MIL-OSI: Check Point Software Technologies and Illumio Accelerate Zero Trust Adoption with Proactive Threat Prevention and Unified Intelligence

Source: GlobeNewswire (MIL-OSI)

REDWOOD CITY, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Check Point Software Technologies Ltd. (NASDAQ: CHKP), a global leader in cyber security solutions, and Illumio, the breach containment company, today announced a strategic partnership to help organizations strengthen security and advance their Zero Trust posture. The integration between the Check Point Infinity Platform and the Illumio Platform delivers rapid identification and mitigation of lateral movement risks across hybrid and multi-cloud environments using advanced microsegmentation enforcement. This collaboration empowers customers to combine Check Point Quantum Force Firewalls, Infinity Threat Cloud AI, and AI Powered Security Management with Illumio Segmentation and Illumio Insights to neutralize threats by halting lateral movements and strengthening overall cyber security.

“Stopping lateral movement is critical to breach prevention,” says Itai Greenberg, Chief Revenue Officer at Check Point Software. “Our partnership with Illumio delivers unmatched visibility and adaptive policy enforcement, empowering organizations to contain threats fast. It also demonstrates the strength of our hybrid mesh architecture, which we envision as an open garden, and our commitment to driving Zero Trust strategies with industry leaders.”

Check Point Quantum Force firewalls serve as critical enforcement points, efficiently blocking malicious traffic. When threats are detected, Check Point’s AI Security Management software uses a dynamic policy layer to notify Check Point Firewalls how to block the latest threat. The integration with Illumio provides additional AI-driven insights to identify risks and attack routes, enabling quick containment. This combination stops unauthorized lateral movement, protects essential assets, and ensures consistent Zero Trust security across hybrid environments.

Key benefits of the integration include:

Collaborative approach to Zero Trust: Protect critical assets with effective microsegmentation across hybrid environments without deployment complexity, making Zero Trust adoption faster and simpler.
Proactive threat prevention to prevent lateral movement: Reduce breach risk and the associated costs by catching attacks earlier and preventing them from spreading laterally across networks, clouds, and resources to reach critical assets
Advanced Threat Intelligence: Utilize combined threat intelligence data from ThreatCloud AI and Illumio Insights to mitigate risk and minimize security incidents

“This powerful collaboration between Illumio and Check Point marks a significant step forward in cybersecurity threat intelligence and breach containment,” says Andrew Rubin, CEO and Founder of Illumio. “The integration of Illumio and Check Point represents a shift towards smarter, more adaptive cybersecurity by enhancing visibility, enabling real-time threat detection and response, and providing adaptive security measures that align with Zero Trust principles. Our proactive approach helps security teams connect the dots and uncover hidden threats more efficiently to avoid cyber disasters.”

Illumio Insights and Illumio Segmentation are integral components of the Illumio Platform, the first cybersecurity platform focused on breach containment. The world’s first CDR built on an AI security graph, Illumio Insights helps organizations quickly identify and detect threats. Illumio Segmentation contains breaches, protects critical assets, and enables instant response. Together, these solutions help identify and mitigate risks, contain attacks, and enhance overall cyber resilience.

Check Point’s Quantum Force is a series of AI-powered, cloud-delivered security gateways that provide unified security and policy management across on-premises, cloud, and Firewall-as-a-Service environments, simplifying operations and enhancing security efficacy. The Quantum product line is part of Check Point’s Infinity Platform which is uniquely AI-powered, and cloud-delivered, to protect your enterprise against cyber-attacks, from the data center, cloud to the branch office through unified management.

Check Point customers can discover further information and availability details by visiting this link or by reading the blog.

For Illumio customers, visit here.

To witness the integration of Check Point Quantum Force Firewall with Illumio Insights, visit the Illumio booth in the North Hall (#5670) at the RSA Conference in San Francisco, happening from April 28 to May 1^st. While at RSA, stop by the Check Point North Hall booth #6072 or attend one of the following RSAC activities. For additional details about Illumio at RSAC, explore their other sponsored activities.

About Check Point Software Technologies Ltd.
Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Platform Services for collaborative security operations and services.

About Illumio
Illumio is the leader in ransomware and breach containment, redefining how organizations contain cyberattacks and enable operational resilience. Powered by the Illumio AI Security Graph, our breach containment platform identifies and contains threats across hybrid multi-cloud environments – stopping the spread of attacks before they become disasters.

Recognized as a Leader in the Forrester Wave™ for Microsegmentation, Illumio enables Zero Trust, strengthening cyber resilience for the infrastructure, systems, and organizations that keep the world running.

Illumio Contact : comms-team@illumio.com
Check Point contact : press@checkpoint.com

The MIL Network –

April 25, 2025

MIL-OSI: West Bancorporation, Inc. Announces First Quarter 2025 Financial Results and Declares Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

WEST DES MOINES, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent company of West Bank, today reported first quarter 2025 net income of $7.8 million, or $0.46 per diluted common share, compared to fourth quarter 2024 net income of $7.1 million, or $0.42 per diluted common share, and first quarter 2024 net income of $5.8 million, or $0.35 per diluted common share. On April 23, 2025, the Company’s Board of Directors declared a regular quarterly dividend of $0.25 per common share. The dividend is payable on May 21, 2025, to stockholders of record on May 7, 2025.

David Nelson, President and Chief Executive Officer of the Company, commented, “In the first quarter of 2025, we have continued to see improvements in net interest margin and efficiency ratio compared to 2024, resulting in a significant improvement in net income compared to the first quarter of 2024. We are pleased with our progress in our balance sheet repricing efforts. Loan growth was modest in the first quarter, as expected with the current economic uncertainty.”

David Nelson added, “One thing that remains the same is our best-in-class credit quality metrics. We had no loans past due greater than 90 days at March 31, 2025, and only one loan past due greater than 30 days with an insignificant balance of $181 thousand. We continue to identify high-quality opportunities for growing our core customer base in all of our markets.”

First Quarter 2025 Financial Highlights

	Quarter Ended March 31, 2025	Quarter Ended December 31, 2024	Quarter Ended March 31, 2024
Net income (in thousands)	$7,842	$7,097	$5,809
Return on average equity	13.84%	12.24%	10.63%
Return on average assets	0.81%	0.68%	0.61%
Efficiency ratio (a non-GAAP measure)	56.37%	60.79%	62.04%
Nonperforming assets to total assets	0.00%	0.00%	0.01%

First Quarter 2025 Compared to Fourth Quarter 2024 Overview

Loans increased $11.6 million in the first quarter of 2025, primarily due to an increase in commercial loans and commercial real estate loans, partially offset by a decline in construction loans.
No credit loss expense on loans was recorded in the first quarter of 2025, compared to credit loss expense on loans of $1.0 million recorded in the fourth quarter of 2024. The credit loss expense on loans in the fourth quarter of 2024 was due to an adjustment to qualitative factors in the commercial real estate loan segment.
The allowance for credit losses to total loans was 1.01 percent at both March 31, 2025 and December 31, 2024. Nonaccrual loans at March 31, 2025 consisted of one loan with a balance of $181 thousand, compared to one loan with a balance of $133 thousand at December 31, 2024.
Deposits decreased $33.1 million, or 1.0 percent, in the first quarter of 2025. Brokered deposits totaled $335.5 million at March 31, 2025, compared to $266.4 million at December 31, 2024, an increase of $69.1 million. Excluding brokered deposits, deposits decreased $102.2 million, or 3.3 percent, during the first quarter of 2025. The decline in deposits was due to normal cash flow fluctuations of our core depositors. As of March 31, 2025, estimated uninsured deposits, which exclude deposits in the IntraFi^® reciprocal network, brokered deposits and public funds protected by state programs, accounted for approximately 28.0 percent of total deposits.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.98 percent for the fourth quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $19.4 million for the fourth quarter of 2024. The increase in net interest margin and net interest income was primarily due to a decrease in deposit rates, driven by the Federal Reserve’s reductions of the federal funds target rate in the fourth quarter of 2024. The cost of deposits decreased 38 basis points in the first quarter of 2025, compared to the fourth quarter of 2024.
The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 60.79 percent for the fourth quarter of 2024. The improvement in the efficiency ratio was primarily due to the increase in net interest income and decrease in noninterest expense, partially offset by a decrease in trust services income.
The tangible common equity ratio was 5.97 percent as of March 31, 2025, compared to 5.68 percent as of December 31, 2024. The increase in the tangible common equity ratio was due to retained net income and the decrease in accumulated other comprehensive loss, which was the result of an increase in the market value of our available for sale securities portfolio.

Income tax expense increased $2.8 million in the first quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to recording an income tax benefit of $1.8 million in the fourth quarter of 2024 for an energy related investment tax credit associated with the construction of the Company’s new headquarters building.

First Quarter 2025 Compared to First Quarter 2024 Overview

Loans increased $36.3 million at March 31, 2025, or 1.2 percent, compared to March 31, 2024. The increase is primarily due to the increase in commercial real estate loans, partially offset by decreases in commercial loans and construction loans.
Deposits increased $259.5 million, or 8.5 percent, at March 31, 2025, compared to March 31, 2024. Included in deposits were brokered deposits totaling $335.5 million at March 31, 2025, compared to $396.4 million at March 31, 2024. Excluding brokered deposits, deposits increased $320.4 million, or 12.0 percent, as of March 31, 2025, compared to March 31, 2024. Deposit growth included a mix of public funds and commercial and consumer deposits and was used to reduce wholesale funding, build liquidity and fund loan growth.
Borrowed funds decreased to $391.4 million at March 31, 2025, compared to $639.7 million at March 31, 2024. The decrease was primarily attributable to a decrease of $198.5 million in federal funds purchased and other short-term borrowings and a decrease of $45.0 million in Federal Home Loan Bank advances. The decrease in borrowed funds balances was due to the increase in deposits since March 31, 2024. The reduction in the Federal Home Loan Bank advances was due to the maturity of two advances with a total balance of $45.0 million. One of these advances, with a balance of $25.0 million, was hedged with a long-term interest rate swap, which matured and was not renewed.
The efficiency ratio (a non-GAAP measure) was 56.37 percent for the first quarter of 2025, compared to 62.04 percent for the first quarter of 2024. The improvement in the efficiency ratio in the first quarter of 2025 compared to the first quarter of 2024 was primarily due to the increase in net interest income, partially offset by an increase in noninterest expense. Occupancy and equipment expense increased primarily due to the occupancy costs associated with the Company’s newly constructed headquarters.
Net interest margin, on a fully tax-equivalent basis (a non-GAAP measure), was 2.28 percent for the first quarter of 2025, compared to 1.88 percent for the first quarter of 2024. Net interest income for the first quarter of 2025 was $20.9 million, compared to $16.8 million for the first quarter of 2024. The increase in net interest margin and net interest income was primarily due to the decrease in deposit rates. The cost of deposits decreased by 42 basis points in the first quarter of 2025 compared to the first quarter of 2024. Also contributing to the improvement was an increase in average deposit balances of $335.2 million, in comparing the same time periods, which resulted in the reduction of higher-cost borrowed funds and an increase in interest-bearing deposits with other financial institutions.

The Company filed its report on Form 10-Q with the Securities and Exchange Commission today. Please refer to that document for a more in-depth discussion of the Company’s financial results. The Form 10-Q is available on the Investor Relations section of West Bank’s website at www.westbankstrong.com.

The Company will discuss its results in a conference call scheduled for 2:00 p.m. Central Time on Thursday, April 24, 2025. The telephone number for the conference call is 800-715-9871. The conference ID for the conference call is 7846129. A recording of the call will be available until May 8, 2025, by dialing 800-770-2030. The conference ID for the replay call is 7846129, followed by the # key.

About West Bancorporation, Inc. (Nasdaq: WTBA)

West Bancorporation, Inc. is headquartered in West Des Moines, Iowa. Serving customers since 1893, West Bank, a wholly-owned subsidiary of West Bancorporation, Inc., is a community bank that focuses on lending, deposit services, and trust services for small- to medium-sized businesses and consumers. West Bank has six offices in the Des Moines, Iowa metropolitan area, one office in Coralville, Iowa, and four offices in Minnesota in the cities of Rochester, Owatonna, Mankato and St. Cloud.

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to the Company’s business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meanings 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. Forward-looking statements may appear throughout this report. These forward-looking statements are generally identified by the words “believes,” “expects,” “intends,” “anticipates,” “projects,” “future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,” “opportunity,” “will be,” “will likely result,” “will continue” or similar references, or references to estimates, predictions or future events. Such forward-looking statements are based upon certain underlying assumptions, risks and uncertainties. Because of the possibility that the underlying assumptions are incorrect or do not materialize as expected in the future, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: interest rate risk, including the effects of changes in interest rates; fluctuations in the values of the securities held in our investment portfolio, including as a result of changes in interest rates; competitive pressures, including from non-bank competitors such as credit unions, “fintech” companies and digital asset service providers; pricing pressures on loans and deposits; our ability to successfully manage liquidity risk; changes in credit and other risks posed by the Company’s loan portfolio, including declines in commercial or residential real estate values or changes in the allowance for credit losses dictated by new market conditions, accounting standards or regulatory requirements; the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and the value of products produced by our commercial borrowers; changes in local, national and international economic conditions, including the level and impact of inflation, and future monetary policies of the Federal Reserve in response thereto, and possible recession; 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 several bank failures; changes in legal and regulatory requirements, limitations and costs; changes in customers’ acceptance of the Company’s products and services; the occurrence of fraudulent activity, breaches or failures of our or our third-party partners’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools; unexpected outcomes of existing or new litigation involving the Company; the monetary, trade and other regulatory policies of the U.S. government; acts of war or terrorism, including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine, widespread disease or pandemics, or other adverse external events; risks related to climate change and the negative impact it may have on our customers and their businesses; changes to U.S. tax laws, regulations and guidance; potential changes in federal policy and at regulatory agencies as a result of the 2024 presidential election; new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; talent and labor shortages and employee turnover; and any other risks described in the “Risk Factors” sections of reports filed by the Company with the Securities and Exchange Commission. The Company undertakes no obligation to revise or update such forward-looking statements to reflect current or future events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
CONDENSED BALANCE SHEETS	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and due from banks	$	39,253		$	28,750		$	34,157		$	27,994		$	27,071
Interest-bearing deposits		171,357			214,728			123,646			121,825			120,946
Securities available for sale, at fair value		546,619			544,565			597,745			588,452			605,735
Federal Home Loan Bank stock, at cost		15,216			15,129			17,195			21,065			26,181
Loans		3,016,471			3,004,860			3,021,221			2,998,774			2,980,133
Allowance for credit losses		(30,526	)		(30,432	)		(29,419	)		(28,422	)		(28,373	)
Loans, net		2,985,945			2,974,428			2,991,802			2,970,352			2,951,760
Premises and equipment, net		110,270			109,985			106,771			101,965			95,880
Bank-owned life insurance		45,272			44,990			44,703			44,416			44,138
Other assets		72,737			82,416			72,547			89,046			90,981
Total assets	$	3,986,669		$	4,014,991		$	3,988,566		$	3,965,115		$	3,962,692

Liabilities and Stockholders’ Equity
Deposits	$	3,324,518		$	3,357,596		$	3,278,553		$	3,180,922		$	3,065,030
Federal funds purchased and other short-term borrowings		—			—			—			85,500			198,500
Other borrowings		391,445			392,629			438,814			439,998			441,183
Other liabilities		32,833			36,891			35,846			34,812			34,223
Stockholders’ equity		237,873			227,875			235,353			223,883			223,756
Total liabilities and stockholders’ equity	$	3,986,669		$	4,014,991		$	3,988,566		$	3,965,115		$	3,962,692

	For the Quarter Ended
AVERAGE BALANCES	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets	$	3,944,789		$	4,135,049		$	3,973,824		$	3,964,109		$	3,812,199
Loans		3,016,119			3,007,558			2,991,272			2,994,492			2,949,672
Deposits		3,284,394			3,434,234			3,258,669			3,123,282			2,956,635
Stockholders’ equity		229,874			230,720			227,513			219,771			219,835

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	As of
LOANS	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Commercial	$	531,267		$	514,232		$	512,884		$	526,589		$	544,293
Real estate:
Construction, land and land development		451,230			508,147			520,516			496,864			465,247
1-4 family residential first mortgages		86,292			87,858			89,749			92,230			108,065
Home equity		21,961			19,294			17,140			15,264			14,020
Commercial		1,909,330			1,861,195			1,870,132			1,856,301			1,839,580
Consumer and other		19,323			17,287			14,261			15,234			12,844
		3,019,403			3,008,013			3,024,682			3,002,482			2,984,049
Net unamortized fees and costs		(2,932	)		(3,153	)		(3,461	)		(3,708	)		(3,916	)
Total loans	$	3,016,471		$	3,004,860		$	3,021,221		$	2,998,774		$	2,980,133
Less: allowance for credit losses		(30,526	)		(30,432	)		(29,419	)		(28,422	)		(28,373	)
Net loans	$	2,985,945		$	2,974,428		$	2,991,802		$	2,970,352		$	2,951,760

CREDIT QUALITY
Pass	$	3,011,231		$	2,999,531		$	3,016,493		$	2,994,310		$	2,983,618
Watch		7,991			8,349			7,956			7,651			142
Substandard		181			133			233			521			289
Doubtful		—			—			—			—			—
Total loans	$	3,019,403		$	3,008,013		$	3,024,682		$	3,002,482		$	2,984,049

DEPOSITS
Noninterest-bearing demand	$	519,771		$	541,053		$	525,332		$	530,441		$	521,377
Interest-bearing demand		517,409			543,855			438,402			443,658			449,946
Savings and money market – non-brokered		1,490,189			1,517,510			1,481,840			1,483,264			1,315,698
Money market – brokered		143,423			126,381			123,780			97,259			119,840
Total nonmaturity deposits		2,670,792			2,728,799			2,569,354			2,554,622			2,406,861
Time – non-brokered		461,655			488,760			407,109			353,269			381,646
Time – brokered		192,071			140,037			302,090			273,031			276,523
Total time deposits		653,726			628,797			709,199			626,300			658,169
Total deposits	$	3,324,518		$	3,357,596		$	3,278,553		$	3,180,922		$	3,065,030

BORROWINGS
Federal funds purchased and other short-term borrowings	$	—		$	—		$	—		$	85,500		$	198,500
Subordinated notes, net		79,959			79,893			79,828			79,762			79,697
Federal Home Loan Bank advances		270,000			270,000			315,000			315,000			315,000
Long-term debt		41,486			42,736			43,986			45,236			46,486
Total borrowings	$	391,445		$	392,629		$	438,814		$	525,498		$	639,683

STOCKHOLDERS’ EQUITY
Preferred stock	$	—		$	—		$	—		$	—		$	—
Common stock		3,000			3,000			3,000			3,000			3,000
Additional paid-in capital		35,072			35,619			34,960			34,322			33,685
Retained earnings		282,247			278,613			275,724			273,981			272,997
Accumulated other comprehensive loss		(82,446	)		(89,357	)		(78,331	)		(87,420	)		(85,926	)
Total stockholders’ equity	$	237,873		$	227,875		$	235,353		$	223,883		$	223,756

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)
(in thousands)
	For the Quarter Ended
CONSOLIDATED STATEMENTS OF INCOME	March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024
Interest income:
Loans, including fees	$	40,988	$	41,822		$	42,504	$	41,700	$	40,196
Securities:
Taxable		2,788		2,959			3,261		3,394		3,416
Tax-exempt		743		795			806		808		810
Interest-bearing deposits		1,617		3,740			2,041		1,666		148
Total interest income		46,136		49,316			48,612		47,568		44,570
Interest expense:
Deposits		21,423		25,706			26,076		23,943		21,559
Federal funds purchased and other short-term borrowings		—		—			115		1,950		2,183
Subordinated notes		1,105		1,106			1,112		1,105		1,108
Federal Home Loan Bank advances		2,235		2,522			2,748		2,718		2,325
Long-term debt		518		560			601		622		645
Total interest expense		25,281		29,894			30,652		30,338		27,820
Net interest income		20,855		19,422			17,960		17,230		16,750
Credit loss expense		—		1,000			—		—		—
Net interest income after credit loss expense		20,855		18,422			17,960		17,230		16,750
Noninterest income:
Service charges on deposit accounts		471		462			459		462		460
Debit card usage fees		446		471			500		490		458
Trust services		777		1,051			828		794		776
Increase in cash value of bank-owned life insurance		282		287			287		278		274
Realized securities losses, net		—		(1,172	)		—		—		—
Other income		267		331			285		322		331
Total noninterest income		2,243		1,430			2,359		2,346		2,299
Noninterest expense:
Salaries and employee benefits		7,004		7,107			6,823		7,169		6,489
Occupancy and equipment		1,963		2,095			1,926		1,852		1,447
Data processing		617		752			771		754		714
Technology and software		786		743			722		731		700
FDIC insurance		587		699			711		631		519
Professional fees		308		301			239		244		257
Director fees		206		170			223		236		199
Other expenses		1,592		1,532			1,477		1,577		1,543
Total noninterest expense		13,063		13,399			12,892		13,194		11,868
Income before income taxes		10,035		6,453			7,427		6,382		7,181
Income taxes		2,193		(644	)		1,475		1,190		1,372
Net income	$	7,842	$	7,097		$	5,952	$	5,192	$	5,809

Basic earnings per common share	$	0.47	$	0.42		$	0.35	$	0.31	$	0.35
Diluted earnings per common share	$	0.46	$	0.42		$	0.35	$	0.31	$	0.35

WEST BANCORPORATION, INC. AND SUBSIDIARY
Financial Information (unaudited)

	As of and for the Quarter Ended
COMMON SHARE DATA	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Earnings per common share (basic)	$	0.47		$	0.42		$	0.35		$	0.31		$	0.35
Earnings per common share (diluted)		0.46			0.42			0.35			0.31			0.35
Dividends per common share		0.25			0.25			0.25			0.25			0.25
Book value per common share⁽¹⁾		14.06			13.54			13.98			13.30			13.31
Closing stock price		19.94			21.65			19.01			17.90			17.83
Market price/book value⁽²⁾		141.82	%		159.90	%		135.98	%		134.59	%		133.96	%
Price earnings ratio⁽³⁾		10.46			12.96			13.65			14.36			12.77
Annualized dividend yield⁽⁴⁾		5.02	%		4.62	%		5.26	%		5.59	%		5.61	%

REGULATORY CAPITAL RATIOS
Consolidated:
Total risk-based capital ratio		12.18	%		12.11	%		11.95	%		11.85	%		11.78	%
Tier 1 risk-based capital ratio		9.59			9.51			9.39			9.30			9.23
Tier 1 leverage capital ratio		8.36			7.93			8.15			8.08			8.36
Common equity tier 1 ratio		9.02			8.95			8.83			8.74			8.67
West Bank:
Total risk-based capital ratio		12.90	%		12.86	%		12.73	%		12.66	%		12.63	%
Tier 1 risk-based capital ratio		11.99			11.96			11.86			11.79			11.76
Tier 1 leverage capital ratio		10.46			9.97			10.29			10.25			10.65
Common equity tier 1 ratio		11.99			11.96			11.86			11.79			11.76

KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets⁽⁵⁾		0.81	%		0.68	%		0.60	%		0.53	%		0.61	%
Return on average equity⁽⁶⁾		13.84			12.24			10.41			9.50			10.63
Net interest margin^(7)(13)		2.28			1.98			1.91			1.86			1.88
Yield on interest-earning assets^(8)(13)		5.04			5.02			5.16			5.13			4.99
Cost of interest-bearing liabilities		3.25			3.57			3.84			3.83			3.70
Efficiency ratio^(9)(13)		56.37			60.79			63.28			67.14			62.04
Nonperforming assets to total assets⁽¹⁰⁾		0.00			0.00			0.01			0.01			0.01
ACL ratio⁽¹¹⁾		1.01			1.01			0.97			0.95			0.95
Loans/total assets		75.66			74.84			75.75			75.63			75.20
Loans/total deposits		90.73			89.49			92.15			94.27			97.23
Tangible common equity ratio⁽¹²⁾		5.97			5.68			5.90			5.65			5.65

^{(1) Includes accumulated other comprehensive loss.}
^{(2) Closing stock price divided by book value per common share.}
^{(3) Closing stock price divided by annualized earnings per common share (basic).}
^{(4) Annualized dividend divided by period end closing stock price.}
^{(5) Annualized net income divided by average assets.}
^{(6) Annualized net income divided by average stockholders’ equity.}
^{(7) Annualized tax-equivalent net interest income divided by average interest-earning assets.}
^{(8) Annualized tax-equivalent interest income on interest-earning assets divided by average interest-earning assets.}
^{(9) Noninterest expense (excluding other real estate owned expense and write-down of premises) divided by noninterest income (excluding net securities gains/losses and gains/losses on disposition of premises and equipment) plus tax-equivalent net interest income.}
^{(10) Total nonperforming assets divided by total assets.}
^{(11) Allowance for credit losses on loans divided by total loans.}
^{(12) Common equity less intangible assets (none held) divided by tangible assets.}
^{(13) A non-GAAP measure.}

NON-GAAP FINANCIAL MEASURES

This report contains references to financial measures that are not defined in GAAP. Such non-GAAP financial measures include the Company’s presentation of net interest income and net interest margin on a fully taxable equivalent (FTE) basis and the presentation of the efficiency ratio on an adjusted and FTE basis, excluding certain income and expenses. Management believes these non-GAAP financial measures provide useful information to both management and investors to analyze and evaluate the Company’s financial performance. These measures are considered standard measures of comparison within the banking industry. Additionally, management believes providing measures on a FTE basis enhances the comparability of income arising from taxable and nontaxable sources. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. These non-GAAP disclosures should not be considered an alternative to the Company’s GAAP results. The following table reconciles the non-GAAP financial measures of net interest income and net interest margin on a fully taxable equivalent basis and efficiency ratio on an adjusted and FTE basis.

(in thousands)	For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Reconciliation of net interest income and net interest margin on a FTE basis to GAAP:
Net interest income (GAAP)	$	20,855		$	19,422		$	17,960		$	17,230		$	16,750
Tax-equivalent adjustment ⁽¹⁾		66			16			29			55			82
Net interest income on a FTE basis (non-GAAP)		20,921			19,438			17,989			17,285			16,832
Average interest-earning assets		3,717,441			3,910,978			3,749,688			3,731,674			3,595,954
Net interest margin on a FTE basis (non-GAAP)		2.28	%		1.98	%		1.91	%		1.86	%		1.88	%

Reconciliation of efficiency ratio on an adjusted and FTE basis to GAAP:
Net interest income on a FTE basis (non-GAAP)	$	20,921		$	19,438		$	17,989		$	17,285		$	16,832
Noninterest income		2,243			1,430			2,359			2,346			2,299
Adjustment for realized securities losses, net		—			1,172			—			—			—
Adjustment for losses on disposal of premises and equipment, net		8			—			26			21			—
Adjusted income		23,172			22,040			20,374			19,652			19,131
Noninterest expense		13,063			13,399			12,892			13,194			11,868
Efficiency ratio on an adjusted and FTE basis (non-GAAP) ⁽²⁾		56.37	%		60.79	%		63.28	%		67.14	%		62.04	%

^{(1) Computed on a tax-equivalent basis using a federal income tax rate of 21 percent, adjusted to reflect the effect of the nondeductible interest expense associated with owning tax-exempt securities and loans. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the financial results, as it enhances the comparability of income arising from taxable and nontaxable sources.}
^{(2) The efficiency ratio expresses noninterest expense as a percent of fully taxable equivalent net interest income and noninterest income, excluding specific noninterest income and expenses. Management believes the presentation of this non-GAAP measure provides supplemental useful information for proper understanding of the Company’s financial performance. It is a standard measure of comparison within the banking industry. A lower ratio is more desirable.}

For more information contact:
Jane Funk, Executive Vice President, Treasurer and Chief Financial Officer (515) 222-5766

The MIL Network –

April 25, 2025

MIL-OSI: Ascent Solar Technologies Hosts Customer and Partner Discussions During Space Symposium

Source: GlobeNewswire (MIL-OSI)

THORNTON, Colo., April 24, 2025 (GLOBE NEWSWIRE) — Ascent Solar Technologies (“Ascent” or the “Company”) (Nasdaq: ASTI), the leading U.S. innovator in the design and manufacturing of featherweight, flexible thin-film photovoltaic (PV) solutions, today reported on its in-person tours and meetings hosted during the 40th Annual Space Symposium in Colorado Springs earlier in April 2025.

Director of Space Solutions, Julian Miller, hosted six organizations onsite at the Company’s Thornton facility, and met with several others while attending the conference. Visitors reviewed the scale of Ascent’s operations, met with its technical team to better understand its customization and features, and further discussed collaborations for future space programs with respect to both product development and direct sales. The Company is now engaging in RFP/RFQ discussions, pursuing joint manufacturing ventures, and performing feasibility testing with prospective partners and customers.

“The market feedback received at the Space Symposium speaks volumes, not just about Ascent technology, but also our manufacturing processes in the U.S. that enable our supply chain to remain strong,” said Julian Miller, Director of Space Solutions at Ascent Solar Technologies. “We will continue to engage the biggest and brightest brands in space tech and demonstrating that our product is second to none in the low earth environment.”

Ascent’s 5MW production facility currently has the capacity to ship orders in excess of 100kW this summer. Space industry discussions include the exploration of new advanced capabilities enabled by Ascent’s CIGS PV products’ combination of resiliency with mass, volume, cost and schedule efficiencies. These opportunities span across commercial, civil and defense market sectors and include emerging markets such as in-space manufacturing, distributed space power grids and Lunar surface operations, among others.

All parties interested in participating in a facility tour are encouraged to reach out via Ascent’s contact page.

About Ascent Solar Technologies, Inc.

Backed by 40 years of R&D, 15 years of manufacturing experience, numerous awards, and a comprehensive IP and patent portfolio, Ascent Solar Technologies, Inc. is a leading provider of innovative, high-performance, flexible thin-film solar panels for use in environments where mass, performance, reliability, and resilience matter. Ascent’s photovoltaic (PV) modules have been deployed on space missions, multiple airborne vehicles, agrivoltaic installations, in industrial/commercial construction as well as an extensive range of consumer goods, revolutionizing the use cases and environments for solar power. Ascent Solar’s research and development center and 5-MW nameplate production facility is in Thornton, Colorado. To learn more, visit https://www.ascentsolar.com.

Forward-Looking Statements

Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements” including statements about the financing transaction, our business strategy, and the potential uses of the proceeds from the transaction. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the company’s actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. We have based these forward-looking statements on our current assumptions, expectations, and projections about future events. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “will,” “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” to be uncertain and forward-looking. No information in this press release should be construed as any indication whatsoever of our future revenues, stock price, or results of operations. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the company’s filings with the Securities and Exchange Commission including those discussed under the heading “Risk Factors” in our most recently filed reports on Forms 10-K and 10-Q.

Media Contact

Spencer Herrmann
FischTank PR
ascent@fischtankpr.com

The MIL Network –

April 25, 2025

MIL-OSI: Kearny Financial Corp. Announces Third Quarter Fiscal 2025 Results and Declaration of Cash Dividend

Source: GlobeNewswire (MIL-OSI)

FAIRFIELD, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Kearny Financial Corp. (NASDAQ GS: KRNY) (the “Company”), the holding company of Kearny Bank (the “Bank”), reported net income for the quarter ended March 31, 2025 of $6.6 million, or $0.11 per diluted share, compared to $6.6 million, or $0.10 per diluted share, for the quarter ended December 31, 2024.

The Company also announced that its Board of Directors has declared a quarterly cash dividend of $0.11 per share, payable on May 21, 2025, to stockholders of record as of May 7, 2025.

Craig L. Montanaro, President and Chief Executive Officer, commented, “Quarter over quarter net interest income grew by $1.4 million, resulting in eight basis points of net interest margin expansion. Contributing to this expansion was growth in net loans and deposits, coupled with a 24 basis point decrease in our cost of funds. We anticipate continued strong margin expansion into the June quarter, the final of our 2025 fiscal year.”

Mr. Montanaro continued, “Despite recent fluctuations in US Treasury rates and broader market indices, our core business continues to perform exceedingly well and we are confident in our ability to sustain and enhance our performance in spite of the volatile environment.”

Balance Sheet

Total assets were $7.73 billion at March 31, 2025, a increase of $1.8 million from December 31, 2024.
Investment securities totaled $1.13 billion at March 31, 2025, a decrease of $17.3 million, or 1.5%, from December 31, 2024.
Loans receivable totaled $5.85 billion at March 31, 2025, an increase of $54.4 million, or 0.9%, from December 31, 2024, primarily reflecting growth in non-residential mortgage loans.
Deposits were $5.71 billion at March 31, 2025, an increase of $36.3 million, or 0.6%, from December 31, 2024. This increase was primarily driven by increases in interest bearing demand deposits and consumer savings deposits, partially offset by a decrease in non-interest bearing demand deposits. The decrease in non-interest bearing deposits was primarily attributable to a $29.3 million outflow from a single depositor who used the funds to finance the construction of a building. Excluding this single account, non-interest bearing deposits increased $14.9 million, or 2.5%.
Borrowings were $1.21 billion at March 31, 2025, a decrease of $45.0 million, or 3.6%, from December 31, 2024, reflecting reductions in Federal Home Loan Bank (“FHLB”) overnight borrowings.
At March 31, 2025, the Company maintained available secured borrowing capacity with the FHLB and the Federal Reserve Discount Window of $2.42 billion, representing 31.3% of total assets.

Earnings

Net Interest Income and Net Interest Margin

Net interest margin expanded eight basis points from the quarter ended December 31, 2024 to 1.90% for the quarter ended March 31, 2025. The increase for the quarter was driven by the paydown of borrowings resulting from growth in lower cost deposits and broad based decreases in deposit rates, partially offset by reduced yields on interest-earning assets.
For the quarter ended March 31, 2025, net interest income increased $1.4 million to $34.0 million from $32.6 million for the quarter ended December 31, 2024. Included in net interest income for the quarters ended March 31, 2025 and December 31, 2024, respectively, was purchase accounting accretion of $511,000 and $685,000, and loan prepayment penalty income of $226,000 and $288,000.

Non-Interest Income

For the quarter ended March 31, 2025, non-interest income decreased $311,000, or 6.4%, to $4.6 million from $4.9 million for the quarter ended December 31, 2024, primarily driven by decreases in gain on sale of loans and electronic banking fees and charges.
Gain on sale of loans decreased $192,000 to $112,000 for the quarter ended March 31, 2025 from $304,000 for the quarter ended December 31, 2024. The decrease largely reflected a seasonal decrease in the volume of residential mortgage loans sold during the period.
Electronic banking fees and charges decreased $102,000 to $391,000 for the quarter March 31, 2025 from $493,000 for the quarter ended December 31, 2024. The decrease largely reflected the absence of a non-recurring increase recorded in the prior period.

Non-Interest Expense

For the quarter ended March 31, 2025, non-interest expense increased $829,000, or 2.8%, to $30.4 million from $29.6 million for the quarter ended December 31, 2024, primarily driven by increases in salary and benefits, net occupancy, advertising, and other expense.
Salary and benefits expense increased $121,000 to $17.7 million primarily driven by an increase of $546,000 in payroll taxes and employee benefits associated with the start of a new calendar year, partially offset by a $427,000 non-recurring decrease in stock-based compensation.
Net occupancy expense of premises increased $244,000 to $3.1 million primarily driven by seasonally higher snow removal expenses, partially offset by a decrease in repairs and other maintenance expenses.
Advertising and marketing expense increased $298,000 to $609,000. This increase was primarily due to higher advertising expenses across various formats, driven by marketing campaigns supporting our loan and deposit growth initiatives.
Other expense increased $225,000 primarily driven by a $37,000 provision for credit losses related to off balance sheet commitments compared to a reversal for credit losses on off balance sheet commitments of $116,000 recorded in the prior comparative period. The remaining changes in the other components of non-interest expense between comparative periods generally reflected normal operating fluctuations within those line items.

Income Taxes

Income tax expense totaled $1.2 million for the quarter ended March 31, 2025 compared to $1.3 million for the quarter ended December 31, 2024, resulting in an effective tax rate of 15.3% and 16.0%, respectively.

Asset Quality

The balance of non-performing assets remained steady at $37.7 million, or 0.49% of total assets, at March 31, 2025 and December 31, 2024, respectively.
Net charge-offs totaled $368,000, or 0.03% of average loans, on an annualized basis, for the quarter ended March 31, 2025, compared to $573,000, or 0.04% of average loans, on an annualized basis, for the quarter ended December 31, 2024.
For the quarter ended March 31, 2025, the Company recorded a provision for credit losses of $366,000, compared to $107,000 for the quarter ended December 31, 2024. The provision for credit loss expense for the quarter ended March 31, 2025 was primarily driven by the charge-offs described above.
The ACL was $44.5 million, or 0.76% of total loans, at March 31, 2025, a decrease of $2,000 from $44.5 million, or 0.77% of total loans, at December 31, 2024.

Capital

For the quarter ended March 31, 2025, book value per share increased $0.05, or 0.4%, to $11.58 while tangible book value per share increased $0.05, or 0.5%, to $9.80.
At March 31, 2025, total stockholders’ equity included after-tax net unrealized losses on securities available for sale of $80.1 million, partially offset by after-tax unrealized gains on derivatives of $10.7 million. After-tax net unrecognized losses on securities held to maturity of $9.9 million were not reflected in total stockholders’ equity.
At March 31, 2025, the Company’s tangible equity to tangible assets ratio equaled 8.31% and the regulatory capital ratios of both the Company and the Bank were in excess of the levels required by federal banking regulators to be classified as “well-capitalized” under regulatory guidelines.

This earnings release should be read in conjunction with Kearny Financial Corp.’s Q3 2025 Investor Presentation, a copy of which is available through the Investor Relations link located at the bottom of the page of our website at www.kearnybank.com and via a Current Report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov.

Statements contained in this news release that are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time. The Company does not undertake and specifically disclaims any obligation to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.

Category: Earnings

Linked-Quarter Comparative Financial Analysis

Kearny Financial Corp. Consolidated Balance Sheets (Unaudited)

(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Assets
Cash and cash equivalents	$	126,095		$	141,554		$	(15,459	)	-10.9	%
Securities available for sale		1,003,393			1,018,279			(14,886	)	-1.5	%
Securities held to maturity		124,859			127,266			(2,407	)	-1.9	%
Loans held-for-sale		6,187			5,695			492		8.6	%
Loans receivable		5,846,175			5,791,758			54,417		0.9	%
Less: allowance for credit losses on loans		(44,455	)		(44,457	)		(2	)	-0.0	%
Net loans receivable		5,801,720			5,747,301			54,419		0.9	%
Premises and equipment		44,192			45,127			(935	)	-2.1	%
Federal Home Loan Bank stock		62,261			64,443			(2,182	)	-3.4	%
Accrued interest receivable		28,521			27,772			749		2.7	%
Goodwill		113,525			113,525			—		—	%
Core deposit intangible		1,554			1,679			(125	)	-7.4	%
Bank owned life insurance		303,629			301,339			2,290		0.8	%
Deferred income taxes, net		52,913			53,325			(412	)	-0.8	%
Other assets		64,292			84,080			(19,788	)	-23.5	%
Total assets	$	7,733,141		$	7,731,385		$	1,756		0.0	%

Liabilities
Deposits:
Non-interest-bearing	$	587,118		$	601,510		$	(14,392	)	-2.4	%
Interest-bearing		5,120,230			5,069,550			50,680		1.0	%
Total deposits		5,707,348			5,671,060			36,288		0.6	%
Borrowings		1,213,976			1,258,949			(44,973	)	-3.6	%
Advance payments by borrowers for taxes		19,981			17,986			1,995		11.1	%
Other liabilities		43,723			38,537			5,186		13.5	%
Total liabilities		6,985,028			6,986,532			(1,504	)	-0.0	%

Stockholders’ Equity
Common stock		646			646			—		—	%
Paid-in capital		494,131			494,092			39		0.0	%
Retained earnings		341,921			342,155			(234	)	-0.1	%
Unearned ESOP shares		(19,457	)		(19,943	)		486		2.4	%
Accumulated other comprehensive loss		(69,128	)		(72,097	)		2,969		4.1	%
Total stockholders’ equity		748,113			744,853			3,260		0.4	%
Total liabilities and stockholders’ equity	$	7,733,141		$	7,731,385		$	1,756		0.0	%

Consolidated capital ratios
Equity to assets		9.67	%		9.63	%		0.04	%
Tangible equity to tangible assets⁽¹⁾		8.31	%		8.27	%		0.04	%

Share data
Outstanding shares		64,580			64,580			—		—	%
Book value per share	$	11.58		$	11.53		$	0.05		0.4	%
Tangible book value per share⁽²⁾	$	9.80		$	9.75		$	0.05		0.5	%

_________________________

(1)	Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)	Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.


Kearny Financial Corp. Consolidated Statements of Income (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Interest income
Loans	$	64,768		$	65,408		$	(640	)	-1.0	%
Taxable investment securities		12,738			13,803			(1,065	)	-7.7	%
Tax-exempt investment securities		55			59			(4	)	-6.8	%
Other interest-earning assets		1,773			2,215			(442	)	-20.0	%
Total interest income		79,334			81,485			(2,151	)	-2.6	%

Interest expense
Deposits		34,912			36,721			(1,809	)	-4.9	%
Borrowings		10,380			12,152			(1,772	)	-14.6	%
Total interest expense		45,292			48,873			(3,581	)	-7.3	%
Net interest income		34,042			32,612			1,430		4.4	%
Provision for credit losses		366			107			259		242.1	%
Net interest income after provision for credit losses		33,676			32,505			1,171		3.6	%

Non-interest income
Fees and service charges		573			627			(54	)	-8.6	%
Gain on sale of loans		112			304			(192	)	-63.2	%
Income from bank owned life insurance		2,617			2,619			(2	)	-0.1	%
Electronic banking fees and charges		391			493			(102	)	-20.7	%
Other income		869			830			39		4.7	%
Total non-interest income		4,562			4,873			(311	)	-6.4	%

Non-interest expense
Salaries and employee benefits		17,700			17,579			121		0.7	%
Net occupancy expense of premises		3,075			2,831			244		8.6	%
Equipment and systems		3,921			3,892			29		0.7	%
Advertising and marketing		609			311			298		95.8	%
Federal deposit insurance premium		1,450			1,503			(53	)	-3.5	%
Directors’ compensation		326			361			(35	)	-9.7	%
Other expense		3,309			3,084			225		7.3	%
Total non-interest expense		30,390			29,561			829		2.8	%
Income before income taxes		7,848			7,817			31		0.4	%
Income taxes		1,200			1,251			(51	)	-4.1	%
Net income	$	6,648		$	6,566		$	82		1.2	%

Net income per common share (EPS)
Basic	$	0.11		$	0.11		$	—
Diluted	$	0.11		$	0.10		$	0.01

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	—
Cash dividends declared	$	6,933		$	6,933		$	—
Dividend payout ratio		104.3	%		105.6	%		-1.3	%

Weighted average number of common shares outstanding
Basic		62,548			62,443			105
Diluted		62,713			62,576			137

Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

	Three Months Ended
(Dollars in Thousands)	March 31, 2025			December 31, 2024			Variance or Change			Variance or Change Pct.
Assets
Interest-earning assets:
Loans receivable, including loans held for sale	$	5,805,045		$	5,762,053		$	42,992		0.7	%
Taxable investment securities		1,251,612			1,285,800			(34,188	)	-2.7	%
Tax-exempt investment securities		9,135			9,711			(576	)	-5.9	%
Other interest-earning assets		110,736			116,354			(5,618	)	-4.8	%
Total interest-earning assets		7,176,528			7,173,918			2,610		0.0	%
Non-interest-earning assets		457,206			459,982			(2,776	)	-0.6	%
Total assets	$	7,633,734		$	7,633,900		$	(166	)	-0.0	%

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,405,974		$	2,314,378		$	91,596		4.0	%
Savings		751,243			711,801			39,442		5.5	%
Certificates of deposit (retail)		1,215,767			1,216,948			(1,181	)	-0.1	%
Certificates of deposit (brokered)		730,612			730,773			(161	)	-0.0	%
Total interest-bearing deposits		5,103,596			4,973,900			129,696		2.6	%
Borrowings:
Federal Home Loan Bank advances		1,028,958			1,085,455			(56,497	)	-5.2	%
Other borrowings		93,389			156,522			(63,133	)	-40.3	%
Total borrowings		1,122,347			1,241,977			(119,630	)	-9.6	%
Total interest-bearing liabilities		6,225,943			6,215,877			10,066		0.2	%
Non-interest-bearing liabilities:
Non-interest-bearing deposits		602,647			604,915			(2,268	)	-0.4	%
Other non-interest-bearing liabilities		59,919			65,258			(5,339	)	-8.2	%
Total non-interest-bearing liabilities		662,566			670,173			(7,607	)	-1.1	%
Total liabilities		6,888,509			6,886,050			2,459		0.0	%
Stockholders’ equity		745,225			747,850			(2,625	)	-0.4	%
Total liabilities and stockholders’ equity	$	7,633,734		$	7,633,900		$	(166	)	-0.0	%

Average interest-earning assets to average interest-bearing liabilities		115.27	%		115.41	%		-0.14	%	-0.1	%

Kearny Financial Corp. Performance Ratio Highlights (Unaudited)

	Three Months Ended
	March 31, 2025		December 31, 2024		Variance or Change
Average yield on interest-earning assets:
Loans receivable, including loans held for sale	4.46	%	4.54	%	-0.08	%
Taxable investment securities	4.07	%	4.29	%	-0.22	%
Tax-exempt investment securities⁽¹⁾	2.43	%	2.42	%	0.01	%
Other interest-earning assets	6.40	%	7.62	%	-1.22	%
Total interest-earning assets	4.42	%	4.54	%	-0.12	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.73	%	2.96	%	-0.23	%
Savings	1.30	%	1.29	%	0.01	%
Certificates of deposit (retail)	3.73	%	4.06	%	-0.33	%
Certificates of deposit (brokered)	2.58	%	2.70	%	-0.12	%
Total interest-bearing deposits	2.74	%	2.95	%	-0.21	%
Borrowings:
Federal Home Loan Bank advances	3.63	%	3.78	%	-0.15	%
Other borrowings	4.41	%	4.88	%	-0.47	%
Total borrowings	3.70	%	3.91	%	-0.21	%
Total interest-bearing liabilities	2.91	%	3.15	%	-0.24	%

Interest rate spread⁽²⁾	1.51	%	1.39	%	0.12	%
Net interest margin⁽³⁾	1.90	%	1.82	%	0.08	%

Non-interest income to average assets (annualized)	0.24	%	0.26	%	-0.02	%
Non-interest expense to average assets (annualized)	1.59	%	1.55	%	0.04	%

Efficiency ratio⁽⁴⁾	78.72	%	78.86	%	-0.14	%

Return on average assets (annualized)	0.35	%	0.34	%	0.01	%
Return on average equity (annualized)	3.57	%	3.51	%	0.06	%
Return on average tangible equity (annualized)⁽⁵⁾	4.28	%	4.21	%	0.07	%

_________________________

(1)	The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)	Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)	Net interest income divided by average interest-earning assets.
(4)	Non-interest expense divided by the sum of net interest income and non-interest income.
(5)	Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

Five-Quarter Financial Trend Analysis

Kearny Financial Corp. Consolidated Balance Sheets

(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Unaudited)			(Unaudited)			(Unaudited)			(Audited)			(Unaudited)
Assets
Cash and cash equivalents	$	126,095		$	141,554		$	155,574		$	63,864		$	71,027
Securities available for sale		1,003,393			1,018,279			1,070,811			1,072,833			1,098,655
Securities held to maturity		124,859			127,266			132,256			135,742			139,643
Loans held-for-sale		6,187			5,695			8,866			6,036			4,117
Loans receivable		5,846,175			5,791,758			5,784,246			5,732,787			5,758,336
Less: allowance for credit losses on loans		(44,455	)		(44,457	)		(44,923	)		(44,939	)		(44,930	)
Net loans receivable		5,801,720			5,747,301			5,739,323			5,687,848			5,713,406
Premises and equipment		44,192			45,127			45,189			44,940			45,053
Federal Home Loan Bank stock		62,261			64,443			57,706			80,300			81,347
Accrued interest receivable		28,521			27,772			29,467			29,521			31,065
Goodwill		113,525			113,525			113,525			113,525			210,895
Core deposit intangible		1,554			1,679			1,805			1,931			2,057
Bank owned life insurance		303,629			301,339			300,186			297,874			296,493
Deferred income taxes, net		52,913			53,325			50,131			50,339			47,225
Other assets		64,292			84,080			67,540			98,708			100,989
Total assets	$	7,733,141		$	7,731,385		$	7,772,379		$	7,683,461		$	7,841,972

Liabilities
Deposits:
Non-interest-bearing	$	587,118		$	601,510		$	592,099		$	598,366		$	586,089
Interest-bearing		5,120,230			5,069,550			4,878,413			4,559,757			4,622,961
Total deposits		5,707,348			5,671,060			5,470,512			5,158,123			5,209,050
Borrowings		1,213,976			1,258,949			1,479,888			1,709,789			1,722,178
Advance payments by borrowers for taxes		19,981			17,986			17,824			17,409			17,387
Other liabilities		43,723			38,537			52,618			44,569			44,279
Total liabilities		6,985,028			6,986,532			7,020,842			6,929,890			6,992,894

Stockholders’ Equity
Common stock		646			646			646			644			644
Paid-in capital		494,131			494,092			493,523			493,680			493,187
Retained earnings		341,921			342,155			342,522			343,326			440,308
Unearned ESOP shares		(19,457	)		(19,943	)		(20,430	)		(20,916	)		(21,402	)
Accumulated other comprehensive loss		(69,128	)		(72,097	)		(64,724	)		(63,163	)		(63,659	)
Total stockholders’ equity		748,113			744,853			751,537			753,571			849,078
Total liabilities and stockholders’ equity	$	7,733,141		$	7,731,385		$	7,772,379		$	7,683,461		$	7,841,972

Consolidated capital ratios
Equity to assets		9.67	%		9.63	%		9.67	%		9.81	%		10.83	%
Tangible equity to tangible assets⁽¹⁾		8.31	%		8.27	%		8.31	%		8.43	%		8.34	%

Share data
Outstanding shares		64,580			64,580			64,580			64,434			64,437
Book value per share	$	11.58		$	11.53		$	11.64		$	11.70		$	13.18
Tangible book value per share⁽²⁾	$	9.80		$	9.75		$	9.85		$	9.90		$	9.87

_________________________

(1)	Tangible equity equals total stockholders’ equity reduced by goodwill and core deposit intangible assets. Tangible assets equals total assets reduced by goodwill and core deposit intangible assets.
(2)	Tangible book value equals total stockholders’ equity reduced by goodwill and core deposit intangible assets.


Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Loan portfolio composition:
Commercial loans:
Multi-family mortgage	$	2,733,406		$	2,722,623		$	2,646,187		$	2,645,851		$	2,645,195
Nonresidential mortgage		988,074			950,194			950,771			948,075			965,539
Commercial business		140,224			135,740			145,984			142,747			147,326
Construction		174,722			176,704			227,327			209,237			229,457
Total commercial loans		4,036,426			3,985,261			3,970,269			3,945,910			3,987,517
One- to four-family residential mortgage		1,761,465			1,765,160			1,768,230			1,756,051			1,741,644
Consumer loans:
Home equity loans		49,699			47,101			44,741			44,104			42,731
Other consumer		2,859			2,778			2,965			2,685			3,198
Total consumer loans		52,558			49,879			47,706			46,789			45,929
Total loans, excluding yield adjustments		5,850,449			5,800,300			5,786,205			5,748,750			5,775,090
Unaccreted yield adjustments		(4,274	)		(8,542	)		(1,959	)		(15,963	)		(16,754	)
Loans receivable, net of yield adjustments		5,846,175			5,791,758			5,784,246			5,732,787			5,758,336
Less: allowance for credit losses on loans		(44,455	)		(44,457	)		(44,923	)		(44,939	)		(44,930	)
Net loans receivable	$	5,801,720		$	5,747,301		$	5,739,323		$	5,687,848		$	5,713,406

Asset quality:
Nonperforming assets:
Accruing loans – 90 days and over past due	$	—		$	—		$	—		$	—		$	—
Nonaccrual loans		37,683			37,697			39,854			39,882			39,546
Total nonperforming loans		37,683			37,697			39,854			39,882			39,546
Nonaccrual loans held-for-sale		—			—			—			—			—
Other real estate owned		—			—			—			—			—
Total nonperforming assets	$	37,683		$	37,697		$	39,854		$	39,882		$	39,546

Nonperforming loans (% total loans)		0.64	%		0.65	%		0.69	%		0.70	%		0.69	%
Nonperforming assets (% total assets)		0.49	%		0.49	%		0.51	%		0.52	%		0.50	%

Classified loans	$	125,790		$	132,216		$	119,534		$	118,700		$	115,772

Allowance for credit losses on loans (ACL):
ACL to total loans		0.76	%		0.77	%		0.78	%		0.78	%		0.78	%
ACL to nonperforming loans		117.97	%		117.93	%		112.72	%		112.68	%		113.61	%
Net charge-offs	$	368		$	573		$	124		$	3,518		$	286
Average net charge-off rate (annualized)		0.03	%		0.04	%		0.01	%		0.25	%		0.02	%

Kearny Financial Corp. Supplemental Balance Sheet Highlights (Unaudited)

(Dollars in Thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Funding composition:
Deposits:
Non-interest-bearing deposits	$	587,118		$	601,510		$	592,099		$	598,367		$	586,089
Interest-bearing demand		2,410,925			2,380,408			2,247,685			2,308,915			2,349,032
Savings		758,239			742,266			681,709			643,481			630,456
Certificates of deposit (retail)		1,218,479			1,213,887			1,215,746			1,199,127			1,235,261
Certificates of deposit (brokered)		732,587			732,989			733,273			408,234			408,212
Interest-bearing deposits		5,120,230			5,069,550			4,878,413			4,559,757			4,622,961
Total deposits		5,707,348			5,671,060			5,470,512			5,158,124			5,209,050

Borrowings:
Federal Home Loan Bank advances		1,028,976			1,028,949			1,209,888			1,534,789			1,457,178
Overnight borrowings		185,000			230,000			270,000			175,000			265,000
Total borrowings		1,213,976			1,258,949			1,479,888			1,709,789			1,722,178

Total funding	$	6,921,324		$	6,930,009		$	6,950,400		$	6,867,913		$	6,931,228

Loans as a % of deposits		101.8	%		101.4	%		105.1	%		110.4	%		109.8	%
Deposits as a % of total funding		82.5	%		81.8	%		78.7	%		75.1	%		75.2	%
Borrowings as a % of total funding		17.5	%		18.2	%		21.3	%		24.9	%		24.8	%

Uninsured deposits:
Uninsured deposits (reported)⁽¹⁾	$	1,959,070		$	1,935,607		$	1,799,726		$	1,772,623		$	1,760,740
Uninsured deposits (adjusted)⁽²⁾	$	799,238		$	797,721		$	773,375		$	764,447		$	718,026

_________________________

(1)	Uninsured deposits of Kearny Bank.
(2)	Uninsured deposits of Kearny Bank adjusted to exclude deposits of its wholly-owned subsidiary and holding company and collateralized deposits of state and local governments.


Kearny Financial Corp. Consolidated Statements of Income (Loss) (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Interest income
Loans	$	64,768		$	65,408		$	66,331		$	65,819		$	64,035
Taxable investment securities		12,738			13,803			14,384			14,802			15,490
Tax-exempt investment securities		55			59			71			80			85
Other interest-earning assets		1,773			2,215			2,466			2,289			2,475
Total interest income		79,334			81,485			83,252			82,990			82,085

Interest expense
Deposits		34,912			36,721			35,018			32,187			32,320
Borrowings		10,380			12,152			15,788			17,527			15,446
Total interest expense		45,292			48,873			50,806			49,714			47,766
Net interest income		34,042			32,612			32,446			33,276			34,319
Provision for credit losses		366			107			108			3,527			349
Net interest income after provision for credit losses		33,676			32,505			32,338			29,749			33,970

Non-interest income
Fees and service charges		573			627			635			580			657
Gain (loss) on sale of loans		112			304			200			111			(712	)
Income from bank owned life insurance		2,617			2,619			2,567			3,209			3,039
Electronic banking fees and charges		391			493			391			1,130			464
Other income		869			830			833			776			755
Total non-interest income		4,562			4,873			4,626			5,806			4,203

Non-interest expense
Salaries and employee benefits		17,700			17,579			17,498			17,266			16,911
Net occupancy expense of premises		3,075			2,831			2,798			2,738			2,863
Equipment and systems		3,921			3,892			3,860			3,785			3,823
Advertising and marketing		609			311			342			480			387
Federal deposit insurance premium		1,450			1,503			1,563			1,532			1,429
Directors’ compensation		326			361			361			360			360
Goodwill impairment		—			—			—			97,370			—
Other expense		3,309			3,084			3,364			3,020			3,286
Total non-interest expense		30,390			29,561			29,786			126,551			29,059
Income (loss) before income taxes		7,848			7,817			7,178			(90,996	)		9,114
Income taxes		1,200			1,251			1,086			(917	)		1,717
Net income (loss)	$	6,648		$	6,566		$	6,092		$	(90,079	)	$	7,397

Net income (loss) per common share (EPS)
Basic	$	0.11		$	0.11		$	0.10		$	(1.45	)	$	0.12
Diluted	$	0.11		$	0.10		$	0.10		$	(1.45	)	$	0.12

Dividends declared
Cash dividends declared per common share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11
Cash dividends declared	$	6,933		$	6,933		$	6,896		$	6,903		$	6,844
Dividend payout ratio		104.3	%		105.6	%		113.2	%		-7.7	%		92.5	%

Weighted average number of common shares outstanding
Basic		62,548			62,443			62,389			62,254			62,205
Diluted		62,713			62,576			62,420			62,330			62,211

Kearny Financial Corp. Average Balance Sheet Data (Unaudited)

	Three Months Ended
(Dollars in Thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Interest-earning assets:
Loans receivable, including loans held-for-sale	$	5,805,045		$	5,762,053		$	5,761,593		$	5,743,008		$	5,752,477
Taxable investment securities		1,251,612			1,285,800			1,314,945			1,343,541			1,382,064
Tax-exempt investment securities		9,135			9,711			12,244			13,737			14,614
Other interest-earning assets		110,736			116,354			131,981			128,257			125,155
Total interest-earning assets		7,176,528			7,173,918			7,220,763			7,228,543			7,274,310
Non-interest-earning assets		457,206			459,982			467,670			466,537			577,411
Total assets	$	7,633,734		$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand	$	2,405,974		$	2,314,378		$	2,282,608		$	2,310,521		$	2,378,831
Savings		751,243			711,801			668,240			631,622			635,226
Certificates of deposit (retail)		1,215,767			1,216,948			1,203,770			1,208,101			1,257,362
Certificates of deposit (brokered)		730,612			730,773			551,819			405,697			448,151
Total interest-bearing deposits		5,103,596			4,973,900			4,706,437			4,555,941			4,719,570
Borrowings:
Federal Home Loan Bank advances		1,028,958			1,085,455			1,325,583			1,507,192			1,428,801
Other borrowings		93,389			156,522			237,011			228,461			210,989
Total borrowings		1,122,347			1,241,977			1,562,594			1,735,653			1,639,790
Total interest-bearing liabilities		6,225,943			6,215,877			6,269,031			6,291,594			6,359,360
Non-interest-bearing liabilities:
Non-interest-bearing deposits		602,647			604,915			599,095			589,438			581,870
Other non-interest-bearing liabilities		59,919			65,258			69,629			62,978			65,709
Total non-interest-bearing liabilities		662,566			670,173			668,724			652,416			647,579
Total liabilities		6,888,509			6,886,050			6,937,755			6,944,010			7,006,939
Stockholders’ equity		745,225			747,850			750,678			751,070			844,782
Total liabilities and stockholders’ equity	$	7,633,734		$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721

Average interest-earning assets to average interest-bearing liabilities		115.27	%		115.41	%		115.18	%		114.89	%		114.39	%

Kearny Financial Corp. Performance Ratio Highlights

	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Average yield on interest-earning assets:
Loans receivable, including loans held-for-sale	4.46	%	4.54	%	4.61	%	4.58	%	4.45	%
Taxable investment securities	4.07	%	4.29	%	4.38	%	4.41	%	4.48	%
Tax-exempt investment securities⁽¹⁾	2.43	%	2.42	%	2.32	%	2.32	%	2.32	%
Other interest-earning assets	6.40	%	7.62	%	7.47	%	7.14	%	7.91	%
Total interest-earning assets	4.42	%	4.54	%	4.61	%	4.59	%	4.51	%

Average cost of interest-bearing liabilities:
Deposits:
Interest-bearing demand	2.73	%	2.96	%	3.13	%	3.06	%	3.08	%
Savings	1.30	%	1.29	%	1.05	%	0.63	%	0.46	%
Certificates of deposit (retail)	3.73	%	4.06	%	4.12	%	3.95	%	3.52	%
Certificates of deposit (brokered)	2.58	%	2.70	%	2.18	%	1.59	%	1.97	%
Total interest-bearing deposits	2.74	%	2.95	%	2.98	%	2.83	%	2.74	%
Borrowings:
Federal Home Loan Bank advances	3.63	%	3.78	%	3.82	%	3.86	%	3.55	%
Other borrowings	4.41	%	4.88	%	5.28	%	5.24	%	5.22	%
Total borrowings	3.70	%	3.91	%	4.04	%	4.04	%	3.77	%
Total interest-bearing liabilities	2.91	%	3.15	%	3.24	%	3.16	%	3.00	%

Interest rate spread⁽²⁾	1.51	%	1.39	%	1.37	%	1.43	%	1.51	%
Net interest margin⁽³⁾	1.90	%	1.82	%	1.80	%	1.84	%	1.89	%

Non-interest income to average assets (annualized)	0.24	%	0.26	%	0.24	%	0.30	%	0.21	%
Non-interest expense to average assets (annualized)	1.59	%	1.55	%	1.55	%	6.58	%	1.48	%

Efficiency ratio⁽⁴⁾	78.72	%	78.86	%	80.35	%	323.81	%	75.43	%

Return on average assets (annualized)	0.35	%	0.34	%	0.32	%	-4.68	%	0.38	%
Return on average equity (annualized)	3.57	%	3.51	%	3.25	%	-47.97	%	3.50	%
Return on average tangible equity (annualized)⁽⁵⁾	4.28	%	4.21	%	3.89	%	3.33	%	4.68	%

_________________________

(1)	The yield on tax-exempt investment securities has not been adjusted to reflect their tax-effective yield.
(2)	Interest income divided by average interest-earning assets less interest expense divided by average interest-bearing liabilities.
(3)	Net interest income divided by average interest-earning assets.
(4)	Non-interest expense divided by the sum of net interest income and non-interest income.
(5)	Average tangible equity equals total average stockholders’ equity reduced by average goodwill and average core deposit intangible assets.

The following tables provide a reconciliation of certain financial measures calculated in accordance with Generally Accepted Accounting Principles (“GAAP”) (as reported) and non-GAAP measures. These non-GAAP measures provide additional information which allow readers to evaluate the ongoing performance of the Company. They are not a substitute for GAAP measures; they should be read and used in conjunction with the Company’s GAAP financial information. In all cases, it should be understood that non-GAAP per share measures do not depict amounts that accrue directly to the benefit of shareholders.


Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Adjusted net income:
Net income (loss) (GAAP)	$	6,648		$	6,566		$	6,092		$	(90,079	)	$	7,397
Non-recurring transactions – net of tax:
Net effect of bank-owned life insurance restructure		—			—			—			392			—
Goodwill impairment		—			—			—			95,283			—
Adjusted net income	$	6,648		$	6,566		$	6,092		$	5,596		$	7,397

Calculation of pre-tax, pre-provision net revenue:
Net income (loss) (GAAP)	$	6,648		$	6,566		$	6,092		$	(90,079	)	$	7,397
Adjustments to net income (GAAP):
Provision for income taxes		1,200			1,251			1,086			(917	)		1,717
Provision for credit losses		366			107			108			3,527			349
Pre-tax, pre-provision net revenue (non-GAAP)	$	8,214		$	7,924		$	7,286		$	(87,469	)	$	9,463

Adjusted earnings per share:
Weighted average common shares – basic		62,548			62,443			62,389			62,254			62,205
Weighted average common shares – diluted		62,713			62,576			62,420			62,330			62,211

Earnings per share – basic (GAAP)	$	0.11		$	0.11		$	0.10		$	(1.45	)	$	0.12
Earnings per share – diluted (GAAP)	$	0.11		$	0.10		$	0.10		$	(1.45	)	$	0.12

Adjusted earnings per share – basic (non-GAAP)	$	0.11		$	0.11		$	0.10		$	0.09		$	0.12
Adjusted earnings per share – diluted (non-GAAP)	$	0.11		$	0.10		$	0.10		$	0.09		$	0.12

Pre-tax, pre-provision net revenue per share:
Pre-tax, pre-provision net revenue per share – basic (non-GAAP)	$	0.13		$	0.13		$	0.12		$	(1.41	)	$	0.15
Pre-tax, pre-provision net revenue per share – diluted (non-GAAP)	$	0.13		$	0.13		$	0.12		$	(1.41	)	$	0.15

Adjusted return on average assets:
Total average assets	$	7,633,734		$	7,633,900		$	7,688,433		$	7,695,080		$	7,851,721

Return on average assets (GAAP)		0.35	%		0.34	%		0.32	%		-4.68	%		0.38	%
Adjusted return on average assets (non-GAAP)		0.35	%		0.34	%		0.32	%		0.29	%		0.38	%

Adjusted return on average equity:
Total average equity	$	745,225		$	747,850		$	750,678		$	751,070		$	844,782

Return on average equity (GAAP)		3.57	%		3.51	%		3.25	%		-47.97	%		3.50	%
Adjusted return on average equity (non-GAAP)		3.57	%		3.51	%		3.25	%		2.98	%		3.50	%

Kearny Financial Corp. Reconciliation of GAAP to Non-GAAP (Unaudited)

	Three Months Ended
(Dollars and Shares in Thousands, Except Per Share Data)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Adjusted return on average tangible equity:
Total average equity	$	745,225		$	747,850		$	750,678		$	751,070		$	844,782
Less: average goodwill		(113,525	)		(113,525	)		(113,525	)		(113,525	)		(210,895	)
Less: average other intangible assets		(1,636	)		(1,761	)		(1,886	)		(2,006	)		(2,138	)
Total average tangible equity	$	630,064		$	632,564		$	635,267		$	635,539		$	631,749

Return on average tangible equity (non-GAAP)		4.28	%		4.21	%		3.89	%		3.33	%		4.68	%
Adjusted return on average tangible equity (non-GAAP)		4.28	%		4.21	%		3.89	%		3.58	%		4.68	%

Adjusted non-interest expense ratio:
Non-interest expense (GAAP)	$	30,390		$	29,561		$	29,786		$	126,551		$	29,059
Non-recurring transactions:
Goodwill impairment		—			—			—			(97,370	)		—
Non-interest expense (non-GAAP)	$	30,390		$	29,561		$	29,786		$	29,181		$	29,059

Non-interest expense ratio (GAAP)		1.59	%		1.55	%		1.55	%		6.58	%		1.48	%
Adjusted non-interest expense ratio (non-GAAP)		1.59	%		1.55	%		1.55	%		1.52	%		1.48	%

Adjusted efficiency ratio:
Non-interest expense (non-GAAP)	$	30,390		$	29,561		$	29,786		$	29,181		$	29,059

Net interest income (GAAP)	$	34,042		$	32,612		$	32,446		$	33,276		$	34,319
Total non-interest income (GAAP)		4,562			4,873			4,626			5,806			4,203
Non-recurring transactions:
Net effect of bank-owned life insurance restructure		—			—			—			392			—
Total revenue (non-GAAP)	$	38,604		$	37,485		$	37,072		$	39,474		$	38,522

Efficiency ratio (GAAP)		78.72	%		78.86	%		80.35	%		323.81	%		75.43	%
Adjusted efficiency ratio (non-GAAP)		78.72	%		78.86	%		80.35	%		73.92	%		75.43	%

For further information contact:
Keith Suchodolski, Senior Executive Vice President and Chief Operating Officer, or
Sean Byrnes, Executive Vice President and Chief Financial Officer
Kearny Financial Corp.
(973) 244-4500

The MIL Network –

April 25, 2025

MIL-OSI: PSB Holdings, Inc. Reports Earnings of $0.60 Per Share for Q1 2025; Net Interest Margin Improves For Fourth Consecutive Quarter

Source: GlobeNewswire (MIL-OSI)

WAUSAU, Wis., April 24, 2025 (GLOBE NEWSWIRE) — PSB Holdings, Inc. (“PSB”) (OTCQX: PSBQ), the holding company for Peoples State Bank (“Peoples”) serving Northcentral and Southeastern Wisconsin reported first quarter earnings ending March 31, 2025 of $0.60 per common share on net income of $2.4 million, compared to $0.73 per common share on net income of $3.0 million during the fourth quarter ending December 31, 2024, and $0.39 per common share on net income of $1.6 million during the first quarter ending March 31, 2024.

PSB’s first quarter 2025 operating results reflected the following changes from the fourth quarter of 2024: (1) a stronger net interest margin as asset yields rose and funding costs declined; (2) the addition of a provision for loan losses due to loan growth; (3) higher non-interest income due to lower losses on the sale of securities and an increase in investment and insurance sale commissions; (4) higher non-interest expenses due to higher salaries and employee benefit expenses associated with commercial loan growth incentives and the addition of wealth management personnel; and (5) loan growth of 2% during the quarter.

“We are encouraged with the steady improvements in our net interest margin while also continuing solid loan growth as customers are seeing value in our relationship. We expect operating expenses to decline in the coming quarter and are cautiously optimistic for earnings growth for the remainder of 2025,” stated Scott Cattanach, President and CEO.

March 31, 2025, Highlights:

Net interest income decreased $121,000 to $10.3 million for the quarter ended March 31, 2025, from $10.4 million for the quarter ended December 31, 2024, due in part to two fewer days during the quarter. Meanwhile, asset and loan yields increased while funding costs declined slightly.

Noninterest income increased $589,000 to $1.9 million for the quarter ended March 31, 2025, compared to $1.3 million the prior quarter due to a smaller loss on the sale of securities and an increase in investment and insurance sales commissions.

Noninterest expenses increased to $967,000 to $9.0 million during the quarter ended March 31, 2025 from $8.0 million for the quarter ended December 31, 2024, reflecting higher salary and benefit expenses associated with growth incentive payments and the addition of wealth management personnel in the purchase of the Larson Financial Group, LLC.

Loans increased $18.2 million, or 2% in the first quarter ended March 31, 2025, to $1.10 billion largely due to new commercial & industrial, commercial real estate and construction and development loans. Allowance for credit losses was 1.12% of gross loans.

Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 compared to the previous quarter, from addition of commercial rental real estate units undergoing a sale process.

Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025 from $1.15 billion at December 31, 2024, with the decrease largely consisting of normal commercial money market deposit outflows and seasonal municipal deposit outflows.

Return on average tangible common equity was 9.21% for the quarter ended March 31, 2025, compared to 11.07% the prior quarter and 6.57% in the year ago quarter.

Tangible book value per common share was up 11.3% over the past year to $26.94 at March 31, 2025, compared to $24.21 at March 31, 2024. Additionally, PSB paid dividends totaling $0.64 per share during the past year.

On January 21, 2025, the Bank acquired Larson Financial Group, LLC, a financial advisory company based in Wausau, WI.

Balance Sheet and Asset Quality Review

Total assets decreased $6.2 million during the first quarter to $1.46 billion at March 31, 2025, compared to $1.47 billion at December 31, 2024. Cash and cash equivalents decreased $17.8 million to $22.7 million at March 31, 2025 from $40.5 million at December 31, 2024 as funds were used to originate new loans and fund the outflow of seasonal municipal deposits and normal commercial customer treasury management operations. Cash and cash equivalents increased $6.8 million from one year earlier. Investment securities available for sale decreased $6.5 million to $182.6 million at March 31, 2025, from $189.1 million one quarter earlier. Total collateralized liquidity available to meet cash demands was approximately $323 million at March 31, 2025, with an additional $323 million that could be raised in a short time frame from the brokered CDs market.

Gross loans receivable increased $19.3 million to $1.14 billion at March 31, 2025, compared to one quarter earlier, due primarily to increased commercial real estate, construction & development and commercial & industrial lending. Commercial real estate loans increased $11.3 million to $562.9 million at March 31, 2025 and gross construction and development lending increased $7.7 million to $87.1 million at March 31, 2025, compared to one quarter earlier. Commercial & industrial loans increased $7.2 million to $124.1 million at March 31, 2025. Offsetting gross loan growth, residential real estate loans decreased $3.7 million from the prior quarter to $333.7 million, municipal loans decreased $2.8 million to $12.9 million and consumer installment loans decreased $0.4 million to $4.7 million. The loan portfolio remains well diversified with commercial real estate and construction loans totaling 57.2% of gross loans, followed by residential real estate loans at 29.3% of gross loans, commercial non-real estate loans at 13.1% and consumer loans at 0.4%.

The allowance for credit losses decreased slightly to 1.12% of gross loans at March 31, 2025, from 1.13% the prior quarter. Annualized net charge-offs to average loans were 0.02% for the quarter ended March 31, 2025. Non-performing assets increased $2.6 million to $13.0 million, or 0.89% of total assets at March 31, 2025 from 0.71% at December 31, 2024. The increase reflects a loan relationship we expect to have $1.5 million in repayment in the next 6 months as collateral undergoes a sales process. No specific reserves have been established on the loan as ample collateral currently appears available. Approximately 80% of the non-performing assets consisted of four loan relationships.

Goodwill and other intangibles increased slightly during the quarter ended March 31, 2025 to $3.8 million from $2.7 million one quarter earlier. The increase in intangibles relates to the acquisition of Larson Financial Group, LLC in January 2025.

Total deposits decreased $17.3 million to $1.13 billion at March 31, 2025, from $1.15 billion at December 31, 2024. The decrease in deposits reflects a $22.9 million decrease in uninsured deposits during the first quarter composed primarily of money market deposits, consisting of normal commercial customer operation outflows, particularly with one customer accounting for $18 million of the decline who reinvested following the sale of their business in 2024. Meanwhile, brokered deposits increased $22.9 million and insured and collateralized deposits increased $5.6 million in the quarter ended March 31, 2025.

At March 31, 2025, non-interest bearing demand deposits decreased to 21.8% of total deposits from 22.6% the prior quarter, while interest-bearing demand and savings deposits remained at 29.4% of deposits.

FHLB advances increased $8.0 million to $170.3 million at March 31, 2025, compared to $162.3 million at December 31, 2024.

Tangible stockholder equity as a percentage of total tangible assets increased to 8.05% at March 31, 2025, compared to 7.76% at December 31, 2024, and 7.60% at March 31, 2024.

Tangible net book value per common share increased $2.73 to $26.94, at March 31, 2025, compared to $24.21 one year earlier, an increase of 11.3% after dividends of $0.64 were paid to shareholders. Relative to the prior quarter’s tangible book value per common share of $25.98, tangible net book value per common share increased primarily due to earnings and an increase in the fair market value in the investment portfolios. The accumulated other comprehensive loss on the investment portfolio was $16.7 million at March 31, 2025, compared to $19.3 million one quarter earlier.

Operations Review

Net interest income decreased to $10.3 million (on a net margin of 3.03%) for the first quarter of 2025, from $10.4 million (on a net margin of 2.96%) for the fourth quarter of 2024, and increased from $9.3 million (on a net margin of 2.80%) for the first quarter of 2024. The lower net interest income in the current period while net margin also increased primarily relates to a lower level of earnings assets during the quarter. Meanwhile, earning asset yields increased to 5.35% during the first quarter of 2025 from 5.29% the prior period and interest bearing deposit and borrowing costs decreased four basis points to 3.02% compared to 3.06% during the fourth quarter of 2024. Relative to one year earlier, earning asset yields were up 23 basis points while interest bearing deposit and borrowing costs increased two basis points.

The increase in earning asset yields was due to higher yields on loan originations, loan renewals, security purchases and security repricing. Loan yields increased during the first quarter of 2025 to 5.82% from 5.80% for the fourth quarter of 2024. Taxable security yields were 3.35% for the quarter ended March 31, 2025, compared to 3.16% for the quarter ended December 31, 2024, while tax-exempt security yields increased to 3.35% for the quarter ended March 31, 2025 from 3.31% the previous quarter. The increase in taxable security yields reflects some security restructuring activity from security sales in the prior quarter more fully realized in the current quarter.

The cost of all deposits increased slightly to 2.09% for the quarter ended March 31, 2025, compared to 2.08% the prior quarter, while the overall cost of funds decreased four basis points to 3.02% from 3.06% during the same time period. Deposit costs for time deposits decreased during the first quarter with time deposits decreasing five basis points to 3.97% and money market deposits decreasing 12 basis points to 2.44%. Savings and demand deposits increased three basis points to 1.87%. FHLB advances increased one basis point to 4.41% for the quarter ended March 31, 2025.

Total noninterest income increased $589,000 during the first quarter of 2025 to $1.9 million, from $1.3 million for the fourth quarter of 2024 due primarily to a lower net loss on sale of securities and increased investment and insurance sales commissions of $100,000. Mortgage banking income decreased to $250,000 in the first quarter from $414,000 the prior quarter while various increases in nominal revenue sources accounted for the remaining increase in noninterest income. At March 31, 2025, the Bank serviced $373.4 million in secondary market residential mortgage loans for others which provide fee income.

