	%		1,042,484			6,183		2.39	%
Securities – exempt from Federal tax ⁽³⁾		30,480			275		3.66	%		31,939			286		3.60	%
Other investments and interest-bearing deposits
in other financial institutions		850,441			9,354		4.46	%		436,093			5,951		5.49	%
Total interest earning assets ⁽³⁾		5,188,317			61,890		4.84	%		4,810,505			57,020		4.77	%
Cash and due from banks		31,869								33,214
Premises and equipment, net		10,007								10,015
Goodwill and other intangible assets		173,895								176,039
Other assets		155,808								148,863
Total assets	$	5,559,896							$	5,178,636

Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,167,330							$	1,177,078

Demand, interest-bearing		944,375			1,438		0.62	%		920,048			1,554		0.68	%
Savings and money market		1,323,038			8,073		2.47	%		1,067,581			6,649		2.50	%
Time deposits – under $100		11,383			47		1.67	%		10,945			42		1.54	%
Time deposits – $100 and over		234,421			2,129		3.68	%		221,211			2,064		3.75	%
ICS/CDARS – interest-bearing demand, money market
and time deposits		1,036,970			6,248		2.44	%		963,287			6,611		2.76	%
Total interest-bearing deposits		3,550,187			17,935		2.05	%		3,183,072			16,920		2.14	%
Total deposits		4,717,517			17,935		1.54	%		4,360,150			16,920		1.56	%

Short-term borrowings		18			—		0.00	%		15			—		0.00	%
Subordinated debt, net of issuance costs		39,667			537		5.49	%		39,516			538		5.48	%
Total interest-bearing liabilities		3,589,872			18,472		2.09	%		3,222,603			17,458		2.18	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,757,202			18,472		1.57	%		4,399,681			17,458		1.60	%
Other liabilities		109,961								106,663
Total liabilities		4,867,163								4,506,344
Shareholders’ equity		692,733								672,292
Total liabilities and shareholders’ equity	$	5,559,896							$	5,178,636

Net interest income / margin ⁽³⁾					43,418		3.39	%					39,562		3.31	%
Less tax equivalent adjustment ⁽³⁾					(58	)							(60	)
Net interest income				$	43,360		3.39	%				$	39,502		3.30	%

⁽¹⁾Includes loans held-for-sale. Nonaccrual loans are included in average balances.
⁽²⁾Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $160,000 for the first quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $24,000 for the first quarter of 2024.
⁽³⁾Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

The following table summarizes components of the tangible book value per share at the dates indicated:


TANGIBLE BOOK VALUE PER SHARE	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Capital components:
Total Equity (GAAP)	$	696,190		$	689,727		$	685,352		$	679,199		$	676,296
Less: Preferred Stock		—			—			—			—			—
Total Common Equity		696,190			689,727			685,352			679,199			676,296
Less: Goodwill		(167,631	)		(167,631	)		(167,631	)		(167,631	)		(167,631	)
Less: Other Intangible Assets		(5,986	)		(6,439	)		(6,966	)		(7,521	)		(8,074	)
Total Tangible Common Equity (non-GAAP)	$	522,573		$	515,657		$	510,755		$	504,047		$	500,591

Common shares outstanding at period-end		61,611,121			61,348,095			61,297,344			61,292,094			61,253,625

Tangible book value per share (non-GAAP)	$	8.48		$	8.41		$	8.33		$	8.22		$	8.17

The following tables summarize components of the annualized return on average tangible common equity and the annualized return on average tangible assets for the periods indicated:


RETURN ON AVERAGE TANGIBLE COMMON	For the Quarter Ended:
EQUITY AND AVERAGE TANGIBLE COMMON ASSETS	March 31,				December 31,				September 30,				June 30,				March 31,
(in $000’s, unaudited)	2025				2024					2024			2024				2024
Net income	$	11,626			$	10,621			$	10,507			$	9,234			$	10,166

Average tangible common equity components:
Average Equity (GAAP)	$	692,733			$	686,263			$	680,404			$	675,108			$	672,292
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(6,264	)			(6,770	)			(7,322	)			(7,867	)			(8,408	)
Total Average Tangible Common Equity (non-GAAP)	$	518,838			$	511,862			$	505,451			$	499,610			$	496,253

Annualized return on average tangible common equity (non-GAAP)		9.09		%		8.25		%		8.27		%		7.43		%		8.24		%

Average tangible assets components:
Average Assets (GAAP)	$	5,559,896			$	5,607,840			$	5,352,067			$	5,213,171			$	5,178,636
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(6,264	)			(6,770	)			(7,322	)			(7,867	)			(8,408	)
Total Average Tangible Assets (non-GAAP)	$	5,386,001			$	5,433,439			$	5,177,114			$	5,037,673			$	5,002,597

Annualized return on average tangible assets (non-GAAP)		0.88		%		0.78		%		0.81		%		0.74		%		0.82		%

Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:


	For the Quarter Ended:
	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Net interest income before
credit losses on loans (GAAP)	$	43,360		$	43,595		$	39,329		$	38,867		$	39,502
Tax-equivalent adjustment on securities –
exempt from Federal tax		58			58			59			60			60
Net interest income, FTE (non-GAAP)	$	43,418		$	43,653		$	39,388		$	38,927		$	39,562

Average balance of total interest earning assets	$	5,188,317		$	5,235,986		$	4,980,082		$	4,840,670		$	4,810,505

Net interest margin (annualized net interest income divided by the
average balance of total interest earnings assets) (GAAP)		3.39	%		3.31	%		3.14	%		3.23	%		3.30	%

Net interest margin, FTE (annualized net interest income, FTE,
divided by the average balance of total
earnings assets) (non-GAAP)		3.39	%		3.32	%		3.15	%		3.23	%		3.31	%

Management views its non-GAAP PPNR as a key metric for assessing the Company’s earnings power. The following table summarizes the components of PPNR for the periods indicated:


	For the Quarter Ended:
	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024


Net interest income before credit losses on loans	$	43,360		$	43,595		$	39,329		$	38,867		$	39,502
Noninterest income		2,696			2,775			2,826			2,864			2,638
Total revenue		46,056			46,370		$	42,155		$	41,731		$	42,140
Less: Noninterest expense		(29,456	)		(30,304	)		(27,555	)		(28,188	)		(27,536	)
PPNR (non-GAAP)	$	16,600		$	16,066		$	14,600		$	13,543		$	14,604

The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency ratio of the Company for the periods indicated:


	For the Quarter Ended:
	March 31,			December 31,			September 30,			June 30,			March 31,
(in $000’s, unaudited)	2025			2024			2024			2024			2024
Noninterest expense	$	29,456		$	30,304		$	27,555		$	28,188		$	27,536

Net interest income before credit losses on loans	$	43,360		$	43,595		$	39,329		$	38,867		$	39,502
Noninterest income		2,696			2,775			2,826			2,864			2,638
Total revenue	$	46,056		$	46,370		$	42,155		$	41,731		$	42,140

Efficiency ratio (noninterest expense divided
by total revenue) (non-GAAP)		63.96	%		65.35	%		65.37	%		67.55	%		65.34	%

Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:


TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	March 31,				December 31,				September 30,				June 30,				March 31,
(in $000’s, unaudited)	2025				2024				2024				2024				2024
Capital components:
Total Equity (GAAP)	$	696,190			$	689,727			$	685,352			$	679,199			$	676,296
Less: Preferred Stock		—				—				—				—				—
Total Common Equity		696,190				689,727				685,352				679,199				676,296
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(5,986	)			(6,439	)			(6,966	)			(7,521	)			(8,074	)
Total Tangible Common Equity (non-GAAP)	$	522,573			$	515,657			$	510,755			$	504,047			$	500,591

Asset components:
Total Assets (GAAP)	$	5,514,255			$	5,645,006			$	5,551,596			$	5,263,024			$	5,256,074
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(5,986	)			(6,439	)			(6,966	)			(7,521	)			(8,074	)
Total Tangible Assets (non-GAAP)	$	5,340,638			$	5,470,936			$	5,376,999			$	5,087,872			$	5,080,369

Tangible common equity / tangible assets (non-GAAP)		9.78		%		9.43		%		9.50		%		9.91		%		9.85		%

The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:


TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	March 31,				December 31,				September 30,				June 30,				March 31,
(in $000’s, unaudited)	2025				2024				2024				2024				2024
Capital components:
Total Equity (GAAP)	$	715,605			$	709,379			$	704,585			$	697,964			$	694,543
Less: Preferred Stock		—				—				—				—				—
Total Common Equity		715,605				709,379				704,585				697,964				694,543
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(5,986	)			(6,439	)			(6,966	)			(7,521	)			(8,074	)
Total Tangible Common Equity (non-GAAP)	$	541,988			$	535,309			$	529,988			$	522,812			$	518,838

Asset components:
Total Assets (GAAP)	$	5,512,160			$	5,641,646			$	5,548,576			$	5,260,500			$	5,254,044
Less: Goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: Other Intangible Assets		(5,986	)			(6,439	)			(6,966	)			(7,521	)			(8,074	)
Total Tangible Assets (non-GAAP)	$	5,338,543			$	5,467,576			$	5,373,979			$	5,085,348			$	5,078,339

Tangible common equity / tangible assets (non-GAAP)		10.15		%		9.79		%		9.86		%		10.28		%		10.22		%

The MIL Network –

April 25, 2025

MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

	For the Three Months Ended,
	March 31,		December 31,		March 31,
Performance Ratios (Annualized):	2025		2024		2024
Return on average assets	0.62	%	0.61	%	0.82	%
Return on average stockholders’ equity	4.85		4.88		6.65
Return on average tangible stockholders’ equity ^(a)	7.05		7.12		9.61
Return on average tangible common equity ^(a)	7.40		7.47		10.09
Efficiency ratio	65.67		67.86		59.56
Net interest margin	2.90		2.69		2.81

_{^(a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.}

Core earnings¹ for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

Core earnings PTPP¹ for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

	For the Three Months Ended,
	March 31,			December 31,			March 31,
Core Ratios¹(Annualized):		2025			2024			2024
Return on average assets		0.62	%		0.65	%		0.76	%
Return on average tangible stockholders’ equity		7.00			7.51			8.91
Return on average tangible common equity		7.34			7.89			9.36
Efficiency ratio		65.81			67.74			61.05
Core diluted earnings per share	$	0.35		$	0.38		$	0.44
Core PTPP diluted earnings per share		0.56			0.51			0.62

Key developments for the recent quarter are described below:

Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

_{¹ Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}

Results of Operations

The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

Net Interest Income and Margin

Three months ended March 31, 2025 vs. March 31, 2024

Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

Three months ended March 31, 2025 vs. December 31, 2024

Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

Provision for Credit Losses

Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

Non-interest Income

Three months ended March 31, 2025 vs. March 31, 2024

Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

Three months ended March 31, 2025 vs. December 31, 2024

Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

Non-interest Expense

Three months ended March 31, 2025 vs. March 31, 2024

Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

Three months ended March 31, 2025 vs. December 31, 2024

Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

Income Tax Expense

The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

Financial Condition

March 31, 2025 vs. December 31, 2024

Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

The Company’s tangible common equity² increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share² increased to $19.16, as compared to $18.98.