Noninterest expenses increased $967,000 to $9.0 million for the first quarter of 2025, compared to $8.0 million for the fourth quarter of 2024, and increased $644,000 from $8.3 million for the first quarter of 2024. On a linked quarter basis, December 2024 quarter salary and benefits expense was reduced from year-end final adjustments to incentive estimates, while March 2025 quarterly salary and benefits increased as commercial growth, and related incentives, were greater than budgeted. The LFG acquisition also increased wage and benefit expense. Intangible amortization increased slightly during the first quarter related to the acquisition. Occupancy and facilities costs increased $95,000, data processing and other office operation expenses increased $90,000 and various other noninterest expenses increased $177,000 during the first quarter ended March 31, 2025.

Taxes decreased $51,000 during the first quarter to $473,000, from $524,000 one quarter earlier. The effective tax rate for the quarter ended March 31, 2025, was 15.6% compared to 14.4% for the fourth quarter ended December 31, 2024.

About PSB Holdings, Inc.

PSB Holdings, Inc. is the parent company of Peoples State Bank. Peoples is a community bank headquartered in Wausau, Wisconsin, serving northcentral and southeastern Wisconsin from twelve full-service banking locations in Marathon, Oneida, Vilas, Portage, Milwaukee and Waukesha counties and a loan production office in Dane County. Peoples also provides investment and insurance products, along with retirement planning services, through Peoples Wealth Management, a division of Peoples. PSB Holdings, Inc. is traded under the stock symbol PSBQ on the OTCQX Market. More information about PSB, its management, and its financial performance may be found at www.psbholdingsinc.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about PSB’s business based, in part, on assumptions made by management and include, without limitation, statements with respect to the potential growth of PSB, its future profits, expected stock repurchase levels, future dividend rates, future interest rates, and the adequacy of its capital position. Forward-looking statements can be affected by known and unknown risks, uncertainties, and other factors, including, but not limited to, strength of the economy, the effects of government policies, including interest rate policies, risks associated with the execution of PSB’s vision and growth strategy, including with respect to current and future M&A activity, and risks associated with global economic instability. The forward-looking statements in this press release speak only as of the date on which they are made and PSB does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.


PSB Holdings, Inc.
Consolidated Balance Sheets
March 31, 2025, September 30, June 30, and March 31, 2024, unaudited, December 31, 2024 derived from audited financial statements

	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands, except per share data)		2025			2024			2024			2024			2024

Assets

Cash and due from banks	$	19,628		$	21,414		$	23,554		$	16,475		$	13,340
Interest-bearing deposits		702			3,724			5,126			251			105
Federal funds sold		2,351			15,360			58,434			69,249			2,439

Cash and cash equivalents		22,681			40,498			87,114			85,975			15,884
Securities available for sale (at fair value)		182,594			189,086			174,911			165,177			165,566
Securities held to maturity (fair values of $77,375, $79,654, $82,389, $79,993 and $81,234 respectively)		85,373			86,748			86,847			86,825			87,104
Equity securities		2,847			2,782			1,752			1,661			1,474
Loans held for sale		734			217			–			2,268			865
Loans receivable, net (allowance for credit losses of $12,392, $12,342, $12,598, $12,597 and $12,494 respectively)		1,096,422			1,078,204			1,057,974			1,074,844			1,081,394
Accrued interest receivable		5,184			5,042			4,837			5,046			5,467
Foreclosed assets		300			–			–			–			–
Premises and equipment, net		13,522			13,805			14,065			14,048			13,427
Mortgage servicing rights, net		1,717			1,742			1,727			1,688			1,657
Federal Home Loan Bank stock (at cost)		8,825			8,825			8,825			8,825			7,006
Cash surrender value of bank-owned life insurance		24,897			24,732			24,565			24,401			24,242
Other intangibles		353			195			212			229			249
Goodwill		3,495			2,541			2,541			2,541			2,541
Other assets		10,828			11,539			10,598			12,111			11,682

TOTAL ASSETS	$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558

Liabilities

Non-interest-bearing deposits	$	245,672		$	259,515		$	265,078		$	250,435		$	247,608
Interest-bearing deposits		884,364			887,834			874,035			901,886			865,744

Total deposits		1,130,036			1,147,349			1,139,113			1,152,321			1,113,352

Federal Home Loan Bank advances		170,250			162,250			181,250			184,900			158,250
Other borrowings		6,343			6,872			6,128			5,775			8,096
Senior subordinated notes		4,783			4,781			4,779			4,778			4,776
Junior subordinated debentures		13,049			13,023			12,998			12,972			12,947
Allowance for credit losses on unfunded commitments		672			672			477			477			477
Accrued expenses and other liabilities		13,554			14,723			12,850			13,069			10,247

Total liabilities		1,338,687			1,349,670			1,357,595			1,374,292			1,308,145

Stockholders’ equity

Preferred stock – no par value:
Authorized – 30,000 shares; Issued – 7,200 shares
Outstanding – 7,200 shares, respectively		7,200			7,200			7,200			7,200			7,200
Common stock – no par value with a stated value of $1.00 per share:
Authorized – 18,000,000 shares; Issued – 5,490,798 shares
Outstanding – 4,084,708, 4,092,977, 4,105,594, 4,128,382 and 4,147,649 shares, respectively		1,830			1,830			1,830			1,830			1,830
Additional paid-in capital		8,608			8,610			8,567			8,527			8,466
Retained earnings		142,277			139,838			138,142			135,276			134,271
Accumulated other comprehensive income (loss), net of tax		(16,692	)		(19,314	)		(15,814	)		(20,503	)		(20,775	)
Treasury stock, at cost – 1,406,090, 1,397,821, 1,385,204, 1,362,416 and 1,343,149 shares, respectively		(22,138	)		(21,878	)		(21,552	)		(20,983	)		(20,579	)

Total stockholders’ equity		121,085			116,286			118,373			111,347			110,413

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,459,772		$	1,465,956		$	1,475,968		$	1,485,639		$	1,418,558

PSB Holdings, Inc.
Consolidated Statements of Income

	Quarter Ended
	Mar. 31,			Dec. 31,			Sep. 30,		Jun. 30,		Mar. 31,
(dollars in thousands, except per share data – unaudited)		2025			2024			2024		2024		2024

Interest and dividend income:
Loans, including fees	$	15,782		$	15,646		$	15,634	$	15,433	$	15,109
Securities:
Taxable		1,641			1,545			1,345		1,295		1,197
Tax-exempt		517			522			522		521		526
Other interest and dividends		345			948			699		265		343

Total interest and dividend income		18,285			18,661			18,200		17,514		17,175

Interest expense:
Deposits		5,884			6,027			5,905		5,838		6,082
FHLB advances		1,792			1,890			2,038		1,860		1,450
Other borrowings		47			57			57		58		60
Senior subordinated notes		59			59			59		58		59
Junior subordinated debentures		248			252			252		255		251

Total interest expense		8,030			8,285			8,311		8,069		7,902

Net interest income		10,255			10,376			9,889		9,445		9,273
Provision for credit losses		117			–			–		100		95

Net interest income after provision for credit losses		10,138			10,376			9,889		9,345		9,178

Noninterest income:
Service fees		358			362			367		350		336
Mortgage banking income		250			414			433		433		308
Investment and insurance sales commissions		326			226			230		222		121
Net loss on sale of securities		(1	)		(511	)		–		–		(495	)
Increase in cash surrender value of life insurance		163			166			165		159		157
Other noninterest income		770			620			648		742		617

Total noninterest income		1,866			1,277			1,843		1,906		1,044

Noninterest expense:
Salaries and employee benefits		5,302			4,691			4,771		5,167		5,123
Occupancy and facilities		786			691			757		733		721
Loss (gain) on foreclosed assets		–			–			1		–		–
Data processing and other office operations		1,201			1,111			1,104		1,047		1,022
Advertising and promotion		129			141			164		171		129
Amortization of intangibles		23			17			17		20		24
Other noninterest expenses		1,528			1,351			1,337		1,257		1,306

Total noninterest expense		8,969			8,002			8,151		8,395		8,325

Income before provision for income taxes		3,035			3,651			3,581		2,856		1,897
Provision for income taxes		473			524			593		410		169

Net income	$	2,562		$	3,127		$	2,988	$	2,446	$	1,728
Preferred stock dividends declared	$	122		$	122		$	122	$	122	$	122

Net income available to common shareholders	$	2,440		$	3,005		$	2,866	$	2,324	$	1,606
Basic earnings per common share	$	0.60		$	0.73		$	0.69	$	0.56	$	0.39
Diluted earnings per common share	$	0.60		$	0.73		$	0.69	$	0.56	$	0.39

PSB Holdings, Inc.
Quarterly Financial Summary
(dollars in thousands, except per share data)	Quarter ended
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
Earnings and dividends:		2025			2024			2024			2024			2024

Interest income	$	18,285		$	18,661		$	18,200		$	17,514		$	17,175
Interest expense	$	8,030		$	8,285		$	8,311		$	8,069		$	7,902
Net interest income	$	10,255		$	10,376		$	9,889		$	9,445		$	9,273
Provision for credit losses	$	117		$	–		$	–		$	100		$	95
Other noninterest income	$	1,866		$	1,277		$	1,843		$	1,906		$	1,044
Other noninterest expense	$	8,969		$	8,002		$	8,151		$	8,395		$	8,325
Net income available to common shareholders	$	2,440		$	3,005		$	2,866		$	2,324		$	1,606

Basic earnings per common share (3)	$	0.60		$	0.73		$	0.69		$	0.56		$	0.39
Diluted earnings per common share (3)	$	0.60		$	0.73		$	0.69		$	0.56		$	0.39
Dividends declared per common share (3)	$	–		$	0.32		$	–		$	0.32		$	–
Tangible net book value per common share (4)	$	26.94		$	25.98		$	26.41		$	24.55		$	24.21

Semi-annual dividend payout ratio		n/a			23.27	%		n/a			33.61	%		n/a
Average common shares outstanding		4,088,824			4,094,360			4,132,218			4,139,456			4,154,702

Balance sheet – average balances:
Loans receivable, net of allowances for credit loss	$	1,091,533		$	1,064,619		$	1,066,795		$	1,088,013		$	1,081,936
Assets	$	1,462,862		$	1,479,812		$	1,445,613		$	1,433,749		$	1,429,437
Deposits	$	1,140,397		$	1,151,450		$	1,110,854		$	1,111,240		$	1,138,010
Stockholders’ equity	$	118,576		$	118,396		$	114,458		$	110,726		$	109,473

Performance ratios:
Return on average assets (1)		0.71	%		0.84	%		0.82	%		0.69	%		0.49	%
Return on average common stockholders’ equity (1)		8.88	%		10.75	%		10.63	%		9.03	%		6.32	%
Return on average tangible common stockholders’ equity (1)(4)		9.21	%		11.07	%		10.96	%		9.34	%		6.57	%
Net loan charge-offs to average loans (1)		0.02	%		0.02	%		0.00	%		0.00	%		0.00	%
Nonperforming loans to gross loans		1.15	%		0.95	%		0.97	%		1.15	%		1.08	%
Nonperforming assets to total assets		0.89	%		0.71	%		0.71	%		0.84	%		0.83	%
Allowance for credit losses to gross loans		1.12	%		1.13	%		1.18	%		1.16	%		1.14	%
Nonperforming assets to tangible equity plus the allowance for credit losses (4)		10.71	%		8.85	%		8.71	%		11.09	%		10.59	%
Net interest rate margin (1)(2)		3.03	%		2.96	%		2.90	%		2.84	%		2.80	%
Net interest rate spread (1)(2)		2.33	%		2.23	%		2.16	%		2.15	%		2.12	%
Service fee revenue as a percent of average demand deposits (1)		0.58	%		0.53	%		0.56	%		0.56	%		0.54	%
Noninterest income as a percent of gross revenue		9.26	%		6.40	%		9.20	%		9.81	%		5.73	%
Efficiency ratio (2)		72.88	%		67.59	%		68.43	%		72.52	%		78.93	%
Noninterest expenses to average assets (1)		2.49	%		2.15	%		2.24	%		2.35	%		2.34	%
Average stockholders’ equity less accumulated other comprehensive income (loss) to average assets		9.22	%		9.08	%		9.06	%		9.03	%		8.98	%
Tangible equity to tangible assets (4)		8.05	%		7.76	%		7.85	%		7.32	%		7.60	%

Stock price information:

High	$	26.50		$	27.90		$	25.00		$	21.40		$	22.50
Low	$	25.60		$	25.00		$	20.30		$	19.75		$	20.05
Last trade value at quarter-end	$	25.70		$	26.50		$	25.00		$	20.40		$	21.25

^{(1) Annualized}
^{(2) The yield on tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.}
^{(3) Due to rounding, cumulative quarterly per share performance may not equal annual per share totals.}
^{(4) Tangible stockholders’ equity excludes goodwill and other intangibles.}

PSB Holdings, Inc.
Consolidated Statements of Comprehensive Income

	Quarter Ended
	Mar. 31,			Dec. 31,			Sep. 30,			Jun. 30,			Mar. 31,
(dollars in thousands – unaudited)		2025			2024			2024			2024			2024

Net income	$	2,562		$	3,127		$	2,988		$	2,446		$	1,728

Other comprehensive income, net of tax:

Unrealized gain (loss) on securities available for sale		2,551			(3,955	)		4,738			184			(615	)

Reclassification adjustment for security loss included in net income		1			404			–			–			391

Accretion of unrealized loss included in net income on securities available for sale deferred tax adjustment for Wisconsin Act 19		–			(76	)		–			–			(35	)

Amortization of unrealized loss included in net income on securities available for sale transferred to securities held to maturity		89			90			90			89			91

Unrealized gain (loss) on interest rate swap		(6	)		65			(101	)		39			122

Reclassification adjustment of interest rate swap settlements included in earnings		(13	)		(27	)		(38	)		(40	)		(41	)


Other comprehensive income (loss)		2,622			(3,499	)		4,689			272			(87	)

Comprehensive income (loss)	$	5,184		$	(372	)	$	7,677		$	2,718		$	1,641

PSB Holdings, Inc.
Nonperforming Assets as of:
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
(dollars in thousands)		2025			2024			2024			2024			2024

Nonaccrual loans (excluding restructured loans)	$	12,404		$	10,109		$	10,116		$	12,184		$	11,498
Nonaccrual restructured loans		17			18			25			28			30
Restructured loans not on nonaccrual		280			286			292			299			304
Accruing loans past due 90 days or more		–			–			–			–			–

Total nonperforming loans		12,701			10,413			10,433			12,511			11,832
Other real estate owned		300			–			–			–			–

Total nonperforming assets	$	13,001		$	10,413		$	10,433		$	12,511		$	11,832

Nonperforming loans as a % of gross loans receivable		1.15	%		0.95	%		0.97	%		1.15	%		1.08	%
Total nonperforming assets as a % of total assets		0.89	%		0.71	%		0.71	%		0.84	%		0.83	%
Allowance for credit losses as a % of nonperforming loans		97.57	%		118.52	%		120.75	%		100.69	%		105.59	%

PSB Holdings, Inc.
Nonperforming Assets >= $500,000 net book value before specific reserves
At March 31, 2025
(dollars in thousands)
		Gross			Specific
Collateral Description	Asset Type	Principal			Reserves

Real estate – Recreational Facility	Nonaccrual		4,051			148
Real estate – Independent Auto Repair	Nonaccrual		514			0
Real estate – Dealership	Nonaccrual		2,708			560
Real estate – Rental Units	Nonaccrual		3,077			0


Total listed nonperforming assets		$	10,350		$	708
Total bank wide nonperforming assets		$	13,001		$	1,055
Listed assets as a % of total nonperforming assets			80	%		67	%

PSB Holding, Inc.
Loan Composition by Collateral Type
Quarter-ended (dollars in thousands)	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024

Commercial:
Commercial and industrial	$	124,074		$	116,864		$	115,234		$	125,508		$	118,821
Agriculture		11,632			11,568			11,203			11,480			12,081
Municipal		12,878			15,733			12,596			11,190			28,842

Total Commercial		148,584			144,165			139,033			148,178			159,744

Commercial Real Estate:
Commercial real estate		562,901			551,641			541,577			544,171			546,257
Construction and development		87,080			79,377			60,952			70,540			63,375

Total Commercial Real Estate		649,981			631,018			602,529			614,711			609,632

Residential real estate:
Residential		268,490			271,643			269,954			270,944			274,300
Construction and development		26,884			28,959			34,655			36,129			34,158
HELOC		38,364			36,887			36,734			33,838			31,357

Total Residential Real Estate		333,738			337,489			341,343			340,911			339,815

Consumer installment		4,683			5,060			4,770			4,423			4,867

Subtotals – Gross loans		1,136,986			1,117,732			1,087,675			1,108,223			1,114,058
Loans in process of disbursement		(28,752	)		(27,791	)		(17,836	)		(21,484	)		(20,839	)

Subtotals – Disbursed loans		1,108,234			1,089,941			1,069,839			1,086,739			1,093,219
Net deferred loan costs		580			605			733			702			669
Allowance for credit losses		(12,392	)		(12,342	)		(12,598	)		(12,597	)		(12,494	)

Total loans receivable	$	1,096,422		$	1,078,204		$	1,057,974		$	1,074,844		$	1,081,394

PSB Holding, Inc.
Selected Commercial Real Estate Loans by Purpose

	Mar 31,				Dec 31,				Sept 30,				June 30,				Mar 31,
(dollars in thousands)	2025				2024				2024				2024				2024

	Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)		Total Exposure		% of Portfolio (1)
Multi Family	$	143,674	13.9	%	$	140,087	14.0	%	$	140,307	14.7	%	$	146,873	15.2	%	$	142,001	14.4	%
Industrial and Warehousing		100,494	9.7			88,297	8.8			86,818	9.1			86,025	8.9			85,409	8.6
Retail		40,779	3.9			33,991	3.4			33,020	3.5			34,846	3.6			33,177	3.4
Hotels		30,928	3.0			31,101	3.1			31,611	3.3			34,613	3.6			35,105	3.6
Office		7,254	0.7			6,234	0.6			6,378	0.7			6,518	0.7			6,655	0.7

^{(1) Percentage of commercial and commercial real estate portfolio and commitments.}

PSB Holdings, Inc.
Deposit Composition

Insured and Collateralized Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	206,562	18.3	%	$	204,167	17.8	%	$	210,534	18.5	%	$	202,343	17.5	%	$	199,076	17.8	%
Interest-bearing demand and savings		314,957	27.9	%		315,900	27.6	%		305,631	26.8	%		304,392	26.5	%		318,673	28.7	%
Money market deposits		118,047	10.4	%		141,024	12.3	%		138,376	12.2	%		137,637	12.0	%		143,167	12.9	%
Retail and local time deposits <= $250		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%

Total core deposits		797,632	70.6	%		816,190	71.2	%		810,529	71.2	%		793,670	69.0	%		809,320	72.7	%
Retail and local time deposits > $250		26,750	2.3	%		25,500	2.2	%		23,500	2.1	%		22,500	2.0	%		24,508	2.3	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%
Broker & national time deposits > $250		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%

Totals	$	904,713	80.0	%	$	899,095	78.4	%	$	891,434	78.3	%	$	873,988	76.0	%	$	897,809	80.7	%

PSB Holdings, Inc.
Deposit Composition

Uninsured Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	39,110	3.5	%	$	55,348	4.8	%	$	54,544	4.8	%	$	48,092	4.1	%	$	48,532	4.4	%
Interest-bearing demand and savings		17,262	1.5	%		20,934	1.8	%		18,317	1.6	%		32,674	2.8	%		20,535	1.8	%
Money market deposits		150,222	13.3	%		153,334	13.4	%		157,489	13.8	%		177,954	15.4	%		124,766	11.2	%
Retail and local time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Total core deposits		206,594	18.3	%		229,616	20.0	%		230,350	20.2	%		258,720	22.3	%		193,833	17.4	%
Retail and local time deposits > $250		18,729	1.7	%		18,638	1.6	%		17,329	1.5	%		19,613	1.7	%		21,710	1.9	%
Broker & national time deposits <= $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%
Broker & national time deposits > $250		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%		–	0.0	%

Totals	$	225,323	20.0	%	$	248,254	21.6	%	$	247,679	21.7	%	$	278,333	24.0	%	$	215,543	19.3	%

PSB Holdings, Inc.
Deposit Composition

Total Deposits	March 31,				December 31,				September 30,				June 30,				March 31,
(dollars in thousands)	2025				2024				2024				2024				2024
	$		%		$		%		$		%		$		%		$		%

Non-interest bearing demand	$	245,672	21.8	%	$	259,515	22.6	%	$	265,078	23.3	%	$	250,435	21.6	%	$	247,608	22.2	%
Interest-bearing demand and savings		332,219	29.4	%		336,834	29.4	%		323,948	28.4	%		337,066	29.3	%		339,208	30.5	%
Money market deposits		268,269	23.7	%		294,358	25.7	%		295,865	26.0	%		315,591	27.4	%		267,933	24.1	%
Retail and local time deposits <= $250		158,066	14.0	%		155,099	13.5	%		155,988	13.7	%		149,298	13.0	%		148,404	13.3	%

Total core deposits		1,004,226	88.9	%		1,045,806	91.2	%		1,040,879	91.4	%		1,052,390	91.3	%		1,003,153	90.1	%
Retail and local time deposits > $250		45,479	4.0	%		44,138	3.8	%		40,829	3.6	%		42,113	3.7	%		46,218	4.2	%
Broker & national time deposits <= $250		1,241	0.1	%		1,241	0.1	%		1,241	0.1	%		1,490	0.1	%		2,229	0.2	%
Broker & national time deposits > $250		79,090	7.0	%		56,164	4.9	%		56,164	4.9	%		56,328	4.9	%		61,752	5.5	%

Totals	$	1,130,036	100.0	%	$	1,147,349	100.0	%	$	1,139,113	100.0	%	$	1,152,321	100.0	%	$	1,113,352	100.0	%

PSB Holdings, Inc.
Average Balances ($000) and Interest Rates
(dollars in thousands)


	Quarter ended March 31, 2025							Quarter ended December 31, 2024							Quarter ended March 31, 2024
	Average					Yield /		Average					Yield /		Average					Yield /
	Balance			Interest		Rate		Balance			Interest		Rate		Balance			Interest		Rate
Assets
Interest-earning assets:
Loans (1)(2)	$	1,103,895		$	15,830	5.82	%	$	1,077,242		$	15,693	5.80	%	$	1,094,321		$	15,199	5.59	%
Taxable securities		198,426			1,641	3.35	%		194,272			1,545	3.16	%		171,788			1,197	2.80	%
Tax-exempt securities (2)		79,282			654	3.35	%		79,475			661	3.31	%		80,434			666	3.33	%
FHLB stock		8,825			241	11.08	%		8,825			227	10.23	%		6,499			165	10.21	%
Other		8,960			104	4.71	%		58,405			721	4.91	%		12,885			178	5.56	%

Total (2)		1,399,388			18,470	5.35	%		1,418,219			18,847	5.29	%		1,365,927			17,405	5.12	%

Non-interest-earning assets:
Cash and due from banks		16,292							15,500							17,367
Premises and equipment, net		13,728							14,001							13,183
Cash surrender value ins		24,795							24,625							24,144
Other assets		21,021							20,090							21,201
Allowance for credit losses		(12,362	)						(12,623	)						(12,385	)

Total	$	1,462,862						$	1,479,812						$	1,429,437

Liabilities & stockholders’ equity
Interest-bearing liabilities:
Savings and demand deposits	$	339,909		$	1,567	1.87	%	$	319,777		$	1,479	1.84	%	$	350,497		$	1,672	1.92	%
Money market deposits		280,396			1,685	2.44	%		304,897			1,961	2.56	%		274,186			1,897	2.78	%
Time deposits		268,821			2,632	3.97	%		256,201			2,587	4.02	%		264,657			2,513	3.82	%
FHLB borrowings		164,968			1,792	4.41	%		170,701			1,890	4.40	%		142,926			1,450	4.08	%
Other borrowings		6,321			47	3.02	%		6,848			57	3.31	%		8,554			60	2.82	%
Senior sub. notes		4,782			59	5.00	%		4,780			59	4.91	%		4,775			59	4.97	%
Junior sub. debentures		13,036			248	7.72	%		13,011			252	7.71	%		12,934			251	7.81	%

Total		1,078,233			8,030	3.02	%		1,076,215			8,285	3.06	%		1,058,529			7,902	3.00	%

Non-interest-bearing liabilities:
Demand deposits		251,271							270,575							248,670
Other liabilities		14,782							14,626							12,765
Stockholders’ equity		118,576							118,396							109,473

Total	$	1,462,862						$	1,479,812						$	1,429,437

Net interest income				$	10,440						$	10,562						$	9,503
Rate spread						2.33	%						2.23	%						2.12	%
Net yield on interest-earning assets						3.03	%						2.96	%						2.80	%

^{(1) Nonaccrual loans are included in the daily average loan balances outstanding.}
^{(2) The yield on federally tax-exempt loans and securities is computed on a tax-equivalent basis using a federal tax rate of 21%.}

Investor Relations Contact
PSB Holdings, Inc.
1905 Stewart Avenue
Wausau, WI 54401
888.929.9902
InvestorRelations@bankpeoples.com

The MIL Network –

April 25, 2025

MIL-OSI: HomeTrust Bancshares, Inc. Announces Financial Results for the First Quarter of the Year Ending December 31, 2025 and Declaration of a Quarterly Dividend

Source: GlobeNewswire (MIL-OSI)

ASHEVILLE, N.C., April 24, 2025 (GLOBE NEWSWIRE) — HomeTrust Bancshares, Inc. (NYSE: HTB) (“Company”), the holding company of HomeTrust Bank (“Bank”), today announced preliminary net income for the first quarter of the year ending December 31, 2025 and approval of its quarterly cash dividend.

For the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024:

net income was $14.5 million compared to $14.2 million;
diluted earnings per share (“EPS”) was $0.84 compared to $0.83;
annualized return on assets (“ROA”) was 1.33% compared to 1.27%;
annualized return on equity (“ROE”) was 10.52% compared to 10.32%;
net interest margin was 4.18% compared to 4.09%;
provision for credit losses was $1.5 million compared to a benefit of $855,000;
quarterly cash dividends continued at $0.12 per share totaling $2.1 million for both periods; and
14,800 shares of Company common stock were repurchased during the quarter at an average price of $33.64 compared to none in the prior quarter.

The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.12 per common share payable on May 29, 2025 to shareholders of record as of the close of business on May 15, 2025.

“We are pleased to report another quarter of strong financial results,” said Hunter Westbrook, President and Chief Executive Officer. “Our top quartile net interest margin expanded to 4.18% as the reduction in our funding costs outpaced a slight decline in our asset yields. This improvement reflects our focus on financial performance rather than loan growth for the sake of growth.

“During the first quarter, we transitioned our common stock listing to the New York Stock Exchange under the ticker ‘HTB’, which we believe will provide greater exposure for our Company and long-term value for our stockholders. We also announced the sale of our two branches and exit from Knoxville, Tennessee, which will tighten our geographic footprint, improve our branch efficiencies, and allow us to better allocate capital to support long-term growth in other core markets.

“In response to the recent turbulence in the economic environment, we currently do not anticipate a significant impact upon our business, but we are committed to working with our customers to provide the banking support that may be needed. As in past periods of uncertainty, we are confident that the resilience of our balance sheet and customers, coupled with our conservative approach to risk management, will position HomeTrust to succeed.”

WEBSITE: WWW.HTB.COM

Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024
Net Income. Net income totaled $14.5 million, or $0.84 per diluted share, for the three months ended March 31, 2025 compared to $14.2 million, or $0.83 per diluted share, for the three months ended December 31, 2024, an increase of $331,000, or 2.3%. Results for the three months ended March 31, 2025 benefited from a $3.0 million decrease in noninterest expense, partially offset by a $2.4 million increase in the provision for credit losses. Details of the changes in the various components of net income are further discussed below.

Net Interest Income. The following table presents the distribution of average assets, liabilities and equity, as well as interest income earned on average interest-earning assets and interest expense paid on average interest-bearing liabilities. All average balances are daily average balances. Nonaccruing loans have been included in the table as loans carrying a zero yield.

	Three Months Ended
	March 31, 2025					December 31, 2024
(Dollars in thousands)	Average Balance Outstanding		Interest Earned / Paid		Yield / Rate	Average Balance Outstanding		Interest Earned / Paid		Yield / Rate
Assets
Interest-earning assets
Loans receivable⁽¹⁾	$	3,802,003	$	58,613	6.25%	$	3,890,775	$	62,224	6.36%
Debt securities available for sale		152,659		1,787	4.75		147,023		1,621	4.39
Other interest-earning assets⁽²⁾		206,242		3,235	6.36		160,064		2,353	5.85
Total interest-earning assets		4,160,904		63,635	6.20		4,197,862		66,198	6.27
Other assets		266,141					263,750
Total assets	$	4,427,045				$	4,461,612
Liabilities and equity
Interest-bearing liabilities
Interest-bearing checking accounts	$	573,316	$	1,324	0.94%	$	559,033	$	1,271	0.90%
Money market accounts		1,345,575		9,177	2.77		1,343,609		10,038	2.97
Savings accounts		183,354		38	0.08		180,546		40	0.09
Certificate accounts		951,715		9,824	4.19		1,005,914		11,225	4.44
Total interest-bearing deposits		3,053,960		20,363	2.70		3,089,102		22,574	2.91
Junior subordinated debt		10,129		205	8.21		10,104		223	8.87
Borrowings		12,301		160	5.28		14,689		196	5.31
Total interest-bearing liabilities		3,076,390		20,728	2.73		3,113,895		22,993	2.94
Noninterest-bearing deposits		719,522					731,745
Other liabilities		70,821					68,261
Total liabilities		3,866,733					3,913,901
Stockholders’ equity		560,312					547,711
Total liabilities and stockholders’ equity	$	4,427,045				$	4,461,612
Net earning assets	$	1,084,514				$	1,083,967
Average interest-earning assets to average interest-bearing liabilities		135.25%					134.81%
Non-tax-equivalent
Net interest income			$	42,907				$	43,205
Interest rate spread					3.47%					3.33%
Net interest margin⁽³⁾					4.18%					4.09%
Tax-equivalent⁽⁴⁾
Net interest income			$	43,325				$	43,594
Interest rate spread					3.51%					3.37%
Net interest margin⁽³⁾					4.22%					4.13%

(1)  Average loans receivable balances include loans held for sale and nonaccruing loans.
(2)  Average other interest-earning assets consist of FRB stock, FHLB stock, SBIC investments and deposits in other banks.
(3)  Net interest income divided by average interest-earning assets.
(4)  Tax-equivalent results include adjustments to interest income of $418 and $389 for the three months ended March 31, 2025 and December 31, 2024, respectively, calculated based on a combined federal and state tax rate of 24%.

Total interest and dividend income for the three months ended March 31, 2025 decreased $2.6 million, or 3.9%, compared to the three months ended December 31, 2024, which was driven by a $3.6 million, or 5.8%, decrease in loan interest income primarily due to a decline in the average balance, a decrease in accretion income on acquired loans of $881,000, or 73.3%, and fewer days in the current quarter. In addition, income on SBIC investments increased $452,000, or 54.0%, due to investment appreciation.

Total interest expense for the three months ended March 31, 2025 decreased $2.3 million, or 9.9%, compared to the three months ended December 31, 2024. The decrease was the result of a decline in the average balance of certificate accounts, specifically brokered deposits, a decline in the average cost of funds across funding categories, and fewer days in the current quarter.

The following table shows the effects that changes in average balances (volume), including the difference in the number of days in the periods compared, and average interest rates (rate) had on the interest earned on interest-earning assets and interest paid on interest-bearing liabilities:

	Increase / (Decrease) Due to				Total Increase / (Decrease)
(Dollars in thousands)	Volume		Rate		Total Increase / (Decrease)
Interest-earning assets
Loans receivable	$	(2,559)	$	(1,052)	$	(3,611)
Debt securities available for sale		27		139		166
Other interest-earning assets		616		266		882
Total interest-earning assets		(1,916)		(647)		(2,563)
Interest-bearing liabilities
Interest-bearing checking accounts		7		46		53
Money market accounts		(164)		(697)		(861)
Savings accounts		—		(2)		(2)
Certificate accounts		(796)		(605)		(1,401)
Junior subordinated debt		(3)		(15)		(18)
Borrowings		(35)		(1)		(36)
Total interest-bearing liabilities		(991)		(1,274)		(2,265)
Decrease in net interest income					$	(298)

Provision for Credit Losses. The provision for credit losses is the amount of expense that, based on our judgment, is required to maintain the allowance for credit losses (“ACL”) at an appropriate level under the current expected credit losses model.

The following table presents a breakdown of the components of the provision (benefit) for credit losses:

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024		$ Change		% Change
Provision (benefit) for credit losses
Loans	$	800	$	(975)	$	1,775	182%
Off-balance-sheet credit exposure		740		120		620	517
Total provision (benefit) for credit losses	$	1,540	$	(855)	$	2,395	280%

For the quarter ended March 31, 2025, the “loans” portion of the provision for credit losses was the result of the following, offset by net charge-offs of $1.3 million during the quarter:

$0.6 million benefit driven by changes in the loan mix.
The slight improvement in the projected economic forecast, specifically the national unemployment rate, was offset by changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the quarter ended September 30, 2024.
$0.1 million increase in specific reserves on individually evaluated loans.

For the quarter ended December 31, 2024, the “loans” portion of the provision (benefit) for credit losses was the result of the following, offset by net charge-offs of $1.9 million during the quarter:

$1.3 million benefit driven by changes in the loan mix and a $50.6 million decrease in the loan portfolio.
$0.7 million benefit due to changes in the projected economic forecast, specifically the national unemployment rate, and changes in qualitative adjustments. Of note, we retained the $2.2 million qualitative allocation for the potential impact of Hurricane Helene upon our loan portfolio established in the prior quarter.
$0.9 million decrease in specific reserves on individually evaluated credits.

For the quarter ended March 31, 2025, the amount recorded for off-balance-sheet credit exposure was the result of an increase in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above. For the quarter ended December 31, 2024, the amount recorded for off-balance-sheet credit exposure was the result of a decrease in the balance of loan commitments and changes in the loan mix and projected economic forecast as outlined above.

Noninterest Income. Noninterest income for the three months ended March 31, 2025 decreased $216,000, or 2.6%, when compared to the quarter ended December 31, 2024. Changes in the components of noninterest income are discussed below:

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024		$ Change		% Change
Noninterest income
Service charges and fees on deposit accounts	$	2,244	$	2,326	$	(82)	(4)%
Loan income and fees		721		728		(7)	(1)
Gain on sale of loans held for sale		1,908		1,068		840	79
Bank owned life insurance (“BOLI”) income		842		842		—	—
Operating lease income		1,379		2,259		(880)	(39)
Other		933		1,020		(87)	(9)
Total noninterest income	$	8,027	$	8,243	$	(216)	(3)%

Gain on sale of loans held for sale: The increase was primarily driven by HELOCs sold during the period. There were $89.4 million of HELOCs originated for sale which were sold during the current quarter with gains of $1.1 million compared to no sales in the prior quarter. There were $18.8 million of residential mortgage loans sold for a gain of $473,000 during the current quarter compared to $23.8 million sold with gains of $269,000 in the prior quarter. There were $4.6 million in sales of the guaranteed portion of SBA commercial loans with gains of $366,000 for the current quarter compared to $10.2 million sold and gains of $733,000 for the prior quarter. Our hedging of mandatory commitments on the residential mortgage loan pipeline resulted in a gain of $13,000 for the current quarter compared to a gain of $66,000 for the prior quarter.
Operating lease income: The decrease was primarily the result of a $306,000 increase in losses incurred on the sale of, and a $529,000 increase in the valuation allowance against, previously leased equipment.

Noninterest Expense. Noninterest expense for the three months ended March 31, 2025 decreased $3.0 million, or 9.0%, when compared to the three months ended December 31, 2024. Changes in the components of noninterest expense are discussed below:

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024		$ Change		% Change
Noninterest expense
Salaries and employee benefits	$	17,699	$	17,234	$	465	3%
Occupancy expense, net		2,511		2,476		35	1
Computer services		2,805		3,110		(305)	(10)
Operating lease depreciation expense		1,868		2,068		(200)	(10)
Telephone, postage and supplies		546		541		5	1
Marketing and advertising		452		234		218	93
Deposit insurance premiums		511		556		(45)	(8)
Core deposit intangible amortization		515		567		(52)	(9)
Contract renewal consulting fee		—		2,965		(2,965)	(100)
Other		4,054		4,258		(204)	(5)
Total noninterest expense	$	30,961	$	34,009	$	(3,048)	(9)%

Computer services: As noted below, in the prior quarter we finalized the multiyear renewal of our largest core processing contract. The decrease in expense quarter-over-quarter is a reflection of the improved vendor pricing negotiated through this effort.
Marketing and advertising: The increase in expense was the result of a reduction in advertising in the prior quarter due to the election and holiday season.
Contract renewal consulting fee: In the prior quarter we paid a fee to a consultant to negotiate the multiyear renewal of our largest core processing contract, with no similar fee in the current quarter.

Income Taxes. The amount of income tax expense is influenced by the amount of pre-tax income, tax-exempt income, changes in the statutory rate and the effect of changes in valuation allowances maintained against deferred tax benefits. The effective tax rates for the three months ended March 31, 2025 and December 31, 2024 were 21.1% and 22.3%, respectively.

Balance Sheet Review
Total assets decreased by $37.4 million to $4.6 billion and total liabilities decreased by $51.1 million to $4.0 billion, respectively, at March 31, 2025 as compared to December 31, 2024. These changes can be traced to the use of loan sale proceeds and a $61.5 million increase in customer deposits to pay down brokered deposits by $104.3 million and borrowings by $11.0 million.

Stockholders’ equity increased $13.7 million to $565.4 million at March 31, 2025 as compared to December 31, 2024. Activity within stockholders’ equity included $14.5 million in net income and $1.0 million in stock-based compensation and stock option exercises, partially offset by $2.1 million in cash dividends declared and $498,000 in stock repurchases. In addition, accumulated other comprehensive income improved primarily due to a $1.1 million reduction of the unrealized loss on available for sale securities as a result of a decrease in market interest rates.

As of March 31, 2025, the Bank was considered “well capitalized” in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.

Asset Quality
The ACL on loans was $44.7 million, or 1.23% of total loans, at March 31, 2025 compared to $45.3 million, or 1.24% of total loans, at December 31, 2024. The drivers of this change are discussed in the “Comparison of Results of Operations for the Three Months Ended March 31, 2025 and December 31, 2024 – Provision for Credit Losses” section above.

Net loan charge-offs totaled $1.3 million for the three months ended March 31, 2025 compared to $1.9 million and $2.3 million for the three months ended December 31, 2024 and March 31, 2024, respectively. Annualized net charge-offs as a percentage of average loans were 0.14% for the three months ended March 31, 2025 as compared to 0.19% and 0.24% for the three months ended December 31, 2024 and March 31, 2024, respectively.

Nonperforming assets, made up of nonaccrual loans and repossessed assets, decreased by $753,000, or 2.6%, to $28.0 million, or 0.61% of total assets, at March 31, 2025 compared to $28.8 million, or 0.63% of total assets, at December 31, 2024. Owner occupied commercial real estate (“CRE”) made up the largest portion of nonperforming assets at $8.6 million and $8.5 million, respectively, at these same dates. One relationship made up $5.0 million of the totals at both dates but no loss is anticipated. In addition, equipment finance loans made up $5.1 million and $4.7 million, respectively, at these same dates, concentrated in the transportation sector. The ratio of nonperforming loans to total loans was 0.74% at March 31, 2025 compared to 0.76% at December 31, 2024.

The ratio of classified assets to total assets decreased to 0.85% at March 31, 2025 from 1.06% at December 31, 2024 as classified assets decreased $10.0 million, or 20.5%, to $38.8 million at March 31, 2025 compared to $48.8 million at December 31, 2024. The largest portfolios of classified assets at March 31, 2025 included $12.9 million of owner-occupied CRE loans, $6.6 million of 1-4 family residential real estate loans, $5.4 million of equipment finance loans, $4.2 million of commercial and industrial loans, $4.2 million of HELOCs, and $3.8 million of non-owner occupied CRE loans.

Lastly, in an effort to assist customers in their post-Hurricane Helene recovery and clean-up efforts, in the prior quarter we granted payment deferrals of up to six months to provide short-term relief to impacted customers. The outstanding balance of these deferrals declined from $136.0 million at December 31, 2024 to $109.9 million at March 31, 2025 and $68.4 million at April 21, 2025. The Company retained the prior quarter $2.2 million ACL allocation for the potential impact of the storm on this portion of our loan portfolio. To date, no charge-offs have been recognized which were directly related to Hurricane Helene.

About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of March 31, 2025, the Company had assets of $4.6 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (the Asheville metropolitan area, the “Piedmont” region, Charlotte and Raleigh/Cary), South Carolina (Greenville and Charleston), East Tennessee (Kingsport/Johnson City, Knoxville and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta).

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact, but instead are based on certain assumptions including statements with respect to the Company’s beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance and projections of financial items. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. The factors that could result in material differentiation include, but are not limited to, natural disasters, including the effects of Hurricane Helene; expected revenues, cost savings, synergies and other benefits from merger and acquisition activities might not be realized to the extent anticipated, within the anticipated time frames, or at all, costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected, and goodwill impairment charges might be incurred; increased competitive pressures among financial services companies; changes in the interest rate environment; changes in general economic conditions, both nationally and in our market areas; legislative and regulatory changes; and the effects of inflation, a potential recession, and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission – which are available on the Company’s website at www.htb.com and on the SEC’s website at www.sec.gov. Any of the forward-looking statements that the Company makes in this press release or in the documents the Company files with or furnishes to the SEC are based upon management’s beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions, the factors described above or other factors that management cannot foresee. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)	March 31, 2025		December 31, 2024⁽¹⁾		September 30, 2024		June 30, 2024		March 31, 2024
Assets
Cash	$	14,303	$	18,778	$	18,980	$	18,382	$	16,134
Interest-bearing deposits		285,522		260,441		274,497		275,808		364,359
Cash and cash equivalents		299,825		279,219		293,477		294,190		380,493
Certificates of deposit in other banks		25,806		28,538		29,290		32,131		33,625
Debt securities available for sale, at fair value		150,577		152,011		140,552		134,135		120,807
FHLB and FRB stock		13,602		13,630		18,384		19,637		13,691
SBIC investments, at cost		17,746		15,117		15,489		15,462		14,568
Loans held for sale, at fair value		2,175		4,144		2,968		1,614		2,764
Loans held for sale, at the lower of cost or fair value		151,164		202,018		189,722		224,976		220,699
Total loans, net of deferred loan fees and costs		3,648,609		3,648,299		3,698,892		3,701,454		3,648,152
Allowance for credit losses – loans		(44,742)		(45,285)		(48,131)		(49,223)		(47,502)
Loans, net		3,603,867		3,603,014		3,650,761		3,652,231		3,600,650
Premises and equipment held for sale, at the lower of cost or fair value		8,240		616		616		616		616
Premises and equipment, net		62,347		69,872		69,603		69,880		70,588
Accrued interest receivable		18,269		18,336		17,523		18,412		16,944
Deferred income taxes, net		9,288		10,735		10,100		10,512		11,222
BOLI		91,715		90,868		90,021		89,176		88,369
Goodwill		34,111		34,111		34,111		34,111		34,111
Core deposit intangibles, net		6,080		6,595		7,162		7,730		8,297
Other assets		63,248		66,606		68,130		66,051		67,183
Total assets	$	4,558,060	$	4,595,430	$	4,637,293	$	4,670,864	$	4,684,011
Liabilities and stockholders’ equity
Liabilities
Deposits	$	3,736,360	$	3,779,203	$	3,761,588	$	3,707,779	$	3,799,807
Junior subordinated debt		10,145		10,120		10,096		10,070		10,045
Borrowings		177,000		188,000		260,013		364,513		291,513
Other liabilities		69,106		66,349		65,592		64,874		69,473
Total liabilities		3,992,611		4,043,672		4,097,289		4,147,236		4,170,838
Stockholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding		—		—		—		—		—
Common stock, $0.01 par value, 60,000,000 shares authorized⁽²⁾		176		175		175		175		175
Additional paid in capital		176,682		176,693		175,495		172,907		172,919
Retained earnings		393,026		380,541		368,383		357,147		346,598
Unearned Employee Stock Ownership Plan (“ESOP”) shares		(3,835)		(3,966)		(4,099)		(4,232)		(4,364)
Accumulated other comprehensive income (loss)		(600)		(1,685)		50		(2,369)		(2,155)
Total stockholders’ equity		565,449		551,758		540,004		523,628		513,173
Total liabilities and stockholders’ equity	$	4,558,060	$	4,595,430	$	4,637,293	$	4,670,864	$	4,684,011

(1) Derived from audited financial statements.
(2) Shares of common stock issued and outstanding were 17,552,626 at March 31, 2025; 17,527,709 at December 31, 2024; 17,514,922 at September 30, 2024; 17,437,326 at June 30, 2024; and 17,444,787 at March 31, 2024.

Consolidated Statements of Income (Unaudited)

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024
Interest and dividend income
Loans	$	58,613	$	62,224
Debt securities available for sale		1,787		1,621
Other investments and interest-bearing deposits		3,235		2,353
Total interest and dividend income		63,635		66,198
Interest expense
Deposits		20,363		22,574
Junior subordinated debt		205		223
Borrowings		160		196
Total interest expense		20,728		22,993
Net interest income		42,907		43,205
Provision (benefit) for credit losses		1,540		(855)
Net interest income after provision (benefit) for credit losses		41,367		44,060
Noninterest income
Service charges and fees on deposit accounts		2,244		2,326
Loan income and fees		721		728
Gain on sale of loans held for sale		1,908		1,068
BOLI income		842		842
Operating lease income		1,379		2,259
Other		933		1,020
Total noninterest income		8,027		8,243
Noninterest expense
Salaries and employee benefits		17,699		17,234
Occupancy expense, net		2,511		2,476
Computer services		2,805		3,110
Operating lease depreciation expense		1,868		2,068
Telephone, postage and supplies		546		541
Marketing and advertising		452		234
Deposit insurance premiums		511		556
Core deposit intangible amortization		515		567
Contract renewal consulting fee		—		2,965
Other		4,054		4,258
Total noninterest expense		30,961		34,009
Income before income taxes		18,433		18,294
Income tax expense		3,894		4,086
Net income	$	14,539	$	14,208

Per Share Data

	Three Months Ended
	March 31, 2025		December 31, 2024
Net income per common share⁽¹⁾
Basic	$	0.84	$	0.83
Diluted	$	0.84	$	0.83
Average shares outstanding
Basic		17,011,359		16,983,751
Diluted		17,113,424		17,084,943
Book value per share at end of period	$	32.21	$	31.48
Tangible book value per share at end of period⁽²⁾	$	30.00	$	29.24
Cash dividends declared per common share	$	0.12	$	0.12
Total shares outstanding at end of period		17,552,626		17,527,709

(1) Basic and diluted net income per common share have been prepared in accordance with the two-class method.
(2) See Non-GAAP reconciliations below for adjustments.

Selected Financial Ratios and Other Data

	Three Months Ended
	March 31, 2025	December 31, 2024
Performance ratios⁽¹⁾
Return on assets (ratio of net income to average total assets)	1.33%	1.27%
Return on equity (ratio of net income to average equity)	10.52	10.32
Yield on earning assets	6.20	6.27
Rate paid on interest-bearing liabilities	2.73	2.94
Average interest rate spread	3.47	3.33
Net interest margin⁽²⁾	4.18	4.09
Average interest-earning assets to average interest-bearing liabilities	135.25	134.81
Noninterest expense to average total assets	2.84	3.03
Efficiency ratio	60.79	66.10
Efficiency ratio – adjusted⁽³⁾	60.29	59.89

(1)  Ratios are annualized where appropriate.
(2)  Net interest income divided by average interest-earning assets.
(3)  See Non-GAAP reconciliations below for adjustments.

	At or For the Three Months Ended
	March 31, 2025	December 31, 2024	September 30, 2024	June 30, 2024	March 31, 2024
Asset quality ratios
Nonperforming assets to total assets⁽¹⁾	0.61%	0.63%	0.64%	0.54%	0.43%
Nonperforming loans to total loans⁽¹⁾	0.74	0.76	0.78	0.68	0.55
Total classified assets to total assets	0.85	1.06	0.99	0.91	0.80
Allowance for credit losses to nonperforming loans⁽¹⁾	165.96	163.68	166.51	194.80	235.18
Allowance for credit losses to total loans	1.23	1.24	1.30	1.33	1.30
Net charge-offs to average loans (annualized)	0.14	0.19	0.42	0.27	0.24
Capital ratios
Equity to total assets at end of period	12.41%	12.01%	11.64%	11.21%	10.96%
Tangible equity to total tangible assets⁽²⁾	11.65	11.25	10.88	10.44	10.18
Average equity to average assets	12.66	12.28	12.02	11.78	11.51

(1) Nonperforming assets include nonaccruing loans and repossessed assets. There were no accruing loans more than 90 days past due at the dates indicated. At March 31, 2025, $7.5 million, or 27.9%, of nonaccruing loans were current on their loan payments as of that date.
(2) See Non-GAAP reconciliations below for adjustments.

Loans

(Dollars in thousands)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Commercial real estate
Construction and land development	$	247,539	$	274,356	$	300,905	$	316,050	$	304,727
Commercial real estate – owner occupied		570,150		545,490		544,689		545,631		532,547
Commercial real estate – non-owner occupied		867,711		866,094		881,340		892,653		881,143
Multifamily		118,094		120,425		114,155		92,292		89,692
Total commercial real estate		1,803,494		1,806,365		1,841,089		1,846,626		1,808,109
Commercial
Commercial and industrial		349,085		316,159		286,809		266,136		243,732
Equipment finance		380,166		406,400		443,033		461,010		462,649
Municipal leases		163,554		165,984		158,560		152,509		151,894
Total commercial		892,805		888,543		888,402		879,655		858,275
Residential real estate
Construction and land development		56,858		53,683		63,016		70,679		85,840
One-to-four family		631,537		630,391		627,845		621,196		605,570
HELOCs		199,747		195,288		194,909		188,465		184,274
Total residential real estate		888,142		879,362		885,770		880,340		875,684
Consumer		64,168		74,029		83,631		94,833		106,084
Total loans, net of deferred loan fees and costs		3,648,609		3,648,299		3,698,892		3,701,454		3,648,152
Allowance for credit losses – loans		(44,742)		(45,285)		(48,131)		(49,223)		(47,502)
Loans, net	$	3,603,867	$	3,603,014	$	3,650,761	$	3,652,231	$	3,600,650

Deposits

(Dollars in thousands)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Core deposits
Noninterest-bearing accounts	$	721,814	$	680,926	$	684,501	$	683,346	$	773,901
NOW accounts		573,745		575,238		534,517		561,789		600,561
Money market accounts		1,357,961		1,341,995		1,345,289		1,311,940		1,308,467
Savings accounts		184,396		181,317		179,762		185,499		191,302
Total core deposits		2,837,916		2,779,476		2,744,069		2,742,574		2,874,231
Certificates of deposit		898,444		999,727		1,017,519		965,205		925,576
Total	$	3,736,360	$	3,779,203	$	3,761,588	$	3,707,779	$	3,799,807

Non-GAAP Reconciliations
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio, tangible book value, tangible book value per share and the tangible equity to tangible assets ratio. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Set forth below is a reconciliation to GAAP of the Company’s efficiency ratio:

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024
Noninterest expense	$	30,961	$	34,009
Less: contract renewal consulting fee		—		2,965
Noninterest expense – adjusted	$	30,961	$	31,044

Net interest income	$	42,907	$	43,205
Plus: tax-equivalent adjustment		418		389
Plus: noninterest income		8,027		8,243
Net interest income plus noninterest income – adjusted	$	51,352	$	51,837

Efficiency ratio		60.79%			66.10%
Efficiency ratio – adjusted		60.29%			59.89%

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

	As of
(Dollars in thousands, except per share data)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Total stockholders’ equity	$	565,449	$	551,758	$	540,004	$	523,628	$	513,173
Less: goodwill, core deposit intangibles, net of taxes		38,793		39,189		39,626		40,063		40,500
Tangible book value	$	526,656	$	512,569	$	500,378	$	483,565	$	472,673
Common shares outstanding		17,552,626		17,527,709		17,514,922		17,437,326		17,444,787
Book value per share	$	32.21	$	31.48	$	30.83	$	30.03	$	29.42
Tangible book value per share	$	30.00	$	29.24	$	28.57	$	27.73	$	27.10

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

	As of
(Dollars in thousands)	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Tangible equity⁽¹⁾	$	526,656	$	512,569	$	500,378	$	483,565	$	472,673
Total assets		4,558,060		4,595,430		4,637,293		4,670,864		4,684,011
Less: goodwill, core deposit intangibles, net of taxes		38,793		39,189		39,626		40,063		40,500
Total tangible assets	$	4,519,267	$	4,556,241	$	4,597,667	$	4,630,801	$	4,643,511

Tangible equity to tangible assets

11.65%

11.25%

10.88%

10.44%

10.18%

(1) Tangible equity (or tangible book value) is equal to total stockholders’ equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.

The MIL Network –

April 25, 2025

MIL-OSI: CALIFORNIA BANCORP REPORTS NET INCOME OF $16.9 MILLION FOR THE FIRST QUARTER OF 2025

Source: GlobeNewswire (MIL-OSI)

San Diego, Calif., April 24, 2025 (GLOBE NEWSWIRE) — California BanCorp (“us,” “we,” “our,” or the “Company”) (NASDAQ: BCAL), the holding company for California Bank of Commerce, N.A. (the “Bank”) announces its consolidated financial results for the first quarter of 2025.

The Company reported net income of $16.9 million, or $0.52 per diluted share, for the first quarter of 2025, compared to $16.8 million, or $0.51 per diluted share for the fourth quarter of 2024, and net income of $4.9 million, or $0.26 per diluted share for the first quarter of 2024.

“I’m pleased to report our strong first quarter earnings of $16.9 million, the second strong quarter of combined financial results since the close of our merger last July,” said David Rainer, Executive Chairman of the Company and Bank. “We continue to execute on our strategy of derisking the consolidated balance sheet through decreasing our exposure in the Sponsor Finance portfolio, and reducing our reliance on brokered deposits. We remain focused on building tangible book value, which increased to $12.29 per common share in the first quarter, up $0.58 from the prior quarter and $1.37 in the eight months since the merger closed.”

“We continue with our successful integration, as demonstrated by the strong performance achieved in our first two quarters of combined operations,” said Steven Shelton, CEO of the Company and Bank. “Markets have been volatile lately with the recent changes in tariff policies and given the fluid dynamics of the situation we are reaching out to our clients to assess the potential impact of these changing policies on their businesses. As always, we continue to focus on providing them the highest level of outstanding service, and on building shareholder value.”

First Quarter 2025 Highlights

	●	Net income of $16.9 million or $0.52 diluted earnings per share for the first quarter.
	●	Net interest margin of 4.65%, compared with 4.61% in the prior quarter; average total loan yield of 6.61% compared with 6.84% in the prior quarter.
	●	Reversal of credit losses of $3.8 million for the first quarter, compared with $3.8 million for the prior quarter.
	●	Return on average assets of 1.71%, compared with 1.60% in the prior quarter.
	●	Return on average common equity of 13.18%, compared with 13.21% in the prior quarter.
	●	Efficiency ratio (non-GAAP¹) of 55.6% compared with 57.4% in the prior quarter; excluding merger related expenses the efficiency ratio was 55.6%, compared with 55.9% in the prior quarter.
	●	Tangible book value per common share (non-GAAP¹) of $12.29 at March 31, 2025, up $0.58 from $11.71 at December 31, 2024.
	●	Total assets of $3.98 billion at March 31, 2025, compared with $4.03 billion at December 31, 2024.
	●	Total loans, including loans held for sale of $3.07 billion at March 31, 2025, compared with $3.16 billion at December 31, 2024.
	●	Nonperforming assets to total assets ratio of 0.68% at March 31, 2025, compared with 0.76% at December 31, 2024.
	●	Allowance for credit losses (“ACL”) was 1.57% of total loans held for investment at March 31, 2025; allowance for loan losses (“ALL”) was 1.49% of total loans held for investment at March 31, 2025.
	●	Total deposits of $3.34 billion at March 31, 2025, decreased $56.3 million or 1.7% compared with $3.40 billion at December 31, 2024.
	●	Noninterest-bearing demand deposits of $1.29 billion at March 31, 2025, an increase of $35.7 million or 2.8% from December 31, 2024; noninterest bearing deposits represented 38.7% of total deposits, compared with $1.26 billion, or 37.0% of total deposits at December 31, 2024.
	●	Total brokered deposits of $13.8 million, a decrease of $107.4 million from December 31, 2024.
	●	Cost of deposits was 1.59%, compared with 1.87% in the prior quarter.
	●	Cost of funds was 1.72%, compared with 1.99% in the prior quarter.
	●	The Company’s preliminary capital ratios at March 31, 2025 exceed the minimums required to be “well-capitalized,” the highest regulatory capital category.

First Quarter Operating Results

Net Income

Net income for the first quarter of 2025 was $16.9 million, or $0.52 per diluted share, compared to $16.8 million, or $0.51 per diluted share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP¹) for the first quarter was $19.9 million, an increase of $481 thousand from the prior quarter. Excluding the merger and related expenses, the adjusted pre-tax, pre-provision income (non-GAAP¹) for the first quarter was $19.9 million, a decrease of $162 thousand from the prior quarter. The net income and diluted earnings per share increases were largely driven by the merger with predecessor California BanCorp (the “Merger”) and the operating results since the closing date of the Merger.

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2025 was $42.3 million, compared with $44.5 million in the prior quarter. The decrease in net interest income was primarily due to a $5.7 million decrease in total interest and dividend income, partially offset by a $3.4 million decrease in total interest expense in the first quarter of 2025, as compared to the prior quarter. During the first quarter of 2025, loan interest income decreased by $4.1 million, including a decrease of $421 thousand of accretion income from the net purchase accounting discounts on acquired loans, total debt securities income decreased $174 thousand, and interest and dividend income from other financial institutions decreased $1.5 million. The decrease in interest income was mainly due to decreases in average loan balances and average deposits in other financial institutions. Average total interest-earning assets decreased $160.8 million in the first quarter of 2025, the result of a $75.2 million decrease in average total loans, a $8.5 million decrease in average total debt securities, a $105.5 million decrease in average deposits in other financial institutions, partially offset by a $27.1 million increase in average Fed funds sold/resale agreements and a $1.3 million increase in average restricted stock investments and other bank stock. The decrease in interest expense for the first quarter of 2025 was primarily due to a $3.4 million decrease in interest expense on interest-bearing deposits, the result of a $151.1 million decrease in average interest-bearing deposits and a 39 basis point decrease in average interest-bearing deposit costs in the first quarter of 2025.

Net interest margin for the first quarter of 2025 was 4.65%, compared with 4.61% in the prior quarter. The increase was primarily related to a 27 basis point decrease in the cost of funds, partially offset by a 22 basis point decrease in the total interest-earning assets yield. The yield on total average interest-earning assets in the first quarter of 2025 was 6.26%, compared with 6.48% in the prior quarter. The yield on average total loans in the first quarter of 2025 was 6.61%, a decrease of 23 basis points from 6.84% in the prior quarter. Accretion income from the net purchase accounting discounts on acquired loans was $5.7 million, increasing the yield on average total loans by 62 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $526 thousand, the combination of which increased the net interest margin by 57 basis points in the first quarter of 2025. In the prior quarter, accretion income from the net purchase accounting discounts on acquired loans was $6.1 million, increasing the yield on average total loans by 76 basis points; the net amortization expense from the purchase accounting discounts on acquired subordinated debt and acquired time deposits premium increased the interest expense by $467 thousand, the combination of which increased the net interest margin by 58 basis points.

Cost of funds for the first quarter of 2025 was 1.72%, a decrease of 27 basis points from 1.99% in the prior quarter. The decrease was primarily driven by a 39 basis point decrease in the cost of average interest-bearing deposits, partially offset by an increase of 9 basis points in the cost of total borrowings, which was driven primarily by the amortization expense of $559 thousand from the purchase accounting discounts on acquired subordinated debt which increased the cost on total borrowings by 7 basis points. Average noninterest-bearing demand deposits decreased $27.7 million to $1.26 billion and represented 37.4% of total average deposits for the first quarter of 2025, compared with $1.28 billion and 36.3%, respectively, in the prior quarter; average interest-bearing deposits decreased $151.1 million to $2.10 billion during the first quarter of 2025. The total cost of deposits in the first quarter of 2025 was 1.59%, a decrease of 28 basis points from 1.87% in the prior quarter. The cost of total interest-bearing deposits decreased primarily due to the Company’s deposit repricing strategy and the ongoing pay off of high cost brokered deposits in the first quarter of 2025.

Average total borrowings increased $607 thousand to $70.0 million in the first quarter of 2025, primarily due to the amortization related to the purchase accounting discounts on acquired subordinated debt. The average cost of total borrowings was 8.06% for the first quarter of 2025, up from 7.97% in the prior quarter.

Reversal of Credit Losses

The Company recorded a reversal of credit losses of $3.8 million in both the first quarter of 2025 and the prior quarter. Total net charge-offs were $1.5 million in the first quarter of 2025, which included $273 thousand from an acquired consumer solar loan portfolio, $1.2 million from commercial and industrial dental loans acquired from the Merger and $1.7 million from a purchase credit deteriorated (“PCD”) commercial real-estate loan, partially offset by a $1.6 million recovery from a PCD commercial and industrial loan. The reversal of credit losses in the first quarter of 2025 included a $618 thousand reversal of credit losses for unfunded loan commitments related to the decrease in unfunded loan commitments during the first quarter of 2025, coupled with lower loss rates used to estimate the allowance for credit losses on unfunded commitments. Total unfunded loan commitments decreased $33.2 million to $892.1 million at March 31, 2025, compared to $925.3 million in unfunded loan commitments at December 31, 2024.

The reversal of credit losses for loans held for investment in the first quarter of 2025 was $3.2 million, an increase of $291 thousand from a reversal of credit losses of $2.9 million in the prior quarter. The increase was driven primarily by changes in the composition of the loans held for investment portfolio, coupled with changes in qualitative factors and the reasonable and supportable forecast, primarily related to the economic outlook for California. The Company’s management continues to monitor macroeconomic variables related to changes in interest rates and the concerns of an economic downturn, and believes it has appropriately provisioned for the current environment.

Noninterest Income

The Company recorded noninterest income of $2.6 million in the first quarter of 2025, an increase of $1.6 million compared to $1.0 million in the fourth quarter of 2024. The Company reported a gain on sale of loans of $577 thousand from SBA 7A loan sales, in the first quarter of 2025, compared to a loss on sale of loans of $1.1 million related to the sale of certain Sponsor Finance loans in the prior quarter. Service charges and fees on deposit accounts of $1.2 million in the first quarter of 2025 increased $275 thousand from the prior quarter, related to the one-time waiver of analysis charges for certain deposit accounts in light of the core system conversion in the prior quarter. Bank owned life insurance income of $463 thousand in the first quarter of 2025 decreased $360 thousand from the prior quarter, primarily related to a $368 thousand death benefit income recorded in the prior quarter. No comparable death benefit income was recorded in the first quarter of 2025.

Noninterest Expense

Total noninterest expense for the first quarter of 2025 was $24.9 million, a decrease of $1.2 million from total noninterest expense of $26.1 million in the prior quarter, which was largely due to the decrease in merger related expenses.

Salaries and employee benefits decreased $210 thousand during the quarter to $15.9 million. The decrease in salaries and employee benefits was primarily related to the decrease in average headcount. There were no merger related expenses in the first quarter of 2025, compared to $643 thousand in the prior quarter. Regulatory assessments of $722 thousand increased $286 thousand due to an increase in the FDIC assessment rates. Other real estate owned expense of $68 thousand in the first quarter of 2025 decreased by $152 thousand, due primarily to lower receivership expenses and property tax. Other expenses of $2.0 million in the first quarter of 2025 decreased by $175 thousand, due primarily to lower loan related expenses, customer service related expenses, travel expenses and insurance expenses.

Efficiency ratio (non-GAAP¹) for the first quarter of 2025 was 55.6%, compared to 57.4% in the prior quarter. Excluding the merger and related expenses of zero and $643 thousand, the efficiency ratio (non-GAAP¹) for the first quarter of 2025 and fourth quarter of 2024 would have been 55.6% and 55.9%, respectively.

Income Tax

In the first quarter of 2025, the Company’s income tax expense was $6.8 million, compared with $6.5 million in the fourth quarter of 2024. The effective rate was 28.8% for the first quarter of 2025 and 27.9% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter of 2025 was primarily attributable to the impact of the non-tax deductible portion of the merger expenses and the vesting and exercise of equity awards combined with changes in the Company’s stock price over time, partially offset by the impact of the tax on the excess executive compensation.

Balance Sheet

Assets

Total assets at March 31, 2025 were $3.98 billion, a decrease of $48.6 million or 1.2% from December 31, 2024. The decrease in total assets from the prior quarter was primarily related to a decrease in loans, including loans held for sale, of $82.9 million, partially offset by an increase in cash and cash equivalents of $51.1 million as compared to the prior quarter. The decrease in assets primarily relates to the decreases in wholesale funding sources and loan sales and payoffs.

Loans

Total loans held for investment were $3.07 billion at March 31, 2025, a decrease of $70.4 million, compared to December 31, 2024. During the first quarter of 2025, there were new originations of $69.4 million, offset by net paydowns of $21.5 million, loan sales and payoffs of $115.1 million, and the partial charge-offs of loans in the amount of $3.2 million. Total loans secured by real estate decreased by $30.7 million, of which construction and land development loans decreased by $5.9 million, commercial real estate and other loans decreased by $11.8 million, 1-4 family residential loans decreased by $7.0 million and multifamily loans decreased by $6.1 million. Commercial and industrial loans decreased by $38.5 million, and consumer loans decreased by $1.2 million. The Company had $4.6 million in loans held for sale at March 31, 2025, compared to $17.2 million at December 31, 2024.

Deposits

Total deposits at March 31, 2025 were $3.34 billion, a decrease of $56.3 million from December 31, 2024. The decrease primarily consisted of $107.4 million of brokered time deposits, partially offset by a $35.7 million increase in noninterest-bearing demand deposits, $10.9 million in interest-bearing non-maturity deposits, and $4.5 million of non-brokered time deposits. Noninterest-bearing demand deposits at March 31, 2025, were $1.29 billion, or 38.7% of total deposits, compared with $1.26 billion, or 37.0% of total deposits at December 31, 2024. At March 31, 2025, total interest-bearing deposits were $2.05 billion, compared to $2.14 billion at December 31, 2024. At March 31, 2025, total brokered time deposits were $13.8 million, compared to $121.1 million at December 31, 2024. The Company offers the Insured Cash Sweep (ICS) product, Certificate of Deposit Account Registry Service (CDARS), and Reich & Tang Deposit Solutions (R&T) network, all of which provide reciprocal deposit placement services to fully qualified large customer deposits for FDIC insurance among other participating banks. At March 31, 2025, total reciprocal deposits were $763.6 million, or 22.8% of total deposits at March 31, 2025, compared to $754.4 million, or 22.2% of total deposits at December 31, 2024.

Federal Home Loan Bank (“FHLB”) and Liquidity

At March 31, 2025 and December 31, 2024, the Company had no overnight FHLB borrowings. There were no outstanding Federal Reserve Discount Window borrowings at March 31, 2025 or December 31, 2024.

At March 31, 2025, the Company had available borrowing capacity from an FHLB secured line of credit of approximately $687.8 million and available borrowing capacity from the Federal Reserve Discount Window of approximately $353.0 million. The Company also had available borrowing capacity from four unsecured credit lines from correspondent banks of approximately $90.5 million at March 31, 2025, with no outstanding borrowings. Total available borrowing capacity was $1.13 billion at March 31, 2025. Additionally, the Company had unpledged liquid securities at fair value of approximately $118.5 million and cash and cash equivalents of $439.2 million at March 31, 2025.

Asset Quality

Total non-performing assets decreased to $26.9 million, or 0.68% of total assets at March 31, 2025, compared with $30.6 million, or 0.76% of total assets at December 31, 2024. Total non-performing loans decreased to $22.8 million, or 0.74% of total loans held for investment at March 31, 2025, compared with $26.5 million, or 0.85% of total loans held for investment at December 31, 2024.

There were four loans totaling $6.8 million downgraded to nonaccrual, partially offset by one 1-4 family residential loan of $2.9 million upgraded to accrual status and one commercial real estate loan of $7.2 million sold with an additional charge-off of $1.7 million during the first quarter of 2025. Non-performing assets in the first quarter of 2025 included OREO, net of valuation allowance, of $4.1 million related to a multifamily building, the same balance as the prior quarter.

Special mention loans increased by $5.1 million during the first quarter of 2025 to $74.4 million at March 31, 2025. The increase in the special mention loans was due mostly to $18.9 million in downgrades from Pass loans and $8.6 million in net advances, partially offset by $15.9 million in downgrades to substandard loans, $2.1 million upgrades to Pass loans, and $4.5 million in payoffs. Substandard loans decreased by $5.8 million during the first quarter of 2025 to $111.8 million at March 31, 2025. The decrease in the substandard loans was due primarily to a 1-4 family residential loan and a commercial real estate nonaccrual PCD loan totaling $11.6 million that were both sold, $16.0 million in paydowns and payoffs, and $1.2 million in net charge-offs, partially offset by $7.2 million in downgrades from Pass loans, and $15.9 million in downgrades from special mention loans.

The Company had $45 thousand in consumer solar loans that were over 90 days past due and still accruing interest at March 31, 2025, compared to $150 thousand in such delinquencies at December 31, 2024.

There were $5.1 million in loan delinquencies (30-89 days past due, excluding nonaccrual loans) at March 31, 2025, compared to $12.1 million in such loan delinquencies at December 31, 2024.

The allowance for credit losses, which is comprised of the allowance for loan losses (“ALL”) and reserve for unfunded loan commitments, totaled $48.3 million at March 31, 2025, compared to $53.6 million at December 31, 2024. The decrease in the allowance for credit losses included a $3.2 million and $618 thousand reversal of provision for credit losses for the loan portfolio and reserve for unfunded loan commitments, respectively, coupled with total net charge-offs of $1.5 million for the quarter ended March 31, 2025.

The ALL was $45.8 million, or 1.49% of total loans held for investment at March 31, 2025, compared with $50.5 million, or 1.61% at December 31, 2024.

Capital

Tangible book value per common share (non-GAAP¹) at March 31, 2025, was $12.29, compared with $11.71 at December 31, 2024. In the first quarter of 2025, tangible book value was primarily impacted by net income of $16.9 million for the first quarter, stock-based compensation expense, coupled with a decrease in net of tax unrealized losses on available-for-sale debt securities. Other comprehensive losses related to unrealized losses, net of taxes, on available-for-sale debt securities decreased by $2.2 million to $4.4 million at March 31, 2025, from $6.6 million at December 31, 2024. The decrease in the net of tax unrealized losses on available-for-sale debt securities was attributable to non-credit related factors, including an increase in bond prices at the long end of the yield curve and the general interest rate environment. Tangible common equity (non-GAAP¹) as a percentage of total tangible assets (non-GAAP¹) at March 31, 2025, increased to 10.34% from 9.69% in the prior quarter, and unrealized losses, net of taxes, on available-for-sale debt securities as a percentage of tangible common equity (non-GAAP¹) at March 31, 2025 decreased to 1.1% from 1.8% in the prior quarter.

The Company’s preliminary capital ratios exceed the minimums required to be “well-capitalized” at March 31, 2025.

ABOUT CALIFORNIA BANCORP

California BanCorp (NASDAQ: BCAL) is a registered bank holding company headquartered in San Diego, California. California Bank of Commerce, N.A., a national banking association chartered under the laws of the United States (the “Bank”) and regulated by the Office of Comptroller of the Currency, is a wholly owned subsidiary of California BanCorp. Established in 2001 and headquartered in San Diego, California, the Bank offers a range of financial products and services to individuals, professionals, and small to medium-sized businesses through its 14 branch offices and four loan production offices serving Northern and Southern California. The Bank’s solutions-driven, relationship-based approach to banking provides accessibility to decision makers and enhances value through strong partnerships with its clients. Additional information is available at www.bankcbc.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

In addition to historical information, this release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and other matters that are not historical facts. Examples of forward-looking statements include, among others, statements regarding expectations, plans or objectives for future operations, products or services, loan recoveries, projections, expectations regarding the adequacy of reserves for credit losses and statements about the benefits of the Merger, as well as forecasts relating to financial and operating results or other measures of economic performance. Forward-looking statements reflect management’s current view about future events and involve risks and uncertainties that may cause actual results to differ from those expressed in the forward-looking statement or historical results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and often include the words or phrases such as “aim,” “can,” “may,” “could,” “predict,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “hope,” “intend,” “plan,” “potential,” “project,” “will likely result,” “continue,” “seek,” “shall,” “possible,” “projection,” “optimistic,” and “outlook,” and variations of these words and similar expressions.

Factors that could cause or contribute to results differing from those in or implied in the forward-looking statements include but are not limited to risks related to the Merger, including the risks that cost savings may be less than anticipated, and difficulties in retaining senior management, employees or customers, the impact of bank failures or other adverse developments at other banks on general investor sentiment regarding the stability and liquidity of banks, changes in real estate markets and valuations; the impact on financial markets from geopolitical conflicts; inflation, interest rate, market and monetary fluctuations and general economic conditions, either nationally or locally in the areas in which the Company conducts business; increases in competitive pressures among financial institutions and businesses offering similar products and services; general credit risks related to lending, including changes in the value of real estate or other collateral, the financial condition of borrowers, the effectiveness of our underwriting practices and the risk of fraud; higher than anticipated defaults in the Company’s loan portfolio; changes in management’s estimate of the adequacy of the allowance for credit losses or the factors the Company uses to determine the allowance for credit losses; changes in demand for loans and other products and services offered by the Company; the costs and outcomes of litigation; legislative or regulatory changes or changes in accounting principles, policies or guidelines and other risk factors discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) and other documents the Company may file with the SEC from time to time.

Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents the Company files with the SEC from time to time.

Any forward-looking statement made in this release is based only on information currently available to management and speaks only as of the date on which it is made. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements or to conform such forward-looking statements to actual results or to changes in its opinions or expectations, except as required by law.

California BanCorp and Subsidiary
Financial Highlights (Unaudited)

	At or for the Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	($ in thousands except share and per share data)
EARNINGS
Net interest income	$	42,255		$	44,541		$	20,494
Reversal of credit losses	$	(3,776	)	$	(3,835	)	$	(331	)
Noninterest income	$	2,566		$	1,004		$	1,413
Noninterest expense	$	24,920		$	26,125		$	14,981
Income tax expense	$	6,824		$	6,483		$	2,322
Net income	$	16,853		$	16,772		$	4,935
Pre-tax pre-provision income ⁽¹⁾	$	19,901		$	19,420		$	6,926
Adjusted pre-tax pre-provision income ⁽¹⁾	$	19,901		$	20,063		$	7,475
Diluted earnings per share	$	0.52		$	0.51		$	0.26
Shares outstanding at period end		32,402,140			32,265,935			18,527,178

PERFORMANCE RATIOS
Return on average assets		1.71	%		1.60	%		0.86	%
Adjusted return on average assets ⁽¹⁾		1.71	%		1.64	%		0.95	%
Return on average common equity		13.18	%		13.21	%		6.85	%
Adjusted return on average common equity ⁽¹⁾		13.18	%		13.57	%		7.61	%
Yield on total loans		6.61	%		6.84	%		6.02	%
Yield on interest earning assets		6.26	%		6.48	%		5.79	%
Cost of deposits		1.59	%		1.87	%		2.05	%
Cost of funds		1.72	%		1.99	%		2.17	%
Net interest margin		4.65	%		4.61	%		3.80	%
Efficiency ratio ⁽¹⁾		55.60	%		57.36	%		68.38	%
Adjusted efficiency ratio ⁽¹⁾		55.60	%		55.95	%		65.88	%

	As of
	March 31, 2025			December 31, 2024
	($ in thousands except share and per share data)
CAPITAL
Tangible equity to tangible assets ⁽¹⁾		10.34	%		9.69	%
Book value (BV) per common share	$	16.40		$	15.86
Tangible BV per common share ⁽¹⁾	$	12.29		$	11.71

ASSET QUALITY
Allowance for loan losses (ALL)	$	45,839		$	50,540
Reserve for unfunded loan commitments	$	2,485		$	3,103
Allowance for credit losses (ACL)	$	48,324		$	53,643
Allowance for loan losses to nonperforming loans		2.01	x		1.90	x
ALL to total loans held for investment		1.49	%		1.61	%
ACL to total loans held for investment		1.57	%		1.71	%
30-89 days past due, excluding nonaccrual loans	$	5,103		$	12,082
Over 90 days past due, excluding nonaccrual loans	$	45		$	150
Special mention loans	$	74,421		$	69,339
Special mention loans to total loans held for investment		2.43	%		2.21	%
Substandard loans	$	111,786		$	117,598
Substandard loans to total loans held for investment		3.64	%		3.75	%
Nonperforming loans	$	22,825		$	26,536
Nonperforming loans to total loans held for investment		0.74	%		0.85	%
Other real estate owned, net	$	4,083		$	4,083
Nonperforming assets	$	26,908		$	30,619
Nonperforming assets to total assets		0.68	%		0.76	%

END OF PERIOD BALANCES
Total loans, including loans held for sale	$	3,073,399		$	3,156,345
Total assets	$	3,983,090		$	4,031,654
Deposits	$	3,342,503		$	3,398,760
Loans to deposits		91.9	%		92.9	%
Shareholders’ equity	$	531,384		$	511,836

(1) Non-GAAP measure. See – GAAP to Non-GAAP reconciliation.