_{² Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.}

Asset Quality

March 31, 2025 vs. December 31, 2024

The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

Annual Meeting

The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

Conference Call

As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com.

Forward-Looking Statements

In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, 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, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, 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, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which 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.


OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(dollars in thousands)

	March 31,		December 31,		March 31,
		2025		2024		2024
	(Unaudited)				(Unaudited)
Assets
Cash and due from banks	$	163,721	$	123,615	$	130,422
Debt securities available-for-sale, at estimated fair value		746,168		827,500		744,944
Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)		1,005,476		1,045,875		1,128,666
Equity investments		87,365		84,104		103,201
Restricted equity investments, at cost		102,172		108,634		85,689
Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024		10,058,072		10,055,429		10,068,209
Loans held-for-sale		9,698		21,211		4,702
Interest and dividends receivable		44,843		45,914		52,502
Other real estate owned		1,917		1,811		—
Premises and equipment, net		114,588		115,256		119,211
Bank owned life insurance		269,398		270,208		266,615
Assets held for sale		—		—		28
Goodwill		523,308		523,308		506,146
Intangibles		11,740		12,680		8,669
Other assets		170,812		185,702		199,974
Total assets	$	13,309,278	$	13,421,247	$	13,418,978
Liabilities and Stockholders’ Equity
Deposits	$	10,177,023	$	10,066,342	$	10,236,851
Federal Home Loan Bank advances		891,021		1,072,611		658,436
Securities sold under agreements to repurchase with customers		65,132		60,567		66,798
Other borrowings		197,808		197,546		425,722
Advances by borrowers for taxes and insurance		28,789		23,031		28,187
Other liabilities		240,388		298,393		337,147
Total liabilities		11,600,161		11,718,490		11,753,141
Stockholders’ equity:
OceanFirst Financial Corp. stockholders’ equity		1,708,322		1,701,650		1,665,112
Non-controlling interest		795		1,107		725
Total stockholders’ equity		1,709,117		1,702,757		1,665,837
Total liabilities and stockholders’ equity	$	13,309,278	$	13,421,247	$	13,418,978

OceanFirst Financial Corp.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)

	For the Three Months Ended,
	March 31,			December 31,			March 31,
		2025			2024			2024
	\|———————- (Unaudited) ———————-\|
Interest income:
Loans	$	133,019		$	135,438		$	137,121
Debt securities		17,270			19,400			19,861
Equity investments and other		3,414			4,782			4,620
Total interest income		153,703			159,620			161,602
Interest expense:
Deposits		51,046			59,889			59,855
Borrowed funds		16,005			16,402			15,523
Total interest expense		67,051			76,291			75,378
Net interest income		86,652			83,329			86,224
Provision for credit losses		5,340			3,467			591
Net interest income after provision for credit losses		81,312			79,862			85,633
Other income:
Bankcard services revenue		1,463			1,595			1,416
Trust and asset management revenue		406			416			526
Fees and service charges		4,712			6,207			4,473
Net gain on sales of loans		858			1,076			357
Net gain (loss) on equity investments		205			(5	)		1,923
Net loss from other real estate operations		(16	)		(20	)		—
Income from bank owned life insurance		1,852			2,538			1,862
Commercial loan swap income		620			86			138
Other		1,153			339			1,591
Total other income		11,253			12,232			12,286
Operating expenses:
Compensation and employee benefits		36,740			36,602			32,759
Occupancy		5,497			5,280			5,199
Equipment		921			1,026			1,130
Marketing		1,108			1,615			990
Federal deposit insurance and regulatory assessments		2,983			2,517			3,135
Data processing		6,647			6,366			5,956
Check card processing		1,170			1,134			1,050
Professional fees		2,425			2,620			2,732
Amortization of intangibles		940			876			844
Merger related expenses		—			110			—
Other operating expense		5,863			6,703			4,877
Total operating expenses		64,294			64,849			58,672
Income before provision for income taxes		28,271			27,245			39,247
Provision for income taxes		6,808			5,083			10,637
Net income		21,463			22,162			28,610
Net (loss) income attributable to non-controlling interest		(46	)		253			(57	)
Net income attributable to OceanFirst Financial Corp.		21,509			21,909			28,667
Dividends on preferred shares		1,004			1,004			1,004
Net income available to common stockholders	$	20,505		$	20,905		$	27,663
Basic earnings per share	$	0.35		$	0.36		$	0.47
Diluted earnings per share	$	0.35		$	0.36		$	0.47
Average basic shares outstanding		58,102			58,026			58,789
Average diluted shares outstanding		58,111			58,055			58,791

OceanFirst Financial Corp.
SELECTEDLOANAND DEPOSIT DATA
(dollars in thousands)

LOANS RECEIVABLE			At
			March 31,			December 31,			September 30,			June 30,			March 31,
				2025			2024			2024			2024			2024
Commercial:
Commercial real estate – investor			$	5,200,137		$	5,287,683		$	5,273,159		$	5,324,994		$	5,322,755
Commercial and industrial:
Commercial and industrial – real estate ⁽¹⁾				896,647			902,219			841,930			857,710			914,582
Commercial and industrial – non-real estate ⁽¹⁾				748,575			647,945			660,879			616,400			677,176
Total commercial and industrial				1,645,222			1,550,164			1,502,809			1,474,110			1,591,758
Total commercial				6,845,359			6,837,847			6,775,968			6,799,104			6,914,513
Consumer:
Residential real estate				3,053,318			3,049,763			3,003,213			2,977,698			2,965,276
Home equity loans and lines and other consumer (“other consumer”)				226,633			230,462			242,975			242,526			245,859
Total consumer				3,279,951			3,280,225			3,246,188			3,220,224			3,211,135
Total loans				10,125,310			10,118,072			10,022,156			10,019,328			10,125,648
Deferred origination costs (fees), net				11,560			10,964			10,508			10,628			9,734
Allowance for loan credit losses				(78,798	)		(73,607	)		(69,066	)		(68,839	)		(67,173	)
Loans receivable, net			$	10,058,072		$	10,055,429		$	9,963,598		$	9,961,117		$	10,068,209
Mortgage loans serviced for others			$	222,963		$	191,279		$	142,394		$	104,136		$	89,555
	At March 31, 2025 Average Yield
Loan pipeline ⁽²⁾:
Commercial	7.37	%	$	375,622		$	197,491		$	199,818		$	166,206		$	66,167
Residential real estate	6.41			116,121			97,385			137,978			80,330			57,340
Other consumer	8.51			12,681			11,783			13,788			12,586			13,030
Total	7.18	%	$	504,424		$	306,659		$	351,584		$	259,122		$	136,537

	For the Three Months Ended
	March 31,					December 31,		September 30,		June 30,		March 31,
	2025						2024		2024		2024		2024
	Average Yield
Loan originations:
Commercial ⁽³⁾	7.61	%	$	233,968		$	268,613	$	245,886	$	56,053	$	123,010
Residential real estate	6.53			167,162			235,370		169,273		121,388		78,270
Other consumer	8.49			15,825			11,204		15,760		16,970		11,405
Total	7.21	%	$	416,955		$	515,187	$	430,919	$	194,411	$	212,685
Loans sold			$	104,991	⁽⁴⁾	$	127,508	$	65,296	$	45,045	$	29,965

_⁽¹⁾	_{During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.}
_⁽²⁾	_{Loan pipeline includes loans approved but not funded.}
_⁽³⁾	_{Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.}
_⁽⁴⁾	_{Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.}

DEPOSITS	At
	March 31,		December 31,		September 30,		June 30,		March 31,
		2025		2024		2024		2024		2024
Type of Account
Non-interest-bearing	$	1,660,738	$	1,617,182	$	1,638,447	$	1,632,521	$	1,639,828
Interest-bearing checking		4,006,653		4,000,553		3,896,348		3,667,837		3,865,699
Money market		1,337,570		1,301,197		1,288,555		1,210,312		1,150,979
Savings		1,052,504		1,066,438		1,071,946		1,115,688		1,260,309
Time deposits ⁽¹⁾		2,119,558		2,080,972		2,220,871		2,367,659		2,320,036
Total deposits	$	10,177,023	$	10,066,342	$	10,116,167	$	9,994,017	$	10,236,851

_⁽¹⁾	_{Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.}

OceanFirst Financial Corp.
ASSET QUALITY
(dollars in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
ASSET QUALITY⁽¹⁾		2025			2024			2024			2024			2024
Non-performing loans:
Commercial real estate – investor	$	23,595		$	17,000		$	12,478		$	19,761		$	21,507
Commercial and industrial:
Commercial and industrial – real estate		4,690			4,787			4,368			4,081			3,355
Commercial and industrial – non-real estate		22			32			122			434			567
Total commercial and industrial		4,712			4,819			4,490			4,515			3,922
Residential real estate		5,709			10,644			9,108			7,213			7,181
Other consumer		2,954			3,064			2,063			1,933			2,401
Total non-performing loans⁽¹⁾	$	36,970		$	35,527		$	28,139		$	33,422		$	35,011
Other real estate owned		1,917			1,811			—			—			—
Total non-performing assets	$	38,887		$	37,338		$	28,139		$	33,422		$	35,011
Delinquent loans 30 to 89 days	$	46,246		$	36,550		$	15,458		$	9,655		$	17,534
Modifications to borrowers experiencing financial difficulty⁽²⁾
Non-performing (included in total non-performing loans above)	$	8,307		$	3,232		$	3,043		$	3,210		$	3,467
Performing		27,592			27,631			20,652			20,529			8,579
Total modifications to borrowers experiencing financial difficulty⁽²⁾	$	35,899		$	30,863		$	23,695		$	23,739		$	12,046
Allowance for loan credit losses	$	78,798		$	73,607		$	69,066		$	68,839		$	67,173
Allowance for loan credit losses as a percent of total loans receivable⁽³⁾		0.78	%		0.73	%		0.69	%		0.69	%		0.66	%
Allowance for loan credit losses as a percent of total non-performing loans⁽³⁾		213.14			207.19			245.45			205.97			191.86
Non-performing loans as a percent of total loans receivable		0.37			0.35			0.28			0.33			0.35
Non-performing assets as a percent of total assets		0.29			0.28			0.21			0.25			0.26
Supplemental PCD and non-performing loans
PCD loans, net of allowance for loan credit losses	$	21,737		$	22,006		$	15,323		$	16,058		$	16,700
Non-performing PCD loans		7,724			7,931			2,887			2,841			3,525
Delinquent PCD and non-performing loans 30 to 89 days		10,489			2,997			1,279			1,188			2,088
PCD modifications to borrowers experiencing financial difficulty⁽²⁾		22			23			24			26			25
Asset quality, excluding PCD loans⁽⁴⁾
Non-performing loans⁽¹⁾		29,246			27,596			25,252			30,581			31,486
Non-performing assets		31,163			29,407			25,252			30,581			31,486
Delinquent loans 30 to 89 days (excludes non-performing loans)		35,757			33,553			14,179			8,467			15,446
Modifications to borrowers experiencing financial difficulty⁽²⁾		35,877			30,840			23,671			23,713			12,021
Allowance for loan credit losses as a percent of total non-performing loans⁽³⁾		269.43	%		266.73	%		273.51	%		225.10	%		213.34	%
Non-performing loans as a percent of total loans receivable		0.29			0.27			0.25			0.31			0.31
Non-performing assets as a percent of total assets		0.23			0.22			0.19			0.23			0.23

_⁽¹⁾	_{The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.}
_⁽²⁾	_{Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.}
_⁽³⁾	_{Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.}
_⁽⁴⁾	_{All balances and ratios exclude PCD loans.}

NET LOAN (CHARGE-OFFS) RECOVERIES	For the Three Months Ended
	March 31,				December 31,			September 30,			June 30,				March 31,
		2025				2024			2024			2024				2024
Net loan (charge-offs) recoveries:
Loan charge-offs	$	(798	)		$	(55	)	$	(124	)	$	(1,600	)		$	(441	)
Recoveries on loans		162				213			212			148				92
Net loan (charge-offs) recoveries	$	(636	)		$	158		$	88		$	(1,452	)		$	(349	)
Net loan (charge-offs) recoveries to average total loans (annualized)		0.03	%			NM	*		NM	*		0.06	%			0.01	%
Net loan (charge-offs) recoveries detail:
Commercial	$	25			$	92		$	129		$	(1,576	)	⁽¹⁾	$	(35	)
Residential real estate		(720	)	⁽²⁾		(17	)		(6	)		87				66
Other consumer		59				83			(35	)		37				(380	)
Net loan (charge-offs) recoveries	$	(636	)		$	158		$	88		$	(1,452	)		$	(349	)

_⁽¹⁾	_{The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.}
_⁽²⁾	_{The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.}
_^*	_{Not meaningful as amounts are net loan recoveries.}

OceanFirst Financial Corp.
ANALYSIS OF NET INTEREST INCOME

	For the Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(dollars in thousands)	Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾		Average Balance			Interest		Average Yield/ Cost ⁽¹⁾
Assets:
Interest-earning assets:
Interest-earning deposits and short-term investments	$	95,439		$	983	4.18	%	$	195,830		$	2,415	4.91	%	$	163,192		$	2,226	5.49	%
Securities ⁽²⁾		2,003,206			19,701	3.99			2,116,911			21,767	4.09			2,098,421			22,255	4.27
Loans receivable, net ⁽³⁾
Commercial		6,781,005			98,260	5.88			6,794,158			101,003	5.91			6,925,048			104,421	6.06
Residential real estate		3,065,679			31,270	4.08			3,049,092			30,455	4.00			2,974,468			28,596	3.85
Other consumer		228,553			3,489	6.19			236,161			3,980	6.70			248,396			4,104	6.65
Allowance for loan credit losses, net of deferred loan costs and fees		(61,854	)		—	—			(60,669	)		—	—			(59,141	)		—	—
Loans receivable, net		10,013,383			133,019	5.37			10,018,742			135,438	5.38			10,088,771			137,121	5.46
Total interest-earning assets		12,112,028			153,703	5.13			12,331,483			159,620	5.15			12,350,384			161,602	5.26
Non-interest-earning assets		1,199,865							1,213,569							1,206,336
Total assets	$	13,311,893						$	13,545,052						$	13,556,720
Liabilities and Stockholders’ Equity:
Interest-bearing liabilities:
Interest-bearing checking	$	4,135,952			21,433	2.10	%	$	4,050,428			22,750	2.23	%	$	3,925,965			20,795	2.13	%
Money market		1,322,003			9,353	2.87			1,325,119			10,841	3.25			1,092,003			9,172	3.38
Savings		1,058,015			1,785	0.68			1,070,816			2,138	0.79			1,355,718			4,462	1.32
Time deposits		1,916,109			18,475	3.91			2,212,750			24,160	4.34			2,414,063			25,426	4.24
Total		8,432,079			51,046	2.46			8,659,113			59,889	2.75			8,787,749			59,855	2.74
FHLB Advances		996,293			11,359	4.62			854,748			10,030	4.67			644,818			7,771	4.85
Securities sold under agreements to repurchase		64,314			428	2.70			76,856			513	2.66			68,500			411	2.41
Other borrowings		283,150			4,218	6.04			396,412			5,859	5.88			500,901			7,341	5.89
Total borrowings		1,343,757			16,005	4.83			1,328,016			16,402	4.91			1,214,219			15,523	5.14
Total interest-bearing liabilities		9,775,836			67,051	2.78			9,987,129			76,291	3.04			10,001,968			75,378	3.03
Non-interest-bearing deposits		1,597,972							1,627,376							1,634,583
Non-interest-bearing liabilities		222,951							227,221							247,129
Total liabilities		11,596,759							11,841,726							11,883,680
Stockholders’ equity		1,715,134							1,703,326							1,673,040
Total liabilities and equity	$	13,311,893						$	13,545,052						$	13,556,720
Net interest income				$	86,652						$	83,329						$	86,224
Net interest rate spread ⁽⁴⁾						2.35	%						2.11	%						2.23	%
Net interest margin ⁽⁵⁾						2.90	%						2.69	%						2.81	%
Total cost of deposits (including non-interest-bearing deposits)						2.06	%						2.32	%						2.31	%

_⁽¹⁾	_{Average yields and costs are annualized.}
_⁽²⁾	_{Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.}
_⁽³⁾	_{Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.}
_⁽⁴⁾	_{Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.}
_⁽⁵⁾	_{Net interest margin represents net interest income divided by average interest-earning assets.}

OceanFirst Financial Corp.
SELECTED QUARTERLY FINANCIAL DATA
(in thousands, except per share amounts)

	March 31,		December 31,		September 30,		June 30,		March 31,
		2025		2024		2024		2024		2024
Selected Financial Condition Data:
Total assets	$	13,309,278	$	13,421,247	$	13,488,483	$	13,321,755	$	13,418,978
Debt securities available-for-sale, at estimated fair value		746,168		827,500		911,753		721,484		744,944
Debt securities held-to-maturity, net of allowance for securities credit losses		1,005,476		1,045,875		1,075,131		1,105,843		1,128,666
Equity investments		87,365		84,104		95,688		104,132		103,201
Restricted equity investments, at cost		102,172		108,634		98,545		92,679		85,689
Loans receivable, net of allowance for loan credit losses		10,058,072		10,055,429		9,963,598		9,961,117		10,068,209
Deposits		10,177,023		10,066,342		10,116,167		9,994,017		10,236,851
Federal Home Loan Bank advances		891,021		1,072,611		891,860		789,337		658,436
Securities sold under agreements to repurchase and other borrowings		262,940		258,113		501,090		504,490		492,520
Total stockholders’ equity		1,709,117		1,702,757		1,694,508		1,676,669		1,665,837

	For the Three Months Ended,
	March 31,			December 31,			September 30,		June 30,		March 31,
		2025			2024			2024		2024		2024
Selected Operating Data:
Interest income	$	153,703		$	159,620		$	161,525	$	159,426	$	161,602
Interest expense		67,051			76,291			79,306		77,163		75,378
Net interest income		86,652			83,329			82,219		82,263		86,224
Provision for credit losses (excluding Spring Garden)		5,340			2,041			517		3,114		591
Spring Garden opening provision for credit losses		—			1,426			—		—		—
Net interest income after provision for credit losses		81,312			79,862			81,702		79,149		85,633
Other income (excluding equity investments and sale of trust)		11,048			12,237			11,826		10,098		9,201
Net gain (loss) on equity investments		205			(5	)		1,420		887		1,923
Net gain on sale of trust business		—			—			1,438		—		1,162
Operating expenses (excluding FDIC special assessment and merger related expenses)		64,294			64,739			62,067		58,620		58,254
FDIC special assessment		—			—			—		—		418
Merger related expenses		—			110			1,669		—		—
Income before provision for income taxes		28,271			27,245			32,650		31,514		39,247
Provision for income taxes		6,808			5,083			7,464		7,082		10,637
Net income		21,463			22,162			25,186		24,432		28,610
Net (loss) income attributable to non-controlling interest		(46	)		253			70		59		(57	)
Net income attributable to OceanFirst Financial Corp.	$	21,509		$	21,909		$	25,116	$	24,373	$	28,667
Net income available to common stockholders	$	20,505		$	20,905		$	24,112	$	23,369	$	27,663
Diluted earnings per share	$	0.35		$	0.36		$	0.42	$	0.40	$	0.47
Net accretion/amortization of purchase accounting adjustments included in net interest income	$	219		$	20		$	741	$	1,086	$	921