	At or for the Three Months Ended
ALLOWANCE for CREDIT LOSSES	March 31, 2025			December 31, 2024			March 31, 2024
	($ in thousands)
Allowance for loan losses
Balance at beginning of period	$	50,540		$	53,552		$	22,569
Reversal of credit losses		(3,158	)		(2,867	)		(314	)
Charge-offs		(3,159	)		(154	)		(1	)
Recoveries		1,616			9			—
Net charge-offs		(1,543	)		(145	)		(1	)
Balance, end of period	$	45,839		$	50,540		$	22,254
Reserve for unfunded loan commitments ⁽¹⁾
Balance, beginning of period	$	3,103		$	4,071		$	933
Reversal of credit losses		(618	)		(968	)		(17	)
Balance, end of period		2,485			3,103			916
Allowance for credit losses	$	48,324		$	53,643		$	23,170

ALL to total loans held for investment		1.49	%		1.61	%		1.18	%
ACL to total loans held for investment		1.57	%		1.71	%		1.23	%
Net charge-offs to average total loans		(0.20	)%		(0.02	)%		0.00	%

(1) Included in “Accrued interest and other liabilities” on the consolidated balance sheet.

California BanCorp and Subsidiary
Balance Sheets (Unaudited)

	March 31, 2025			December 31, 2024
	($ in thousands)
ASSETS
Cash and due from banks	$	80,441		$	60,471
Federal funds sold & interest-bearing balances		358,800			327,691
Total cash and cash equivalents		439,241			388,162

Debt securities available-for-sale, at fair value (amortized cost of $137,855, and $151,429 at March 31, 2025 and December 31, 2024)		131,593			142,001
Debt securities held-to-maturity, at cost (fair value of $47,329 and $47,823 at March 31, 2025 and December 31, 2024)		53,194			53,280
Loans held for sale		4,625			17,180
Loans held for investment:
Construction & land development		221,437			227,325
1-4 family residential		157,442			164,401
Multifamily		237,896			243,993
Other commercial real estate		1,755,962			1,767,727
Commercial & industrial		672,468			710,970
Other consumer		23,569			24,749
Total loans held for investment		3,068,774			3,139,165
Allowance for credit losses – loans		(45,839	)		(50,540	)
Total loans held for investment, net		3,022,935			3,088,625

Restricted stock at cost		30,845			30,829
Premises and equipment		13,154			13,595
Right of use asset		13,384			14,350
Other real estate owned, net		4,083			4,083
Goodwill		111,780			111,787
Intangible assets		21,323			22,271
Bank owned life insurance		66,867			66,636
Deferred taxes, net		36,473			43,127
Accrued interest and other assets		33,593			35,728
Total assets	$	3,983,090		$	4,031,654

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Noninterest-bearing demand	$	1,292,689		$	1,257,007
Interest-bearing NOW accounts		674,460			673,589
Money market and savings accounts		1,192,960			1,182,927
Time deposits		182,394			285,237
Total deposits		3,342,503			3,398,760

Borrowings		70,308			69,725
Operating lease liability		17,142			18,310
Accrued interest and other liabilities		21,753			33,023
Total liabilities		3,451,706			3,519,818

Shareholders’ Equity:
Common stock – 50,000,000 shares authorized, no par value; issued and outstanding 32,402,140 and 32,265,935 at March 31, 2025 and December 31, 2024		442,934			442,469
Retained earnings		92,861			76,008
Accumulated other comprehensive loss – net of taxes		(4,411	)		(6,641	)
Total shareholders’ equity		531,384			511,836
Total liabilities and shareholders’ equity	$	3,983,090		$	4,031,654

California BanCorp and Subsidiary
Income Statements – Quarterly and Year-to-Date (Unaudited)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	($ in thousands except share and per share data)
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	50,686		$	54,791		$	28,584
Interest on debt securities		1,524			1,698			1,213
Interest on tax-exempted debt securities		305			305			306
Interest and dividends from other institutions		4,310			5,764			1,161
Total interest and dividend income		56,825			62,558			31,264

INTEREST EXPENSE
Interest on NOW, savings, and money market accounts		11,116			12,447			6,770
Interest on time deposits		2,063			4,179			3,021
Interest on borrowings		1,391			1,391			979
Total interest expense		14,570			18,017			10,770
Net interest income		42,255			44,541			20,494
Reversal of credit losses ⁽¹⁾		(3,776	)		(3,835	)		(331	)
Net interest income after reversal of credit losses		46,031			48,376			20,825

NONINTEREST INCOME
Service charges and fees on deposit accounts		1,186			911			525
Gain (loss) on sale of loans		577			(1,095	)		415
Bank owned life insurance income		463			823			261
Servicing and related income on loans		142			157			73
Other charges and fees		199			208			139
Total noninterest income		2,566			1,004			1,413

NONINTEREST EXPENSE
Salaries and employee benefits		15,864			16,074			9,610
Occupancy and equipment expenses		2,152			2,314			1,452
Data processing		1,935			1,960			1,150
Legal, audit and professional		859			817			516
Regulatory assessments		722			436			387
Director and shareholder expenses		404			458			203
Merger and related expenses		—			643			549
Intangible assets amortization		948			1,060			65
Other real estate owned expense		68			220			88
Other expense		1,968			2,143			961
Total noninterest expense		24,920			26,125			14,981
Income before income taxes		23,677			23,255			7,257
Income tax expense		6,824			6,483			2,322
Net income	$	16,853		$	16,772		$	4,935

Net income per share – basic	$	0.52		$	0.52		$	0.27
Net income per share – diluted	$	0.52		$	0.51		$	0.26
Weighted average common shares-diluted		32,698,227			32,698,714			18,801,716
Pre-tax, pre-provision income ⁽²⁾	$	19,901		$	19,420		$	6,926

(1) Included reversal of credit losses on unfunded loan commitments of $618 thousand, $968.0 thousand and $17 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
(2) Non-GAAP measure. See — GAAP to Non-GAAP reconciliation.

California BanCorp and Subsidiary
Average Balance Sheets and Yield Analysis
(Unaudited)

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
	Average Balance		Income/ Expense		Yield/ Cost			Average Balance		Income/ Expense		Yield/ Cost			Average Balance		Income/ Expense		Yield/ Cost
	($ in thousands)
Assets
Interest-earning assets:
Total loans	$	3,109,722	$	50,686		6.61	%	$	3,184,918	$	54,791		6.84	%	$	1,909,271	$	28,584		6.02	%
Taxable debt securities		139,481		1,524		4.43	%		147,895		1,698		4.57	%		126,803		1,213		3.85	%
Tax-exempt debt securities ⁽¹⁾		53,522		305		2.93	%		53,607		305		2.87	%		53,842		306		2.89	%
Deposits in other financial institutions		316,582		3,468		4.44	%		422,032		5,123		4.83	%		54,056		716		5.33	%
Fed funds sold/resale agreements		30,413		335		4.47	%		3,353		38		4.51	%		9,771		134		5.52	%
Restricted stock investments and other bank stock		31,657		507		6.50	%		30,341		603		7.91	%		16,412		311		7.62	%
Total interest-earning assets		3,681,377		56,825		6.26	%		3,842,146		62,558		6.48	%		2,170,155		31,264		5.79	%
Total noninterest-earning assets		318,132							326,601							139,672
Total assets	$	3,999,509						$	4,168,747						$	2,309,827

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing NOW accounts	$	735,209	$	3,366		1.86	%	$	704,017	$	3,784		2.14	%	$	359,784	$	2,045		2.29	%
Money market and savings accounts		1,161,960		7,750		2.70	%		1,192,692		8,663		2.89	%		648,640		4,725		2.93	%
Time deposits		207,519		2,063		4.03	%		359,111		4,179		4.63	%		255,474		3,021		4.76	%
Total interest-bearing deposits		2,104,688		13,179		2.54	%		2,255,820		16,626		2.93	%		1,263,898		9,791		3.12	%
Borrowings:
FHLB advances		—		—		—	%		—		—		—	%		50,593		708		5.63	%
Subordinated debt		70,027		1,391		8.06	%		69,420		1,391		7.97	%		17,878		271		6.10	%
Total borrowings		70,027		1,391		8.06	%		69,420		1,391		7.97	%		68,471		979		5.75	%
Total interest-bearing liabilities		2,174,715		14,570		2.72	%		2,325,240		18,017		3.08	%		1,332,369		10,770		3.25	%

Noninterest-bearing liabilities:
Noninterest-bearing deposits ⁽²⁾		1,255,883							1,283,591							661,265
Other liabilities		50,368							55,007							26,430
Shareholders’ equity		518,543							504,909							289,763
Total Liabilities and Shareholders’ Equity	$	3,999,509						$	4,168,747						$	2,309,827

Net interest spread						3.54	%						3.40	%						2.54	%
Net interest income and margin			$	42,255		4.65	%			$	44,541		4.61	%			$	20,494		3.80	%
Cost of deposits	$	3,360,571	$	13,179		1.59	%	$	3,539,411	$	16,626		1.87	%	$	1,925,163	$	9,791		2.05	%
Cost of funds	$	3,430,598	$	14,570		1.72	%	$	3,608,831	$	18,017		1.99	%	$	1,993,634	$	10,770		2.17	%

(1) Tax-exempt debt securities yields are presented on a tax equivalent basis using a 21% tax rate.
(2) Average noninterest-bearing deposits represent 37.37%, 36.27% and 34.35% of average total deposits for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

California BanCorp and Subsidiary
GAAP to Non-GAAP Reconciliation
(Unaudited)

The following tables present a reconciliation of non-GAAP financial measures to GAAP measures for: (1) adjusted net income (loss), (2) efficiency ratio, (3) adjusted efficiency ratio, (4) pre-tax pre-provision income, (5) adjusted pre-tax pre-provision income, (6) average tangible common equity, (7) adjusted return on average assets, (8) adjusted return on average equity, (9) return on average tangible common equity, (10) adjusted return on average tangible common equity, (11) tangible common equity, (12) tangible assets, (13) tangible common equity to tangible asset ratio, and (14) tangible book value per common share. We believe the presentation of certain non-GAAP financial measures provides useful information to assess our consolidated financial condition and consolidated results of operations and to assist investors in evaluating our financial results relative to our peers. These non-GAAP financial measures complement our GAAP reporting and are presented below to provide investors and others with information that we use to manage the business each period. Because not all companies use identical calculations, the presentation of these non-GAAP financial measures may not be comparable to other similarly titled measures used by other companies. These non-GAAP measures should be taken together with the corresponding GAAP measures and should not be considered a substitute of the GAAP measures.

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	($ in thousands)
Adjusted net income
Net income	$	16,853		$	16,772		$	4,935
Add: After-tax merger and related expenses ⁽¹⁾		—			453			547
Adjusted net income (non-GAAP)	$	16,853		$	17,225		$	5,482

Efficiency Ratio
Noninterest expense	$	24,920		$	26,125		$	14,981
Deduct: Merger and related expenses		—			643			549
Adjusted noninterest expense		24,920			25,482			14,432

Net interest income		42,255			44,541			20,494
Noninterest income		2,566			1,004			1,413
Total net interest income and noninterest income	$	44,821		$	45,545		$	21,907
Efficiency ratio (non-GAAP)		55.6	%		57.4	%		68.4	%
Adjusted efficiency ratio (non-GAAP)		55.6	%		55.9	%		65.9	%

Pre-tax pre-provision income
Net interest income	$	42,255		$	44,541		$	20,494
Noninterest income		2,566			1,004			1,413
Total net interest income and noninterest income		44,821			45,545			21,907
Less: Noninterest expense		24,920			26,125			14,981
Pre-tax pre-provision income (non-GAAP)		19,901			19,420			6,926
Add: Merger and related expenses		—			643			549
Adjusted pre-tax pre-provision income (non-GAAP)	$	19,901		$	20,063		$	7,475

(1) After-tax merger and related expenses are presented using a 29.56% tax rate.

Return on Average Assets, Equity, and Tangible Equity
Net income	$	16,853		$	16,772		$	4,935
Adjusted net income (non-GAAP)	$	16,853		$	17,225		$	5,482

Average assets	$	3,999,509		$	4,168,747		$	2,309,827
Average shareholders’ equity		518,543			504,909			289,763
Less: Average intangible assets		133,567			135,064			38,964
Average tangible common equity (non-GAAP)	$	384,976		$	369,845		$	250,799

Return on average assets		1.71	%		1.60	%		0.86	%
Adjusted return on average assets (non-GAAP)		1.71	%		1.64	%		0.95	%
Return on average equity		13.18	%		13.21	%		6.85	%
Adjusted return on average equity (non-GAAP)		13.18	%		13.57	%		7.61	%
Return on average tangible common equity (non-GAAP)		17.75	%		18.04	%		7.91	%
Adjusted return on average tangible common equity (non-GAAP)		17.75	%		18.53	%		8.79	%

	March 31, 2025			December 31, 2024
	($ in thousands except share and per share data)
Tangible Common Equity Ratio/Tangible Book Value Per Share
Shareholders’ equity	$	531,384		$	511,836
Less: Intangible assets		133,103			134,058
Tangible common equity (non-GAAP)	$	398,281		$	377,778

Total assets	$	3,983,090		$	4,031,654
Less: Intangible assets		133,103			134,058
Tangible assets (non-GAAP)	$	3,849,987		$	3,897,596

Equity to asset ratio		13.34	%		12.70	%
Tangible common equity to tangible asset ratio (non-GAAP)		10.34	%		9.69	%
Book value per share	$	16.40		$	15.86
Tangible book value per share (non-GAAP)	$	12.29		$	11.71
Shares outstanding		32,402,140			32,265,935

INVESTOR RELATIONS CONTACT
Kevin Mc Cabe
California Bank of Commerce, N.A.
kmccabe@bankcbc.com
818.637.7065

The MIL Network –

April 25, 2025

MIL-OSI: Independent Bank Corporation Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Highlights

Highlights for the first quarter of 2025 include:

Increase in net interest income of $0.8 million (or 1.9% ) over the fourth quarter of 2024;
Increase in tangible book value per share of $2.43 (13.2%) from March 31, 2024;
Net growth in core deposits of $9.1 million (or 0.8% annualized) from December 31, 2024;
Net growth in loans of $33.9 million (or 3.4% annualized) from December 31, 2024; and
The payment of a 26 cent per share dividend on common stock on February 14, 2025.

GRAND RAPIDS, Mich., April 24, 2025 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported first quarter 2025 net income of $15.6 million, or $0.74 per diluted share, versus net income of $16.0 million, or $0.76 per diluted share, in the prior-year period.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “I am proud of our team and very pleased to see us continue our positive trends with our first quarter 2025 results. Overall loans increased 3.4% (annualized), while core deposits are up 0.8% (annualized). We were able to generate net interest income growth on both a linked quarter basis and on a year over year quarterly basis and produce four basis points in margin expansion. We believe that our expenses continue to be well managed, and we continue to see improved operational scale from strategic investments we have made in recent years. These fundamentals continue to drive positive growth in tangible book value per share (13.2%) compared to the prior year quarter. Our credit metrics continue to be very good, with a low level of watch credits, 14 basis points of non-performing assets to total assets, and 0.01% net charge-offs for the quarter to average loans annualized. The allowance for credit losses, factoring in the recent market uncertainty, was 1.47% of total loans. We are staying in close contact with our client base during this volatile period and keeping abreast of what they are experiencing and how they are adjusting if needed. Based on a robust commercial loan pipeline, the past record of our core group of professionals and the ongoing strategic initiative to add talented bankers to our team, we continue to be focused on what we can control and optimistic on the long-term future of the IBC franchise.”

Significant items impacting comparable first quarter 2025 and 2024 results include the following:

Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of $(1.5) million ($(0.06) per diluted share, after taxes) for the three-month period ended March 31, 2025, as compared to $1.3 million ($0.05 per diluted share, after taxes) for the three-months ended March 31, 2024.

Operating Results

The Company’s net interest income totaled $43.7 million during the first quarter of 2025, an increase of $3.5 million, or 8.7% from the year-ago period, and an increase of $0.8 million, or 1.9%, from the fourth quarter of 2024. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.49% during the first quarter of 2025, compared to 3.30% in the year-ago period, and 3.45% in the fourth quarter of 2024. The year-over-year and linked quarterly increase in net interest income was due to an increase in average interest-earning assets and the net interest margin. Average interest-earning assets were $5.08 billion in the first quarter of 2025, compared to $4.91 billion in the year ago quarter and $5.01 billion in the fourth quarter of 2024.

Non-interest income totaled $10.4 million for the first quarter of 2025, compared to $12.6 million in the comparable prior year period. This change was primarily due to variances in mortgage banking related revenues.

Net gains on mortgage loans in the first quarters of 2025 and 2024 were approximately $2.3 million and $1.4 million, respectively. The comparative quarterly increase in net gains on mortgage loans was primarily due to an increase in both gain on sale margin on mortgage loans sold and an increase in the volume of mortgage loans sold.

Mortgage loan servicing, net, generated income (expense) of $(0.6) million and $2.7 million in the first quarters of 2025 and 2024, respectively. The significant variance in mortgage loan servicing, net is primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in interest rates and the associated expected future prepayment levels and expected float rates as well as a decline in servicing revenue. The decline in servicing revenue is attributed to the sale of approximately $931 million of mortgage servicing rights on January 31, 2025. Capitalized mortgage loan servicing rights totaled $32.2 million and $46.8 million at March 31, 2025 and December 31, 2024, respectively. The decline during the first quarter was primarily attributed to aforementioned mortgage servicing right sale. This transaction was executed in part to reduce the amount of exposure the bank had to rate variances that may impact the mortgage servicing right asset valuation in future periods. While the magnitude of fair value adjustments would also be expected to decrease, those adjustments are dependent upon factors that are harder to predict.

Mortgage loan servicing, net activity is summarized in the following table:

	Three months ended
	3/31/2025			3/31/2024
	(In thousands)
Mortgage loan servicing, net:
Revenue, net	$	1,882		$	2,219
Fair value change due to price		(1,533	)		1,265
Fair value change due to pay-downs		(891	)		(759	)
Loss on sale of originated servicing rights		(94	)		—
Total	$	(636	)	$	2,725

Non-interest expenses totaled $34.3 million in the first quarter of 2025, compared to $32.2 million in the year-ago period.

The Company recorded income tax expense of $3.5 million in the first quarter of 2025. This compares to an income tax expense of $3.8 million in the first quarter of 2024. The change in income tax expense principally reflects changes in pre-tax earnings in 2025 relative to 2024.

Asset Quality

A breakdown of non-performing loans by loan type is as follows (1):

	3/31/2025			12/31/2024			3/31/2024
Loan Type	(Dollars in thousands)
Commercial	$	127		$	54		$	25
Mortgage		8,080			7,005			4,620
Installment		819			733			710
Sub total		9,026			7,792			5,355
Less – government guaranteed loans		1,940			1,790			1,665
Total non-performing loans	$	7,086		$	6,002		$	3,690
Ratio of non-performing loans to total portfolio loans		0.17	%		0.15	%		0.10	%
Ratio of non-performing assets to total assets		0.14	%		0.13	%		0.09	%
Ratio of allowance for credit losses to total non-performing loans		847.23	%		989.32	%		1526.10	%

^{(1) Non performing loans include non-accrual loans and loans 90 days or more past due and still accruing interest.}

The provision for credit losses was an expense of $0.72 million and $0.74 million in the first quarters of 2025 and 2024, respectively. We recorded loan net charge offs of $0.07 million and $0.22 million in the first quarters of 2025 and 2024, respectively. At March 31, 2025, the allowance for credit losses for loans totaled $60.0 million, or 1.47% of total portfolio loans compared to $59.4 million, or 1.47% of total portfolio loans at December 31, 2024.

Balance Sheet, Capital and Liquidity

Total assets were $5.33 billion at March 31, 2025, a decrease of $9.7 million from December 31, 2024. Loans, excluding loans held for sale, were $4.07 billion at March 31, 2025, compared to $4.04 billion at December 31, 2024. Deposits totaled $4.63 billion at March 31, 2025, a decrease of $20.2 million from December 31, 2024. This decrease is primarily due to decreases in non-interest bearing deposits and brokered time deposits that were partially offset by increases in savings and interest-bearing checking, reciprocal and time deposits.

Cash and cash equivalents totaled $128.1 million at March 31, 2025, versus $119.9 million at December 31, 2024. Securities available for sale (“AFS”) totaled $529.7 million at March 31, 2025, versus $559.2 million at December 31, 2024.

Total shareholders’ equity was $467.3 million at March 31, 2025, or 8.77% of total assets compared to $454.7 million or 8.52% at December 31, 2024. Tangible common equity totaled $437.6 million at March 31, 2025, or $20.87 per share compared to $424.9 million or $20.33 per share at December 31, 2024. The increase in shareholder equity as well as tangible common equity are primarily the result of earnings retention and a decrease in accumulated other comprehensive loss.

The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios	3/31/2025		12/31/2024		Well Capitalized Minimum

Tier 1 capital to average total assets	9.56	%	9.58	%	5.00	%
Tier 1 common equity to risk-weighted assets	11.93	%	11.74	%	6.50	%
Tier 1 capital to risk-weighted assets	11.93	%	11.74	%	8.00	%
Total capital to risk-weighted assets	13.19	%	12.99	%	10.00	%

At March 31, 2025, in addition to liquidity available from our normal operating, funding, and investing activities, we had unused credit lines with the FHLB and FRB of approximately $1.10 billion and $486.1 million, respectively. We also had approximately $501.0 million in fair value of unpledged securities AFS and HTM at March 31, 2025 which could be pledged for an estimated additional borrowing capacity at the FHLB and FRB of approximately $469.7 million.

Share Repurchase Plan

On December 17, 2024, the Board of Directors of the Company authorized the 2025 share repurchase plan. Under the terms of the 2025 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its then outstanding common stock. The repurchase plan is authorized to last through December 31, 2025. During the three month period ended March 31, 2025, there were 1,093 shares of common stock repurchased, for an aggregate purchase price of $0.03 million. Subsequent to quarter end, from April 3, 2025 through April 22, 2025, there were 249,482 additional shares of common stock repurchased, for an aggregate purchase price of $7.2 million.

Earnings Conference Call

Brad Kessel, President and CEO, Gavin Mohr, CFO and Joel Rahn, EVP – Commercial Banking will review the quarterly results in a conference call for investors and analysts beginning at 11:00 am ET on Thursday, April 24, 2025.

To participate in the live conference call, please dial 1-833-470-1428 (Access Code # 706949). Also, the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://events.q4inc.com/attendee/106805636.

A playback of the call can be accessed by dialing 1-866-813-9403 (Access Code # 746507). The replay will be available through May 1, 2025.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $5.3 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, consumer banking, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Forward-Looking Statements
This presentation contains forward-looking statements, which are any statements or information that are not historical facts. These forward-looking statements include statements about our anticipated future revenue and expenses and our future plans and prospects.

Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. For example, deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect our revenues and the values of our assets and liabilities, reduce the availability of funding to us, lead to a tightening of credit, and increase stock price volatility. Our results could also be adversely affected by changes in interest rates; increases in unemployment rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of our investment securities; legal and regulatory developments; changes in customer behavior and preferences; breaches in data security; and management’s ability to effectively manage the multitude of risks facing our business. Key risk factors that could affect our future results are described in more detail in our Annual Report on Form 10-K for the year ended December 31, 2024 and the other reports we file with the SEC, including under the heading “Risk Factors.” Investors should not place undue reliance on forward-looking statements as a prediction of our future results.

Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Financial Condition

	March 31, 2025			December 31, 2024
	(Unaudited)
	(In thousands, except share amounts)
Assets
Cash and due from banks	$	60,566		$	56,984
Interest bearing deposits		67,579			62,898
Cash and Cash Equivalents		128,145			119,882
Securities available for sale		529,676			559,182
Securities held to maturity (fair value of $302,579 at March 31, 2025 and $301,860 at December 31, 2024)		336,928			339,436
Federal Home Loan Bank and Federal Reserve Bank stock, at cost		15,587			16,099
Loans held for sale, carried at fair value		9,514			7,643
Loans
Commercial		1,992,187			1,937,364
Mortgage		1,512,807			1,516,726
Installment		567,697			584,735
Total Loans		4,072,691			4,038,825
Allowance for credit losses		(60,035	)		(59,379	)
Net Loans		4,012,656			3,979,446
Other real estate and repossessed assets, net		413			938
Property and equipment, net		37,369			37,492
Bank-owned life insurance		53,721			53,855
Capitalized mortgage loan servicing rights, carried at fair value		32,171			46,796
Other intangibles		1,366			1,488
Goodwill		28,300			28,300
Accrued income and other assets		142,582			147,547
Total Assets	$	5,328,428		$	5,338,104
Liabilities and Shareholders’ Equity
Deposits
Non-interest bearing	$	989,928		$	1,013,647
Savings and interest-bearing checking		2,017,800			1,995,314
Reciprocal		910,526			907,031
Time		635,172			628,285
Brokered time		80,505			109,811
Total Deposits		4,633,931			4,654,088
Other borrowings		45,014			45,009
Subordinated debt		39,605			39,586
Subordinated debentures		39,813			39,796
Accrued expenses and other liabilities		102,788			104,939
Total Liabilities		4,861,151			4,883,418

Shareholders’ Equity
Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding		—			—
Common stock, no par value, 500,000,000 shares authorized; issued and outstanding: 20,970,115 shares at March 31, 2025 and 20,895,714 shares at December 31, 2024		318,365			318,777
Retained earnings		215,995			205,853
Accumulated other comprehensive loss		(67,083	)		(69,944	)
Total Shareholders’ Equity		467,277			454,686
Total Liabilities and Shareholders’ Equity	$	5,328,428		$	5,338,104

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations

	Three Months Ended
		March 31, 2025			December 31, 2024			March 31, 2024
	(Unaudited)
Interest Income	(In thousands, except per share amounts)
Interest and fees on loans	$	57,768		$	58,346		$	55,043
Interest on securities
Taxable		4,036			4,417			5,251
Tax-exempt		2,770			2,905			3,391
Other investments		1,570			1,310			1,441
Total Interest Income		66,144			66,978			65,126
Interest Expense
Deposits		20,955			22,546			22,810
Other borrowings and subordinated debt and debentures		1,504			1,581			2,119
Total Interest Expense		22,459			24,127			24,929
Net Interest Income		43,685			42,851			40,197
Provision for credit losses		721			2,217			744
Net Interest Income After Provision for Credit Losses		42,964			40,634			39,453
Non-interest Income
Interchange income		3,127			3,294			3,151
Service charges on deposit accounts		2,814			2,976			2,872
Net gains (losses) on assets
Mortgage loans		2,303			1,705			1,364
Securities available for sale		(330	)		(14	)		(269	)
Mortgage loan servicing, net		(636	)		7,761			2,725
Other		3,146			3,399			2,718
Total Non-interest Income		10,424			19,121			12,561
Non-interest Expense
Compensation and employee benefits		20,383			22,886			20,770
Data processing		3,729			3,688			3,255
Occupancy, net		2,223			1,953			2,074
Interchange expense		1,119			1,131			1,097
Furniture, fixtures and equipment		885			928			954
Advertising		861			1,198			491
Loan and collection		786			606			512
FDIC deposit insurance		711			729			782
Communications		591			462			615
Legal and professional		479			849			486
Costs (recoveries) related to unfunded lending commitments		196			303			(652	)
Other		2,299			2,254			1,809
Total Non-interest Expense		34,262			36,987			32,193
Income Before Income Tax		19,126			22,768			19,821
Income tax expense		3,536			4,307			3,830
Net Income	$	15,590		$	18,461		$	15,991
Net Income Per Common Share
Basic	$	0.74		$	0.88		$	0.77
Diluted	$	0.74		$	0.87		$	0.76

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(unaudited)
	(Dollars in thousands except per share data)
Three Months Ended
Net interest income	$	43,685		$	42,851		$	41,854		$	41,346		$	40,197
Provision for credit losses		721			2,217			1,488			19			744
Non-interest income		10,424			19,121			9,508			15,172			12,561
Non-interest expense		34,262			36,987			32,583			33,333			32,193
Income before income tax		19,126			22,768			17,291			23,166			19,821
Income tax expense		3,536			4,307			3,481			4,638			3,830
Net income	$	15,590		$	18,461		$	13,810		$	18,528		$	15,991

Basic earnings per share	$	0.74		$	0.88		$	0.66		$	0.89		$	0.77
Diluted earnings per share		0.74			0.87			0.65			0.88			0.76
Cash dividend per share		0.26			0.24			0.24			0.24			0.24

Average shares outstanding		20,943,094			20,893,820			20,896,019			20,901,741			20,877,067
Average diluted shares outstanding		21,150,550			21,122,096			21,115,273			21,105,387			21,079,607

Performance Ratios
Return on average assets		1.18	%		1.39	%		1.04	%		1.44	%		1.24	%
Return on average equity		13.71			16.31			12.54			17.98			15.95
Efficiency ratio (1)		62.20			59.09			62.82			61.49			60.26

As a Percent of Average Interest-Earning Assets (1)
Interest income		5.28	%		5.37	%		5.48	%		5.45	%		5.34	%
Interest expense		1.79			1.92			2.11			2.05			2.04
Net interest income		3.49			3.45			3.37			3.40			3.30

Average Balances
Loans	$	4,060,941		$	3,994,661		$	3,909,954		$	3,849,199		$	3,810,526
Securities		883,676			912,073			933,750			944,435			999,140
Total earning assets		5,078,596			5,007,566			4,985,842			4,893,367			4,910,669
Total assets		5,378,022			5,300,368			5,275,623			5,181,317			5,201,452
Deposits		4,715,331			4,655,091			4,616,119			4,531,917			4,561,645
Interest bearing liabilities		3,799,852			3,717,483			3,689,684			3,611,972			3,627,446
Shareholders’ equity		461,291			450,214			438,077			414,549			403,225

(1) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES Selected Financial Data (continued)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(unaudited)
	(Dollars in thousands except per share data)
End of Period
Capital
Tangible common equity ratio		8.26	%		8.00	%		8.08	%		7.63	%		7.41	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.31			9.10			8.99			8.76			8.57
Average equity to average assets		8.58			8.49			8.30			8.00			7.75
Total capital to risk-weighted assets (2)		14.51			14.22			14.25			14.21			13.85
Tier 1 capital to risk-weighted assets (2)		12.34			12.06			12.06			12.01			11.65
Common equity tier 1 capital to risk-weighted assets (2)		11.46			11.17			11.16			11.09			10.73
Tier 1 capital to average assets (2)		9.88			9.85			9.63			9.59			9.29
Common shareholders’ equity per share of common stock	$	22.28		$	21.76		$	21.65		$	20.60		$	19.88
Tangible common equity per share of common stock		20.87			20.33			20.22			19.16			18.44
Total shares outstanding		20,970,115			20,895,714			20,893,800			20,899,358			20,903,677

Selected Balances
Loans	$	4,072,691		$	4,038,825		$	3,942,287		$	3,851,889		$	3,839,965
Securities		866,604			898,618			932,312			936,194			963,577
Total earning assets		5,031,975			5,024,083			4,964,784			4,979,555			4,949,496
Total assets		5,328,428			5,338,104			5,259,268			5,277,500			5,231,255
Deposits		4,633,931			4,654,088			4,626,875			4,614,328			4,582,414
Interest bearing liabilities		3,768,435			3,764,832			3,682,482			3,694,025			3,677,060
Shareholders’ equity		467,277			454,686			452,369			430,459			415,570

(2) March 31, 2025 are Preliminary.

Reconciliation of Non-GAAP Financial Measures
Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended March 31,
		2025			2024
	(Dollars in thousands)
Net Interest Margin, Fully Taxable Equivalent (“FTE”)

Net interest income	$	43,685		$	40,197
Add: taxable equivalent adjustment		452			180
Net interest income – taxable equivalent	$	44,137		$	40,377
Net interest margin (GAAP) (1)		3.46	%		3.28	%
Net interest margin (FTE) (1)		3.49	%		3.30	%

(1) Annualized.

Tangible Common Equity Ratio

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in thousands)
Common shareholders’ equity	$	467,277		$	454,686		$	452,369		$	430,459		$	415,570
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,366			1,488			1,617			1,746			1,875
Tangible common equity		437,611			424,898			422,452			400,413			385,395
Addition:
Accumulated other comprehensive loss for regulatory purposes		61,285			64,146			52,454			65,030			65,831
Tangible common equity excluding accumulated other comprehensive loss adjustments	$	498,896		$	489,044		$	474,906		$	465,443		$	451,226

Total assets	$	5,328,428		$	5,338,104		$	5,259,268		$	5,277,500		$	5,231,255
Less:
Goodwill		28,300			28,300			28,300			28,300			28,300
Other intangibles		1,366			1,488			1,617			1,746			1,875
Tangible assets		5,298,762			5,308,316			5,229,351			5,247,454			5,201,080
Addition:
Net unrealized losses on available for sale securities and derivatives, net of tax		61,285			64,146			52,454			65,030			65,831
Tangible assets excluding accumulated other comprehensive loss adjustments	$	5,360,047		$	5,372,462		$	5,281,805		$	5,312,484		$	5,266,911

Common equity ratio		8.77	%		8.52	%		8.60	%		8.16	%		7.94	%
Tangible common equity ratio		8.26	%		8.00	%		8.08	%		7.63	%		7.41	%
Tangible common equity ratio excluding accumulated other comprehensive loss		9.31	%		9.10	%		8.99	%		8.76	%		8.57	%

Tangible Common Equity per Share of Common Stock:

Common shareholders’ equity	$	467,277		$	454,686		$	452,369		$	430,459		$	415,570
Tangible common equity	$	437,611		$	424,898		$	422,452		$	400,413		$	385,395
Shares of common stock outstanding (in thousands)		20,970			20,896			20,894			20,899			20,904

Common shareholders’ equity per share of common stock	$	22.28		$	21.76		$	21.65		$	20.60		$	19.88
Tangible common equity per share of common stock	$	20.87		$	20.33		$	20.22		$	19.16		$	18.44

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

Contact:

William B. Kessel, President and CEO, 616.447.3933
Gavin A. Mohr, Chief Financial Officer, 616.447.3929

The MIL Network –

April 25, 2025

MIL-OSI: First Merchants Corporation Announces First Quarter 2025 Earnings Per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., April 24, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

First Quarter 2025 Highlights:

Net income available to common stockholders was $54.9 million and diluted earnings per common share totaled $0.94 compared to adjusted net income and diluted earnings per common share¹of $50.1 million and $0.85 in the first quarter of 2024. Adjusted net income and diluted earnings per common share¹in the fourth quarter of 2024 were $58.1 million and $1.00, respectively.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.50%.
Repurchased 246,751 shares totaling $10 million year-to-date; Redeemed $30 million of sub debt.
Total loans grew $154.9 million, or 4.8% annualized, on a linked quarter basis, and $547.2 million, or 4.4%, during the last twelve months.
Total deposits declined $59.6 million, or 1.6% annualized, on a linked quarter basis, and declined $422.6 million, or 2.8%, during the last twelve months primarily due to the sale of five Illinois branches with $267.4 million in deposits to Old Second National Bank on December 6, 2024.
Nonperforming assets to total assets were 47 basis points compared to 43 basis points on a linked quarter basis.
The efficiency ratio totaled 54.54% for the quarter.

“The first quarter was a strong start to the year with healthy loan growth and increasing profitability,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “Our 2025 priorities continue to focus on organic loan growth funded by low-cost core deposits, margin stabilization, fee income growth, expense management and credit quality. Given the market volatility and headlines, we are closely monitoring our clients and our markets but have yet to see any signs of stress.”

First Quarter Financial Results:

First Merchants Corporation (the “Corporation”) reported first quarter 2025 net income available to common stockholders of $54.9 million compared to adjusted net income available to common stockholders¹ of $50.1 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.94 compared to the first quarter of 2024 adjusted diluted earnings per common share¹ of $0.85 per share.

Total assets equaled $18.4 billion as of quarter-end and loans totaled $13.0 billion. During the past twelve months, total loans grew by $547.2 million, or 4.4%. On a linked quarter basis, loans grew $154.9 million, or 4.8% annualized.

Investment securities, totaling $3.4 billion, decreased $356.5 million, or 9.4%, during the last twelve months and decreased $33.6 million, or 3.9% annualized on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

Total deposits equaled $14.5 billion as of quarter-end and decreased by $422.6 million, or 2.8%, over the past twelve months. The decline reflected the sale of the Illinois branches during the prior quarter which included $267.4 million in deposits. Total deposits decreased $59.6 million, or 1.6% annualized on a linked quarter basis. The loan to deposit ratio increased to 90.1% at period end from 88.6% in the prior quarter.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $192.0 million as of quarter-end, or 1.47% of total loans, a decrease of $0.7 million from prior quarter. Net charge-offs totaled $4.9 million and provision for loans of $4.2 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.47% for the first quarter of 2025, an increase of four basis points compared to 0.43% in the prior quarter.

Net interest income totaled $130.3 million for the quarter, a decrease of $4.1 million, or 3.1%, compared to prior quarter and increased $3.2 million, or 2.5%, compared to the first quarter of 2024. Fully taxable equivalent net interest margin was 3.22%, a decrease of six basis points compared to the fourth quarter of 2024 and an increase of 12 basis points compared to the first quarter of 2024. The lower day count in the quarter caused a decline of five basis points in net interest margin from the prior quarter.

Noninterest income totaled $30.0 million for the quarter, a decrease of $12.7 million, compared to the fourth quarter of 2024 and an increase of $3.4 million compared to the first quarter of 2024. Customer-related fees declined by $2.3 million from the previous quarter due to lower derivative hedge fees, gains on sales of mortgage loans and card payment fees. Non-customer-related fees declined $10.4 million from the prior quarter primarily due to the gain on the Illinois branch sale, partially offset by realized losses on the sales of securities recorded in the prior quarter.

Noninterest expense totaled $92.9 million for the quarter, a decrease of $3.4 million from the fourth quarter of 2024 and a decrease of $4.0 million from the first quarter of 2024. The decrease from the fourth quarter of 2024 was due primarily to a decline in marketing expenses, and lower professional fees and employee incentives.

The Corporation’s total risk-based capital ratio totaled 13.22%, common equity tier 1 capital ratio totaled 11.50%, and the tangible common equity ratio totaled 8.90%. These ratios continue to demonstrate the Corporation’s strong capital position.

¹ See “Non-GAAP Financial Information” for reconciliation

CONFERENCE CALL

First Merchants Corporation will conduct a fourth quarter earnings conference call and web cast at 11:30 a.m. (ET) on Thursday, April 24, 2025.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI4ae3a07cb07a47258d30e4f3dba2448b)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/uqvoojku) during the time of the call. A replay of the webcast will be available until April 24, 2026.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,
	2025			2024
ASSETS
Cash and due from banks	$	86,113		$	100,514
Interest-bearing deposits		331,534			410,497
Investment securities available for sale		1,378,489			1,620,213
Investment securities held to maturity, net of allowance for credit losses		2,048,632			2,163,361
Loans held for sale		23,004			15,118
Loans		13,004,905			12,465,582
Less: Allowance for credit losses – loans		(192,031	)		(204,681	)
Net loans		12,812,874			12,260,901
Premises and equipment		128,749			132,706
Federal Home Loan Bank stock		45,006			41,758
Interest receivable		88,352			92,550
Goodwill		712,002			712,002
Other intangibles		18,302			25,142
Cash surrender value of life insurance		304,918			306,028
Other real estate owned		4,966			4,886
Tax asset, deferred and receivable		87,665			101,121
Other assets		369,181			331,006
TOTAL ASSETS	$	18,439,787		$	18,317,803
LIABILITIES
Deposits:
Noninterest-bearing	$	2,185,057		$	2,338,364
Interest-bearing		12,276,921			12,546,220
Total Deposits		14,461,978			14,884,584
Borrowings:
Federal funds purchased		185,000			—
Securities sold under repurchase agreements		122,947			130,264
Federal Home Loan Bank advances		972,478			612,778
Subordinated debentures and other borrowings		62,619			118,612
Total Borrowings		1,343,044			861,654
Interest payable		13,304			19,262
Other liabilities		289,247			327,500
Total Liabilities		16,107,573			16,093,000
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding – 57,810,232 and 58,564,819 shares		7,226			7,321
Additional paid-in capital		1,183,263			1,208,447
Retained earnings		1,306,911			1,181,939
Accumulated other comprehensive loss		(190,311	)		(198,029	)
Total Stockholders’ Equity		2,332,214			2,224,803
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,439,787		$	18,317,803


CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended
(Dollars In Thousands, Except Per Share Amounts)	March 31,
	2025			2024
INTEREST INCOME
Loans:
Taxable	$	187,728		$	198,023
Tax-exempt		10,532			8,190
Investment securities:
Taxable		8,372			8,748
Tax-exempt		12,517			13,611
Deposits with financial institutions		2,372			6,493
Federal Home Loan Bank stock		997			835
Total Interest Income		222,518			235,900
INTEREST EXPENSE
Deposits		80,547			98,285
Federal funds purchased		812			—
Securities sold under repurchase agreements		742			1,032
Federal Home Loan Bank advances		9,364			6,773
Subordinated debentures and other borrowings		783			2,747
Total Interest Expense		92,248			108,837
NET INTEREST INCOME		130,270			127,063
Provision for credit losses		4,200			2,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		126,070			125,063
NONINTEREST INCOME
Service charges on deposit accounts		8,072			7,907
Fiduciary and wealth management fees		8,644			8,200
Card payment fees		4,526			4,500
Net gains and fees on sales of loans		5,022			3,254
Derivative hedge fees		404			263
Other customer fees		415			427
Earnings on cash surrender value of life insurance		2,179			1,592
Net realized losses on sales of available for sale securities		(7	)		(2	)
Other income		793			497
Total Noninterest Income		30,048			26,638
NONINTEREST EXPENSES
Salaries and employee benefits		54,982			58,293
Net occupancy		7,216			7,312
Equipment		7,008			6,226
Marketing		1,353			1,198
Outside data processing fees		5,929			6,889
Printing and office supplies		347			353
Intangible asset amortization		1,526			1,957
FDIC assessments		3,648			4,287
Other real estate owned and foreclosure expenses		600			534
Professional and other outside services		3,261			3,952
Other expenses		7,032			5,934
Total Noninterest Expenses		92,902			96,935
INCOME BEFORE INCOME TAX		63,216			54,766
Income tax expense		7,877			6,825
NET INCOME		55,339			47,941
Preferred stock dividends		469			469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	54,870		$	47,472
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.95		$	0.80
Diluted Net Income Available to Common Stockholders	$	0.94		$	0.80
Cash Dividends Paid to Common Stockholders	$	0.35		$	0.34
Tangible Common Book Value Per Share	$	27.34		$	25.07
Average Diluted Common Shares Outstanding (in thousands)		58,242			59,273


FINANCIAL HIGHLIGHTS
(Dollars in thousands)	Three Months Ended
	March 31,
	2025			2024
NET CHARGE-OFFS	$	4,926		$	2,253

AVERAGE BALANCES:
Total Assets	$	18,341,738		$	18,430,521
Total Loans		12,941,353			12,477,066
Total Earning Assets		16,960,475			17,123,851
Total Deposits		14,419,338			14,881,205
Total Stockholders’ Equity		2,340,874			2,242,139

FINANCIAL RATIOS:
Return on Average Assets		1.21	%		1.04	%
Return on Average Stockholders’ Equity		9.38			8.47
Return on Tangible Common Stockholders’ Equity		14.12			13.21
Average Earning Assets to Average Assets		92.47			92.91
Allowance for Credit Losses – Loans as % of Total Loans		1.47			1.64
Net Charge-offs as % of Average Loans (Annualized)		0.15			0.07
Average Stockholders’ Equity to Average Assets		12.76			12.17
Tax Equivalent Yield on Average Earning Assets		5.39			5.65
Interest Expense/Average Earning Assets		2.17			2.55
Net Interest Margin (FTE) on Average Earning Assets		3.22			3.10
Efficiency Ratio		54.54			59.21


NONPERFORMING ASSETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Nonaccrual Loans	$	81,922		$	73,773		$	59,088		$	61,906		$	62,478
Other Real Estate Owned and Repossessions		4,966			4,948			5,247			4,824			4,886
Nonperforming Assets (NPA)		86,888			78,721			64,335			66,730			67,364
90+ Days Delinquent		4,280			5,902			14,105			1,686			2,838
NPAs & 90 Day Delinquent	$	91,168		$	84,623		$	78,440		$	68,416		$	70,202

Allowance for Credit Losses – Loans	$	192,031		$	192,757		$	187,828		$	189,537		$	204,681
Quarterly Net Charge-offs		4,926			771			6,709			39,644			2,253
NPAs / Actual Assets %		0.47	%		0.43	%		0.35	%		0.36	%		0.37	%
NPAs & 90 Day / Actual Assets %		0.49	%		0.46	%		0.43	%		0.37	%		0.38	%
NPAs / Actual Loans and OREO %		0.67	%		0.61	%		0.51	%		0.53	%		0.54	%
Allowance for Credit Losses – Loans / Actual Loans (%)		1.47	%		1.50	%		1.48	%		1.50	%		1.64	%
Net Charge-offs as % of Average Loans (Annualized)		0.15	%		0.02	%		0.21	%		1.26	%		0.07	%


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
ASSETS
Cash and due from banks	$	86,113		$	87,616		$	84,719		$	105,372		$	100,514
Interest-bearing deposits		331,534			298,891			359,126			168,528			410,497
Investment securities available for sale		1,378,489			1,386,475			1,553,496			1,618,893			1,620,213
Investment securities held to maturity, net of allowance for credit losses		2,048,632			2,074,220			2,108,649			2,134,195			2,163,361
Loans held for sale		23,004			18,663			40,652			32,292			15,118
Loans		13,004,905			12,854,359			12,646,808			12,639,650			12,465,582
Less: Allowance for credit losses – loans		(192,031	)		(192,757	)		(187,828	)		(189,537	)		(204,681	)
Net loans		12,812,874			12,661,602			12,458,980			12,450,113			12,260,901
Premises and equipment		128,749			129,743			129,582			133,245			132,706
Federal Home Loan Bank stock		45,006			41,690			41,716			41,738			41,758
Interest receivable		88,352			91,829			92,055			97,546			92,550
Goodwill		712,002			712,002			712,002			712,002			712,002
Other intangibles		18,302			19,828			21,599			23,371			25,142
Cash surrender value of life insurance		304,918			304,906			304,613			306,379			306,028
Other real estate owned		4,966			4,948			5,247			4,824			4,886
Tax asset, deferred and receivable		87,665			92,387			86,732			107,080			101,121
Other assets		369,181			387,169			348,384			367,845			331,006
TOTAL ASSETS	$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423		$	18,317,803
LIABILITIES
Deposits:
Noninterest-bearing	$	2,185,057		$	2,325,579		$	2,334,197		$	2,303,313		$	2,338,364
Interest-bearing		12,276,921			12,196,047			12,030,903			12,265,757			12,546,220
Total Deposits		14,461,978			14,521,626			14,365,100			14,569,070			14,884,584
Borrowings:
Federal funds purchased		185,000			99,226			30,000			147,229			—
Securities sold under repurchase agreements		122,947			142,876			124,894			100,451			130,264
Federal Home Loan Bank advances		972,478			822,554			832,629			832,703			612,778
Subordinated debentures and other borrowings		62,619			93,529			93,562			93,589			118,612
Total Borrowings		1,343,044			1,158,185			1,081,085			1,173,972			861,654
Deposits and other liabilities held for sale		—			—			288,476			—			—
Interest payable		13,304			16,102			18,089			18,554			19,262
Other liabilities		289,247			311,073			292,429			329,302			327,500
Total Liabilities		16,107,573			16,006,986			16,045,179			16,090,898			16,093,000
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125			125			125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000			25,000			25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding		7,226			7,247			7,265			7,256			7,321
Additional paid-in capital		1,183,263			1,188,768			1,192,683			1,191,193			1,208,447
Retained earnings		1,306,911			1,272,528			1,229,125			1,200,930			1,181,939
Accumulated other comprehensive loss		(190,311	)		(188,685	)		(151,825	)		(211,979	)		(198,029	)
Total Stockholders’ Equity		2,332,214			2,304,983			2,302,373			2,212,525			2,224,803
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423		$	18,317,803

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
INTEREST INCOME
Loans:
Taxable	$	187,728		$	197,536		$	206,680		$	201,413		$	198,023
Tax-exempt		10,532			9,020			8,622			8,430			8,190
Investment securities:
Taxable		8,372			9,024			9,263			9,051			8,748
Tax-exempt		12,517			12,754			13,509			13,613			13,611
Deposits with financial institutions		2,372			5,350			2,154			2,995			6,493
Federal Home Loan Bank stock		997			958			855			879			835
Total Interest Income		222,518			234,642			241,083			236,381			235,900
INTEREST EXPENSE
Deposits		80,547			89,835			98,856			99,151			98,285
Federal funds purchased		812			26			329			126			—
Securities sold under repurchase agreements		742			680			700			645			1,032
Federal Home Loan Bank advances		9,364			8,171			8,544			6,398			6,773
Subordinated debentures and other borrowings		783			1,560			1,544			1,490			2,747
Total Interest Expense		92,248			100,272			109,973			107,810			108,837
NET INTEREST INCOME		130,270			134,370			131,110			128,571			127,063
Provision for credit losses		4,200			4,200			5,000			24,500			2,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		126,070			130,170			126,110			104,071			125,063
NONINTEREST INCOME
Service charges on deposit accounts		8,072			8,124			8,361			8,214			7,907
Fiduciary and wealth management fees		8,644			8,665			8,525			8,825			8,200
Card payment fees		4,526			4,957			5,121			4,739			4,500
Net gains and fees on sales of loans		5,022			5,681			6,764			5,141			3,254
Derivative hedge fees		404			1,594			736			489			263
Other customer fees		415			316			344			460			427
Earnings on cash surrender value of life insurance		2,179			2,188			2,755			1,929			1,592
Net realized losses on sales of available for sale securities		(7	)		(11,592	)		(9,114	)		(49	)		(2	)
Gain on branch sale		—			19,983			—			—			—
Other income		793			2,826			1,374			1,586			497
Total Noninterest Income		30,048			42,742			24,866			31,334			26,638
NONINTEREST EXPENSES
Salaries and employee benefits		54,982			55,437			55,223			52,214			58,293
Net occupancy		7,216			7,335			6,994			6,746			7,312
Equipment		7,008			7,028			6,949			6,599			6,226
Marketing		1,353			2,582			1,836			1,773			1,198
Outside data processing fees		5,929			6,029			7,150			7,072			6,889
Printing and office supplies		347			377			378			354			353
Intangible asset amortization		1,526			1,771			1,772			1,771			1,957
FDIC assessments		3,648			3,744			3,720			3,278			4,287
Other real estate owned and foreclosure expenses		600			227			942			373			534
Professional and other outside services		3,261			3,777			3,035			3,822			3,952
Other expenses		7,032			7,982			6,630			7,411			5,934
Total Noninterest Expenses		92,902			96,289			94,629			91,413			96,935
INCOME BEFORE INCOME TAX		63,216			76,623			56,347			43,992			54,766
Income tax expense		7,877			12,274			7,160			4,067			6,825
NET INCOME		55,339			64,349			49,187			39,925			47,941
Preferred stock dividends		469			469			468			469			469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	54,870		$	63,880		$	48,719		$	39,456		$	47,472
Per Share Data:
Basic Net Income Available to Common Stockholders	$	0.95		$	1.10		$	0.84		$	0.68		$	0.80
Diluted Net Income Available to Common Stockholders	$	0.94		$	1.10		$	0.84		$	0.68		$	0.80
Cash Dividends Paid to Common Stockholders	$	0.35		$	0.35		$	0.35		$	0.35		$	0.34
Tangible Common Book Value Per Share	$	27.34		$	26.78		$	26.64		$	25.10		$	25.07
Average Diluted Common Shares Outstanding (in thousands)		58,242			58,247			58,289			58,328			59,273
FINANCIAL RATIOS:
Return on Average Assets		1.21	%		1.39	%		1.07	%		0.87	%		1.04	%
Return on Average Stockholders’ Equity		9.38			11.05			8.66			7.16			8.47
Return on Tangible Common Stockholders’ Equity		14.12			16.75			13.39			11.29			13.21
Average Earning Assets to Average Assets		92.47			92.48			92.54			92.81			92.91
Allowance for Credit Losses – Loans as % of Total Loans		1.47			1.50			1.48			1.50			1.64
Net Charge-offs as % of Average Loans (Annualized)		0.15			0.02			0.21			1.26			0.07
Average Stockholders’ Equity to Average Assets		12.76			12.51			12.26			12.02			12.17
Tax Equivalent Yield on Average Earning Assets		5.39			5.63			5.82			5.69			5.65
Interest Expense/Average Earning Assets		2.17			2.35			2.59			2.53			2.55
Net Interest Margin (FTE) on Average Earning Assets		3.22			3.28			3.23			3.16			3.10
Efficiency Ratio		54.54			48.48			53.76			53.84			59.21


LOANS
(Dollars In Thousands)	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Commercial and industrial loans	$	4,306,597		$	4,114,292		$	4,041,217		$	3,949,817		$	3,722,365
Agricultural land, production and other loans to farmers		243,864			256,312			238,743			239,926			234,431
Real estate loans:
Construction		793,175			792,144			814,704			823,267			941,726
Commercial real estate, non-owner occupied		2,177,869			2,274,016			2,251,351			2,323,533			2,368,360
Commercial real estate, owner occupied		1,214,739			1,157,944			1,152,751			1,174,195			1,137,894
Residential		2,389,852			2,374,729			2,366,943			2,370,905			2,316,490
Home equity		650,499			659,811			641,188			631,104			618,258
Individuals’ loans for household and other personal expenditures		140,954			166,028			158,480			162,089			161,459
Public finance and other commercial loans		1,087,356			1,059,083			981,431			964,814			964,599
Loans		13,004,905			12,854,359			12,646,808			12,639,650			12,465,582
Allowance for credit losses – loans		(192,031	)		(192,757	)		(187,828	)		(189,537	)		(204,681	)
NET LOANS	$	12,812,874		$	12,661,602		$	12,458,980		$	12,450,113		$	12,260,901

DEPOSITS
(Dollars In Thousands)	March 31,		December 31,		September 30,		June 30,		March 31,
	2025		2024		2024		2024		2024
Demand deposits	$	7,786,554	$	7,980,061	$	7,678,510	$	7,757,679	$	7,771,976
Savings deposits		4,791,874		4,522,758		4,302,236		4,339,161		4,679,593
Certificates and other time deposits of $100,000 or more		896,143		1,043,068		1,277,833		1,415,131		1,451,443
Certificates and other time deposits of $100,000 or less		625,203		692,068		802,949		889,949		901,280
Brokered certificates of deposits¹		362,204		283,671		303,572		167,150		80,292
TOTAL DEPOSITS	$	14,461,978	$	14,521,626	$	14,365,100	$	14,569,070	$	14,884,584

^{1 –} Total brokered deposits of $1.1 billion, which includes brokered CD’s of $362.2 million at March 31, 2025.


CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars in Thousands)
	For the Three Months Ended
	March 31, 2025						March 31, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	294,016	$	2,372	3.23	%	$	575,699	$	6,493	4.51	%
Federal Home Loan Bank stock		43,980		997	9.07			41,764		835	8.00
Investment Securities: ⁽¹⁾
Taxable		1,634,452		8,372	2.05			1,783,057		8,748	1.96
Tax-exempt ⁽²⁾		2,046,674		15,844	3.10			2,246,265		17,229	3.07
Total Investment Securities		3,681,126		24,216	2.63			4,029,322		25,977	2.58
Loans held for sale		20,965		319	6.09			21,782		328	6.02
Loans: ⁽³⁾
Commercial		8,770,282		147,772	6.74			8,598,110		159,209	7.41
Real estate mortgage		2,191,384		24,446	4.46			2,130,947		22,357	4.20
HELOC and installment		828,874		15,191	7.33			821,815		16,129	7.85
Tax-exempt ⁽²⁾		1,129,848		13,332	4.72			904,412		10,367	4.59
Total Loans		12,941,353		201,060	6.21			12,477,066		208,390	6.68
Total Earning Assets		16,960,475		228,645	5.39	%		17,123,851		241,695	5.65	%
Total Non-Earning Assets		1,381,263						1,306,670
TOTAL ASSETS	$	18,341,738					$	18,430,521
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,522,434	$	34,606	2.51	%	$	5,419,821	$	39,491	2.91	%
Money market deposits		3,437,998		25,952	3.02			3,045,478		27,383	3.60
Savings deposits		1,299,405		2,445	0.75			1,559,877		3,801	0.97
Certificates and other time deposits		1,947,854		17,544	3.60			2,427,859		27,610	4.55
Total Interest-Bearing Deposits		12,207,691		80,547	2.64			12,453,035		98,285	3.16
Borrowings		1,262,926		11,701	3.71			1,011,812		10,552	4.17
Total Interest-Bearing Liabilities		13,470,617		92,248	2.74			13,464,847		108,837	3.23
Noninterest-bearing deposits		2,211,647						2,428,170
Other liabilities		318,600						295,365
Total Liabilities		16,000,864						16,188,382
STOCKHOLDERS’ EQUITY		2,340,874						2,242,139
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,341,738		92,248			$	18,430,521		108,837
Net Interest Income (FTE)			$	136,397					$	132,858
Net Interest Spread (FTE) ⁽⁴⁾					2.65	%					2.42	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.39	%					5.65	%
Interest Expense / Average Earning Assets					2.17	%					2.55	%
Net Interest Margin (FTE) ⁽⁵⁾					3.22	%					3.10	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2024 and 2023. These totals equal $6,127 and $5,795 for the three months ended March 31, 2025 and 2024, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.


ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Net Income Available to Common Stockholders – GAAP	$	54,870		$	63,880		$	48,719		$	39,456		$	47,472
Adjustments:
Net realized losses on sales of available for sale securities		7			11,592			9,114			49			2
Gain on branch sale		—			(19,983	)		—			—			—
Non-core expenses^1,2		—			762			—			—			3,481
Tax on adjustments		(2	)		1,851			(2,220	)		(12	)		(848	)
Adjusted Net Income Available to Common Stockholders – Non-GAAP	$	54,875		$	58,102		$	55,613		$	39,493		$	50,107

Average Diluted Common Shares Outstanding (in thousands)		58,242			58,247			58,289			58,328			59,273

Diluted Earnings Per Common Share – GAAP	$	0.94		$	1.10		$	0.84		$	0.68		$	0.80
Adjustments:
Net realized losses on sales of available for sale securities		—			0.20			0.15			—			—
Gain on branch sale		—			(0.34	)		—			—			—
Non-core expenses^1,2		—			0.01			—			—			0.06
Tax on adjustments		—			0.03			(0.04	)		—			(0.01	)
Adjusted Diluted Earnings Per Common Share – Non-GAAP	$	0.94		$	1.00		$	0.95		$	0.68		$	0.85

¹ – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.


NET INTEREST MARGIN (“NIM”), ADJUSTED
(Dollars in Thousands)
	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Net Interest Income (GAAP)	$	130,270		$	134,370		$	131,110		$	128,571		$	127,063
Fully Taxable Equivalent (“FTE”) Adjustment		6,127			5,788			5,883			5,859			5,795
Net Interest Income (FTE) (non-GAAP)	$	136,397		$	140,158		$	136,993		$	134,430		$	132,858

Average Earning Assets (GAAP)	$	16,960,475		$	17,089,198		$	16,990,358		$	17,013,984		$	17,123,851
Net Interest Margin (GAAP)		3.07	%		3.15	%		3.09	%		3.02	%		2.97	%
Net Interest Margin (FTE) (non-GAAP)		3.22	%		3.28	%		3.23	%		3.16	%		3.10	%

RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
(Dollars In Thousands)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Total Average Stockholders’ Equity (GAAP)	$	2,340,874		$	2,312,270		$	2,251,547		$	2,203,361		$	2,242,139
Less: Average Preferred Stock		(25,125	)		(25,125	)		(25,125	)		(25,125	)		(25,125	)
Less: Average Intangible Assets, Net of Tax		(726,917	)		(728,218	)		(729,581	)		(730,980	)		(732,432	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,588,832		$	1,558,927		$	1,496,841		$	1,447,256		$	1,484,582

Net Income Available to Common Stockholders (GAAP)	$	54,870		$	63,880		$	48,719		$	39,456		$	47,472
Plus: Intangible Asset Amortization, Net of Tax		1,206			1,399			1,399			1,399			1,546
Tangible Net Income (Non-GAAP)	$	56,076		$	65,279		$	50,118		$	40,855		$	49,018

Return on Tangible Common Equity (Non-GAAP)		14.12	%		16.75	%		13.39	%		11.29	%		13.21	%

EFFICIENCY RATIO – NON-GAAP
(Dollars In Thousands)	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Non Interest Expense (GAAP)	$	92,902		$	96,289		$	94,629		$	91,413		$	96,935
Less: Intangible Asset Amortization		(1,526	)		(1,771	)		(1,772	)		(1,771	)		(1,957	)
Less: OREO and Foreclosure Expenses		(600	)		(227	)		(942	)		(373	)		(534	)
Adjusted Non Interest Expense (Non-GAAP)	$	90,776		$	94,291		$	91,915		$	89,269		$	94,444

Net Interest Income (GAAP)	$	130,270		$	134,370		$	131,110		$	128,571		$	127,063
Plus: Fully Taxable Equivalent Adjustment		6,127			5,788			5,883			5,859			5,795
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)	$	136,397		$	140,158		$	136,993		$	134,430		$	132,858

Non Interest Income (GAAP)	$	30,048		$	42,742		$	24,866		$	31,334		$	26,638
Less: Investment Securities (Gains) Losses		7			11,592			9,114			49			2
Adjusted Non Interest Income (Non-GAAP)	$	30,055		$	54,334		$	33,980		$	31,383		$	26,640
Adjusted Revenue (Non-GAAP)	$	166,452		$	194,492		$	170,973		$	165,813		$	159,498
Efficiency Ratio (Non-GAAP)		54.54	%		48.48	%		53.76	%		53.84	%		59.21	%

Adjusted Non Interest Expense (Non-GAAP)	$	90,776		$	94,291		$	91,915		$	89,269		$	94,444
Less: Non-core Expenses^1,2		—			(762	)		—			—			(3,481	)
Adjusted Non Interest Expense Excluding Non-core Expenses (Non-GAAP)	$	90,776		$	93,529		$	91,915		$	89,269		$	90,963

Adjusted Revenue (Non-GAAP)	$	166,452		$	194,492		$	170,973		$	165,813		$	159,498
Less: Gain on Branch Sale		—			(19,983	)		—			—			—
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)	$	166,452		$	174,509		$	170,973		$	165,813		$	159,498
Adjusted Efficiency Ratio (Non-GAAP)		54.54	%		53.60	%		53.76	%		53.84	%		57.03	%
¹ – Non-core expenses in 4Q24 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in 1Q24 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

For more information, contact:
Nicole M. Weaver, Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

The MIL Network –

April 25, 2025

MIL-OSI: ConnectOne Bancorp, Inc. Reports First Quarter 2025 Results; Declares Common and Preferred Dividends

Source: GlobeNewswire (MIL-OSI)

ENGLEWOOD CLIFFS, N.J., April 24, 2025 (GLOBE NEWSWIRE) — ConnectOne Bancorp, Inc. (Nasdaq: CNOB) (the “Company” or “ConnectOne”), parent company of ConnectOne Bank (the “Bank”), today reported net income available to common stockholders of $18.7 million for the first quarter of 2025 compared with $18.9 million for the fourth quarter of 2024 and $15.7 million for the first quarter of 2024. Diluted earnings per share were $0.49 for the first quarter of 2025 compared with $0.49 for the fourth quarter of 2024 and $0.41 for the first quarter of 2024. Return on average assets was 0.84%, 0.84% and 0.70% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Return on average tangible common equity was 8.25%, 8.27% and 7.15% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

Operating net income available to common stockholders, which excludes non-operating items (primarily merger and branch closure related expenses), was $19.7 million for the first quarter of 2025, $20.2 million for the fourth quarter of 2024 and $15.9 million for the first quarter of 2024. Operating diluted earnings per share were $0.51 for the first quarter of 2025, $0.52 for the fourth quarter of 2024 and $0.41 for the first quarter of 2024. Operating return on average assets was 0.88%, 0.90% and 0.71% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. Operating return on average tangible common equity was 8.59%, 8.77% and 7.12% for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively. See supplemental tables for a complete reconciliation of GAAP earnings to operating earnings, and other non-GAAP measures.

Net income available to common stockholders and diluted earnings per share during the first quarter of 2025 were essentially flat when compared to the fourth quarter of 2024, reflecting modest changes in all statement of income categories. The increase of $3.0 million in net income available to common stockholders versus the first quarter of 2024 was primarily due to a $5.5 million increase in net interest income, a $0.5 million decrease in provision for credit losses and a $0.6 million increase in noninterest income, partially offset by a $2.2 million increase in noninterest expenses and a $1.3 million increase in income tax expense.

“We are pleased with ConnectOne’s solid performance to start the year, demonstrating disciplined execution across the organization,” said Frank Sorrentino, Chairman and Chief Executive Officer of ConnectOne. “We look forward to finalizing our planned merger with The First of Long Island Corporation in the second quarter- bringing together two highly compatible relationship focused institutions to create a premier New York Metro community bank, providing attractive opportunities for our combined client base and the markets we serve.”

“Our net interest margin widened meaningfully again as expected — increasing 7 basis points during the 2025 first quarter — driven by a strengthened balance sheet and favorable interest rate positioning. We anticipate this positive momentum to carry through the remainder of the year and into 2026, supporting continued margin expansion.” Mr. Sorrentino commented, “Although the loan portfolio contracted slightly since year-end, our loan pipeline is robust, backed by solid credits at attractive spreads, and continues to reflect steady, diversified growth.”

“Credit quality trends remained stable during the first quarter with nonaccrual loans decreasing to 0.61% of total loans and annualized quarterly charge-offs remaining below 0.18% for the fifth consecutive quarter,” Mr. Sorrentino added. “In addition, our tangible book value per share continues to build ahead of the merger, increasing by more than 3% since announcing the transaction, our loan to deposit ratio declined to 105.6%, and our regulatory CRE concentration ratio improved by 15 percentage points to 420%.”

Mr. Sorrentino concluded, “Although there is an increasing industry-wide focus on the impact of potential tariff policy on borrower health in various loan segments, our direct exposure to import/export-dependent segments is very limited. Our ongoing portfolio reviews have shown very limited disruption to date, and we remain confident in the stability and resilience of our credit portfolio.”

Dividend Declarations

The Company announced that its Board of Directors declared a cash dividend on both its common stock and its outstanding preferred stock. A cash dividend on common stock of $0.18 per share will be paid on June 2, 2025, to common stockholders of record on May 15, 2025. A dividend of $0.328125 per depositary share, representing a 1/40^th interest in a share of the Company’s 5.25% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, will also be paid on June 2, 2025 to holders of record on May 15, 2025.

Operating Results

Fully taxable equivalent net interest income for the first quarter of 2025 was $65.8 million, an increase of $1.0 million, or 1.6%, from the fourth quarter of 2024, due to a seven basis-point widening of the net interest margin to 2.93% from 2.86%, and a 1.2% increase in average interest earning assets, partially offset by a lower day-count. The widening of the net interest margin was primarily due to a 21 basis-point decrease in the average costs of deposits, including noninterest-bearing deposits, partially offset by an 11 basis-point decline in the rate earned on interest-earning assets.

Fully taxable equivalent net interest income for the first quarter of 2025 increased by $5.5 million, or 9.0%, from the first quarter of 2024. The increase from the first quarter of 2024 resulted primarily from a 29 basis-point widening in the net interest margin to 2.93% from 2.64%. During the first quarter of 2025, average total loans decreased by $123.8 million, or 1.5% when compared to the first quarter of 2024. The widening of the net interest margin for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a 42 basis-point decrease in the average cost of total funds, including noninterest-bearing deposits, partially offset by a nine basis-point decrease in the loan portfolio yield.

Noninterest income was $4.5 million in the first quarter of 2025, $3.7 million in the fourth quarter of 2024 and $3.8 million in the first quarter of 2024. The $0.7 million increase in noninterest income for the first quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to a $0.8 million increase in net gains on equity securities, including a $0.4 million gain on the sale of a strategic equity investment, and a $0.3 million decrease in net gains on sale of loans held-for-sale. The $0.6 million increase in noninterest income for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a $0.4 million increase in deposit, loan and other income and a $0.4 million gain on the sale of a strategic equity investment, partially offset by a $0.2 million decrease in net gains on sale of loans held-for-sale.

Noninterest expenses were $39.3 million for the first quarter of 2025, $38.5 million for the fourth quarter of 2024 and $37.1 million for the first quarter of 2024. The $0.8 million increase in noninterest expenses for the first quarter of 2025 when compared to the fourth quarter of 2024 was primarily due to a $0.5 million increase in merger expenses, a $0.3 million increase in salaries and employee benefits and a $0.3 million bank owned life insurance (“BOLI”) restructuring charge in the first quarter of 2025, partially offset by a $0.5 million decrease in charges related to a branch closing in the fourth quarter of 2024. The $2.2 million increase in noninterest expenses for the first quarter of 2025 when compared to the first quarter of 2024 was primarily due to a $1.3 million increase in merger expenses, a $0.5 million increase in salaries and employee benefits and the aforementioned $0.3 million BOLI restructuring charge. The increases in merger expenses when compared to the fourth quarter of 2024 and the first quarter of 2024 are due to the planned merger with The First of Long Island Corporation.

Income tax expense was $7.2 million for the first quarter of 2025, $6.1 million for the fourth quarter of 2024 and $5.9 million for the first quarter of 2024. The effective tax rates for the first quarter of 2025, fourth quarter of 2024 and first quarter of 2024 were 26.1%, 23.0% and 25.5%, respectively. The effective tax rate for the fourth quarter of 2024 reflects year-end adjustments for the effective tax rate for the full-year 2024. The overall increase in the effective tax rate during the first quarter of 2025 when compared to the fourth quarter of 2024 and the first quarter of 2024 was due to an increase in income before income tax expense and a decrease in tax-free adjustments.

Asset Quality

The provision for credit losses was $3.5 million for the first quarter of 2025, $3.5 million for the fourth quarter of 2024 and $4.0 million for the first quarter of 2024. In each of the quarters presented, the provision for credit losses reflected net portfolio growth, charges related to individually evaluated loans, and changing economic forecasts and conditions.

Nonperforming assets, which includes nonaccrual loans and other real estate owned (the Bank had no other real estate owned during the periods reported), were $49.9 million as of March 31, 2025, $57.3 million as of December 31, 2024 and $47.4 million as of March 31, 2024. Nonperforming assets as a percentage of total assets were 0.51% as of March 31, 2025, 0.58% as of December 31, 2024 and 0.48% as of March 31, 2024. The ratio of nonaccrual loans to loans receivable was 0.61%, 0.69% and 0.57%, as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The annualized net loan charge-offs ratio was 0.17% for the first quarter of 2025, 0.16% for the fourth quarter of 2024 and 0.15% for the first quarter of 2024. The allowance for credit losses represented 1.00% of loans receivable as of March 31, 2025, December 31, 2024, and March 31, 2024. The allowance for credit losses as a percentage of nonaccrual loans was 165.3% as of March 31, 2025, 144.3% as of December 31, 2024 and 174.7% as of March 31, 2024. Criticized and classified loans as a percentage of loans receivable was 2.79% as of March 31, 2025, up slightly from 2.68% as of December 31, 2024 and up from 1.30% as of March 31, 2024. Loans delinquent 30 to 89 days were 0.18% of loans receivable as of March 31, 2025, up from 0.04% as of December 31, 2024 and up from 0.04% as of March 31, 2024. The overall credit quality metrics of the Bank’s loan portfolio are sound, reflecting charge-offs, nonaccruals, delinquencies and classified loans all remaining within historical ranges.

Selected Balance Sheet Items

The Company’s total assets were $9.759 billion as of March 31, 2025, compared to $9.880 billion as of December 31, 2024. Loans receivable were $8.201 billion as of March 31, 2025 and $8.275 billion as of December 31, 2024. Total deposits were $7.767 billion as of March 31, 2025 and $7.820 billion as of December 31, 2024.

The Company’s total stockholders’ equity was $1.253 billion as of March 31, 2025 and $1.242 billion as of December 31, 2024. The increase in total stockholders’ equity was primarily due to an increase in retained earnings of $11.8 million. As of March 31, 2025, the Company’s tangible common equity ratio and tangible book value per share were 9.73% and $24.16, respectively, compared to 9.49% and $23.92, respectively, as of December 31, 2024. Total goodwill and other intangible assets were $212.7 million as of March 31, 2025, and $213.0 million as of December 31, 2024.

Use of Non-GAAP Financial Measures

In addition to the results presented in accordance with Generally Accepted Accounting Principles (“GAAP”), ConnectOne routinely supplements its evaluation with an analysis of certain non-GAAP measures. ConnectOne believes these non-GAAP financial measures, in addition to the related GAAP measures, provide meaningful information to investors in understanding our operating performance and trends. These non-GAAP measures have inherent limitations and are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for an analysis of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. Reconciliations of non-GAAP financial measures disclosed in this earnings release to the comparable GAAP measures are provided in the accompanying tables.

First Quarter 2025 Results Conference Call

Management will also host a conference call and audio webcast at 10:00 a.m. ET on April 24, 2025 to review the Company’s financial performance and operating results. The conference call dial-in number is 1 (646) 307-1963, access code 5043609. Please dial in at least five minutes before the start of the call to register. An audio webcast of the conference call will be available to the public, on a listen-only basis, via the “Investor Relations” link on the Company’s website https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

A replay of the conference call will be available beginning at approximately 1:00 p.m. ET on Thursday, April 24, 2025 and ending on Thursday, May 1, 2025 by dialing 1 (609) 800-9909, access code 5043609. An online archive of the webcast will be available following the completion of the conference call at https://www.ConnectOneBank.com or at http://ir.connectonebank.com.

About ConnectOne Bancorp, Inc.

ConnectOne Bancorp, Inc., is a modern financial services company that operates, through its subsidiary, ConnectOne Bank, and the Bank’s fintech subsidiary, BoeFly, Inc. ConnectOne Bank is a high-performing commercial bank offering a full suite of banking & lending products and services that focus on small to middle-market businesses. BoeFly, Inc. is a fintech marketplace that connects borrowers in the franchise space with funding solutions through a network of partner banks. ConnectOne Bancorp, Inc. is traded on the Nasdaq Global Market under the trading symbol “CNOB,” and information about ConnectOne may be found at https://www.connectonebank.com.

This news release contains certain forward-looking statements 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,” or similar expressions. 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, those factors set forth in Item 1A – Risk Factors of the Company’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission, as supplemented by the Company’s subsequent filings with the U.S. Securities and Exchange Commission, and changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in accounting principles and guidelines and the impact of the health emergencies and natural disasters on the Company, its employees and operations, and its customers. These risks and uncertainties 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.

Investor Contact:
William S. Burns
Senior Executive Vice President & CFO
201.816.4474; bburns@cnob.com

Media Contact:
Shannan Weeks
MikeWorldWide
732.299.7890; sweeks@mww.com

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION
(in thousands)

	March 31,			December 31,			March 31,
		2025			2024			2024
	(unaudited)						(unaudited)
ASSETS
Cash and due from banks	$	49,759		$	57,816		$	45,322
Interest-bearing deposits with banks		242,844			298,672			232,261
Cash and cash equivalents		292,603			356,488			277,583

Investment securities		636,806			612,847			619,397
Equity securities		18,859			20,092			19,457

Loans held-for-sale		202			743			–

Loans receivable		8,201,134			8,274,810			8,297,957
Less: Allowance for credit losses – loans		82,403			82,685			82,869
Net loans receivable		8,118,731			8,192,125			8,215,088

Investment in restricted stock, at cost		37,031			40,449			48,931
Bank premises and equipment, net		27,624			28,447			29,827
Accrued interest receivable		46,740			45,498			49,731
Bank owned life insurance		244,651			243,672			239,308
Right of use operating lease assets		13,755			14,489			11,725
Goodwill		208,372			208,372			208,372
Core deposit intangibles		4,360			4,639			5,553
Other assets		109,521			111,739			128,992
Total assets	$	9,759,255		$	9,879,600		$	9,853,964

LIABILITIES
Deposits:
Noninterest-bearing	$	1,319,196		$	1,422,044		$	1,290,523
Interest-bearing		6,448,034			6,398,070			6,298,131
Total deposits		7,767,230			7,820,114			7,588,654
Borrowings		613,053			688,064			877,568
Subordinated debentures, net		80,071			79,944			79,566
Operating lease liabilities		14,737			15,498			12,843
Other liabilities		31,225			34,276			78,724
Total liabilities		8,506,316			8,637,896			8,637,355

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS’ EQUITY
Preferred stock		110,927			110,927			110,927
Common stock		586,946			586,946			586,946
Additional paid-in capital		36,007			36,347			32,866
Retained earnings		643,265			631,446			600,118
Treasury stock		(76,116	)		(76,116	)		(76,116	)
Accumulated other comprehensive loss		(48,090	)		(47,846	)		(38,132	)
Total stockholders’ equity		1,252,939			1,241,704			1,216,609
Total liabilities and stockholders’ equity	$	9,759,255		$	9,879,600		$	9,853,964

CONNECTONE BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(dollars in thousands, except for per share data)

	Three Months Ended
	03/31/25		12/31/24			03/31/24
Interest income
Interest and fees on loans	$	115,351	$	118,346		$	120,088
Interest and dividends on investment securities:
Taxable		4,987		4,804			4,334
Tax-exempt		1,097		1,109			1,154
Dividends		889		959			1,125
Interest on federal funds sold and other short-term investments		2,465		2,815			2,906
Total interest income		124,789		128,033			129,607
Interest expense
Deposits		53,992		58,568			60,407
Borrowings		5,041		4,754			8,900
Total interest expense		59,033		63,322			69,307

Net interest income		65,756		64,711			60,300
Provision for credit losses		3,500		3,500			4,000
Net interest income after provision for credit losses		62,256		61,211			56,300

Noninterest income
Deposit, loan and other income		2,006		1,798			1,592
Income on bank owned life insurance		1,584		1,656			1,664
Net gains on sale of loans held-for-sale		332		597			506
Net gains (losses) on equity securities		529		(307	)		86
Total noninterest income		4,451		3,744			3,848

Noninterest expenses
Salaries and employee benefits		22,578		22,244			22,131
Occupancy and equipment		2,680		2,818			3,009
FDIC insurance		1,800		1,800			1,800
Professional and consulting		2,366		2,449			1,928
Marketing and advertising		595		495			677
Information technology and communications		4,604		4,523			4,389
Merger expenses		1,320		863			–
Branch closing expenses		–		477			–
Bank owned life insurance restructuring charge		327		–			–
Amortization of core deposit intangibles		279		296			321
Other expenses		2,756		2,533			2,810
Total noninterest expenses		39,305		38,498			37,065

Income before income tax expense		27,402		26,457			23,083
Income tax expense		7,160		6,086			5,878
Net income		20,242		20,371			17,205
Preferred dividends		1,509		1,509			1,509
Net income available to common stockholders	$	18,733	$	18,862		$	15,696

Earnings per common share:
Basic	$	0.49	$	0.49		$	0.41
Diluted		0.49		0.49			0.41

ConnectOne’s management believes that the supplemental financial information, including non-GAAP measures provided below, is useful to investors. The non-GAAP measures should not be viewed as a substitute for financial results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP financial measures presented by other companies.