	At or For the Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2025		2024		2024		2024		2024
Selected Financial Ratios and Other Data ^{(1) (2)}:
Performance Ratios (Annualized):
Return on average assets ⁽³⁾	0.62	%	0.61	%	0.71	%	0.70	%	0.82	%
Return on average tangible assets ^{(3) (4)}	0.65		0.64		0.74		0.73		0.85
Return on average stockholders’ equity ⁽³⁾	4.85		4.88		5.68		5.61		6.65
Return on average tangible stockholders’ equity ^{(3) (4)}	7.05		7.12		8.16		8.10		9.61
Return on average tangible common equity ^{(3) (4)}	7.40		7.47		8.57		8.51		10.09
Stockholders’ equity to total assets	12.84		12.69		12.56		12.59		12.41
Tangible stockholders’ equity to tangible assets ⁽⁴⁾	9.19		9.06		9.10		9.08		8.92
Tangible common equity to tangible assets ⁽⁴⁾	8.76		8.62		8.68		8.64		8.49
Net interest rate spread	2.35		2.11		2.06		2.11		2.23
Net interest margin	2.90		2.69		2.67		2.71		2.81
Operating expenses to average assets	1.96		1.90		1.89		1.75		1.74
Efficiency ratio ⁽⁵⁾	65.67		67.86		65.77		62.86		59.56
Loan-to-deposit ratio	99.50		100.50		99.10		100.30		98.90

	At or For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Trust and Asset Management:
Wealth assets under administration and management (“AUA/M”)	$	149,106		$	147,956		$	152,797		$	150,519		$	236,891
Nest Egg AUA/M		453,803			431,434			430,413			403,647			407,478
Total AUA/M		602,909			579,390			583,210			554,166			644,369
Per Share Data:
Cash dividends per common share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20
Book value per common share at end of period		29.27			29.08			29.02			28.67			28.32
Tangible book value per common share at end of period ⁽⁴⁾		19.16			18.98			19.28			18.93			18.63
Common shares outstanding at end of period		58,383,525			58,554,871			58,397,094			58,481,418			58,812,498
Preferred shares outstanding at end of period		57,370			57,370			57,370			57,370			57,370
Number of full-service customer facilities:		39			39			39			39			39
Quarterly Average Balances
Total securities	$	2,003,206		$	2,116,911		$	2,063,633		$	2,058,711		$	2,098,421
Loans receivable, net		10,013,383			10,018,742			9,958,794			10,012,491			10,088,771
Total interest-earning assets		12,112,028			12,331,483			12,232,672			12,203,776			12,350,384
Total goodwill and intangibles		535,657			534,942			513,731			514,535			515,356
Total assets		13,311,893			13,545,052			13,438,696			13,441,218			13,556,720
Time deposits		1,916,109			2,212,750			2,339,370			2,337,458			2,414,063
Total deposits (including non-interest-bearing deposits)		10,030,051			10,286,489			10,175,856			10,173,315			10,422,332
Total borrowings		1,343,757			1,328,016			1,333,245			1,325,372			1,214,219
Total interest-bearing liabilities		9,775,836			9,987,129			9,874,358			9,872,522			10,001,968
Non-interest bearing deposits		1,597,972			1,627,376			1,634,743			1,626,165			1,634,583
Stockholders’ equity		1,715,134			1,703,326			1,689,035			1,674,453			1,673,040
Tangible stockholders’ equity ⁽⁴⁾		1,179,477			1,168,384			1,175,304			1,159,918			1,157,684

Quarterly Yields and Costs
Total securities		3.99	%		4.09	%		4.23	%		4.22	%		4.27	%
Loans receivable, net		5.37			5.38			5.46			5.46			5.46
Total interest-earning assets		5.13			5.15			5.26			5.25			5.26
Time deposits		3.91			4.34			4.58			4.46			4.24
Total cost of deposits (including non-interest-bearing deposits)		2.06			2.32			2.44			2.37			2.31
Total borrowed funds		4.83			4.91			5.07			5.19			5.14
Total interest-bearing liabilities		2.78			3.04			3.20			3.14			3.03
Net interest spread		2.35			2.11			2.06			2.11			2.23
Net interest margin		2.90			2.69			2.67			2.71			2.81

_⁽¹⁾	_{With the exception of end of quarter ratios, all ratios are based on average daily balances.}
_⁽²⁾	_{Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”}
_⁽³⁾	_{Ratios for each period are based on net income available to common stockholders.}
_⁽⁴⁾	_{Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”}
_⁽⁵⁾	_{Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.}

OceanFirst Financial Corp.
OTHER ITEMS
(dollars in thousands, except per share amounts)

NON-GAAP RECONCILIATION

	For the Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Core Earnings:
Net income available to common stockholders (GAAP)	$	20,505		$	20,905		$	24,112		$	23,369		$	27,663
(Less) add non-recurring and non-core items:
Spring Garden opening provision for credit losses		—			1,426			—			—			—
Net (gain) loss on equity investments		(205	)		5			(1,420	)		(887	)		(1,923	)
Net gain on sale of trust business		—			—			(1,438	)		—			(1,162	)
FDIC special assessment		—			—			—			—			418
Merger related expenses		—			110			1,669			—			—
Income tax expense (benefit) on items		49			(388	)		270			188			642
Core earnings (Non-GAAP)	$	20,349		$	22,058		$	23,193		$	22,670		$	25,638
Income tax expense	$	6,808		$	5,083		$	7,464		$	7,082		$	10,637
Provision for credit losses		5,340			3,467			517			3,114			591
Less: non-core provision for credit losses		—			1,426			—			—			—
Less: income tax expense (benefit) on non-core items		49			(388	)		270			188			642
Core earnings PTPP (Non-GAAP)	$	32,448		$	29,570		$	30,904		$	32,678		$	36,224
Core earnings diluted earnings per share	$	0.35		$	0.38		$	0.39		$	0.39		$	0.44
Core earnings PTPP diluted earnings per share	$	0.56		$	0.51		$	0.53		$	0.56		$	0.62

Core Ratios (Annualized):
Return on average assets		0.62	%		0.65	%		0.69	%		0.68	%		0.76	%
Return on average tangible stockholders’ equity		7.00			7.51			7.85			7.86			8.91
Return on average tangible common equity		7.34			7.89			8.24			8.26			9.36
Efficiency ratio		65.81			67.74			66.00			63.47			61.05

	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Tangible Equity:
Total stockholders’ equity	$	1,709,117		$	1,702,757		$	1,694,508		$	1,676,669		$	1,665,837
Less:
Goodwill		523,308			523,308			506,146			506,146			506,146
Intangibles		11,740			12,680			7,056			7,859			8,669
Tangible stockholders’ equity		1,174,069			1,166,769			1,181,306			1,162,664			1,151,022
Less:
Preferred stock		55,527			55,527			55,527			55,527			55,527
Tangible common equity	$	1,118,542		$	1,111,242		$	1,125,779		$	1,107,137		$	1,095,495

Tangible Assets:
Total assets	$	13,309,278		$	13,421,247		$	13,488,483		$	13,321,755		$	13,418,978
Less:
Goodwill		523,308			523,308			506,146			506,146			506,146
Intangibles		11,740			12,680			7,056			7,859			8,669
Tangible assets	$	12,774,230		$	12,885,259		$	12,975,281		$	12,807,750		$	12,904,163

Tangible stockholders’ equity to tangible assets		9.19	%		9.06	%		9.10	%		9.08	%		8.92	%
Tangible common equity to tangible assets		8.76	%		8.62	%		8.68	%		8.64	%		8.49	%

Company Contact:

Patrick S. Barrett
Chief Financial Officer
OceanFirst Financial Corp.
Tel: (732) 240-4500, ext. 27507
Email: pbarrett@oceanfirst.com

The MIL Network –

April 25, 2025

MIL-OSI USA: Padilla Joins Federal and State Emergency Officials to Survey Pacific Palisades Fire Recovery Area; Highlights Bipartisan Legislation to Address Wildfire Risks

US Senate News:

Source: United States Senator Alex Padilla (D-Calif.)

Padilla Joins Federal and State Emergency Officials to Survey Pacific Palisades Fire Recovery Area; Highlights Bipartisan Legislation to Address Wildfire Risks