CONNECTONE BANCORP, INC.
SUPPLEMENTAL GAAP AND NON-GAAP FINANCIAL MEASURES

	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2025				2024				2024				2024				2024
Selected Financial Data	(dollars in thousands)
Total assets	$	9,759,255			$	9,879,600			$	9,639,603			$	9,723,731			$	9,853,964
Loans receivable:
Commercial		1,483,392			$	1,522,308			$	1,505,743			$	1,491,079			$	1,561,063
Commercial real estate		3,356,943				3,384,319				3,261,160				3,274,941				3,333,488
Multifamily		2,490,256				2,506,782				2,482,258				2,499,581				2,507,893
Commercial construction		617,593				616,246				616,087				639,168				646,593
Residential		256,555				249,691				250,249				256,786				254,214
Consumer		1,604				1,136				835				945				850
Gross loans		8,206,343				8,280,482				8,116,332				8,162,500				8,304,101
Net deferred loan fees		(5,209	)			(5,672	)			(4,356	)			(4,597	)			(6,144	)
Loans receivable		8,201,134				8,274,810				8,111,976				8,157,903				8,297,957
Loans held-for-sale		202				743				–				435				–
Total loans	$	8,201,336			$	8,275,553			$	8,111,976			$	8,158,338			$	8,297,957

Investment and equity securities	$	655,665			$	632,939			$	667,112			$	640,322			$	638,854
Goodwill and other intangible assets		212,732				213,011				213,307				213,604				213,925
Deposits:
Noninterest-bearing demand	$	1,319,196			$	1,422,044			$	1,262,568			$	1,268,882			$	1,290,523
Time deposits		2,550,223				2,557,200				2,614,187				2,593,165				2,623,391
Other interest-bearing deposits		3,897,811				3,840,870				3,647,350				3,713,967				3,674,740
Total deposits	$	7,767,230			$	7,820,114			$	7,524,105			$	7,576,014			$	7,588,654

Borrowings	$	613,053			$	688,064			$	742,133			$	756,144			$	877,568
Subordinated debentures (net of debt issuance costs)		80,071				79,944				79,818				79,692				79,566
Total stockholders’ equity		1,252,939				1,241,704				1,239,496				1,224,227				1,216,609

Quarterly Average Balances
Total assets	$	9,748,605			$	9,563,446			$	9,742,853			$	9,745,853			$	9,860,753
Loans receivable:
Commercial	$	1,488,962			$	1,487,850			$	1,485,777			$	1,517,446			$	1,552,360
Commercial real estate (including multifamily)		5,852,342				5,733,188				5,752,467				5,789,498				5,890,853
Commercial construction		610,859				631,022				628,740				652,227				637,993
Residential		256,430				250,589				252,975				254,284				252,965
Consumer		5,687				5,204				7,887				5,155				5,091
Gross loans		8,214,280				8,107,853				8,127,846				8,218,610				8,339,262
Net deferred loan fees		(5,525	)			(4,727	)			(4,513	)			(5,954	)			(6,533	)
Loans receivable		8,208,755				8,103,126				8,123,333				8,212,656				8,332,729
Loans held-for-sale		259				498				83				169				99
Total loans	$	8,209,014			$	8,103,624			$	8,123,416			$	8,212,825			$	8,332,828

Investment and equity securities	$	655,191			$	653,988			$	650,897			$	637,551			$	633,270
Goodwill and other intangible assets		212,915				213,205				213,502				213,813				214,133
Deposits:
Noninterest-bearing demand	$	1,305,722			$	1,304,699			$	1,259,912			$	1,256,251			$	1,254,201
Time deposits		2,480,990				2,478,163				2,625,329				2,587,706				2,567,767
Other interest-bearing deposits		3,888,131				3,838,575				3,747,427				3,721,167				3,696,374
Total deposits	$	7,674,843			$	7,621,437			$	7,632,668			$	7,565,124			$	7,518,342

Borrowings	$	686,391			$	648,300			$	717,586			$	787,256			$	947,003
Subordinated debentures (net of debt issuance costs)		79,988				79,862				79,735				79,609				79,483
Total stockholders’ equity		1,254,373				1,241,738				1,234,724				1,220,621				1,220,818

	Three Months Ended
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2025				2024				2024				2024				2024
	(dollars in thousands, except for per share data)
Net interest income	$	65,756			$	64,711			$	60,887			$	61,439			$	60,300
Provision for credit losses		3,500				3,500				3,800				2,500				4,000
Net interest income after provision for credit losses		62,256				61,211				57,087				58,939				56,300
Noninterest income
Deposit, loan and other income		2,006				1,798				1,817				1,654				1,592
Income on bank owned life insurance		1,584				1,656				2,145				1,677				1,664
Net gains on sale of loans held-for-sale		332				597				343				1,277				506
Net gains (losses) on equity securities		529				(307	)			432				(209	)			86
Total noninterest income		4,451				3,744				4,737				4,399				3,848
Noninterest expenses
Salaries and employee benefits		22,578				22,244				22,957				22,721				22,131
Occupancy and equipment		2,680				2,818				2,889				2,899				3,009
FDIC insurance		1,800				1,800				1,800				1,800				1,800
Professional and consulting		2,366				2,449				2,147				1,923				1,928
Marketing and advertising		595				495				635				613				677
Information technology and communications		4,604				4,523				4,464				4,198				4,389
Merger expenses		1,320				863				742				–				–
Branch closing expenses		–				477				–				–				–
Bank owned life insurance restructuring charge		327				–				–				–				–
Amortization of core deposit intangible		279				296				297				321				321
Other expenses		2,756				2,533				2,710				3,119				2,810
Total noninterest expenses		39,305				38,498				38,641				37,594				37,065

Income before income tax expense		27,402				26,457				23,183				25,744				23,083
Income tax expense		7,160				6,086				6,022				6,688				5,878
Net income		20,242				20,371				17,161				19,056				17,205
Preferred dividends		1,509				1,509				1,509				1,509				1,509
Net income available to common stockholders	$	18,733			$	18,862			$	15,652			$	17,547			$	15,696

Weighted average diluted common shares outstanding		38,511,237				38,519,581				38,525,484				38,448,594				38,511,747
Diluted EPS	$	0.49			$	0.49			$	0.41			$	0.46			$	0.41

Reconciliation of GAAP Net Income to Operating Net Income:
Net income	$	20,242			$	20,371			$	17,161			$	19,056			$	17,205
Merger expenses		1,320				863				742				–				–
Branch closing expenses		–				477				–				–				–
Bank owned life insurance restructuring charge		327				–				–				–				–
Amortization of core deposit intangibles		279				296				297				321				321
Net (gains) losses on equity securities		(529	)			307				(432	)			209				(86	)
Tax impact of adjustments		(420	)			(585	)			(171	)			(149	)			(66	)
Operating net income	$	21,219			$	21,729			$	17,597			$	19,437			$	17,374
Preferred dividends		1,509				1,509				1,509				1,509				1,509
Operating net income available to common stockholders	$	19,710			$	20,220			$	16,088			$	17,928			$	15,865

Operating diluted EPS (non-GAAP) ⁽¹⁾	$	0.51			$	0.52			$	0.42			$	0.47			$	0.41

Return on Assets Measures
Average assets	$	9,748,605			$	9,653,446			$	9,742,853			$	9,745,853			$	9,860,753
Return on avg. assets		0.84	%			0.84	%			0.70	%			0.79	%			0.70
Operating return on avg. assets (non-GAAP) ⁽²⁾		0.88				0.90				0.72				0.80				0.71

⁽¹⁾ Operating net income available to common stockholders divided by weighted average diluted shares outstanding.
⁽²⁾ Operating net income divided by average assets.

	Three Months Ended
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2025				2024				2024				2024				2024
Return on Equity Measures	(dollars in thousands)
Average stockholders’ equity	$	1,254,373			$	1,241,738			$	1,234,724			$	1,220,621			$	1,220,818
Less: average preferred stock		(110,927	)			(110,927	)			(110,927	)			(110,927	)			(110,927	)
Average common equity	$	1,143,446			$	1,130,811			$	1,123,797			$	1,109,694			$	1,109,891
Less: average intangible assets		(212,915	)			(213,205	)			(213,502	)			(213,813	)			(214,133	)
Average tangible common equity	$	930,531			$	917,606			$	910,295			$	895,881			$	895,758
Return on avg. common equity (GAAP)		6.64		%		6.64		%		5.54		%		6.36		%		5.69
Operating return on avg. common equity (non-GAAP) ⁽³⁾		6.99				7.11				5.70				6.50				5.75
Return on avg. tangible common equity (non-GAAP) ⁽⁴⁾		8.25				8.27				6.93				7.98				7.15
Operating return on avg. tangible common equity (non-GAAP) ⁽⁵⁾		8.59				8.77				7.03				8.05				7.12

Efficiency Measures
Total noninterest expenses	$	39,305			$	38,498			$	38,641			$	37,594			$	37,065
Merger expenses		(1,320	)			(863	)			(742	)			–				–
Branch closing expenses		–				(477	)			–				–				–
Bank owned life insurance restructuring charge		(327	)			–				–				–				–
Amortization of core deposit intangibles		(279	)			(296	)			(297	)			(321	)			(321	)
Operating noninterest expense	$	37,379			$	36,862			$	37,602			$	37,273			$	36,744

Net interest income (tax equivalent basis)	$	66,580			$	65,593			$	61,710			$	62,255			$	61,111
Noninterest income		4,451				3,744				4,737				4,399				3,848
Net (gains) losses on equity securities		(529	)			307				(432	)			209				(86	)
Operating revenue	$	70,502			$	69,644			$	66,015			$	66,863			$	64,873

Operating efficiency ratio (non-GAAP) ⁽⁶⁾		53.0	%			52.9	%			57.0	%			55.7	%			56.6

Net Interest Margin
Average interest-earning assets	$	9,224,712			$	9,117,201			$	9,206,038			$	9,210,050			$	9,323,291
Net interest income (tax equivalent basis)		66,580				65,593				61,710				62,255				61,111
Net interest margin (GAAP)		2.93	%			2.86	%			2.67	%			2.72	%			2.64

⁽³⁾ Operating net income available to common stockholders divided by average common equity.
⁽⁴⁾ Net income available to common stockholders, excluding amortization of intangible assets, divided by average tangible common equity.
⁽⁵⁾ Operating net income available to common stockholders, divided by average tangible common equity.
⁽⁶⁾ Operating noninterest expense divided by operating revenue.

	As of
	Mar. 31,				Dec. 31,				Sept. 30,				Jun. 30,				Mar. 31,
		2025				2024				2024				2024				2024
Capital Ratios and Book Value per Share	(dollars in thousands, except for per share data)
Stockholders equity	$	1,252,939			$	1,241,704			$	1,239,496			$	1,224,227			$	1,216,609
Less: preferred stock		(110,927	)			(110,927	)			(110,927	)			(110,927	)			(110,927	)
Common equity	$	1,142,012			$	1,130,777			$	1,128,569			$	1,113,300			$	1,105,682
Less: intangible assets		(212,732	)			(213,011	)			(213,307	)			(213,604	)			(213,925	)
Tangible common equity	$	929,280			$	917,766			$	915,262			$	899,696			$	891,757

Total assets	$	9,759,255			$	9,879,600			$	9,639,603			$	9,723,731			$	9,853,964
Less: intangible assets		(212,732	)			(213,011	)			(213,307	)			(213,604	)			(213,925	)
Tangible assets	$	9,546,523			$	9,666,589			$	9,426,296			$	9,510,127			$	9,640,039

Common shares outstanding		38,469,975				38,370,317				38,368,217				38,365,069				38,333,053

Common equity ratio (GAAP)		11.70	%			11.45	%			11.71	%			11.45	%			11.22
Tangible common equity ratio (non-GAAP) ⁽⁷⁾		9.73				9.49				9.71				9.46				9.25

Regulatory capital ratios (Bancorp):
Leverage ratio		11.33	%			11.33	%			11.10	%			10.97	%			10.73
Common equity Tier 1 risk-based ratio		11.14				10.97				11.07				10.90				10.70
Risk-based Tier 1 capital ratio		12.46				12.29				12.42				12.25				12.03
Risk-based total capital ratio		14.29				14.11				14.29				14.10				13.88

Regulatory capital ratios (Bank):
Leverage ratio		11.67	%			11.66	%			11.43	%			11.29	%			11.10
Common equity Tier 1 risk-based ratio		12.82				12.63				12.79				12.60				12.43
Risk-based Tier 1 capital ratio		12.82				12.63				12.79				12.60				12.43
Risk-based total capital ratio		13.79				13.60				13.77				13.58				13.41

Book value per share (GAAP)	$	29.69			$	29.47			$	29.41			$	29.02			$	28.84
Tangible book value per share (non-GAAP) ⁽⁸⁾		24.16				23.92				23.85				23.45				23.26

Net Loan Charge-offs (Recoveries):
Net loan charge-offs (recoveries):
Charge-offs	$	3,555			$	3,363			$	3,559			$	3,595			$	3,185
Recoveries		(155	)			(29	)			(53	)			(324	)			(23	)
Net loan charge-offs	$	3,400			$	3,334			$	3,506			$	3,271			$	3,162
Net loan charge-offs as a % of average loans receivable (annualized)		0.17	%			0.16	%			0.17	%			0.16	%			0.15

Asset Quality
Nonaccrual loans	$	49,860			$	57,310			$	51,300			$	46,026			$	47,438
Other real estate owned		–				–				–				–				–
Nonperforming assets	$	49,860			$	57,310			$	51,300			$	46,026			$	47,438

Allowance for credit losses – loans (“ACL”)	$	82,403			$	82,685			$	82,494			$	82,077			$	82,869
Loans receivable		8,201,134				8,274,810				8,111,976				8,157,903				8,297,957

Nonaccrual loans as a % of loans receivable		0.61		%		0.69		%		0.63		%		0.56	%			0.57
Nonperforming assets as a % of total assets		0.51				0.58				0.53				0.47				0.48
ACL as a % of loans receivable		1.00				1.00				1.02				1.01				1.00
ACL as a % of nonaccrual loans		165.3				144.3				160.8				178.3				174.7

⁽⁷⁾ Tangible common equity divided by tangible assets
⁽⁸⁾ Tangible common equity divided by common shares outstanding at period-end

CONNECTONE BANCORP, INC.
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	March 31, 2025								December 31, 2024									March 31, 2024
	Average									Average									Average
Interest-earning assets:	Balance			Interest			Rate ⁽⁷⁾			Balance			Interest			Rate ⁽⁷⁾			Balance			Interest			Rate ⁽⁷⁾
Investment securities ^{(1) (2)}	$	745,873		$	6,375		3.47	%		$	736,131		$	6,207		3.35	%		$	720,303		$	5,794		3.24	%
Loans receivable and loans held-for-sale ^{(2) (3) (4)}		8,209,014			115,883		5.73				8,103,624			118,934		5.84				8,332,828			120,592		5.82
Federal funds sold and interest-
bearing deposits with banks		229,491			2,466		4.36				238,957			2,815		4.69				218,212			2,906		5.36
Restricted investment in bank stock		40,334			889		8.94				38,489			959		9.91				51,948			1,126		8.72
Total interest-earning assets		9,224,712			125,613		5.52				9,117,201			128,915		5.63				9,323,291			130,418		5.63
Allowance for loan losses		(84,027	)								(83,938	)								(84,005	)
Noninterest-earning assets		607,920									620,183									621,467
Total assets	$	9,748,605								$	9,653,446								$	9,860,753

Interest-bearing liabilities:
Money market deposits		1,572,287			11,287		2.91				1,642,737			12,694		3.07				1,571,640			13,191		3.38
Savings deposits		656,789			5,227		3.23				559,450			4,710		3.35				441,551			3,385		3.08
Time deposits		2,480,990			25,154		4.11				2,478,163			27,374		4.39				2,567,767			28,038		4.39
Other interest-bearing deposits		1,659,055			12,324		3.01				1,636,388			13,790		3.35				1,683,183			15,793		3.77
Total interest-bearing deposits		6,369,121			53,992		3.44				6,316,738			58,568		3.69				6,264,141			60,407		3.88

Borrowings		686,391			3,725		2.20				648,300			3,430		2.10				947,003			7,567		3.21
Subordinated debentures		79,988			1,298		6.58				79,862			1,305		6.50				79,483			1,311		6.63
Finance lease		1,210			18		6.03				1,280			19		5.91				1,483			22		5.97
Total interest-bearing liabilities		7,136,710			59,033		3.35				7,046,180			63,322		3.58				7,292,110			69,307		3.82

Noninterest-bearing demand deposits		1,305,722									1,304,699									1,254,201
Other liabilities		51,800									60,829									93,624
Total noninterest-bearing liabilities		1,357,522									1,365,528									1,347,825
Stockholders’ equity		1,254,373									1,241,738									1,220,818
Total liabilities and stockholders’ equity	$	9,748,605								$	9,653,446								$	9,860,753

Net interest income (tax equivalent basis)					66,580									65,593									61,111
Net interest spread ⁽⁵⁾							2.17	%								2.05	%								1.80	%

Net interest margin ⁽⁶⁾							2.93	%								2.86	%								2.64	%

Tax equivalent adjustment					(824	)								(882	)								(811	)
Net interest income				$	65,756								$	64,711								$	60,300

⁽¹⁾ Average balances are calculated on amortized cost.
⁽²⁾ Interest income is presented on a tax equivalent basis using 21% federal tax rate.
⁽³⁾ Includes loan fee income.
⁽⁴⁾ Loans include nonaccrual loans.
⁽⁵⁾ Represents difference between the average yield on interest-earning assets and the average cost of interest-bearing
liabilities and is presented on a tax equivalent basis.
⁽⁶⁾ Represents net interest income on a tax equivalent basis divided by average total interest-earning
assets.
⁽⁷⁾ Rates are annualized.

The MIL Network –

April 24, 2025

MIL-OSI: First Northwest Bancorp Reports First Quarter 2025 Improved Profitability

Source: GlobeNewswire (MIL-OSI)

PORT ANGELES, Wash., April 24, 2025 (GLOBE NEWSWIRE) — First Northwest Bancorp (Nasdaq: FNWB) (“First Northwest” or the “Company”) today reported net income of $1.5 million for the first quarter of 2025, compared to a net loss of $2.8 million for the fourth quarter of 2024 and net income of $396,000 for the first quarter of 2024. Basic and diluted income per share were $0.17 for the first quarter of 2025, compared to basic and diluted loss per share of $0.32 for the fourth quarter of 2024 and basic and diluted income per share of $0.04 for the first quarter of 2024.

In the first quarter of 2025, the Company recorded adjusted pre-tax, pre-provision net revenue (“PPNR”)⁽¹⁾ of $1.5 million, compared to $1.4 million for the preceding quarter and $1.2 million for the first quarter of 2024.

The Board of Directors of First Northwest declared a quarterly cash dividend of $0.07 per common share, payable on May 23, 2025, to shareholders of record as of the close of business on May 9, 2025.

Quote from First Northwest President and CEO, Matthew P. Deines:
“We were pleased to see improved profitability in the first quarter of 2025, which helped grow capital levels and tangible book value. We saw improvement on our asset quality metrics, with nonperforming loans 14% lower than the prior quarter, and remain focused on continued asset quality improvement over the balance of 2025. Core commercial and consumer customer growth was positive during the first quarter, with lower net loans and deposits largely the result of a decrease in funding to one large wholesale relationship and reduced brokered deposit balances. We expect better core growth and asset quality trends, combined with ongoing expense discipline and modest margin improvement, will continue to improve profitability and capital in future quarters. With improved profitability, we are evaluating the potential for future stock buybacks.”

Key Points for First Quarter and Going Forward

Positive Balance Sheet Trends:

A favorable deposit mix shift included a $45.0 million decrease in brokered deposits while core customer deposits grew $23.0 million. The loan-to-deposit ratio was stable at 99.9% compared to 99.3% in the fourth quarter of 2024.
The Company reduced borrowings by $28.9 million. The total cost of funds decreased to 2.67% compared to 2.80% in the fourth quarter of 2024.

Update on provision for credit losses:

The Company recorded a $1.6 million provision for credit losses on loans in the first quarter of 2025, primarily due to $1.4 million of charge-offs related to three commercial business loans, one commercial construction loan and a small number of consumer loans. This compares to loan credit loss provisions of $3.8 million for the preceding quarter and $1.2 million for the first quarter of 2024.
We believe the reserve on individually analyzed loans does not represent a universal decline in the collectability of all loans in the portfolio. We continue to work on resolution plans for all troubled borrowers and expect further improvement in nonperforming loans over the course of 2025.

Other significant events:

First Fed Bank’s (“First Fed” or the “Bank”) balance sheet restructuring continued with the remaining bank-owned life insurance policy (“BOLI”) surrender transaction recorded in the first quarter of 2025, with $266,000 of tax and penalties recorded in the provision for income tax. The surrendered policy value was reinvested in the second quarter of 2025. We expect to receive the return of the surrendered funds early in the third quarter of 2025.
We sadly lost a former Bank employee in the first quarter of 2025, resulting in a $1.1 million BOLI death benefit gain.
The Company recorded a $846,000 gain on extinguishment of debt related to repurchasing $5.0 million of subordinated debt at a discount during the first quarter of 2025. In addition to the current quarter gain, the future cost related to interest expense on the subordinated debt will be reduced.
The Company also recognized a $315,000 gain on the conversion of a commercial business loan receivable into a Series A equity investment during the first quarter of 2025.

(1) See reconciliation of Non-GAAP Financial Measures later in this release.

Selected Quarterly Financial Ratios:

	As of or For the Quarter Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Performance ratios: ⁽¹⁾
Return on average assets		0.28	%		-0.51	%		-0.36	%		-0.40	%		0.07	%
Adjusted PPNR return on average assets ⁽²⁾		0.27			0.26			0.17			0.10			0.22
Return on average equity		3.92			-6.92			-4.91			-5.47			0.98
Net interest margin ⁽³⁾		2.76			2.73			2.70			2.76			2.76
Efficiency ratio ⁽⁴⁾		79.4			92.2			100.3			72.3			88.8
Equity to total assets		7.22			6.89			7.13			7.17			7.17
Book value per common share	$	16.63		$	16.45		$	17.17		$	16.81		$	17.00
Tangible performance ratios: ⁽¹⁾
Tangible common equity to tangible assets ⁽²⁾		7.15	%		6.83	%		7.06	%		7.10	%		7.10	%
Return on average tangible common equity ⁽²⁾		3.96			-6.99			-4.96			-5.53			0.99
Tangible book value per common share ⁽²⁾	$	16.48		$	16.29		$	17.00		$	16.64		$	16.83
Capital ratios (First Fed): ⁽⁵⁾
Tier 1 leverage		9.5	%		9.4	%		9.4	%		9.4	%		9.7	%
Common equity Tier 1 capital		12.7			12.4			12.2			12.4			12.6
Total risk-based		13.9			13.6			13.4			13.5			13.6

(1	)	Performance ratios are annualized, where appropriate.
(2	)	See reconciliation of Non-GAAP Financial Measures later in this release.
(3	)	Net interest income divided by average interest-earning assets.
(4	)	Total noninterest expense as a percentage of net interest income and total other noninterest income.
(5	)	Current period capital ratios are preliminary and subject to finalization of the FDIC Call Report.

Adjusted Pre-tax, Pre-Provision Net Revenue ⁽¹⁾

Adjusted PPNR for the first quarter of 2025 increased $40,000 to $1.5 million, compared to $1.4 million for the preceding quarter, and increased $308,000 from $1.2 million in the first quarter one year ago.

	For the Quarter Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Net interest income	$	13,847	$	14,137		$	14,020		$	14,235		$	13,928
Total noninterest income		4,092		1,300			1,779			7,347			2,188
Total revenue		17,939		15,437			15,799			21,582			16,116
Total noninterest expense		14,249		14,233			15,848			15,609			14,303
PPNR ⁽¹⁾		3,690		1,204			(49	)		5,973			1,813
Less selected nonrecurring adjustments to PPNR:
BOLI death benefit		1,059		1,536			—			—			—
Gain on extinguishment of subordinated debt included in other income		846		—			—			—			—
Gain on conversion of loan receivable into Series A equity investment		315		—			—			—			—
Equity investment repricing adjustment		—		(1,762	)		—			—			651
One-time compensation payouts related to reduction in force		—		—			(996	)		—			—
Net gain on sale of premises and equipment		—		—			—			7,919			—
Sale leaseback taxes and assessments included in occupancy and equipment		—		—			—			(359	)		—
Net gain on sale of investment securities		—		—			—			(2,117	)		—
Adjusted PPNR ⁽¹⁾	$	1,470	$	1,430		$	947		$	530		$	1,162

(1) See reconciliation of Non-GAAP Financial Measures later in this release.

Total interest income decreased $1.4 million to $26.8 million for the first quarter of 2025, compared to $28.2 million for the previous quarter, and decreased $503,000 compared to $27.3 million in the first quarter of 2024. Interest income decreased in the first quarter of 2025 primarily due to a decrease in the income earned on loans receivable and reduced interest income received on Company deposit accounts as both yields earned and average volumes decreased. Average loan balances and related interest income were impacted by a significant decrease in the Northpointe Bank Mortgage Purchase Program (“Northpointe Bank MPP”) of $24.7 million and $461,000, respectively. Variable-rate yields on loans and investments were impacted by the cumulative 100 basis points Federal Reserve rate cuts which occurred between September and December 2024.
Total interest expense decreased $1.1 million to $13.0 million for the first quarter of 2025, compared to $14.1 million for the previous quarter, and decreased $422,000 compared to $13.4 million in the first quarter of 2024. Interest expense decreased in the first quarter of 2025 primarily due to decreases in interest paid on brokered certificates of deposit (“CDs”), money market accounts and customer CDs.
The net interest margin increased to 2.76% for the first quarter of 2025, from 2.73% for the prior quarter, and was flat compared to the first quarter of 2024. The Company reported reduced rates and declining volumes of CDs and money market accounts during the first quarter of 2025 which lowered costs; however, these savings were partially offset by a decrease in interest earned on loans and an increase in cost due to higher average borrowings.
Noninterest income included a $1.1 million BOLI death benefit payment received due to the passing of a former employee, a $846,000 gain on extinguishment of debt and a $315,000 gain on the conversion of a loan receivable into an equity investment during the current quarter.
Noninterest expense was relatively unchanged at $14.3 million for the first quarter of 2025, compared to the previous quarter and the first quarter of 2024.

Allowance for Credit Losses on Loans (“ACLL”) and Credit Quality

The allowance for credit losses on loans (“ACLL”) increased $176,000 to $20.6 million at March 31, 2025, from $20.5 million at December 31, 2024. The ACLL as a percentage of total loans was 1.24% at March 31, 2025, an increase from 1.21% at December 31, 2024, and an increase from 1.05% one year earlier. The small increase to the pooled loan reserve combined with charge-offs totaling $1.4 million resulted in a provision expense of $1.6 million for the quarter ended March 31, 2025.

Nonperforming loans totaled $26.4 million at March 31, 2025, a decrease of $4.1 million, or 13.5%, from December 31, 2024. ACLL to nonperforming loans increased to 78% at March 31, 2025, from 67% at December 31, 2024, and decreased from 92% at March 31, 2024. This ratio increased during the first quarter as principal payments and charge-offs decreased balances on loans that were already adequately reserved.

Classified loans decreased $4.7 million to $37.9 million at March 31, 2025, from $42.5 million at December 31, 2024, primarily due to $3.9 million in principal payments received on two commercial construction loans and charge-offs totaling $825,000 on two commercial business loans and one commercial construction loan during the first quarter. An $8.1 million construction loan relationship, which became a classified loan in the fourth quarter of 2022; a $7.2 million commercial construction loan relationship, which became classified in the second quarter of 2024; and a $6.2 million commercial loan relationship, which became classified in the fourth quarter of 2023, account for 57% of the classified loan balance at March 31, 2025. The Bank has exercised legal remedies, including the appointment of a third-party receiver and foreclosure actions, to liquidate the underlying collateral to satisfy the real estate loans in two of these three collateral-dependent relationships. The Bank is also closely monitoring a group of commercial business loans that have similar collateral, with 16 loans totaling $1.7 million included in classified loans at March 31, 2025, and an additional seven loans totaling $2.4 million included in the special mention risk grading category.

	For the Quarter Ended
ACLL ($ in thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Balance at beginning of period	$	20,449		$	21,970		$	19,343		$	17,958		$	17,510
Charge-offs:
Construction and land		(374	)		(411	)		—			(3,978	)		—
Auto and other consumer		(243	)		(364	)		(492	)		(832	)		(806	)
Commercial business		(811	)		(4,596	)		(24	)		(2,643	)		(33	)
Total charge-offs		(1,428	)		(5,371	)		(516	)		(7,453	)		(839	)
Recoveries:
One-to-four family		—			—			42			—			2
Commercial real estate		6			2			—			—			—
Auto and other consumer		43			52			24			198			46
Commercial business		2			36			—			—			—
Total recoveries		51			90			66			198			48
Net loan charge-offs		(1,377	)		(5,281	)		(450	)		(7,255	)		(791	)
Provision for credit losses		1,553			3,760			3,077			8,640			1,239
Balance at end of period	$	20,625		$	20,449		$	21,970		$	19,343		$	17,958

Average total loans		1,662,164			1,708,232			1,718,402			1,717,830			1,678,656
Annualized net charge-offs to average outstanding loans		0.34	%		1.23	%		0.10	%		1.70	%		0.19	%

Asset Quality ($ in thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Nonaccrual loans:
One-to-four family	$	1,404		$	1,477		$	1,631		$	1,750		$	1,237
Multi-family		—			—			—			708			708
Commercial real estate		5,574			5,598			5,634			14			22
Construction and land		15,280			19,544			19,382			19,292			14,440
Home equity		54			55			116			118			121
Auto and other consumer		710			700			894			746			1,012
Commercial business		3,365			3,141			2,719			1,003			1,941
Total nonaccrual loans		26,387			30,515			30,376			23,631			19,481
Other real estate owned		—			—			—			—			—
Total nonperforming assets	$	26,387		$	30,515		$	30,376		$	23,631		$	19,481

Nonaccrual loans as a % of total loans ⁽¹⁾		1.59	%		1.80	%		1.75	%		1.39	%		1.14	%
Nonperforming assets as a % of total assets ⁽²⁾		1.21			1.37			1.35			1.07			0.87
ACLL as a % of total loans		1.24			1.21			1.27			1.14			1.05
ACLL as a % of nonaccrual loans		78.16			67.01			72.33			81.85			92.18
Total past due loans to total loans		1.74			1.98			1.92			1.45			1.91

(1	)	Nonperforming loans consists of nonaccruing loans and accruing loans more than 90 days past due.
(2	)	Nonperforming assets consists of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), real estate owned and repossessed assets.

Financial Condition and Capital

Investment securities decreased $24.9 million, or 7.3%, to $315.4 million at March 31, 2025, compared to $340.3 million three months earlier, and decreased $10.5 million compared to $326.0 million at March 31, 2024. The market value of the portfolio increased $3.1 million during the first quarter of 2025. The estimated average life of the securities portfolio was approximately 6.9 years at March 31, 2025, 6.9 years at the prior quarter end and 7.8 years at the end of the first quarter of 2024. The effective duration of the portfolio was approximately 4.3 years at March 31, 2025, compared to 3.9 years at the prior quarter end and 4.4 years at the end of the first quarter of 2024. The MBS non-agency portfolio decreased $20.2 million due to early redemptions and maturities and $2.4 million from regular repayment activity during the most recent quarter.

Investment Securities ($ in thousands)		March 31, 2025		December 31, 2024		March 31, 2024	Three Month % Change		One Year % Change
Available for Sale at Fair Value
Municipal bonds	$	78,295	$	77,876	$	87,004	0.5	%	-10.0	%
U.S. government agency issued asset-backed securities (ABS agency)		12,643		12,876		14,822	-1.8		-14.7
Corporate issued asset-backed securities (ABS corporate)		15,671		16,122		13,929	-2.8		12.5
Corporate issued debt securities (Corporate debt)		55,067		54,491		53,031	1.1		3.8
U.S. Small Business Administration securities (SBA)		8,061		8,666		7,911	-7.0		1.9
Mortgage-backed securities:
U.S. government agency issued mortgage-backed securities (MBS agency)		96,642		98,697		83,271	-2.1		16.1
Non-agency issued mortgage-backed securities (MBS non-agency)		49,054		71,616		65,987	-31.5		-25.7
Total securities available for sale	$	315,433	$	340,344	$	325,955	-7.3		-3.2

Net loans, excluding loans held for sale, decreased $31.4 million, or 1.9%, to $1.64 billion at March 31, 2025, from $1.68 billion at December 31, 2024, and decreased $49.0 million, or 2.9%, from $1.69 billion one year prior. Construction loans that converted into fully amortizing loans during the quarter totaled $13.3 million. Loan payoffs of $71.0 million, regular payments of $29.4 million and charge-offs totaling $1.4 million outpaced new loan funding totaling $45.3 million and draws on existing loans totaling $23.3 million. The large decrease in commercial business loans was due to the change in funding needs of the Northpointe Bank MPP, which dropped $36.2 million compared to the prior quarter.

Loans ($ in thousands)		March 31, 2025			December 31, 2024		March 31, 2024	Three Month % Change		One Year % Change
Real Estate:
One-to-four family	$	394,428		$	395,315	$	383,905	-0.2	%	2.7	%
Multi-family		338,147			332,596		339,538	1.7		-0.4
Commercial real estate		392,882			390,379		385,130	0.6		2.0
Construction and land		64,877			78,110		125,347	-16.9		-48.2
Total real estate loans		1,190,334			1,196,400		1,233,920	-0.5		-3.5
Consumer:
Home equity		79,151			79,054		72,391	0.1		9.3
Auto and other consumer		273,878			268,876		268,834	1.9		1.9
Total consumer loans		353,029			347,930		341,225	1.5		3.5
Commercial business		120,486			151,493		136,297	-20.5		-11.6
Total loans receivable		1,663,849			1,695,823		1,711,442	-1.9		-2.8
Less:
Derivative basis adjustment		(566	)		188		710	-401.1		-179.7
Allowance for credit losses on loans		20,625			20,449		17,958	0.9		14.9
Total loans receivable, net	$	1,643,790		$	1,675,186	$	1,692,774	-1.9		-2.9

Total deposits decreased $22.0 million to $1.67 billion at March 31, 2025, compared to $1.69 billion at December 31, 2024, and was relatively unchanged compared to one year prior. During the first quarter of 2025, total customer deposit balances increased $23.0 million and brokered deposit balances decreased $45.0 million. Overall, the current rate environment continues to contribute to greater competition for deposits leading to higher rates paid on interest-bearing demand deposits and savings accounts during the current quarter. The deposit mix compared to March 31, 2024, also reflects a shift to higher demand and money market account balances with increased rates paid on those accounts while rates paid on certificate and savings accounts decreased.

Deposits ($ in thousands)		March 31, 2025		December 31, 2024		March 31, 2024	Three Month % Change		One Year % Change
Noninterest-bearing demand deposits	$	247,890	$	256,416	$	252,761	-3.3	%	-1.9	%
Interest-bearing demand deposits		169,912		164,891		170,729	3.0		-0.5
Money market accounts		424,469		413,822		395,480	2.6		7.3
Savings accounts		235,188		205,055		236,550	14.7		-0.6
Certificates of deposit, customer		450,663		464,928		418,904	-3.1		7.6
Certificates of deposit, brokered		137,946		182,914		192,200	-24.6		-28.2
Total deposits	$	1,666,068	$	1,688,026	$	1,666,624	-1.3		0.0

Total shareholders’ equity increased to $157.0 million at March 31, 2025, compared to $153.9 million three months earlier, due to an increase in the after-tax fair market values of the available-for-sale investment securities portfolio of $2.4 million and net income of $1.5 million, partially offset by dividends declared of $656,000 and a decrease in the after-tax fair market values of derivatives of $425,000.

Capital levels for both the Company and the Bank remain in excess of applicable regulatory requirements and the Bank was categorized as “well-capitalized” at March 31, 2025. Preliminary calculations of Common Equity Tier 1 and Total Risk-Based Capital Ratios at March 31, 2025, were 12.7% and 13.9%, respectively.

First Northwest continued to return capital to our shareholders through cash dividends during the first quarter of 2025. The Company paid cash dividends totaling $649,000 in the first quarter of 2025. No shares of common stock were repurchased under the Company’s April 2024 Stock Repurchase Plan (the “Repurchase Plan”) during the quarter ended March 31, 2025. There are 846,123 shares that remain available for repurchase under the Repurchase Plan.

We recommend reading this earnings release in conjunction with the First Quarter 2025 Investor Presentation, located at http://investor.ourfirstfed.com/quarterly-reports and included as an exhibit to our April 24, 2025, Current Report on Form 8-K.

About the Company
First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently First Fed has 18 locations in Washington state including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. The Company is headquartered in Port Angeles, Washington.

Forward-Looking Statements
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, projections of future performance and execution on certain strategies, perceived opportunities in the market, potential future credit experience, including our ability to collect, the outcome of litigation and statements regarding our mission and vision, and include, but are not limited to, statements about our plans, objectives, expectations and intentions that are not historical facts, and other statements often identified by words such as “believes,” “expects,” “anticipates,” “estimates,” or similar expressions. These forward-looking statements are based upon current management beliefs and expectations and may, therefore, involve risks and uncertainties, many of which are beyond our control. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety of factors including, but not limited to: increased competitive pressures; changes in the interest rate environment; the credit risks of lending activities; pressures on liquidity, including as a result of withdrawals of deposits or declines in the value of our investment portfolio; changes in general economic conditions and conditions within the securities markets, including potential recessionary and other unfavorable conditions and trends relating to housing markets, costs of living, unemployment levels, interest rates, supply chain difficulties and inflationary pressures, among other things; legislative, regulatory, and policy changes; and other factors described in the Company’s latest Annual Report on Form 10-K under the section entitled “Risk Factors,” and other filings with the Securities and Exchange Commission (“SEC”),which are available on our website at www.ourfirstfed.com and on the SEC’s website at www.sec.gov.

Any of the forward-looking statements that we make in this press release and in the other public statements we make may turn out to be incorrect because of the inaccurate assumptions we might make, because of the factors illustrated above or because of other factors that we cannot foresee. Because of these and other uncertainties, our actual future results may be materially different from those expressed or implied in any forward-looking statements made by or on our behalf and the Company’s operating and stock price performance may be negatively affected. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. These risks could cause our actual results for 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us and could negatively affect the Company’s operations and stock price performance.

For More Information Contact:
Matthew P. Deines, President and Chief Executive Officer
Phyllis Nomura, EVP and Chief Financial Officer
IRGroup@ourfirstfed.com
360-457-0461

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share data) (Unaudited)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
ASSETS
Cash and due from banks	$	18,911		$	16,811		$	17,953		$	19,184		$	15,562
Interest-earning deposits in banks		51,412			55,637			64,769			63,995			61,784
Investment securities available for sale, at fair value		315,433			340,344			310,860			306,714			325,955
Loans held for sale		2,940			472			378			1,086			988
Loans receivable (net of allowance for credit losses on loans $20,625, $20,449, $21,970, $19,343, and $17,958)		1,643,790			1,675,186			1,714,416			1,677,764			1,692,774
Federal Home Loan Bank (FHLB) stock, at cost		13,106			14,435			14,435			13,086			15,876
Accrued interest receivable		8,319			8,159			8,939			9,466			8,909
Premises held for sale, net		—			—			—			—			6,751
Premises and equipment, net		9,870			10,129			10,436			10,714			11,028
Servicing rights on sold loans, at fair value		3,301			3,281			3,584			3,740			3,820
Bank-owned life insurance, net		31,786			41,150			41,429			41,113			34,681
Equity and partnership investments		15,026			13,229			14,912			15,085			15,121
Goodwill and other intangible assets, net		1,082			1,082			1,083			1,084			1,085
Deferred tax asset, net		13,179			13,738			10,802			12,216			12,704
Right-of-use (“ROU”) asset, net		16,687			17,001			17,315			17,627			5,841
Prepaid expenses and other assets		31,588			21,352			24,175			23,088			27,141
Total assets	$	2,176,430		$	2,232,006		$	2,255,486		$	2,215,962		$	2,240,020

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	1,666,068		$	1,688,026		$	1,711,641		$	1,708,288		$	1,666,624
Borrowings		307,091			336,014			334,994			302,575			371,455
Accrued interest payable		2,163			3,295			2,153			3,143			2,830
Lease liability, net		17,266			17,535			17,799			18,054			6,227
Accrued expenses and other liabilities		24,217			31,770			25,625			23,717			29,980
Advances from borrowers for taxes and insurance		2,583			1,484			2,485			1,304			2,398
Total liabilities		2,019,388			2,078,124			2,094,697			2,057,081			2,079,514

Shareholders’ Equity
Preferred stock, $0.01 par value, authorized 5,000,000 shares, no shares issued or outstanding		—			—			—			—			—
Common stock, $0.01 par value, 75,000,000 shares authorized; issued and outstanding at each period end: 9,440,618; 9,353,348; 9,365,979; 9,453,247; and 9,442,796		94			93			94			94			94
Additional paid-in capital		93,450			93,357			93,218			93,985			93,763
Retained earnings		98,056			97,198			100,660			103,322			106,202
Accumulated other comprehensive loss, net of tax		(28,129	)		(30,172	)		(26,424	)		(31,597	)		(32,465	)
Unearned employee stock ownership plan (ESOP) shares		(6,429	)		(6,594	)		(6,759	)		(6,923	)		(7,088	)
Total shareholders’ equity		157,042			153,882			160,789			158,881			160,506
Total liabilities and shareholders’ equity	$	2,176,430		$	2,232,006		$	2,255,486		$	2,215,962		$	2,240,020

FIRST NORTHWEST BANCORP AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) (Unaudited)

	For the Quarter Ended
	March 31, 2025		December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
INTEREST INCOME
Interest and fees on loans receivable	$	22,231	$	23,716		$	23,536		$	23,733		$	22,767
Interest on investment securities		3,803		3,658			3,786			3,949			3,632
Interest on deposits in banks		482		550			582			571			645
FHLB dividends		307		273			302			358			282
Total interest income		26,823		28,197			28,206			28,611			27,326
INTEREST EXPENSE
Deposits		9,737		11,175			10,960			10,180			10,112
Borrowings		3,239		2,885			3,226			4,196			3,286
Total interest expense		12,976		14,060			14,186			14,376			13,398
Net interest income		13,847		14,137			14,020			14,235			13,928
PROVISION FOR CREDIT LOSSES
Provision for credit losses on loans		1,553		3,760			3,077			8,640			1,239
Provision for (recapture of) credit losses on unfunded commitments		15		(105	)		57			99			(269	)
Provision for credit losses		1,568		3,655			3,134			8,739			970
Net interest income after provision for credit losses		12,279		10,482			10,886			5,496			12,958
NONINTEREST INCOME
Loan and deposit service fees		1,106		1,054			1,059			1,076			1,102
Sold loan servicing fees and servicing rights mark-to-market		195		(115	)		10			74			219
Net gain on sale of loans		11		52			58			150			52
Net gain on sale of investment securities		—		—			—			(2,117	)		—
Net gain on sale of premises and equipment		—		—			—			7,919			—
Increase in cash surrender value of bank-owned life insurance		372		328			315			293			243
Income from death benefit on bank-owned life insurance, net		1,059		1,536			—			—			—
Other income (loss)		1,349		(1,555	)		337			(48	)		572
Total noninterest income		4,092		1,300			1,779			7,347			2,188
NONINTEREST EXPENSE
Compensation and benefits		7,715		7,367			8,582			8,588			8,128
Data processing		2,011		2,065			2,085			2,008			1,944
Occupancy and equipment		1,592		1,559			1,553			1,799			1,240
Supplies, postage, and telephone		298		296			360			317			293
Regulatory assessments and state taxes		479		460			548			457			513
Advertising		265		362			409			377			309
Professional fees		777		813			698			684			910
FDIC insurance premium		434		491			533			473			386
Other expense		678		820			1,080			906			580
Total noninterest expense		14,249		14,233			15,848			15,609			14,303
Income (loss) before provision for income taxes		2,122		(2,451	)		(3,183	)		(2,766	)		843
Provision for income taxes		608		359			(1,203	)		(547	)		447
Net income (loss)	$	1,514	$	(2,810	)	$	(1,980	)	$	(2,219	)	$	396

Basic and diluted earnings (loss) per common share	$	0.17	$	(0.32	)	$	(0.23	)	$	(0.25	)	$	0.04

FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited)

Selected Loan Detail	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Construction and land loans breakout
1-4 Family construction	$	42,371	$	39,319	$	43,125	$	56,514	$	69,075
Multifamily construction		9,223		15,407		29,109		43,341		45,776
Nonresidential construction		7,229		16,857		17,500		1,015		3,374
Land and development		6,054		6,527		5,975		6,403		7,122
Total construction and land loans	$	64,877	$	78,110	$	95,709	$	107,273	$	125,347

Auto and other consumer loans breakout
Triad Manufactured Home loans	$	134,740	$	128,231	$	129,600	$	110,510	$	119,309
Woodside auto loans		118,972		117,968		126,129		131,151		128,072
First Help auto loans		13,012		14,283		15,971		17,427		8,326
Other auto loans		1,313		1,647		2,064		2,690		3,313
Other consumer loans		5,841		6,747		7,434		23,845		9,814
Total auto and other consumer loans	$	273,878	$	268,876	$	281,198	$	285,623	$	268,834

Commercial business loans breakout
Northpointe Bank MPP	$	–	$	36,230	$	38,155	$	9,150	$	15,047
Secured lines of credit		39,986		35,701		37,686		28,862		41,014
Unsecured lines of credit		2,030		1,717		1,571		1,133		1,001
SBA loans		6,889		7,044		7,219		7,146		8,944
Other commercial business loans		71,581		70,801		70,696		70,803		70,291
Total commercial business loans	$	120,486	$	151,493	$	155,327	$	117,094	$	136,297

Loans by Collateral and Unfunded Commitments	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
One-to-four family construction	$	38,221	$	44,468	$	51,607	$	49,440	$	70,100
All other construction and land		30,947		34,290		45,166		58,346		55,286
One-to-four family first mortgage		428,081		466,046		469,053		434,840		436,543
One-to-four family junior liens		15,155		15,090		14,701		13,706		12,608
One-to-four family revolving open-end		51,832		51,481		48,459		44,803		45,536
Commercial real estate, owner occupied:
Health care		29,386		29,129		29,407		29,678		29,946
Office		19,363		17,756		17,901		19,215		17,951
Warehouse		14,843		14,948		11,645		14,613		14,683
Other		74,915		78,170		64,535		56,292		55,063
Commercial real estate, non-owner occupied:
Office		41,885		49,417		49,770		50,158		53,099
Retail		50,737		49,591		49,717		50,101		50,478
Hospitality		62,226		61,919		62,282		62,628		66,982
Other		93,549		81,640		82,573		84,428		93,040
Multi-family residential		339,217		333,419		354,118		350,382		339,907
Commercial business loans		76,330		77,381		86,904		79,055		90,781
Commercial agriculture and fishing loans		22,914		21,833		15,369		14,411		10,200
State and political subdivision obligations		369		369		404		405		405
Consumer automobile loans		133,209		133,789		144,036		151,121		139,524
Consumer loans secured by other assets		137,619		131,429		132,749		129,293		122,895
Consumer loans unsecured		3,051		3,658		4,411		5,209		6,415
Total loans	$	1,663,849	$	1,695,823	$	1,734,807	$	1,698,124	$	1,711,442

Unfunded commitments under lines of credit or existing loans	$	172,260	$	163,827	$	166,446	$	155,005	$	148,736

FIRST NORTHWEST BANCORP AND SUBSIDIARY NET INTEREST MARGIN ANALYSIS (Dollars in thousands) (Unaudited)

	Three Months Ended March 31,
	2025								2024
	Average			Interest					Average			Interest
	Balance			Earned/		Yield/			Balance			Earned/		Yield/
	Outstanding			Paid		Rate			Outstanding			Paid		Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable, net ^{(1) (2)}	$	1,642,007		$	22,231		5.49	%	$	1,661,420		$	22,767		5.51	%
Investment securities		333,208			3,803		4.63			307,490			3,632		4.75
FHLB dividends		13,609			307		9.15			12,328			282		9.20
Interest-earning deposits in banks		42,917			482		4.55			46,583			645		5.57
Total interest-earning assets ⁽³⁾		2,031,741			26,823		5.35			2,027,821			27,326		5.42
Noninterest-earning assets		143,033								138,366
Total average assets	$	2,174,774							$	2,166,187
Interest-bearing liabilities:
Interest-bearing demand deposits	$	168,414		$	260		0.63		$	165,379		$	187		0.45
Money market accounts		414,425			2,345		2.29			377,505			1,949		2.08
Savings accounts		216,499			783		1.47			235,784			953		1.63
Certificates of deposit, customer		451,936			4,522		4.06			437,525			4,494		4.13
Certificates of deposit, brokered		158,269			1,827		4.68			205,923			2,529		4.94
Total interest-bearing deposits ⁽⁴⁾		1,409,543			9,737		2.80			1,422,116			10,112		2.86
Advances		279,500			2,796		4.06			252,912			2,892		4.60
Subordinated debt		38,370			443		4.68			39,446			394		4.02
Total interest-bearing liabilities		1,727,413			12,976		3.05			1,714,474			13,398		3.14
Noninterest-bearing deposits ⁽⁴⁾		243,569								249,283
Other noninterest-bearing liabilities		47,238								40,563
Total average liabilities		2,018,220								2,004,320
Average equity		156,554								161,867
Total average liabilities and equity	$	2,174,774							$	2,166,187

Net interest income				$	13,847							$	13,928
Net interest rate spread							2.30								2.28
Net earning assets	$	304,328							$	313,347
Net interest margin ⁽⁵⁾							2.76								2.76
Average interest-earning assets to average interest-bearing liabilities		117.6	%							118.3	%

(1)	The average loans receivable, net balances include nonaccrual loans.
(2)	Interest earned on loans receivable includes net deferred costs of ($338,000) and ($171,000) for the three months ended March 31, 2025 and 2024, respectively.
(3)	Includes interest-earning deposits (cash) at other financial institutions.
(4)	Cost of all deposits, including noninterest-bearing demand deposits, was 2.39% and 2.43% for the three months ended March 31, 2025 and 2024, respectively.
(5)	Net interest income divided by average interest-earning assets.

FIRST NORTHWEST BANCORP AND SUBSIDIARY
ADDITIONAL INFORMATION
(Dollars in thousands) (Unaudited)

Non-GAAP Financial Measures
This press release contains financial measures that are not in conformity with generally accepted accounting principles in the United States of America (“GAAP”). Non-GAAP measures are presented where management believes the information will help investors understand the Company’s results of operations or financial position and assess trends. Where non-GAAP financial measures are used, the comparable GAAP financial measure is also provided. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, and are not necessarily comparable to non-GAAP performance measures that may be presented by other companies. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons. Reconciliations of the GAAP and non-GAAP measures are presented below.

Calculations Based on PPNR and Adjusted PPNR:

	For the Quarter Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Net income (loss)	$	1,514		$	(2,810	)	$	(1,980	)	$	(2,219	)	$	396
Plus: provision for credit losses		1,568			3,655			3,134			8,739			970
Provision for income taxes		608			359			(1,203	)		(547	)		447
PPNR ⁽¹⁾		3,690			1,204			(49	)		5,973			1,813
Less selected nonrecurring adjustments to PPNR:
BOLI death benefit		1,059			1,536			—			—			—
Gain on extinguishment of subordinated debt included in other income		846			—			—			—			—
Gain on conversion of loan receivable into Series A equity investment		315			—			—			—			—
Equity investment repricing adjustment		—			(1,762	)		—			—			651
One-time compensation payouts related to reduction in force		—			—			(996	)		—			—
Net gain on sale of premises and equipment		—			—			—			7,919			—
Sale leaseback taxes and assessments included in occupancy and equipment		—			—			—			(359	)		—
Net gain on sale of investment securities		—			—			—			(2,117	)		—
Adjusted PPNR ⁽¹⁾	$	1,470		$	1,430		$	947		$	530		$	1,162

Average total assets	$	2,174,774		$	2,205,502		$	2,209,333		$	2,219,370		$	2,166,187
Return on average assets (GAAP)		0.28	%		-0.51	%		-0.36	%		-0.40	%		0.07	%
PPNR return on average assets (Non-GAAP) ⁽¹⁾		0.69	%		0.22	%		-0.01	%		1.08	%		0.34	%
Adjusted PPNR return on average assets (Non-GAAP) ⁽¹⁾		0.27	%		0.26	%		0.17	%		0.10	%		0.22	%

(1)

PPNR removes the provisions for credit loss and income tax from net income. This removes potentially volatile estimates, providing a comparative amount limited to income and expense recorded during the period. Adjusted PPNR further removes large nonrecurring transactions recorded during the period. We believe these metrics provide comparative amounts for a better review of recurring net revenue.

FIRST NORTHWEST BANCORP AND SUBSIDIARY ADDITIONAL INFORMATION (Dollars in thousands) (Unaudited)

Calculations Based on Tangible Common Equity:

	For the Quarter Ended
(Dollars in thousands, except per share data)		March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total shareholders’ equity	$	157,042		$	153,882		$	160,789		$	158,881		$	160,506
Less: Goodwill and other intangible assets		1,082			1,082			1,083			1,084			1,085
Disallowed non-mortgage loan servicing rights		415			423			489			517			489
Total tangible common equity	$	155,545		$	152,377		$	159,217		$	157,280		$	158,932

Total assets	$	2,176,430		$	2,232,006		$	2,255,486		$	2,215,962		$	2,240,020
Less: Goodwill and other intangible assets		1,082			1,082			1,083			1,084			1,085
Disallowed non-mortgage loan servicing rights		415			423			489			517			489
Total tangible assets	$	2,174,933		$	2,230,501		$	2,253,914		$	2,214,361		$	2,238,446

Average shareholders’ equity	$	156,554		$	161,560		$	160,479		$	163,079		$	161,867
Less: Average goodwill and other intangible assets		1,082			1,083			1,084			1,085			1,085
Average disallowed non-mortgage loan servicing rights		423			489			517			489			481
Total average tangible common equity	$	155,049		$	159,988		$	158,878		$	161,505		$	160,301

Net income (loss)	$	1,514		$	(2,810	)	$	(1,980	)	$	(2,219	)	$	396
Common shares outstanding		9,440,618			9,353,348			9,365,979			9,453,247			9,442,796
GAAP Ratios:
Equity to total assets		7.22	%		6.89	%		7.13	%		7.17	%		7.17	%
Return on average equity		3.92	%		-6.92	%		-4.91	%		-5.47	%		0.98	%
Book value per common share	$	16.63		$	16.45		$	17.17		$	16.81		$	17.00
Non-GAAP Ratios:
Tangible common equity to tangible assets ⁽¹⁾		7.15	%		6.83	%		7.06	%		7.10	%		7.10	%
Return on average tangible common equity ⁽¹⁾		3.96	%		-6.99	%		-4.96	%		-5.53	%		0.99	%
Tangible book value per common share ⁽¹⁾	$	16.48		$	16.29		$	17.00		$	16.64		$	16.83

(1

)

We believe that the use of tangible equity and tangible assets improves the comparability to other institutions that have not engaged in acquisitions that resulted in recorded goodwill and other intangibles.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/d5c93711-67c1-4664-a49c-37df22040147

https://www.globenewswire.com/NewsRoom/AttachmentNg/4a3584b1-1204-464b-8080-7fcc46d66470

https://www.globenewswire.com/NewsRoom/AttachmentNg/37ce187a-5662-457d-bd13-66e409ac2710

https://www.globenewswire.com/NewsRoom/AttachmentNg/4b958691-2f11-4ceb-a89a-ab88b1b1d702

https://www.globenewswire.com/NewsRoom/AttachmentNg/7207465f-e4fb-4f05-8218-e87558fb913c

https://www.globenewswire.com/NewsRoom/AttachmentNg/1c8a4efe-4d1b-4b02-bdac-6fd686314c0b

The MIL Network –

April 24, 2025

MIL-OSI: Nasdaq Reports First Quarter 2025 Results; Diversified Business Model Driving Broad-Based Revenue Growth

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the first quarter of 2025.

First quarter 2025 net revenue¹ was $1.2 billion, an increase of 11% over the first quarter of 2024, or up 12.5% on an adjusted² basis. This included Solutions³ revenue growing 9%, or up 11% on an adjusted basis.
Annualized Recurring Revenue (ARR)⁴ of $2.8 billion increased 8% over the first quarter of 2024, or up 9% on an organic basis. Annualized SaaS revenue increased 14% and represented 37% of ARR.
Financial Technology revenue of $432 million increased 10% over the first quarter of 2024 with Financial Crime Management Technology revenue up 21%.
Index revenue of $193 million grew 14%, or 26% on an adjusted basis, with $86 billion of net inflows over the trailing twelve months and $27 billion in the first quarter of 2025.
GAAP diluted earnings per share grew 69% in the first quarter of 2025. Non-GAAP⁵ diluted earnings per share grew 24% in the first quarter of 2025.
In the first quarter of 2025, the company returned $138 million to shareholders through dividends and $115 million through repurchases of common stock. The company also repurchased $279 million of senior unsecured notes in the quarter.

First Quarter 2025 Highlights

(US$ millions, except per share)	1Q25	YoY change %	Adjusted YoY change %	Organic⁶YoY change %
Solutions revenue	$947	9%	11%	9%
Market Services net revenue	$281	19%	19%	19%
Net revenue	$1,237	11%	12%	11%
Non-GAAP operating income	$682	15%	17%	14%
ARR	$2,831	8%	9%	9%
GAAP diluted EPS	$0.68	69%
Non-GAAP diluted EPS	$0.79	24%		24%

Adena Friedman, Chair and CEO said, “Nasdaq’s first quarter results underscore the resilience of our business model and our ability to deliver growth across our divisions in a rapidly shifting environment.

As a trusted partner and platform company, we are empowering our clients to address their most pressing risks and challenges and confidently navigate complex macroeconomic conditions. With our portfolio of complementary, mission-critical solutions, we are well-positioned to deliver sustainable growth through 2025 and the medium-term.”

Sarah Youngwood, Executive Vice President and CFO said, “Nasdaq delivered one of its strongest quarters yet, with all three divisions achieving robust revenue growth and contributing to stellar EPS growth. We demonstrated strong operating leverage and our high level of cash flow enabled us to make meaningful progress on our capital allocation strategy of investing in organic growth, reducing debt, and repurchasing shares.

We are grateful for our clients’ trust and remain focused on supporting them in these times of uncertainty, executing on our growth opportunities, and continuing to delever while making focused strategic investments to capitalize on our compelling organic growth opportunity.”

FINANCIAL REVIEW

First quarter 2025 net revenue was $1,237 million, reflecting 11% growth versus the prior year period. Adjusted net revenue growth was 12.5%.
Solutions revenue was $947 million in the first quarter of 2025, up 9% versus the prior year period, or up 11% on an adjusted basis, reflecting strong growth from Index and Financial Technology.
ARR grew 8% year-over-year, or 9% on an organic basis, in the first quarter of 2025 with 11% ARR growth for Financial Technology, or 12% on an organic basis, and 5% ARR growth for Capital Access Platforms.
Market Services net revenue was $281 million in the first quarter of 2025, up 19% versus the prior year period.
First quarter 2025 GAAP operating expenses were $690 million, a decrease of 3% versus the prior year period. The decrease in the first quarter was primarily due to lower expenses related to general and administrative expenses, lower restructuring costs, and lower compensation and benefits, partially offset by an increase in merger and strategic initiative costs.
First quarter 2025 non-GAAP operating expenses were $555 million, reflecting 6% growth versus the prior year period, or 7% growth on an organic basis. The organic increase for the quarter reflected growth driven by increased investments in technology and people to drive innovation and long-term growth, partially offset by the benefit of synergies.
Cash flow from operations was $663 million for the first quarter enabling the company to make continued progress on its deleveraging plan. In the first quarter of 2025, the company returned $138 million to shareholders through dividends and $115 million through repurchases of common stock. As of March 31, 2025, there was $1.6 billion remaining under the board authorized share repurchase program. The company also repurchased $279 million of senior unsecured notes for a net purchase price of $257 million in the first quarter of 2025.

2025 EXPENSE AND TAX GUIDANCE UPDATE⁷

The company is updating its 2025 non-GAAP operating expense guidance to a range of $2,265 million to $2,325 million, and is maintaining its 2025 non-GAAP tax rate guidance in the range of 22.5% to 24.5%.

STRATEGIC AND BUSINESS UPDATES

Financial Technology delivered durable and broad-based ARR growth. The One Nasdaq go to market strategy is elevating client engagement and driving product adoption resulting in robust ARR growth. FinTech ARR grew 12% on an organic basis in the first quarter with 40 new clients, 92 upsells, and 2 cross-sells. First quarter highlights included:
- Financial Crime Management Technology revenue growth reflects momentum across both enterprise and small-and-medium bank (SMB) clients. Nasdaq Verafin secured several strategic first quarter wins including a cross-sell to a Tier 2 AxiomSL client and an upsell to a Tier 2 bank client, reflecting early progress on its land and expand enterprise client strategy. The business also added 35 new SMB clients in the first quarter, a 25% increase in new client signings over the prior year quarter. Nasdaq Verafin’s ongoing client growth is contributing to the growth and power of its data consortium, which now includes clients holding more than $10 trillion in total assets.
- Regulatory Technology achieved solid ARR growth as our solutions helped clients navigate elevated market activity. AxiomSL signed a new large digital bank client and continued its momentum with existing clients with 22 upsells in the first quarter, including a strategic deal with a large Tier 1 U.S. financial institution. The Tier 1 client expanded its suite of AxiomSL services by incorporating a broker-dealer solution alongside their existing U.S., European, and Asian reporting modules. Surveillance signed 4 new clients in the quarter, including a European regulator, a crypto marketplace, an energy trading firm, and a broker-dealer.
- Capital Markets Technology signed multiple strategic deals amid the market modernization megatrend. Strong execution and secular tailwinds are fueling new wins across the subdivision with Calypso completing 25 upsells and Market Technology signing 17 upsells in the first quarter. Market Technology also had a cross-sell to nuam, a consolidated market operator spanning Peru, Chile, and Colombia. In the first quarter, nuam selected Nasdaq’s newly launched trade, clearing, and central securities depositories (CSD) intelligence solution after signing Nasdaq’s Trade Multi Matching Engine in late 2023 and its member countries standardizing on Nasdaq’s CSD platform in December 2024.
Investments in Index powered alpha-driven revenue growth. Index had $27 billion in net inflows in the first quarter with average ETP AUM reaching $662 billion, to achieve a sixth consecutive record quarter, despite a more volatile market backdrop. Index’s performance reflects ongoing execution of its growth strategy of new product innovation, international diversification, and institutional client expansion. In the first quarter, Nasdaq launched 30 new Index products, including 10 international products, 7 in the institutional insurance annuity space, and 16 launched in partnership with new Index clients. New product launches have been a strong growth driver for Index and products launched since 2020 have accounted for 33% of net inflows over the last 5 years.
Nasdaq maintained listing leadership and passed $3 trillion of market value in cumulative transfers. During the quarter, Nasdaq welcomed 45 operating company listings that raised nearly $5 billion of proceeds, contributing to an 82% win rate of eligible operating companies in the quarter. First quarter wins included 3 of the quarter’s top 5 offerings, CoreWeave, SailPoint, and Smithfield Foods. In the first quarter, the company exceeded $3 trillion in combined market value for total listing transfers since Nasdaq first launched its switch program in 2005. Nasdaq welcomed 7 high-profile transfers in the quarter, including Shopify, Thomson Reuters, and Domino’s Pizza, that added over $230 billion in market value.
Market Services delivered record net revenues with record cash equities and derivatives volumes in the U.S. Within the recent market volatility, Nasdaq achieved U.S. record volumes in cash equities and equity options, including index options, in the first quarter. Nasdaq also extended its leadership in on-exchange trading with U.S. cash equities market share increasing year-over-year and sequentially. During the first quarter, Nasdaq’s North American markets experienced extraordinary message traffic, which reached a record of more than 425 billion messages⁸ in a day.
Nasdaq aims to expand U.S. market access to 24/5 trading in the second half of 2026. The planned launch of 24-hour trading on the Nasdaq Stock Market will broaden investor access and wealth-building opportunities globally, including in Asia, where demand for Nasdaq-listed stocks is accelerating. Nasdaq’s timeline is subject to regulatory approval and alignment with the industry participants.
Nasdaq and Amazon Web Services signed an enhanced agreement to amplify their prior partnership. The partnership aims to benefit both the Market Services and Financial Technology divisions and advance Nasdaq’s vision to be the trusted fabric of the world’s financial system. Nasdaq plans to offer its financial services clients new cloud-based solutions in phases. The initial phase focuses on providing market operators with public and hybrid cloud infrastructure, software, and services offerings that mitigate transformation risk, retain data sovereignty, and optimize performance, latency, security, and resilience. Nasdaq’s Nordic markets will be among the first markets to leverage the infrastructure powered by the new partnership, subject to regulatory approval. Nasdaq also has expanded its modernization partnerships with both the Johannesburg Stock Exchange (JSE) and Mexico’s Grupo BMV.
Nasdaq is executing on its 2025 strategic priorities — Integrate, Innovate, Accelerate — positioning the company to capitalize on opportunities for sustainable, scalable, and resilient growth.
- Integrate – Nasdaq is on track to action its $140 million expanded net expense efficiency program by year-end, with over $100 million actioned as of the end of the first quarter. Moody’s upgraded Nasdaq’s senior unsecured debt rating from Baa2 to Baa1 on March 31.
- Innovate – Nasdaq continued to amplify innovation across the company as the team rolled out new AI-powered features to our solutions and product offerings and launched new Index products. Client usage of Nasdaq Verafin’s Co-Pilot tool grew 20% sequentially in the first quarter, highlighting the value and efficiency the offering provides to clients. Currently, more than 1,200 clients are leveraging the co-pilot to expedite their alert reviews.
- Accelerate – The company continues to execute on its One Nasdaq strategy securing 19 cross-sell wins since the Adenza acquisition across key solutions including Surveillance, AxiomSL, and Verafin. Nasdaq remains on track to surpass $100 million in run-rate revenue from cross-sells by the end of 2027. At the end of the first quarter, cross-sells accounted for over 15% of Financial Technology’s sales pipeline.

____________
¹ Represents revenue less transaction-based expenses.
²Adjusted period over period change reflects non-GAAP results, adjusted to include revenue for AxiomSL on-premises contracts to reflect adjustment for ratable recognition for 1Q24 and to exclude the impacts of foreign currency and the previously announced one-time revenue benefit in our Index business in 1Q24.
³ Constitutes revenue from our Capital Access Platforms and Financial Technology segments.
⁴ Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
⁵ Refer to our reconciliations of U.S. GAAP to non-GAAP net income attributable to Nasdaq, diluted earnings per share, operating income, operating expenses and organic impacts included in the attached schedules.
⁶ Organic changes (i) reflect adjustments to remove the impact of period-over-period changes in foreign currency exchange rates and (ii) includes revenue for AxiomSL on-premises contracts to reflect adjustment for ratable recognition for 1Q24. As it relates to ARR, organic changes only exclude the impact of period-over-period changes in foreign currency exchange rates as the AxiomSL ratable recognition adjustment had no impact on ARR.
⁷ U.S. GAAP operating expense and tax rate guidance are not provided due to the inherent difficulty in quantifying certain amounts due to a variety of factors including the unpredictability in the movement in foreign currency rates, as well as future charges or reversals outside of the normal course of business.
⁸ Message count represents the number of records across Nasdaq’s U.S. Options, U.S. and Canadian equities markets, trade reporting facilities, and bond exchange that are recorded into Nasdaq’s data warehouse on a daily basis.

ABOUT NASDAQ

Nasdaq (Nasdaq: NDAQ) is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

NON-GAAP INFORMATION

In addition to disclosing results determined in accordance with U.S. GAAP, Nasdaq also discloses certain non-GAAP results of operations, including, but not limited to, non-GAAP net income attributable to Nasdaq, non-GAAP diluted earnings per share, non-GAAP operating income, and non-GAAP operating expenses, that include certain adjustments or exclude certain charges and gains that are described in the reconciliation table of U.S. GAAP to non-GAAP information provided at the end of this release. Management uses this non-GAAP information internally, along with U.S. GAAP information, in evaluating our performance and in making financial and operational decisions. We believe our presentation of these measures provides investors with greater transparency and supplemental data relating to our financial condition and results of operations. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparisons of results as the items described below in the reconciliation tables do not reflect ongoing operating performance.

These measures are not in accordance with, or an alternative to, U.S. GAAP, and may be different from non-GAAP measures used by other companies. In addition, other companies, including companies in our industry, may calculate such measures differently, which reduces their usefulness as a comparative measure. Investors should not rely on any single financial measure when evaluating our business. This information should be considered as supplemental in nature and is not meant as a substitute for our operating results in accordance with U.S. GAAP. We recommend investors review the U.S. GAAP financial measures included in this earnings release. When viewed in conjunction with our U.S. GAAP results and the accompanying reconciliations, we believe these non-GAAP measures provide greater transparency and a more complete understanding of factors affecting our business than U.S. GAAP measures alone.

We understand that analysts and investors regularly rely on non-GAAP financial measures, such as those noted above, to assess operating performance. We use these measures because they highlight trends more clearly in our business that may not otherwise be apparent when relying solely on U.S. GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our ongoing operating performance.

Organic revenue and expense growth, organic change and organic impact are non-GAAP measures that reflect adjustments for: (i) the impact of period-over-period changes in foreign currency exchange rates, and (ii) the revenue, expenses and operating income associated with acquisitions and divestitures for the twelve month period following the date of the acquisition or divestiture. Reconciliations of these measures are described within the body of this release or in the reconciliation tables at the end of this release.

Foreign exchange impact: In countries with currencies other than the U.S. dollar, revenue and expenses are translated using monthly average exchange rates. Certain discussions in this release isolate the impact of year-over-year foreign currency fluctuations to better measure the comparability of operating results between periods. Operating results excluding the impact of foreign currency fluctuations are calculated by translating the current period’s results by the prior period’s exchange rates.

Restructuring programs: In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program to optimize our efficiencies as a combined organization. We further expanded this program in the fourth quarter of 2024 to accelerate our momentum and further optimize our efficiencies (efficiency program). We have incurred costs principally related to employee-related costs, contract terminations, asset impairments and other related costs and expect to incur additional costs in these areas in an effort to accelerate efficiencies through location strategy and enhanced AI capabilities. Actions taken as part of this program will be complete by the end of 2025, while certain costs may be recognized in the first half of 2026. We expect to achieve benefits primarily in the form of expense synergies. In October 2022, following our September announcement to realign our segments and leadership, we initiated a divisional realignment program with a focus on realizing the full potential of this structure. As of September 30, 2024, we completed our divisional realignment program. Costs related to the Adenza restructuring and the divisional realignment programs are recorded as “restructuring charges” in our condensed consolidated statements of income. We exclude charges associated with these programs for purposes of calculating non-GAAP measures as they are not reflective of ongoing operating performance or comparisons in Nasdaq’s performance between periods.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections relating to our future financial results, total shareholder returns, growth, dividend program, trading volumes, products and services, ability to transition to new business models or implement our new corporate structure, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain acquisitions, divestitures and other strategic, restructuring, technology, environmental, de-leveraging and capital allocation initiatives, (iii) statements about our integrations of our recent acquisitions, (iv) statements relating to any litigation or regulatory or government investigation or action to which we are or could become a party, and (v) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, Nasdaq’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, geopolitical instability, government and industry regulation, interest rate risk, U.S. and global competition. Further information on these and other factors are detailed in Nasdaq’s filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q, which are available on Nasdaq’s investor relations website at http://ir.nasdaq.com and the SEC’s website at www.sec.gov. Nasdaq undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

WEBSITE DISCLOSURE

Nasdaq intends to use its website, ir.nasdaq.com, as a means for disclosing material non-public information and for complying with SEC Regulation FD and other disclosure obligations.

Media Relations Contact
Nick Jannuzzi
+1.973.760.1741
Nicholas.Jannuzzi.@Nasdaq.com

Investor Relations Contact
Ato Garrett
+1.212.401.8737
Ato.Garrett@Nasdaq.com

NDAQF

Nasdaq, Inc.
Condensed Consolidated Statements of Income
(in millions, except per share amounts)
(unaudited)

		Three Months Ended
		March 31,			March 31,
			2025			2024

Revenues:
Capital Access Platforms		$	515		$	479
Financial Technology			432			392
Market Services			1,134			794
Other Revenues			9			9
	Total revenues		2,090			1,674
Transaction-based expenses:
Transaction rebates			(579	)		(481	)
Brokerage, clearance and exchange fees			(274	)		(76	)
Revenues less transaction-based expenses			1,237			1,117

Operating Expenses:
Compensation and benefits			329			340
Professional and contract services			36			34
Technology and communication infrastructure			77			67
Occupancy			28			28
General, administrative and other			6			28
Marketing and advertising			14			11
Depreciation and amortization			156			155
Regulatory			15			9
Merger and strategic initiatives			24			9
Restructuring charges			5			26
	Total operating expenses		690			707
Operating income			547			410
Interest income			11			6
Interest expense			(96	)		(108	)
Other income (loss)			(1	)		1
Net income from unconsolidated investees			27			3
Income before income taxes			488			312
Income tax provision			93			79
Net income			395			233
Net loss attributable to noncontrolling interests			—			1
Net income attributable to Nasdaq		$	395		$	234

Per share information:
Basic earnings per share		$	0.69		$	0.41
Diluted earnings per share		$	0.68		$	0.40
Cash dividends declared per common share		$	0.24		$	0.22

Weighted-average common shares outstanding
for earnings per share:
Basic			575.0			575.4
Diluted			580.0			578.9

Nasdaq, Inc.
Revenue Detail
(in millions)
(unaudited)

				Three Months Ended
				March 31,			March 31,
					2025			2024

CAPITAL ACCESS PLATFORMS
	Data and Listing Services revenues			$	192		$	186
	Index revenues				193			168
	Workflow and Insights revenues				130			125
		Total Capital Access Platforms revenues			515			479

FINANCIAL TECHNOLOGY
	Financial Crime Management Technology revenues				77			64
	Regulatory Technology revenues				101			90
	Capital Markets Technology revenues				254			238
		Total Financial Technology revenues			432			392

MARKET SERVICES
	Market Services revenues				1,134			794
	Transaction-based expenses:
			Transaction rebates		(579	)		(481	)
			Brokerage, clearance and exchange fees		(274	)		(76	)
		Total Market Services revenues, net			281			237

OTHER REVENUES					9			9

REVENUES LESS TRANSACTION-BASED EXPENSES				$	1,237		$	1,117

Nasdaq, Inc.
Condensed Consolidated Balance Sheets
(in millions)

		March 31,			December 31,
			2025			2024
Assets		(unaudited)
Current assets:
	Cash and cash equivalents	$	690		$	592
	Restricted cash and cash equivalents		18			31
	Default funds and margin deposits		5,686			5,664
	Financial investments		201			184
	Receivables, net		986			1,022
	Other current assets		237			293
Total current assets			7,818			7,786
Property and equipment, net			621			593
Goodwill			14,179			13,957
Intangible assets, net			6,830			6,905
Operating lease assets			381			375
Other non-current assets			818			779
Total assets		$	30,647		$	30,395

Liabilities
Current liabilities:
	Accounts payable and accrued expenses	$	255		$	269
	Section 31 fees payable to SEC		264			319
	Accrued personnel costs		198			325
	Deferred revenue		981			711
	Other current liabilities		187			215
	Default funds and margin deposits		5,686			5,664
	Short-term debt		400			399
Total current liabilities			7,971			7,902
Long-term debt			8,926			9,081
Deferred tax liabilities, net			1,586			1,594
Operating lease liabilities			393			388
Other non-current liabilities			216			230
Total liabilities			19,092			19,195

Commitments and contingencies
Equity
Nasdaq stockholders’ equity:
	Common stock		6			6
	Additional paid-in capital		5,450			5,530
	Common stock in treasury, at cost		(672	)		(647	)
	Accumulated other comprehensive loss		(1,896	)		(2,099	)
	Retained earnings		8,658			8,401
Total Nasdaq stockholders’ equity			11,546			11,191
	Noncontrolling interests		9			9
Total equity			11,555			11,200
Total liabilities and equity		$	30,647		$	30,395

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Net Income Attributable to Nasdaq and Diluted Earnings Per Share
(in millions, except per share amounts)
(unaudited)


		Three Months Ended
		March 31,			March 31,
			2025			2024

U.S. GAAP net income attributable to Nasdaq		$	395		$	234
Non-GAAP adjustments:
	Amortization expense of acquired intangible assets ⁽¹⁾		122			123
	Merger and strategic initiatives expense ⁽²⁾		24			9
	Restructuring charges ⁽³⁾		5			26
	Net income from unconsolidated investees ⁽⁴⁾		(27	)		(3	)
	Gain from extinguishment of debt ⁽⁵⁾		(19	)		—
	Legal and regulatory matters		2			2
	Pension settlement charge ⁽⁶⁾		—			23
	Other loss		1			—
	Total non-GAAP adjustments		108			180
	Non-GAAP adjustment to the income tax provision ⁽⁷⁾		(47	)		(47	)
	Total non-GAAP adjustments, net of tax		61			133
Non-GAAP net income attributable to Nasdaq		$	456		$	367

U.S. GAAP diluted earnings per share		$	0.68		$	0.40
	Total adjustments from non-GAAP net income above		0.11			0.23
Non-GAAP diluted earnings per share		$	0.79		$	0.63

Weighted-average diluted common shares outstanding for earnings per share:			580.0			578.9


(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years that have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months ended March 31, 2025, these amounts are primarily driven by the timing of recognition associated with the transfer of open positions in our Nordic power derivatives trading and clearing business, Adenza integration costs and other strategic initiative costs. For the three months ended March 31, 2024, these costs were primarily related to the integration of Adenza.