WATCH: Padilla discusses importance of bipartisan solutions like the Senate Fix Our Forests Act to combat wildfire crisisLOS ANGELES, CA — Just over 100 days after the Los Angeles fires first ignited, U.S. Senator Alex Padilla (D-Calif.) and California Natural Resources Secretary Wade Crowfoot joined federal and state emergency officials for a tour today of the Pacific Palisades fire recovery area led by the Federal Emergency Management Agency (FEMA). The tour consisted of a visit to businesses and residences impacted by the Pacific Palisades fire — with officials from FEMA, the U.S. Army Corps of Engineers (USACE), CAL FIRE, and the California Governor’s Office of Emergency Services (Cal OES) — followed by a press conference at a cleared debris site where Padilla discussed his new bipartisan legislation to address wildfire risks.
In the aftermath of the devastating Southern California fires, Padilla’s Fix Our Forests Act would help combat catastrophic wildfires, restore forest ecosystems, and make federal forest management more efficient and responsive. The comprehensive Senate bill reflects months of bipartisan Senate negotiations to find consensus on how to best improve forest management practices, accelerate processes to protect communities, advance watershed restoration, and strengthen partnerships between federal agencies, states, tribes, and private stakeholders. The Senate version of the bill would also bolster coordination efforts across agencies through a new Wildfire Intelligence Center, which would streamline the federal response and create a whole-of-government approach to combating wildfires.
A list of Senate Fix Our Forests Act provisions particularly impactful for California is available here. A one-pager on the bill is available here.
“As thousands of Los Angeles families look at a long road to recovery ahead, we need to do everything in our power not just to rebuild, but to prevent devastation from future wildfires,” said Senator Padilla. “That’s why with these LA communities in mind, I convened a bipartisan group of Western Senators to reassess how we prevent and respond to wildfires. Our Senate version of the Fix Our Forests Act would increase the speed and scale of our wildfire prevention and mitigation efforts by expediting the removal of hazardous fuels, building ‘fuel breaks’ to stop mega wildfires, and creating a National Wildfire Intelligence Center to streamline federal response. We’re breaking through this harsh political climate with bipartisan solutions to both fight deadly wildfires and prevent even more greenhouse gas emissions — we can’t take this opportunity for granted.”
“The bipartisan Fix Our Forests Act removes barriers and builds on California’s progress to accelerate more work on federal lands, faster,” said California Natural Resources Secretary Wade Crowfoot. “As an all-lands, all-hands approach, it is one more tool in the arsenal against the threat of wildfires. As we enter peak fire season, reducing catastrophic wildfire risk requires everyone to do their part.”
“Across California, we are working year-round to reduce wildfire risk and enhance prevention efforts, and we are seeing results,” said Josh Nettles, CAL FIRE Assistant Region Chief. “Now by enhancing interagency coordination and promoting fire-resistant building methods and defensible space practices, the Fix Our Forests Act will help protect communities in the wildland-urban interface and elsewhere.”
The American West has long been prone to wildfires, but climate change, prolonged drought, and the buildup of dry fuels have increasingly intensified these fires and extended fire seasons. Wildfires today are more catastrophic — growing larger, spreading faster, and burning more land than ever before. Nationwide, total acres burned rose from 2.7 million in 2023 to nearly 9 million in 2024, a 231 percent increase.
California averages more than 7,500 wildfires a year. Not including the recent Los Angeles fires, six of the top 10 most destructive fires, three of the top five deadliest fires, and all of the state’s nine largest fires have burned since 2017. The status quo is simply unsustainable, and responding to the scale and magnitude of the crisis on the ground is essential to keeping California communities safe.
Additionally, wildfires release carbon dioxide and other greenhouse gas emissions that accelerate climate change. California’s 2020 fire season, the worst on record, emitted enough greenhouse gases to erase nearly two decades of progress on emissions reductions in California. Addressing this wildfire emergency is critical to ensuring that our climate progress is not undermined by the devastating impacts of these fires.
In the aftermath of the devastating Southern California fires, Senator Padilla has introduced more than 10 bills to help prevent and respond to future disasters. In February, Padilla introduced bipartisan legislation to create a national Wildfire Intelligence Center to streamline federal response and create a whole-of-government approach to combat wildfires. He also announced a package of three bipartisan bills to bolster fire resilience and proactive mitigation efforts, including the Fire-Safe Electrical Corridors Act, the Wildfire Emergency Act, and the Disaster Mitigation and Tax Parity Act. In January, Padilla introduced another suite of bipartisan bills to strengthen wildfire recovery and resilience, including the Wildland Firefighter Paycheck Protection Act, the Fire Suppression and Response Funding Assurance Act, and the Disaster Housing Reform for American Families Act. Additionally, earlier this month, he introduced the FEMA Independence Act, bipartisan legislation to restore the FEMA as an independent, cabinet-level agency and improve efficiency in federal emergency response efforts.
Senator Padilla also visited Altadena last month, joining Senator Cory Booker (D-N.J.), FEMA, local leaders, and representatives from the Small Business Administration, Environmental Protection Agency, and USACE for a tour and briefing on cleanup and recovery efforts in the aftermath of the Eaton Fire.
Video of today’s press conference is available here, and can be downloaded here.
Additional photos from today’s tour are available here.

MIL OSI USA News –

April 25, 2025

MIL-OSI USA: Founder and Former CEO of Biscayne Capital Sentenced to 10 Years in Prison for $130M Fraud Scheme

Source: US State of California

Roberto Gustavo Cortes Ripalda (Cortes), 58, the co-founder, co-owner, and CEO of international advisory firm Biscayne Capital, was sentenced earlier today in Brooklyn, New York to 10 years in prison for conspiracy to commit wire fraud. Cortes pleaded guilty to the charge in September 2023. Cortes was also ordered to pay $3.4 million in forfeiture and $103million in restitution to over 110 victims.

“For more than five years, Roberto Cortes and his co-conspirators ran Biscayne Capital as a Ponzi scheme, lying to investors — including the defendant’s own friends and family members — and ultimately causing more than $155 million in investor losses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The sentence will hold Cortes accountable for his years of lies and deception. Thank you to our partners for their hard work and collaboration to achieve this result.”

“Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies. Today’s sentence demonstrates our Office’s commitment to holding accountable investment professionals who abuse the trust of their clients for personal profit.”

“Regardless of the complexity of the investigation, IRS Criminal Investigation Special Agents and our law enforcement partners will utilize their skills and unique authorities to hold bad actors like the defendant accountable,” stated IRS-CI Executive Special Agent in Charge Kareem A. Carter. “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors. Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

According to court filings, Cortes and his co-defendant Ernesto Heraclito Weisson Pazmino (Weisson) founded Biscayne Capital in 2005 to support the financing of South Bay, their real estate development business focused on acquiring and demolishing properties to build luxury homes. After South Bay began experiencing financial trouble in 2007, Cortes and Weisson recruited investors to inject funds into South Bay’s operations. Rather than using those investor funds to fund South Bay’s real estate development projects, Cortes, Weisson, and their co-conspirators used the bulk of the funds to pay outstanding interest and principal debt obligations to other investors.

Cortes and his co-conspirators took numerous steps to perpetuate and conceal the scheme, including distributing investment documents with false and misleading information, deceiving investors about the purpose, risk, return, and security of their investments, and creating and sending fake account statements to unsuspecting clients to conceal the scheme. By the time the Biscayne Capital/South Bay Ponzi scheme collapsed and Biscayne Capital went into liquidation, Biscayne Capital clients had lost over $155 million.

IRS-CI investigated the case.

Bank Integrity Unit Deputy Chief Randall Warden and Trial Attorney Morgan Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Drew Rolle and Benjamin Weintraub for the Eastern District of New York are prosecuting the case. Trial Attorney Brandon Burkart of the Criminal Division’s Fraud Section assisted with the investigation.

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from Spain and obtaining evidence in this case. The Department of Justice also thanks the Governments of the Cayman Islands, Curaçao, Ecuador, Spain and Switzerland for their valuable support.

MIL OSI USA News –

April 25, 2025

MIL-OSI Security: Founder and Former CEO of Biscayne Capital Sentenced to 10 Years in Prison for $130M Fraud Scheme

Source: United States Attorneys General 1

Roberto Gustavo Cortes Ripalda (Cortes), 58, the co-founder, co-owner, and CEO of international advisory firm Biscayne Capital, was sentenced earlier today in Brooklyn, New York to 10 years in prison for conspiracy to commit wire fraud. Cortes pleaded guilty to the charge in September 2023. Cortes was also ordered to pay $3.4 million in forfeiture and $103million in restitution to over 110 victims.

“For more than five years, Roberto Cortes and his co-conspirators ran Biscayne Capital as a Ponzi scheme, lying to investors — including the defendant’s own friends and family members — and ultimately causing more than $155 million in investor losses,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The sentence will hold Cortes accountable for his years of lies and deception. Thank you to our partners for their hard work and collaboration to achieve this result.”

“Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe,” said U.S. Attorney John J. Durham for the Eastern District of New York. “Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies. Today’s sentence demonstrates our Office’s commitment to holding accountable investment professionals who abuse the trust of their clients for personal profit.”

“Regardless of the complexity of the investigation, IRS Criminal Investigation Special Agents and our law enforcement partners will utilize their skills and unique authorities to hold bad actors like the defendant accountable,” stated IRS-CI Executive Special Agent in Charge Kareem A. Carter. “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors. Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”

According to court filings, Cortes and his co-defendant Ernesto Heraclito Weisson Pazmino (Weisson) founded Biscayne Capital in 2005 to support the financing of South Bay, their real estate development business focused on acquiring and demolishing properties to build luxury homes. After South Bay began experiencing financial trouble in 2007, Cortes and Weisson recruited investors to inject funds into South Bay’s operations. Rather than using those investor funds to fund South Bay’s real estate development projects, Cortes, Weisson, and their co-conspirators used the bulk of the funds to pay outstanding interest and principal debt obligations to other investors.

Cortes and his co-conspirators took numerous steps to perpetuate and conceal the scheme, including distributing investment documents with false and misleading information, deceiving investors about the purpose, risk, return, and security of their investments, and creating and sending fake account statements to unsuspecting clients to conceal the scheme. By the time the Biscayne Capital/South Bay Ponzi scheme collapsed and Biscayne Capital went into liquidation, Biscayne Capital clients had lost over $155 million.

IRS-CI investigated the case.

Bank Integrity Unit Deputy Chief Randall Warden and Trial Attorney Morgan Cohen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Drew Rolle and Benjamin Weintraub for the Eastern District of New York are prosecuting the case. Trial Attorney Brandon Burkart of the Criminal Division’s Fraud Section assisted with the investigation.

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition from Spain and obtaining evidence in this case. The Department of Justice also thanks the Governments of the Cayman Islands, Curaçao, Ecuador, Spain and Switzerland for their valuable support.

MIL Security OSI –

April 25, 2025

MIL-OSI USA: April 24th, 2025 Heinrich Fights Against Trump-Musk Administration’s Tax Cuts for Billionaires, with Tax Cuts for New Mexican Workers Legislation

US Senate News:

Source: United States Senator for New Mexico Martin Heinrich
WASHINGTON — U.S. Senator Martin Heinrich joined U.S. Senators Catherine Cortez Masto (D-Nev.), Michael Bennet (D-Colo.), and 42 democratic senators in introducing the Tax Cut for Workers Act to give millions of hardworking Americans a much-needed tax break.
The existing Earned Income Tax Credit (EITC) – the Worker Tax Cut – has been delivering tax relief for millions of workers for decades. But it’s just not enough. This legislation would cut taxes for working class Americans without children, who currently receive a much smaller EITC than workers with children. This expansion would include over 111,000 New Mexicans by nearly tripling the average tax break many of these Americans receive from the existing EITC. It also extends eligibility for the tax cut to workers under the age of 25 and over the age of 64.
“Under this administration, we are seeing incredible tax breaks for the rich like Donald Trump and Elon Musk. Here’s an idea: let’s cut taxes for the middle class instead,” said Heinrich. “Through the Tax Cuts for Workers Act, I am fighting back. I will never stop advocating for the hardworking families New Mexico struggling with rising costs. Because it’s time our economy works for the people who build it — not just those who bankroll it.”
In addition to Heinrich, Cortez Masto, and Bennet, the follow cosponsors include Senators Angela Alsobrooks (D-Md.), Tammy Baldwin (D-Wis.), Richard Blumenthal (D-Conn.), Lisa Blunt Rochester (D-Del.), Cory Booker (D-N.J.), Maria Cantwell (D-Wash.), Chris Coons (D-Del.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), John Fetterman (D-Pa.), Ruben Gallego (D-Ariz.), Kirsten Gillibrand (D-N.Y.), John Hickenlooper (D-Colo.), Mazie Hirono (D-Hawaii), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Andy Kim (D-N.J.), Angus King (I-Maine), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Patty Murray (D-Wash.), Alex Padilla (D-Calif.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Adam Schiff (D-Calif.), Chuck Schumer (D-N.Y.), Jeanne Shaheen (D-N.H.), Elissa Slotkin (D-Mich.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Mark Warner (D-Va.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Peter Welch (D-Vt.), Sheldon Whitehouse (D-R.I.), and Ron Wyden (D-Ore.).
Read the full bill here.

MIL OSI USA News –

April 25, 2025

MIL-OSI USA: Payroll Services Company Owner Sentenced to Prison

Source: US State of Vermont

Defendant Defrauded the United States of More than $20M in Taxes While Amassing a Large Collection of Luxury Goods Including 27 Ferraris

A Florida man was sentenced today to 50 months in prison for not paying taxes withheld from his employees’ wages and filing a false tax return.

The following is according to court documents and statements made in court: Matthew Brown, of Palm Beach Gardens, Florida, owned and operated multiple businesses in and around Martin County, Florida. One of these businesses was a payroll services company known as Elite Payroll. Elite Payroll provided payroll services to small businesses in and around St. Lucie, Martin, and Palm Beach Counties. Elite Payroll was hired by its clients to collect and pay over the Social Security, Medicare, and federal income taxes withheld from clients’ employees’ wages and to pay over those funds to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, including because they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.

Between 2014 and 2022, Brown did not pay over $20,000,000 in taxes withheld from the wages of employees of clients of Elite Payroll and from other businesses he controlled and instead enriched himself. To effectuate his scheme, Brown charged his clients the full amount of their tax liabilities but then filed false employment tax returns with the IRS that substantially underreported their liabilities, and pocketing the difference. For example, for one quarter in 2021, a client owed approximately $219,000 in taxes. Elite Payroll collected that amount from the client but filed a false tax return with the IRS claiming that the client only owed approximately $32,000, which Elite paid. Brown then kept the remaining approximately $190,000.

Instead of paying over the funds, Brown purchased commercial and residential real estate, including his multimillion-dollar home, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a large collection of cars including Porsches, Rolls Royces, and 27 Ferraris.

In addition to his prison sentence, U.S. District Judge Aileen M. Cannon for the Southern District of Florida ordered Brown to serve two years of supervised release and to pay $22,401,585 in restitution, and a $200,000 fine to the United States.

Acting Deputy Assistant Attorney Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Hayden O’Bryne of the Southern District of Florida made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Michael Porter for the Southern District of Florida prosecuted the case.

MIL OSI USA News –

April 25, 2025

MIL-OSI Security: Payroll Services Company Owner Sentenced to Prison

Source: United States Attorneys General

Defendant Defrauded the United States of More than $20M in Taxes While Amassing a Large Collection of Luxury Goods Including 27 Ferraris

A Florida man was sentenced today to 50 months in prison for not paying taxes withheld from his employees’ wages and filing a false tax return.

The following is according to court documents and statements made in court: Matthew Brown, of Palm Beach Gardens, Florida, owned and operated multiple businesses in and around Martin County, Florida. One of these businesses was a payroll services company known as Elite Payroll. Elite Payroll provided payroll services to small businesses in and around St. Lucie, Martin, and Palm Beach Counties. Elite Payroll was hired by its clients to collect and pay over the Social Security, Medicare, and federal income taxes withheld from clients’ employees’ wages and to pay over those funds to the IRS each quarter. The timely payment of these taxes is critical to the functioning of the U.S. government, including because they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.

Between 2014 and 2022, Brown did not pay over $20,000,000 in taxes withheld from the wages of employees of clients of Elite Payroll and from other businesses he controlled and instead enriched himself. To effectuate his scheme, Brown charged his clients the full amount of their tax liabilities but then filed false employment tax returns with the IRS that substantially underreported their liabilities, and pocketing the difference. For example, for one quarter in 2021, a client owed approximately $219,000 in taxes. Elite Payroll collected that amount from the client but filed a false tax return with the IRS claiming that the client only owed approximately $32,000, which Elite paid. Brown then kept the remaining approximately $190,000.

Instead of paying over the funds, Brown purchased commercial and residential real estate, including his multimillion-dollar home, a Valhalla 55 Sport Yacht, a Falcon 50 Aircraft, and a large collection of cars including Porsches, Rolls Royces, and 27 Ferraris.

In addition to his prison sentence, U.S. District Judge Aileen M. Cannon for the Southern District of Florida ordered Brown to serve two years of supervised release and to pay $22,401,585 in restitution, and a $200,000 fine to the United States.

Acting Deputy Assistant Attorney Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Hayden O’Bryne of the Southern District of Florida made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Michael Porter for the Southern District of Florida prosecuted the case.

MIL Security OSI –

April 25, 2025

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

Source: GlobeNewswire (MIL-OSI)

ST. PETERSBURG, Fla., April 24, 2025 (GLOBE NEWSWIRE) — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported a net loss of $0.3 million, or $0.17 per common share and diluted common share, for the first quarter of 2025, a decrease of 103.4% compared to $9.8 million, or $2.27 per common share or $2.11 per diluted common share, in the fourth quarter of 2024.

“While we were encouraged by net interest margin expansion and steady operating expenses during the quarter, our operating results were impacted by deteriorating economic conditions, resulting in net charge-offs and provision expense continuing to be elevated and lower valuations on our portfolio of loans measured at fair value,” stated Thomas G. Zernick, Chief Executive Officer. “Our business customers have been impacted by inflationary pressures, the continued high interest rate environment, recent macro economic changes and the resulting uncertainty. While we wait for clarity regarding the level and duration of the tariffs and begin to see the impact to the general economy from the recent policy changes, we will continue our practice of robust loan oversight and maintain close contact with our borrowers to better understand the longer-term implication to their businesses.”

“Part of our strategic plan is to grow recurring revenue through net interest income, thereby resulting in less reliance on the gain on sale from government guaranteed loans,” Zernick continued. “A critical element of this strategy focuses on growing our low-cost deposit account base to fund our rapidly expanding conventional commercial and consumer loan portfolios. During the quarter, we did a good job of growing core deposit accounts while letting higher-cost time deposits run off. We serve individuals, families and small businesses, with a focus on checking and savings accounts which are not only less rate sensitive but also are far less volatile. Moreover, our focus on providing checking and savings accounts to a broad segment of the communities we serve expands our overall franchise in the attractive Tampa Bay region and increases opportunities for offering consumer loans, residential mortgages, and small business loans throughout our markets. As management works diligently to address credit concerns moving forward, we are exploring strategies to de-risk unguaranteed SBA loan balances on our balance sheet including portfolio sales and continuing to strengthen credit underwriting on SBA 7(a) loans.”

“One of the highlights of the first quarter was strong loan growth within the community bank, supported by steady loan demand in the greater Tampa Bay market,” said Zernick. “Total loans held for investment increased nearly 2% during the first quarter and 16% over the past year. Community bank loans increased 4% during the current quarter, which included increases in CRE and consumer loans, while government guaranteed loan balances decreased 2% during the quarter. Despite a volatile national economic environment, our focus on local relationships and personalized banking solutions remains at the core of our success. We remain confident in our ability to return to profitability and drive long-term shareholder value while staying true to our mission of supporting the financial well-being of our local communities.”

First Quarter 2025 Performance Review

Net interest margin was 3.77% in the first quarter of 2025, an increase of 17 basis points from 3.60% in the fourth quarter of 2024 and an increase of 35 basis points from 3.42% in the first quarter of 2024.
The Company’s government guaranteed loan team originated $106.3 million in new loans during the first quarter of 2025, a slight decrease from $107.8 million of loans produced in the previous quarter, and a decrease from $130.6 million of loans produced during the first quarter of 2024. Since the launch in 2022 of the Company’s Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less, the Company has originated 6,207 Bolt loans totaling $802.0 million, of which 481 Bolt loans totaling $60.5 million were originated during the first quarter.
As we reported last quarter, the Company is pausing the practice of electing to measure SBA 7(a) loans at fair value and continued that in the first quarter, however one originated USDA guaranteed loan for $4.8 million was measured at fair value during the first quarter of 2025 versus no loans in the fourth quarter of 2024 and $37 million in the first quarter of 2024.
Loans held for investment increased by $18.3 million, or 1.7%, during the first quarter of 2025 to $1.08 billion and increased $149.9 million, or 16.0%, over the past year. During the quarter, the Company originated $157.5 million of loans and sold $72.5 million of government guaranteed loan balances.
Deposits decreased $15.0 million, or 1.3%, during the first quarter of 2025 and increased $121.0 million, or 12.0%, over the past year to $1.13 billion. A $19.5 million decrease in deposits during the quarter was in primarily high cost interest-bearing time deposits while noninterest-bearing checking accounts increased $4.5 million during the quarter.
Book value and tangible book value at March 31, 2025 were $22.77 per common share, a decrease from $22.95 at December 31, 2024.

Results of Operations

Net Income (Loss)

The Company had a net loss of $0.3 million for the first quarter of 2025, compared to net income of $9.8 million in the fourth quarter of 2024 and $0.8 million in the first quarter of 2024. The change in the first quarter of 2025 from the preceding quarter was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million in the fourth quarter of 2024, which was part of a sale-leaseback transaction. Also contributing to lower earnings was a decrease in gain on sale of government guaranteed loans of $1.1 million, a decrease in government guaranteed loan fair value gains of $0.7 million, and an increase in noninterest expense of $0.5 million, primarily higher occupancy and data processing costs, partially offset by an increase in net interest income of $0.3 million and a decrease in income tax expense on continuing operations of $3.4 million. The change from the first quarter of 2024 was due to a decrease in gain on sale of government guaranteed loans of $0.8 million, a decrease in government guaranteed loan fair value gains of $4.1 million, and a decrease in government guaranteed loan packaging fees of $0.7 million. This was partially offset by an increase in net interest income of $2.3 million and a decrease in noninterest expense of $2.0 million.