(3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, asset impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In addition, in September 2024, we completed our previously disclosed divisional realignment program.

(4) We exclude our share of the earnings and losses of our equity method investments. This provides a more meaningful analysis of Nasdaq’s ongoing operating performance or comparisons in Nasdaq’s performance between periods.

(5) For the three months ended March 31, 2025, we recorded a gain on the extinguishment of debt. This gain is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.

(6) For the three months ended March 31, 2024, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

(7) The non-GAAP adjustment to the income tax provision primarily includes the tax impact of each non-GAAP adjustment. For the three months ended March 31, 2025, we recognized a prior year tax reserve release of $18 million due to a favorable audit settlement.

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Operating Income and Operating Margin
(in millions)
(unaudited)

		Three Months Ended
		March 31,			March 31,
			2025			2024

U.S. GAAP operating income		$	547		$	410
Non-GAAP adjustments:
	Amortization expense of acquired intangible assets ⁽¹⁾		122			123
	Merger and strategic initiatives expense ⁽²⁾		24			9
	Restructuring charges ⁽³⁾		5			26
	Gain from extinguishment of debt ⁽⁴⁾		(19	)		—
	Legal and regulatory matters		2			2
	Pension settlement charge ⁽⁵⁾		—			23
	Other loss		1			—
	Total non-GAAP adjustments		135			183
Non-GAAP operating income		$	682		$	593

Revenues less transaction-based expenses		$	1,237		$	1,117

U.S. GAAP operating margin ⁽⁶⁾			44 %			37 %

Non-GAAP operating margin ⁽⁷⁾			55 %			53 %

Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.

(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years that have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months ended March 31, 2025, these amounts are primarily driven by the timing of recognition associated with the transfer of open positions in our Nordic power derivatives trading and clearing business, Adenza integration costs and other strategic initiative costs. For the three months ended March 31, 2024, these costs were primarily related to the integration of Adenza.

(3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, asset impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In addition, in September 2024, we completed our previously disclosed divisional realignment program.

(4) For the three months ended March 31, 2025, we recorded a gain on the extinguishment of debt. This gain is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.

(5) For the three months ended March 31, 2024, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

(6) U.S. GAAP operating margin equals U.S. GAAP operating income divided by revenues less transaction-based expenses.

(7) Non-GAAP operating margin equals non-GAAP operating income divided by non-GAAP revenues less transaction-based expenses.

Nasdaq, Inc.
Reconciliation of U.S. GAAP to Non-GAAP Operating Expenses
(in millions)
(unaudited)

		Three Months Ended
		March 31,			March 31,
			2025			2024

U.S. GAAP operating expenses		$	690		$	707
Non-GAAP adjustments:
	Amortization expense of acquired intangible assets ⁽¹⁾		(122	)		(123	)
	Merger and strategic initiatives expense ⁽²⁾		(24	)		(9	)
	Restructuring charges ⁽³⁾		(5	)		(26	)
	Gain from extinguishment of debt ⁽⁴⁾		19			—
	Legal and regulatory matters		(2	)		(2	)
	Pension settlement charge ⁽⁵⁾		—			(23	)
	Other loss		(1	)		—
	Total non-GAAP adjustments		(135	)		(183	)
Non-GAAP operating expenses		$	555		$	524


(1) We amortize intangible assets acquired in connection with various acquisitions. Intangible asset amortization expense can vary from period to period due to episodic acquisitions completed, rather than from our ongoing business operations.

(2) We have pursued various strategic initiatives and completed acquisitions and divestitures in recent years that have resulted in expenses which would not have otherwise been incurred. These expenses generally include integration costs, as well as legal, due diligence and other third-party transaction costs. The frequency and the amount of such expenses vary significantly based on the size, timing and complexity of the transaction. For the three months ended March 31, 2025, these amounts are primarily driven by the timing of recognition associated with the transfer of open positions in our Nordic power derivatives trading and clearing business, Adenza integration costs and other strategic initiative costs. For the three months ended March 31, 2024, these costs were primarily related to the integration of Adenza.

(3) In the fourth quarter of 2023, following the closing of the Adenza acquisition, our management approved, committed to and initiated a restructuring program, “Adenza Restructuring” to optimize our efficiencies as a combined organization. In connection with this program, we expect to incur pre-tax charges principally related to employee-related costs, contract terminations, asset impairments and other related costs. We expect to achieve benefits primarily in the form of expense and revenue synergies. In addition, in September 2024, we completed our previously disclosed divisional realignment program.

(4) For the three months ended March 31, 2025, we recorded a gain on the extinguishment of debt. This gain is recorded in general, administrative expense in our Condensed Consolidated Statements of Income.

(5) For the three months ended March 31, 2024, we recorded a pre-tax charge as a result of settling our U.S. pension plan. The plan was terminated and partially settled in 2023, with final settlement occurring during the first quarter of 2024. The loss was recorded in compensation and benefits in the Condensed Consolidated Statements of Income.

Nasdaq, Inc.
Reconciliation of Adjusted Impacts for Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
Non-GAAP Operating Income, and Non-GAAP Operating Margin
(in millions)
(unaudited)

	Three Months Ended
	As Reported				Adenza		Adjusted ⁽¹⁾		Total Variance				FX & Other ⁽²⁾			Adjusted YoY
	March 31, 2025		March 31, 2024		March 31, 2024		March 31, 2024		$		%		$			$		%
CAPITAL ACCESS PLATFORMS
Data and Listing Services revenues	$	192	$	186	$	—	$	186	$	6	3	%	$	(1	)	$	7	4	%
Index revenues		193		168		—		168		25	14	%		(16	)		41	26	%
Workflow and insights revenues		130		125		—		125		5	4	%		—			5	4	%
Total Capital Access Platforms revenues		515		479		—		479		36	7	%		(17	)		53	11	%

FINANCIAL TECHNOLOGY
Financial Crime Management Technology revenues		77		64		—		64		13	21	%		—			13	21	%
Regulatory Technology revenues		101		90		3		93		8	8	%		(1	)		9	10	%
Capital Markets Technology revenues		254		238		—		238		16	7	%		(1	)		17	7	%
Total Financial Technology revenues		432		392		3		395		37	9	%		(2	)		39	10	%

Solutions revenues ⁽³⁾		947		871		3		874		73	8	%		(19	)		92	11	%

Market Services, net revenues		281		237		—		237		44	19	%		(2	)		46	19	%
Other revenues		9		9		—		9		—	(6	)%		—			—	(4	)%
Revenues less transaction-based expenses		1,237		1,117		3		1,120		117	10	%		(21	)		138	12	%

Non-GAAP operating expenses		555		524		—		524		31	6	%		(6	)		37	7	%
Non-GAAP operating income	$	682	$	593	$	3	$	596	$	86	14	%	$	(15	)	$	101	17	%
Non-GAAP operating margin		55%		53%				53%


(1) Includes revenue for AxiomSL on-premises contracts to reflect adjustment for ratable recognition for the first quarter of 2024.
(2) Reflects the impacts from changes in foreign currency exchange rates and excludes the impact of a one-time revenue benefit related to a legal settlement to recoup lost revenue recorded within Index in the first quarter of 2024.
(3) Represents Capital Access Platforms and Financial Technology Segments.
Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions.

Nasdaq, Inc.
Reconciliation of Organic Impacts for Revenues less transaction-based expenses, Non-GAAP Operating Expenses,
Non-GAAP Operating Income, and Non-GAAP Diluted Earnings Per Share
(in millions, except per share amounts)
(unaudited)


	Three Months Ended				Total Variance				Other Impacts ⁽¹⁾					Organic Impact ⁽²⁾
	March 31, 2025		March 31, 2024		$		%		$			%		$		%
CAPITAL ACCESS PLATFORMS
Data and Listing Services revenues	$	192	$	186	$	6	3	%	$	(1	)	(1	)%	$	7	4	%
Index revenues		193		168		25	14	%		—		—	%		25	14	%
Workflow and Insights revenues		130		125		5	4	%		—		—	%		5	4	%
Total Capital Access Platforms revenues		515		479		36	7	%		(1	)	—	%		37	8	%

FINANCIAL TECHNOLOGY
Financial Crime Management Technology revenues		77		64		13	21	%		—		—	%		13	21	%
Regulatory Technology revenues		101		90		11	12	%		2		2	%		9	10	%
Capital Markets Technology revenues		254		238		16	7	%		(1	)	—	%		17	7	%
Total Financial Technology revenues		432		392		40	10	%		1		—	%		39	10	%

Solutions revenues ⁽³⁾		947		871		76	9	%		—		—	%		76	9	%

Market Services, net revenues		281		237		44	19	%		(2	)	(1	)%		46	19	%

Other revenues		9		9		—	(6	)%		—		(2	)%		—	(4	)%

Revenues less transaction-based expenses	$	1,237	$	1,117	$	120	11	%	$	(2	)	—	%	$	122	11	%

Non-GAAP Operating Expenses	$	555	$	524	$	31	6	%	$	(6	)	(1	)%	$	37	7	%

Non-GAAP Operating Income	$	682	$	593	$	89	15	%	$	4		1	%	$	85	14	%

Non-GAAP diluted earnings per share	$	0.79	$	0.63	$	0.16	24	%	$	—		—	%	$	0.16	24	%


Note: The current period percentages are calculated based on exact dollars, and therefore may not recalculate exactly using rounded numbers as presented in US$ millions. The sum of the percentage changes may not tie to the percentage change in total variance due to rounding.
(1) Primarily includes the impacts of changes in FX rates and $3 million of revenue for AxiomSL to reflect adjustment for on-premises contracts ratable recognition for 2024 within Regulatory Technology revenues.
(2) Organic changes (i) reflect adjustments for the impact of period-over-period changes in foreign currency exchange rates and (ii) includes revenue for AxiomSL on-premises contracts to reflect adjustment for ratable recognition for the first quarter of 2024.
(3) Represents Capital Access Platforms and Financial Technology Segments.

Nasdaq, Inc.
Key Drivers Detail
(unaudited)

		Three Months Ended
		March 31,			March 31,
			2025			2024
Capital Access Platforms
	Annualized recurring revenues (in millions) ⁽¹⁾	$	1,281		$	1,220
	Initial public offerings
	The Nasdaq Stock Market ⁽²⁾		63			27
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic		4			1
	Total new listings
	The Nasdaq Stock Market ⁽²⁾		170			79
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic ⁽³⁾		9			2
	Number of listed companies
	The Nasdaq Stock Market ⁽⁴⁾		4,139			4,020
	Exchanges that comprise Nasdaq Nordic and Nasdaq Baltic ⁽⁵⁾		1,160			1,203
	Index
	Number of licensed exchange traded products ⁽⁶⁾		418			362
	Period end ETP assets under management (AUM) tracking Nasdaq indexes (in billions)	$	622		$	519
	Total average ETP AUM tracking Nasdaq indexes (in billions)	$	662		$	492
	TTM ⁽⁷⁾ net inflows ETP AUM tracking Nasdaq indexes (in billions)	$	86		$	46
	TTM ⁽⁷⁾ net appreciation ETP AUM tracking Nasdaq indexes (in billions)	$	17		$	124

Financial Technology
	Annualized recurring revenues (in millions) ⁽¹⁾
	Financial Crime Management Technology	$	295		$	243
	Regulatory Technology		362			328
	Capital Markets Technology		893			821
	Total Financial Technology	$	1,550		$	1,392

Market Services
	Equity Derivative Trading and Clearing
	U.S. equity options
	Total industry average daily volume (in millions)		53.6			43.3
	Nasdaq PHLX matched market share		9.1	%		10.3	%
	The Nasdaq Options Market matched market share		5.1	%		5.4	%
	Nasdaq BX Options matched market share		1.7	%		2.2	%
	Nasdaq ISE Options matched market share		6.8	%		6.3	%
	Nasdaq GEMX Options matched market share		3.6	%		2.5	%
	Nasdaq MRX Options matched market share		2.8	%		2.5	%
	Total matched market share executed on Nasdaq’s exchanges		29.1	%		29.2	%
	Nasdaq Nordic and Nasdaq Baltic options and futures
	Total average daily volume of options and futures contracts		256,009			241,665

	Cash Equity Trading
	Total U.S.-listed securities
	Total industry average daily share volume (in billions)		15.7			11.8
	Matched share volume (in billions)		137.6			116.7
	The Nasdaq Stock Market matched market share		14.2	%		15.7	%
	Nasdaq BX matched market share		0.3	%		0.4	%
	Nasdaq PSX matched market share		0.1	%		0.2	%
	Total matched market share executed on Nasdaq’s exchanges		14.6	%		16.3	%
	Market share reported to the FINRA/Nasdaq Trade Reporting Facility		48.1	%		41.4	%
	Total market share ⁽⁸⁾		62.7	%		57.7	%
	Nasdaq Nordic and Nasdaq Baltic securities
	Average daily number of equity trades executed on Nasdaq’s exchanges		789,103			666,408
	Total average daily value of shares traded (in billions)	$	5.4		$	4.7
	Total market share executed on Nasdaq’s exchanges		69.9	%		71.7	%

	Fixed Income and Commodities Trading and Clearing
	Fixed Income
	Total average daily volume of Nasdaq Nordic and Nasdaq Baltic fixed income contracts		83,864			92,070

	(1) Annualized Recurring Revenue (ARR) for a given period is the current annualized value derived from subscription contracts with a defined contract value. This excludes contracts that are not recurring, are one-time in nature, or where the contract value fluctuates based on defined metrics. ARR is currently one of our key performance metrics to assess the health and trajectory of our recurring business. ARR does not have any standardized definition and is therefore unlikely to be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or to replace either of those items. For AxiomSL and Calypso recurring revenue contracts, the amount included in ARR is consistent with the amount that we invoice the customer during the current period. Additionally, for AxiomSL and Calypso recurring revenue contracts that include annual values that increase over time, we include in ARR only the annualized value of components of the contract that are considered active as of the date of the ARR calculation. We do not include the future committed increases in the contract value as of the date of the ARR calculation. ARR is not a forecast and the active contracts at the end of a reporting period used in calculating ARR may or may not be extended or renewed by our customers.
	(2) New listings include IPOs, issuers that switched from other listing venues, closed-end funds and separately listed ETPs. For the three months ended March 31, 2025 and 2024, IPOs included 18 and 5 SPACs, respectively.
	(3) New listings include IPOs and represent companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
	(4) Number of total listings on The Nasdaq Stock Market for the three months ended March 31, 2025 and March 31, 2024 included 833 and 619 ETPs, respectively.
	(5) Represents companies listed on the Nasdaq Nordic and Nasdaq Baltic exchanges and companies on the alternative markets of Nasdaq First North.
	(6) The number of listed ETPs as of March 31, 2024 has been updated to reflect a revised methodology whereby an ETP listed on multiple exchanges is counted as one product, rather than formerly being counted per exchange. This change has no impact on reported AUM.
	(7) Trailing 12-months.
	(8) Includes transactions executed on The Nasdaq Stock Market’s, Nasdaq BX’s and Nasdaq PSX’s systems plus trades reported through the Financial Industry Regulatory Authority/Nasdaq Trade Reporting Facility.

The MIL Network –

April 24, 2025

MIL-OSI: Šiaulių Bankas Invitation to Q1 2025 Financial Results webinar

Source: GlobeNewswire (MIL-OSI)

Šiaulių Bankas (SAB1L) invites shareholders, investors, analysts and other stakeholders to join its Investors Webinar for Q1 2025 Financial Results and highlights scheduled on 29 April, 2025 at 8:30 am (EEST). The presentation will be held online in English.

The webinar will be hosted by Vytautas Sinius, CEO, Tomas Varenbergas, Head of Investment Management Division, Chief Economist Indrė Genytė–Pikčienė and Tautvydas Mėdžius, Strategy Partner, who will discuss the bank’s financial results for the first quarter of 2025, recent developments, and will take questions from participants.

Please send your questions in advance to investors@sb.lt

The Q1 2025 results will be announced in advance on 28 April after trading hours.

How to join the webinar?

To join the webinar, please register via following link https://sb.zoomtv.lt. After successful registration You will be provided with the webinar link. The webinar will be recorded and available online for everyone at Šiaulių Bankas website www.sb.lt/en/investors

Additional information:
Tomas Varenbergas
Head of Investment Management Division
tomas.varenbergas@sb.lt, +370 610 44447

The MIL Network –

April 24, 2025

MIL-OSI: Valley National Bancorp Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, and $99.4 million, or $0.19 per diluted common share, for the first quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the “Consolidated Financial Highlights” tables.

Ira Robbins, CEO, commented, “The first quarter was highlighted by the continued improvement in our funding base. Core deposit growth has enabled us to further reduce our reliance on indirect deposits which benefited our revenue and net interest margin. We anticipate that additional core deposit growth will create a sustainable tailwind despite the volatility in the current operating environment.”

Mr. Robbins continued, “I am generally pleased with the quarter’s results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of March 31, 2025. We remain on track to achieve our profitability goals for the year as we continue to benefit from the net interest income and credit cost tailwinds that we have discussed previously.”

Key financial highlights for the first quarter 2025:

Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024. Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025. See additional details in the “Net Interest Income and Margin” section below.
Loan Portfolio: Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024 mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 353 percent at March 31, 2025 from 362 percent at December 31, 2024. Partially offsetting the lower CRE loan balances, commercial and industrial (C&I) and automobile loans grew by $218.8 million and $140.2 million, respectively, at March 31, 2025 from December 31, 2024. Auto loan originations resulting from high quality consumer demand remained strong during the first quarter 2025. See the “Loans” section below for more details.
Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.1 million and $573.3 million at March 31, 2025 and December 31, 2024, respectively, representing 1.22 percent and 1.17 percent of total loans at each respective date. During the first quarter 2025, we recorded a provision for credit losses for loans of $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
Credit Quality: Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Non-accrual loans totaled $346.5 million, or 0.71 percent of total loans, at March 31, 2025 as compared to $359.5 million, or 0.74 percent of total loans, at December 31, 2024. Net loan charge-offs totaled $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and first quarter 2024, respectively. See the “Credit Quality” section below for more details.
Deposits: Non-interest bearing deposits increased $199.9 million to $11.6 billion at March 31, 2025 from December 31, 2024 largely due to higher inflows of commercial customer deposits during the first quarter 2025. Savings, NOW, and money market deposits increased $108.6 million to $26.4 billion at March 31, 2025 from December 31, 2024 mostly due to new deposits from our online savings deposit product offerings. Total actual deposit balances decreased $110.0 million to $50.0 billion at March 31, 2025 as compared to $50.1 billion at December 31, 2024 as the increases in our direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025. See the “Deposits” section below for more details.
Non-Interest Income: Non-interest income increased $7.1 million to $58.3 million for the first quarter 2025 as compared to the fourth quarter 2024. The increase reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans.
Non-Interest Expense: Non-interest expense decreased $2.0 million to $276.6 million for the first quarter 2025 as compared to the fourth quarter 2024 largely due to decreases of $6.1 million in professional and legal expenses; and $5.6 million in technology, furniture and equipment expense, partially offset by higher amortization of tax credit investments and the normal seasonal increases in salary and employee benefits expense related to payroll taxes during the first quarter 2025. The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in our bank operations.
Income Tax Expense: Income tax expense was $33.1 million for the first quarter 2025 as compared to an income tax benefit of $26.7 million for the fourth quarter 2024, which reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations. Our effective tax rate was 23.8 percent for the first quarter 2025 compared to a negative 29.9 percent for the fourth quarter 2024.
Efficiency Ratio: Our efficiency ratio was 55.87 percent for the first quarter 2025 as compared to 57.21 percent and 59.10 percent for the fourth quarter 2024 and first quarter 2024, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.
Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.69 percent, 5.69 percent and 7.76 percent for the first quarter 2025, respectively. See the “Consolidated Financial Highlights” tables below for additional information regarding our non-GAAP measures.

Net Interest Income and Margin

Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. Interest income on a tax equivalent basis decreased $50.1 million to $786.0 million for the first quarter 2025 as compared to the fourth quarter 2024. The decrease was mostly driven by the impact of (i) two less days in the first quarter 2025, (ii) the bulk sale of certain performing CRE loans during the fourth quarter 2024, and (iii) downward repricing on adjustable rate loans. Total interest expense decreased $47.2 million to $364.6 million for the first quarter 2025 as compared to the fourth quarter 2024 mainly due to (i) the aforementioned reduction in day count, (ii) a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and (iii) lower interest rates on many interest bearing deposit products in the first quarter 2025. See the “Deposits” and “Other Borrowings” sections below for more details.

Net interest margin on a tax equivalent basis of 2.96 percent for the first quarter 2025 increased by 4 basis points from 2.92 percent for the fourth quarter 2024 and increased 17 basis points from 2.79 percent for the first quarter 2024. The increase as compared to the fourth quarter 2024 was mostly due to the 29 basis point decline in our cost of total average deposits, largely offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 22 basis points to 5.53 percent on a linked quarter basis largely due to downward repricing of our adjustable rate loans and two less days in the first quarter 2025, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased 31 basis points to 3.54 percent for the first quarter 2025 as compared to the fourth quarter 2024 largely due to a decrease in higher cost time deposits and lower interest rates on most deposit products. Our cost of total average deposits was 2.65 percent for the first quarter 2025 as compared to 2.94 percent and 3.16 percent for the fourth quarter 2024 and the first quarter 2024, respectively.

Loans, Deposits and Other Borrowings

Loans. Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024. Total CRE (including construction) loans decreased $530.4 million to $29.1 billion at March 31, 2025 from December 31, 2024. The decrease was largely driven by repayment activity and continued selective origination activity within the CRE portfolio. Additionally, construction loans decreased $87.8 million to $3.0 billion at March 31, 2025 from December 31, 2024 mainly due to the migration of completed projects to permanent financing within the multifamily loan category during the first quarter 2025 and a non-performing loan totaling $10.2 million, net of $638 thousand of charge-offs, transferred to loans held for sale at March 31, 2025, partially offset by new advances. As a result of the completed construction projects, multifamily loans increased $121.1 million to $8.4 billion at March 31, 2025 from December 31, 2024. C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, to $10.2 billion at March 31, 2025 from December 31, 2024 largely due to our continued strategic focus on growth within this category. Automobile loans increased by $140.2 million, or 29.5 percent on an annualized basis, to $2.0 billion at March 31, 2025 from December 31, 2024 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio.

Deposits. Actual ending balances for deposits decreased $110.0 million to $50.0 billion at March 31, 2025 from December 31, 2024 mainly due to a $418.5 million decrease in time deposits, partially offset by increases of $199.9 million and $108.6 million in non-interest bearing deposits and savings, NOW and money market deposits, respectively. The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings during the first quarter 2025. The increase in non-interest bearing was mostly due to higher commercial customer deposit inflows late in the first quarter 2025. Savings, NOW and money market deposit balances increased at March 31, 2025 from December 31, 2024 largely due to new deposits from our online savings deposit product offerings, partially offset by lower governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.3 billion and $7.0 billion in March 31, 2025 and December 31, 2024, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively, as compared to 23 percent, 52 percent and 25 percent of total deposits as of December 31, 2024, respectively.

Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $13.7 million to $59.0 million at March 31, 2025 from December 31, 2024. Long-term borrowings totaled $2.9 billion at March 31, 2025 and decreased $269.6 million as compared to December 31, 2024 due to the maturity and repayment of certain FHLB advances.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $17.1 million to $356.2 million at March 31, 2025 as compared to December 31, 2024. Non-accrual loans decreased $13.0 million to $346.5 million at March 31, 2025 as compared to $359.5 million at December 31, 2024 largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans at March 31, 2025. Non-accrual loans represented 0.71 percent of total loans at March 31, 2025 as compared to 0.74 percent of total loans at December 31, 2024. OREO decreased $4.4 million to $7.7 million at March 31, 2025 from December 31, 2024 mostly due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024.

Loans 30 to 59 days past due decreased $23.7 million to $33.4 million at March 31, 2025 as compared to December 31, 2024 largely due to a previously reported delinquent CRE loan totaling $15.4 million that was current to its contractual payments at March 31, 2025, as well as a general improvement in residential mortgage loan delinquencies in this category. Loans 60 to 89 days past due decreased $25.6 million to $10.5 million at March 31, 2025 as compared to December 31, 2024 mostly due to the renewal of an $18.6 million matured performing CRE loan reported in this delinquency category at December 31, 2024 and two CRE loans totaling $6.9 million that were reclassified to the non-accrual category during the first quarter 2025. Loans 90 days or more past due and still accruing interest increased $1.9 million to $7.8 million at March 31, 2025 as compared to December 31, 2024 mainly due to an increase in residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at March 31, 2025, December 31, 2024 and March 31, 2024:

	March 31, 2025				December 31, 2024				March 31, 2024
			Allocation				Allocation				Allocation
			as a % of				as a % of				as a % of
	Allowance		Loan		Allowance		Loan		Allowance		Loan
	Allocation		Category		Allocation		Category		Allocation		Category
	($ in thousands)
Loan Category:
Commercial and industrial loans	$	184,700	1.82	%	$	173,002	1.74	%	$	138,593	1.52	%
Commercial real estate loans:
Commercial real estate		266,938	1.02			251,351	0.95			209,355	0.74
Construction		54,724	1.81			52,797	1.70			56,492	1.59
Total commercial real estate loans		321,662	1.10			304,148	1.03			265,847	0.84
Residential mortgage loans		48,906	0.87			58,895	1.05			44,377	0.79
Consumer loans:
Home equity		3,401	0.56			3,379	0.56			2,809	0.50
Auto and other consumer		19,531	0.62			19,426	0.65			17,622	0.60
Total consumer loans		22,932	0.61			22,805	0.64			20,431	0.58
Allowance for loan losses		578,200	1.19			558,850	1.15			469,248	0.94
Allowance for unfunded credit commitments		15,854				14,478				18,021
Total allowance for credit losses for loans	$	594,054			$	573,328			$	487,269
Allowance for credit losses for loans as a % total of loans			1.22	%			1.17	%			0.98	%

Our loan portfolio, totaling $48.7 billion at March 31, 2025, had net loan charge-offs totaling $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and the first quarter 2024, respectively. Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships with combined specific reserves of $16.0 million at December 31, 2024.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.22 percent at March 31, 2025, 1.17 percent at December 31, 2024, and 0.98 percent at March 31, 2024. For the first quarter 2025, the provision for credit losses for loans totaled $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans at March 31, 2025.

Capital Adequacy

Valley’s total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025 as compared to 13.87 percent, 11.55 percent, 10.82 percent and 9.16 percent, respectively, at December 31, 2024.

Investor Conference Call

Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley’s first quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, May 26, 2025. Investor presentation materials will be made available prior to the conference call at valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to valley.com or call our Customer Care Center at 800-522-4100.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs, any retaliatory actions, related market uncertainty, or other factors; debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as legislation and policy changes under the new U.S. presidential administration, geopolitical instabilities or events, natural and other disasters, including severe weather events, health emergencies, acts of terrorism, or other external events;
the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
changes in the statutes, regulations, policies, or enforcement priorities of the federal bank regulatory agencies;
the loss of or decrease in lower-cost funding sources within our deposit base;
damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;
a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
the inability to grow customer deposits to keep pace with the level of loan growth;
a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
increased competitive challenges, including our ability to stay current with rapid technological changes in the financial services industry;
cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks;
results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;
our ability to successfully execute our business plan and strategic initiatives; and
unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2024.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

-Tables to Follow-

VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA

	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands, except for share data and stock price)	2025			2024			2024
FINANCIAL DATA:
Net interest income – FTE ⁽¹⁾	$	421,378		$	424,277		$	394,847
Net interest income	$	420,105		$	422,977		$	393,548
Non-interest income		58,294			51,202			61,415
Total revenue		478,399			474,179			454,963
Non-interest expense		276,618			278,582			280,310
Pre-provision net revenue		201,781			195,597			174,653
Provision for credit losses		62,661			106,536			45,200
Income tax expense (benefit)		33,062			(26,650	)		33,173
Net income		106,058			115,711			96,280
Dividends on preferred stock		6,955			7,025			4,119
Net income available to common shareholders	$	99,103		$	108,686		$	92,161
Weighted average number of common shares outstanding:
Basic		559,613,272			536,159,463			508,340,719
Diluted		563,305,525			540,087,600			510,633,945
Per common share data:
Basic earnings	$	0.18		$	0.20		$	0.18
Diluted earnings		0.18			0.20			0.18
Cash dividends declared		0.11			0.11			0.11
Closing stock price – high		10.42			10.78			10.80
Closing stock price – low		8.56			8.70			7.43
FINANCIAL RATIOS:
Net interest margin		2.95	%		2.91	%		2.78	%
Net interest margin – FTE ⁽¹⁾		2.96			2.92			2.79
Annualized return on average assets		0.69			0.74			0.63
Annualized return on avg. shareholders’ equity		5.69			6.38			5.73
NON-GAAP FINANCIAL DATA AND RATIOS: ⁽²⁾
Basic earnings per share, as adjusted	$	0.18		$	0.13		$	0.19
Diluted earnings per share, as adjusted		0.18			0.13			0.19
Annualized return on average assets, as adjusted		0.69	%		0.48	%		0.65	%
Annualized return on average shareholders’ equity, as adjusted		5.69			4.17			5.91
Annualized return on avg. tangible shareholders’ equity		7.76			8.81			8.19
Annualized return on average tangible shareholders’ equity, as adjusted		7.76			5.76			8.46
Efficiency ratio		55.87			57.21			59.10

AVERAGE BALANCE SHEET ITEMS:
Assets	$	61,502,768		$	62,865,338		$	61,256,868
Interest earning assets		56,891,691			58,214,783			56,618,797
Loans		48,654,921			49,730,130			50,246,591
Interest bearing liabilities		41,230,709			42,765,949			41,556,588
Deposits		49,139,303			50,726,080			48,575,974
Shareholders’ equity		7,458,177			7,255,159			6,725,695

	As Of
BALANCE SHEET ITEMS:	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2025			2024			2024			2024			2024
Assets	$	61,865,655		$	62,491,691		$	62,092,332		$	62,058,974		$	61,000,188
Total loans		48,657,128			48,799,711			49,355,319			50,311,702			49,922,042
Deposits		49,965,844			50,075,857			50,395,966			50,112,177			49,077,946
Shareholders’ equity		7,499,897			7,435,127			6,972,380			6,737,737			6,727,139

LOANS:
(In thousands)
Commercial and industrial	$	10,150,205		$	9,931,400		$	9,799,287		$	9,479,147		$	9,104,193
Commercial real estate:
Non-owner occupied		11,945,222			12,344,355			12,647,649			13,710,015			14,962,851
Multifamily		8,420,385			8,299,250			8,612,936			8,976,264			8,818,263
Owner occupied		5,722,014			5,886,620			5,654,147			5,536,844			4,367,839
Construction		3,026,935			3,114,733			3,487,464			3,545,723			3,556,511
Total commercial real estate		29,114,556			29,644,958			30,402,196			31,768,846			31,705,464
Residential mortgage		5,636,407			5,632,516			5,684,079			5,627,113			5,618,355
Consumer:
Home equity		602,161			604,433			581,181			566,467			564,083
Automobile		2,041,227			1,901,065			1,823,738			1,762,852			1,700,508
Other consumer		1,112,572			1,085,339			1,064,838			1,107,277			1,229,439
Total consumer loans		3,755,960			3,590,837			3,469,757			3,436,596			3,494,030
Total loans	$	48,657,128		$	48,799,711		$	49,355,319		$	50,311,702		$	49,922,042

CAPITAL RATIOS:
Book value per common share	$	12.76		$	12.67		$	13.00		$	12.82		$	12.81
Tangible book value per common share ⁽²⁾		9.21			9.10			9.06			8.87			8.84
Tangible common equity to tangible assets ⁽²⁾		8.61	%		8.40	%		7.68	%		7.52	%		7.62	%
Tier 1 leverage capital		9.41			9.16			8.40			8.19			8.20
Common equity tier 1 capital		10.80			10.82			9.57			9.55			9.34
Tier 1 risk-based capital		11.53			11.55			10.29			9.98			9.78
Total risk-based capital		13.91			13.87			12.56			12.17			11.88

	Three Months Ended
ALLOWANCE FOR CREDIT LOSSES:	March 31,			December 31,			March 31,
($ in thousands)	2025			2024			2024
Allowance for credit losses for loans
Beginning balance – Allowance for credit losses for loans	$	573,328		$	564,671		$	465,550
Loans charged-off:
Commercial and industrial		(28,456	)		(31,784	)		(14,293	)
Commercial real estate		(12,260	)		(69,218	)		(1,204	)
Construction		(1,163	)		—			(7,594	)
Residential mortgage		—			(29	)		—
Total consumer		(2,140	)		(2,621	)		(1,809	)
Total loans charged-off		(44,019	)		(103,652	)		(24,900	)
Charged-off loans recovered:
Commercial and industrial		810			1,452			682
Commercial real estate		249			3,138			241
Residential mortgage		168			81			25
Total consumer		843			673			397
Total loans recovered		2,070			5,344			1,345
Total net charge-offs		(41,949	)		(98,308	)		(23,555	)
Provision for credit losses for loans		62,675			106,965			45,274
Ending balance	$	594,054		$	573,328		$	487,269
Components of allowance for credit losses for loans:
Allowance for loan losses	$	578,200		$	558,850		$	469,248
Allowance for unfunded credit commitments		15,854			14,478			18,021
Allowance for credit losses for loans	$	594,054		$	573,328		$	487,269
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	61,299		$	108,831		$	46,723
Provision (credit) for unfunded credit commitments		1,376			(1,866	)		(1,449	)
Total provision for credit losses for loans	$	62,675		$	106,965		$	45,274
Annualized ratio of total net charge-offs to total average loans		0.34	%		0.79	%		0.19	%
Allowance for credit losses for loans as a % of total loans		1.22	%		1.17	%		0.98	%

	As Of
ASSET QUALITY:	March 31,			December 31,			September 30,			June 30,			March 31,
($ in thousands)	2025			2024			2024			2024			2024
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	3,609		$	2,389		$	4,537		$	5,086		$	6,202
Commercial real estate		170			20,902			76,370			1,879			5,791
Residential mortgage		16,747			21,295			19,549			17,389			20,819
Total consumer		12,887			12,552			14,672			21,639			14,032
Total 30 to 59 days past due		33,413			57,138			115,128			45,993			46,844
60 to 89 days past due:
Commercial and industrial		420			1,007			1,238			1,621			2,665
Commercial real estate		—			24,903			43,926			—			3,720
Residential mortgage		7,700			5,773			6,892			6,632			5,970
Total consumer		2,408			4,484			2,732			3,671			1,834
Total 60 to 89 days past due		10,528			36,167			54,788			11,924			14,189
90 or more days past due:
Commercial and industrial		—			1,307			1,786			2,739			5,750
Commercial real estate		—			—			—			4,242			—
Construction		—			—			—			3,990			3,990
Residential mortgage		6,892			3,533			1,931			2,609			2,884
Total consumer		864			1,049			1,063			898			731
Total 90 or more days past due		7,756			5,889			4,780			14,478			13,355
Total accruing past due loans	$	51,697		$	99,194		$	174,696		$	72,395		$	74,388
Non-accrual loans:
Commercial and industrial	$	110,146		$	136,675		$	120,575		$	102,942		$	102,399
Commercial real estate		172,011			157,231			113,752			123,011			100,052
Construction		24,275			24,591			24,657			45,380			51,842
Residential mortgage		35,393			36,786			33,075			28,322			28,561
Total consumer		4,626			4,215			4,260			3,624			4,438
Total non-accrual loans		346,451			359,498			296,319			303,279			287,292
Other real estate owned (OREO)		7,714			12,150			7,172			8,059			88
Other repossessed assets		2,054			1,681			1,611			1,607			1,393
Total non-performing assets	$	356,219		$	373,329		$	305,102		$	312,945		$	288,773
Total non-accrual loans as a % of loans		0.71	%		0.74	%		0.60	%		0.60	%		0.58	%
Total accruing past due and non-accrual loans as a % of loans		0.82			0.94	%		0.95	%		0.75	%		0.72	%
Allowance for losses on loans as a % of non-accrual loans		166.89			155.45	%		185.05	%		171.23	%		163.33	%

NOTES TO SELECTED FINANCIAL DATA

(1)		Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.
(2)		Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Valley’s performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Non-GAAP Reconciliations to GAAP Financial Measures

	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands, except for share data)	2025			2024			2024
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)	$	106,058		$	115,711		$	96,280
Add: FDIC special assessment ^(a)		—			—			7,394
Add: Losses on available for sale and held to maturity debt securities, net ^(b)		11			3			7
Add: Restructuring charge^(c)		—			1,085			620
Add: Net losses on the sale of commercial real estate loans ^(d)		—			7,866			—
Less: Gain on sale of commercial premium finance lending division ^(e)		—			—			(3,629	)
Less: Income tax benefit ^(f)		—			(46,431	)		—
Total non-GAAP adjustments to net income		11			(37,477	)		4,392
Income tax adjustments related to non-GAAP adjustments ^(g)		(3	)		(2,520	)		(1,224	)
Net income, as adjusted (non-GAAP)	$	106,066		$	75,714		$	99,448
Dividends on preferred stock		6,955			7,025			4,119
Net income available to common shareholders, as adjusted (non-GAAP)	$	99,111		$	68,689		$	95,329

(a) Included in the FDIC insurance assessment.
(b) Included in gains on securities transactions, net.
(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
(d) Represents actual and mark to market losses on commercial real estate loan sales included in gains (losses) on sales of loans, net.
(e) Included in gains (losses) on sales of assets, net within non-interest income.
(f) Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest due to statute of limitation expirations included in income tax expense (benefit).
(g) Calculated using the appropriate blended statutory tax rate for the applicable period.

Adjusted per common share data (non-GAAP):
Net income available to common shareholders, as adjusted (non-GAAP)	$	99,111		$	68,689		$	95,329
Average number of shares outstanding		559,613,272			536,159,463			508,340,719
Basic earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.19
Average number of diluted shares outstanding		563,305,525			540,087,600			510,633,945
Diluted earnings, as adjusted (non-GAAP)	$	0.18		$	0.13		$	0.19
Adjusted annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	106,066		$	75,714		$	99,448
Average shareholders’ equity	$	7,458,177		$	7,255,159		$	6,725,695
Less: Average goodwill and other intangible assets		1,994,061			2,000,574			2,024,999
Average tangible shareholders’ equity	$	5,464,116		$	5,254,585		$	4,700,696
Annualized return on average tangible shareholders’ equity, as adjusted (non-GAAP)		7.76	%		5.76	%		8.46	%
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)	$	106,066		$	75,714		$	99,448
Average assets	$	61,502,768		$	62,865,338		$	61,256,868
Annualized return on average assets, as adjusted (non-GAAP)		0.69	%		0.48	%		0.65	%

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)

	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands, except for share data)	2025			2024			2024
Adjusted annualized return on average shareholders’ equity (non-GAAP):
Net income, as adjusted (non-GAAP)	$	106,066		$	75,714		$	99,448
Average shareholders’ equity	$	7,458,177		$	7,255,159		$	6,725,695
Annualized return on average shareholders’ equity, as adjusted (non-GAAP)		5.69	%		4.17	%		5.91	%
Annualized return on average tangible shareholders’ equity (non-GAAP):
Net income, as reported (GAAP)	$	106,058		$	115,711		$	96,280
Average shareholders’ equity	$	7,458,177		$	7,255,159		$	6,725,695
Less: Average goodwill and other intangible assets		1,994,061			2,000,574			2,024,999
Average tangible shareholders’ equity	$	5,464,116		$	5,254,585		$	4,700,696
Annualized return on average tangible shareholders’ equity (non-GAAP)		7.76	%		8.81	%		8.19	%

Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)	$	276,618		$	278,582		$	280,310
Less: FDIC special assessment (pre-tax)		—			—			7,394
Less: Restructuring charge (pre-tax)		—			1,085			620
Less: Amortization of tax credit investments (pre-tax)		9,320			1,740			5,562
Non-interest expense, as adjusted (non-GAAP)	$	267,298		$	275,757		$	266,734
Net interest income, as reported (GAAP)		420,105			422,977			393,548
Non-interest income, as reported (GAAP)		58,294			51,202			61,415
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)		11			3			7
Add: Net losses on the sale of commercial real estate loans (pre-tax)		—			7,866			—
Less: Gain on sale of premium finance division (pre-tax)		—			—			(3,629	)
Non-interest income, as adjusted (non-GAAP)	$	58,305		$	59,071		$	57,793
Gross operating income, as adjusted (non-GAAP)	$	478,410		$	482,048		$	451,341
Efficiency ratio (non-GAAP)		55.87	%		57.21	%		59.10	%

	As of
	March 31,			December 31,			September 30,			June 30,			March 31,
($ in thousands, except for share data)	2025			2024			2024			2024			2024
Tangible book value per common share (non-GAAP):
Common shares outstanding		560,028,101			558,786,093			509,252,936			509,205,014			508,893,059
Shareholders’ equity (GAAP)	$	7,499,897		$	7,435,127		$	6,972,380		$	6,737,737		$	6,727,139
Less: Preferred stock		354,345			354,345			354,345			209,691			209,691
Less: Goodwill and other intangible assets		1,990,276			1,997,597			2,004,414			2,012,580			2,020,405
Tangible common shareholders’ equity (non-GAAP)	$	5,155,276		$	5,083,185		$	4,613,621		$	4,515,466		$	4,497,043
Tangible book value per common share (non-GAAP)	$	9.21		$	9.10		$	9.06		$	8.87		$	8.84
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders’ equity (non-GAAP)	$	5,155,276		$	5,083,185		$	4,613,621		$	4,515,466		$	4,497,043
Total assets (GAAP)		61,865,655			62,491,691			62,092,332			62,058,974			61,000,188
Less: Goodwill and other intangible assets		1,990,276			1,997,597			2,004,414			2,012,580			2,020,405
Tangible assets (non-GAAP)	$	59,875,379		$	60,494,094		$	60,087,918		$	60,046,394		$	58,979,783
Tangible common equity to tangible assets (non-GAAP)		8.61	%		8.40	%		7.68	%		7.52	%		7.62	%

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)


	March 31,			December 31,
	2025			2024
	(Unaudited)
Assets
Cash and due from banks	$	508,887		$	411,412
Interest bearing deposits with banks		714,810			1,478,713
Investment securities:
Equity securities		74,425			71,513
Available for sale debt securities		3,658,704			3,369,724
Held to maturity debt securities (net of allowance for credit losses of $633 at March 31, 2025 and $647 at December 31, 2024)		3,545,328			3,531,573
Total investment securities		7,278,457			6,972,810
Loans held for sale (includes fair value of $8,427 at March 31, 2025 and $16,931 at December 31, 2024 for loans originated for sale)		27,377			25,681
Loans		48,657,128			48,799,711
Less: Allowance for loan losses		(578,200	)		(558,850	)
Net loans		48,078,928			48,240,861
Premises and equipment, net		344,123			350,796
Lease right of use assets		334,013			328,475
Bank owned life insurance		733,135			731,574
Accrued interest receivable		238,326			239,941
Goodwill		1,868,936			1,868,936
Other intangible assets, net		121,340			128,661
Other assets		1,617,323			1,713,831
Total Assets	$	61,865,655		$	62,491,691
Liabilities
Deposits:
Non-interest bearing	$	11,628,578		$	11,428,674
Interest bearing:
Savings, NOW and money market		26,413,258			26,304,639
Time		11,924,008			12,342,544
Total deposits		49,965,844			50,075,857
Short-term borrowings		59,026			72,718
Long-term borrowings		2,904,567			3,174,155
Junior subordinated debentures issued to capital trusts		57,542			57,455
Lease liabilities		394,334			388,303
Accrued expenses and other liabilities		984,445			1,288,076
Total Liabilities		54,365,758			55,056,564
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at March 31, 2025 and December 31, 2024)		111,590			111,590
Series B (4,000,000 shares issued at March 31, 2025 and December 31, 2024)		98,101			98,101
Series C (6,000,000 shares issued at March 31, 2025 and December 31, 2024)		144,654			144,654
Common stock (no par value, authorized 650,000,000 shares; issued 560,278,101 shares at March 31, 2025 and 558,786,093 shares at December 31, 2024)		196,520			195,998
Surplus		5,444,756			5,442,070
Retained earnings		1,634,690			1,598,048
Accumulated other comprehensive loss		(128,252	)		(155,334	)
Treasury stock, at cost (250,000 common shares at March 31, 2025)		(2,162	)		—
Total Shareholders’ Equity		7,499,897			7,435,127
Total Liabilities and Shareholders’ Equity	$	61,865,655		$	62,491,691

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)

	Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Interest Income
Interest and fees on loans	$	703,609		$	750,667		$	771,553
Interest and dividends on investment securities:
Taxable		63,898			55,983			35,797
Tax-exempt		4,702			4,803			4,796
Dividends		5,664			5,860			6,828
Interest on federal funds sold and other short-term investments		6,879			17,513			9,682
Total interest income		784,752			834,826			828,656
Interest Expense
Interest on deposits:
Savings, NOW and money market		200,221			214,489			232,506
Time		125,069			158,716			151,065
Interest on short-term borrowings		2,946			293			20,612
Interest on long-term borrowings and junior subordinated debentures		36,411			38,351			30,925
Total interest expense		364,647			411,849			435,108
Net Interest Income		420,105			422,977			393,548
(Credit) provision for credit losses for available for sale and held to maturity securities		(14	)		(429	)		(74	)
Provision for credit losses for loans		62,675			106,965			45,274
Net Interest Income After Provision for Credit Losses		357,444			316,441			348,348
Non-Interest Income
Wealth management and trust fees		15,031			16,425			17,930
Insurance commissions		3,402			3,705			2,251
Capital markets		6,940			7,425			5,670
Service charges on deposit accounts		12,726			12,989			11,249
Gains on securities transactions, net		46			1			49
Fees from loan servicing		3,215			3,071			3,188
Gains (losses) on sales of loans, net		2,197			(4,698	)		1,618
Gains (losses) on sales of assets, net		43			(20	)		3,694
Bank owned life insurance		4,777			3,775			3,235
Other		9,917			8,529			12,531
Total non-interest income		58,294			51,202			61,415
Non-Interest Expense
Salary and employee benefits expense		142,618			137,117			141,831
Net occupancy expense		25,888			26,576			24,323
Technology, furniture and equipment expense		29,896			35,482			35,462
FDIC insurance assessment		12,867			14,002			18,236
Amortization of other intangible assets		8,019			8,373			9,412
Professional and legal fees		15,670			21,794			16,465
Amortization of tax credit investments		9,320			1,740			5,562
Other		32,340			33,498			29,019
Total non-interest expense		276,618			278,582			280,310
Income Before Income Taxes		139,120			89,061			129,453
Income tax expense (benefit)		33,062			(26,650	)		33,173
Net Income		106,058			115,711			96,280
Dividends on preferred stock		6,955			7,025			4,119
Net Income Available to Common Shareholders	$	99,103		$	108,686		$	92,161

VALLEY NATIONAL BANCORP
Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and
Net Interest Income on a Tax Equivalent Basis

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
	Average					Avg.		Average					Avg.		Average					Avg.
($ in thousands)	Balance		Interest			Rate		Balance		Interest			Rate		Balance		Interest			Rate
Assets
Interest earning assets:
Loans ⁽¹⁾⁽²⁾	$	48,654,921	$	703,632		5.78	%	$	49,730,130	$	750,690		6.04	%	$	50,246,591	$	771,577		6.14	%
Taxable investments ⁽³⁾		7,100,958		69,562		3.92			6,504,106		61,843		3.80			5,094,978		42,625		3.35
Tax-exempt investments ⁽¹⁾⁽³⁾		552,291		5,952		4.31			565,877		6,080		4.30			579,842		6,071		4.19
Interest bearing deposits with banks		583,521		6,879		4.72			1,414,670		17,513		4.95			697,386		9,682		5.55
Total interest earning assets		56,891,691		786,025		5.53			58,214,783		836,126		5.75			56,618,797		829,955		5.86
Other assets		4,611,077							4,650,555							4,638,071
Total assets	$	61,502,768						$	62,865,338						$	61,256,868
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	26,345,983	$	200,221		3.04		$	25,928,201	$	214,489		3.31	%	$	24,793,452	$	232,506		3.75	%
Time deposits		11,570,758		125,069		4.32			13,530,980		158,716		4.69			12,599,395		151,065		4.80
Short-term borrowings		307,637		2,946		3.83			72,504		293		1.62			1,537,879		20,612		5.36
Long-term borrowings ⁽⁴⁾		3,006,331		36,411		4.84			3,234,264		38,351		4.74			2,625,862		30,925		4.71
Total interest bearing liabilities		41,230,709		364,647		3.54			42,765,949		411,849		3.85			41,556,588		435,108		4.19
Non-interest bearing deposits		11,222,562							11,266,899							11,183,127
Other liabilities		1,591,320							1,577,331							1,791,458
Shareholders’ equity		7,458,177							7,255,159							6,725,695
Total liabilities and shareholders’ equity	$	61,502,768						$	62,865,338						$	61,256,868

Net interest income/interest rate spread ⁽⁵⁾			$	421,378		1.99	%			$	424,277		1.90	%			$	394,847		1.67	%
Tax equivalent adjustment				(1,273	)						(1,300	)						(1,299	)
Net interest income, as reported			$	420,105						$	422,977						$	393,548
Net interest margin ⁽⁶⁾						2.95							2.91							2.78
Tax equivalent effect						0.01							0.01							0.01
Net interest margin on a fully tax equivalent basis ⁽⁶⁾						2.96	%						2.92	%						2.79	%

_________

(1)	Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
(2)	Loans are stated net of unearned income and include non-accrual loans.
(3)	The yield for securities that are classified as available for sale is based on the average historical amortized cost.
(4)	Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition.
(5)	Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(6)	Net interest income as a percentage of total average interest earning assets.

SHAREHOLDERS RELATIONS
Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com.

Contact:	Travis Lan
	Senior Executive Vice President and
	Chief Financial Officer
	973-686-5007

The MIL Network –

April 24, 2025

MIL-OSI: Manhattan Bridge Capital, Inc. Reports First Quarter Results for 2025

Source: GlobeNewswire (MIL-OSI)

GREAT NECK, N.Y., April 24, 2025 (GLOBE NEWSWIRE) — Manhattan Bridge Capital, Inc. (Nasdaq: LOAN) (the “Company”) announced today that its net income for the three months ended March 31, 2025 was approximately $1,373,000, or $0.12 per share (based on approximately 11.4 million weighted-average outstanding common shares), compared to approximately $1,476,000, or $0.13 per share (based on approximately 11.4 million weighted-average outstanding common shares) for the three months ended March 31, 2024, a decrease of $103,000, or 7.0%. This decrease is primarily attributable to a decrease in interest income from loans, partially offset by a decrease in interest expense.

Total revenues for the three months ended March 31, 2025 were approximately $2,274,000 compared to approximately $2,573,000 for the three months ended March 31, 2024, a decrease of $299,000, or 11.6%. The decrease in revenue was primarily attributable to lower interest income, resulting from a reduction in loans receivable, period over period. For the three months ended March 31, 2025, approximately $1,834,000 of the Company’s revenue represents interest income on secured commercial loans that the Company offers to real estate investors, compared to approximately $2,142,000 for the same period in 2024, and approximately $440,000 and $431,000, respectively, represent origination fees on such loans. The loans are principally secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers.

As of March 31, 2025, total shareholders’ equity was approximately $43,326,000.

Assaf Ran, Chairman of the Board and Chief Executive Officer of the Company, stated, “The first quarter of 2025 began with an optimistic consensus among the real estate investor community. However, due to the delays in the reduction of interest rates and global economic uncertainty, we now sense some concerns about the likelihood of an immediate recovery of the real estate market. Again, thanks to our low leverage, strict underwriting, and strong relationships with our borrowers, we believe that we remain well-positioned to navigate these challenges.”

About Manhattan Bridge Capital, Inc.

Manhattan Bridge Capital, Inc. offers short-term secured, non–banking loans (sometimes referred to as ‘‘hard money’’ loans) to real estate investors to fund their acquisition, renovation, rehabilitation or improvement of properties located in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. We operate the website: https://www.manhattanbridgecapital.com.

Forward Looking Statements

This press release and the statements of the Company’s representatives related thereto contain or may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate,” or “continue” are intended to identify forward-looking statements. For example, when the Company discusses its belief that it remains well-positioned to navigate market challenges, it is using forward looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this news release. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those projected, expressed or implied in the forward-looking statements as a result of various factors, including but not limited to the following: (i) our loan origination activities, revenues and profits are limited by available funds; (ii) we operate in a highly competitive market and competition may limit our ability to originate loans with favorable interest rates; (iii) our Chief Executive Officer is critical to our business and our future success may depend on our ability to retain him; (iv) if we overestimate the yields on our loans or incorrectly value the collateral securing the loan, we may experience losses; (v) we may be subject to “lender liability” claims; (vi) our due diligence may not uncover all of a borrower’s liabilities or other risks to its business; (vii) borrower concentration could lead to significant losses; (viii) we may choose to make distributions in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive; (ix) an increase in interest rates may impact our profitability; (x) we may be unsuccessful in our efforts to extend or replace our existing credit line; and (xi) we may be unsuccessful in our efforts to refinance our 6% senior secured notes, due April 22, 2026. The risk factors contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission identify important factors that could cause such differences. These forward-looking statements speak only as of the date of this press release, and we caution potential investors not to place undue reliance on such statements. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS

Assets	March 31, 2025 (unaudited)		December 31, 2024 (audited)
Loans receivable, net of deferred origination and other fees	$	63,672,278	$	65,405,731
Interest and other fees receivable on loans		1,618,826		1,521,033
Cash		201,363		178,012
Cash – restricted		21,769		23,750
Other assets		119,642		62,080
Right-of-use asset – operating lease, net		140,836		154,039
Deferred financing costs, net		12,706		16,171
Total assets	$	65,787,420	$	67,360,816

Liabilities and Stockholders’ Equity
Liabilities:
Line of credit	$	14,825,735	$	16,427,874
Senior secured notes (net of deferred financing costs of $78,214 and $96,985, respectively)		5,921,786		5,903,015
Accounts payable and accrued expenses		194,801		232,236
Operating lease liability		153,571		167,119
Loan holdback		50,000		50,000
Dividends payable		1,315,445		1,315,445
Total liabilities		22,461,338		24,095,689
Commitments and contingencies

Stockholders’ equity:
Preferred shares – $.01 par value; 5,000,000 shares authorized; none issued and outstanding		—		—
Common shares – $.001 par value; 25,000,000 shares authorized; 11,757,058 issued; 11,438,651 outstanding		11,757		11,757
Additional paid-in capital		45,565,207		45,561,941
Less: Treasury stock, at cost – 318,407 shares		(1,070,406)		(1,070,406)
Accumulated deficit		(1,180,476)		(1,238,165)
Total stockholders’ equity		43,326,082		43,265,127
Total liabilities and stockholders’ equity	$	65,787,420	$	67,360,816

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended March 31,
		2025		2024
Revenue:
Interest income from loans	$1,833,914		$2,142,487
Origination fees		439,799		430,591
Total revenue		2,273,713		2,573,078
Operating costs and expenses:
Interest and amortization of deferred financing costs		451,365		690,589
Referral fees		144		500
General and administrative expenses		453,570		410,278
Total operating costs and expenses		905,079		1,101,367

Income from operations		1,368,634		1,471,711
Other income		4,500		4,500
Net income	$1,373,134		$1,476,211

Basic and diluted net income per common share outstanding:
–Basic	$0.12		$0.13
–Diluted	$0.12		$0.13

Weighted average number of common shares outstanding:
–Basic		11,438,651		11,438,673
–Diluted		11,438,651		11,438,673

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(unaudited)

FOR THE THREE MONTHS ENDED MARCH 31, 2025

Common Shares

Additional
Paid-in
Capital

Treasury Stock

Accumulated
Deficit

Totals

Shares

Amount

Shares

Cost

Balance, January 1, 2025

11,757,058

$11,757

$45,561,941

318,407

$(1,070,406)

$(1,238,165)

$43,265,127

Non-cash compensation

3,266

Dividends declared and payable

(1,315,445)

Net income

.

1,373,134

Balance, March 31, 2025

11,757,058

$11,757

$45,565,207

318,407

$(1,070,406)

$(1,180,476)

$43,326,082

FOR THE THREE MONTHS ENDED MARCH 31, 2024

Common Shares

Additional
Paid-in
Capital

Treasury Stock

Accumulated
Deficit

Totals

Shares

Amount

Shares

Cost

Balance, January 1, 2024

11,757,058

$11,757

$45,548,876

316,407

$(1,060,606)

$(1,567,321)

$42,932,706

Non-cash compensation

3,266

Purchase of treasury shares

2,000

(9,800)

Dividends declared and payable

(1,315,445)

Net income

.

1,476,211

Balance, March 31, 2024

11,757,058

$11,757

$45,552,142

318,407

$(1,070,406)

$(1,406,555)

$43,086,938

MANHATTAN BRIDGE CAPITAL, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

	Three Months Ended March 31,
		2025		2024
Cash flows from operating activities:
Net income	$	1,373,134	$	1,476,211
Adjustments to reconcile net income to net cash provided by operating activities –
Amortization of deferred financing costs		22,237		21,954
Adjustment to right-of-use asset – operating lease and liability		(345)		121
Depreciation		1,390		1,055
Non-cash compensation expense		3,266		3,266
Changes in operating assets and liabilities:
Interest and other fees receivable on loans		(110,915)		(231,202)
Other assets		(58,952)		(35,153)
Accounts payable and accrued expenses		(37,435)		(31,600)
Deferred origination and other fees		(11,437)		(63,996)
Net cash provided by operating activities		1,180,943		1,140,656

Cash flows from investing activities:
Issuance of short-term loans		(10,940,040)		(9,538,000)
Collections received from loans		12,698,051		10,102,525
Net cash provided by investing activities		1,758,011		564,525

Cash flows from financing activities:
Repayment of line of credit, net		(1,602,139)		(1,701,661)
Dividend paid		(1,315,445)		(1,287,073)
Purchase of treasury shares		—		(9,800
Net cash used in financing activities		(2,917,584)		(2,998,534)

Net increase (decrease) in cash		21,370		(1,293,353)
Cash and restricted cash, beginning of period⁽¹⁾		201,762		1,691,995
Cash and restricted cash, end of period⁽²⁾	$	223,132	$	398,642

Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	$	437,993	$	667,488
Cash paid during the period for operating leases	$	15,991	$	16,370

Supplemental Schedule of Noncash Financing Activities:
Dividend declared and payable	$	1,315,445	$	1,315,445

Supplemental Schedule of Noncash Operating and Investing Activities:
Reduction in interest receivable in connection with the increase in loans receivable	$	13,122	$	112,271

⁽¹⁾ At December 31, 2024 and 2023, cash and restricted cash included $23,750 and $1,587,773, respectively, of restricted cash.
⁽²⁾ At March 31, 2025 and 2024, cash and restricted cash included $21,769 and $311,545, respectively, of restricted cash.

SOURCE: Manhattan Bridge Capital, Inc.

The MIL Network –

April 24, 2025

MIL-OSI: Crypto.com Selects Bread Financial to Launch New Crypto-based Rewards Credit Card Program in the U.S.

Source: GlobeNewswire (MIL-OSI)

COLUMBUS, Ohio, April 24, 2025 (GLOBE NEWSWIRE) — Bread Financial ^® (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced a multi-year agreement with Crypto.com, one of the world’s largest cryptocurrency exchanges, to launch the first Crypto.com credit card program in the United States.

The Crypto.com Visa Signature^® Credit Card will offer Crypto.com customers a new way to make purchases, while earning CRO rewards¹. With five credit card tiers, from Midnight Blue to Obsidian, cardmembers can earn uncapped CRO rewards at varying rates. For the first twelve months from account open or tier upgrade, select tiers will enjoy elevated CRO reward rates². Higher tiers will have additional benefits through Crypto.com’s Level Up program, such as unlimited Spotify and Netflix rebates³.

Crypto.com customers will be able to pre-qualify or apply for a credit card directly through the Crypto.com app. Once approved, cardmembers can immediately add their card to their digital wallets. CRO rewards are deposited into the cardmember’s Crypto Wallet within the Crypto.com app, where they can view real-time earnings, and exchange CRO for hundreds of other cryptocurrencies, thousands of stocks, sports event trading, NFTs, staking and more.

“This credit card offers straightforward, compelling rewards that will help even the most novice trader maximize their investments with every purchase, while enabling experienced traders to incrementally stack gains over time as they use the card and move through the Level Up program,” said Val Greer, executive vice president and chief commercial officer at Bread Financial. “We are excited to team up with Crypto.com to unlock this new payment option that will quickly become a must have credit card for its customers.”

“We are continually looking for innovative ways to give our customers greater access to new payment options, expanding their ability to make purchases and grow their rewards,” said Joe Anzures, general manager of Americas and EVP of payments at Crypto.com. “Partnering with a tech-forward company like Bread Financial to create innovative payment solutions provides our customers with a rewarding user experience and further advances the adoption of crypto.”

Committed to accelerating the adoption of cryptocurrency through innovation, Crypto.com is trusted by more than 140 million customers worldwide. The credit card program will be available to U.S. customers this summer. More information on the launch may be found here.

About Bread Financial^®
Bread Financial^® (NYSE: BFH) is a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions to millions of U.S. consumers. Our payment solutions, including Bread Financial general purpose credit cards and savings products, empower our customers and their passions for a better life. Additionally, we deliver growth for some of the most recognized brands in travel & entertainment, health & beauty, jewelry and specialty apparel through our private label and co-brand credit cards and pay-over-time products providing choice and value to our shared customers.

To learn more about Bread Financial, our global associates and our sustainability commitments, visit breadfinancial.com or follow us on Instagram and LinkedIn.

About Crypto.com
Founded in 2016, Crypto.com is trusted by more than 140 million customers worldwide and is an industry leader in regulatory compliance, security and privacy. Our vision is simple: Cryptocurrency in Every Wallet™. Crypto.com is committed to accelerating the adoption of cryptocurrency through innovation.

Learn more at https:crypto.com/us.

¹Level Up tiers require CRO lockup or Staking. If you do not wish to lockup or Stake, select the Midnight Blue tier. Offer is exclusive to Crypto.com Visa Signature^® Credit Card holders enrolled in the Level Up program. This rewards program is provided by Crypto.com and its terms may change at any time. Full Rewards Terms and Conditions will be available at program launch. Crypto.com calculates and awards the amount of CRO tokens earned based on the current market rate at the time of your purchase.

²Limit of one 12 month period of Boost Rate per tier upgrade. Level up tiers require CRO lockup or Staking for 12 months from Crypto.com Visa Credit Card account opening. If you do not wish to lockup or Stake, select the Midnight Blue tier which is not eligible for this offer. Offer is exclusive to Crypto.com Visa Signature^® Credit Card holders enrolled in the Level Up program. This rewards program is provided by Crypto.com and its terms may change at any time. Full Rewards Terms and Conditions will be available at program launch. Crypto.com calculates and awards the amount of CRO tokens earned based on the current market rate at the time of your purchase.

³Offer is available to Level Up members that are in the Ruby, Jade/Indigo, Icy/Rose, and Obsidian tiers.

Credit card offers are subject to credit approval.

Crypto.com Visa Signature^® Credit Card Accounts are issued by Comenity Capital Bank pursuant to a license from Visa U.S.A. Inc. Visa is a registered trademark of Visa International Service Association and used under license.

Contacts
Rachel Stultz – Media
Rachel.Stultz@BreadFinancial.com

The MIL Network –

April 24, 2025

MIL-OSI Asia-Pac: “Indian Telecom Services Performance Indicator Report” for the Quarter October-December, 2024

Source: Government of India

Ministry of Communications

“Indian Telecom Services Performance Indicator Report” for the Quarter October-December, 2024

Posted On: 24 APR 2025 3:46PM by PIB Delhi

TRAI today has released the “Indian Telecom Services Performance Indicator Report” for the Quarter ending 31^st December, 2024. This Report provides a broad perspective of the Telecom Services in India and presents the key parameters and growth trends of the Telecom Services as well as Cable TV, DTH & Radio Broadcasting services in India for the period covering 1^st October, 2024 to 31^st December, 2024 compiled mainly on the basis of information furnished by the Service Providers.

Executive Summary of the Report is enclosed. The complete Report is available on TRAI’s website (www.trai.gov.in and under the link http://www. trai.gov.in/release-publication/reports/performance-indicators-reports). Any suggestion or any clarification pertaining to this report, Shri Vijay Kumar, Advisor (F&EA), TRAI may be contacted on Tel. +91-20907773 and e-mail: advfea1@trai.gov.in.

The Indian Telecom Services Performance Indicators

October–December, 2024

Executive Summary

Total number of Internet subscribers decreased from 971.50 million at the end of Sep-24 to 970.16 million at the end of Dec-24, registering a quarterly rate of decline 0.14%. Out of 970.16 million internet subscribers, number of Wired Internet subscribers are 41.21 million and number of Wireless Internet subscribers are 928.96 million.

Composition of internet subscription

The Internet subscriber base is comprised of Broadband Internet subscriber base of 944.96 million and Narrowband Internet subscriber base of 25.20 million.
The broadband Internet subscriber base increased by 0.06% from 944.39 million at the end of Sep-24 to 944.96 million at the end of Dec-24. The narrowband Internet subscriber base decreased from 27.11 million at the end of Sep-24 to 25.20 million at the end of Dec-24.

Wireline subscribers increased from 36.93 million at the end of Sep-24 to 39.27 million at the end of Dec-24 with a quarterly rate of growth 6.32% and, on Y-O-Y basis, wireline subscriptions also increased by 23.32% at the end of QE Dec-24.
Wireline Tele-density increased from 2.63% at the end of Sep-24 to 2.79% at the end of Dec-24 with quarterly rate of growth 6.09%.
Monthly Average Revenue per User (ARPU) for wireless service increased by 5.34%, from Rs.172.57 in QE Sep-24 to Rs.181.80 in QE Dec-24. On Y-O-Y basis, monthly ARPU for wireless service increased by 19.17% in this quarter.

The ARPU per month for the pre-paid segment is Rs.180.91 and for the post-paid segment is Rs.191.51 in Q.E. Dec-2024.
On an all-India average, the overall MOU per month Increased by 3.62% from 974 in Q.E. Sep 2024 to 1009 in Q.E. Dec 2024.

Prepaid MOU per subscriber is 1053 and Postpaid MOU per subscriber per month is 526 in QE Dec-24.

Gross Revenue (GR), Applicable Gross Revenue (ApGR) and Adjusted Gross Revenue (AGR) of Telecom Service Sector for the Q.E. Dec-24 has been Rs.96,390 Crore, Rs.92,342 crore and Rs.77,934 Crore respectively. GR increased by 5.43%, ApGR increased by 4.65% and AGR increased by 3.48% in Q.E. Dec-24, as compared to previous quarter.

The Y-O-Y rate of growth in GR, ApGR and AGR in Q.E. Dec-24 over the same quarter in last year has been 14.07%, 13.86% and 14.89% respectively.

Pass Through Charges increased from Rs.12,926 Crore in QE Sep-24 to Rs.14,410 Crore in QE Dec-24 with quarterly rate of growth by 11.48%. The Y-O-Y rate of growth 7.12% has been recorded in pass-through charges for QE Dec-24.
The License Fee increased from Rs.6,023 Crore for the QE Sep-24 to Rs.6,234 Crore for the QE Dec-24. The quarterly and the Y-O-Y rates of growth in license fees are 3.50% and 14.75% respectively in this quarter.

Service-wise composition of Adjusted Gross Revenue

Access services contributed 84.35% of the total Adjusted Gross Revenue of telecom services. In Access services, Gross Revenue (GR), Applicable Gross Revenue (ApGR), Adjusted Gross Revenue (AGR), License Fee, Spectrum Usage Charges (SUC) and Pass Through Charges increased by 4.87%, 4.52%, 4.30%, 4.28%, 4.62% and 5.96% respectively in QE Dec-24.
The number of telephone subscribers in India decreased from 1,190.66 million at the end of Sep-24 to 1,189.92 million at the end of Dec-24, registering a rate of decline 0.06% over the previous quarter. This reflects Year-On-Year (Y-O-Y) rate of decline 0.03% over the same quarter of the last year. The overall Tele-density in India decreased from 84.69% as in QE Sep-24 to 84.45% as in QE Dec-24.

Trends in Telephone subscribers and Tele-density in India

Telephone subscribers in Urban areas increased from 662.15 million at the end of Sep-24 to 662.72 million at the end of Dec-24 however Urban Tele-density decreased from 131.86% to 131.37% during the same period.
Rural telephone subscribers decreased from 528.51 million at the end of Sep-24 to 527.20 million at the end of Dec-24 and Rural Tele-density also decreased from 58.48% to 58.29% during the same period.

Out of the total subscription, the share of Rural subscription decreased from 44.39% at the end of Sep-24 to 44.31% at the end of Dec-24.

Composition of Telephone Subscribers

With a net loss of 3.07 million subscribers during the quarter, the total wireless subscriber base decreased from 1153.72 million at the end of Sep-24 to 1150.66 million at the end of Dec-24, registering a rate of decline 0.27% over the previous quarter. On Y-O-Y basis, wireless subscriptions decreased at the rate of 0.68% during the year.
Wireless Tele-density decreased from 82.07% at the end of Sep-24 to 81.67% at the end of Dec-24 with quarterly rate of decline of 0.49%.

During this quarter, the following parameters in terms of QoS benchmarks have been fully complied by wireline service providers: –

1. Point of Interconnection (POI) Congestion (90th percentile value) ≤ 0.5%
During this quarter, list of QoS parameters which are fully complied by all the Access Service (Wireless) providers in all the LSAs: –

S.No.	Parameter	Benchmark
1	Percentage of significant network outage (services not available in a district for more than 4 hours) reported to the Authority within 24 hrs of start of the outage	100%
2	Point of Interconnection (POI) Congestion (90th percentile value)	≤ 0.5%
3	Latency (in 4G and 5G network)	≤ 75 msec
4	Packet Drop Rate (in 4G and 5G network)	≤ 3%
5	Billing and charging complaints	≤ 0.1%
6	Application of adjustment to customer’s account within one week from the date of resolution of billing and charging complaints or rectification of faults or rectification of significant network outage, as applicable	100%
7	Accessibility of call centre/ customer care	≥ 95%
8	Termination/ closure of service within seven working days of receipt of customer’s request	100%
9	Refund of deposits within 45 days of closure of service or non-provisioning of service	100%

A total of approximately 914 private satellite TV channels have been permitted by the Ministry of Information and Broadcasting (MIB) for uplinking only/downlinking only/both uplinking & downlinking.
As per the reporting done by broadcasters in pursuance of the Tariff Order dated 3^rd March 2017, as amended, out of 904 permitted satellite TV channels which are available for downlinking in India, there are 362 satellite pay TV channels as on 31^st December, 2024. Out of 362 pay channels, 258 are SD satellite pay TV channels and 104 are HD satellite pay TV channels.
During the QE 31^st December 2024, there were 4 pay DTH service providers in the country.

Pay DTH has attained total active subscriber base of around 58.22 million. This is in addition to the subscribers of the DD Free Dish (free DTH services of Doordarshan). The total active subscriber base has decreased from 59.91 million in September 2024 to 58.22 million in December 2024.
Apart from the radio channels operated by All India Radio – the public broadcaster, as per the data reported by FM Radio operators to TRAI, as on 31^st December 2024, there are 388 operational private FM Radio channels in 113 cities operated by 36 private FM Radio operators. As compared to the previous quarter, there is no change in the number of operational private FM Radio channels, cities and FM Radio operators.

The advertisement revenue reported by FM Radio operators during the quarter ending 31^st December 2024 in respect of 388 private FM Radio channels is Rs.500.11 crore as against Rs.423.52 crore in respect of 388 private FM Radio channels for the previous quarter.

As on 31^st December, 2024, 529 Community Radio stations are operational.

SNAPSHOT

(Data as on Q.E. 31^st December, 2024)
Telecom Subscribers (Wireless+Wireline)
Total Subscribers	1189.92 Million
% change over the previous quarter	-0.06%
Urban Subscribers	662.72 Million
Rural Subscribers	527.20 Million
Market share of Private Operators	91.45%
Market share of PSU Operators	8.55%
Tele-density	84.45%
Urban Tele-density	131.37%
Rural Tele-density	58.29%
Wireless Subscribers
Total Wireless Subscribers	1,150.66 Million
% change over the previous quarter	-0.27%
Urban Subscribers	626.43 Million
Rural Subscribers	524.23 Million
Market share of Private Operators	91.92%
Market share of PSU Operators	8.08%
Tele-density	81.67%
Urban Tele-density	124.18%
Rural Tele-density	57.96%
Total Wireless Data Usage during the quarter	56,975 PB
Number of Public Mobile Radio Trunk Services (PMRTS)	65,996
Number of Very Small Aperture Terminals (VSAT)	2,52,612
Wireline Subscribers
Total Wireline Subscribers	39.27 Million
% change over the previous quarter	6.32%
Urban Subscribers	36.29 Million
Rural Subscribers	2.98 Million
Market share of PSU Operators	22.23%
Market share of Private Operators	77.77%
Tele-density	2.79%
Rural Tele-density	0.33%
Urban Tele-density	7.19%
No. of Village Public Telephones (VPT)	68,606
No. of Public Call Office (PCO)	13,442

Telecom Financial Data
Gross Revenue (GR) during the quarter	Rs. 96,390/- crore
% change in GR over the previous quarter	5.43%
Applicable Gross Revenue (ApGR) during quarter	Rs. 92,342/- crore
% change in ApGR over the previous quarter	4.65%
Adjusted Gross Revenue (AGR) during the quarter	Rs.77,934/- crore
% change in AGR over the previous quarter	3.48%
Share of Public sector undertakings in Access AGR	3.72%
Internet/Broadband Subscribers
Total Internet Subscribers	970.16 Million
% change over previous quarter	-0.14%
Narrowband subscribers	25.20 Million
Broadband subscribers	944.96 Million
Wired Internet Subscribers	41.21 Million
Wireless Internet Subscribers	928.96 Million
Urban Internet Subscribers	563.19 Million
Rural Internet Subscribers	406.97 Million M
Total Internet Subscribers per 100 population	68.86
Urban Internet Subscribers per 100 population	111.64
Rural Internet Subscribers per 100 population	44.99
Total Outgoing Minutes of Usage for Internet Telephony	87.53 Million
No. of Public Wi-Fi Hotspots	46,878
Aggregate Data Consumed (TB) for Wi-Fi Hotspots	15,714
Broadcasting & Cable Services
Number of private satellite TV channels permitted by the Ministry of I&B for uplinking only/downlinking only/both uplinking and downlinking	914
Number of Pay TV Channels as reported by broadcasters	362
Number of private FM Radio Stations (excluding All India Radio)	388
Number of total active subscribers with pay DTH operators	58.22 Million
Number of Operational Community Radio Stations	529
Number of pay DTH Operators	4
Revenue & Usage Parameters
Monthly ARPU of Wireless Service	Rs.181.80
Minutes of Usage (MOU) per subscriber per month – Wireless Service	1009
Wireless Data Usage
Average Wireless Data Usage per wireless data subscriber per month	21.52 GB
Average revenue realization per GB for wireless data usage during the quarter	Rs.9.34

****************

Samrat

(Release ID: 2124056)

MIL OSI Asia Pacific News –

April 24, 2025

MIL-OSI Asia-Pac: India’s Underground Coal Mining Gets a Major Boost with New Incentives by Ministry of Coal

Source: Government of India

Posted On: 24 APR 2025 11:05AM by PIB Delhi

In a decisive step towards revitalizing India’s coal sector, the Ministry of Coal has introduced a series of transformative policy measures aimed at promoting underground coal mining. These bold reforms address the traditional challenges of high capital investment and longer gestation periods, reaffirming the Government’s resolve to modernize the coal ecosystem while aligning with the broader vision of sustainable development.