Net Interest Income and Net Interest Margin

Net interest income from continuing operations was $11.0 million in the first quarter of 2025, an increase from $10.7 million during the fourth quarter of 2024, and an increase from $8.7 million during the first quarter of 2024. The net interest margin was 3.77% in the first quarter of 2025, an increase of 17 basis points from 3.60% in the fourth quarter of 2024 and an increase of 35 basis points from 3.42% in the first quarter of 2024.

The increase in net interest income from continuing operations during the first quarter of 2025, as compared to the fourth quarter of 2024, was mainly due to a decrease in interest cost on deposits of $1.2 million, partially offset by a decrease in loan interest income, including fees, of $1.0 million.

The increase in net interest income from continuing operations during the first quarter of 2025, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of $1.5 million and a decrease in interest expense on deposits of $0.8 million.

Noninterest Income

Noninterest income from continuing operations was $8.8 million for the first quarter of 2025, which was a decrease from $22.3 million in the fourth quarter of 2024 and a decrease from $14.3 million in the first quarter of 2024. This $5.5 million decrease is due to lower borrower demand combined with tighter credit guidelines deployed over the past year. The decrease in the first quarter of 2025, as compared to the fourth quarter of 2024, was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million in the fourth quarter of 2024, which was part of a sale-leaseback transaction, and decreases in gain on sale of government guaranteed loans of $1.1 million and government guaranteed loan fair value gains of $0.7 million. The decrease in the first quarter of 2025, as compared to the first quarter of 2024, was the result of decreases in gain on sale of government guaranteed loans of $0.8 million, fair value gains on government guaranteed loans of $4.1 million, and government guaranteed loan packaging fees of $0.7 million.

Noninterest Expense

Noninterest expense from continuing operations was $15.8 million in the first quarter of 2025 compared to $15.3 million in the fourth quarter of 2024 and $17.8 million in the first quarter of 2024. The increase in the first quarter of 2025, as compared to the prior quarter, was primarily due to increases in occupancy expense of $0.4 million, data processing expense of $0.3 million, and loan origination and collection expenses of $0.3 million, partially offset by a decrease in compensation expense of $0.4 million. The decrease in the first quarter of 2025, as compared to the first quarter of 2024, was primarily due to lower compensation expense of $1.5 million, professional fees of $0.6 million, and loan origination and collection expenses of $0.7 million. This was partially offset by higher occupancy expense of $0.5 million and data processing expense of $0.5 million.

Balance Sheet

Assets

Total assets increased $3.7 million, or 0.3%, during the first quarter of 2025 to $1.29 billion, mainly due to increases in loans held for investment of $18.3 million, partially offset by a decrease in cash and cash equivalents of $14.6 million. Compared to the end of the first quarter last year, total assets increased $147.8 million, or 12.9%, driven primarily by growth of loans held for investment of $149.9 million.

Loans

Loans held for investment increased $18.3 million, or 1.7%, during the first quarter of 2025 and $149.9 million, or 16.0%, over the past year to $1.08 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.

Deposits

Deposits decreased $15.0 million, or 1.3%, during the first quarter of 2025 and increased $121.0 million, or 12.0%, from the first quarter of 2024, ending March 31, 2025 at $1.13 billion. During the first quarter, there were decreases in savings and money market deposit account balances of $6.7 million and time deposit balances of $17.1 million, partially offset by increases in noninterest-bearing deposit account balances of $4.5 million and interest-bearing transaction account balances of $4.3 million. The majority of the deposits are generated through the community bank in the Tampa Bay/Sarasota area. At March 31, 2025, approximately 81% of total deposits were insured by the FDIC. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. At March 31, 2025, December 31, 2024, and March 31, 2024, the Company had $112.3 million, $112.1 million, and $30.5 million, respectively, of brokered deposits.

Asset Quality

The Company recorded a provision for credit losses in the first quarter of $4.4 million, compared to provisions of $4.5 million for the fourth quarter of 2024 and $4.1 million during the first quarter of 2024.

The ratio of ACL to total loans held for investment at amortized cost was 1.61% at March 31, 2025, 1.54% as of December 31, 2024, and 1.62% as of March 31, 2024. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 1.84% at March 31, 2025, 1.79% as of December 31, 2024, and 1.88% as of March 31, 2024.

Net charge-offs for the first quarter of 2025 were $3.3 million, which was a decrease from $3.4 million for the fourth quarter of 2024 and $3.7 million in the first quarter of 2024. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.28% for the first quarter of 2025, compared to 1.34% in the fourth quarter of 2024 and 1.71% in the first quarter of 2024. Nonperforming assets were 2.08% of total assets as of March 31, 2025, compared to 1.50% as of December 31, 2024, and 0.97% as of March 31, 2024. Nonperforming assets, excluding government guaranteed loan balances, were 1.22% of total assets as of March 31, 2025, compared to 1.06% as of December 31, 2024, and 0.70% as of March 31, 2024. As we discussed in previous quarters, the Bank developed an express modification program for SBA 7(a) borrowers to help those borrowers who are challenged with larger payments in the higher interest rate environment compared to interest rates at the time the loans were originated.

Capital

The Bank’s Tier 1 leverage ratio was 8.56% as of March 31, 2025, compared to 8.82% as of December 31, 2024, and 9.12% as of March 31, 2024. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.47% as of March 31, 2025, compared to 10.89% as of December 31, 2024, and 11.04% as of March 31, 2024. The total capital to risk-weighted assets ratio was 11.73% as of March 31, 2025, compared to 12.14% as of December 31, 2024, and 12.29% as of March 31, 2024.

Liquidity

The Bank’s overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at March 31, 2025 was 8.04%, as compared to 9.17% at December 31, 2024. The Bank has robust liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of March 31, 2025, the Bank had $20.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compared to no borrowings from FHLB, the FRB, or other financial institutions at December 31, 2024.

Recent Events

Share Repurchase Program. During the first quarter of 2025, the Company announced that its Board of Directors has adopted a share repurchase program. Under the repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares, over a period beginning on January 28, 2025, and continuing until the earlier of the completion of the repurchase, or December 31, 2025, or termination of the program by the Board of Directors. To date, the Company has purchased $335 thousand of shares through this share repurchase program.

Second Quarter Common Stock Dividend. On April 22, 2025, BayFirst’s Board of Directors declared a second quarter 2025 cash dividend of $0.08 per common share. The dividend will be payable June 15, 2025 to common shareholders of record as of June 1, 2025. The Company has continuously paid quarterly common stock cash dividends since 2016.

Conference Call

BayFirst’s management team will host a conference call on Friday, April 25, 2025, at 9:00 a.m. ET to discuss its first quarter results. Interested investors may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com. Investment professionals are invited to dial (800) 549-8228 to participate in the call using Conference ID 90275. A replay of the call will be available for one year at www.bayfirstfinancial.com.

About BayFirst Financial Corp.

BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. It was named the best bank in Florida in 2024, according to Forbes and was the 10th largest SBA 7(a) lender by number of units originated and 19th largest by dollar volume nationwide through the SBA’s quarter ended March 31, 2025. As of March 31, 2025, BayFirst Financial Corp. had $1.29 billion in total assets.

Forward-Looking Statements

In addition to the historical information contained herein, this presentation includes “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.


BAYFIRST FINANCIAL CORP. SELECTED FINANCIAL DATA (Unaudited)

	At or for the three months ended
(Dollars in thousands, except for share data)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Net income (loss)	$	(335	)	$	9,776		$	1,137		$	866		$	824
Balance sheet data:
Average loans held for investment at amortized cost		1,027,648			1,003,867			948,528			902,417			855,040
Average total assets		1,287,618			1,273,296			1,228,040			1,178,501			1,126,315
Average common shareholders’ equity		96,053			87,961			86,381			84,948			85,385
Total loans held for investment		1,084,817			1,066,559			1,042,445			1,008,314			934,868
Total loans held for investment, excl gov’t gtd loan balances		943,979			917,075			885,444			844,659			776,302
Allowance for credit losses		16,513			15,512			14,186			13,843			13,906
Total assets		1,291,957			1,288,297			1,245,099			1,217,869			1,144,194
Total deposits		1,128,267			1,143,229			1,112,196			1,042,388			1,007,315
Common shareholders’ equity		94,034			94,869			86,242			84,911			84,578
Share data:
Basic earnings (loss) per common share	$	(0.17	)	$	2.27		$	0.18		$	0.12		$	0.11
Diluted earnings (loss) per common share		(0.17	)		2.11			0.18			0.12			0.11
Dividends per common share		0.08			0.08			0.08			0.08			0.08
Book value per common share		22.77			22.95			20.86			20.54			20.45
Tangible book value per common share ⁽¹⁾		22.77			22.95			20.86			20.54			20.45
Performance and capital ratios:
Return on average assets⁽²⁾	(0.10		)%		3.07	%		0.37	%		0.29	%		0.29	%
Return on average common equity⁽²⁾	(3.00		)%		42.71	%		3.48	%		2.26	%		2.06	%
Net interest margin⁽²⁾		3.77	%		3.60	%		3.34	%		3.43	%		3.42	%
Dividend payout ratio	(46.01		)%		3.52	%		43.98	%		68.91	%		75.27	%
Asset quality ratios:
Net charge-offs	$	3,301		$	3,369		$	2,757		$	3,261		$	3,652
Net charge-offs/avg loans held for investment at amortized cost⁽²⁾		1.28	%		1.34	%		1.16	%		1.45	%		1.71	%
Nonperforming loans⁽³⁾	$	24,806		$	17,607		$	15,489		$	12,312		$	9,877
Nonperforming loans (excluding gov’t gtd balance)⁽³⁾	$	15,078		$	13,570		$	10,992		$	8,054		$	7,568
Nonperforming loans/total loans held for investment⁽³⁾		2.42	%		1.75	%		1.62	%		1.34	%		1.15	%
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment⁽³⁾		1.47	%		1.35	%		1.15	%		0.87	%		0.88	%
ACL/Total loans held for investment at amortized cost		1.61	%		1.54	%		1.48	%		1.50	%		1.62	%
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans		1.84	%		1.79	%		1.70	%		1.73	%		1.88	%
Other Data:
Full-time equivalent employees		305			299			295			302			313
Banking center offices		12			12			12			12			12
⁽¹⁾ See section entitled “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures” below for a reconciliation to most comparable GAAP equivalent.
⁽²⁾ Annualized
⁽³⁾ Excludes loans measured at fair value

Reconciliation and Management Explanation of Non-GAAP Financial Measures

Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders’ equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.

The following presents the calculation of the non-GAAP financial measures.


Tangible Common Shareholders’ Equity and Tangible Book Value Per Common Share (Unaudited)
	As of
(Dollars in thousands, except for share data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total shareholders’ equity	$	110,085		$	110,920		$	102,293		$	100,962		$	100,629
Less: Preferred stock liquidation preference		(16,051	)		(16,051	)		(16,051	)		(16,051	)		(16,051	)
Total equity available to common shareholders		94,034			94,869			86,242			84,911			84,578
Less: Goodwill		—			—			—			—			—
Tangible common shareholders’ equity	$	94,034		$	94,869		$	86,242		$	84,911		$	84,578

Common shares outstanding		4,129,027			4,132,986			4,134,059			4,134,219			4,134,914
Tangible book value per common share	$	22.77		$	22.95		$	20.86		$	20.54		$	20.45

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)	3/31/2025			12/31/2024			3/31/2024
Assets	(Unaudited)						(Unaudited)
Cash and due from banks	$	6,517		$	4,499		$	4,425
Interest-bearing deposits in banks		56,637			73,289			53,080
Cash and cash equivalents		63,154			77,788			57,505
Time deposits in banks		2,025			2,270			3,000
Investment securities available for sale, at fair value (amortized cost $39,507, $40,279, and $46,816 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively)		36,318			36,291			42,514
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $12, $12, and $14 (fair value: $2,356, $2,346, and $2,352 at March 31, 2025, December 31, 2024, and March 31, 2024, respectively)		2,488			2,488			2,487
Nonmarketable equity securities		5,480			4,526			5,228
Government guaranteed loans held for sale		—			—			2,226
Government guaranteed loans held for investment, at fair value		57,901			60,833			77,769
Loans held for investment, at amortized cost		1,026,916			1,005,726			857,099
Allowance for credit losses on loans		(16,513	)		(15,512	)		(13,906	)
Net Loans held for investment, at amortized cost		1,010,403			990,214			843,193
Accrued interest receivable		9,153			9,155			7,625
Premises and equipment, net		32,769			33,249			39,327
Loan servicing rights		16,460			16,534			15,742
Right-of-use operating lease assets		15,484			15,814			2,499
Bank owned life insurance		26,696			26,513			25,974
Other real estate owned		132			132			404
Other assets		13,494			12,490			18,401
Assets from discontinued operations		—			—			300
Total assets	$	1,291,957		$	1,288,297		$	1,144,194
Liabilities:
Noninterest-bearing deposit accounts	$	106,236		$	101,743		$	96,977
Interest-bearing transaction accounts		261,074			256,793			250,478
Savings and money market deposit accounts		467,766			474,425			391,915
Time deposits		293,191			310,268			267,945
Total deposits		1,128,267			1,143,229			1,007,315
FHLB borrowings		20,000			—			15,000
Subordinated debentures		5,957			5,956			5,950
Notes payable		1,820			1,934			2,276
Accrued interest payable		1,053			1,036			1,598
Operating lease liabilities		14,102			14,510			2,673
Deferred income tax liabilities		648			301			728
Accrued expenses and other liabilities		10,025			10,411			7,496
Liabilities from discontinued operations		—			—			529
Total liabilities		1,181,872			1,177,377			1,043,565
Shareholders’ equity:	(Unaudited)						(Unaudited)
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $6,395 each period		6,161			6,161			6,161
Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $3,210 each period		3,123			3,123			3,123
Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024; aggregate liquidation preference of $6,446 at March 31, 2025, December 31, 2024, and March 31, 2024		6,446			6,446			6,446
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,129,027, 4,132,986, and 4,134,914 shares issued and outstanding at March 31, 2025, December 31, 2024, and March 31, 2024, respectively		54,657			54,764			54,776
Accumulated other comprehensive loss, net		(2,378	)		(2,956	)		(3,188	)
Unearned compensation		(1,006	)		(752	)		(1,192	)
Retained earnings		43,082			44,134			34,503
Total shareholders’ equity		110,085			110,920			100,629
Total liabilities and shareholders’ equity	$	1,291,957		$	1,288,297		$	1,144,194

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
	For the Quarter Ended
(Dollars in thousands, except per share data)	3/31/2025			12/31/2024			3/31/2024
Interest income:	(Unaudited)			(Unaudited)			(Unaudited)
Loans, including fees	$	19,751		$	20,747		$	18,228
Interest-bearing deposits in banks and other		934			1,007			959
Total interest income		20,685			21,754			19,187
Interest expense:
Deposits		9,431			10,600			10,215
Other		255			501			230
Total interest expense		9,686			11,101			10,445
Net interest income		10,999			10,653			8,742
Provision for credit losses		4,400			4,546			4,058
Net interest income after provision for credit losses		6,599			6,107			4,684
Noninterest income:
Loan servicing income, net		736			582			795
Gain on sale of government guaranteed loans, net		7,327			8,425			8,089
Service charges and fees		449			451			444
Government guaranteed loans fair value gain (loss), net		(755	)		(80	)		3,305
Government guaranteed loan packaging fees		716			773			1,407
Gain on sale of premises and equipment		—			11,649			—
Other noninterest income		278			476			228
Total noninterest income		8,751			22,276			14,268
Noninterest Expense:
Salaries and benefits		7,998			7,351			8,005
Bonus, commissions, and incentives		71			1,074			1,571
Occupancy and equipment		1,634			1,217			1,110
Data processing		2,045			1,749			1,560
Marketing and business development		487			390			588
Professional services		732			803			1,349
Loan origination and collection		1,035			758			1,719
Employee recruiting and development		617			445			597
Regulatory assessments		339			379			282
Other noninterest expense		855			1,169			992
Total noninterest expense		15,813			15,335			17,773
Income (loss) before taxes from continuing operations		(463	)		13,048			1,179
Income tax expense (benefit) from continuing operations		(128	)		3,272			296
Net income (loss) from continuing operations		(335	)		9,776			883
Loss from discontinued operations before income taxes		—			—			(78	)
Income tax benefit from discontinued operations		—			—			(19	)
Net loss from discontinued operations		—			—			(59	)

Net income (loss)		(335	)		9,776			824
Preferred dividends		385			385			385
Net income available to (loss attributable to) common shareholders	$	(720	)	$	9,391		$	439
Basic earnings (loss) per common share:	(Unaudited)			(Unaudited)			(Unaudited)
Continuing operations	$	(0.17	)	$	2.27		$	0.12
Discontinued operations		—			—			(0.01	)
Basic earnings (loss) per common share	$	(0.17	)	$	2.27		$	0.11

Diluted earnings (loss) per common share:
Continuing operations	$	(0.17	)	$	2.11		$	0.12
Discontinued operations		—			—			(0.01	)
Diluted earnings (loss) per common share	$	(0.17	)	$	2.11		$	0.11

Loan Composition

(Dollars in thousands)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Real estate:
Residential	$	339,886		$	330,870		$	321,740		$	304,234		$	285,214
Commercial		296,351			305,721			292,026			288,185			273,227
Construction and land		46,740			32,914			33,784			35,759			36,764
Commercial and industrial		234,384			226,522			200,212			192,140			182,264
Commercial and industrial – PPP		457			941			1,656			2,324			2,965
Consumer and other		93,889			93,826			92,546			85,789			63,854
Loans held for investment, at amortized cost, gross		1,011,707			990,794			941,964			908,431			844,288
Deferred loan costs, net		20,521			19,499			18,060			17,299			16,233
Discount on government guaranteed loans		(8,727	)		(8,306	)		(7,880	)		(7,731	)		(7,674	)
Premium on loans purchased, net		3,415			3,739			3,860			4,173			4,252
Loans held for investment, at amortized cost, net		1,026,916			1,005,726			956,004			922,172			857,099
Government guaranteed loans held for investment, at fair value		57,901			60,833			86,441			86,142			77,769
Total loans held for investment, net	$	1,084,817		$	1,066,559		$	1,042,445		$	1,008,314		$	934,868

Nonperforming Assets (Unaudited)

(Dollars in thousands)	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Nonperforming loans (government guaranteed balances), at amortized cost, gross	$	9,728		$	4,037		$	4,497		$	4,258		$	2,309
Nonperforming loans (unguaranteed balances), at amortized cost, gross		15,078			13,570			10,992			8,054			7,568
Total nonperforming loans, at amortized cost, gross		24,806			17,607			15,489			12,312			9,877
Nonperforming loans (government guaranteed balances), at fair value		507			—			24			341			94
Nonperforming loans (unguaranteed balances), at fair value		1,419			1,490			1,535			1,284			729
Total nonperforming loans, at fair value		1,926			1,490			1,559			1,625			823
OREO		132			132			—			1,633			404
Repossessed assets		36			36			94			—			—
Total nonperforming assets, gross	$	26,900		$	19,265		$	17,142		$	15,570		$	11,104
Nonperforming loans as a percentage of total loans held for investment⁽¹⁾		2.42	%		1.75	%		1.62	%		1.34	%		1.15	%
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment⁽¹⁾		1.47	%		1.35	%		1.15	%		0.87	%		0.88	%
Nonperforming assets as a percentage of total assets		2.08	%		1.50	%		1.38	%		1.28	%		0.97	%
Nonperforming assets (excluding government guaranteed balances) to total assets		1.22	%		1.06	%		0.88	%		0.82	%		0.70	%
ACL to nonperforming loans⁽¹⁾		66.57	%		88.10	%		91.59	%		112.44	%		140.79	%
ACL to nonperforming loans (excluding government guaranteed balances)⁽¹⁾		109.52	%		114.31	%		129.06	%		171.88	%		183.75	%
⁽¹⁾ Excludes loans measured at fair value

Contacts:
Thomas G. Zernick	Scott J. McKim
Chief Executive Officer	Chief Financial Officer
727.399.5680	727.521.7085

The MIL Network –

April 25, 2025

Category: Taxation

Legal basis, background and next steps