To accelerate the growth/ Operationalization of underground coal mining, the Ministry of Coal has introduced a robust package of incentives:

1. Reduction in Floor Revenue Share: The floor percentage of revenue share for underground coal mines has been reduced from 4% to 2%. This targeted reduction offers substantial fiscal relief and enhances the financial viability of underground projects.

2. Waiver of Upfront Payment: The mandatory upfront payment requirement for underground mining ventures has been completely waived off. This measure removes a significant financial barrier, encouraging broader participation from the private sector and facilitating faster project implementation.

These incentives are further complemented by an existing 50% rebate on performance security for underground coal blocks, collectively lowering the entry threshold and facilitating smoother project implementation.

The Ministry’s reform-oriented approach underscores its commitment to fostering a future-ready, investment-friendly, and innovation-driven coal sector. By incentivizing underground mining, the Government is not only catalyzing economic growth but also driving the industry toward greater efficiency, safety, and employment generation.

Underground coal mining is inherently more environment-friendly, as it causes significantly less surface disruption compared to opencast operations. These policy measures are expected to encourage the adoption of advanced technologies—such as continuous miners, longwall systems, remote sensing tools, and AI-based safety mechanisms—which will boost productivity while ensuring ecological balance.

These forward-leaning reforms mark a strategic shift toward cleaner and more sustainable coal extraction practices. They are poised to unlock the vast untapped potential of underground mining in India, fostering innovation, reducing carbon emissions, and contributing meaningfully to the nation’s energy security and Atmanirbhar Bharat objectives.

With this visionary roadmap, the Ministry of Coal is not only reshaping the future of coal mining but also reaffirming its role as a catalyst in India’s journey toward self-reliant and environmentally responsible industrial growth.

****

Shuhaib T

(Release ID: 2123992) Visitor Counter : 134

MIL OSI Asia Pacific News –

April 24, 2025

MIL-OSI: TransUnion Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Exceeded first quarter 2025 financial guidance across all key financial metrics
Delivered 8 percent organic constant currency revenue growth (7 percent reported) led by U.S. Financial Services, Emerging Verticals and International
De-levered to 2.9x Leverage Ratio at quarter-end and repurchased $10 million shares through mid-April
Maintaining organic constant currency revenue growth guidance of 4.5 to 6 percent (4 to 5.5 percent reported revenue growth)

CHICAGO, April 24, 2025 (GLOBE NEWSWIRE) — TransUnion (NYSE: TRU) (the “Company”) today announced financial results for the quarter ended March 31, 2025.

First Quarter 2025 Results

Revenue:

Total revenue for the quarter was $1,096 million, an increase of 7 percent (8 percent on a constant currency basis), compared with the first quarter of 2024.

Earnings:

Net income attributable to TransUnion was $148 million for the quarter, compared with $65 million for the first quarter of 2024 primarily due to a $56 million reduction of a previously established accrual for a lawsuit that was dismissed in the first quarter of 2025. Diluted earnings per share was $0.75, compared with $0.33 in the first quarter of 2024. Net income attributable to TransUnion margin was 13.5 percent, compared with 6 percent in the first quarter of 2024.
Adjusted Net Income was $208 million for the quarter, compared with $179 million for the first quarter of 2024. Adjusted Diluted Earnings per Share was $1.05, compared with $0.92 in the first quarter of 2024.
Adjusted EBITDA was $397 million for the quarter, compared with $358 million for the first quarter of 2024, an increase of 11 percent (12 percent on a constant currency basis). Adjusted EBITDA margin was 36.2 percent, compared with 35.1 percent in the first quarter of 2024.

“In the first quarter, TransUnion delivered strong results that again exceeded financial guidance,” said Chris Cartwright, President and CEO. “U.S. Markets revenue grew 9 percent against subdued market conditions, led by strong mortgage and accelerating non-mortgage Financial Services and Emerging Verticals growth. International grew 6 percent on a constant currency basis, with high-single digit growth across most markets and India up low-single digits as anticipated.”

“We are maintaining our 2025 organic constant currency revenue guidance of 4.5 to 6 percent, balancing strong outperformance in the first quarter against increasing market risks. We are actively monitoring conditions but to-date have not experienced softening volumes in our business.”

“We believe we are well-positioned to navigate potential economic softening. We have a proven track record of delivering revenue growth through economic cycles, supported by a diversified and high-growth portfolio across solutions, verticals and geographies. Should conditions deteriorate, we are prepared to prudently manage costs while prioritizing the completion of our business transformation to deliver structural cost savings and accelerate innovation.”

First Quarter 2025 Segment Results

Segment revenue and Adjusted EBITDA for the first quarter of 2025 and the related growth rates compared with the first quarter of 2024 were as follows:

(in millions)	First Quarter 2025		Reported Growth Rate		Constant Currency Growth Rate
U.S. Markets:
Financial Services	$	404	15	%	15	%
Emerging Verticals		315	6	%	6	%
Consumer Interactive		138	(1	)%	(1	)%
Total U.S. Markets Revenue	$	857	9	%	9	%

U.S. Markets Adjusted EBITDA	$	320	12	%	12	%

International:
Canada	$	38	—	%	7	%
Latin America		33	—	%	7	%
United Kingdom		59	9	%	9	%
Africa		17	12	%	10	%
India		69	(3	)%	1	%
Asia Pacific		27	7	%	8	%
Total International Revenue	$	242	2	%	6	%

International Adjusted EBITDA	$	110	3	%	7	%

Liquidity and Capital Resources

Cash and cash equivalents was $610 million at March 31, 2025 and $679 million at December 31, 2024.

For the three months ended March 31, 2025, cash provided by operating activities was $53 million, compared with $54 million in 2024. The decrease in cash provided by operating activities was primarily due to the timing of accounts receivable collections and higher bonus payouts in 2025 compared with 2024, mostly offset by improved operating performance and lower interest expense. For the three months ended March 31, 2025, cash used in investing activities was $87 million, compared with $62 million in 2024. The increase in cash used in investing activities was primarily due to a current year investment in a note receivable and an increase in capital expenditures. For the three months ended March 31, 2025, capital expenditures were $68 million, compared with $62 million in 2024. Capital expenditures as a percent of revenue represented 6% for each of the three months ended March 31, 2025 and 2024. For the three months ended March 31, 2025, cash used in financing activities was $41 million, compared with $31 million in 2024. Cash used in financing activities was higher primarily due to stock buybacks in 2025.

Second Quarter and Full Year 2025 Outlook

Our guidance is based on a number of assumptions that are subject to change, many of which are outside of the control of the Company, including general macroeconomic conditions, interest rates and inflation. There are numerous evolving factors that we may not be able to accurately predict. There can be no assurance that the Company will achieve the results expressed by this guidance.

	Three Months Ended June 30, 2025						Twelve Months Ended December 31, 2025
(in millions, except per share data)	Low			High			Low			High
Revenue, as reported	$	1,076		$	1,095		$	4,358		$	4,417
Revenue growth¹:
As reported		3	%		5	%		4	%		5.5	%
Constant currency^{1, 2}		4	%		6	%		5	%		6	%
Organic constant currency^{1, 3}		3	%		5	%		4.5	%		6	%

Net income attributable to TransUnion	$	69		$	77		$	383		$	411
Net income attributable to TransUnion growth	(18		)%	(9		)%		35	%		44	%
Net income attributable to TransUnion margin		6.5	%		7.1	%		8.8	%		9.3	%

Diluted Earnings per Share	$	0.35		$	0.39		$	1.92		$	2.06
Diluted Earnings per Share growth	(20		)%	(10		)%		33	%		43	%

Adjusted EBITDA, as reported⁵	$	375		$	386		$	1,549		$	1,590
Adjusted EBITDA growth, as reported⁴		—	%		3	%		3	%		6	%
Adjusted EBITDA margin		34.8	%		35.3	%		35.6	%		36.0	%

Adjusted Diluted Earnings per Share⁵	$	0.95		$	0.99		$	3.93		$	4.08
Adjusted Diluted Earnings per Share growth	(4		)%		—	%		—	%		4	%

Additional revenue growth assumptions:

The impact of changing exchange rates is expected to be approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
The impact of the recent acquisition is expected to have approximately 1 point of benefit for Q2 2025 and less than 1 point of benefit for FY 2025.
The impact of mortgage is expected to be approximately 2 points of benefit for Q2 2025 and 2 points of benefit for FY 2025.
Constant currency growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
Organic constant currency growth rates are constant currency growth excluding inorganic growth. Inorganic growth represents growth attributable to the first twelve months of activity for recent business acquisitions.

Additional Adjusted EBITDA assumptions:

The impact of changing foreign currency exchange rates is expected to have approximately 1 point of headwind for Q2 2025 and approximately 1 point of headwind for FY 2025.
For a reconciliation of the above non-GAAP financial measures to the most directly comparable GAAP financial measures, refer to Schedule 7 of this Earnings Release.

Earnings Webcast Details

In conjunction with this release, TransUnion will host a conference call and webcast today at 8:30 a.m. Central Time to discuss the business results for the quarter and certain forward-looking information. This session and the accompanying presentation materials may be accessed at www.transunion.com/tru. A replay of the call will also be available at this website following the conclusion of the call.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.

http://www.transunion.com/business

Availability of Information on TransUnion’s Website

Investors and others should note that TransUnion routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the TransUnion Investor Relations website. While not all of the information that the Company posts to the TransUnion Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in TransUnion to review the information that it shares on www.transunion.com/tru.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of TransUnion’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those described in the forward-looking statements. Any statements made in this earnings release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements include information concerning possible or assumed future results of operations, including our guidance and descriptions of our business plans and strategies. These statements often include words such as “anticipate,” “expect,” “guidance,” “suggest,” “plan,” “believe,” “intend,” “estimate,” “target,” “project,” “should,” “could,” “would,” “may,” “will,” “forecast,” “outlook,” “potential,” “continues,” “seeks,” “predicts,” or the negatives of these words and other similar expressions.

Factors that could cause actual results to differ materially from those described in the forward-looking statements, or that could materially affect our financial results or such forward-looking statements include:

macroeconomic effects and changes in market conditions, including the impact of tariffs, inflation, risk of recession, and industry trends and adverse developments in the debt, consumer credit and financial services markets, including the impact on the carrying value of our assets in all of the markets where we operate;
our ability to provide competitive services and prices;
our ability to retain or renew existing agreements with large or long-term customers;
our ability to maintain the security and integrity of our data;
our ability to deliver services timely without interruption;
our ability to maintain our access to data sources;
government regulation and changes in the regulatory environment;
litigation or regulatory proceedings;
our approach to the use of artificial intelligence;
our ability to effectively manage our costs;
our efforts to execute our transformation plan and achieve the anticipated benefits and savings;
our ability to maintain effective internal control over financial reporting or disclosure controls and procedures;
economic and political stability in the United States and risks associated with the international markets where we operate;
our ability to effectively develop and maintain strategic alliances and joint ventures;
our ability to timely develop new services and the market’s willingness to adopt our new services;
our ability to manage and expand our operations and keep up with rapidly changing technologies;
our ability to acquire businesses, successfully secure financing for our acquisitions, timely consummate our acquisitions, successfully integrate the operations of our acquisitions, control the costs of integrating our acquisitions and realize the intended benefits of such acquisitions;
our ability to protect and enforce our intellectual property, trade secrets and other forms of unpatented intellectual property;
our ability to defend our intellectual property from infringement claims by third parties;
the ability of our outside service providers and key vendors to fulfill their obligations to us;
further consolidation in our end-customer markets;
the increased availability of free or inexpensive consumer information;
losses against which we do not insure;
our ability to make timely payments of principal and interest on our indebtedness;
our ability to satisfy covenants in the agreements governing our indebtedness;
our ability to maintain our liquidity;
stock price volatility;
our dividend payments;
share repurchase plans;
dividend rate;
our reliance on key management personnel; and
changes in tax laws or adverse outcomes resulting from examination of our tax returns.

There may be other factors, many of which are beyond our control, that may cause our actual results to differ materially from the forward-looking statements, including factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024, and any subsequent Quarterly Report on Form 10-Q or Current Report on Form 8-K filed with the Securities and Exchange Commission. You should evaluate all forward-looking statements made in this report in the context of these risks and uncertainties.

The forward-looking statements contained in this earnings release speak only as of the date of this earnings release. We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to reflect the impact of events or circumstances that may arise after the date of this earnings release.


TRANSUNION AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (in millions, except per share data)

	March 31, 2025			December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	609.9		$	679.5
Trade accounts receivable, net of allowance of $24.4 and $19.9		882.3			798.9
Other current assets		326.2			323.4
Total current assets		1,818.4			1,801.8
Property, plant and equipment, net of accumulated depreciation and amortization of $527.6 and $506.3		199.8			203.5
Goodwill		5,162.7			5,144.3
Other intangibles, net of accumulated amortization of $2,421.7 and $2,294.5		3,205.6			3,257.5
Other assets		562.6			577.7
Total assets	$	10,949.1		$	10,984.8
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable	$	325.6		$	294.6
Current portion of long-term debt		70.6			70.6
Other current liabilities		492.3			694.4
Total current liabilities		888.5			1,059.6
Long-term debt		5,060.2			5,076.6
Deferred taxes		386.4			415.3
Other liabilities		121.5			114.5
Total liabilities		6,456.6			6,666.0
Stockholders’ equity:
Preferred stock, $0.01 par value; 100.0 million shares authorized; none issued or outstanding as of March 31, 2025 and December 31, 2024, respectively		—			—
Common stock, $0.01 par value; 1.0 billion shares authorized at March 31, 2025 and December 31, 2024, 201.7 million and 201.5 million shares issued at March 31, 2025 and December 31, 2024, respectively, and 195.1 million and 194.9 million shares outstanding as of March 31, 2025 and December 31, 2024, respectively		2.0			2.0
Additional paid-in capital		2,595.1			2,558.9
Treasury stock at cost; 6.7 million and 6.6 million shares at March 31, 2025 and December 31, 2024, respectively		(340.1	)		(334.6	)
Retained earnings		2,484.5			2,357.9
Accumulated other comprehensive loss		(355.7	)		(367.2	)
Total TransUnion stockholders’ equity		4,385.8			4,217.0
Noncontrolling interests		106.7			101.8
Total stockholders’ equity		4,492.5			4,318.8
Total liabilities and stockholders’ equity	$	10,949.1		$	10,984.8


TRANSUNION AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) (in millions, except per share data)

	Three Months Ended March 31,
		2025			2024
Revenue	$	1,095.7		$	1,021.2
Operating expenses
Cost of services (exclusive of depreciation and amortization below)		445.6			406.3
Selling, general and administrative		256.8			305.6
Depreciation and amortization		138.9			134.0
Restructuring		—			18.2
Total operating expenses		841.4			864.1
Operating income		254.4			157.2
Non-operating income and (expense)
Interest expense		(56.1	)		(68.7	)
Interest income		8.6			5.4
Earnings from equity method investments		4.3			4.7
Other income and (expense), net		(17.4	)		(15.7	)
Total non-operating income and (expense)		(60.6	)		(74.1	)
Income before income taxes		193.8			83.0
Provision for income taxes		(41.0	)		(13.0	)
Net income		152.7			70.0
Less: net income attributable to noncontrolling interests		(4.7	)		(4.9	)
Net income attributable to TransUnion	$	148.1		$	65.1

Basic earnings per common share from:
Net income attributable to TransUnion	$	0.76		$	0.34
Diluted earnings per common share from:
Net income attributable to TransUnion	$	0.75		$	0.33
Weighted-average shares outstanding:
Basic		195.1			194.1
Diluted		197.3			195.3

As a result of displaying amounts in millions, rounding differences may exist in the table above.


TRANSUNION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (in millions)

	Three Months Ended March 31,
		2025			2024
Cash flows from operating activities:
Net income	$	152.7		$	70.0
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		138.9			134.0
Loss on repayment of loans		—			0.7
Deferred taxes		(22.5	)		(27.1	)
Stock-based compensation		30.3			24.1
Other		15.2			(1.2	)
Changes in assets and liabilities:
Trade accounts receivable		(88.9	)		(60.7	)
Other current and long-term assets		3.8			43.7
Trade accounts payable		29.7			28.7
Other current and long-term liabilities		(206.7	)		(158.2	)
Cash provided by operating activities		52.5			54.0
Cash flows from investing activities:
Capital expenditures		(68.4	)		(62.4	)
Proceeds from sale/maturities of other investments		0.2			—
Investments in nonconsolidated affiliates and notes receivable		(20.0	)		(1.2	)
Other		1.6			1.2
Cash used in investing activities		(86.6	)		(62.4	)
Cash flows from financing activities:
Proceeds from term loans		—			264.1
Repayments of term loans		—			(257.1	)
Repayments of debt		(17.7	)		(14.6	)
Debt financing fees		—			(4.7	)
Dividends to shareholders		(22.6	)		(20.8	)
Proceeds from issuance of common stock		10.6			12.4
Employee taxes paid on restricted stock units recorded as treasury stock		(5.5	)		(10.6	)
Repurchase of common stock		(5.4	)		—
Cash used in financing activities		(40.6	)		(31.3	)
Effect of exchange rate changes on cash and cash equivalents		5.1			(2.9	)
Net change in cash and cash equivalents		(69.6	)		(42.6	)
Cash and cash equivalents, beginning of period		679.5			476.2
Cash and cash equivalents, end of period	$	609.9		$	433.6

As a result of displaying amounts in millions, rounding differences may exist in the table above.

TRANSUNION AND SUBSIDIARIES
Non-GAAP Financial Measures

We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes, Adjusted Effective Tax Rate and Leverage Ratio for all periods presented. These are important financial measures for the Company but are not financial measures as defined by GAAP. These financial measures should be reviewed in conjunction with the relevant GAAP financial measures and are not presented as alternative measures of GAAP. Other companies in our industry may define or calculate these measures differently than we do, limiting their usefulness as comparative measures. Because of these limitations, these non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP, including operating income, operating margin, effective tax rate, net income attributable to the Company, diluted earnings per share or cash provided by operating activities. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures are presented in the tables below.

We present Consolidated Adjusted EBITDA, Consolidated Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate as supplemental measures of our operating performance because these measures eliminate the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance. These are measures frequently used by securities analysts, investors and other interested parties in their evaluation of the operating performance of companies similar to ours.

Our board of directors and executive management team use Adjusted EBITDA as an incentive compensation measure for most eligible employees and Adjusted Diluted Earnings per Share as an incentive compensation measure for certain of our senior executives.

Under the credit agreement governing our Senior Secured Credit Facility, our ability to engage in activities such as incurring additional indebtedness, making investments and paying dividends is tied to our Leverage Ratio which is partially based on Adjusted EBITDA. Investors also use our Leverage Ratio to assess our ability to service our debt and make other capital allocation decisions.

Consolidated Adjusted EBITDA

Management has excluded the following items from net income attributable to TransUnion in order to calculate Adjusted EBITDA for the periods presented:

Net interest expense is the sum of interest expense and interest income as reported on our Consolidated Statements of Operations.
Provision for income taxes, as reported on our Consolidated Statements of Operations.
Depreciation and amortization, as reported on our Consolidated Statements of Operations.
Stock-based compensation is used as an incentive to engage and retain our employees. It is predominantly a non-cash expense. We exclude stock-based compensation because it may not correlate to the underlying performance of our business operations during the period since it is measured at the grant date fair value and it is subject to variability as a result of performance conditions and timing of grants. These expenses are reported within cost of services and selling, general and administrative on our Consolidated Statements of Operations.
Operating model optimization program represents employee separation costs, facility lease exit costs and other business process optimization expenses incurred in connection with the transformation plan discussed further in “Results of Operations – Factors Affecting Our Results of Operations” in our Quarterly Report on Form 10-Q for the three months ended March 31, 2025. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business. Further, these costs will vary and may not be comparable during the transformation initiative as we progress toward an optimized operating model. These costs are reported primarily in restructuring and selling, general and administrative on our Consolidated Statements of Operations.
Accelerated technology investment includes Project Rise and the final phase of our technology investment announced in November 2023. Project Rise was announced in February 2020 and was originally expected to be completed in 2022. Following our acquisition of Neustar in December 2021, we recognized the opportunity to take advantage of Neustar’s capabilities to enhance and complement our cloud-based technology already under development as part of Project Rise. As a result, we extended Project Rise’s timeline to 2024 and increased the total estimated cost to approximately $240 million. In November 2023, we announced our plans to further leverage Neustar’s technology to standardize and streamline our product delivery platforms and to build a single global platform for fulfillment of our product lines. The additional investment is expected to be approximately $90 million during 2024 and 2025 and represents the final phase of the technology investment in our global technology infrastructure and core customer applications. We expect that the accelerated technology investment will fundamentally transform our technology infrastructure by implementing a global cloud-based approach to streamline product development, increase the efficiency of ongoing operations and maintenance and enable a continuous improvement approach to avoid the need for another major technology overhaul in the foreseeable future. The unique effort to build a secure, reliable and performant hybrid cloud infrastructure requires us to dedicate separate resources in order to develop the new cloud-based infrastructure in parallel with our current on-premise environment by maintaining our existing technology team to ensure no disruptions to our customers. The costs associated with the accelerated technology investment are incremental and redundant costs that will not recur after the program has been completed and are not representative of our underlying operating performance. Therefore, we believe that excluding these costs from our non-GAAP measures provides a better reflection of our ongoing cost structure. These costs are primarily reported in cost of services and therefore do not include amounts that are capitalized as internally developed software.
Mergers and acquisitions, divestitures and business optimization expenses are non-recurring expenses associated with specific transactions (exploratory or executed) and consist of (i) transaction and integration costs, (ii) post-acquisition adjustments to contingent consideration or to assets and liabilities that occurred after the acquisition measurement period, (iii) fair value and impairment adjustments related to investments and call and put options, (iv) transition services agreement income, and (v) a loss on disposal of a business. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary depending upon the timing of such transactions. These expenses are reported in costs of services, selling, general and administrative and other income and (expenses), net, on our Consolidated Statements of Operations.
Net other adjustments principally relate to: (i) deferred loan fee expense from debt prepayments and refinancing, (ii) currency remeasurement on foreign operations, (iii) other debt financing expenses consisting primarily of revolving credit facility deferred financing fee amortization and commitment fees and expenses associated with ratings agencies and interest rate hedging, (iv) certain legal and regulatory expenses, net, and (v) other non-operating (income) expense. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business and create variability between periods based on the nature and timing of the expense or income. These costs are reported in selling, general and administrative and in non-operating income and expense, net as applicable based on their nature on our Consolidated Statements of Operations.

Consolidated Adjusted EBITDA Margin

Management defines Consolidated Adjusted EBITDA Margin as Consolidated Adjusted EBITDA divided by total revenue as reported.

Adjusted Net Income

Management has excluded the following items from net income attributable to TransUnion in order to calculate Adjusted Net Income for the periods presented:

Amortization of certain intangible assets presents non-cash amortization expenses related to assets that arose from our 2012 change in control transaction and business combinations occurring after our 2012 change in control. We exclude these expenses as we believe they are not directly correlated to the underlying performance of our business operations and vary dependent upon the timing of the transactions that give rise to these assets. Amortization of intangible assets is included in depreciation and amortization on our Consolidated Statements of Operations.
Stock-based compensation (see Consolidated Adjusted EBITDA above)
Operating model optimization program (see Consolidated Adjusted EBITDA above)
Accelerated technology investment (see Consolidated Adjusted EBITDA above)
Mergers and acquisitions, divestiture and business optimization (see Consolidated Adjusted EBITDA above)
Net other is consistent with the definition in Consolidated Adjusted EBITDA above except that other debt financing expenses and certain other miscellaneous income and expense that are included in the adjustment to calculate Adjusted EBITDA are excluded in the adjustment made to calculate Adjusted Net Income.
Total adjustments for income taxes relates to the cumulative adjustments discussed below for Adjusted Provision for Income Taxes. This adjustment is made for the reasons indicated in Adjusted Provision for Income Taxes below. Adjustments related to the provision for income taxes are included in the line item by this name on our consolidated statement of operations.

Adjusted Diluted Earnings Per Share

Management defines Adjusted Diluted Earnings per Share as Adjusted Net Income divided by the weighted-average diluted shares outstanding.

Adjusted Provision for Income Taxes

Management has excluded the following items from our provision for income taxes for the periods presented:

Tax effect of above adjustments represents the income tax effect of the adjustments related to Adjusted Net Income described above. The tax rate applied to each adjustment is based on the nature of each line item. We include the tax effect of the adjustments made to Adjusted Net Income to provide a comprehensive view of our adjusted net income.
Excess tax expense (benefit) for stock-based compensation is the permanent difference between expenses recognized for book purposes and expenses recognized for tax purposes, in each case related to stock-based compensation expense. We exclude this amount from the Adjusted Provision for Income Taxes in order to be consistent with the exclusion of stock-based compensation from the calculation of Adjusted Net Income.
Other principally relates to (i) deferred tax adjustments, including rate changes, (ii) infrequent or unusual valuation allowance adjustments, (iii) return to provision, tax authority audit adjustments, and reserves related to prior periods, and (iv) other non-recurring items. We exclude these items because they create variability that impacts comparability between periods.

Adjusted Effective Tax Rate

Management defines Adjusted Effective Tax Rate as Adjusted Provision for Income Taxes divided by Adjusted income before income taxes. We calculate adjusted income before income taxes by excluding the pre-tax adjustments in the calculation of Adjusted Net Income discussed above and noncontrolling interest related to these pre-tax adjustments from income before income taxes.

Leverage Ratio

Management defines Leverage Ratio as net debt divided by Consolidated Adjusted EBITDA for the most recent twelve-month period including twelve months of Adjusted EBITDA from significant acquisitions. Net debt is defined as total debt less cash and cash equivalents as reported on the balance sheet as of the end of the period.

This earnings release presents constant currency growth rates assuming foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates. This earnings release also presents organic constant currency growth rates, which assumes consistent foreign currency exchange rates between years and also eliminates the impact of our recent acquisitions. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates and the impacts of recent acquisitions.

Free cash flow is defined as cash provided by operating activities less capital expenditures and is a measure we may refer to.

Refer to Schedules 1 through 7 for a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measure.


SCHEDULE 1 TRANSUNION AND SUBSIDIARIES Revenue and Adjusted EBITDA growth rates as Reported, CC, and Organic CC (Unaudited)

	For the Three Months Ended March 31, 2025 compared with the Three Months Ended March 31, 2024
	Reported		CC Growth¹		Organic CC Growth²
Revenue:
Consolidated	7.3	%	8.1	%	8.1	%
U.S. Markets	8.6	%	8.6	%	8.6	%
Financial Services	14.7	%	14.7	%	14.7	%
Emerging Verticals	5.8	%	5.8	%	5.8	%
Consumer Interactive	(0.8	)%	(0.8	)%	(0.8	)%
International	2.5	%	6.0	%	6.0	%
Canada	0.4	%	6.9	%	6.9	%
Latin America	(0.5	)%	6.9	%	6.9	%
United Kingdom	8.6	%	9.5	%	9.5	%
Africa	11.9	%	9.5	%	9.5	%
India	(3.3	)%	0.9	%	0.9	%
Asia Pacific	7.0	%	8.0	%	8.0	%

Adjusted EBITDA:
Consolidated	10.9	%	12.3	%	12.3	%
U.S. Markets	12.3	%	12.3	%	12.3	%
International	2.8	%	7.3	%	7.3	%

Constant Currency (“CC”) growth rates assume foreign currency exchange rates are consistent between years. This allows financial results to be evaluated without the impact of fluctuations in foreign currency exchange rates.
We have no inorganic revenue or Adjusted EBITDA for the periods presented. Organic CC growth rate is the CC growth rate less the inorganic growth rate.


SCHEDULE 2 TRANSUNION AND SUBSIDIARIES Consolidated and Segment Revenue, Adjusted EBITDA, and Adjusted EBITDA Margin (Unaudited) (dollars in millions)

	Three Months Ended March 31,
		2025			2024
Revenue:
U.S. Markets gross revenue
Financial Services	$	403.6		$	351.7
Emerging Verticals		314.9			297.5
Consumer Interactive		138.2			139.3
U.S. Markets gross revenue	$	856.6		$	788.6

International gross revenue
Canada	$	37.8		$	37.7
Latin America		32.8			32.9
United Kingdom		58.8			54.2
Africa		16.9			15.1
India		68.8			71.1
Asia Pacific		27.0			25.3
International gross revenue	$	242.2		$	236.3

Total gross revenue	$	1,098.8		$	1,024.9

Intersegment revenue eliminations
U.S. Markets	$	(1.6	)	$	(2.3	)
International		(1.5	)		(1.5	)
Total intersegment revenue eliminations	$	(3.1	)	$	(3.7	)

Total revenue as reported	$	1,095.7		$	1,021.2

Adjusted EBITDA:
U.S. Markets	$	320.1		$	285.2
International		109.8			106.8
Corporate		(32.8	)		(33.9	)
Adjusted EBITDA Margin:¹
U.S. Markets		37.4	%		36.2	%
International		45.3	%		45.2	%

Segment Adjusted EBITDA Margins are calculated using segment gross revenue and segment Adjusted EBITDA. Consolidated Adjusted EBITDA Margin is calculated using total revenue as reported and consolidated Adjusted EBITDA.

	Three Months Ended March 31,
		2025			2024
Reconciliation of Net income attributable to TransUnion to consolidated Adjusted EBITDA:
Net income attributable to TransUnion	$	148.1		$	65.1
Net interest expense		47.5			63.2
Provision for income taxes		41.0			13.0
Depreciation and amortization		138.9			134.0
EBITDA	$	375.5		$	275.4
Adjustments to EBITDA:
Stock-based compensation		30.3			24.1
Mergers and acquisitions, divestitures and business optimization¹		17.9			9.2
Accelerated technology investment²		20.0			18.5
Operating model optimization program³		9.8			24.4
Net other⁴		(56.4	)		6.5
Total adjustments to EBITDA	$	21.7		$	82.8
Consolidated Adjusted EBITDA	$	397.1		$	358.2

Net income attributable to TransUnion margin		13.5	%		6.4	%
Consolidated Adjusted EBITDA margin⁵		36.2	%		35.1	%

As a result of displaying amounts in millions, rounding differences may exist in the tables above and footnotes below.

1.

Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Three Months Ended March 31,
		2025		2024
Transaction and integration costs	$	5.3	$	2.2
Fair value and impairment adjustments		12.6		0.1
Post-acquisition adjustments		—		6.9
Total mergers and acquisitions, divestitures and business optimization	$	17.9	$	9.2

2.

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities, which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Three Months Ended March 31,
		2025		2024
Foundational Capabilities	$	7.4	$	6.8
Migration Management		12.6		10.1
Program Enablement		—		1.7
Total accelerated technology investment	$	20.0	$	18.5

3.

Operating model optimization consisted of the following adjustments:

	Three Months Ended March 31,
		2025		2024
Employee separation	$	—	$	16.8
Facility exit		—		1.4
Business process optimization		9.8		6.2
Total operating model optimization	$	9.8	$	24.4

4.

Net other consisted of the following adjustments:

	Three Months Ended March 31,
		2025			2024
Deferred loan fee expense from debt prepayments and refinancing	$	(0.1	)	$	3.1
Other debt financing expenses		0.5			0.6
Currency remeasurement on foreign operations		(0.6	)		2.6
Legal and regulatory expenses, net		(56.0	)		—
Other non-operating (income) expense		(0.3	)		0.2
Total other adjustments	$	(56.4	)	$	6.5

5.

Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.


SCHEDULE 3 TRANSUNION AND SUBSIDIARIES Adjusted Net Income and Adjusted Diluted Earnings Per Share (Unaudited) (in millions, except per share data)

	Three Months Ended March 31,
		2025			2024
Income attributable to TransUnion	$	148.1		$	65.1

Weighted-average shares outstanding:
Basic		195.1			194.1
Diluted		197.3			195.3

Basic earnings per common share from:
Net income attributable to TransUnion	$	0.76		$	0.34
Diluted earnings per common share from:
Net income attributable to TransUnion	$	0.75		$	0.33

Reconciliation of Net income attributable to TransUnion to Adjusted Net Income:
Net income attributable to TransUnion	$	148.1		$	65.1
Adjustments before income tax items:
Amortization of certain intangible assets¹		70.9			72.0
Stock-based compensation		30.3			24.1
Mergers and acquisitions, divestitures and business optimization²		17.9			9.2
Accelerated technology investment³		20.0			18.5
Operating model optimization program⁴		9.8			24.4
Net other⁵		(56.7	)		5.9
Total adjustments before income tax items	$	92.3		$	154.3
Total adjustments for income taxes⁶		(32.7	)		(40.4	)
Adjusted Net Income	$	207.6		$	179.0

Weighted-average shares outstanding:
Basic		195.1			194.1
Diluted		197.3			195.3

Adjusted Earnings per Share:
Basic	$	1.06		$	0.92
Diluted	$	1.05		$	0.92

	Three Months Ended March 31,
		2025			2024
Reconciliation of Diluted earnings per share from Net income attributable to TransUnion to Adjusted Diluted Earnings per Share:
Diluted earnings per common share from:
Net income attributable to TransUnion	$	0.75		$	0.33
Adjustments before income tax items:
Amortization of certain intangible assets¹		0.36			0.37
Stock-based compensation		0.15			0.12
Mergers and acquisitions, divestitures and business optimization²		0.09			0.05
Accelerated technology investment³		0.10			0.09
Operating model optimization program⁴		0.05			0.13
Net other⁵		(0.29	)		0.03
Total adjustments before income tax items	$	0.47		$	0.79
Total adjustments for income taxes⁶		(0.17	)		(0.21	)
Adjusted Diluted Earnings per Share	$	1.05		$	0.92

Each component of earnings per share is calculated independently, therefore, rounding differences exist in the table above.

1.		Consists of amortization of intangible assets from our 2012 change-in-control transaction and amortization of intangible assets established in business acquisitions after our 2012 change-in-control transaction.
2.		Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Three Months Ended March 31,
		2025		2024
Transaction and integration costs	$	5.3	$	2.2
Fair value and impairment adjustments		12.6		0.1
Post-acquisition adjustments		—		6.9
Total mergers and acquisitions, divestitures and business optimization	$	17.9	$	9.2

3.

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform, including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Three Months Ended March 31,
		2025		2024
Foundational Capabilities	$	7.4	$	6.8
Migration Management		12.6		10.1
Program Enablement		—		1.7
Total accelerated technology investment	$	20.0	$	18.5

4.

Operating model optimization consisted of the following adjustments:

	Three Months Ended March 31,
		2025		2024
Employee separation	$	—	$	16.8
Facility exit		—		1.4
Business process optimization		9.8		6.2
Total operating model optimization	$	9.8	$	24.4

5.

Net other consisted of the following adjustments:

	Three Months Ended March 31,
		2025			2024
Deferred loan fee expense from debt prepayments and refinancing	$	(0.1	)	$	3.1
Currency remeasurement on foreign operations		(0.6	)		2.6
Legal and regulatory expenses, net		(56.0	)		—
Other non-operating (income) and expense		—			0.2
Total other adjustments	$	(56.7	)	$	5.9

6.

Total adjustments for income taxes represents the total of adjustments discussed to calculate the Adjusted Provision for Income Taxes.


SCHEDULE 4 TRANSUNION AND SUBSIDIARIES Adjusted Provision for Income Taxes and Adjusted Effective Tax Rate (Unaudited) (dollars in millions)

	Three Months Ended March 31,
		2025			2024
Income before income taxes	$	193.8		$	83.0
Total adjustments before income tax items from Schedule 3		92.3			154.3
Adjusted income before income taxes	$	286.1		$	237.3

Reconciliation of Provision for income taxes to Adjusted Provision for Income Taxes:
Provision for income taxes		(41.0	)		(13.0	)
Adjustments for income taxes:
Tax effect of above adjustments		(32.3	)		(35.0	)
Eliminate impact of excess tax expense for stock-based compensation		0.5			1.0
Other¹		(0.9	)		(6.4	)
Total adjustments for income taxes	$	(32.7	)	$	(40.4	)
Adjusted Provision for Income Taxes	$	(73.7	)	$	(53.4	)

Effective tax rate		21.2	%		15.7	%
Adjusted Effective Tax Rate		25.8	%		22.5	%

As a result of displaying amounts in millions, rounding differences may exist in the table above.

1.

Other adjustments for income taxes include:

	Three Months Ended March 31,
		2025			2024
Deferred tax adjustments	$	(4.6	)	$	(5.1	)
Valuation allowance adjustments		2.3			0.2
Return to provision, audit adjustments and reserves related to prior periods		1.0			(0.9	)
Other adjustments		0.4			(0.5	)
Total other adjustments	$	(0.9	)	$	(6.4	)


SCHEDULE 5 TRANSUNION AND SUBSIDIARIES Leverage Ratio (Unaudited) (dollars in millions)

	Trailing Twelve Months Ended March 31, 2025
Reconciliation of Net income attributable to TransUnion to Consolidated Adjusted EBITDA:
Net income attributable to TransUnion	$	367.3
Net interest expense		221.0
Provision for income taxes		126.9
Depreciation and amortization		542.6
EBITDA	$	1,257.7
Adjustments to EBITDA:
Stock-based compensation	$	127.5
Mergers and acquisitions, divestitures and business optimization¹		35.2
Accelerated technology investment²		85.7
Operating model optimization program³		80.3
Net other⁴		(41.1	)
Total adjustments to EBITDA	$	287.6
Leverage Ratio Adjusted EBITDA	$	1,545.3

Total debt	$	5,130.8
Less: Cash and cash equivalents		609.9
Net Debt	$	4,521.0

Ratio of Net Debt to Net income attributable to TransUnion		12.3
Leverage Ratio		2.9

As a result of displaying amounts in millions, rounding differences may exist in the table above.

1.

Mergers and acquisitions, divestitures and business optimization consisted of the following adjustments:

	Trailing Twelve Months Ended March 31, 2025
Transaction and integration costs	$	14.2
Fair value and impairment adjustments		20.8
Post-acquisition adjustments		0.1
Total mergers and acquisitions, divestitures and business optimization	$	35.2

2.

Represents expenses associated with our accelerated technology investment to migrate to the cloud. There are three components of the accelerated technology investment: (i) building foundational capabilities which includes establishing a modern, API-based and services-oriented software architecture, (ii) the migration of each application and customer data to the new enterprise platform including the redundant software costs during the migration period, as well as the efforts to decommission the legacy system, and (iii) program enablement, which includes dedicated resources to support the planning and execution of the program. The amounts for each category of cost are as follows:

	Trailing Twelve Months Ended March 31, 2025
Foundational Capabilities	$	36.3
Migration Management		45.6
Program Enablement		3.8
Total accelerated technology investment	$	85.7

3.

Operating model optimization consisted of the following adjustments:

	Trailing Twelve Months Ended March 31, 2025
Employee separation	$	7.9
Facility exit		40.7
Business process optimization		31.7
Total operating model optimization	$	80.3

4.

Net other consisted of the following adjustments:

	Trailing Twelve Months Ended March 31, 2025
Deferred loan fee expense from debt prepayments and refinancings	$	14.6
Other debt financing expenses		2.3
Currency remeasurement on foreign operations		(1.1	)
Legal and regulatory expenses, net		(56.0	)
Other non-operating (income) and expense		(1.0	)
Total other adjustments	$	(41.1	)


SCHEDULE 6 TRANSUNION AND SUBSIDIARIES Segment Depreciation and Amortization (Unaudited) (in millions)

	Three Months Ended March 31,
		2025		2024

U.S. Markets	$	101.2	$	100.8
International		36.6		32.2
Corporate		1.1		1.0
Total depreciation and amortization	$	138.9	$	134.0

As a result of displaying amounts in millions, rounding differences may exist in the table above.


SCHEDULE 7 TRANSUNION AND SUBSIDIARIES Reconciliation of Non-GAAP Guidance (Unaudited) (in millions, except per share data)

	Three Months Ended June 30, 2025						Twelve Months Ended December 31, 2025
	Low			High			Low			High
Guidance reconciliation of Net income attributable to TransUnion to Adjusted EBITDA:
Net income attributable to TransUnion	$	69		$	77		$	383		$	411
Interest, taxes and depreciation and amortization		220			224			917			929
EBITDA	$	290		$	302		$	1,299		$	1,340
Stock-based compensation, mergers, acquisitions divestitures and business optimization-related expenses and other adjustments¹		85			85			250			250
Adjusted EBITDA	$	375		$	386		$	1,549		$	1,590

Net income attributable to TransUnion margin		6.5	%		7.1	%		8.8	%		9.3	%
Consolidated Adjusted EBITDA margin²		34.8	%		35.3	%		35.6	%		36.0	%

Guidance reconciliation of Diluted earnings per share to Adjusted Diluted Earnings per Share:
Diluted earnings per share	$	0.35		$	0.39		$	1.92		$	2.06
Adjustments to diluted earnings per share¹		0.60			0.60			2.00			2.01
Adjusted Diluted Earnings per Share	$	0.95		$	0.99		$	3.93		$	4.08

As a result of displaying amounts in millions, rounding differences may exist in the table above.

These adjustments include the same adjustments we make to our Adjusted EBITDA and Adjusted Net Income as discussed in the Non-GAAP Financial Measures section of our Earnings Release.
Consolidated Adjusted EBITDA margin is calculated by dividing Consolidated Adjusted EBITDA by total revenue.

The MIL Network –

April 24, 2025

MIL-OSI: Amalgamated Financial Corp. Reports First Quarter 2025 Financial Results; $446 Million Total Deposit Growth; Strong Margin at 3.55%

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) — Amalgamated Financial Corp. (the “Company” or “Amalgamated”) (Nasdaq: AMAL), the holding company for Amalgamated Bank (the “Bank”), today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights (on a linked quarter basis)

Net income of $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share.
Core net income¹ of $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share.

Deposits and Liquidity

On-balance sheet deposits increased $231.5 million, or 3.2%, to $7.4 billion.
Off-balance sheet deposits were $214.5 million at the end of the quarter, comprised of mainly not-for-profit deposits and some political deposits.
Including deposits held off-balance sheet, total deposits increased $445.9 million, or 6.2%, to $7.6 billion.
Political deposits increased $102.7 million, or 11%, to $1.1 billion, which includes both on and off-balance sheet deposits.
Average cost of deposits, excluding Brokered CDs and off-balance sheet deposits, increased 7 basis points to 159 basis points, where non-interest-bearing deposits comprised 39% of total deposits.
Cash and borrowing capacity totaled $3.3 billion (immediately available) plus unpledged securities (two-day availability) of $301.0 million for total liquidity within two-days of $3.6 billion.
Total two-day liquidity is 94% of total uninsured deposits, and 164% of uninsured non-super core deposits¹.

Assets and Margin

Net interest margin decreased 4 basis points to 3.55%, as expected.
Net interest income decreased by $2.5 million, or 3.4%, to $70.6 million, as expected.
Net loans receivable increased $7.0 million, or 0.2%, to $4.6 billion.
Net loans in growth mode (commercial and industrial, commercial real estate, and multifamily) increased $25.8 million or 0.9%.
Total PACE assessments grew $3.2 million, or 0.3%, to $1.2 billion.
The multifamily and commercial real estate loan portfolios totaled $1.8 billion and had a concentration of 199% to total risk based capital.

Capital and Returns

Tier 1 leverage ratio of 9.22%, increased by 22 basis points, and Common Equity Tier 1 ratio of 14.27%.
Tangible common equity¹ ratio increased to 8.73%, representing a tenth consecutive quarter of improvement.
Tangible book value per share¹ increased $0.91, or 4.0%, to $23.51, and has increased $6.18, or 35.7% since September 2021.
Core return on average tangible common equity¹ of 15.54% and core return on average assets¹ of 1.33%.

Share Repurchase

Repurchased approximately 105,000 shares, or $3.5 million of common stock, through March 31, 2025.
On March 10, 2025, a new $40 million share repurchase program was approved, under which approximately 75,000 shares have been repurchased from April 1 through April 22, 2025.

Priscilla Sims Brown, President and Chief Executive Officer, commented, “All of our key earnings metrics came in strong and as expected, showing again that at Amalgamated, we do what we say we will. Our balance sheet boasts a low-risk asset profile including low commercial real-estate lending concentration, high levels of immediate and two-day liquidity, and return metrics near the top of our peer stack.”

First Quarter Earnings

Net income was $25.0 million, or $0.81 per diluted share, compared to $24.5 million, or $0.79 per diluted share, for the prior quarter. The $0.5 million increase during the quarter was primarily driven by a $3.1 million decrease in provision for credit losses, as well as a $0.8 million net valuation gain on residential loans sold during the quarter, compared to a $4.1 million reduction in fair value on residential loans moved to held for sale in the previous quarter. This was offset by an expected $2.5 million decrease in net interest income, an expected $1.9 million decrease in non-core income from solar tax equity investments, an expected $1.3 million decrease in non-core ICS One-Way Sell fee income from off-balance sheet deposits, and a $1.1 million increase in income tax expense.

Core net income¹ was $27.1 million, or $0.88 per diluted share, compared to $28.0 million, or $0.90 per diluted share, for the prior quarter. Excluded from core net income for the quarter, pre-tax, was $2.9 million of accelerated depreciation from solar tax equity investments, a $0.8 million net valuation gain from residential loans sold during the quarter, and $0.7 million of losses on the sale of securities. Excluded from core net income for the fourth quarter of 2024, pre-tax, was a $4.1 million reduction in fair value on a pool of lower yielding performing residential loans moved to held for sale, $1.3 million of ICS One-Way Sell fee income, $1.0 million of losses on the sale of securities, and $0.9 million of accelerated depreciation from solar tax equity investments.

Net interest income was $70.6 million, compared to $73.1 million for the prior quarter. This decrease was expected as interest bearing off-balance sheet deposits moved back on balance sheet towards the end of the fourth quarter to replace largely non-interest bearing deposit outflow related to the election cycle conclusion and the full effect of interest rate resets from the prior quarter were recognized. Loan interest income and loan yields remained flat mainly as a $75.5 million increase in average loan balances was offset by paydowns on shorter-term high yielding commercial & industrial loans and a shorter day count in the quarter. Interest income on securities decreased $1.8 million driven by a decrease in the average balance of securities of $92.8 million. Interest expense on total interest-bearing deposits increased $0.3 million driven by an increase in the average balance of total interest-bearing deposits of $272.3 million partially offset by a 9 basis point decrease in cost. Additionally, while the average balance of borrowings increased $35.6 million, all short-term borrowings utilized at year-end were paid off over the course of the quarter. Remaining borrowings now substantially consist of lower-cost subordinated debt priced at 3.25% with a fixed rate maturity in November 2026.

Net interest margin was 3.55%, an expected decrease of 4 basis points from 3.59% in the prior quarter. The decrease is largely due to a higher average balance of interest-bearing deposits as noted above, a $338.2 million decrease in non-interest bearing deposits, as well as a higher cost of funds. Prepayment penalties had no impact on net interest margin in the current quarter, compared to a one basis point impact in the prior quarter.

Provision for credit losses totaled an expense of $0.6 million, compared to an expense of $3.7 million in the prior quarter. The expense in the first quarter was primarily driven by charge-offs on the consumer solar and small business portfolios, as well as increases in reserves for one leveraged commercial and industrial loan, offset by improvements in macro-economic forecasts used in the CECL model, primarily related to the consumer solar loan portfolio, which can be volatile.

Non-interest income was $6.4 million, compared to $4.8 million in the prior quarter. Excluding all non-core income adjustments noted above, core non-interest income¹ was $9.1 million, compared to $9.5 million in the prior quarter. The decrease was primarily related to lower commercial banking fees, offset by modestly higher income from Trust fees.

Non-interest expense was $41.7 million, an increase of $0.5 million from the prior quarter. Core non-interest expense¹ was $41.5 million, an increase of $0.4 million from the prior quarter. This was mainly driven by a $2.1 million increase in professional fees related to expected increases in digital transformation deployment and partnership costs to evaluate growth requirements and other advisory services. This increase is mainly offset by a $1.4 million decrease in compensation and employee benefits expense.

Provision for income tax expense was $9.7 million, compared to $8.6 million for the prior quarter. The effective tax rate was 28.0%, compared to 25.9% in the prior quarter. The increase in the tax rate was the result of a higher annual effective tax rate for 2025, in addition to discrete tax items related to a city and state tax examination which led to a net increase in tax provision in the current quarter, as well as additional discrete items in the prior quarter which resulted in a tax benefit. Excluding these discrete items, the tax rate would have been 27.0%, compared to 26.6% in the prior quarter.

Balance Sheet Quarterly Summary

Total assets were $8.3 billion at March 31, 2025, compared to $8.3 billion at December 31, 2024, keeping the balance sheet neutral. Notable changes within individual balance sheet line items include a $65.1 million increase in securities and a $17.9 million increase in resell agreements to solidify net interest income, as well as a $7.0 million increase in net loans receivable. On the liabilities side, on-balance sheet deposits increased by $231.5 million while borrowings decreased by $244.7 million. Off-balance sheet deposits increased to $214.5 million in the quarter.

Total net loans receivable at March 31, 2025 were $4.6 billion, an increase of $7.0 million, or 0.2% for the quarter. The increase in loans is primarily driven by a $20.3 million increase in multifamily loans, and a $7.8 million increase in commercial and industrial loans, offset by a $2.4 million decrease in commercial real estate loans, a $8.9 million decrease in consumer solar loans, and a $9.8 million decrease in residential loans. During the quarter, criticized or classified loans decreased $12.0 million, largely related to payoffs of three delinquent commercial and industrial loans totaling $10.1 million, the upgrade of one $1.4 million commercial & industrial loan, charge-offs of small business loans totaling $0.8 million, and a decrease of $4.5 million in residential and consumer substandard loans. This was offset by the downgrade of one $4.2 million commercial & industrial loan to special mention, and additional downgrades of small business loans totaling $1.0 million.

Total on-balance sheet deposits at March 31, 2025 were $7.4 billion, an increase of $231.5 million, or 3.2%, during the quarter. Including accounts currently held off-balance sheet, deposits held by politically active customers, such as campaigns, PACs, advocacy-based organizations, and state and national party committees were $1.1 billion as of March 31, 2025, an increase of $102.7 million during the quarter. Non-interest-bearing deposits represented 39% of average total deposits and 39% of ending total deposits for the quarter, contributing to an average cost of total deposits of 159 basis points. Super-core deposits¹ totaled approximately $4.0 billion, had a weighted average life of 18 years, and comprised 54% of total deposits, excluding Brokered CDs. Total uninsured deposits were $3.9 billion, comprising 52% of total deposits.

Nonperforming assets totaled $33.9 million, or 0.41% of period-end total assets at March 31, 2025, an increase of $8.0 million, compared with $25.9 million, or 0.31% on a linked quarter basis. The increase in nonperforming assets was primarily driven by an $11.8 million increase in commercial & industrial non-accrual loans, including one $8.3 million commercial & industrial loan that was placed on non-accrual in the quarter. This was offset by the sale of $3.9 million in nonperforming residential loans that were reported as held-for-sale in the prior quarter.

During the quarter, the allowance for credit losses on loans decreased $2.4 million to $57.7 million. The ratio of allowance to total loans was 1.23%, a decrease of 6 basis points from 1.29% in the fourth quarter of 2024. The decrease was primarily the result of improvements in the macroeconomic forecasts used in the CECL model, mainly related to the consumer solar loan portfolio, which can be volatile, offset by charge-offs on consumer solar and small business portfolios, as well as increases in reserves for one legacy leveraged commercial and industrial loan.

Capital Quarterly Summary

As of March 31, 2025, the Common Equity Tier 1 Capital ratio was 14.27%, the Total Risk-Based Capital ratio was 16.61%, and the Tier 1 Leverage Capital ratio was 9.22%, compared to 13.90%, 16.26% and 9.00%, respectively, as of December 31, 2024. Stockholders’ equity at March 31, 2025 was $736.0 million, an increase of $28.3 million during the quarter. The increase in stockholders’ equity was primarily driven by $25.0 million of net income for the quarter and a $11.3 million improvement in accumulated other comprehensive loss due to the tax-effected mark-to-market on available for sale securities, offset by $4.3 million in dividends paid at $0.14 per outstanding share.

Tangible book value per share¹ was $23.51 as of March 31, 2025 compared to $22.60 as of December 31, 2024. Tangible common equity¹ improved to 8.73% of tangible assets, compared to 8.41% as of December 31, 2024.

Conference Call

As previously announced, Amalgamated Financial Corp. will host a conference call to discuss its first quarter 2025 results today, April 24, 2025 at 11:00am (Eastern Time). The conference call can be accessed by dialing 1-877-407-9716 (domestic) or 1-201-493-6779 (international) and asking for the Amalgamated Financial Corp. First Quarter 2025 Earnings Call. A telephonic replay will be available approximately two hours after the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671 and providing the access code 13752421. The telephonic replay will be available until May 1, 2025.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/. The online replay will remain available for a limited time beginning immediately following the call.

The presentation materials for the call can be accessed on the investor relations section of the Company’s website at https://ir.amalgamatedbank.com/.

About Amalgamated Financial Corp.

Amalgamated Financial Corp. is a Delaware public benefit corporation and a bank holding company engaged in commercial banking and financial services through its wholly-owned subsidiary, Amalgamated Bank. Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country’s oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. As of March 31, 2025, total assets were $8.3 billion, total net loans were $4.6 billion, and total deposits were $7.4 billion. Additionally, as of March 31, 2025, the trust business held $35.7 billion in assets under custody and $14.2 billion in assets under management.

Non-GAAP Financial Measures

This release (and the accompanying financial information and tables) refer to certain non-GAAP financial measures including, without limitation, “Core operating revenue,” “Core non-interest expense,” “Core non-interest income,” “Core net income,” “Tangible common equity,” “Average tangible common equity,” “Core return on average assets,” “Core return on average tangible common equity,” and “Core efficiency ratio.”

Management utilizes this information to compare operating performance for March 31, 2025 versus certain periods in 2024 and to prepare internal projections. The Company believes these non-GAAP financial measures facilitate making period-to-period comparisons and are meaningful indications of operating performance. In addition, because intangible assets such as goodwill and other discrete items unrelated to core business, which are excluded, vary extensively from company to company, the Company believe that the presentation of this information allows investors to more easily compare results to those of other companies.

The presentation of non-GAAP financial information, however, is not intended to be considered in isolation or as a substitute for GAAP financial measures. The Company strongly encourage readers to review the GAAP financial measures included in this release and not to place undue reliance upon any single financial measure. In addition, because non-GAAP financial measures are not standardized, it may not be possible to compare the non-GAAP financial measures presented in this release with other companies’ non-GAAP financial measures having the same or similar names. Reconciliations of non-GAAP financial disclosures to comparable GAAP measures found in this release are set forth in the final pages of this release and also may be viewed on the Company’s website, amalgamatedbank.com.

Terminology

Certain terms used in this release are defined as follows:

“Core efficiency ratio” is defined as “Core non-interest expense” divided by “Core operating revenue.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is an efficiency ratio calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income.

“Core net income” is defined as net income after tax excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, costs related to branch closures, restructuring/severance costs, acquisition costs, tax credits and accelerated depreciation on solar equity investments, and taxes on notable pre-tax items. The Company believes the most directly comparable GAAP financial measure is net income.

“Core non-interest expense” is defined as total non-interest expense excluding costs related to branch closures, and restructuring/severance. The Company believes the most directly comparable GAAP financial measure is total non-interest expense.

“Core non-interest income” is defined as total non-interest income excluding gains and losses on sales of securities, ICS One-Way Sell fee income, changes in fair value on loans held-for-sale, gains on the sale of owned property, and tax credits and accelerated depreciation on solar equity investments. The Company believes the most directly comparable GAAP financial measure is non-interest income.

“Core operating revenue” is defined as total net interest income plus “core non-interest income”. The Company believes the most directly comparable GAAP financial measure is the total of net interest income and non-interest income.

“Core return on average assets” is defined as “Core net income” divided by average total assets. The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average assets calculated by dividing net income by average total assets.

“Core return on average tangible common equity” is defined as “Core net income” divided by average “tangible common equity.” The Company believes the most directly comparable performance ratio derived from GAAP financial measures is return on average equity calculated by dividing net income by average total stockholders’ equity.

“Super-core deposits” are defined as total deposits from commercial and consumer customers, with a relationship length of greater than 5 years. The Company believes the most directly comparable GAAP financial measure is total deposits.

“Tangible assets” are defined as total assets excluding, as applicable, goodwill and core deposit intangibles. The Company believes the most directly comparable GAAP financial measure is total assets.

“Tangible common equity”, and “Tangible book value” are defined as stockholders’ equity excluding, as applicable, minority interests, goodwill and core deposit intangibles. The Company believes that the most directly comparable GAAP financial measure is total stockholders’ equity.

“Traditional securities portfolio” is defined as total investment securities excluding PACE assessments. The Company believes the most directly comparable GAAP financial measure is total investment securities.

Forward-Looking Statements

Statements included in this release that are not historical in nature are intended to be, and are hereby identified as, forward-looking statements within the meaning of the Private Securities Litigation Reform Act, Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified through the use of forward-looking terminology such as “may,” “will,” “anticipate,” “aspire,” “should,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “in the future,” “may” and “intend,” as well as other similar words and expressions of the future. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, any or all of which could cause actual results to differ materially from the results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to:

uncertain conditions in the banking industry and in national, regional and local economies in core markets, which may have an adverse impact on business, operations and financial performance;
deterioration in the financial condition of borrowers resulting in significant increases in credit losses and provisions for those losses;
deposit outflows and subsequent declines in liquidity caused by factors that could include lack of confidence in the banking system, a deterioration in market conditions or the financial condition of depositors;
changes in deposits, including an increase in uninsured deposits;
ability to maintain sufficient liquidity to meet deposit and debt obligations as they come due, which may require that the Company sell investment securities at a loss, negatively impacting net income, earnings and capital;
unfavorable conditions in the capital markets, which may cause declines in stock price and the value of investments;
negative economic and political conditions that adversely affect the general economy, housing prices, the real estate market, the job market, consumer confidence, the financial condition of borrowers and consumer spending habits, which may affect, among other things, the level of non-performing assets, charge-offs and provision expense;
fluctuations or unanticipated changes in the interest rate environment including changes in net interest margin or changes in the yield curve that affect investments, loans or deposits;
the general decline in the real estate and lending markets, particularly in commercial real estate in the Company’s market areas, and the effects of the enactment of or changes to rent-control and other similar regulations on multi-family housing;
potential implementation by the current presidential administration of a regulatory reform agenda that is significantly different from that of the prior presidential administration, impacting the rule making, supervision, examination and enforcement of the banking regulation agencies;
changes in U.S. trade policies and other global political factors beyond the Company’s control, including the imposition of tariffs, which raise economic uncertainty, potentially leading to slower growth and a decrease in loan demand;
the outcome of legal or regulatory proceedings that may be instituted against us;
inability to achieve organic loan and deposit growth and the composition of that growth;
composition of the Company’s loan portfolio, including any concentration in industries or sectors that may experience unanticipated or anticipated adverse conditions greater than other industries or sectors in the national or local economies in which the Company operates;
inaccuracy of the assumptions and estimates the Company makes and policies that the Company implements in establishing the allowance for credit losses;
changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments;
any matter that would cause the Company to conclude that there was impairment of any asset, including intangible assets;
limitations on the ability to declare and pay dividends;
the impact of competition with other financial institutions, including pricing pressures and the resulting impact on results, including as a result of compression to net interest margin;
increased competition for experienced members of the workforce including executives in the banking industry;
a failure in or breach of operational or security systems or infrastructure, or those of third party vendors or other service providers, including as a result of unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches;
increased regulatory scrutiny and exposure from the use of “big data” techniques, machine learning, and artificial intelligence;
a downgrade in the Company’s credit rating;
“greenwashing claims” against the Company and environmental, social, and governance (“ESG”) products and increased scrutiny and political opposition to ESG and diversity, equity, and inclusion (“DEI”) practices;
any unanticipated or greater than anticipated adverse conditions (including the possibility of earthquakes, wildfires, and other natural disasters) affecting the markets in which the Company operates;
physical and transitional risks related to climate change as they impact the business and the businesses that the Company finances;
future repurchase of the Company’s shares through the Company’s common stock repurchase program; and
descriptions of assumptions underlying or relating to any of the foregoing.

Additional factors which could affect the forward-looking statements can be found in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K filed with the SEC and available on the SEC’s website at https://www.sec.gov/. The Company disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.

Investor Contact:
Jamie Lillis
Solebury Strategic Communications
shareholderrelations@amalgamatedbank.com
800-895-4172

Consolidated Statements of Income (unaudited)
	Three Months Ended
	March 31,			December 31,			March 31,
($ in thousands)		2025			2024			2024
INTEREST AND DIVIDEND INCOME
Loans	$	57,843		$	58,024		$	51,952
Securities		41,653			43,448			42,390
Interest-bearing deposits in banks		1,194			1,113			2,592
Total interest and dividend income		100,690			102,585			96,934
INTEREST EXPENSE
Deposits		28,917			28,582			25,891
Borrowed funds		1,196			908			3,006
Total interest expense		30,113			29,490			28,897
NET INTEREST INCOME		70,577			73,095			68,037
Provision for credit losses		596			3,686			1,588
Net interest income after provision for credit losses		69,981			69,409			66,449
NON-INTEREST INCOME
Trust Department fees		4,191			3,971			3,854
Service charges on deposit accounts		3,438			5,337			6,136
Bank-owned life insurance income		626			661			609
Losses on sale of securities		(680	)		(1,003	)		(2,774	)
Gain (loss) on sale of loans and changes in fair value on loans held-for-sale, net		832			(4,090	)		47
Equity method investments income (loss)		(2,508	)		(529	)		2,072
Other income		507			442			285
Total non-interest income		6,406			4,789			10,229
NON-INTEREST EXPENSE
Compensation and employee benefits		23,314			24,691			22,273
Occupancy and depreciation		3,293			3,376			2,904
Professional fees		4,739			2,674			2,376
Technology		5,619			5,299			4,629
Office maintenance and depreciation		629			578			663
Amortization of intangible assets		144			183			183
Advertising and promotion		51			314			1,219
Federal deposit insurance premiums		900			715			1,050
Other expense		2,961			3,313			2,855
Total non-interest expense		41,650			41,143			38,152
Income before income taxes		34,737			33,055			38,526
Income tax expense		9,709			8,564			11,277
Net income	$	25,028		$	24,491		$	27,249
Earnings per common share – basic	$	0.82		$	0.80		$	0.89
Earnings per common share – diluted	$	0.81		$	0.79		$	0.89

Consolidated Statements of Financial Condition
($ in thousands)	March 31, 2025			December 31, 2024			March 31, 2024
Assets	(unaudited)						(unaudited)
Cash and due from banks	$	4,196		$	4,042		$	3,830
Interest-bearing deposits in banks		61,518			56,707			151,374
Total cash and cash equivalents		65,714			60,749			155,204
Securities:
Available for sale, at fair value
Traditional securities		1,546,127			1,477,047			1,445,793
Property Assessed Clean Energy (“PACE”) assessments		161,147			152,011			82,258
		1,707,274			1,629,058			1,528,051
Held-to-maturity, at amortized cost:
Traditional securities, net of allowance for credit losses of $47, $49, and $53, respectively		535,065			542,246			616,172
PACE assessments, net of allowance for credit losses of $654, $655, and $657, respectively		1,038,052			1,043,959			1,057,790
		1,573,117			1,586,205			1,673,962

Loans held for sale		3,667			37,593			2,137
Loans receivable, net of deferred loan origination costs		4,677,506			4,672,924			4,423,780
Allowance for credit losses		(57,676	)		(60,086	)		(64,400	)
Loans receivable, net		4,619,830			4,612,838			4,359,380

Resell agreements		41,651			23,741			131,242
Federal Home Loan Bank of New York (“FHLBNY”) stock, at cost		4,679			15,693			4,603
Accrued interest receivable		55,092			61,172			53,436
Premises and equipment, net		7,366			6,386			7,128
Bank-owned life insurance		108,652			108,026			106,137
Right-of-use lease asset		12,477			14,231			19,797
Deferred tax asset, net		33,799			42,437			49,171
Goodwill		12,936			12,936			12,936
Intangible assets, net		1,343			1,487			2,034
Equity method investments		5,639			8,482			14,801
Other assets		31,991			35,858			16,663
Total assets	$	8,285,227		$	8,256,892		$	8,136,682
Liabilities
Deposits	$	7,412,072		$	7,180,605		$	7,305,765
Borrowings		69,676			314,409			139,705
Operating leases		17,190			19,734			27,250
Other liabilities		50,293			34,490			47,024
Total liabilities		7,549,231			7,549,238			7,519,744
Stockholders’ equity
Common stock, par value $0.01 per share		309			308			307
Additional paid-in capital		288,539			288,656			287,198
Retained earnings		500,783			480,144			412,190
Accumulated other comprehensive loss, net of income taxes		(47,308	)		(58,637	)		(78,872	)
Treasury stock, at cost		(6,327	)		(2,817	)		(4,018	)
Total Amalgamated Financial Corp. stockholders’ equity		735,996			707,654			616,805
Noncontrolling interests		—			—			133
Total stockholders’ equity		735,996			707,654			616,938
Total liabilities and stockholders’ equity	$	8,285,227		$	8,256,892		$	8,136,682

Select Financial Data
	As of and for the
	Three Months Ended
	March 31,		December 31,		March 31,
(Shares in thousands)		2025		2024		2024
Selected Financial Ratios and Other Data:
Earnings per share
Basic	$	0.82	$	0.80	$	0.89
Diluted		0.81		0.79		0.89
Core net income (non-GAAP)
Basic	$	0.88	$	0.91	$	0.84
Diluted		0.88		0.90		0.83
Book value per common share (excluding minority interest)	$	23.98	$	23.07	$	20.22
Tangible book value per share (non-GAAP)	$	23.51	$	22.60	$	19.73
Common shares outstanding, par value $0.01 per share⁽¹⁾		30,697		30,671		30,510
Weighted average common shares outstanding, basic		30,682		30,677		30,476
Weighted average common shares outstanding, diluted		30,946		30,976		30,737

(1) 70,000,000 shares authorized; 30,940,480, 30,809,484, and 30,736,141 shares issued for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024 respectively, and 30,696,940, 30,670,982, and 30,510,393 shares outstanding for the periods ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Select Financial Data
	As of and for the						As of and for the
	Three Months Ended						Three Months Ended
	March 31,		December 31,		March 31,		March 31,
	2025		2024		2024		2025		2024
Selected Performance Metrics:
Return on average assets	1.22	%	1.17	%	1.36	%	1.22	%	1.36	%
Core return on average assets (non-GAAP)	1.33	%	1.34	%	1.27	%	1.33	%	1.27	%
Return on average equity	14.05	%	13.83	%	18.24	%	14.05	%	18.24	%
Core return on average tangible common equity (non-GAAP)	15.54	%	16.13	%	17.59	%	15.54	%	17.59	%
Average equity to average assets	8.71	%	8.48	%	7.44	%	8.71	%	7.44	%
Tangible common equity to tangible assets (non-GAAP)	8.73	%	8.41	%	7.41	%	8.73	%	7.41	%
Loan yield	5.00	%	5.00	%	4.76	%	5.00	%	4.76	%
Securities yield	5.15	%	5.12	%	5.21	%	5.15	%	5.21	%
Deposit cost	1.59	%	1.53	%	1.46	%	1.59	%	1.46	%
Net interest margin	3.55	%	3.59	%	3.49	%	3.55	%	3.49	%
Efficiency ratio⁽¹⁾	54.10	%	52.83	%	48.75	%	54.10	%	48.75	%
Core efficiency ratio (non-GAAP)	52.11	%	49.82	%	50.40	%	52.11	%	50.40	%

Asset Quality Ratios:
Nonaccrual loans to total loans	0.70	%	0.45	%	0.75	%	0.70	%	0.75	%
Nonperforming assets to total assets	0.41	%	0.31	%	0.42	%	0.41	%	0.42	%
Allowance for credit losses on loans to nonaccrual loans	175.07	%	286.00	%	195.04	%	175.07	%	195.04	%
Allowance for credit losses on loans to total loans	1.23	%	1.29	%	1.46	%	1.23	%	1.46	%
Annualized net charge-offs to average loans	0.22	%	0.36	%	0.20	%	0.22	%	0.20	%

Capital Ratios:
Tier 1 leverage capital ratio	9.22	%	9.00	%	8.29	%	9.22	%	8.29	%
Tier 1 risk-based capital ratio	14.27	%	13.90	%	13.68	%	14.27	%	13.68	%
Total risk-based capital ratio	16.61	%	16.26	%	16.35	%	16.61	%	16.35	%
Common equity tier 1 capital ratio	14.27	%	13.90	%	13.68	%	14.27	%	13.68	%

⁽¹⁾Efficiency ratio is calculated by dividing total non-interest expense by the sum of net interest income and total non-interest income

Loan and PACE Assessments Portfolio Composition
(In thousands)	At March 31, 2025					At December 31, 2024					At March 31, 2024
	Amount			% of total		Amount			% of total		Amount			% of total
Commercial portfolio:
Commercial and industrial	$	1,183,297		25.3	%	$	1,175,490		25.2	%	$	1,014,084		22.9	%
Multifamily		1,371,950		29.3	%		1,351,604		28.9	%		1,175,467		26.6	%
Commercial real estate		409,004		8.7	%		411,387		8.8	%		353,598		8.0	%
Construction and land development		20,690		0.4	%		20,683		0.4	%		23,266		0.5	%
Total commercial portfolio		2,984,941		63.8	%		2,959,164		63.3	%		2,566,415		58.0	%

Retail portfolio:
Residential real estate lending		1,303,856		27.9	%		1,313,617		28.1	%		1,419,321		32.1	%
Consumer solar		356,601		7.6	%		365,516		7.8	%		398,501		9.0	%
Consumer and other		32,108		0.7	%		34,627		0.8	%		39,543		0.9	%
Total retail portfolio		1,692,565		36.2	%		1,713,760		36.7	%		1,857,365		42.0	%
Total loans held for investment		4,677,506		100.0	%		4,672,924		100.0	%		4,423,780		100.0	%

Allowance for credit losses		(57,676	)				(60,086	)				(64,400	)
Loans receivable, net	$	4,619,830				$	4,612,838				$	4,359,380

PACE assessments:
Available for sale, at fair value
Residential PACE assessments		161,147		13.4	%		152,011		12.7	%		82,258		7.2	%

Held-to-maturity, at amortized cost
Commercial PACE assessments		271,200		22.6	%		268,692		22.5	%		256,661		22.5	%
Residential PACE assessments		767,507		64.0	%		775,922		64.8	%		801,786		70.3	%
Total Held-to-maturity PACE assessments		1,038,707		86.6	%		1,044,614		87.3	%		1,058,447		92.8	%
Total PACE assessments		1,199,854		100.0	%		1,196,625		100.0	%		1,140,705		100.0	%

Allowance for credit losses		(654	)				(655	)				(657	)
Total PACE assessments, net	$	1,199,200				$	1,195,970				$	1,140,048


Loans receivable, net and total PACE assessments, net as a % of Deposits		78.5	%				80.9	%				75.3	%
Loans receivable, net and total PACE assessments, net as a % of Deposits excluding Brokered CDs		78.5	%				80.9	%				77.0	%

Net Interest Income Analysis
	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(In thousands)	Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate		Average Balance		Income / Expense			Yield / Rate

Interest-earning assets:
Interest-bearing deposits in banks	$	121,321		$	1,194	3.99	%	$	105,958		$	1,113	4.18	%	$	205,369		$	2,592	5.08	%
Securities⁽¹⁾		3,220,590			40,867	5.15	%		3,313,349			42,632	5.12	%		3,170,356			41,064	5.21	%
Resell agreements		30,169			786	10.57	%		50,938			816	6.37	%		79,011			1,326	6.75	%
Loans receivable, net⁽²⁾		4,695,264			57,843	5.00	%		4,619,723			58,024	5.00	%		4,390,489			51,952	4.76	%
Total interest-earning assets		8,067,344			100,690	5.06	%		8,089,968			102,585	5.04	%		7,845,225			96,934	4.97	%
Non-interest-earning assets:
Cash and due from banks		5,045							6,291							5,068
Other assets		220,589							214,868							226,270
Total assets	$	8,292,978						$	8,311,127						$	8,076,563

Interest-bearing liabilities:
Savings, NOW and money market deposits	$	4,242,786		$	26,806	2.56	%	$	3,971,128		$	26,329	2.64	%	$	3,591,551		$	21,872	2.45	%
Time deposits		232,683			2,111	3.68	%		220,205			2,085	3.77	%		188,045			1,576	3.37	%
Brokered CDs		—			—	0.00	%		11,822			169	5.69	%		190,240			2,443	5.16	%
Total interest-bearing deposits		4,475,469			28,917	2.62	%		4,203,155			28,583	2.71	%		3,969,836			25,891	2.62	%
Borrowings		134,340			1,196	3.61	%		98,768			908	3.66	%		288,093			3,006	4.20	%
Total interest-bearing liabilities		4,609,809			30,113	2.65	%		4,301,923			29,491	2.73	%		4,257,929			28,897	2.73	%
Non-interest-bearing liabilities:
Demand and transaction deposits		2,901,061							3,239,251							3,138,238
Other liabilities		59,728							65,580							79,637
Total liabilities		7,570,598							7,606,754							7,475,804
Stockholders’ equity		722,380							704,373							600,759
Total liabilities and stockholders’ equity	$	8,292,978						$	8,311,127						$	8,076,563

Net interest income / interest rate spread				$	70,577	2.41	%				$	73,094	2.31	%				$	68,037	2.24	%
Net interest-earning assets / net interest margin	$	3,457,535				3.55	%	$	3,788,045				3.59	%	$	3,587,296				3.49	%

Total deposits excluding Brokered CDs / total cost of deposits excluding Brokered CDs	$	7,376,530				1.59	%	$	7,430,584				1.52	%	$	6,917,834				1.36	%
Total deposits / total cost of deposits	$	7,376,530				1.59	%	$	7,442,406				1.53	%	$	7,108,074				1.46	%
Total funding / total cost of funds	$	7,510,870				1.63	%	$	7,541,174				1.56	%	$	7,396,167				1.57	%

(1) Includes Federal Home Loan Bank (FHLB) stock in the average balance, and dividend income on FHLB stock in interest income.
(2) Includes prepayment penalty interest income in 1Q2025, 4Q2024, or 1Q2024 of $0, $121, and $18, respectively (in thousands).

Deposit Portfolio Composition
	Three Months Ended
(In thousands)	March 31, 2025				December 31, 2024				March 31, 2024
	Ending Balance		Average Balance		Ending Balance		Average Balance		Ending Balance		Average Balance
Non-interest-bearing demand deposit accounts	$	2,895,757	$	2,901,061	$	2,868,506	$	3,239,251	$	3,182,047	$	3,138,238
NOW accounts		187,078		177,827		179,765		174,963		200,900		197,659
Money market deposit accounts		3,772,423		3,739,548		3,564,423		3,471,242		3,222,271		3,051,670
Savings accounts		330,410		325,411		328,696		324,922		341,054		342,222
Time deposits		226,404		232,683		239,215		220,205		197,265		188,045
Brokered certificates of deposit (“CDs”)		—		—		—		11,822		162,228		190,240
Total deposits	$	7,412,072	$	7,376,530	$	7,180,605	$	7,442,405	$	7,305,765	$	7,108,074

Total deposits excluding Brokered CDs	$	7,412,072	$	7,376,530	$	7,180,605	$	7,430,583	$	7,143,537	$	6,917,834

	Three Months Ended
	March 31, 2025				December 31, 2024				March 31, 2024
(In thousands)	Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds		Average Rate Paid⁽¹⁾		Cost of Funds

Non-interest bearing demand deposit accounts	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%	0.00	%
NOW accounts	0.72	%	0.70	%	0.72	%	0.81	%	1.05	%	1.03	%
Money market deposit accounts	2.73	%	2.76	%	2.67	%	2.85	%	2.96	%	2.67	%
Savings accounts	1.28	%	1.28	%	1.32	%	1.37	%	1.34	%	1.29	%
Time deposits	3.52	%	3.68	%	3.54	%	3.77	%	3.44	%	3.37	%
Brokered CDs	—	%	—	%	—	%	5.69	%	4.99	%	5.16	%
Total deposits	1.57	%	1.59	%	1.52	%	1.53	%	1.60	%	1.46	%

Interest-bearing deposits excluding Brokered CDs	2.58	%	2.62	%	2.54	%	2.70	%	2.75	%	2.50	%

⁽¹⁾ Average rate paid is calculated as the weighted average of spot rates on deposit accounts. Off-balance sheet deposits are excluded from all calculations shown.

Asset Quality
(In thousands)	March 31, 2025		December 31, 2024		March 31, 2024
Loans 90 days past due and accruing	$	—	$	—	$	—
Nonaccrual loans held for sale		989		4,853		989
Nonaccrual loans – Commercial		27,872		16,041		24,228
Nonaccrual loans – Retail		5,072		4,968		8,791
Nonaccrual securities		7		8		31
Total nonperforming assets	$	33,940	$	25,870	$	34,039

Nonaccrual loans:
Commercial and industrial	$	12,786	$	872	$	8,750
Commercial real estate		3,979		4,062		4,354
Construction and land development		11,107		11,107		11,124
Total commercial portfolio		27,872		16,041		24,228

Residential real estate lending		1,375		1,771		4,763
Consumer solar		3,479		2,827		3,852
Consumer and other		218		370		176
Total retail portfolio		5,072		4,968		8,791
Total nonaccrual loans	$	32,944	$	21,009	$	33,019

Credit Quality
	March 31, 2025		December 31, 2024		March 31, 2024
($ in thousands)
Criticized and classified loans
Commercial and industrial	$	55,157	$	62,614	$	62,242
Multifamily		8,540		8,573		10,274
Commercial real estate		3,979		4,062		8,475
Construction and land development		11,107		11,107		11,124
Residential real estate lending		1,375		6,387		4,763
Consumer solar		3,479		2,827		3,852
Consumer and other		218		370		176
Total loans	$	83,855	$	95,940	$	100,906

Criticized and classified loans to total loans
Commercial and industrial	1.18	%	1.34	%	1.41	%
Multifamily	0.18	%	0.18	%	0.23	%
Commercial real estate	0.09	%	0.09	%	0.19	%
Construction and land development	0.24	%	0.24	%	0.25	%
Residential real estate lending	0.03	%	0.14	%	0.11	%
Consumer solar	0.07	%	0.06	%	0.09	%
Consumer and other	—	%	0.01	%	0.01	%
Total loans	1.79	%	2.06	%	2.29	%

	March 31, 2025				December 31, 2024				March 31, 2024
	Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance		Annualized net charge- offs (recoveries) to average loans		ACL to total portfolio balance
Commercial and industrial	0.28	%	1.29	%	0.53	%	1.15	%	0.16	%	1.58	%
Multifamily	—	%	0.23	%	0.15	%	0.21	%	—	%	0.38	%
Commercial real estate	—	%	0.39	%	—	%	0.39	%	—	%	0.40	%
Construction and land development	—	%	6.05	%	(7.19)	%	6.06	%	—	%	3.67	%
Residential real estate lending	—	%	0.73	%	0.28	%	0.71	%	—	%	0.87	%
Consumer solar	1.90	%	7.01	%	1.71	%	7.96	%	1.67	%	6.72	%
Consumer and other	0.70	%	5.67	%	0.86	%	6.83	%	0.86	%	6.36	%
Total loans	0.22	%	1.23	%	0.36	%	1.29	%	0.20	%	1.46	%

Reconciliation of GAAP to Non-GAAP Financial Measures The information provided below presents a reconciliation of each of the non-GAAP financial measures to the most directly comparable GAAP financial measure.
	As of and for the
	Three Months Ended
(in thousands)	March 31, 2025			December 31, 2024			March 31, 2024
Core operating revenue
Net Interest Income (GAAP)	$	70,577		$	73,095		$	68,037
Non-interest income (GAAP)		6,406			4,789			10,229
Add: Securities loss		680			1,003			2,774
Less: ICS One-Way Sell Fee Income⁽¹⁾		(9	)		(1,347	)		(2,903	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		(837	)		4,117			—
Add: Tax (credits) depreciation on solar investments⁽³⁾		2,868			920			(1,808	)
Core operating revenue (non-GAAP)	$	79,685		$	82,577		$	76,329

Core non-interest expense
Non-interest expense (GAAP)	$	41,650		$	41,143		$	38,152
Add: Gain on settlement of lease termination⁽⁴⁾		—			—			499
Less: Severance costs⁽⁵⁾		(125	)		(1	)		(184	)
Core non-interest expense (non-GAAP)	$	41,525		$	41,142		$	38,467

Core net income
Net Income (GAAP)	$	25,028		$	24,491		$	27,249
Add: Securities loss		680			1,003			2,774
Less: ICS One-Way Sell Fee Income⁽¹⁾		(9	)		(1,347	)		(2,903	)
Less: Changes in fair value of loans held-for-sale⁽⁶⁾		(837	)		4,117			—
Less: Gain on settlement of lease termination⁽⁴⁾		—			—			(499	)
Add: Severance costs⁽⁵⁾		125			1			184
Add: Tax (credits) depreciation on solar investments⁽³⁾		2,868			920			(1,808	)
Less: Tax on notable items		(731	)		(1,217	)		607
Core net income (non-GAAP)	$	27,124		$	27,968		$	25,604

Tangible common equity
Stockholders’ equity (GAAP)	$	735,996		$	707,654		$	616,938
Less: Minority interest		—			—			(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,343	)		(1,487	)		(2,034	)
Tangible common equity (non-GAAP)	$	721,717		$	693,231		$	601,835

Average tangible common equity
Average stockholders’ equity (GAAP)	$	722,380		$	704,373		$	600,759
Less: Minority interest		—			(132	)		(133	)
Less: Goodwill		(12,936	)		(12,936	)		(12,936	)
Less: Core deposit intangible		(1,413	)		(1,575	)		(2,123	)
Average tangible common equity (non-GAAP)	$	708,031		$	689,730		$	585,567

(1) Included in service charges on deposit accounts in the Consolidated Statements of Income
(2) Included in other income in the Consolidated Statements of Income
(3) Included in equity method investments income in the Consolidated Statements of Income
(4) Included in occupancy and depreciation in the Consolidated Statements of Income
(5) Included in compensation and employee benefits in the Consolidated Statements of Income
(6) Included in changes in fair value of loans held-for-sale in the Consolidated Statements of Income

^¹ Definitions are presented under “Non-GAAP Financial Measures”. Reconciliations of non-GAAP financial measures to the most comparable GAAP measure are set forth on the last page of the financial information accompanying this press release and may also be found on the Company’s website, www.amalgamatedbank.com.

The MIL Network –

April 24, 2025

MIL-OSI: FirstCash Reports Record First Quarter Operating Results; Earnings per Share Increase 39% in Total and 34% on an Adjusted Basis; Operating Cash Flows Fund Store Additions, $60 Million of First Quarter Share Repurchases and Continued Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, April 24, 2025 (GLOBE NEWSWIRE) — FirstCash Holdings, Inc. (“FirstCash” or the “Company”) (Nasdaq: FCFS), the leading international operator of more than 3,000 retail pawn stores and a leading provider of retail point-of-sale payment solutions, today announced operating results for the three month period ended March 31, 2025. The Company also announced that the Board of Directors declared a quarterly cash dividend of $0.38 per share, which will be paid in May 2025.

Mr. Rick Wessel, chief executive officer, stated, “FirstCash posted record first quarter results, driven by the continued revenue and earnings growth from core pawn operations coupled with strong operating margins in the AFF POS payment solutions segment. Resulting first quarter net income grew 36% on a GAAP basis and 32% on an adjusted basis.

“Demand for pawn loans was robust during the quarter in both the U.S. and Latin America, with ending same-store pawn receivables increasing 13% in the U.S. and 14% in Latin America (local currency basis) versus last year. This marked seven consecutive quarters of double-digit same-store receivable growth in the U.S. segment which drove a 17% increase in earnings from the Company’s largest operating segment.

“Driven by a 19% increase in the number of merchant locations and further diversification outside of the furniture vertical, AFF delivered strong results as well, with earnings growth benefiting from solid credit performance and significant cost reductions. Excluding certain furniture retailers that closed last year due to bankruptcies, the number of active doors increased 29%, which should drive future revenue growth with greater merchant vertical diversification.

“Strong cash flows for the first quarter provided funding for the addition of 12 pawn locations, further purchases of store real estate and $60 million of stock repurchases in addition to the ongoing quarterly cash dividend. These investments are expected to deliver further earnings accretion in 2025 and beyond.”

This release contains adjusted financial measures, which exclude certain non-operating and/or non-cash income and expenses, that are non-GAAP financial measures. Please refer to the descriptions and reconciliations to GAAP of these and other non-GAAP financial measures at the end of this release.

	Three Months Ended March 31,
	As Reported (GAAP)				Adjusted (Non-GAAP)
In thousands, except per share amounts		2025		2024		2025		2024
Revenue	$	836,423	$	836,370	$	836,423	$	836,370
Net income	$	83,591	$	61,368	$	92,781	$	70,189
Diluted earnings per share	$	1.87	$	1.35	$	2.07	$	1.55
EBITDA (non-GAAP measure)	$	162,961	$	132,587	$	162,880	$	131,592
Weighted-average diluted shares		44,789		45,387		44,789		45,387

Consolidated Operating Highlights

Diluted earnings per share for the first quarter increased 39% over the prior-year quarter on a GAAP basis while adjusted diluted earnings per share increased 34% compared to the prior-year quarter.
Net income for the first quarter increased 36% over the prior-year quarter on a GAAP basis while adjusted net income increased 32% compared to the prior-year quarter.
Gross revenues totaled $836 million in the first quarter, flat on a U.S. dollar basis and up 4% on a constant currency basis, compared to the prior-year quarter.
For the trailing twelve month period ended March 31, 2025:
- Revenues totaled a record $3.4 billion
- Net income totaled $281 million on a GAAP basis while adjusted net income was $325 million
- Adjusted EBITDA was $590 million
- Operating cash flows were $544 million and adjusted free cash flows (a non-GAAP measure) were $269 million

Store Base and Platform Growth

Pawn Stores – 12 pawn locations were added in the first quarter through an acquisition and new store openings in three countries.
- In the U.S., a high profile luxury buy/sell retail store was acquired in Las Vegas, Nevada, and one new location in Texas was opened during the first quarter.
- There were 10 new store openings in Latin America in the first quarter which included nine locations in Mexico and one location in El Salvador.
- The Company purchased the underlying real estate of seven U.S. stores during the quarter, bringing the total number of company owned locations to 407 at quarter end.
- As of March 31, 2025, the Company had 3,023 locations, comprised of 1,197 U.S. locations and 1,826 locations in Latin America.
Retail POS Payment Solutions (AFF) Merchant Partnerships – At March 31, 2025, there were approximately 14,500 active retail and e-commerce merchant partner locations, representing a 19% increase in the number of active merchant locations compared to a year ago. Excluding furniture locations that closed in the prior year due to merchant partner bankruptcies, the number of active doors increased 29%.

U.S. Pawn Segment Operating Results

Segment pre-tax operating income in the first quarter of 2025 was a record $113 million, an increase of $17 million, or 17%, compared to the prior-year quarter. The resulting segment pre-tax operating margin increased to a record 27% for the first quarter of 2025 compared to 26% for the prior-year quarter.
Pawn receivables increased 16% in total at March 31, 2025 compared to the prior year, driven by a 2% increase in the year-to-date weighted-average store count coupled with an impressive 13% increase in same-store pawn receivables. On a two-year stacked basis, same-store pawn receivables were up 27%.
Pawn loan fees increased 12% for the first quarter, while on a same-store basis, they increased 10% compared to the respective prior-year period.
Retail merchandise sales increased 6% in the first quarter of 2025 compared to the prior-year quarter, while same-store retail sales increased 2% compared to the prior-year quarter.
Retail sales margins increased to 42% for the first quarter compared to 41% in the prior-year quarter.
Annualized inventory turnover was 2.8 times for the trailing twelve months ended March 31, 2025, which equaled the inventory turnover during the same prior-year period. Inventories aged greater than one year at March 31, 2025 remained low at 2% of total inventories.
Operating expenses for the first quarter increased 8% as compared to the prior-year quarter, primarily due to store additions and increased labor and variable compensation expenses. On a same-store basis, expenses increased 6% for the quarter compared to the respective prior-year period.

Latin America Pawn Segment Operating Results

Note: Certain growth rates below are calculated on a constant currency basis, a non-GAAP financial measure defined at the end of this release. The average Mexican peso to U.S. dollar exchange rate for the first quarter of 2025 was 20.4 pesos / dollar, an unfavorable change of 20% versus the comparable prior-year period.

Given the 20% decrease in the average Mexican peso exchange rate, first quarter segment pre-tax operating income decreased 2% on a U.S. dollar basis compared to last year. Segment earnings increased 13% over last year on a constant currency basis, with resulting segment pre-tax operating margins of 17% under both measures, compared to 16% in the prior year.
Pawn receivables at March 31, 2025 decreased 5% on a U.S. dollar basis while increasing 15% on a constant currency basis compared to the prior year. On a same-store basis, pawn receivables decreased 5% on a U.S. dollar basis but increased 14% on a constant currency basis compared to the prior year.
While total and same-store pawn loan fees in the first quarter decreased 5% on a U.S. dollar-basis, they increased 13% on a constant currency basis compared to the prior-year quarter.
Retail merchandise sales in the first quarter of 2025 decreased 8% on a U.S. dollar-basis compared to the prior-year quarter while increasing 9% on a constant currency basis. On a same-store basis, first quarter retail merchandise sales decreased 9% on a U.S. dollar basis while increasing 9% on a constant currency basis compared to the prior-year quarter.
Retail margins were 35% for the first quarter of 2025 compared to 36% in the prior-year quarter. Annualized inventory turnover was 4.2 times for the trailing twelve months ended March 31, 2025 compared to 4.4 times in the prior-year period. Inventories aged greater than one year at March 31, 2025 remained low at 2%.
Operating expenses decreased 9% in total and 8% on a same-store basis compared to the prior-year quarter. On a constant currency basis, they increased 8% both in total and on a same-store basis. The increase in constant currency expenses from all stores reflected increased store counts and higher labor costs (due primarily to further increases in the federal minimum wage), along with other inflationary impacts.

American First Finance (AFF) – Retail POS Payment Solutions Segment Operating Results

First quarter segment pre-tax operating income totaled $52 million, an increase of 58% compared to the prior-year quarter. The growth in earnings was driven primarily by gross margin improvement and operating expense reductions.
While gross revenues, comprised of lease-to-own (“LTO”) fees and interest and fees on finance receivables, decreased 12% compared to the prior-year quarter, net revenue increased 12%. The improvement in net revenue reflected lower LTO depreciation expense resulting from lower early buyout activity in the current quarter combined with lower lease and loan loss provisioning expense as discussed below.
Gross transaction volume of lease and loan originations during the first quarter decreased $21 million, or 8%, compared to the first quarter of last year. Excluding 2024 originations from American Freight and Conn’s Home Plus (both of which ceased operations in the fourth quarter of 2024 due to bankruptcy), first quarter 2025 origination volume increased approximately 24%.
Combined gross leased merchandise and finance receivables outstanding at March 31, 2025 decreased 4% compared to the March 31, 2024 balances due to lower first quarter originations.
The combined first quarter lease and loan loss provision expense decreased $10 million, or 13%, compared to last year. The decrease reflected reduced up-front provisioning given the $21 million decline in origination activity, coupled with lower than expected charge-offs resulting in reserve releases on older vintages. As a percentage of the total gross transaction volume, the combined lease and loan loss provision expense was 27% for the first quarter of 2025 compared to 29% in the first quarter of 2024. The combined allowance as a percentage of combined leased merchandise and finance receivables at March 31, 2025 was 43% compared to 42% a year ago.
Operating expenses decreased 30% compared to the prior-year quarter, primarily due to the elimination of certain expenses associated with supporting the American Freight and Conn’s Home Plus relationships along with continued realization of operating synergies, including greater efficiencies in technology and development infrastructure, coupled with other cost reduction initiatives.

Cash Flow and Liquidity

Consolidated operating cash flows for the twelve month period ended March 31, 2025 grew 27% and totaled $544 million compared to $428 million in the same prior-year period, with significant contributions from each of the Company’s three business segments.
Adjusted free cash flows increased 33% to $269 million in the twelve month period ended March 31, 2025 compared to $201 million in the same prior-year period.
The operating cash flows helped fund significant growth in earning assets and continued investments in the pawn store platform over the past twelve months with a nominal increase in net debt:
- Pawn earning assets (pawn receivables and inventories) increased $76 million compared to last year.
- A total of 38 pawn stores were acquired for a combined purchase price of $103 million.
- 53 new pawn stores were added with a combined investment of $19 million in fixed assets and working capital.
- Real estate purchases totaled $82 million as the Company purchased the underlying real estate at 56 of its existing pawn stores, bringing the number of Company-owned properties to 407 locations.
Net debt at March 31, 2025 was $1.6 billion, of which $1.5 billion is fixed rate debt with favorable interest rates ranging from 4.625% to 6.875% and maturity dates that do not begin until 2028 and continue into 2032. The outstanding balance under the Company’s $700 million revolving line of credit totaled $175 million at March 31, 2025.
Based on trailing twelve month results, the Company’s net debt to adjusted EBITDA ratio improved to 2.68x at March 31, 2025.

Shareholder Returns

The Board of Directors declared a $0.38 per share second quarter cash dividend, which will be paid on May 30, 2025 to stockholders of record as of May 15, 2025. This represents an annualized dividend of $1.52 per share. Any future dividends are subject to approval by the Company’s Board of Directors.
During the first quarter, the Company repurchased 525,000 shares of common stock at a total cost of $60 million and an average price of $113.54 per share.
Over the past twelve months, the Company has repurchased 1,246,000 shares of common stock at a total cost of $145 million and paid out $67 million in cash dividends, representing a payout ratio of approximately 75% of net income over the same period.
The Company has $55 million available under the $200 million share repurchase program authorized in July 2023. Future share repurchases are subject to expected liquidity, acquisitions and other investment opportunities, debt covenant restrictions, market conditions and other relevant factors.
The Company generated a 14% return on equity and a 6% return on assets for the twelve months ended March 31, 2025. Using adjusted net income for the twelve months ended March 31, 2025, the adjusted return on equity was 16% while the adjusted return on assets was 7%.

2025 Outlook

Driven by the strong first quarter results and continued demand for pawn loans, the outlook for 2025 remains highly positive, with expected year-over-year growth in income driven by the continued growth in earning asset balances coupled with store additions. Anticipated conditions and trends for the remainder of 2025 include the following:

Pawn Operations:

Pawn operations are expected to remain the primary earnings driver in 2025 as the Company expects segment income from the combined U.S. and Latin America pawn segments to be over 80% of total segment level pre-tax income for the full year.
The Company expects further growth in the pawn store base in 2025 through a combination of new store openings and potential acquisitions. The guidance provided below does not assume any material acquisition activity.

U.S. Pawn

Same-store pawn loans at March 31, 2025 were up 13% compared to a year ago, with April balances to date up similarly. Given the strength of the first quarter same-store results, the increase in pawn fee growth is estimated to be in a range of 9% to 11% for the full year.
Retail sales are expected to grow mid-single digits in 2025, with retail sales margins targeted at approximately 41% to 42%.

Latin America Pawn

U.S. dollar-reported results for Latin America in 2025 are expected to be impacted by the lower exchange rate for the Mexican peso, which has most recently been in a range of approximately 20 to 21 pesos per U.S. dollar compared to the average exchange rate of 18.3 to 1 in 2024.
Same-store pawn receivables at March 31, 2025 were down 5% on a U.S. dollar basis but up 14% on a constant currency basis, with April balances to date up similarly. Full year pawn fee growth is now expected to increase in a range of 10% to 12% on a local currency basis while it is projected to be flat to down slightly on a U.S. dollar basis, given the current exchange rate.
Retail sales in Latin America are also expected to track similarly to pawn fees in 2025 with consistent retail margins.

Retail POS Payment Solutions (AFF) Operations:

Despite an 8% year-over-year decrease in first quarter originations, the forecast for full year origination volume for 2025 is expected to be consistent with or slightly above full year 2024 volume. Excluding 2024 originations from Conn’s Home Plus and American Freight, origination volumes are expected to increase in a range of 20% to 25% over 2024, reflecting continued diversification outside the furniture vertical.
While net revenue in the first quarter benefited from lower credit provisioning on reduced originations and older vintage reserve releases, the remainder of the year will see increased loss provisioning consistent with the expected growth in origination activity over the balance of 2025.
Given the above origination and provisioning dynamics, second quarter net revenues are expected to decline 14% to 16% over last year, with full year net revenues forecast to decline in a range of 8% to 12% compared to the prior year. Quarterly operating expenses for the balance of 2025 are expected to remain consistent with the first quarter run rate.
The Company is raising AFF segment earnings expectations for 2025, with full year segment income now expected to increase over last year in a mid single-digit percentage range given the strong first quarter results coupled with the continued operating expense savings.

Tax Rates and Currency:

The full year 2025 effective income tax rate under current tax codes in the U.S. and Latin America is expected to range from 24.5% to 25.5%.
Each full point change in the exchange rate of the Mexican peso is projected to have an annual earnings impact of approximately $0.10 per share.

Additional Commentary and Analysis

Mr. Wessel further commented on FirstCash’s strong first quarter results and the outlook for the remainder of 2025, “As reported, our first quarter operating results were outstanding for each business segment and provide tremendous momentum as we begin the second quarter.

“The operating fundamentals in our core pawn segments remain especially strong given current demand for pawn loans. Total outstanding pawn loans at the end of the quarter were up 16% in the U.S. and 15% in Latin America, on a local currency basis, while the average loan amounts were up 11% in the U.S and 7% in Latin America on a local currency basis. At the same time, retail sales and margins remain solid given the deep-value, treasure-hunt nature of our retail showrooms.

“FirstCash continued to invest in the long-term growth of its core pawn assets by expanding its presence in existing markets and entering new markets across both segments. Over the last 12 months, we have added a total of 91 locations through new store openings and acquisitions. The Las Vegas location acquired in the first quarter is expected to deliver significantly higher retail revenue than a typical store, and with the addition of pawn products, should drive even greater profitability and further raise our profile in the high-end segment of the pawn market. Most importantly, the pipeline driving pawn store growth remains robust as we continue to open new stores and evaluate additional acquisition opportunities across multiple markets.

“In addition, we continue to purchase the underlying real estate of high-performing U.S. stores where we now own over 400 locations, representing over a third of our domestic locations. These real estate acquisitions give us not only long-term control of our prime locations, but also reduce future operating costs. At the same time, we continue to reduce current expenses in certain markets in both the U.S. and Latin America, where we often have overlapping locations arising from acquisitions. By consolidating the operations of these overlapping stores into single locations, we can achieve significant cost savings.

“First quarter results for AFF were also positive in almost every aspect despite the bankruptcies of two of its larger furniture lease-to-own merchant partners in late 2024. While revenues declined slightly as expected, we more than offset the impact with strong collection results on the existing portfolios and reduced operating expenses. Our resulting outlook for 2025 earnings is improved and we continue to see a clear path for long-term growth of the AFF segment.

“Strong consolidated cash flows again supported the growth and further shareholder returns through year-over-year growth in earning assets, new and acquired stores and further share repurchases and dividends. The 525,000 shares repurchased in the first quarter for $60 million were executed at an average price of less than $114 per share. At the same time, we reduced outstanding debt on our revolving credit facility by $23 million and decreased the leverage ratio during the quarter.

“In summary, the current market environment remains extremely strong for our pawn-focused business model. Pawn products do well in challenging or uncertain economic cycles and combine well with a deep-value retail sales channel that has limited direct impact from tariffs. With our excellent balance sheet and cash flows, we have a strong platform to continue to drive expected long-term growth in revenues, earnings and shareholder value,” concluded Mr. Wessel.

About FirstCash

FirstCash is the leading international operator of pawn stores focused on serving cash and credit-constrained consumers. FirstCash’s more than 3,000 pawn stores in the U.S. and Latin America buy and sell a wide variety of jewelry, electronics, tools, appliances, sporting goods, musical instruments and other merchandise, and make small non-recourse pawn loans secured by pledged personal property. FirstCash’s pawn segments in the U.S. and Latin America currently account for approximately 80% of annualized segment earnings, with the remainder provided by its wholly owned subsidiary, AFF, which provides lease-to-own and retail finance payment solutions for consumer goods and services.

FirstCash is a component company in both the Standard & Poor’s MidCap 400 Index® and the Russell 2000 Index®. FirstCash’s common stock (ticker symbol “FCFS”) is traded on the Nasdaq, the creator of the world’s first electronic stock market. For additional information regarding FirstCash and the services it provides, visit FirstCash’s websites located at http://www.firstcash.com and http://www.americanfirstfinance.com.

Forward-Looking Information

This release contains forward-looking statements about the business, financial condition, outlook and prospects of FirstCash Holdings, Inc. and its wholly owned subsidiaries (together, the “Company”), including the Company’s outlook for 2025. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of forward-looking terminology such as “outlook,” “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations, outlook and future plans. Forward-looking statements can also be identified by the fact these statements do not relate strictly to historical or current matters. Rather, forward-looking statements relate to anticipated or expected events, activities, trends or results. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties.

While the Company believes the expectations reflected in forward-looking statements are reasonable, there can be no assurances such expectations will prove to be accurate. Security holders are cautioned that such forward-looking statements involve risks and uncertainties. Certain factors may cause results to differ materially from those anticipated by the forward-looking statements made in this release. Such factors may include, without limitation, risks related to the extensive regulatory environment in which the Company operates, including uncertainty involving the current regulatory environment under the current presidential administration; risks associated with the legal and regulatory proceedings that the Company is a party to or may become a party to in the future, including the Consumer Financial Protection Bureau (the “CFPB”) lawsuit filed against the Company; risks related to the Company’s acquisitions, including the failure of the Company’s acquisitions to deliver the estimated value and benefits expected by the Company and the ability of the Company to continue to identify and consummate acquisitions on favorable terms, if at all; potential changes in consumer behavior and shopping patterns which could impact demand for the Company’s pawn loan, retail, lease-to-own (“LTO”) and retail finance products; labor shortages and increased labor costs; a deterioration in the economic conditions in the United States and Latin America, including as a result of inflation, elevated interest rates and trade policy, which potentially could have an impact on discretionary consumer spending and demand for the Company’s products; currency fluctuations, primarily involving the Mexican peso; competition the Company faces from other retailers and providers of retail payment solutions; the ability of the Company to successfully execute on its business strategies; contraction in sales activity at merchant partners of the Company’s retail point-of-sale (“POS”) payment solutions business; impact of store closures, financial difficulties or even bankruptcies at the merchant partners of the Company’s retail POS payment solutions business; the ability of the Company’s retail POS payment solutions business to continue to grow its base of merchant partners, including those outside of the furniture vertical; and other risks discussed and described in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), including the risks described in Part 1, Item 1A, “Risk Factors” thereof, and other reports filed with the SEC. Many of these risks and uncertainties are beyond the ability of the Company to control, nor can the Company predict, in many cases, all of the risks and uncertainties that could cause its actual results to differ materially from those indicated by the forward-looking statements. The forward-looking statements contained in this release speak only as of the date of this release, and the Company expressly disclaims any obligation or undertaking to report any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.


FIRSTCASH HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands)

	Three Months Ended
	March 31,
		2025			2024
Revenue:
Retail merchandise sales	$	371,056		$	366,821
Pawn loan fees		191,871			179,535
Leased merchandise income		156,918			205,671
Interest and fees on finance receivables		73,413			57,387
Wholesale scrap jewelry sales		43,165			26,956
Total revenue		836,423			836,370

Cost of revenue:
Cost of retail merchandise sold		224,124			223,529
Depreciation of leased merchandise		88,819			120,284
Provision for lease losses		27,562			43,010
Provision for loan losses		36,360			30,418
Cost of wholesale scrap jewelry sold		35,355			23,289
Total cost of revenue		412,220			440,530

Net revenue		424,203			395,840

Expenses and other income:
Operating expenses		214,586			221,136
Administrative expenses		48,523			44,018
Depreciation and amortization		25,502			26,027
Interest expense		27,471			25,418
Interest income		(1,229	)		(743	)
Gain on foreign exchange		(14	)		(186	)
Merger and acquisition expenses		462			597
Other income, net		(2,315	)		(2,312	)
Total expenses and other income		312,986			313,955

Income before income taxes		111,217			81,885

Provision for income taxes		27,626			20,517

Net income	$	83,591		$	61,368

Certain amounts in the consolidated statement of income for the three months ended March 31, 2024 have been reclassified in order to conform to the 2025 presentation.

FIRSTCASH HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands)

	March 31,						December 31,
		2025			2024			2024
ASSETS
Cash and cash equivalents	$	146,034		$	135,070		$	175,095
Accounts receivable, net		71,166			69,703			73,325
Pawn loans		499,710			456,079			517,867
Finance receivables, net		145,079			105,653			147,501
Inventories		334,700			302,385			334,580
Leased merchandise, net		103,612			157,785			128,437
Prepaid expenses and other current assets		26,033			30,460			26,943
Total current assets		1,326,334			1,257,135			1,403,748

Property and equipment, net		724,213			658,349			717,916
Operating lease right of use asset		329,183			320,515			324,646
Goodwill		1,815,139			1,730,353			1,787,172
Intangible assets, net		216,736			265,184			228,858
Other assets		9,952			10,080			9,934
Deferred tax assets, net		4,720			5,836			4,712
Total assets	$	4,426,277		$	4,247,452		$	4,476,986

LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities	$	129,137		$	138,812		$	171,540
Customer deposits and prepayments		76,211			75,423			72,703
Lease liability, current		96,539			100,874			95,161
Total current liabilities		301,887			315,109			339,404

Revolving unsecured credit facilities		175,000			15,000			198,000
Senior unsecured notes		1,532,099			1,529,147			1,531,346
Deferred tax liabilities, net		129,936			133,606			128,574
Lease liability, non-current		228,995			209,208			225,498
Total liabilities		2,367,917			2,202,070			2,422,822

Stockholders’ equity:
Common stock		575			573			575
Additional paid-in capital		1,755,591			1,727,564			1,767,569
Retained earnings		1,477,730			1,263,564			1,411,083
Accumulated other comprehensive loss		(130,540	)		(36,702	)		(129,596	)
Common stock held in treasury, at cost		(1,044,996	)		(909,617	)		(995,467	)
Total stockholders’ equity		2,058,360			2,045,382			2,054,164
Total liabilities and stockholders’ equity	$	4,426,277		$	4,247,452		$	4,476,986

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS
(UNAUDITED)

The Company organizes its operations into three reportable segments as follows:

U.S. pawn
Latin America pawn
Retail POS payment solutions (AFF)

Corporate expenses and income, which include administrative expenses, corporate depreciation and amortization, interest expense, interest income, gain on foreign exchange, merger and acquisition expenses, and other income, net, are presented on a consolidated basis and are not allocated to the segments. Intersegment transactions related to AFF’s LTO payment solution product offered in U.S. pawn stores are eliminated from consolidated totals.

U.S. Pawn Operating Results and Margins (dollars in thousands)

	Three Months Ended
	March 31,
	2025			2024			Increase
Revenue:
Retail merchandise sales	$	251,225		$	236,990		6	%
Pawn loan fees		137,948			122,974		12	%
Wholesale scrap jewelry sales		33,492			17,726		89	%
Total revenue		422,665			377,690		12	%

Cost of revenue:
Cost of retail merchandise sold		145,758			139,914		4	%
Cost of wholesale scrap jewelry sold		27,224			15,266		78	%
Total cost of revenue		172,982			155,180		11	%

Net revenue		249,683			222,510		12	%

Segment expenses:
Operating expenses		128,951			118,895		8	%
Depreciation and amortization		7,600			7,013		8	%
Total segment expenses		136,551			125,908		8	%

Segment pre-tax operating income	$	113,132		$	96,602		17	%

Operating metrics:
Retail merchandise sales margin	42		%	41		%
Net revenue margin	59		%	59		%
Segment pre-tax operating margin	27		%	26		%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

U.S. Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

	As of March 31,
	2025			2024			Increase
Earning assets:
Pawn loans	$	365,972		$	315,792		16	%
Inventories		246,237			216,762		14	%
	$	612,209		$	532,554		15	%

Average outstanding pawn loan amount (in ones)	$	289		$	261		11	%

Composition of pawn collateral:
General merchandise	27		%	29		%
Jewelry	73		%	71		%
	100		%	100		%

Composition of inventories:
General merchandise	39		%	41		%
Jewelry	61		%	59		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	2.8 times			2.8 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Constant currency results are non-GAAP financial measures, which exclude the effects of foreign currency translation and are calculated by translating current-year results at prior-year average exchange rates. See the “Constant Currency Results” section below for additional discussion of constant currency operating results.

Latin America Pawn Operating Results and Margins (dollars in thousands)

												Constant Currency Basis
												Three Months
												Ended
		Three Months Ended										March 31,
		March 31,						Increase /					2025		Increase
			2025			2024		(Decrease)				(Non-GAAP)			(Non-GAAP)
Revenue:
Retail merchandise sales		$	120,532		$	130,849			(8	)%		$	143,211			9	%
Pawn loan fees			53,923			56,561			(5	)%			64,091			13	%
Wholesale scrap jewelry sales			9,673			9,230			5	%			9,673			5	%
Total revenue			184,128			196,640			(6	)%			216,975			10	%

Cost of revenue:
Cost of retail merchandise sold			78,739			84,183			(6	)%			93,439			11	%
Cost of wholesale scrap jewelry sold			8,131			8,023			1	%			9,647			20	%
Total cost of revenue			86,870			92,206			(6	)%			103,086			12	%

Net revenue			97,258			104,434			(7	)%			113,889			9	%

Segment expenses:
Operating expenses			61,417			67,425			(9	)%			72,515			8	%
Depreciation and amortization			4,436			5,105			(13	)%			5,216			2	%
Total segment expenses			65,853			72,530			(9	)%			77,731			7	%

Segment pre-tax operating income		$	31,405		$	31,904			(2	)%		$	36,158			13	%

Operating metrics:
Retail merchandise sales margin	35			%	36		%				35			%
Net revenue margin	53			%	53		%				52			%
Segment pre-tax operating margin	17			%	16		%				17			%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Latin America Pawn Earning Assets and Portfolio Metrics (dollars in thousands, except as otherwise noted)

									Constant Currency Basis
									As of
									March 31,
	As of March 31,						Increase /		2025		Increase
	2025			2024			(Decrease)		(Non-GAAP)		(Non-GAAP)
Earning assets:
Pawn loans	$	133,738		$	140,287		(5	)%	$	161,065	15	%
Inventories		88,463			85,623		3	%		106,579	24	%
	$	222,201		$	225,910		(2	)%	$	267,644	18	%

Average outstanding pawn loan amount (in ones)	$	86		$	97		(11	)%	$	104	7	%

Composition of pawn collateral:
General merchandise	58		%	63		%
Jewelry	42		%	37		%
	100		%	100		%

Composition of inventories:
General merchandise	62		%	66		%
Jewelry	38		%	34		%
	100		%	100		%

Percentage of inventory aged greater than one year	2		%	1		%

Inventory turns (trailing twelve months cost of merchandise sales divided by average inventories)	4.2 times			4.4 times

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Operating Results (dollars in thousands)

	Three Months Ended
	March 31,				Increase /
		2025		2024	(Decrease)
Revenue:
Leased merchandise income	$	156,918	$	205,671	(24	)%
Interest and fees on finance receivables		73,413		57,387	28	%
Total revenue		230,331		263,058	(12	)%

Cost of revenue:
Depreciation of leased merchandise		89,143		120,774	(26	)%
Provision for lease losses		27,604		43,180	(36	)%
Provision for loan losses		36,360		30,418	20	%
Total cost of revenue		153,107		194,372	(21	)%

Net revenue		77,224		68,686	12	%

Segment expenses:
Operating expenses		24,218		34,816	(30	)%
Depreciation and amortization		705		721	(2	)%
Total segment expenses		24,923		35,537	(30	)%

Segment pre-tax operating income	$	52,301	$	33,149	58	%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Retail POS Payment Solutions Gross Transaction Volumes (dollars in thousands)

	Three Months Ended
	March 31,				Increase /
		2025		2024	(Decrease)
Leased merchandise	$	94,305	$	154,121		(39	)%
Finance receivables		141,262		102,165		38	%
Total gross transaction volume	$	235,567	$	256,286		(8	)%

Retail POS Payment Solutions Earning Assets (dollars in thousands)

	As of March 31,						Increase /
		2025			2024		(Decrease)
Leased merchandise, net:
Leased merchandise, before allowance for lease losses	$	172,886		$	253,876			(32	)%
Less allowance for lease losses		(69,077	)		(95,786	)		(28	)%
Leased merchandise, net	$	103,809		$	158,090			(34	)%

Finance receivables, net:
Finance receivables, before allowance for loan losses	$	263,421		$	201,673			31	%
Less allowance for loan losses		(118,342	)		(96,020	)		23	%
Finance receivables, net	$	145,079		$	105,653			37	%

FIRSTCASH HOLDINGS, INC.
SEGMENT RESULTS (CONTINUED)
(UNAUDITED)

Allowance for Lease and Loan Losses and Other Portfolio Metrics (dollars in thousands)

	Three Months Ended
	March 31,						Increase /
		2025			2024		(Decrease)
Allowance for lease losses:
Balance at beginning of period	$	80,661		$	95,752			(16	)%
Provision for lease losses		27,604			43,180			(36	)%
Charge-offs		(41,528	)		(45,149	)		(8	)%
Recoveries		2,340			2,003			17	%
Balance at end of period	$	69,077		$	95,786			(28	)%

Leased merchandise portfolio metrics:
Provision rate ⁽¹⁾	29		%	28		%
Average monthly net charge-off rate ⁽²⁾	6.8		%	5.5		%
Delinquency rate ⁽³⁾	22.6		%	20.5		%

Allowance for loan losses:
Balance at beginning of period	$	117,005		$	96,454			21	%
Provision for loan losses		36,360			30,418			20	%
Charge-offs		(38,419	)		(33,279	)		15	%
Recoveries		3,396			2,427			40	%
Balance at end of period	$	118,342		$	96,020			23	%

Finance receivables portfolio metrics:
Provision rate ⁽¹⁾	26		%	30		%
Average monthly net charge-off rate ⁽²⁾	4.4		%	5.0		%
Delinquency rate ⁽³⁾	19.3		%	19.2		%

_{⁽¹⁾Calculated as provision for lease or loan losses as a percentage of the respective gross transaction volume originated.}
_{⁽²⁾Calculated as charge-offs, net of recoveries, as a percentage of the respective average earning asset balance before allowance for lease or loan losses.}
_{⁽³⁾Calculated as the percentage of the respective contractual earning asset balance owed that is 1 to 89 days past due (the Company charges off leases and finance receivables when they are 90 days or more contractually past due).}

FIRSTCASH HOLDINGS, INC.
PAWN STORE LOCATIONS AND MERCHANT PARTNER LOCATIONS

Pawn Operations

As of March 31, 2025, the Company operated 3,023 pawn store locations composed of 1,197 stores in 29 U.S. states and the District of Columbia, 1,724 stores in 32 states in Mexico, 72 stores in Guatemala, 18 stores in El Salvador and 12 stores in Colombia.

The following table details pawn store count activity for the three months ended March 31, 2025:

	Three Months Ended March 31, 2025
	U.S.		Latin America		Total
Total locations, beginning of period	1,200		1,826		3,026
New locations opened	1		10		11
Locations acquired	1		—		1
Consolidation of existing pawn locations ⁽¹⁾	(5	)	(10	)	(15	)
Total locations, end of period	1,197		1,826		3,023

_{⁽¹⁾Store consolidations were primarily acquired locations which have been combined with overlapping stores and for which the Company expects to maintain a significant portion of the acquired customer base in the consolidated location.}

Retail POS Payment Solutions

As of March 31, 2025, AFF provided LTO and retail POS payment solutions for consumer goods and services through a network of approximately 14,500 active retail merchant partner locations. This compares to the active door count of approximately 12,200 locations at March 31, 2024.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES
(UNAUDITED)

The Company uses certain financial calculations such as adjusted net income, adjusted diluted earnings per share, EBITDA, adjusted EBITDA, free cash flow, adjusted free cash flow, adjusted return on equity, adjusted return on assets and constant currency results as factors in the measurement and evaluation of the Company’s operating performance and period-over-period growth. The Company derives these financial calculations on the basis of methodologies other than generally accepted accounting principles (“GAAP”), primarily by excluding from a comparable GAAP measure certain items the Company does not consider to be representative of its actual operating performance. These financial calculations are “non-GAAP financial measures” as defined under the SEC rules. The Company uses these non-GAAP financial measures in operating its business because management believes they are less susceptible to variances in actual operating performance that can result from the excluded items, other infrequent charges and currency fluctuations. The Company presents these financial measures to investors because management believes they are useful to investors in evaluating the primary factors that drive the Company’s core operating performance and provide greater transparency into the Company’s results of operations. However, items that are excluded and other adjustments and assumptions that are made in calculating these non-GAAP financial measures are significant components in understanding and assessing the Company’s financial performance. These non-GAAP financial measures should be evaluated in conjunction with, and are not a substitute for, the Company’s GAAP financial measures. Further, because these non-GAAP financial measures are not determined in accordance with GAAP, and are thus susceptible to varying calculations, the non-GAAP financial measures, as presented, may not be comparable to other similarly-titled measures of other companies.

While acquisitions are an important part of the Company’s overall strategy, the Company has adjusted the applicable financial calculations to exclude merger and acquisition expenses and amortization of acquired AFF intangible assets. The Company does not consider these items to be related to the organic operations of the acquired businesses or its continuing operations and are generally not relevant to assessing or estimating the long-term performance of the acquired businesses. In addition, excluding these items allows for more accurate comparisons of the financial results to prior periods. Merger and acquisition expenses include incremental costs directly associated with merger and acquisition activities, including professional fees, legal expenses, severance, retention and other employee-related costs, contract breakage costs and costs related to the consolidation of technology systems and corporate facilities, among others.

The Company has certain leases in Mexico which are denominated in U.S. dollars. The lease liability of these U.S. dollar-denominated leases, which is considered a monetary liability, is remeasured into Mexican pesos using current period exchange rates, resulting in the recognition of foreign currency exchange gains or losses. The Company has adjusted the applicable financial measures to exclude these remeasurement gains or losses (1) because they are non-cash, non-operating items that could create volatility in the Company’s consolidated results of operations due to the magnitude of the end of period lease liability being remeasured and (2) to improve comparability of current periods presented with prior periods.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Net Income and Adjusted Diluted Earnings Per Share

Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance and prospects for the future by excluding items that management believes are non-operating in nature and are not representative of the Company’s core operating performance. In addition, management believes the adjustments shown below are useful to investors in order to allow them to compare the Company’s financial results for the current periods presented with the prior periods presented.

The following tables provide a reconciliation between net income and diluted earnings per share calculated in accordance with GAAP to adjusted net income and adjusted diluted earnings per share, which are shown net of tax (in thousands, except per share amounts):

							Trailing Twelve
	Three Months Ended						Months Ended
	March 31,						March 31,
		2025			2024			2025		2024
	In Thousands			In Thousands			In Thousands		In Thousands
Net income, as reported	$	83,591		$	61,368		$	281,038	$	233,281
Adjustments, net of tax:
Merger and acquisition expenses		354			457			1,603		6,524
Non-cash foreign currency loss (gain) related to lease liability		40			(169	)		2,836		(1,100	)
AFF purchase accounting and other adjustments		9,258			9,573			37,974		52,812
Other expenses (income), net		(462	)		(1,040	)		1,821		(2,154	)
Adjusted net income	$	92,781		$	70,189		$	325,272	$	289,363

	Three Months Ended
	March 31,
		2025			2024
	Per Share			Per Share
Diluted earnings per share, as reported	$	1.87		$	1.35
Adjustments, net of tax:
Merger and acquisition expenses		—			0.01
AFF purchase accounting and other adjustments		0.21			0.21
Other expenses (income), net		(0.01	)		(0.02	)
Adjusted diluted earnings per share	$	2.07		$	1.55

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA

The Company defines EBITDA as net income before income taxes, depreciation and amortization, interest expense and interest income and adjusted EBITDA as EBITDA adjusted for certain items, as listed below, that management considers to be non-operating in nature and not representative of its actual operating performance. The Company believes EBITDA and adjusted EBITDA are commonly used by investors to assess a company’s financial performance, and adjusted EBITDA is used as a starting point in the calculation of the consolidated total debt ratio as defined in the Company’s senior unsecured notes. The following table provides a reconciliation of net income to EBITDA and adjusted EBITDA (in thousands):

							Trailing Twelve
	Three Months Ended						Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
Net income	$	83,591		$	61,368		$	281,038		$	233,281
Income taxes		27,626			20,517			91,070			78,240
Depreciation and amortization		25,502			26,027			104,416			108,077
Interest expense		27,471			25,418			107,279			97,764
Interest income		(1,229	)		(743	)		(2,421	)		(1,695	)
EBITDA		162,961			132,587			581,382			515,667
Adjustments:
Merger and acquisition expenses		462			597			2,093			8,488
Non-cash foreign currency loss (gain) related to lease liability		57			(241	)		4,053			(1,571	)
AFF purchase accounting and other adjustments ⁽¹⁾		—			—			—			13,968
Other expenses (income), net		(600	)		(1,351	)		2,197			(2,798	)
Adjusted EBITDA	$	162,880		$	131,592		$	589,725		$	533,754

_{⁽¹⁾For the twelve months ended March 31, 2024, amount represents other non-recurring costs included in administrative expenses related to a discontinued finance product.}

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Free Cash Flow and Adjusted Free Cash Flow

For purposes of its internal liquidity assessments, the Company considers free cash flow and adjusted free cash flow. The Company defines free cash flow as cash flow from operating activities less purchases of furniture, fixtures, equipment and improvements and net fundings/repayments of pawn loan and finance receivables, which are considered to be operating in nature by the Company but are included in cash flow from investing activities. Adjusted free cash flow is defined as free cash flow adjusted for merger and acquisition expenses paid that management considers to be non-operating in nature.

Free cash flow and adjusted free cash flow are commonly used by investors as additional measures of cash generated by business operations that may be used to repay scheduled debt maturities and debt service or, following payment of such debt obligations and other non-discretionary items, that may be available to invest in future growth through new business development activities or acquisitions, repurchase stock, pay cash dividends or repay debt obligations prior to their maturities. These metrics can also be used to evaluate the Company’s ability to generate cash flow from business operations and the impact that this cash flow has on the Company’s liquidity. However, free cash flow and adjusted free cash flow have limitations as analytical tools and should not be considered in isolation or as a substitute for cash flow from operating activities or other income statement data prepared in accordance with GAAP. The following table reconciles cash flow from operating activities to free cash flow and adjusted free cash flow (in thousands):

							Trailing Twelve
	Three Months Ended						Months Ended
	March 31,						March 31,
		2025			2024			2025			2024
Cash flow from operating activities	$	126,640		$	122,532		$	544,066		$	428,080
Cash flow from certain investing activities:
Pawn loans, net ⁽¹⁾		19,440			25,149			(77,708	)		(54,187	)
Finance receivables, net		(20,566	)		(15,311	)		(144,569	)		(106,213	)
Purchases of furniture, fixtures, equipment and improvements		(12,914	)		(26,427	)		(54,732	)		(72,747	)
Free cash flow		112,600			105,943			267,057			194,933
Merger and acquisition expenses paid, net of tax benefit		354			457			1,603			6,524
Adjusted free cash flow	$	112,954		$	106,400		$	268,660		$	201,457

_{⁽¹⁾Includes the funding of new loans net of cash repayments and recovery of principal through the sale of inventories acquired from forfeiture of pawn collateral.}

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Adjusted Return on Equity and Adjusted Return on Assets

Management believes the presentation of adjusted return on equity and adjusted return on assets provides investors with greater transparency and provides a more complete understanding of the Company’s financial performance by excluding items that management believes are non-operating in nature and not representative of the Company’s core operating performance.

Annualized adjusted return on equity and adjusted return on assets is calculated as follows (dollars in thousands):

	Trailing Twelve
	Months Ended
	March 31, 2025
Adjusted net income⁽¹⁾	$	325,272

Average stockholders’ equity (average of five most recent quarter-end balances)	$	2,027,110
Adjusted return on equity (trailing twelve months adjusted net income divided by average equity)	16		%

Average total assets (average of five most recent quarter-end balances)	$	4,373,194
Adjusted return on assets (trailing twelve months adjusted net income divided by average total assets)	7		%

_{⁽¹⁾See detail of adjustments to net income in the “Adjusted Net Income and Adjusted Diluted Earnings Per Share” section above.}

Constant Currency Results

The Company’s reporting currency is the U.S. dollar, however, certain performance metrics discussed in this release are presented on a “constant currency” basis, which is considered a non-GAAP financial measure. The Company’s management uses constant currency results to evaluate operating results of business operations in Latin America, which are transacted in local currencies in Mexico, Guatemala and Colombia. The Company also has operations in El Salvador, where the reporting and functional currency is the U.S. dollar.

The Company believes constant currency results provide valuable supplemental information regarding the underlying performance of its business operations in Latin America, consistent with how the Company’s management evaluates such performance and operating results. Constant currency results reported herein are calculated by translating certain balance sheet and income statement items denominated in local currencies using the exchange rate from the prior-year comparable period, as opposed to the current comparable period, in order to exclude the effects of foreign currency rate fluctuations for purposes of evaluating period-over-period comparisons. See the Latin America pawn segment tables elsewhere in this release for additional reconciliation of certain constant currency amounts to as reported GAAP amounts.

FIRSTCASH HOLDINGS, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES (CONTINUED)
(UNAUDITED)

Exchange Rates for the Mexican Peso, Guatemalan Quetzal and Colombian Peso

	March 31,		Favorable /
	2025	2024	(Unfavorable)
Mexican peso / U.S. dollar exchange rate:
End-of-period	20.3	16.7	(22	)%
Three months ended	20.4	17.0	(20	)%

Guatemalan quetzal / U.S. dollar exchange rate:
End-of-period	7.7	7.8	1	%
Three months ended	7.7	7.8	1	%

Colombian peso / U.S. dollar exchange rate:
End-of-period	4,193	3,842	(9	)%
Three months ended	4,191	3,915	(7	)%

The MIL Network –

April 24, 2025

MIL-OSI: WTW Reports First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Revenue¹decreased 5% over prior year to $2.2 billion for the quarter due to the sale of TRANZACT
Organic Revenue growth of 5% for the quarter
Diluted Earnings per Share was $2.33 for the quarter, up 27% over prior year
Adjusted Diluted Earnings per Share was $3.13 for the quarter, comparable to prior year²
Operating Margin was 19.4% for the quarter, up 740 basis points over prior year
Adjusted Operating Margin was 21.6% for the quarter, up 100 basis points from prior year²

LONDON, April 24, 2025 (GLOBE NEWSWIRE) — WTW (NASDAQ: WTW) (the “Company”), a leading global advisory, broking and solutions company, today announced financial results for the first quarter ended March 31, 2025.

“We had a solid start to the year, delivering results in line with our expectations and making strong progress on our strategy to accelerate our performance, enhance our efficiency and optimize our portfolio,” said Carl Hess, WTW’s chief executive officer. “We are well-positioned to help our clients navigate economic uncertainty and highly focused on driving continued growth and margin expansion, and we are confident in our outlook. I’m proud of our team’s dedication and look forward to achieving our strategic and financial goals together.”

Consolidated Results

As reported, USD millions, except %

Key Metrics	Q1-25	Q1-24²	Y/Y Change
Revenue¹	$2,223	$2,341	Reported (5)% \| CC (4)% \| Organic 5%
Income from Operations	$432	$280	54%
Operating Margin %	19.4%	12.0%	740 bps
Adjusted Operating Income	$480	$483	(1)%
Adjusted Operating Margin %	21.6%	20.6%	100 bps
Net Income	$239	$194	23%
Adjusted Net Income	$316	$325	(3)%
Diluted EPS	$2.33	$1.83	27%
Adjusted Diluted EPS	$3.13	$3.13	0%

¹	The revenue amounts included in this release are presented on a U.S. GAAP basis except where stated otherwise. The segment discussion is on an organic basis.
²	Refer to “WTW Non-GAAP Measures” below and the Q1-25 Supplemental Slides for recast of historical Non-GAAP measures.

Revenue was $2.22 billion for the first quarter of 2025, a decrease of 5% as compared to $2.34 billion for the same period in the prior year. Excluding the impact of foreign currency, revenue decreased 4%. On an organic basis, revenue increased 5%. See Supplemental Segment Information for additional detail on book-of-business settlements and interest income included in revenue.

Net Income for the first quarter of 2025 was $239 million compared to Net Income of $194 million in the prior-year first quarter. Adjusted EBITDA for the first quarter was $532 million, or 23.9% of revenue, a decrease of 3%, compared to Adjusted EBITDA of $546 million, or 23.3% of revenue, in the prior-year first quarter. The U.S. GAAP tax rate for the first quarter was 21.5%, and the adjusted income tax rate for the first quarter used in calculating adjusted diluted earnings per share was 22.7%.

Cash Flow and Capital Allocation

Cash flows used in operating activities were $35 million for the quarter ended March 31, 2025, compared to cash flows from operating activities of $24 million for the prior year. Free cash flow for the quarters ended March 31, 2025 and 2024 was $(86) million and $(36) million, respectively, a decrease of $50 million, primarily driven by the absence of cash collections related to TRANZACT, which the Company sold on December 31, 2024, and increased compensation payments in the current-year quarter as compared to the prior-year quarter. During the quarter ended March 31, 2025, the Company repurchased 607,221 of its outstanding shares for $200 million.

First Quarter 2025 Segment Highlights

Health, Wealth & Career (“HWC”)

As reported, USD millions, except %

Health, Wealth & Career	Q1-25	Q1-24	Y/Y Change
Total Revenue	$1,165	$1,336	Reported (13)% \| CC (12)% \| Organic 3%
Operating Income	$311	$336	(7)%
Operating Margin %	26.7%	25.1%	160 bps

The HWC segment had revenue of $1.17 billion in the first quarter of 2025, a decrease of 13% (12% decrease constant currency and organic growth of 3%) from $1.34 billion in the prior year. Health delivered organic revenue growth in all regions driven by solid client retention, new business and geographic expansion. Wealth generated organic revenue growth from higher levels of Retirement work in Europe and International, alongside growth in our Investments business due to the success of our LifeSight solution and capital market improvements. Career had modest revenue growth as increased advisory work was tempered by some postponements amid economic uncertainty. Benefits Delivery & Outsourcing revenue grew primarily from increased project and core administration work.

Operating margins in the HWC segment increased 160 basis points from the prior-year first quarter to 26.7%, primarily due to the sale of TRANZACT and savings from the Transformation program. Please refer to the Supplemental Slides for TRANZACT’s standalone historical financial results.

Risk & Broking (“R&B”)

As reported, USD millions, except %

Risk & Broking	Q1-25	Q1-24	Y/Y Change
Total Revenue	$1,027	$978	Reported 5% \| CC 7% \| Organic 7%
Operating Income	$226	$203	11%
Operating Margin %	22.0%	20.8%	120 bps

The R&B segment had revenue of $1.03 billion in the first quarter of 2025, an increase of 5% (7% increase constant currency and organic) from $978 million in the prior year. Corporate Risk & Broking (CRB) had organic revenue growth driven by higher levels of new business activity and strong client retention globally. Insurance Consulting and Technology (ICT) had organic revenue growth for the quarter driven by the Consulting and Technology practices.

Operating margins in the R&B segment increased 120 basis points from the prior-year first quarter to 22.0%, due primarily to operating leverage driven by strong organic revenue growth and savings from the Transformation program which were partially offset by headwinds from decreased interest income and foreign currency fluctuations.

Select 2025 Financial Considerations

Changes to Non-GAAP financial measures:

All reported non-GAAP metrics will exclude non-cash net periodic pension and postretirement benefits
Free cash flow and free cash flow margin will capture cash outflows for capitalized software costs
Refer to Supplemental Slides for recast of historical Non-GAAP measures

Business mix:

TRANZACT business, which contributed $1.14 to adjusted diluted earnings per share in 2024, is no longer part of the business portfolio following the completion of the TRANZACT sale in the fourth quarter of 2024
Reinsurance joint venture with Bain Capital expected to be a headwind on adjusted diluted earnings per share of approximately $0.25 to $0.35

Free cash flow:

Expect cash outflows in 2025 from the payment of accrued costs related to the Transformation program which concluded in 2024
Cash taxes related to receipt of earnout from reinsurance divestiture will be classified as Cash Flows from Operating Activities on Statement of Cash Flows

Capital allocation:

Expect share repurchases of ~$1.5 billion, subject to market conditions and potential capital allocation to organic and inorganic investment opportunities

Foreign exchange:

Expect a foreign currency impact on adjusted diluted earnings per share to be neutral in 2025 at today’s rates

Adjusted operating margin outlook:

~100 basis points of average annual margin expansion over next 3 years in R&B
Incremental annual margin expansion at HWC and enterprise levels

The 2025 Financial Considerations above include Non-GAAP financial measures. We do not reconcile forward-looking Non-GAAP measures for reasons explained under “WTW Non-GAAP Measures” below.

Conference Call

The Company will host a live webcast and conference call to discuss the financial results for the first quarter 2025. It will be held on Thursday, April 24, 2025, beginning at 9:00 a.m. Eastern Time. A live broadcast of the conference call will be available on WTW’s website here. The conference call will include a question-and-answer session. To participate in the question-and-answer session, please register here. An online replay will be available at www.wtwco.com shortly after the call concludes.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance. Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at www.wtwco.com.

WTW Non-GAAP Measures

In order to assist readers of our consolidated financial statements in understanding the core operating results that WTW’s management uses to evaluate the business and for financial planning, we present the following non-GAAP measures: (1) Constant Currency Change, (2) Organic Change, (3) Adjusted Operating Income/Margin, (4) Adjusted EBITDA/Margin, (5) Adjusted Net Income, (6) Adjusted Diluted Earnings Per Share, (7) Adjusted Income Before Taxes, (8) Adjusted Income Taxes/Tax Rate, (9) Free Cash Flow and (10) Free Cash Flow Margin.

We believe that those measures are relevant and provide pertinent information widely used by analysts, investors and other interested parties in our industry to provide a baseline for evaluating and comparing our operating performance, and in the case of free cash flow, our liquidity results.

Within the measures referred to as ‘adjusted’, we adjust for significant items which will not be settled in cash, or which we believe to be items that are not core to our current or future operations. Some of these items may not be applicable for the current quarter, however they may be part of our full-year results. Additionally, we have historically adjusted for certain items which are not described below, but for which we may adjust in a future period when applicable. Items applicable to the quarter or full year results, or the comparable periods, include the following:

Restructuring costs and transaction and transformation – Management believes it is appropriate to adjust for restructuring costs and transaction and transformation when they relate to a specific significant program with a defined set of activities and costs that are not expected to continue beyond a defined period of time, or significant acquisition-related transaction expenses. We believe the adjustment is necessary to present how the Company is performing, both now and in the future when the incurrence of these costs will have concluded.
Gains and losses on disposals of operations – Adjustment to remove the gains or losses resulting from disposed operations that have not been classified as discontinued operations.
Net periodic pension and postretirement benefits – Adjustment to remove the recognition of net periodic pension and postretirement benefits (including pension settlements), other than service costs. We have included this adjustment as applicable in our prior-period disclosures in order to conform to the current-period presentation.

We evaluate our revenue on an as reported (U.S. GAAP), constant currency and organic basis. We believe presenting constant currency and organic information provides valuable supplemental information regarding our comparable results, consistent with how we evaluate our performance internally.

We consider Constant Currency Change, Organic Change, Adjusted Operating Income/Margin, Adjusted EBITDA/Margin, Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Income Before Taxes, Adjusted Income Taxes/Tax Rate and Free Cash Flow to be important financial measures, which are used to internally evaluate and assess our core operations and to benchmark our operating and liquidity results against our competitors. These non-GAAP measures are important in illustrating what our comparable operating and liquidity results would have been had we not incurred transaction-related and non-recurring items. Reconciliations of these measures are included in the accompanying tables with the following exception: The Company does not reconcile its forward-looking non-GAAP financial measures to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information, such as foreign currency impacts necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure, is available to the Company without unreasonable efforts. For the same reasons, the Company is unable to address the probable significance of the unavailable information. The Company provides non-GAAP financial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.

Our non-GAAP measures and their accompanying definitions are presented as follows:

Constant Currency Change – Represents the year-over-year change in revenue excluding the impact of foreign currency fluctuations. To calculate this impact, the prior year local currency results are first translated using the current year monthly average exchange rates. The change is calculated by comparing the prior year revenue, translated at the current year monthly average exchange rates, to the current year as reported revenue, for the same period. We believe constant currency measures provide useful information to investors because they provide transparency to performance by excluding the effects that foreign currency exchange rate fluctuations have on period-over-period comparability given volatility in foreign currency exchange markets.

Organic Change – Excludes the impact of fluctuations in foreign currency exchange rates, as described above and the period-over-period impact of acquisitions and divestitures on current-year revenue. We believe that excluding transaction-related items from our U.S. GAAP financial measures provides useful supplemental information to our investors, and it is important in illustrating what our core operating results would have been had we not included these transaction-related items, since the nature, size and number of these transaction-related items can vary from period to period.

Adjusted Operating Income/Margin – Income from operations adjusted for amortization, restructuring costs, transaction and transformation and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted operating income margin is calculated by dividing adjusted operating income by revenue. We consider adjusted operating income/margin to be important financial measures, which are used internally to evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted EBITDA/Margin – Net Income adjusted for provision for income taxes, interest expense, depreciation and amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted EBITDA Margin is calculated by dividing adjusted EBITDA by revenue. We consider adjusted EBITDA/margin to be important financial measures, which are used internally to evaluate and assess our core operations, to benchmark our operating results against our competitors and to evaluate and measure our performance-based compensation plans.

Adjusted Net Income – Net Income Attributable to WTW adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results and the related tax effect of those adjustments and the tax effects of internal reorganizations. This measure is used solely for the purpose of calculating adjusted diluted earnings per share.

Adjusted Diluted Earnings Per Share – Adjusted Net Income divided by the weighted-average number of ordinary shares, diluted. Adjusted diluted earnings per share is used to internally evaluate and assess our core operations and to benchmark our operating results against our competitors.

Adjusted Income Before Taxes – Income from operations before income taxes and interest in earnings of associates adjusted for amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results. Adjusted income before taxes is used solely for the purpose of calculating the adjusted income tax rate.

Adjusted Income Taxes/Tax Rate – Provision for income taxes adjusted for taxes on certain items of amortization, restructuring costs, transaction and transformation, gains and losses on disposals of operations, net periodic pension and postretirement benefits, the tax effects of significant adjustments and non-recurring items that, in management’s judgment, significantly affect the period-over-period assessment of operating results, divided by adjusted income before taxes. Adjusted income taxes is used solely for the purpose of calculating the adjusted income tax rate. Management believes that the adjusted income tax rate presents a rate that is more closely aligned to the rate that we would incur if not for the reduction of pre-tax income for the adjusted items and the tax effects of internal reorganizations, which are not core to our current and future operations.

Free Cash Flow – Cash flows from operating activities less cash used to purchase fixed assets and software. Free Cash Flow is a liquidity measure and is not meant to represent residual cash flow available for discretionary expenditures. Management believes that free cash flow presents the core operating performance and cash-generating capabilities of our business operations. As a result of our change in presentation, free cash flow for the prior period has been adjusted to conform to the current period, which includes the deduction of our capitalized software costs.

Free Cash Flow Margin – Free Cash Flow as a percentage of revenue, which represents how much of revenue would be realized on a cash basis. We consider this measure to be a meaningful metric for tracking cash conversion on a year-over-year basis due to the non-cash nature of our pension income, which is included in our GAAP and Non-GAAP earnings metrics presented herein.

These non-GAAP measures are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies. Non-GAAP measures should be considered in addition to, and not as a substitute for, the information contained within our condensed consolidated financial statements.

WTW Forward-Looking Statements

This document contains ‘forward-looking statements’ within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed future results of our operations. All statements, other than statements of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including such things as: our outlook; the potential impact of natural or man-made disasters like health pandemics and other world health crises; future capital expenditures; ongoing working capital efforts; future share repurchases; financial results (including our revenue, costs or margins) and the impact of changes to tax laws on our financial results; existing and evolving business strategies including those related to acquisition and disposition; demand for our services and competitive strengths; strategic goals; the benefits of new initiatives; growth of our business and operations; the sustained health of our product, service, transaction, client, and talent assessment and management pipelines; our ability to successfully manage ongoing leadership, organizational and technology changes, including investments in improving systems and processes; our ability to implement and realize anticipated benefits of any cost-savings initiatives generated from our now-completed multi-year operational transformation program or other expense savings initiatives; our recognition of future impairment charges; and plans and references to future successes, including our future financial and operating results, short-term and long-term financial goals, plans, objectives, expectations and intentions, including with respect to free cash flow generation, adjusted net revenue, adjusted operating margin and adjusted earnings per share, are forward-looking statements. Also, when we use words such as ‘may’, ‘will’, ‘would’, ‘anticipate’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘plan’, ‘continues’, ‘seek’, ‘target’, ‘goal’, ‘focus’, ‘probably’, or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature.

There are important risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking statements contained in this document, including the following: our ability to successfully establish, execute and achieve our global business strategy as it evolves; our ability to fully realize the anticipated benefits of our growth strategy, including inorganic growth through acquisitions; our ability to achieve our short-term and long-term financial goals, such as with respect to our cash flow generation, and the timing with respect to such achievement; the risks related to changes in general economic conditions, business and political conditions, changes in the financial markets, inflation, credit availability, increased interest rates, changes in trade policies, increased tariffs and retaliatory actions; the risks to our short-term and long-term financial goals from any of the risks or uncertainties set forth herein; the risks relating to the adverse impacts of macroeconomic trends, including those relating to changes in trade policies and tariffs, as well as political events, war, such as the Russia-Ukraine and Israel-Hamas wars, and other international disputes, terrorism, natural disasters, public health issues and other business interruptions on the global economy and capital markets, such as uncertainty in the global markets, inflation, changes in interest rates and recessionary trends, changes in spending by government agencies and contractors, which could have a material adverse effect on our business, financial condition, results of operations and long-term goals; our ability to successfully hedge against fluctuations in foreign currency rates; the risks relating to the adverse impacts of natural or man-made disasters such as health pandemics and other world health crises on the demand for our products and services, our cash flows and our business operations; material interruptions to or loss of our information processing capabilities, or failure to effectively maintain and upgrade our information technology resources and systems and related risks of cybersecurity breaches or incidents; our ability to comply with complex and evolving regulations related to data privacy, cybersecurity and artificial intelligence; the risks relating to the transitional arrangements in effect subsequent to our now-completed sale of TRANZACT; significant competition that we face and the potential for loss of market share and/or profitability; the impact of seasonality and differences in timing of renewals and non-recurring revenue increases from disposals and book-of-business sales; the insufficiency of client data protection, potential breaches of information systems or insufficient safeguards against cybersecurity breaches or incidents; the risk of increased liability or new legal claims arising from our new and existing products and services, and expectations, intentions and outcomes relating to outstanding litigation; the risk of substantial negative outcomes on existing or potential future litigation or investigation matters; changes in the regulatory environment in which we operate, including, among other risks, the impacts of pending competition law and regulatory investigations; various claims, government inquiries or investigations or the potential for regulatory action; our ability to make divestitures or acquisitions, including our ability to integrate or manage acquired businesses or carve-out businesses to be disposed, as well as our ability to identify and successfully execute on opportunities for strategic collaboration; our ability to integrate direct-to-consumer sales and marketing solutions with our existing offerings and solutions; our ability to successfully manage ongoing organizational changes, including as a result of our recently-completed multi-year operational transformation program, investments in improving systems and processes, and in connection with our acquisition and divestiture activities; disasters or business continuity problems; our ability to successfully enhance our billing, collection and other working capital efforts, and thereby increase our free cash flow; our ability to properly identify and manage conflicts of interest; reputational damage, including from association with third parties; reliance on third-party service providers and suppliers; risks relating to changes in our management structures and in senior leadership; the loss of key employees or a large number of employees and rehiring rates; our ability to maintain our corporate culture; doing business internationally, including the impact of global trade policies and retaliatory considerations as well as foreign currency exchange rates; compliance with extensive government regulation; the risk of sanctions imposed by governments, or changes to associated sanction regulations (such as sanctions imposed on Russia) and related counter-sanctions; our ability to effectively apply technology, data and analytics changes for internal operations, maintaining industry standards and meeting client preferences; changes and developments in the insurance industry or the U.S. healthcare system, including those related to Medicare, and any other changes and developments in legal, regulatory, economic, business or operational conditions that could impact our businesses; the inability to protect our intellectual property rights, or the potential infringement upon the intellectual property rights of others; fluctuations in our pension assets and liabilities and related changes in pension income, including as a result of, related to, or derived from movements in the interest rate environment, investment returns, inflation, or changes in other assumptions that are used to estimate our benefit obligations and their effect on adjusted earnings per share; our capital structure, including indebtedness amounts, the limitations imposed by the covenants in the documents governing such indebtedness and the maintenance of the financial and disclosure controls and procedures of each; our ability to obtain financing on favorable terms or at all; adverse changes in our credit ratings; the impact of recent or potential changes to U.S. or foreign laws, and the enactment of additional, or the revision of existing, state, federal, and/or foreign laws and regulations, recent judicial decisions and development of case law, other regulations and any policy changes and legislative actions, including those that may impose additional excise taxes or impact our effective tax rate; U.S. federal income tax consequences to U.S. persons owning at least 10% of our shares; changes in accounting principles, estimates or assumptions; our recognition of future impairment charges; risks relating to or arising from environmental, social and governance (‘ESG’) practices; fluctuation in revenue against our relatively fixed or higher-than-expected expenses; the risk that investment levels increase; the laws of Ireland being different from the laws of the U.S. and potentially affording less protections to the holders of our securities; and our holding company structure potentially preventing us from being able to receive dividends or other distributions in needed amounts from our subsidiaries.

The foregoing list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results. For more information, please see Part I, Item 1A in our Annual Report on Form 10-K, and our subsequent filings with the SEC. Copies are available online at http://www.sec.gov or www.wtwco.com.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved.

Our forward-looking statements speak only as of the date made and we will not update these forward-looking statements unless the securities laws require us to do so. With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we caution you against unduly relying on these forward-looking statements.

Contact

INVESTORS
Claudia De La Hoz | Claudia.Delahoz@wtwco.com


	WTW Supplemental Segment Information (In millions of U.S. dollars) (Unaudited)

REVENUE
							Components of Revenue Change⁽ⁱ⁾
							Less:				Less:
	Three Months Ended March 31,				As Reported		Currency		Constant Currency		Acquisitions/		Organic
	2025		2024		% Change		Impact		Change		Divestitures		Change

Health, Wealth & Career
Revenue excluding interest income	$	1,158	$	1,327		(13)%		(1)%		(12)%		(14)%		3%
Interest income		7		9
Total		1,165		1,336		(13)%		(1)%		(12)%		(14)%		3%

Risk & Broking
Revenue excluding interest income	$	1,005	$	950		6%		(2)%		8%		0%		8%
Interest income		22		28
Total		1,027		978		5%		(2)%		7%		0%		7%

Segment Revenue	$	2,192	$	2,314		(5)%		(2)%		(4)%		(8)%		5%
Corporate, reimbursable expenses and other		21		21
Interest income		10		6
Revenue	$	2,223	$	2,341		(5)%		(1)%		(4)%		(8)%	5%⁽ⁱⁱ⁾

⁽ⁱ⁾	Components of revenue change may not add due to rounding.
⁽ⁱⁱ⁾	Interest income did not contribute to organic change for the three months ended March 31, 2025.

BOOK-OF-BUSINESS SETTLEMENTS AND INTEREST INCOME

	Three Months Ended March 31,
	HWC				R&B				Corporate				Total
	2025		2024		2025		2024		2025		2024		2025		2024
Book-of-business settlements	$	2	$	—	$	—	$	2	$	—	$	—	$	2	$	2
Interest income		7		9		22		28		10		6		39		43
Total	$	9	$	9	$	22	$	30	$	10	$	6	$	41	$	45

SEGMENT OPERATING INCOME ⁽ⁱ⁾

	Three Months Ended March 31,
	2025		2024

Health, Wealth & Career	$	311	$	336
Risk & Broking		226		203
Segment Operating Income	$	537	$	539

⁽ⁱ⁾

Segment operating income excludes certain costs, including amortization of intangibles, restructuring costs, transaction and transformation expenses, certain litigation provisions, and to the extent that the actual expense based upon which allocations are made differs from the forecast/budget amount, a reconciling item will be created between internally-allocated expenses and the actual expenses reported for U.S. GAAP purposes.

SEGMENT OPERATING MARGINS

	Three Months Ended March 31,
	2025		2024
Health, Wealth & Career		26.7%		25.1%
Risk & Broking		22.0%		20.8%

RECONCILIATION OF SEGMENT OPERATING INCOME TO INCOME FROM OPERATIONS BEFORE INCOME TAXES

	Three Months Ended March 31,
	2025			2024

Segment Operating Income	$	537		$	539
Amortization		(48	)		(60	)
Restructuring costs		—			(18	)
Transaction and transformation⁽ⁱ⁾		—			(125	)
Unallocated, net⁽ⁱⁱ⁾		(57	)		(56	)
Income from Operations		432			280
Interest expense		(65	)		(64	)
Other (loss)/income, net		(64	)		26
Income from operations before income taxes and interest in earnings of associates	$	303		$	242

⁽ⁱ⁾	In addition to legal fees and other transaction costs, includes primarily consulting fees and compensation costs related to the Transformation program.
⁽ⁱⁱ⁾	Includes certain costs, primarily related to corporate functions which are not directly related to the segments, and certain differences between budgeted expenses determined at the beginning of the year and actual expenses that we report for U.S. GAAP purposes.

WTW Reconciliations of Non-GAAP Measures (In millions of U.S. dollars, except per share data) (Unaudited)

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO WTW TO ADJUSTED DILUTED EARNINGS PER SHARE

	Three Months Ended March 31,
	2025			2024

Net income attributable to WTW	$	235		$	190
Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Net periodic pension and postretirement benefits		75			(22	)
Gain on disposal of operations		(14	)		—
Tax effect on certain items listed above⁽ⁱ⁾		(28	)		(46	)
Adjusted Net Income	$	316		$	325

Weighted-average ordinary shares, diluted		101			104

Diluted Earnings Per Share	$	2.33		$	1.83
Adjusted for certain items:⁽ⁱⁱ⁾
Amortization		0.48			0.58
Restructuring costs		—			0.17
Transaction and transformation		—			1.21
Net periodic pension and postretirement benefits		0.74			(0.21	)
Gain on disposal of operations		(0.14	)		—
Tax effect on certain items listed above⁽ⁱ⁾		(0.28	)		(0.44	)
Adjusted Diluted Earnings Per Share⁽ⁱⁱ⁾	$	3.13		$	3.13

⁽ⁱ⁾	The tax effect was calculated using an effective tax rate for each item.
⁽ⁱⁱ⁾	Per share values and totals may differ due to rounding.

RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA

	Three Months Ended March 31,
	2025				2024

Net Income	$	239		10.8%	$	194		8.3%
Provision for income taxes		65				48
Interest expense		65				64
Depreciation		54				59
Amortization		48				60
Restructuring costs		—				18
Transaction and transformation		—				125
Net periodic pension and postretirement benefits		75				(22	)
Gain on disposal of operations		(14	)			—
Adjusted EBITDA and Adjusted EBITDA Margin	$	532		23.9%	$	546		23.3%

RECONCILIATION OF INCOME FROM OPERATIONS TO ADJUSTED OPERATING INCOME

	Three Months Ended March 31,
	2025			2024

Income from operations and Operating margin	$	432	19.4%	$	280	12.0%
Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Adjusted operating income and Adjusted operating income margin	$	480	21.6%	$	483	20.6%

RECONCILIATION OF GAAP INCOME TAXES/TAX RATE TO ADJUSTED INCOME TAXES/TAX RATE

	Three Months Ended March 31,
	2025			2024

Income from operations before income taxes and interest in earnings of associates	$	303		$	242

Adjusted for certain items:
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Net periodic pension and postretirement benefits		75			(22	)
Gain on disposal of operations		(14	)		—
Adjusted income before taxes	$	412		$	423

Provision for income taxes	$	65		$	48
Tax effect on certain items listed above⁽ⁱ⁾		28			46
Adjusted income taxes	$	93		$	94

U.S. GAAP tax rate		21.5	%		19.9	%
Adjusted income tax rate		22.7	%		22.3	%

⁽ⁱ⁾	The tax effect was calculated using an effective tax rate for each item.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW

	Years Ended December 31,
	2025			2024

Cash flows (used in)/from operating activities	$	(35	)	$	24
Less: Additions to fixed assets and software		(51	)		(60	)
Free Cash Flow	$	(86	)	$	(36	)

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Income (In millions of U.S. dollars, except per share data) (Unaudited)

	Three Months Ended March 31,
	2025			2024
Revenue	$	2,223		$	2,341

Costs of providing services
Salaries and benefits		1,324			1,342
Other operating expenses		365			457
Depreciation		54			59
Amortization		48			60
Restructuring costs		—			18
Transaction and transformation		—			125
Total costs of providing services		1,791			2,061

Income from operations		432			280

Interest expense		(65	)		(64	)
Other (loss)/income, net		(64	)		26

INCOME FROM OPERATIONS BEFORE INCOME TAXES AND INTEREST IN EARNINGS OF ASSOCIATES		303			242

Provision for income taxes		(65	)		(48	)

INCOME FROM OPERATIONS BEFORE INTEREST IN EARNINGS OF ASSOCIATES		238			194

Interest in earnings of associates, net of tax		1			—

NET INCOME		239			194

Income attributable to non-controlling interests		(4	)		(4	)

NET INCOME ATTRIBUTABLE TO WTW	$	235		$	190

EARNINGS PER SHARE
Basic earnings per share	$	2.34		$	1.84
Diluted earnings per share	$	2.33		$	1.83

Weighted-average ordinary shares, basic		100			103
Weighted-average ordinary shares, diluted		101			104

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Balance Sheets (In millions of U.S. dollars, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
ASSETS
Cash and cash equivalents	$	1,507		$	1,890
Fiduciary assets		10,293			9,504
Accounts receivable, net		2,366			2,494
Prepaid and other current assets		1,295			1,217
Total current assets		15,461			15,105
Fixed assets, net		667			661
Goodwill		8,841			8,799
Other intangible assets, net		1,255			1,295
Right-of-use assets		487			485
Pension benefits assets		550			530
Other non-current assets		803			806
Total non-current assets		12,603			12,576
TOTAL ASSETS	$	28,064		$	27,681
LIABILITIES AND EQUITY
Fiduciary liabilities	$	10,293		$	9,504
Deferred revenue and accrued expenses		1,499			2,211
Current debt		549			—
Current lease liabilities		120			118
Other current liabilities		923			765
Total current liabilities		13,384			12,598
Long-term debt		4,761			5,309
Liability for pension benefits		552			615
Provision for liabilities		359			341
Long-term lease liabilities		498			502
Other non-current liabilities		296			299
Total non-current liabilities		6,466			7,066
TOTAL LIABILITIES		19,850			19,664
COMMITMENTS AND CONTINGENCIES
EQUITY⁽ⁱ⁾
Additional paid-in capital		11,017			10,989
Retained earnings		51			109
Accumulated other comprehensive loss, net of tax		(2,935	)		(3,158	)
Total WTW shareholders’ equity		8,133			7,940
Non-controlling interests		81			77
Total Equity		8,214			8,017
TOTAL LIABILITIES AND EQUITY	$	28,064		$	27,681


⁽ⁱ⁾	Equity includes (a) Ordinary shares $0.000304635 nominal value; Authorized 1,510,003,775; Issued 99,210,847 (2025) and 99,805,780 (2024); Outstanding 99,210,847 (2025) and 99,805,780 (2024) and (b) Preference shares, $0.000115 nominal value; Authorized 1,000,000,000 and Issued none in 2025 and 2024.

WILLIS TOWERS WATSON PUBLIC LIMITED COMPANY Condensed Consolidated Statements of Cash Flows (In millions of U.S. dollars) (Unaudited)

	Years Ended March 31,
	2025			2024
CASH FLOWS (USED IN)/FROM OPERATING ACTIVITIES
NET INCOME	$	239		$	194
Adjustments to reconcile net income to total net cash from operating activities:
Depreciation		54			59
Amortization		48			60
Non-cash restructuring charges		—			11
Non-cash lease expense		25			27
Net periodic cost/(benefit) of defined benefit pension plans		88			(4	)
Provision for doubtful receivables from clients		5			8
Benefit from deferred income taxes		(23	)		(9	)
Share-based compensation		37			24
Net gain on disposal of operations		(14	)		—
Non-cash foreign exchange loss/(gain)		9			(1	)
Other, net		9			8
Changes in operating assets and liabilities, net of effects from purchase of subsidiaries:
Accounts receivable		162			113
Other assets		1			(53	)
Other liabilities		(691	)		(426	)
Provisions		16			13
Net cash (used in)/from operating activities		(35	)		24

CASH FLOWS USED IN INVESTING ACTIVITIES
Additions to fixed assets and software		(51	)		(60	)
Acquisitions of operations, net of cash acquired		(1	)		(15	)
(Purchase)/sale of investments		(32	)		1
Net cash used in investing activities		(84	)		(74	)

CASH FLOWS FROM FINANCING ACTIVITIES
Senior notes issued		—			746
Debt issuance costs		—			(7	)
Repayments of debt		(1	)		(1	)
Repurchase of shares		(200	)		(101	)
Net proceeds from fiduciary funds held for clients		315			1,011
Cash paid for employee taxes on withholding shares		(2	)		(5	)
Dividends paid		(88	)		(86	)
Acquisitions of and dividends paid to non-controlling interests		—			(1	)
Net cash from financing activities		24			1,556

(DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(95	)		1,506
Effect of exchange rate changes on cash, cash equivalents and restricted cash		80			(47	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD ⁽ⁱ⁾		4,998			3,792
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD ⁽ⁱ⁾	$	4,983		$	5,251

⁽ⁱ⁾	The amounts of cash, cash equivalents and restricted cash, their respective classification on the condensed consolidated balance sheets, as well as their respective portions of the increase or decrease in cash, cash equivalents and restricted cash for each of the periods presented have been included in the Supplemental Disclosure of Cash Flow Information section.

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

	Years Ended March 31,
	2025			2024

Supplemental disclosures of cash flow information:
Cash and cash equivalents	$	1,507		$	1,893
Fiduciary funds (included in fiduciary assets)		3,476			3,358
Total cash, cash equivalents and restricted cash	$	4,983		$	5,251

(Decrease)/increase in cash, cash equivalents and other restricted cash	$	(411	)	$	487
Increase in fiduciary funds		316			1,019
Total ⁽ⁱ⁾	$	(95	)	$	1,506

⁽ⁱ⁾	Does not include the effect of exchange rate changes on cash, cash equivalents and restricted cash.

The MIL Network –

April 24, 2025

MIL-OSI United Kingdom: Career Insight: Joe, Trainee Solicitor, HM Revenue & Customs

Source: United Kingdom – Executive Government & Departments

Case study

Career Insight: Joe, Trainee Solicitor, HM Revenue & Customs

Joe provides an insight into his training within HMRC Legal Group

I am a fourth seat trainee in HM Revenue & Customs (HMRC) Legal Group’s European and International Law advisory team. The team advises on, drafts and helps negotiate a range of international agreements, including Free-Trade Agreements and Double Taxation Treaties.

I studied Philosophy and Politics as my undergraduate degree, focussing my studies on human rights and the regulation of transnational enterprises. I suspected that a career in law was the best opportunity apply these interests in practice; however, as a non-law graduate I was reluctant to immediately volunteer for the expense and stress of two more years of study in the form of the GDL and LPC. So, after graduating, I moved abroad to pursue a career playing and coaching rugby; the COVID-19 pandemic put paid to that ambition but provided me the opportunity to start an online law conversion.

I applied for the role at HMRC as I thought that first-hand experience of the legislative process and regular precedent setting litigation would provide a great opportunity to develop my career as a solicitor; but also because the tax arena seemed to offer a lot of variety, encompassing my interests in both public law and commercial questions.

All trainees start in litigation for their first year, though pupils spend 6 months of this seconded to Chambers. My first seat was in VAT litigation so after three years of intensive study, I arrived at HMRC braced for mountains of paperwork and long days of dense tax calculations. Instead, waiting on my desk were various packets of lentil-based snacks and the deceptively knotty legal question; are these crisps, or at least similar to crisps? I spent the seat thinking about other such questions, like what distinguishes cosmetic surgery from medical care. During this seat I visited the Supreme Court assisting a senior lawyer and saw my own case feature in national newspapers.

For my second seat I applied for HMRC’s Enforcement and Illicit Finance litigation Team. The question for this team was less frequently whether someone owes tax, but how HMRC can actually collect it from them. My tasks ranged from advocating on HMRC’s behalf in the magistrates Court to instructing counsel at fast pace on High Court Proceedings, attending the Court of Appeal and working with international law enforcement to seize overseas assets.

As a trainee you will get give your own cases to run as part of a cross-HMRC case team with tax and policy experts, so you can stretch yourself in an environment surrounded by expert lawyers and tax professionals, who are all very generous with their time. Your role is to co-ordinate this team and ask the right questions to tease the legal arguments out of your clients. In this respect the skills I developed playing teams sports were as important as my legal knowledge.

In your second year you move into an advisory team. In my first six months I worked on a mix of human rights and technical tax advice as part of the Personal Tax and Welfare team. I drafted my statutory instrument, which was a particular highlight, and fed into a major budget measure. It can feel like a drastic transition from the more adversarial world of litigation, but the training is extensive with HMRC running internal induction courses alongside the wider GLP offering.

The advisory lawyers cover a wide variety of tasks, with my final seat feeling like an entirely new role. I didn’t study EU or International Law as part of my law conversion, but having the lawyers who drafted the treaties sat next to you in the office is always a good starting point!

Whilst the HMRC training contract will be of particular interest for anyone who wants a career in public law, I think it is really important to understand the breadth of the department’s work. There is regular precedent setting litigation with engages questions of employment and commercial law, and advisory teams that span the breadth of civil and criminal practice.

Published 24 April 2025

MIL OSI United Kingdom –

April 24, 2025

MIL-OSI United Kingdom: Career Insight: Nadia, Trainee Solicitor, HM Revenue & Customs

Source: United Kingdom – Government Statements

Case study

Career Insight: Nadia, Trainee Solicitor, HM Revenue & Customs

Nadia provides an insight into her training within HMRC Legal Group

I am a trainee solicitor, currently in my second seat, working in HM Revenue & Customs (HMRC) Legal Group’s VAT Litigation team. My current work includes conducting litigation and looking at the VAT treatment of certain supplies, like food, beauty procedures, books, and marketing deals from some big household names. A big part of the team’s work is also focusing on serious non-compliance fraud cases and various VAT avoidance schemes. Is Jaffa Cake a biscuit or a cake? That is the type of work you would be able to be involved in working for HMRC’s Legal Group.

When applying for a training contract at HMRC, I never truly understood what being a government lawyer would be like. As HMRC’s lawyers, we are protecting billions of pounds that are then given back to the community in the way of public services, like healthcare, police and many other areas funded by the taxpayers. It’s a ‘pinch-me’ moment knowing that your work is meaningful.

In my first seat in Business and Property Taxes Litigation team, and continuing into my second seat, I was given a lot of responsibility from the get-go. I am leading my own cases, managing clients that are experts in a tax field and working with the country’s best counsel. As a trainee, you get to experience various aspects of litigation, whether it is drafting statements of case, creating bundles, attending hearings, or even doing a bit of advocacy, you will not be bored. Some litigation teams are more fast paced than others, but that’s the beauty of it, you will be able to steer your training in the direction you want it to go.

I have truly enjoyed my time as a trainee so far and have been given the opportunity to get involved in work that I never thought I would be able to as a trainee. As strange as it may seem, the highlight of my first seat was when my counsel had suddenly fallen ill on the morning of an important hearing that I had been preparing for months. After dozens of calls with different Chambers, the tribunal, clients, and understandably very unhappy opposing counsel, we managed to adjourn the hearing. The feeling of accomplishment could not be described.

I would recommend a career at HMRC to anyone interested in public service and challenging, interesting, and meaningful work.

Published 24 April 2025

MIL OSI United Kingdom –

April 24, 2025

MIL-OSI: Africa’s Tax Leaders to Celebrate a Decade of Insight and Innovation in Kigali

Source: GlobeNewswire (MIL-OSI)

Amsterdam, April 24, 2025 (GLOBE NEWSWIRE) — The Africa Tax Symposium (ATS) returns for its milestone 10th edition, marking a decade of transformative dialogue, learning, and collaboration in the African tax space. From 28 – 30 May 2025, tax professionals from across the continent and beyond will gather in Kigali, Rwanda for this landmark event, under the theme: “Trends in International Taxation: An African Perspective.”

Hosted by IBFD and the Centre for Studies in African Taxation (CSAT), the 10th Africa Tax Symposium promises an exceptional programme featuring world-class experts, thought-provoking sessions, and in-depth analyses of the latest developments in international tax, with a spotlight on their relevance to Africa.

“Reaching the 10th edition of the Africa Tax Symposium is a remarkable milestone – not just for IBFD and CSAT, but for the tax community in Africa. Over the past decade, we’ve seen the Symposium evolve into a trusted platform for critical dialogue, collaboration, and capacity building. ATS 2025 is not only a celebration of our journey so far, but a launchpad for the next chapter in shaping Africa’s tax future with authority, expertise, and shared purpose.” Belema Obuoforibo, Director of the IBFD Knowledge Centre and Chair of CSAT.

The symposium will be preceded by our ‘Navigating Selected Issues in International Taxation and Transfer Pricing’ Masterclass, held on 26 and 27 May, offering an intensive, practice-oriented exploration of this subject. Attendees will benefit from this in-person platform to learn, share and debate the most pressing issues in international taxation and transfer pricing.

Over the years, the ATS has become synonymous with high-level dialogue, peer learning, and a truly pan-African approach to tax policy and administration. Our 10^th anniversary event promises to elevate that legacy, offering new opportunities for networking, insight-sharing, and professional development in one of Africa’s most dynamic cities.

Secure your spot and celebrate 10 years of the ATS with us. Visit https://www.ibfd.org/events/10th-africa-tax-symposium for more information and to register.

Be part of the legacy. Be part of the future. Join us in Kigali.

The MIL Network –

April 24, 2025

MIL-OSI United Kingdom: Ban Airbnb tax breaks and introduce additional charges for short term lets

Source: Scottish Greens

24 Apr 2025 Housing

Homes are for living in, not for profiteering.

The Scottish Greens have tabled plans to ban tax breaks for short term let operators profiteering from houses that could be used to tackle Scotland’s homelessness crisis.

Green MSP Ross Greer has lodged an amendment to the Housing (Scotland) Bill which would ban short term let operators from receiving relief from Non-Domestic Rates (NDR), commonly known as business rates. A second amendment lodged by the MSP would give Ministers the power to charge short term lets an additional NDR rate instead.

At present short term lets typically enjoy up to 100% NDR relief through policies such as the Small Business Bonus Scheme.

These reforms would discourage businesses from buying up homes to turn into short term lets, like Airbnbs. It is hoped the move would encourage the sale of homes currently used as short term lets to free up housing for people to actually live in, rather than for businesses to profit from.

Since the last election, the Scottish Greens have doubled the tax paid when buying a holiday home or buy-to-let property and given councils the power to double Council Tax on holiday homes.

These reforms have had the desired effect on house purchases, with 2455 fewer second homes bought last year than in 2023, the largest decrease in a decade. Combined, these will also raise over a quarter of a billion pounds for public services in the current financial year.

Mr Greer said:

“There are communities across the country where the greed of short term let operators and buy-to-let landlords has destroyed any chance of local young people ever owning their own home.

“Given the damage they’ve done to the housing market, there is absolutely no need for short term let operators to continue receiving massive tax breaks. Instead, they should pay a bit more in tax to fund the extra affordable housing we need to solve the crisis they helped to cause.

“The changes already delivered by Green MSPs have reduced the number of second and holiday homes bought each year, freeing up more properties for people who need a home to live in and raising millions of pounds for vital services like schools and hospitals.

“We will continue cracking down on the rich hoarding homes and working to free up houses for people to actually live in.

“We have thousands of homeless people across Scotland while many homes are bought up and used as Airbnbs. The Scottish Greens believe housing should be for people and not for profit.”

MIL OSI United Kingdom –

April 24, 2025

MIL-OSI: Eurocastle Releases Fourth Quarter and Year End 2024 Financial Results

Source: GlobeNewswire (MIL-OSI)

EUROCASTLE INVESTMENT LIMITED

FOR IMMEDIATE RELEASE
Contact:
Oak Fund Services (Guernsey) Limited
Company Administrator
Attn: Nicole Barnes
Tel: +44 1481 723450

Eurocastle Releases Fourth Quarter and Year End 2024 Financial Results

Guernsey, 24 April 2025 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released its annual report for the year ended 31 December 2024.

IFRS NAV of €22.08 million, or €22.05 per share vs €21.34 per share as at Q3 2024 and €21.77 per share as at YE 2023, reflecting an increase in the value of the Company’s holding in a Luxembourg fund under the New Investment Strategy, following the closing of its first investment in October 2024.
Adjusted Net Asset Value (“NAV”) of €11.35 million¹, or €11.34 per share² vs. €10.91 per share in Q3 2024 and €11.12 per share as at YE 2023.

The tables below summarise the NAV by segment:


	YE 2024 NAV		Q3 2024 NAV		YE 2023 NAV
	€’m	€ p.s.	€’m	€ p.s.	€’m	€ p.s.
New Investment Strategy – Greece	5.77	5.76	0.11	0.11	0.10	0.10
Legacy Italian Real Estate Funds	0.06	0.06	0.06	0.06	0.08	0.08
Net Corporate Cash³	12.28	12.26	17.47	17.45	17.83	17.86
Legacy German Tax Asset	3.97	3.97	3.73	3.72	3.73	3.73
IFRS NAV	22.08	22.05	21.37	21.34	21.74	21.77

Legacy German Tax Reserve⁴	(5.99)	(5.97)	(5.44)	(5.43)	(5.46)	(5.46)

Adjusted NAV before Liquidation Reserve	16.09	16.08	15.93	15.91	16.28	16.31

Liquidation Reserve⁴	(4.74)	(4.74)	(5.00)	(5.00)	(5.18)	(5.19)

Adjusted NAV	11.35	11.34	10.93	10.91	11.10	11.12
Ordinary shares outstanding	1,001,555		1,001,555		998,555

As at 31 December 2024, the Company’s assets mainly comprise:

1. €12.28 million, or €12.26 per share, of net corporate cash, which is available to continue seeking investments under the New Investment Strategy.

2. €5.77 million, or €5.76 per share, in the Company’s first investment under the New Investment Strategy, a share in a Luxembourg fund which has opportunistically acquired a boutique retail complex in an affluent part of Athens, Greece.

3. A tax asset of €3.97 million, or €3.97 per share, representing amounts paid (and associated interest) in relation to additional tax assessed against a legacy German property subsidiary where the Company won the first instance of its appeal in December 2024. The German tax authorities have since appealed the decision and the Company is waiting for the date of the next hearing.

4. Residual interests in two legacy Italian Real Estate Fund Investments with an NAV of €0.06 million, or €0.06 per share, where the underlying properties have been fully sold, with both funds now in liquidation.

2024 BUSINESS HIGHLIGHTS

FY 2024 Overview

During 2024, having largely concluded its Realisation Plan, the Company made significant progress in implementing the New Investment Strategy by establishing the platform through which it can raise third party capital and make investments, while also closing on the first acquisition made as part of this strategy.

Highlights

New Investment Strategy – In August 2024, Eurocastle launched a Luxembourg regulated fund, European Properties Investment Fund S.C.A., SICAV RAIF (“EPIF” or the “Fund”), through which it expects to invest alongside selected external co-investors. EPIF initially closed with Eurocastle committing to invest €8 million alongside a €2 million commitment from its JV Partner. EPIF is now being marketed to potential investors with a target size of €100 million.
In addition to generating attractive risk adjusted returns on its share of any investments made, Eurocastle also anticipates receiving market standard management and incentive fees from external investors. The Company sees the Fund as an attractive opportunity to earn enhanced returns on the capital it invests while also building a meaningful base for future investments.
In October 2024, the Fund made its first acquisition, being part of a boutique retail complex in an affluent part of Athens with Eurocastle investing a total of €5.5 million into the Fund. The asset was acquired from one of the largest Greek banks out of a distressed situation. As at the end of 2024, Eurocastle’s 80% share in the NAV of EPIF is €5.8 million. In parallel with executing this first investment, EPIF has been underwriting a number of additional opportunities.
Legacy Italian Real Estate Funds –The remaining NAV for these investments of €0.06 million, or €0.06 per share, reflects cash currently reserved in the funds that is expected to be released once the fund manager resolves certain potential liabilities and liquidates each fund.
Legacy German Tax Matter – Prior to 2024, the Company had paid a net amount of €3.7 million in relation to the Legacy German tax matter against which it has raised a corresponding tax asset (together with associated interest). The Company, in pursuing the reimbursement of this amount through the German fiscal court, won the first instance of its appeal in December 2024. Shortly after, the German tax authorities appealed the decision through the German federal tax court and the Company is currently waiting to be notified of the date of the hearing. In the meantime, €2.5 million of the €3.7 million of additional tax paid by the Company, being the additional tax assessed before late payment interest, is accruing interest at 6% per annum, which would be paid to the Company should it finally prevail in the case.
The remaining potential exposure, associated with the same point under dispute, is estimated to be €1.7 million. This relates to the years 2013 to 2015 which remain subject to ongoing tax audits. Notwithstanding the Company’s expectation that the tax matter will eventually be resolved in the Company’s favour, as at 31 December 2024, the full potential liability of €6.0 million, or €5.97 per share (including associated defence costs and interest accrued), is fully reserved for within the Additional Reserves.
Additional Reserves – As at 31 December 2024, of the total Additional Reserves of €10.7 million, €6.0 million related to the legacy German tax matter with the balance of approximately €4.7 million in place to allow for future costs and potential liabilities while the Company pursues in parallel the New Investment Strategy. The Board anticipates reviewing the appropriate level of reserves once it has further clarity on the amount of commitments received by EPIF.

Subsequent Events

On April 23^rd, 2025, EPIF successfully held its first investor close, securing €16 million of commitments from 10 investors taking the total fund size to €26 million. Currently, a significant number of potential additional commitments are at advanced stage of due diligence, with a further close expected in May 2025.

The commitments closed on 23 April 2025 will reduce Eurocastle’s interest in the Fund from 80% to approximately 31%. As a result, the new investors will reimburse Eurocastle an estimated total of €3.5 million of the €5.5 million it had invested to date in EPIF. This reimbursement is to align Eurocastle’s revised pro rata share of the capital called plus compensatory interest. The amount to be paid to Eurocastle is substantially in line with the relevant share of Eurocastle’s valuation of its interest in EPIF as at 31 December 2024.


Income Statement for the Fourth Quarter 2024, Full Year 2024 and Full Year 2023	Q4 2024	FY 2024	FY 2023
	€ Thousands	€ Thousands	€ Thousands
*Portfolio Returns*
New Investment Strategy – Greece unrealised fair value movement	429	273	–
Legacy Italian NPLs & Other Loans realised gain	–	–	2
Legacy Italian Real Estate Funds unrealised fair value movement	–	(18)	(50)
Fair value movement on Investments	429	255	(48)
Other Income	100	113	2
Interest income	345	827	519
Loss on foreign currency translation	–	(1)	(2)
Total income	874	1,194	471

*Operating Expenses*
Manager base and incentive fees	42	103	94
Remaining operating expenses	115	745	1,012
Other operating expenses	157	848	1,106
Total expenses	157	848	1,106

Net profit/(loss) for the period/year	717	346	(635)
*€ per share*	*0.72*	*0.35*	*(0.64)*

	Balance Sheet and Adjusted NAV Reconciliation as at 31 December 2024	New Strategy Investments Greece	Legacy Italian Investments	Corporate	Total	Total
					2024	2023
		€ Thousands	€ Thousands	€ Thousands	€ Thousands	€ Thousands
Assets
	Other assets	–	–	315	315	210
	Legacy German tax asset	–	–	3,974	3,974	3,727
	Investments – New Investment Strategy – Greece	5,770	–	–	5,770	–
	Investments – Legacy Italian Real Estate Funds	–	64	–	64	82
	Cash, cash equivalents and treasury investments
	Cash and cash equivalents	–	–	12,415	12,415	13,951
	Treasury investments	–	–	–	–	4,236
Total assets		5,770	64	16,704	22,538	22,206
Liabilities
	Trade and other payables		–	389	389	425
	Manager base and incentive fees		–	63	63	41
Total liabilities			–	452	452	466
IFRS Net Asset Value		5,770	64	16,252	22,086	21,740
Liquidation cash reserve		–	–	(4,748)	(4,748)	(5,185)
Legacy German tax cash reserve		–	–	(2,008)	(2,008)	(1,728)
Legacy German tax asset		–	–	(3,974)	(3,974)	(3,727)
Adjusted NAV		5,770	64	5,522	11,356	11,100
*Adjusted NAV (€ per Share)*		*5.76*	*0.06*	*5.52*	*11.34*	*11.12*

NOTICE:

This announcement contains inside information for the purposes of the Market Abuse Regulation 596/2014.

ADDITIONAL INFORMATION

For investment portfolio information, please refer to the Company’s most recent Financial Report, which will be available on the Company’s website (www.eurocastleinv.com).

ABOUT EUROCASTLE

Eurocastle Investment Limited (“Eurocastle” or the “Company”) is a publicly traded closed-ended investment company. On 8 July 2022, the Company announced the relaunch of its investment activity and is currently in the early stages of pursuing its new strategy by initially focusing on opportunistic real estate in Greece with a plan to expand across Southern Europe. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

FORWARD LOOKING STATEMENTS

This release contains statements that constitute forward-looking statements. Such forward-looking statements may relate to, among other things, future commitments to sell real estate and achievement of disposal targets, availability of investment and divestment opportunities, timing or certainty of completion of acquisitions and disposals, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may”, “will”, “should”, “potential”, “intend”, “expect”, “endeavor”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, “project”, “continue”, “plan”, “forecast” or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company’s ability to predict results or the actual effect of future plans or strategies is limited. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause the Company’s actual results in future periods to differ materially from forecasted results or stated expectations including the risks regarding Eurocastle’s ability to declare dividends or achieve its targets regarding asset disposals or asset performance.

¹ In light of the Realisation Plan announced in November 2019, the Adjusted NAV as at 31 December 2024 reflects additional reserves for future costs and potential liabilities, which have not been accounted for under the IFRS NAV (“Additional Reserves”). No commitments for these future costs and potential liabilities existed as at 31 December 2024.
² Per share calculations for Eurocastle as at 31 December 2024 are based on 1,001,555 shares in issue. YE 2023 NAV per share based on 998,555 shares; Q3 2024 NAV per share based on 1,001,555 shares.
³ Reflects corporate cash net of accrued liabilities and other assets.

⁴ Reserves that were put in place when the Company realised the majority of its investment assets in 2019 in order for the Company to continue in operation and fund its
future costs and potential liabilities. These reserves are not accounted for under IFRS.

The MIL Network –

April 24, 2025

MIL-OSI: Flow Traders 1Q 2025 Trading Update

Source: GlobeNewswire (MIL-OSI)

Flow Traders 1Q 2025 Trading Update

Amsterdam, the Netherlands – Flow Traders Ltd. (Euronext: FLOW) announces its unaudited 1Q 2025 trading update.

Highlights

Flow Traders recorded Net Trading Income of €140.2m and Total Income of €135.1m in 1Q25, an increase of 10% and 4% when compared to €127.1m and €129.6m in 1Q24, respectively.
Flow Traders’ ETP Value Traded increased by 24% in 1Q25 to €507bn from €409bn in 1Q24.
Fixed Operating Expenses were €50.8m in the quarter, an increase of 15% when compared to the €44.1m in 1Q24, due mostly to increased employee and technology expenses.
Total Operating Expenses were €72.7m in 1Q25, an increase of 7% when compared to the €67.9m in 1Q24, due to higher Fixed Operating Expenses.
EBITDA was €62.3m in the quarter, an increase of 1% when compared to €61.6m in 1Q24. EBITDA margin was 46% in 1Q25 vs. 48% in 1Q24.
Net Profit came in at €36.3m in 1Q25, yielding a basic EPS of €0.84 and diluted EPS of €0.82, a 21% decrease compared to a Net Profit of €45.9m, basic EPS of €1.05, and diluted EPS of €1.04 in 1Q24.
Trading Capital stood at €803m at the end of 1Q25, a 32% and 4% increase from €609m and €775m at the end of 1Q24 and 4Q24, respectively, and generated a 68% return on average trading capital¹.
Shareholders’ equity was €787m at the end of 1Q25, compared to €631m at the end of 1Q24 and €767m at the end of 4Q24.
Flow Traders employed 619 FTEs at the end of 1Q25, compared to 601 at the end of 1Q24 and 609 at the end of 4Q24.

Leadership Update

In a separate release today, Flow Traders announced that Mike Kuehnel has conveyed to the Board his intention not to seek re-election as CEO for another full term at the 2025 AGM. He will leave Flow Traders at the end of August of this year, to pursue a new opportunity. To ensure a seamless leadership transition, Mike has agreed to be nominated for re-election as CEO at the upcoming AGM on 13 June 2025, his renewed term extending until 31 August 2025. The Board has initiated a search for his successor.

Furthermore, Marc Jansen will be nominated for election as Executive Director of Flow Traders Ltd. and in addition, Marc Jansen and Alex Kieft will be appointed as Co-Chief Trading Officers, effective immediately.

Financial Overview

€million	1Q25	1Q24	Change	YTD25	YTD24	Change
Net trading income	140.2	127.1	10%	140.2	127.1	10%
Other income	(5.1)	2.5	NM	(5.1)	2.5	NM
Total income	135.1	129.6	4%	135.1	129.6	4%
Revenue by region²
Europe	79.9	68.5	17%	79.9	68.5	17%
Americas	11.4	41.3	(72%)	11.4	41.3	(72%)
Asia	43.7	19.9	120%	43.7	19.9	120%
Fixed employee expenses	24.3	20.7	18%	24.3	20.7	18%
Technology expenses	17.4	15.8	10%	17.4	15.8	10%
Other expenses	9.1	7.7	19%	9.1	7.7	19%
Fixed operating expenses	50.8	44.1	15%	50.8	44.1	15%
Variable employee expenses	22.0	23.8	(8%)	22.0	23.8	(8%)
Total operating expenses	72.7	67.9	7%	72.7	67.9	7%
EBITDA	62.3	61.6	1%	62.3	61.6	1%
Interest expenses	0.4	–	NM	0.4	–	NM
Lease expenses	0.5	0.6	(8%)	0.5	0.6	(8%)
Depreciation & amortisation	4.7	4.3	11%	4.7	4.3	11%
Impairment of intangible assets	10.5	–	NM	10.5	–	NM
Profit/(loss) on equity-accounted investments	(1.8)	(0.4)	375%	(1.8)	(0.4)	375%
Profit before tax	44.3	56.4	(21%)	44.3	56.4	(21%)
Tax expense	8.0	10.6	(24%)	8.0	10.6	(24%)
Net profit	36.3	45.9	(21%)	36.3	45.9	(21%)
Basic EPS³ (€)	0.84	1.05	(21%)	0.84	1.05	(21%)
Fully diluted EPS⁴ (€)	0.82	1.04	(21%)	0.82	1.04	(21%)
EBITDA margin	46%	48%		46%	48%

Revenue by Region

€million	1Q23	2Q23	3Q23	4Q23	1Q24	2Q24	3Q24	4Q24	1Q25
Europe	58.5	33.1	33.6	42.6	68.4	48.6	70.2	86.9	79.9
Americas	32.8	9.3	22.0	18.1	41.3	13.4	20.8	18.2	11.4
Asia	19.2	9.0	12.1	13.6	19.9	14.2	23.6	53.8	43.7

Value Traded Overview

€billion	1Q25	1Q24	Change	YTD25	YTD24	Change
Flow Traders ETP Value Traded	507	409	24%	507	409	24%
Europe	245	152	61%	245	152	61%
Americas	213	229	(7%)	213	229	(7%)
Asia	49	27	81%	49	27	81%
Flow Traders non-ETP Value Traded	1,217	1,146	6%	1,217	1,146	6%
Flow Traders Value Traded	1,724	1,555	11%	1,724	1,555	11%
Equity	861	819	5%	861	819	5%
FICC	774	691	12%	774	691	12%
Other	89	45	100%	89	45	100%
Market ETP Value Traded⁵	14,425	11,981	20%	14,425	11,981	20%
Europe	882	597	48%	882	597	48%
Americas	11,065	9,965	11%	11,065	9,965	11%
Asia	2,478	1,419	75%	2,478	1,419	75%
Asia ex China	645	439	47%	645	439	47%

Trading Capital

	1Q23	2Q23	3Q23	4Q23	1Q24	2Q24	3Q24	4Q24	1Q25
Trading Capital (€m)	647	574	585	584	609	624	668	775	803
Return on Avg Trading Capital¹	67%	65%	56%	49%	50%	58%	62%	69%	68%
Average VIX⁷	21.0	16.7	15.1	15.4	13.9	14.2	17.1	17.3	18.5

Market Environment

Europe

Equity trading volumes in the quarter across major exchanges saw meaningful increases when compared to the same period a year ago, while market volatility also increased . Fixed Income trading volumes on MTFs increased slightly compared to the same period a year ago.

Americas

Equity trading volumes in the U.S. increased compared to the same period a year ago, but at a much lower level when compared to the other regions, while market volatility increased. Fixed Income trading volumes in the U.S. also increased slightly when compared to the same period a year ago, while volatility declined.

Asia

Equity trading volumes in Asia were mixed as Hong Kong and China saw significant increases while Japan experienced declines when compared to the same period a year ago. Market volatility increased across the board in Hong Kong, China and Japan when compared to the same period a year ago.

Digital Assets

Within Digital Assets, which trades across regions on a 24/7 basis, trading volumes in cryptocurrencies increased when compared to the same period a year ago. However, net fund flows into cryptocurrency ETFs declined significantly compared to a year ago given the spot Bitcoin ETF launches in the U.S. in January 2024.

Outlook

Fixed operating expenses guidance for the year remains unchanged and is expected to be in the range of €190-210m given additional technology investments and targeted additions of subject matter experts in growth areas, partially offset by expected operational efficiency gains.

CEO Statement

Mike Kuehnel, CEO
“Flow Traders posted a strong set of results in the first quarter, with the strength in the Equity segment in Europe and Asia in the quarter offsetting the lower contribution from Digital Assets when compared to the first quarter of 2024. The results serve as further confirmation of our diversification strategy and our ability to capture opportunities as they arise. The 68% return on average trading capital in the quarter also further validates our strategic decision to retain more profits to reinvest back into the company under the Trading Capital Expansion Plan, announced in July last year.

During the quarter, market trading volumes increased meaningfully across Europe and Asia given the macroeconomic uncertainty raised by the prospect of tariffs from the U.S. and the potential impact to the global economy. Volumes were particularly elevated in Hong Kong and China given the continued investor interest in China following the stimulus unveiled by the government in the fourth quarter of last year. Similarly, volumes increased meaningfully in Europe given the market outperformance, as investors looked to rotate their investments given the seismic geopolitical shift in the U.S. and its ramifications on Europe. The Americas had a more muted quarter when compared with the other regions as we allocated more of our capital to regions with greater dislocations. Regardless of where the activities were in the quarter, Flow Traders continued to provide liquidity to our counterparty base and was able to leverage trading opportunities given the breadth of our global trading operation.

In Digital Assets, while the value of cryptocurrencies pulled back post the U.S. presidential inauguration, we continue to see positive sentiment shifts by regulators in not only the U.S. but also in places like Hong Kong, Japan and Korea. The first Consensus conference in Asia, held in Hong Kong in February, demonstrated the increasing institutional interest and adoption of digital assets and the underlying technology in the region. As one of the earliest adopters, Flow Traders remains instrumental in providing liquidity to this asset class on a 24/7 basis and bridging the gap between traditional finance and digital assets ecosystems.

Looking forward to the rest of 2025, we remain committed to enhancing our trading capabilities by strategically investing in cutting-edge technology and talent. This approach aligns seamlessly with our growth and diversification strategy. We anticipate that these investments, coupled with our Trading Capital Expansion Plan, will drive top-line growth for the firm over time.”

Preliminary Financial Calendar

13 June 2025 AGM
31 July 2025 1H25 Results

Analyst Conference Call and Webcast

The 1Q25 trading update analyst conference call will be held at 10:00 am CEST on Thursday 24 April 2025. The presentation can be downloaded at https://www.flowtraders.com/investors/results-centre and the conference call can be followed via a listen-only audio webcast. A replay of the conference call will be available on the company website for at least 90 days.

Contact Details

Flow Traders Ltd.

Investors
Eric Pan
Phone: +31 20 7996799
Email: investor.relations@flowtraders.com

Media
Laura Peijs
Phone: +31 20 7996799
Email: press@flowtraders.com

About Flow Traders

Flow Traders is a leading trading firm providing liquidity in multiple asset classes, covering all major exchanges. Founded in 2004, Flow Traders is a leading global ETP market marker and has leveraged its expertise in trading European equity ETPs to expand into fixed income, commodities, digital assets and FX globally. Flow Traders’ role in financial markets is to ensure the availability of liquidity and enabling investors to continue to buy or sell financial instruments under all market circumstances, thereby ensuring markets remain resilient and continue to function in an orderly manner. In addition to its trading activities, Flow Traders has established a strategic investment unit focused on fostering market innovation and aligned with our mission to bring greater transparency and efficiency to the financial ecosystem. With over two decades of experience, we have built a team of over 600 talented professionals, located globally, contributing to the firm’s entrepreneurial culture and delivering the company’s mission.

Notes

Return on average trading capital defined as LTM NTI divided by the average of the prior and current end of period trading capital.
Revenue by region includes NTI, Other Income, and inter-company revenue.
Weighted average shares outstanding: 1Q25 – 43,394,080; 4Q24 – 43,066,302; 1Q24 – 43,515,359.
Determined by adjusting the basic EPS for the effects of all dilutive share-based payments to employees.
Source – Flow Traders analysis.
Starting in 3Q24, average VIX is calculated as the average of VIX daily closing prices.

Important Legal Information

This press release is prepared by Flow Traders Ltd. and is for information purposes only. It is not a recommendation to engage in investment activities and you must not rely on the content of this document when making any investment decisions. The information in this document does not constitute legal, tax, or investment advice and is not to be regarded as investor marketing or marketing of any security or financial instrument, or as an offer to buy or sell, or as a solicitation of any offer to buy or sell, securities or financial instruments.

The information and materials contained in this press release are provided ‘as is’ and Flow Traders Ltd. or any of its affiliates (“Flow Traders”) do not warrant the accuracy, adequacy or completeness of the information and materials and expressly disclaim liability for any errors or omissions. This press release is not intended to be, and shall not constitute in any way a binding or legal agreement, or impose any legal obligation on Flow Traders. All intellectual property rights, including trademarks, are those of their respective owners. All rights reserved. All proprietary rights and interest in or connected with this publication shall vest in Flow Traders. No part of it may be redistributed or reproduced without the prior written permission of Flow Traders.

This press release may include forward-looking statements, which are based on Flow Traders’ current expectations and projections about future events, and are not guarantees of future performance. Forward looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Words such as “may”, “will”, “would”, “should”, “expect”, “intend”, “estimate”, “anticipate”, “project”, “believe”, “could”, “hope”, “seek”, “plan”, “foresee”, “aim”, “objective”, “potential”, “goal” “strategy”, “target”, “continue” and similar expressions or their negatives are used to identify these forward-looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors because they relate to events and depend on circumstances that will occur in the future whether or not outside the control of Flow Traders. Such factors may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no undue reliance should be placed on any forward-looking statements. Forward-looking statements speak only as at the date at which they are made. Flow Traders expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions or circumstances on which such statements are based unless required to do so by applicable law.

Financial objectives are internal objectives of Flow Traders to measure its operational performance and should not be read as indicating that Flow Traders is targeting such metrics for any particular fiscal year. Flow Traders’ ability to achieve these financial objectives is inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond Flow Traders’ control, and upon assumptions with respect to future business decisions that are subject to change. As a result, Flow Traders’ actual results may vary from these financial objectives, and those variations may be material.

Efficiencies are net, before tax and on a run-rate basis, i.e. taking into account the full-year impact of any measure to be undertaken before the end of the period mentioned. The expected operating efficiencies and cost savings were prepared on the basis of a number of assumptions, projections and estimates, many of which depend on factors that are beyond Flow Traders’ control. These assumptions, projections and estimates are inherently subject to significant uncertainties and actual results may differ, perhaps materially, from those projected. Flow Traders cannot provide any assurance that these assumptions are correct and that these projections and estimates will reflect Flow Traders’ actual results of operations.

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Attachment

1Q25 Press Release

The MIL Network –

April 24, 2025

MIL-OSI: Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

Source: GlobeNewswire (MIL-OSI)

Press Release

VELIZY-VILLACOUBLAY, France — April 24, 2025

Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the first quarter 2025 ended March 31, 2025. The Group’s Board of Directors approved these estimated results on April 23, 2025. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

Summary Highlights¹

(unaudited, non-IFRS unless otherwise noted,
all growth rates in constant currencies)

1Q25: Software revenue increased by 5% driven by recurring revenue up 7%;
1Q25: Strong subscription growth of 14%, bringing New business up 7%;
1Q25: 3DEXPERIENCE software revenue growth of 17%;
1Q25: Diluted EPS up 5% (6% as reported) to €0.32;
1Q25: Cash flow from operations grew 21%, as reported, to €813 million (IFRS);
FY25: Full year objectives unchanged, total revenue growth of 6-8% and diluted EPS of €1.36-€1.39.

Dassault Systèmes’ Chief Executive Officer Commentary

Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

“In February this year we announced Gen 7, the new generation of representation of our customers’ virtual universes – we call it 3D UNIV+RSES. This seventh generation of MODSIM data, powered by AI and spatial computing, makes the 3DEXPERIENCE the next-generation platform for knowledge and know-how, establishing it as a global IP management platform. Early customer feedback confirms that platform-based AI leveraging virtual twins creates competitive advantage.

We’ve had a solid start to the year. In the first quarter, the Manufacturing Industries sector performed well led by Aerospace & Defense and High Tech, along with Transportation & Mobility in China, Japan and US. At the same time, we’re accelerating in Sovereign Infrastructure, where energy, security, and AI capabilities – through high-performance data centers – are becoming strategic imperatives for nations and territories.

We are committed to being the trusted partner for our customers – helping them stay ahead, while strengthening our leadership position for the long term and raising barriers to entry.”

Dassault Systèmes’ Chief Financial Officer Commentary

(revenue, operating margin and diluted EPS (‘EPS’) growth rates in constant currencies,
data on a non-IFRS basis)

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“In the first quarter, our revenue is driven by strong subscription growth of 14%. As a result, recurring revenue now represents 86% of software revenue, highlighting the resilience of our business model. Regarding operational efficiency, we reached the upper end of our EPS guidance and saw strong growth in operating cash flow, increasing by 21% as reported.

Entering 2025, our approach was to provide a risk-adjusted financial outlook. Since then, the introduction of new tariffs has created a more volatile market environment, which could lead to longer decision-making cycles. That said, our pipeline remains solid, and our current visibility aligns with the midpoint of our full year guidance.

Therefore, we keep our 2025 outlook of 6-8% total revenue growth and 7-10% EPS growth unchanged. In addition, we are slightly adjusting our operating margin target, expecting a year-over-year expansion of 50-70 basis points, versus 70-100 basis points prior, to gain additional flexibility and invest in Gen 7 to support our long-term growth.”

Financial Summary

In millions of Euros, except per share data and percentages	IFRS				Non-IFRS
In millions of Euros, except per share data and percentages	Q1 2025	Q1 2024	Change	Change in constant currencies	Q1 2025	Q1 2024	Change	Change in constant currencies
Total Revenue	1,573.0	1,499.7	5%	4%	1,573.0	1,499.7	5%	4%
Software Revenue	1,432.7	1,352.8	6%	5%	1,432.7	1,352.8	6%	5%
Operating Margin	19.4%	21.6%	(2.3)pts		30.9%	31.1%	(0.2)pt
Diluted EPS	0.20	0.21	(9)%		0.32	0.30	6%	5%

First Quarter 2025 Versus 2024 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue in the first quarter grew by 4% to €1.57 billion, and software revenue increased by 5% to €1.43 billion. Subscription & support revenue rose by 7%; recurring revenue represented 86% of software revenue, up 2 basis points versus last year. Licenses and other software revenue declined by 10% to €198 million. Services revenue was down 6% to €140 million, during the quarter.
Software Revenue by Geography: Revenue in the Americas increased by 7% to represent 43% of software revenue. This growth acceleration is driven by Aerospace & Defense, Transport & Mobility and High-Tech. Despite tariff uncertainty, Europe increased by 1%, led by good growth in Aerospace & Defense. Europe represented 36% of software revenue. In Asia, revenue increased by 5%, driven by India, Southeast Asia and Korea. Asia represented 22% of software revenue.
Software Revenue by Product Line:
- Industrial Innovation software revenue increased by 8% to €793 million. This strong broad-based performance was led by CATIA, ENOVIA, DELMIA and NETVIBES. Industrial Innovation software represented 55% of software revenue.

Life Sciences software revenue was stable at €293 million, accounting for 20% of software revenue. MEDIDATA was impacted by continued CRO² headwinds, while benefiting from the steady dynamic with Large Pharma and Mid-Market.
Mainstream Innovation software revenue increased by 2% to €347 million. SOLIDWORKS had a slow start to the year, but saw solid bookings and good momentum in 3DEXPERIENCE adoption. CENTRIC PLM was impacted by timing of renewals, after an exceptional year of growth in 2024. Mainstream Innovation represented 24% of software revenue, during the period.

Software Revenue by Industry: Aerospace & Defense, High Tech and Industrial Equipment were among the best performers during the quarter.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 17%, driven by Aerospace & Defense, High Tech and Transportation & Mobility, along with opportunities in the sovereign infrastructure domain. 3DEXPERIENCE software revenue represented 39% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 25% of software revenue during the period. 3DEXPERIENCE Cloud software revenue increased by 41%.
Operating Income and Margin: IFRS operating income declined by 6% to €304 million, as reported. Non-IFRS operating income increased by 3% in constant currencies to €486 million (up 4% as reported). The IFRS operating margin stood at 19.4% compared to 21.6% in the first quarter of 2024. The non-IFRS operating margin totaled 30.9% versus 31.1% during the same period last year.
Earnings per Share: IFRS diluted EPS was €0.20, down 9% as reported. Non-IFRS diluted EPS grew to €0.32, up 6% as reported, or 5% in constant currencies.
Cash Flow from Operations (IFRS): Cash flow from operations totaled €813 million, an increase of 21% relative to the same period last year with strong cash collection. Cash flow from operations was principally used for the acquisition of ContentServ for €191 million (net of €11 million of cash acquired), repurchase of Treasury Shares for €80 million, repayment of debt for €59 million and €56 million for investments in CAPEX.
Balance Sheet (IFRS): Dassault Systèmes had a net cash position of €1.79 billion as of March 31, 2025, an increase of €0.33 billion, compared to €1.46 billion for the year ending December 31, 2024. Cash and cash equivalents totaled €4.24 billion at the end of March 2025.

Financial Objectives for 2025

Dassault Systèmes’ second quarter and 2025 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2025 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:


		Q2 2025	FY 2025
Total Revenue (billion)		€1.520 – €1.580	€6.567 – €6.667
Growth		2 – 6%	6 – 7%
Growth ex FX		3 – 7%	6 – 8%

Software revenue growth *		3 – 7%	6 – 8%
	Of which licenses and other software revenue growth *	(6) – 1%	2 – 6%
	Of which recurring revenue growth *	5 – 8%	7 – 8%
Services revenue growth *		3 – 7%	4 – 6%

Operating Margin		29.8% – 29.9%	32.3% – 32.6%

EPS Diluted		€0.30 – €0.31	€1.36 – €1.39
Growth		(1) – 3%	7 – 9%
Growth ex FX		1 – 5%	7 – 10%

US dollar		$1.10 per Euro	$1.09 per Euro
Japanese yen (before hedging)		JPY 155.0 per Euro	JPY 156.4 per Euro
* Growth in Constant Currencies

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2025 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2025 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €213 million (these estimates do not include any new stock option or share grants issued after March 31, 2025); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €353 million, largely impacted by the acquisition of MEDIDATA and lease incentives of acquired companies at approximately €1 million.

The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after March 31, 2025.

Corporate Announcements

Today’s Webcast and Conference Call Information

Today, Thursday, April 24, 2025, Dassault Systèmes will host, from Paris, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

Investor Relations Events

Capital Markets Day: June 6, 2025
Second Quarter 2025 Earnings Release: July 24, 2025
Third Quarter 2025 Earnings Release: October 23, 2025
Fourth Quarter 2025 Earnings Release: February 11, 2026

Forward-looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2024 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2025, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Environment” in section 1.9.1.1 of the 2024 Universal Registration Document set out below for ease of reference:

“In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or cancel their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and negatively affect Dassault Systèmes’ business, and in particular its revenue, for example, due to stricter export compliance rules or the introduction of new customs barriers or controls on the exchange of goods and services;
continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
uncertainties regarding the extent and duration of costs inflation could adversely affect the financial position of Dassault Systèmes; and
the sales cycle of the Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

The occurrence of crises – health and political crises in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or to cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively affect Dassault Systèmes’ revenue, financial performance and market position.

Dassault Systèmes makes every effort to take into consideration this uncertain outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the second quarter 2025. The Group has assumed an average US dollar to euro exchange rate of US$1.09 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY156.4 to €1.00, before hedging for the full year 2025. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.

Non-IFRS Financial Information

Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2024 Universal Registration Document filed with the AMF on March 18, 2025.

In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens.
With Dassault Systèmes’ 3DEXPERIENCE platform, 370 000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact.
For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team FTI Consulting

Beatrix Martinez: +33 1 61 62 40 73 Arnaud de Cheffontaines: +33 1 47 03 69 48

Jamie Ricketts : +44 20 3727 1600

investors@3ds.com

Dassault Systèmes Press Contacts

Corporate / France Arnaud MALHERBE

arnaud.malherbe@3ds.com

+33 (0)1 61 62 87 73

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

APPENDIX TABLE OF CONTENTS

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Glossary of Definitions

Non-IFRS Financial Information

Acquisitions and Foreign Exchange Impact

Condensed consolidated statements of income

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

IFRS – non-IFRS reconciliation

DASSAULT SYSTÈMES – Glossary of Definitions

Information in Constant Currencies

Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant currencies is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

Information on Growth excluding acquisitions (“organic growth”)

In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

Information on Industrial Sectors

The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

These three sectors comprise twelve industries:

Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, medical practices, and Medtech;
Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

Information on Product Lines

The Group’s product lines financial reporting include the following financial information:

Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
Mainstream Innovation software revenue which includes SOLIDWORKS, as well as its CENTRIC PLM and 3DVIA brands.

Starting from 2022, OUTSCALE became a brand of the Group, extending the portfolio of software applications. As the first sovereign and sustainable operator on the cloud, OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

GEOs

Eleven GEOs are responsible for driving the development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

These GEOs are structured into three groups:

the “Americas” group, made of two GEOs;
the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEOs;
the “Asia” group, comprising Asia and Oceania and made of five GEOs.

3DEXPERIENCE Software Contribution

To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

Cloud revenue

Cloud revenue is generated from contracts that provide access to cloud-based solutions (SaaS), infrastructure as a service (IaaS), cloud solution development and cloud managed services. These offerings are delivered by Dassault Systèmes through its own cloud infrastructure or by third-party cloud providers. They are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscription-based models or perpetual licenses with support and hosting services.

New business

New business is the combination of subscription revenue and licenses & other software revenue.

DASSAULT SYSTÈMES

NON-IFRS FINANCIAL INFORMATION

(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

In millions of Euros, except per share data, percentages, headcount and exchange rates	Non-IFRS reported
	Three months ended
	March 31, 2025	March 31, 2024	Change	Change in constant currencies
Total Revenue	€ 1,573.0	€ 1,499.7	5%	4%

Revenue breakdown by activity
Software revenue	1,432.7	1,352.8	6%	5%
Of which licenses and other software revenue	198.1	218.5	(9)%	(10)%
Of which subscription and support revenue	1,234.6	1,134.3	9%	7%
Services revenue	140.2	146.8	(4)%	(6)%

Software revenue breakdown by product line
Industrial Innovation	793.1	731.4	8%	8%
Life Sciences	292.6	284.7	3%	0%
Mainstream Innovation	347.1	336.7	3%	2%

Software Revenue breakdown by geography
Americas	611.1	553.6	10%	7%
Europe	513.2	503.2	2%	1%
Asia	308.4	296.0	4%	5%

Operating income	€ 486.1	€ 466.5	4%
Operating margin	30.9%	31.1%

Net income attributable to shareholders	€ 420.1	€ 397.2	6%
Diluted earnings per share	€ 0.32	€ 0.30	6%	5%

Closing headcount	26,225	25,780	2%

Average Rate USD per Euro	1.05	1.09	(3)%
Average Rate JPY per Euro	160.45	161.15	(0)%

DASSAULT SYSTÈMES

ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

(unaudited; in millions of Euros)

In millions of Euros

Non-IFRS reported

o/w growth at constant rate and scope

o/w change of scope impact at current year rate

o/w FX impact on previous year figures

March 31,

2025

March 31,

2024

Change

Revenue QTD

1,573.0

1,499.7

73.3

52.6

0.9

19.8

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	IFRS reported
	Three months ended
	March 31,	March 31,
	2025	2024
Licenses and other software revenue	198.1	218.5
Subscription and Support revenue	1,234.6	1,134.3
Software revenue	1,432.7	1,352.8
Services revenue	140.2	146.8
Total Revenue	€ 1,573.0	€ 1,499.7
Cost of software revenue ⁽¹⁾	(129.2)	(111.9)
Cost of services revenue	(131.1)	(131.8)
Research and development expenses	(348.6)	(311.4)
Marketing and sales expenses	(446.5)	(420.3)
General and administrative expenses	(120.4)	(105.1)
Amortization of acquired intangible assets and of tangible assets revaluation	(88.3)	(93.3)
Other operating income and expense, net	(4.4)	(1.8)
Total Operating Expenses	(1,268.5)	(1,175.6)
Operating Income	€ 304.5	€ 324.1
Financial income (loss), net	30.3	30.2
Income before income taxes	€ 334.8	€ 354.2
Income tax expense	(75.5)	(68.3)
Net Income	€ 259.4	€ 286.0
Non-controlling interest	1.2	(0.3)
Net Income attributable to equity holders of the parent	€ 260.5	€ 285.7
Basic earnings per share	0.20	0.22
Diluted earnings per share	€ 0.20	€ 0.21
Basic weighted average shares outstanding (in millions)	1,312.3	1,313.6
Diluted weighted average shares outstanding (in millions)	1,332.2	1,331.1

⁽¹⁾ Excluding amortization of acquired intangible assets and of tangible assets revaluation.

IFRS reported	Three months ended March 31, 2025
IFRS reported	Change ⁽²⁾	Change in constant currencies
Total Revenue	5%	4%
Revenue by activity
Software revenue	6%	5%
Services revenue	(4)%	(6)%
Software Revenue by product line
Industrial Innovation	8%	8%
Life Sciences	3%	0%
Mainstream Innovation	3%	2%
Software Revenue by geography
Americas	10%	7%
Europe	2%	1%
Asia	4%	5%

⁽²⁾ Variation compared to the same period in the prior year.

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	March 31,	December 31,
	2025	2024
ASSETS
Cash and cash equivalents	4,242.9	3,952.6
Trade accounts receivable, net	1,709.5	2,120.9
Contract assets	34.3	30.1
Other current assets	464.8	464.0
Total current assets	6,451.5	6,567.6
Property and equipment, net	928.7	945.8
Goodwill and Intangible assets, net	7,597.6	7,687.1
Other non-current assets	358.9	345.5
Total non-current assets	8,885.2	8,978.3
Total Assets	€ 15,336.7	€ 15,545.9
LIABILITIES
Trade accounts payable	199.5	259.9
Contract liabilities	1,716.0	1,663.4
Borrowings, current	411.4	450.8
Other current liabilities	1,109.7	1,147.4
Total current liabilities	3,436.6	3,521.5
Borrowings, non-current	2,043.3	2,042.8
Other non-current liabilities	887.9	900.9
Total non-current liabilities	2,931.3	2,943.7
Non-controlling interests	14.3	14.1
Parent shareholders’ equity	8,954.5	9,066.6
Total Liabilities	€ 15,336.7	€ 15,545.9

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	Three months ended
	March 31,	March 31,	Change
	2025	2024	Change
Net income attributable to equity holders of the parent	260.5	285.7	(25.2)
Non-controlling interest	(1.2)	0.3	(1.4)
Net income	259.4	286.0	(26.6)
Depreciation of property and equipment	50.5	47.6	2.8
Amortization of intangible assets	89.6	95.2	(5.6)
Adjustments for other non-cash items	16.1	37.7	(21.6)
Changes in working capital	397.4	204.4	193.0
Net Cash From Operating Activities	€ 813.0	€ 670.9	€ 142.1

Additions to property, equipment and intangibles assets	(55.9)	(57.2)	1.2
Payment for acquisition of businesses, net of cash acquired	(193.8)	(4.5)	(189.2)
Other	(37.8)	22.3	(60.1)
Net Cash Provided by (Used in) Investing Activities	€ (287.5)	€ (39.4)	€ (248.1)

Proceeds from exercise of stock options	22.2	21.3	0.8
Repurchase and sale of treasury stock	(80.1)	(131.1)	51.0
Acquisition of non-controlling interests	(0.2)	(2.6)	2.5
Repayment of borrowings	(58.9)	(0.1)	(58.8)
Repayment of lease liabilities	(22.6)	(24.0)	1.4
Net Cash Provided by (Used in) Financing Activities	€ (139.6)	€ (136.5)	€ (3.0)

Effect of exchange rate changes on cash and cash equivalents	(95.7)	32.7	(128.4)

Increase (decrease) in cash and cash equivalents	€ 290.3	€ 527.7	€ (237.4)


Cash and cash equivalents at beginning of period	€ 3,952.6	€ 3,568.3
Cash and cash equivalents at end of period	€ 4,242.9	€ 4,095.9

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2024 filed with the AMF on March 18, 2025. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Three months ended March 31,						Change
	2025	Adjustment⁽¹⁾	2025	2024	Adjustment⁽¹⁾	2024	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 1,573.0	–	€ 1,573.0	€ 1,499.7	–	€ 1,499.7	5%	5%
Revenue breakdown by activity
Software revenue	1,432.7	–	1,432.7	1,352.8	–	1,352.8	6%	6%
Licenses and other software revenue	198.1	–	198.1	218.5	–	218.5	(9)%	(9)%
Subscription and Support revenue	1,234.6	–	1,234.6	1,134.3	–	1,134.3	9%	9%
Recurring portion of Software revenue	86%		86%	84%		84%
Services revenue	140.2	–	140.2	146.8	–	146.8	(4)%	(4)%
Software Revenue breakdown by product line
Industrial Innovation	793.1	–	793.1	731.4	–	731.4	8%	8%
Life Sciences	292.6	–	292.6	284.7	–	284.7	3%	3%
Mainstream Innovation	347.1	–	347.1	336.7	–	336.7	3%	3%
Software Revenue breakdown by geography
Americas	611.1	–	611.1	553.6	–	553.6	10%	10%
Europe	513.2	–	513.2	503.2	–	503.2	2%	2%
Asia	308.4	–	308.4	296.0	–	296.0	4%	4%
Total Operating Expenses	€ (1,268.5)	€ 181.6	€ (1,086.9)	€ (1,175.6)	€ 142.4	€ (1,033.2)	8%	5%
Share-based compensation expense and related social charges	(88.5)	88.5	–	(46.7)	46.7	–
Amortization of acquired intangible assets and of tangible assets revaluation	(88.3)	88.3	–	(93.3)	93.3	–
Lease incentives of acquired companies	(0.4)	0.4	–	(0.7)	0.7	–
Other operating income and expense, net	(4.4)	4.4	–	(1.8)	1.8	–
Operating Income	€ 304.5	€ 181.6	€ 486.1	€ 324.1	€ 142.4	€ 466.5	(6)%	4%
Operating Margin	19.4%		30.9%	21.6%		31.1%
Financial income (loss), net	30.3	0.6	30.9	30.2	1.0	31.2	1%	(1)%
Income tax expense	(75.5)	(21.6)	(97.1)	(68.3)	(31.6)	(99.9)	11%	(3)%
Non-controlling interest	1.2	(0.9)	0.2	(0.3)	(0.3)	(0.5)	N/A	(141)%
Net Income attributable to shareholders	€ 260.5	€ 159.6	€ 420.1	€ 285.7	€ 111.5	€ 397.2	(9)%	6%
Diluted Earnings Per Share ⁽³⁾	€ 0.20	€ 0.12	€ 0.32	€ 0.21	€ 0.08	€ 0.30	(9)%	6%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Three months ended March 31,								Change
In millions of Euros, except percentages	2025 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2025 Non-IFRS	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(260.3)	4.9	0.1	(255.2)	(243.8)	2.9	0.2	(240.6)	7%	6%
Research and development expenses	(348.6)	32.5	0.1	(316.0)	(311.4)	17.9	0.3	(293.2)	12%	8%
Marketing and sales expenses	(446.5)	24.5	0.1	(421.9)	(420.3)	13.7	0.1	(406.5)	6%	4%
General and administrative expenses	(120.4)	26.6	0.0	(93.8)	(105.1)	12.3	0.0	(92.7)	15%	1%
Total		€ 88.5	€ 0.4			€ 46.7	€ 0.7

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
⁽³⁾ Based on a weighted average 1,332.2 million diluted shares for Q1 2025 and 1,331.1 million diluted shares for Q1 2024, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 260.5 million for Q1 2025 (€ 285.7 million for Q1 2024). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

1 IFRS figures for 1Q25: total revenue at €1.57 billion, operating margin of 19.4% and diluted EPS at €0.20.

2 Contract Research Organizations

Attachment

Dassault Systèmes: Solid start to the year with strong subscription growth, EPS at the high end of guidance

The MIL Network –

April 24, 2025

MIL-OSI: STMicroelectronics Reports 2025 First Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

PR No: C3332C

STMicroelectronics Reports 2025 First Quarter Financial Results

Q1 net revenues $2.52 billion; gross margin 33.4%; operating income $3 million; net income $56 million
Business outlook at mid-point: Q2 net revenues of $2.71 billion and gross margin of 33.4%
Company-wide program to reshape manufacturing footprint and resize global cost base on track; annual cost savings target in the high triple-digit million-dollar range exiting 2027 confirmed.

Geneva, April 24, 2025 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported first quarter net revenues of $2.52 billion, gross margin of 33.4%, operating income of $3 million and net income of $56 million or $0.06 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

“Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix.”
“On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9% and net income decreased 89.1% to $56 million.”
“In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity.”
“Our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year-over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
“We plan to maintain our Net Capex (non-U.S. GAAP¹) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint.”
“While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.”

Quarterly Financial Summary

U.S. GAAP (US$ m, except per share data)	Q1 2025	Q4 2024	Q1 2024	Q/Q	Y/Y
Net Revenues	$2,517	$3,321	$3,465	-24.2%	-27.3%
Gross Profit	$841	$1,253	$1,444	-32.9%	-41.7%
Gross Margin	33.4%	37.7%	41.7%	-430 bps	-830 bps
Operating Income	$3	$369	$551	-99.2%	-99.5%
Operating Margin	0.1%	11.1%	15.9%	-1,100 bps	-1,580 bps
Net Income	$56	$341	$513	-83.6%	-89.1%
Diluted Earnings Per Share	$0.06	$0.37	$0.54	-83.8%	-88.9%

First Quarter 2025 Summary Review
ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.

Net Revenues by Reportable Segment² (US$ m)	Q1 2025	Q4 2024	Q1 2024	Q/Q	Y/Y
Analog products, MEMS and Sensors (AM&S) segment	1,069	1,348	1,406	-20.7%	-23.9%
Power and discrete products (P&D) segment	397	602	631	-34.1%	-37.1%
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group	1,466	1,950	2,037	-24.8%	-28.0%
Embedded Processing (EMP) segment	742	1,002	1,047	-26.0%	-29.1%
RF & Optical Communications (RF&OC) segment	306	366	378	-16.5%	-19.2%
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group	1,048	1,368	1,425	-23.4%	-26.5%
Others	3	3	3	–	–
Total Net Revenues	$2,517	$3,321	$3,465	-24.2%	-27.3%

Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST’s guidance.

Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST’s guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.

Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST’s operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs³, operating income stood at $11 million in the first quarter.

By reportable segment, compared with the year-ago quarter:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:

Analog products, MEMS and Sensors (AM&S) segment:

Revenue decreased 23.9% mainly due to a decrease in Analog.
Operating profit decreased by 66.7% to $82 million. Operating margin was 7.7% compared to 17.5%.

Power and Discrete products (P&D) segment:

Revenue decreased 37.1%.
Operating profit decreased from a positive $77 million to a negative $28 million. Operating margin was -6.9% compared to 12.1%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Embedded Processing (EMP) segment:

Revenue decreased 29.1% mainly due to a decrease in GPAM.
Operating profit decreased by 71.5% to $66 million. Operating margin was 8.9% compared to 22.2%.

RF & Optical Communications (RF&OC) segment:

Revenue decreased 19.2%.
Operating profit decreased by 59.0% to $43 million. Operating margin was 13.9% compared to 27.4%.

Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share² stood at $63 million and $0.07 respectively in the first quarter of 2025.

Cash Flow and Balance Sheet Highlights

				Trailing 12 Months
(US$ m)	Q1 2025	Q4 2024	Q1 2024	Q1 2025	Q1 2024	TTM Change
Net cash from operating activities	574	681	859	2,680	5,531	– 51.5%
Free cash flow (non-U.S. GAAP¹)	30	128	(134)	453	1,434	– 68.4%

Net cash from operating activities was $574 million in the first quarter compared to $859 million in the year-ago quarter.

Net Capex (non-U.S. GAAP), was $530 million in the first quarter compared to $967 million in the year-ago quarter.

Free cash flow (non-U.S. GAAP) was positive at $30 million in the first quarter, compared to negative $134 million in the year-ago quarter.

Inventory at the end of the first quarter was $3.01 billion, compared to $2.79 billion in the previous quarter and $2.69 billion in the year-ago quarter. Days sales of inventory at quarter-end was 167 days, compared to 122 days for both the previous quarter and the year-ago quarter.

In the first quarter, ST paid cash dividends to its stockholders totaling $72 million and executed a $92 million share buy-back, as part of its current share repurchase program.

ST’s net financial position (non-U.S. GAAP⁴) remained strong at $3.08 billion as of March 29, 2025, compared to $3.23 billion as of December 31, 2024 and reflected total liquidity of $5.96 billion and total financial debt of $2.88 billion. Adjusted net financial position (non-U.S. GAAP¹), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.71 billion as of March 29, 2025.

Corporate developments

On April 10, 2025, ST detailed its company-wide program to reshape manufacturing footprint and resize global cost base and confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027. Specifically, ST disclosed further elements of its program to reshape its global manufacturing footprint.

Business Outlook

ST’s guidance, at the mid-point, for the 2025 second quarter is:

Net revenues are expected to be $2.71 billion, an increase of 7.7% sequentially, plus or minus 350 basis points.
Gross margin of 33.4%, plus or minus 200 basis points.
This outlook is based on an assumed effective currency exchange rate of approximately $1.08 = €1.00 for the 2025 second quarter and includes the impact of existing hedging contracts.
The second quarter will close on June 28, 2025.

This business outlook does not include any impact for potential further changes to global trade tariffs compared to the current situation.

Conference Call and Webcast Information

ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST’s website, https://investors.st.com, and will be available for replay until May 9, 2025.

Use of Supplemental Non-U.S. GAAP Financial Information

This press release contains supplemental non-U.S. GAAP financial information.

Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST’s consolidated financial statements prepared in accordance with U.S. GAAP.

See the Appendix of this press release for a reconciliation of ST’s non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.

Forward-looking Information

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:

changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products;
uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all;
the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027;
epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers;
the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and
individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our Securities and Exchange Commission (“SEC”) filings, could have a material adverse effect on our business and/or financial condition.

About STMicroelectronics

At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.

For further information, please contact:

INVESTOR RELATIONS:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com

MEDIA RELATIONS:
Alexis Breton
Group VP Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com

STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))

	Three months ended
	March 29,	March 30,
	2025	2024
	(Unaudited)	(Unaudited)

Net sales	2,513	3,444
Other revenues	4	21
NET REVENUES	2,517	3,465
Cost of sales	(1,676)	(2,021)
GROSS PROFIT	841	1,444
Selling, general and administrative expenses	(390)	(425)
Research and development expenses	(489)	(528)
Other income and expenses, net	49	60
Impairment, restructuring charges and other related phase-out costs	(8)	–
Total operating expenses	(838)	(893)
OPERATING INCOME	3	551
Interest income, net	48	59
Other components of pension benefit costs	(4)	(4)
Gain (loss) on financial instruments, net	25	–
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST	72	606
Income tax expense	(13)	(92)
NET INCOME	59	514
Net income attributable to noncontrolling interest	(3)	(1)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	56	513

EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.06	0.57
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.06	0.54

NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS	933.6	942.3


STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at	March 29,	December 31,	March 30,
In millions of U.S. dollars	2025	2024	2024
	(Unaudited)	(Audited)	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	1,781	2,282	3,133
Short-term deposits	1,650	1,450	1,226
Marketable securities	2,528	2,452	1,880
Trade accounts receivable, net	1,385	1,749	1,787
Inventories	3,014	2,794	2,685
Other current assets	1,050	1,007	1,183
Total current assets	11,408	11,734	11,894
Goodwill	299	290	298
Other intangible assets, net	338	346	366
Property, plant and equipment, net	11,178	10,877	10,866
Non-current deferred tax assets	490	464	585
Long-term investments	96	71	22
Other non-current assets	1,114	961	942
	13,515	13,009	13,079
Total assets	24,923	24,743	24,973

LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	988	990	238
Trade accounts payable	1,373	1,323	1,642
Other payables and accrued liabilities	1,290	1,306	1,547
Dividends payable to stockholders	16	88	6
Accrued income tax	72	66	133
Total current liabilities	3,739	3,773	3,566
Long-term debt	1,889	1,963	2,875
Post-employment benefit obligations	392	377	372
Long-term deferred tax liabilities	48	47	49
Other long-term liabilities	896	904	912
	3,225	3,291	4,208
Total liabilities	6,964	7,064	7,774
Commitment and contingencies
Equity
Parent company stockholders’ equity
Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 894,410,472 shares outstanding as of March 29, 2025)	1,157	1,157	1,157
Additional Paid-in Capital	3,142	3,088	2,931
Retained earnings	13,514	13,459	12,982
Accumulated other comprehensive income	495	236	468
Treasury stock	(582)	(491)	(463)
Total parent company stockholders’ equity	17,726	17,449	17,075
Noncontrolling interest	233	230	124
Total equity	17,959	17,679	17,199
Total liabilities and equity	24,923	24,743	24,973


STMicroelectronics N.V.

SELECTED CASH FLOW DATA

Cash Flow Data (in US$ millions)	Q1 2025	Q4 2024	Q1 2024

Net Cash from operating activities	574	681	859
Net Cash used in investing activities	(796)	(1,259)	(1,254)
Net Cash from (used in) financing activities	(282)	(209)	308
Net Cash decrease	(501)	(795)	(89)

Selected Cash Flow Data (in US$ millions)	Q1 2025	Q4 2024	Q1 2024

Depreciation & amortization	428	451	430
Net payment for Capital expenditures	(538)	(501)	(994)
Dividends paid to stockholders	(72)	(88)	(48)
Change in inventories, net	(172)	(2)	(12)

Appendix
ST
Changes to reportable segments

Following ST’s reorganization announced in January 2024 into two Product Groups and four reportable segments, we have made further progress in analyzing our global product portfolio, resulting in the following adjustments to our segments, effective starting January 1, 2025, without modifying subtotals at Product Group level:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
- The transfer of VIPower products from Power and Discrete products (“P&D”) reportable segment to Analog products, MEMS and Sensors (“AM&S”) reportable segment.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
- the newly created ‘Embedded Processing’ (“EMP”) reportable segment includes the former ‘MCU’ segment (excluding the RF ASICs mentioned below) as well as Custom Processing products (Automotive ADAS products).
- the newly created ‘RF & Optical Communications’ (“RF&OC”) reportable segment includes the former ‘D&RF’ segment (excluding Automotive ADAS products) as well as some RF ASICs which were previously part of the former ‘MCU’ segment.

We believe these adjustments are critical for implementing synergies and optimizing resources, which are necessary to fully deliver the benefits expected from our new organization.

Our four reportable segments – within each Product Group – are now as follows:

In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
- Analog products, MEMS and Sensors (“AM&S”) reportable segment, comprised of ST analog products (now including VIPower products), MEMS sensors and actuators, and optical sensing solutions.
- Power and Discrete products (“P&D”) reportable segment, comprised of discrete and power transistor products (now excluding VIPower products).

In this Press Release, “Analog” refers to analog products, “MEMS” to MEMS sensors and actuators and “Imaging” to optical sensing solutions.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
- Embedded Processing (“EMP”) reportable segment, comprised of general-purpose and automotive microcontrollers, connected security products and Custom Processing Products (Automotive ADAS)
- RF & Optical Communications (“RF&OC”) reportable segment, comprised of Space, Ranging & Connectivity products, Digital Audio & Signaling Solutions and Optical & RF COT.

In this Press release, “GPAM” refers to General purpose & automotive microcontrollers, “Connected Security” to connected security products, “Custom Processing” to automotive ADAS products.

Prior year comparative periods have been adjusted accordingly.

(Appendix – continued)
ST Supplemental Financial Information

	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Net Revenues By Market Channel (%)
Total OEM	71%	73%	76%	73%	70%
Distribution	29%	27%	24%	27%	30%

€/$ Effective Rate	1.06	1.09	1.08	1.08	1.09

Reportable Segment Data (US$ m)
Analog products, MEMS and Sensors (AM&S) segment
– Net Revenues	1,069	1,348	1,340	1,336	1,406
– Operating Income	82	220	216	193	246
Power and Discrete products (P&D) segment
– Net Revenues	397	602	652	576	631
– Operating Income	(28)	45	80	61	77
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group
– Net Revenues	1,466	1,950	1,992	1,912	2,037
– Operating Income	54	265	296	254	323
Embedded Processing (EMP) segment
– Net Revenues	742	1,002	898	906	1,047
– Operating Income	66	181	146	126	232
RF & Optical Communications (RF&OC) segment
– Net Revenues	306	366	357	410	378
– Operating Income	43	95	84	96	103
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group
– Net Revenues	1,048	1,368	1,255	1,316	1,425
– Operating Income	109	276	230	222	335
Others ^(a)
– Net Revenues	3	3	4	4	3
– Operating Income (Loss)	(160)	(172)	(145)	(101)	(107)
Total
– Net Revenues	2,517	3,321	3,251	3,232	3,465
– Operating Income	3	369	381	375	551

(a) Net revenues of Others include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment and restructuring charges, management reorganization costs, start-up and phase out costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes:

(US$ m)	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
*Unused capacity charges*	*123*	*118*	*104*	84	63

(Appendix – continued)
ST Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP – Non-U.S. GAAP Reconciliation

The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.

ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST’s U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST’s on-going operating results, (ii) the ability to better identify trends in ST’s business and perform related trend analysis, and (iii) to facilitate a comparison of ST’s results of operations against investor and analyst financial models and valuations, which may exclude these items.

Non-U.S. GAAP Net Earnings and Non-U.S. GAAP Earnings Per Share (non-U.S. GAAP measures)

Operating income before impairment and restructuring charges and one-time items is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs attributable to ST and other one-time items, net of the relevant tax impact.

Q1 2025 (US$ m, except per share data)	Gross Profit	Operating Income	Net Earnings	Corresponding Diluted EPS
U.S. GAAP	841	3	56	0.06
Impairment, restructuring charges and other related phase-out costs	–	8	8	0.01
Estimated income tax effect	–	–	(1)	–
Non-U.S. GAAP	841	11	63	0.07

(Appendix – continued)

Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)

Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet.

ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.

(US$ m)	Mar 29 2025	Dec 31 2024	Sep 28 2024	June 29 2024	Mar 30 2024
Cash and cash equivalents	1,781	2,282	3,077	3,092	3,133
Short term deposits	1,650	1,450	977	975	1,226
Marketable securities	2,528	2,452	2,242	2,218	1,880
Total liquidity	5,959	6,184	6,296	6,285	6,239
Short-term debt	(988)	(990)	(1,003)	(236)	(238)
Long-term debt ^(a)	(1,889)	(1,963)	(2,112)	(2,850)	(2,875)
Total financial debt	(2,877)	(2,953)	(3,115)	(3,086)	(3,113)
Net Financial Position (non-U.S. GAAP)	3,082	3,231	3,181	3,199	3,126
Advances received on capital grants	(377)	(385)	(366)	(402)	(351)
Adjusted Net Financial Position (non-U.S. GAAP)	2,705	2,846	2,815	2,797	2,775

^(a)Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $618 million equivalent, are currently undrawn.

(Appendix – continued)

Net Capex and Free Cash Flow (non-U.S. GAAP measures)

ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.

Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.

ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.

(US$ m)	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Payment for purchase of tangible assets, as reported	(587)	(584)	(669)	(690)	(1,145)
Proceeds from sale of tangible assets, as reported	2	–	2	1	2
Proceeds from capital grants and other contributions, as reported	47	83	66	143	149
Advances from capital grants allocated to property, plant and equipment	8	31	36	18	27
Net Capex (non-U.S. GAAP)	(530)	(470)	(565)	(528)	(967)

Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.

ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.

Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.

(US$ m)	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Net cash from operating activities	574	681	723	702	859
Net Capex	(530)	(470)	(565)	(528)	(967)
Payment for purchase of intangible assets, net of proceeds from sale	(14)	(32)	(20)	(15)	(26)
Payment for purchase of financial assets, net of proceeds from sale	–	(51)	(2)	–	–
Free Cash Flow (non-U.S. GAAP)	30	128	136	159	(134)

(Appendix – continued)
Financial Calendar

The financial calendar for 2025 is as follows:

March 16, 2025 – April 24,2025:

Quiet period

April 24,2025:

Q1 2025 Financial Results

June 16, 2025 – July 24,2025:

Quiet period

July 24,2025:

Q2 2025 Financial Results

September 16, 2025 – October 23,2025:

Quiet period

October 23,2025:

Q3 2025 Financial Results

These dates are preliminary and are subject to final confirmation.

¹Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
²See Appendix for the definition of reportable segments.
³Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
⁴Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.

Attachment

C3332C -Q125 Earnings PR – April 24 2025

The MIL Network –

April 24, 2025

Category: Taxation

Career Insight: Joe, Trainee Solicitor, HM Revenue & Customs

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Career Insight: Nadia, Trainee Solicitor, HM Revenue & Customs

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